A step forward by Barceló Hotels & Resorts

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BarcelóA Step Forward. A Step Ahead.

Portada Inglés.indd 1 09/10/12 12:34

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A PRESTIGIOUS BRAND.With over 150 hotels on three continents, Barceló Hotels & Resorts is now the 24th hotel chain in the world in terms of number of rooms. We are the leading Spanish hotel chain in the United States and the Dominican Republic, the second in Mexico for number of rooms and the top recognised tourist brand in the Canadian market. Working with us means enjoying the advantages of a brand with over 80 years of experience in the worldwide tourism sector, having demonstrated dependability and the ability to adapt to different environments, and its guarantee of commitment and solvency.

BARCELÓ GROUP GUARANTEES RELIABILITY AND STABILITY.Geographic diversification and a balanced portfolio, the complementary nature of the hotel and travel business, an effective risk control policy and our commitment to a job well-done have been, throughout the company’s entire history, a guarantee of reliability throughout the ups and downs of the global economy. The Group maintains a healthy balance sheet together with solid financial capabilities and excellent relationships with banking partners.

COMMITMENT TO PRODUCT QUALITY AND HIGH END MARKET SEGMENT.Over 95% of our portfolio is made up of 4 and 5 star hotels excellently located in well-established destinations or destinations with important development prospects. In the last decade our efforts to improve our portfolio have allowed Barceló to establish its position as a prestigious brand at the higher end of the market. During this time we have incorporated various luxury assets into the portfolio with a firm commitment in this segment having purchased several of these properties outright.

WE UNDERSTAND YOUR NEEDS.Our experience as an integrated Tourism Group operating on all levels of the market in the hotel and travel sector allows us to understand perfectly our partners’ point of view, and also therefore their business objectives. The Group is proprietor, operator and manager; working in the travel business (wholesale and retail) and has developed hotel projects from conception onwards. Our management aims to maximise the yield from each and every one of our businesses, through profound knowledge. For that reason we can fully understand our partners’ requirements.

A SOLID COMMERCIAL DISTRIBUTION SYSTEM WITH A POWERFUL CHANNEL OF ITS OWN AND IN A STRONG POSITION TOWARD OTHER DISTRIBUTION CHANNELS.Working with us means having access to a strong commercial distribution system. Barceló maintains excellent relationships throughout the entire distribution chain, both on-line and off-line. Alongside, we are developing our own channels; whose contributions to Group sales are growing at an annual rate of two digits. This combination of aspects allows us to maintain our predominant position as a Tourism Group.

HIGHLY EFFICIENT OPERATIONS AIMED AT PROFITABILITY.The structure of the Barceló Group has been designed to make the most of the advantages of flexibility and decentralization without losing the benefits of size. The Group combines a light and flexible central structure with a decentralized management model. At Corporate level we have some strategic business areas where centralization allows us to obtain economies of scale and/or bargaining power with suppliers. However, each business unit is responsible for its own profitability and therefore granted a very high level of decision-making ability at both commercial and management level.

RIGOROUS POLICY OF QUALITY AND CUSTOMER SERVICE.The aim of the entire organisation is guest satisfaction. In order to maximise that satisfaction, Barceló has developed a rigorous quality control policy coordinated using a wide variety of measures, (Barceló Quality Manuals, guest and tour operator satisfaction surveys, internal and external audits, hygiene-sanitary inspections, mystery guest, etc.)

HUMAN RESOURCES, THE VALUE OF PEOPLE IN A COMPANYWITH OVER 26,000 EMPLOYEES ALL OVER THE WORLD. We are committed to personal and professional growth within the Group using professional training and development programmes to encourage those qualities that make us an excellent team. Our managers and middle-managers are characteristically highly qualified and efficient decision-makers.

THERE ARE 8 KEY FACTORS THAT SUMMARIZE OUR PHILOSOPHY


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Now that we have the opportunity to work together we would like you to get to know our philosophy and the values that make us unique.

Over 80 years ago our grandfather, Simón Barceló, started out on his business adventure in the world of tourism. Things have changed a lot since then: society, the world we live in, the way we work and live and especially the way we travel.

However, our essence and our values have remained unchanged, guiding three generations of our family: The entrepreneurial spirit, a job well-done, initiative and our guest-based focus are the foundations upon which our company is built. These values and our ability to keep them alive, valid and up-to-date enhance and enrich us as a company. Over all these years our group has shown itself to be solid and at the same time versatile enough to accept a challenge, to adapt to and to anticipate change. We have understood how to make each generational change a success and turn it into an additional asset for our company.

Simón Barceló TousSimón Pedro Barceló Vadell

Co-Chairmen

WELCOME TO THE BARCELÓ GROUP

Folleto_Barcelo_2012consolapainglés.indd 2 16/10/12 11:55

This is not the first time, nor will it be the last, that we find ourselves operating in uncertain times.

Since its very beginning, our company has focused its activity on the world of tourism. Currently our two main business areas are hotels and travel. We have always characterized ourselves as being pioneers, identifying those opportunities presented to us by the market and knowing how to gain the greatest advantages from them; and for diversifying our activities with the objective of creating a solid, profitable and long-term business project. Because above all we are the owners of a business and we know what really matters.

At the Barceló Group we have always understood how to combine tradition and rigour with innovation and adaptability in business management. Due to this, we have been able to evolve from a small business transporting coach passengers, being amongst the first to introduce the travel agency, the package holiday concept, going international with the first Spanish hotel in Punta Cana, opening new destinations on three continents, and the evolution towards urban hotels, which currently represent 50% of our hotel portfolio.

Our values have been essential in building the success of Barceló in the past and they will also be invaluable in the future when facing change, to respond swiftly to new ways of travel, new kinds of tourists and new destinations: to take advantage of the latest technologies to improve our product; to act decisively in a global market with the greatest allies, to open more doors both for ourselves and our partners; to imagine and create new businesses. And to continue our business growth with a commitment to our society, working toward sustainable development, environmental conservation, respect for local culture in the places where we establish ourselves, offering opportunities for development in those communities and to the professionals who form part of our project wherever we go.

Our long journey doesn’t merely go on, it has only just begun. And we would love to have you with us as our travelling companion.

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Welcome to the Barceló group.

A Step Forward. A Step Ahead. The Barceló Difference.


Barceló Bávaro Beach Resort (Dominican Republic)



A STEP FORWARD.A STEP AHEAD.THE BARCELÓ DIFFERENCE.We at the Barceló Group have the pleasure of presenting 4 simple steps to help you understand why our company is a step ahead.More importantly we will help you decide to take that step forward, joining our company if you so desire.Because in order to make a decision you have to feel that you know us. We invite you to get to know us a bit better and welcome you to the Barceló Group.

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Get to know our brand

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Barceló Brno Palace (Czech Republic)

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Get to know our brand.

GET TO KNOW OUR BRAND

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Evolution of number of Barceló Group rooms



1.1 EXPERIENCE AND STABILITY

1962. Majorca. After a 30 year trajectory in the travel sector this was the time and place for us to establish our first hotel complex. Since then we have developed an efficient hotel management system that has allowed us to become the third leading Spanish hotel company, a leader in profitability, with over 150 hotels worldwide.

Profitability and a sustainable long-term business focus have been consolidated by the Barceló Group as a guarantee of stability and solvency. In 2010 we occupied the 24th position in the worldwide ranking based on number of rooms*.

In the 1980s we were the first hotel chain to establish itself in the Caribbean, today we are the leading Spanish hotel chain in the United States, the leading hotel chain in the Dominican Republic for number of rooms as well as the top recognised tourist brand in the Canadian market and the second leading tourist brand in Mexico based on number of rooms.

* Source:Hotel Chain ranking in Hotels Magazine.

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1.2 OUR IDENTITY


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A brand’s identity is built not only upon its core values; it also relies on the perception that others have. For this reason, the enthusiasm, responsibility, honesty and efficiency we display in our work, always with a team spirit, amounts to nothing if each and every one of our guests do not perceive it constantly.

Exercising a position of leadership for as long as we have is only made possible by being flexible with regards to changes and being service-minded, constantly listening to what the market needs and wants.

We have always wanted to innovate, maintain our entrepreneurial spirit, to be bold and versatile, to seek profitability and stability, to feel close to our guests, committed to their satisfaction. These are the foundations of a family-owned company where tradition and rigour in business, along with a commitment to the environment, are now and will always be distinguishing features.


Barceló Oviedo Cervantes Barceló Formentor (Majorca)



1.3 DIVERSIFICATION UNDER A SINGLE BRAND

By staying a step ahead of market needs, the Barceló Group has always known how to provide an immediate response to any business opportunity. The result is a solid hotel business structure covering all segments under a single brand: Barceló Hotels & Resorts.

This strategy emphasises Barceló communications with the objective of creating publicity and positioning the company as a prestigious international hotel chain with a significant hotel portfolio in the 4 and 5 star category, both urban and holiday hotels.


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98%of the Barceló portfolio are 4 and 5 star hotels excellently located in the most sought after destinations.


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LARGE RESORTSLarge Resorts strategically located in exceptional natural environments such as the Mayan Riviera, Varadero, Punta Cana and Costa Rica.

We collaborate with our partners to find the best development opportunities for their projects within the different sectors of our operations:


Conocer nuestra marca

Barceló Bávaro Beach Resort (Dominican Republic)


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HOLIDAY HOTELSHoliday Hotels in leading international tourist destinations such as the Balearic Islands, Costa del Sol, Canary Islands and Costa de la Luz.

Barceló Jandía Club Premium (Fuerteventura)


Barceló Isla Canela (Huelva)

Barceló Illetas Albatros (Majorca)


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URBAN STYLEThe latest generation of urban hotels with innovative design such as Barceló Malaga, Barceló Sants and Barceló Raval that are exceptional due to their locations in the heart of each city, distinct personalities, innovative facilities, designer cuisine and their meeting and convention halls.

Barceló Oviedo Cervantes


Conocer nuestra marca Barceló Málaga

Barceló Raval (Barcelona)


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SPA HOTELSHotels with SPA facilities and exclusive treatment programmes for mind and body.

Barceló Sancti Petri Spa Resort (Cádiz)

Barceló La Bobadilla (Granada)


Barceló Fuerteventura Thalasso Spa

Barceló Costa Vasca (San Sebastián)


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GOLF HOTELSGolf Hotels, with courses designed by grand masters such as Jack Nicklaus, Jose María Olazabal and P.B. Dye, located in magical surroundings such as Punta Cana, Jerez or Marbella.


Barceló Montecastillo Golf (Cádiz)


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LUXURY HOTELSLuxury Hotels such as Barceló La Bobadilla in Granada, Barceló Formentor in Majorca and Barceló Asia Gardens in Alicante, have already become unmissable destinations among the most demanding of travellers thanks to their facilities, services and locations.

Barceló Formentor (Majorca)


Barceló Asia Gardens (Alicante)

Barceló La Bobadilla (Granada)


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ADULTS ONLY HOTELSAdults Only Hotels such as Barceló Illetas Albatros in Majorca, Barceló Hamilton in Minorca and Barceló Jandía Club Premium in Fuerteventura. Located alongside dreamy beaches, these hotels have spacious and relaxing rooms with exquisite decoration and exclusive service that fulfils their guests’ every need. They all offer the very best health and beauty treatments in their Spas, unbeatable cuisine and a wide variety of activities: water-sports, tennis, golf, horse-riding, cultural visits, leisure and other entertainment options exclusively for adults.




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MEET BARCELÓHotels for Conventions, Congresses and Incentives fully equipped with technical support and human resources offering maximum quality and experience in places such as Atlanta, Punta Cana, the Mayan Riviera, Madrid, Seville and Majorca.All this with the Meet Guarantee, our guaranteed commitment to offer standards of the highest level.

Barceló Aran Blu (Rome)


Barceló Maya Beach Resort (Mexico)

Barceló Renacimiento (Seville)


1.4 OUR BRAND VALUES

LOCAL CULTUREAuthenticity can be experienced anywhere in the world. Authenticity is experienced in all Barceló hotels. Fusion, without interference, with the geographical and social surroundings has allowed us to create spaces that capture the feeling of the destination, providing our facilities and services with distinctive local character.

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WE ARE PRAGUE

Barceló Old Town (Praha)


WE ARE MEXICO

A CREATIVE SPIRIT Nothing makes us happier than surprising our guests. For that reason each and every one of our hotels have their own personality with details that make them unique and surprising. In the halls as well as rooms and common areas, guests will discover carefully considered interior design and decorative elements that are a far cry from the routine or the conventional.

WE ARE BARCELONA

Barceló Málaga

Barceló Maya Palace Deluxe (Mexico)



ECOLOGY AND SUSTAINABILITYWe are involved in caring for the environment where our hotels are located with garden design programmes adapted to the local climate, environmental protection protocols and development of several leading projects that allow us to use our own renewable energy supplies.

REST ANDCOMFORTWe want our guests to feel even better than they do at home. Therefore we have developed our B-Room, a standard of room that incorporates endless little details that contribute to our guests’ well-being.

Barceló Punta Umbría Beach Resort (Huelva) Barceló Sants (Barcelona)



HEALTH AND BEAUTYWe like to think that our guests go home feeling better than when they arrived. Therefore, we have some of the very best Spas, thermal baths, health resorts, health and beauty treatments available as well as the most modern sports facilities.

U-Spa is a new Spa philosophy which personalizes and adapts treatments according to each person’s requirements. Our treatments are classified in 5 large groups or motivations: beauty, relaxation, sports and therapy, Asian and leisure.

CUISINEOur international chefs favour seasonal dishes and local cuisine, without neglecting world flavours. In this way we have turned our cuisine into a distinguishing feature in many of our hotels.

FOTO COMIDA

Barceló Costa Vasca (San Sebastián) Barceló Bávaro Beach Resort (Dominican Republic)


Barceló Tucancún Beach (Mexico)



1.5 HOTEL PORTFOLIO


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BARCELÓ HOTELS IS PRESENT IN 3 CONTINENTS WITH OVER 150 HOTELS IN 16 COUNTRIES.


CHAIN STRUCTURE

Balanced Portfolio:

Geographic Distribution of the Portfolio:

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BARCELÓ OPERATES ON ALL LEVELS OF THE HOTEL BUSINESS VALUE CHAIN:

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IMAGEN

Barceló Tambor Beach (Costa Rica)



We at the Barceló Group understand that developing a global company implies a global responsibility. For this reason, in those developing countries where we are present, we actively aim to improve living conditions for its inhabitants.

1.6 COMMITMENT TO THE ENVIRONMENT


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Our own Code of Ethics and our undertaking upon subscribing to the Tourism Sector Code of Conduct against Sexual Exploitation of Children, the Universal Declaration on Human Rights, and the Environmental Protection (Kyoto Protocol on Climate Change) guide the conduct of everyone involved in the Barceló Group.

The Barceló Group collaborates with non-profit organizations such as Fundosa and Fundación Integra, working towards the integration into the company of people from socially disadvantaged groups.


SUSTAINABILITY AND THE ENVIRONMENTThe Barceló Group’s Code of Ethics considers that the development of touristic activities whilst maintaining environmental sustainability is one of its most important objectives, along with a commitment to study the viability of every project taking into account the conservation of the environment.

Barceló is deeply committed to encouraging and implementing alternative energy projects in our hotels, a commitment through which we hope to contribute to the developed at the Barceló Bávaro Beach Resort, a pioneer in the area and that enables us to save tons of CO

2 from being released

into the atmosphere every year. This project presupposes the continuation of others such as the biomass plants at Barceló La Bobadilla and Barceló Punta Umbria, the geothermal energy implemented at Barceló Cala Viñas and the installation of solar panels in many of our hotels.

BARCELÓ FOUNDATION The Barceló Foundation was created in 1989 with the main objective of carrying out projects that contribute to improving society as a whole, with special emphasis on areas such as health, education, economic development and housing. Cooperation activities are principally carried out in the developing countries of South America and Sub-Saharan Africa.


The work we carry out within the Barceló Group to honour our commitment to sustainability and respect for the environment is defined by 6 areas of action: waste management, energy savings, sustainable design and construction, training, information and recovery of the local ecosystem. The company has strengthened the environmental commitment of some hotels and they have undergone internal and external audits, which have allowed them to earn Certificates for Environmental Management such as ISO 14001 or Green Globe amongst others.



1.7 AN EXCELLENT GROUP

The success of a company can also be measured by the recognition and accolades achieved throughout their business trajectory. It’s not what you say about yourself, it’s what others say about you.

Throughout its 80 year history, the Barceló Group has been awarded numerous national and international distinctions, amongst which we would like to highlight the following:


1979: The Touristic Merit Medal (awarded to Sebastián Barceló Oliver)

1989: The Touristic Merit Medal (awarded to Gabriel Barceló Oliver)

1995: The Prince Felipe Award for Entrepreneurial Excellence

(awarded to the Barceló Group)

1999: The Codespa Award for Solidarity (awarded to the Barceló Foundation)

2003: The Junípero Serra Award (awarded to Gabriel Barceló Oliver)

2003: Ramón Llull Award (awarded to the Barceló Foundation)

2005: The Gold Shield from the Felipe Moreno School of Tourism at the University of Palma de Majorca (awarded to Simón Barceló Tous and Simón Pedro Barceló Vadell)

2006: Touristic Merit Plaque (awarded to the Barceló Group)

2006: Gold Medal from the Balearic Islands Autonomous Community (awarded to Gabriel and Sebastián Barceló Oliver)

2006: Best Management Award (awarded to Simón Barceló Tous and Simón Pedro Barceló Vadell)

2007: The Prince Felipe Award for Entrepreneurial Excellence – in the Category of Entrepreneurial Competitiveness (awarded to the Barceló Group)

2007: Imex Fortis Award for Entrepreneurial International Investment (awarded to the Barceló Group)

2007: Crystal Award for the Safest Hotel Chain Worldwide (awarded to the Barceló Group)

2011: Bronze Prize in Publicity Campaign Efficiency for “Super Summer Azul”

2011: Palma de Majorca Award granted by Capital Magazine (to the Barceló Oliver family)

2011: 125th Anniversary of the Majorcan Chamber of Commerce Award.


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STEPBarceló Santo Domingo (Santo Domingo)


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GET TO KNOW OUR COMMERCIAL AND MARKETING STRUCTURE


2.1 OUR COMMERCIAL OFFICE NETWORK IS PRESENT IN OVER 22 COUNTRIES


We offer commercial leadership at an international level thanks to our network of offices established in over 22 countries and distributed according to their specialized field.

BARCELÓ VIAJES TRAVEL AGENCIES BARCELÓ HOTELES RESERVATION OFFICESAGENCIES SPECIALIZING IN CONVENTIONS The Barceló Group has a commercial network specializing in congresses, conventions and incentives, MeetBarceló, with offices in Spain, UK, Germany, United States and Turkey. We can offer over 170,000 m2 of versatile space to Professional Event Managers along with the very best in conditions to ensure the success of any event.


Barceló Hamburg (Germany)


2.2 DISTRIBUTION CHANNELS


Get to know our commercial and marketing structure.

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52 2.2.1 STRONG, SOLID RELATIONSHIPS WITH TOUR OPERATORS

Thanks to relationships nurtured over the years, giving us a privileged position, we sign more than 5,000 contracts a year with over 500 international travel companies.

The main tour operators working with Barceló are:

Orizonia

V. El Corte Inglés

Globalia

Soltour

Pullmantur

SPAIN

Tui Travel

Thomas Cook

Alltours

Rewe Group

FTI

Schauisland Reisen

GERMANY

Kuoni

Karavel

TUI Travel

Voyages Fram

FRANCE

Alpitour

Eden Viaggi

Kuoni

Settemari

Presstour

ITALY

Transat Tours

Sunwing Travel Group

Air Canada Vac.

CANADA

Natalie Tours

TezTour

RUSSIA USA

MLT Vacations

The Mark Travel Corp

JetBlue

Apple Vacations


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OUR OWN TOUR OPERATORBarceló Hotels & Resorts is since 2012 a completely vertical group present on all levels of the sales chain thanks to its three wholesale groups: laCuartaIsla, Quelónea and Jolidey.

LaCuartaIsla is our tour operator for long distance travel. With a wide variety of exclusive destinations throughout America, Africa, Asia, and Oceania, laCuartaIsla is characterized by high product quality and maximum attention to detail.

Quelónea objective is to offer short and medium-distance travel with regular and charter flights, as well as long-distance travel principally to the Caribbean and neighbouring countries, always with the emphasis on quality service.

With Jolidey a general tour operator has been launched onto the market combining the quality and service that characterize Barceló with the requirements of the customer that seeks flexible travel at very competitive prices, but without sacrificing enjoyment. This is a fresh and dynamic brand designed for today’s traveller.


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Nobody can take better care of our guests than we can. That’s why we have our own agency network, “Barceló Viajes” with over 400 sales offices in 23 countries enabling us to serve over 2,000,000 travellers and generate a turnover in excess of 460 million Euros.

2.2.2 TRAVEL AND INCOMING AGENCIES

We enjoy a lead position in the corporate and business meeting sector through the Joint Venture American Express Barceló Viajes.

Barceló Viajes has come together with National Geographic in a joint venture to develop various projects under the flag of National Geographic Barceló Viajes.

It is worth noting that the Barceló brand in the travel agency sector in Latin America, for over 20 years now, is one of the most recognised tourist brands in both the hotel and travel market.

Vacaciones Barceló is the network of Incoming Tour Operators and wholesalers in the Barceló Group throughout the United States and 21 Latin American countries.


56 2.2.3 WE DO OUR UTMOST TO DEVELOP THE FULL POTENTIAL OF OUR ONLINE CHANNEL

For a long time we have been aware of the importance of internet distribution channels in our sector. Thanks to this foresight, we occupy a leading position in the various online distribution channels (Barcelo.com and third-party websites) reaching business figures that currently exceed 25% of the company’s total income. And this figure increases day by day.

Barcelo.com sales in Euro millions:



57BARCELO.COM IS THE LEADING INTERNET GATEWAY IN HOTEL DISTRIBUTION The figures make it clear*:

•Average income per reservation is 20% greater than through other channels.

•Over 48,000 daily and 1 million monthly visits.

•We have over 11 international home sites that allow us to optimise and personalize our hotels to source markets such as the United States, United Kingdom, Spain, Germany, France, Italy, Mexico and the Dominican Republic.

•Each hotel has its own special web page where its characteristics are outlined.

•Our quick, efficient and permanently updated booking engine together with the ability to search special deals and promotions make it the ideal tool to check availability in any of our hotels.

* 2.012




59E-MARKETING

Barceló Hotels & Resorts has a management team specializing in e-marketing and e-commerce that works intensively to optimize current campaigns. among them the generic campaigns designed to stimulate direct hotel sales and find new sales channels in order to achieve the desired returns on our investments.

Estimate of sales per channel*:

Thanks to various agreements with media related to the sector and staff specializing in e-marketing, Barceló Hotels & Resorts is one of the best positioned hotel chains in Google.es (**) and other search engines, achieving the greatest impact with minimum investment.

* 2.012 ** Conclusions of a study carried out by the Adesis Netlife Consulting Company for Preferente Magazine.


GDSWe have our own code (BN) in the main GDS which allows us to access a distribution channel with a circulation of over 600,000 agents worldwide everyday.

ONLINE TRAVEL AGENCIES (OTA)In addition to direct collaboration contracts with the most important online travel agencies, the Barceló Group has a leading position in over 150,000 tourist service websites.


CENTRAL RESERVATION SYSTEM / BED BANKSThe Barceló Group has a very significant presence in many wholesale agencies thanks to strategic agreements with the main European reservation systems.

AIRLINESBarceló distributes its room inventory on websites belonging to the main international airlines.


62 2.2.4 OVER HALF A MILLION PHONE CALLS ARE ANSWERED EVERY YEAR BY OUR CALL CENTRES

The main objective of these Call Centres is to increase hotel sales within our chain.The conversion rate of our Call Centres is over 18.5%.At the same time, the Call Centre also allows the client to voice any questions or queries that can not be resolved through the web page.

The Barceló brand has 8 Call Centres throughout the world to serve the main markets in Europe, North America, Latin America and North Africa.

Call Centre Turnover:(Euro millions)



64 2.3 POWERFUL SYSTEM OF COMMERCIAL TOOLS DIRECTED AT THE SALES CHANNELS AND OUR GUESTS.




652.3.1PROMOTION CHANNELS

A) TRADE FAIRS, PRESENTATIONS, WORKSHOPS We consider it vitally important to attend the main sector events to inform others about our product and keep up-to-date with the latest tendencies. For this reason, every year we conduct over 200 presentations for our guests and distributors, attend over 20 national and international trade fairs, and participate in around 200 workshops organized by tour operators and tourism offices throughout the world.

B) FAM TRIPSThe objective of Fam Trips is that our collaborators get to know the product they are selling personally. We organize over 200 Fam Trips annually in association with tour operators and travel agencies in the main sales markets in order to improve their knowledge of the Barceló brand.

C) PUBLICATIONSWe plan about 3,000 insertions a year in prime publications by main tour operators, travel agencies and airlines (brochures, magazines, flyers, websites, newsletters, videos, etc.). Amongst them Orizonia, Thomas Cook, Transat, TUI, Travelplan, Alpitour, Nouvelles Frontières and Apple Vacations should be highlighted.

D) BARCELÓ PARTNER CLUBWe also have over 1,100 agents in retail travel agencies registered with our loyalty programme, “Barceló Partner Club.” We maintain direct, preferential and permanent contact with them though email and newsletters. Our website www.barcelofidelizacion.com is especially designed to facilitate reservations quickly and simply for agents.


2.3.2COMPANIES

A) AIRLINE COMPANIESBarceló has agreements with the principal airline loyalty programmes. Thanks to segmenting the databases (our own and those of our partners) we have over 125 million data entries which allow us to contact over 45 million guests.

B) BARCELÓ BUSINESS CLUB “Barceló Business Club is our loyalty programme directed at companies. We currently have over 700 organisations registered whom we keep constantly informed through email, newsletters and all types of marketing material for internal (POS) and external sales.

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68 2.3.3OUR GUESTS

A) ADVERTISING AND PROMOTIONSInvestment in marketing by the Barceló Group is 4% of our income, with a budget distributed among the various source markets.

•Printed Advertising •External Advertising•Loyalty Programmes: Our

participation in 16 loyalty programmes enables us to access a database with over 20 million guests.

•New hotel launches in Shopping Centres

B) PRAt corporate level, Barceló Hotels & Resorts has its own communications department and has also signed contracts with public relations agencies in the main markets so that they may strengthen contact with the most representative media and therefore communicate news, special offers and information about the most important events organized by our hotels.

Amongst the most important events we organize, the Barceló Golf Circuit is one of the best known to amateur golfers, illustrated by the fact that we receive over 4,000 registrations per season and by the important media investment in promotion.



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C) PUBLICITYThis promotion format has great credibility because its communications are generated by independent professionals and free of charge and it has provided us with a return on our investment of 10 million Euros in the last few years.

In 2011 Barceló Hotels & Resorts organized the Barceló City Summer campaign. We invited 6 trend and lifestyle bloggers to travel to 6 Spanish capitals in a week, staying at Barceló hotels. This campaign experienced excellent widespread success through the Barceló web page www.barceloblogtrip.com and via the posts of the 6 bloggers.

D) BARCELÓ DATABASEBarceló Hotels & Resorts has over one million guests on its database and 9 weekly sending profiles. The annual results exceed 30 million in the main international markets such as Spain, the UK, Germany, France, Italy, Canada, Latin America, Mexico and the United States.



E) SOCIAL MEDIA

Facebook Using what is currently the most important social network, Barceló has its own corporate fan page “Barceló Hotels & Resorts” where we offer our fans exclusive advantages, competitions, the best special offers as well as profiles of our most representative hotels.

Twitter Barceló is the second hotel chain with the most followers on Twitter at global level and the hotel chain with the most followers in Spain and Europe (*).

Flickr Barceló Hotels & Resorts showcases its products on Flickr because a picture is worth more than a thousand words.

YouTube The Barceló Hotel channel has become a source of reference and consultation for users thinking of staying at one of our hotels. It doesn’t just show official videos of our hotels, it also includes videos made by our guests.

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* Source: Fan Page List, 2012


F) MY BARCELÓ

My Barceló is a personalized area for guests registered on the web where they can enjoy the following advantages:

> The best guaranteed online rate and special discounts.

> Private Guest area to manage reservations (modifications, cancellations, etc.)

> Periodic online communications; information, news and special offers.



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GET TO KNOW OUR OPERATIONS





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3.1 A FLEXIBLE AND EFFICIENT MANAGEMENT MODEL

The business structure is made up of various Regional Managers who take care of the organization, planning, supervision and management of hotels by geographic area in addition to creating synergy within their locations and other regions.

These Regional Managers support a central structure that is light and flexible in areas considered strategic or in those where centralization permits economies of scale.

Decentralization allows us to be highly efficient and able to adapt to different markets and environments.

Placing the focus of decisions close to the business guarantees that each hotel works well and is profitable. For this reason, our management model is based on a system of decision making with a distinct decentralized character; the Manager of each hotel is 100% responsible for their business.





773.2 OUR MANAGERS CAN RELY ON A SOLID SYSTEM OF MANAGEMENT SUPPORT TOOLS

In order to ensure optimal resource management in which the Manager of each Business Unit is ultimately responsible, it is essential to have the correct management support structure.

MapInformation Systems


In addition to the systems of management support tools we have internally developed tools that incorporate all the know-how of a company with over 50 years of experience in hotel management.

•Reportingsystemandanintegrated organization chart allowing continuous benchmarking amongst hotels with similar characteristics and direct follow-up of key management indicators for all hotels and regions.

•Budgeting model to ensure maximum accuracy throughout the budget process and a forecasting model that identifies budgetary deviations on a weekly or bimonthly basis in all hotels and application of corrective measures.

•The Barceló Quality System is the implementation tool of the corporate quality policy with the fundamental objective of increasing guest satisfaction and the number of repeating guests.

•Operational systems manuals summarize the protocol and practices to be used in operational areas: Rooms, Reception, F&B, Entertainment, etc…and the corporate standards define what a Barceló product should be in terms of facilities as well as services.

•OthertoolsincludetheNewOpeningSystem,ExpansionManuals,ManualsforHotelManagers and Operations Directors, Welcome Guides for New Employees, etc. .

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Barceló Ankara Altinel (Turkey)


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3.3 REGIONALIZATION OF OPERATIONAL SUPPORT FUNCTIONS

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To remain agile in response to market demands, key tasks at operational level are managed regionally. In order to maintain a common identity and take advantage of Group synergy without losing sight of the flexibility and adaptability that characterizes us, we have defined a common corporate policy which we subsequently implement at regional level.

3.3.1. COMMERCE AND MARKETINGWe understand that being close to our guests is the only way to adapt quickly to their needs. Therefore, tactical marketing management, Revenue Management and intermediate offline sales are, amongst others, fundamental areas.

3.3.2.EXPANSION Our local teams - with corporate support - are responsible for detecting new opportunities in the locations in which we are present as well as in nearby locations.


Barceló Cairo Pyramids (Egypt)

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833.3.3. F&B The essence of our cuisine is a taste for local flavour: We apply the standards of quality and service that distinguish the Barceló brand, but without losing even the slightest detail of local culture.

3.3.4. MAINTENANCE To guarantee proper definition and application of investment policy and suitable property maintenance we have regional maintenance offices serving hotel groups within the same geographic area.

3.3.5. ADMINISTRATIONOptimizing daily operational efficiency at our hotels is possible thanks to decentralized administration, coordinated at regional level.

3.3.6. PURCHASING We combine the advantages derived from the Group’s size - negotiating the main product groups - with the flexibility and capacity to adapt to local culture that local suppliers can provide.


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Barceló Fès Medina (Morocco)


853.3.7 HUMAN RESOURCES A grand company can only be in the hands of great professionals who are highly qualified and specialized in the industry. At Barceló, over 26,000 professionals of diverse nationalities and cultures contribute added value to the company and take on great responsibility driven by their business orientation and commitment to the Barceló project. With the objective of efficiently assessing our internal clients, the duty of human resource administration is decentralized in the hotels or Regional Directorates.

In a decentralized model such as this, support tools like training and professional development – defined at the corporate level – assume vital importance to guarantee consistency and appropriate development of company projects. We have an internal training campus with programmes led by the most prestigious business schools and training institutes where we can develop personalized career plans with internal communication systems such as the employee Intranet.

3.3.8. QUALITYNo one is as demanding as we are in terms of compliance with the Barceló Quality System and Policy, whose goal is to increase our guest’s satisfaction and the number of repeating guests. Quality manuals, internal audits to verify standards and procedures, guest and tour operator survey follow-up, internal management system of complaints and suggestions, mystery guest, hygiene-sanitary inspections and environmental management analysis. Nothing is left unsupervised. Over and over again.


Barceló Brno Palace (Czech Republic)


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3.4 CENTRALIZED STRATEGIC SUPPORT AREAS Areas that are strategic for the company and allow us to obtain competitive advantages.

3.4.1CONSTRUCTION AND DEVELOPMENTMaximising the ability to generate business and optimise operating efficiency on a hotel project is only possible when developed by specialists with ample experience.

Since the mid 1960s our Construction and Development Department has led a multitude of hotel projects all over the world resulting in a total of over 10,000 rooms as well as golf courses, casinos, shopping centres, industrial areas, etc.

Moreover, this department carries out Hotel Technical Consultancy for third-party projects, analysing in depth issues such as general facilities, interior design, finishing works, supplying and even arranging direct contracts with our main suppliers. In addition, following our policy of asset investment, the department also works with maintenance and improvement of all buildings that form part of the Barceló Group.




893.4.2SYSTEMSIT is a key piece of the Barceló Group machinery. A corporate systems team manages the maintenance and development of decision making support systems. This creative and innovative philosophy is part of our culture, and so every time we open a new hotel, our specialists (architects, designers, sales representatives, and operators) develop personalized concepts focused on achieving the most profitable position.

3.4.3COMMERCE, DISTRIBUTION AND GUEST RELATIONS POLICYTo take advantage of our strength as a chain and ensure consistency of our Commercial Strategy, the Group maintains centralized relationships with its main clients both on-line and off-line. At the same time, we define and implement our centralized distribution strategy through our own channels (Barcelo.com and Call Centres) and we have a specialized team to manage relationships with our guests.

3.4.4COMMUNICATIONSThanks to our business trajectory, the Group has an excellent reputation among guests, suppliers, the financial sector and with respect to the general public. This solid and profitable reputation that Barceló has built up is kept alive and present in the market by our team of specialized professionals.


Barceló Málaga


913.4.5FINANCE, LEGAL AND TAX AREAWe have a specialized team of professionals with extensive knowledge about the hotel business.

3.4.6STRATEGY AND DEVELOPMENTThe strategy of the Group comes directly from the Co-chairmen and the Group’s Top Management; and is formulated and implemented by all Managers.

3.4.7 INNOVATIONWe will never stop studying new opportunities, innovative management alternatives or creating new hotel concepts. That’s why we were the first to establish large resorts in the Caribbean and were able to create a new trend in the urban hotel with the B-Lounge concept.

In recent years we have developed concepts such as the Premium Club and the B-Room with which we intend to put the focus on our guests and adapt to market demands.


PREMIUM CLUBA unique concept in services and facilities offering our guests a superior and exclusive level, leading to an increase in income. It includes the following services, amongst others:

•ExclusiveCheck-inandCheck-out•EarlyCheck-InandLateCheck-Out•PrivateConciergeService•InternetinExecutiveFloors•PillowMenu•SuperiorAmenitiesKit•ClubPremiumLoungeAccess•InternationalDrinksMenuFreeofCharge

(Club Premium Lounge)•Personalized24hourService•LaundryService•PremiumBuffetwithContinental

Breakfast Service and Sandwiches in the Executive Lounge

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B ROOMMore than 50 years of experience together with a thorough and intensive research process on the needs of our guests has allowed us to propose this option

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Barceló Hamburg (Germany)


Barceló Renacimiento (Seville)


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3.5HOTEL OPENINGS

There is nothing more important than anticipating all eventualities. Planning hotel openings with the security that comes with experience, and always 24 months in advance: analysing supply and demand, planning product launches, applying for licences, contracting suppliers and organizing start-up in hotel departments are just some of the aspects our philosophy never lets us leave to chance.

Thanks to this philosophy, in the last few years, the Barceló Group has added over 25,000 rooms and 100 hotels (new constructions or currently operational) to their portfolio.


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STEPBarceló Illetas Albatros (Majorca)



Now that you know us, you can make a decision

NOW THAT YOU KNOW US, YOU CAN MAKE A DECISION

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A step forward by Barceló Hotels & Resorts

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