THE CARLTON SAVANNAH HOTEL INVESTMENT PROFILE

The Demand for Room Space
7.1 Located between the Caribbean Sea and the North Atlantic Ocean, northeast of Venezuela, the fast developing economy of Trinidad & Tobago is intrinsically linked to the oil and gas reserves which underpin the accumulated wealth and prosperity of the local market. The decades of oil and gas exploration have supported growth in the financial service sector and other industries, serving an ever more sophisticated corporate and private market place.

7.2 Long-term growth looks promising, as Trinidad & Tobago further develops its hydrocarbon, petrochemical and metals sectors with significant increases in exports, and continues its diversification efforts in services, manufacturing and agriculture. Clear macroeconomic policy and a stable government support the tight monetary policy which maintains a close relationship between the Trinidad & Tobago Dollar and the US Dollar, maintaining an exchange rate close to TT$6.3 to US$1.

7.3 The hotel market in Port of Spain is predominantly a business traveller’s market and one in which demand has exceeded supply for many years, meaning the number and stock of hotel rooms have not kept pace with the demand.[1] This is reflected in the strong room rates. For example, hotels, generally considered to be two-star products, are regularly able to charge US$150-250 per night for rooms. In 2008, there will be two additional new hotels in Port of Spain: The Carlton Savannah and the Hyatt.

7.4 The Carlton Savannah will distinguish itself in the hotel market by providing very high levels of customer service, akin to that expected by the international corporate traveller. The Carlton Savannah is dedicated to the business traveller and has been designed and planned to meet the requirements of discerning international executives. It will be both a place to stay, and a virtual office networked to the world 24/7. Based on the operating model and even before opening, the Carlton Savannah has been welcomed into the marketing association which is the Luxury Hotels brand of Preferred Hotels, which include hotels such as the Lanesborough in London, Sandy Lane in Barbados, the Dream hotel in New York and many more.

7.5 “Preferred Hotels & Resorts Worldwide is a service organization designed to provide marketing, sales and reservation services to hotels. Headquartered in Chicago, The Preferred Hotel Group is a privately held shareholder-owned company led by industry veteran John Ueberroth. With over 100 employees in 12 countries and 18 sales offices worldwide, Preferred Hotel Group is the industry leader in providing state-of-the-art technology, innovative business solutions, and strategic sales support and is the contracted provider of marketing, sales and reservation services for the Carlton Savannah Hotel. Other global reservations systems that the Carlton Savannah Hotel accesses through Preferred Hotels include Sabre, Amadeus, Worldspan and Galileo.

7.6 More specifically the Preferred Hotels & Resorts is a global brand of independently owned luxury hotels and resorts and each provides the highest standards of quality and extraordinary service. Founded in 1968 as a referral service for the top guests of six independent hoteliers, the association has grown into its current status as a for-profit stock corporation representing more than 120 hotels worldwide. To qualify as a Preferred hotel or resort, each property must pass Preferred's award-winning Standards of Excellence®. This exhaustive quality assurance program, which includes an annual, unannounced inspection, ensures that only the best hotels are Preferred hotels.

The Preferred Standards of Excellence®
7.7 Each Preferred hotel and resort conforms to Preferred's Standards of Excellence® program - marked by an unmatched 1,600 line item annual inspection process.

7.8 These unannounced inspections are performed every year by a licensed and independent quality assurance organization. Every detail that a guest would encounter during a typical stay is meticulously checked during the inspection: the cleanliness of the guest rooms from corner to corner, the dedication of the concierge to the special requests of the guests, and the commitment and care of the entire staff in anticipating the needs of the guests.

7.9 For a property to remain within Preferred, it must achieve an exemplary rating in all areas. As a result of this unique quality assurance program the guest will consistently receive the most attentive personal service and the most comfortable accommodations at all Preferred hotels and resorts. Cornell University "Best Practices" Award

7.10 Cornell University, the American Express Travel Related Services and the American Hotel Foundation honoured Preferred Hotels & Resorts with the Best Practices Champion Award for its Standards of Excellence quality assurance program. Receipt of the best practices award confirms Preferred's unparalleled commitment to the complete and total fulfillment of Preferred guests' individual tastes, requirements and expectations.

7.11 To private hotel owners and managers, the Preferred Hotel Group’s key strength lies in allowing their hotels to maintain their individuality and distinctive methodology, while still benefiting from the economies of scale that an affiliation with a larger group of like-minded properties can offer”[2]

7.12 The operating model of the Carlton Savannah Hotel caters fully for the international executive who needs a different sort of hotel from leisure guests. The Carlton Savannah experience has been developed to provide the sort of business support resource the business travellers would expect from a global corporate headquarters. The hotel will have an entire team dedicated to meeting business requirements. Whether the business travellers require a secretary to take notes at a meeting; need to 'hot-desk' for a couple of hours; want documents typed, bound and printed; have a PowerPoint presentation created; or have forgotten a power cable for a laptop and need it recharged – and much more – their business team will be there to give the support the business travellers want, including that last minute press of suit for an important meeting.

7.13 Such service is prerequisite for the business traveller; the Carlton Savannah Hotel will be the first hotel to provide it, in Port of Spain.

7.14 To add to that, the Hotel has an enviable location, overlooking Port of Spain's famous Savannah, close to the Prime Minister's residence close to the central business district and ideal for avoiding the early morning traffic. Thus, this backdrop provides the ideal location for investment in an up-market business hotel, aimed primarily at the international business travellers.

7.15 The Trinidad & Tobago hotel market has a high level of repeat business customers, making it a very strong market in which to provide and capitalise on personalised service. Guest records that allow the Hotel Operating Company to anticipate the needs of the guests provide valuable information that can create a strong bond between the guest and the Carlton Savannah Hotel.

[1] http://www.tdc.co.tt/tourism_report.html

[2] Public information from website www.preferredhotels.com/