E XCERPT LUXURY HOTELS US 2017 THE FULL REPORT IS AVAILABLE TO L2 MEMBERS ONLY. INQUIRE ABOUT MEMBERSHIP.USLUXURY HOTELS December 18, 2017 1 15+ 2 3 4500+ E XCERPT LUXURY HOTELS US 2017INTRODUCTIONRANKINGDISCOVERYPATH TO PURCHASECONTENTRETENTIONAdjoining Rooms Once replete with independent brands, the luxury hotel sector has consolidated drastically over the past two years. Since 2016, both Accor and Marriott International Inc. have doubled their brand portfolio via acquisitions, leaving few competitors outside of legacy giants Hyatt Hotels Corp. and Hilton Worldwide. Marriott increased its number of properties by nearly 40 percent for a price tag of $12.2 billion,1 while Accor boosted its footprint by about 4 percent for $2.7 billion.2 Analysts have interpreted these acquisitions as calculated efforts to increase stake in the luxury market and appeal to younger consumers.3 Accor and Marriott had social communities nearly twice as large as their primary acquisitions Fairmont and Starwood, and their brands sites generated four times as much traffic.4 For this reason, these acquisitions represent something more than a younger, richer audience. The most valuable thing about the purchase of Starwood and Fairmont is structural. As young, digitally forward brands, Fairmont and Starwood benefit from agile technology and advanced infrastructure that their acquirers do not have. For instance, Starwood's booking system is four decades younger than Marriott's.5 Accor's brand sites take 2.5 times longer to load than Fairmont's, even though the two sites have comparable functionality.6 Like most contemporary mergers and acquisitions, these purchases appear to have been a tech play--not an attempt to shore up brand equity. 1. Why Hotel Giant Marriott Is on an Expansion Binge as It Fends Off Airbnb, Shawn Tully, Fortune, June 14, 2017. 2. French hotel chain Accor buys Fairmont, Raffles and Swissotel for $2.9B US, CBC News, December 9, 2015. 3. AccorHotels to raise luxury profile with $2.9 billion acquisition, Dominique Vidalon & Leigh Thomas, Reuters, December 9, 2015. 4. L2 analysis of SimilarWeb data. 5. Marriott CEO: Technology Is the Biggest Risk in the Starwood Merger, Deanna Ting, Skift, May 9, 2017. 6. L2 analysis of Rigor data.Luxury Hotels US: Social Communities & Monthly Traffic of Major Acquisitions December 2017, n=4 EnterprisesSOCIAL COMMUNITY SIZES (FACEBOOK, YOUTUBE, INSTAGRAM)MONTHLY US WEB TRAFFIC35.1M25%4.2M 50%2.4M 10.7M 2.6M 1.2M2.1M 75%7.3MLRE SO RT SRE SO RT SSO RT SL AT IO NA NT ER N TT I IO ST AR W OO D RR HO TE LS &AT IOHOREHONT ER NR&RCOLSCO&TE LSACHO TEACHIIOHOW OO DFRRRMAFRHIHO TETT ILS&Source: L2 Digital IQ Index: Luxury Hotels US, December 2017.ST ARColin Gilbert | Vice President, Emerging Sectors Grant Torres | Research Lead, Emerging Sectors Michael Silverman | Senior Analyst Cody Stack | Senior Analyst Zachary Norris | Designer L2 research is based on data-driven analysis. Our findings, rankings, and recommendations are objective, unbiased, and independent of membership.MARESO RT SLSTENATELSDecember 18, 20182E XCERPT METHODOLOGYDISCOVERY 35% Branded Search: Organic Real Estate; Internal Links (PropertySpecific, Property Search, ReservationEnabled); Appearance of Google Hotel Finder; Paid Real Estate; Paid Ad Sophistication Category Search: Paid & Organic Performance Across LocationModified Unbranded Keywords in the Luxury and Upscale Hospitality Space OTA & Metasearch: Sponsored Listings & Ad Visibility; Number of Listings; Average Ratings & Reviews; Visibility on Kayak and TripAdvisor Google Hotel Finder Visibility: Organic & Paid Visibility Across Location-Modified Unbranded Keywords Paid Social Strategy: Promoted Share of Facebook Posts; Promoted Facebook Video Views; Facebook Interactions per Post; YouTube Pre-Roll AdsPATH TO PURCHASE 25% Technology: Average Response Time; Throughput (Page Size/Response Time), Cached Content Search & Navigation: Booking Box Functionality; Property Search Results (Map View, Filters / Sorts, Ratings / Review Visibility, etc.); Room Search Results (Room Images, Filters / Sorts; Clicks to Room Rate, etc.) Customer Service: Homepage Visibility; Contact Us Page; Live Chat; On-Site Map and Directions Functionality Checkout: Clicks to Book; Cancellation Policy Visibility; Digital Payments; Customer Service Availability; Amenities / Upgrades Mobile Site: Small Screen Optimization; Geolocation; Maps; Clicks to Book; One-Page Checkout; Customer Service (Click-to-Call/Email)CONTENT 25% On Site Content: Videos; User-Generated Content; Property Page Content (e.g. Amenities, Ratings / Reviews, etc.); Meetings & Event Booking; Local Attractions; Destination Guides Web Advertising: Overall Desktop & Mobile Impressions, Overall Video Impressions, Ad Quality (Safety, Clutter, etc.) Web Authority Facebook Content: Facebook Interactions per Post; Facebook Posts per Week, Facebook Community Size Growth Instagram Content: Instagram Interactions per Post; Instagram Posts per Week, Instagram Community Size Growth Youtube Content: Organic YouTube Video Views; Organic YouTube Search Visibility, Channel Optimization (Video Titles and Descriptions)RETENTION 15% On Site Account / Loyalty: Account Signup; Account Customization (Booking Address, Payment Details, Room Preferences, etc.); SMS Alerts; Loyalty Program Visibility Email: Email Segmentation; Estimated Open Rate; Estimated List Size; Email Campaign Frequency Mobile Apps: Support for iOS & Android, In-App Booking, In-Stay FunctionalityCLASSIFICATIONGENIUS140+GIFTED11039AVERAGE9009CHALLENGED709FEEBLE< 70Digital competence is a point of competitive differentiation for these brands. Creatively engineered messaging reaches consumers on a variety of devices and in many online environments.Brands are experimenting and innovating across site, mobile, and social platforms. Digital presence is consistent with brand image and larger marketing efforts.Digital presence is functional yet predictable. Efforts are often siloed across platforms.Limited or inconsistent adoption of mobile and social media platforms. Sites lack inspiration and utility.Investment does not match opportunity.December 18, 20183E XCERPT LUXURY HOTELS US 2017INTRODUCTIONRANKINGDISCOVERYPATH TO PURCHASECONTENTRETENTION1 RANK MARRIOTT INTERNATIONAL, INC.150 DIQ2 RANK FOUR SEASONS HOLDINGS, INC.143 DIQINDEX AVERAGE 13 2231132GENIUSGENIUSDISCOVERY 1 Brand Search 2 Google Hotel Finder 3 Metasearch/OTAsPATH TO PURCHASE 1 Search & Navigation 2 Booking Engine 3 Mobile OptimizationCONTENT 1 Web Advertising 2 Facebook & Instagram 3 YouTubeRETENTION 1 Loyalty Programs 2 Email Marketing 3 Mobile AppsDecember 18, 2018312E XCERPT LUXURY HOTELS US 2017INTRODUCTIONRANKINGDISCOVERYPATH TO PURCHASECONTENTRETENTIONRANK GIFTEDBRANDDIGITAL IQRANKBRANDDIGITAL IQRANKBRANDDIGITAL IQ3 Hilton Worldwide1389 Marriott International, Inc.12217 Loews Corporation1114 Accor S.A.13711 Hyatt Hotels Corporation12118 Mandarin Oriental Hotel Group1104 Marriott13711 Omni Hotels & Resorts121 AVERAGE18 Marriott1106 Marriott International, Inc.13313 Hyatt Hotels Corporation12020 Kempinski1097 InterContinental Hotels Group13114 Hyatt Hotels Corporation11820 The Hongkong & Shanghai Hotels, Limited1098 Marriott13015 Marriott11620 Accor S.A.1099 Accor S.A.12216 Shangri-La International Hotel Management Ltd11223 InterContinental Hotels Group108December 18, 20185E XCERPT LUXURY HOTELS US 2017INTRODUCTIONRANKINGDISCOVERYPATH TO PURCHASECONTENTRETENTIONRANK AVERAGEBRANDDIGITAL IQRANKBRANDDIGITAL IQRANKBRANDDIGITAL IQ24 Hilton Worldwide10731 Marriott International, Inc.9637 Relais & Ch鈚eaux8525 Hilton Worldwide10631 Wyndham Hotel Group9637 Rosewood Hotels Group8526 Carlson Rezidor Hotel Group105 CHALLENGED33 The Leading Hotels of the World, Ltd 9040 Marriott International, Inc.8127 Marriott International, Inc.10434 Accor S.A.8840 Small Luxury Hotels of the World8128 FRHI Hotels & Resorts10035 Hyatt Hotels Corporation8642 Hyatt Hotels Corporation7928 The Trump Collection10035 Marriott8642 Warwick International Hotels7930 Jumeirah International L.L.C.9937 Belmond Ltd.8544 Dorchester Group76December 18, 20186E XCERPT LUXURY HOTELS US 2017INTRODUCTIONRANKINGDISCOVERYPATH TO PURCHASECONTENTRETENTIONRANK FEEBLEBRANDDIGITAL IQ45 Joie de Vivre Hospitality6745 Langham Hotels International6747 Canyon Ranch6548 Accor S.A.6449 Banyan Tree Holdings Limited52December 18, 20187。。。。。。