Destination Hotels & Resorts

We have a different perspective on hotels and their role in guests' lives. Because while each of our properties is indeed distinctive, there is still something similar among all of them. A philosophy. We believe, as a collective whole, that a hotel shouldn't be just a place to rest your head. It should be an overall experience. One born from a culmination of incredible locations, extraordinary facilities and exceptional services.

That philosophy is interpreted differently in each hotel, but it can be found in subtle but powerful ways in every property, and that fact, if leveraged properly, will allow us to dominate this affluent segment of the traveling public outright.

We will always seek out unique properties. Locations with a history or allure all their own. Then bring them into the fold, leave their entrepreneurial spirit intact and provide them with the support to create a group of travel destinations, not hotels. And we will exploit our distinctive locations and properties to provide the most memorable and unique travel experience.

Places where you go out of your way to stay. Not somewhere you just end up. Guests will stay with us to escape the ordinary and keep coming back because the experience was exceptional.

A Picture of Our Market

The consolidation of our industry has been driven more by investor strategy than consumer need. The net effect of this proliferation is that more generic hotels are emerging. While this is good news for the consumer seeking the "generic standard," these travelers are becoming more scarce.

Today's traveling consumer is more independent thinking and acting. And there's an increasing number that are making their lodging choice based on preference, not price. Literally choosing hotels and resorts that believe in and deliver personal customer care. Hotels and resorts that reflect the traveler's world view, and sense of his or her self.

The decision today, then, is based more on a very personal sense of values and less on an economic definition of value. And because of that, there hasn't been a better time for the independent hotel strategy.

Our Customers

Although the Destination Hotels & Resorts guest comes from a demographically diverse audience of leisure and business travelers, there are characteristics that transcend each and are driving forces behind the choice of independent over chain.

Of these diverse groups of travelers, there is a subset of each that is united by one characteristic. It's their simple desire to be who they are. Their choice is one that reflects their personality â�" a choice that is as unique as the individual.

Our Philosophy

We are true believers in customer intimacy. We want to have a loyal, two-way relationship with each of our guests.

When that loyalty is strongest, the customer begins to develop a sense of ownership for the brand itself. They identify with it personally, and see it as a reflection of themselves.

For each customer, that loyalty will begin with a particular hotel. But if we're smart in communicating our shared value system, we can extend that loyalty to other hotels within our network.

To do so, we have to start thinking less in terms of marketing, and more in terms of community building. Communities form when like-minded individuals rally around a cause or belief. Our cause is customer intimacy. Let's give our guests reason to rally.

Our Aspirations

As we move forward, clearly we should measure our success by looking at the parts of our business that can easily be measured, like increases in occupancy, and increases in REVPAR. Cross-selling between properties, and the like.

But we'll really know that our community-building efforts are successful when we can answer "yes" to the following types of questions.

• Can we expect that guests are so comfortable with our story that they plan another trip using our directory or Web site?
• Will each individual property see so much value in the Destination Hotels & Resorts co-brand that they will adopt it by choice?
• Can our customers become our biggest advocates for bringing new customers to us? Is word of mouth our strongest communication tool? Will this allow us to enjoy the luxury of spending less on our marketing efforts?

Guiding Principles

The following Guiding Principles form the foundation for how Destination Hotels & Resorts conducts all its business activities.

• Act with the highest ethical standards
• Achieve optimum investment performance
• Focus on continuous improvement of quality assets and services
• Empower a diverse group of talented and prepared people
• Nurture lasting relationships with investors, customers and team members
• Consistently work to balance our lives

These Guiding Principles are designed to be straightforward and provide a clear and strong direction for how all of us conduct our activities every day we are at work.