AUTOGRAPH COLLECTION BY MARRIOTTSAN ANTONIO, TX

STORY DEVELOPMENT & BRANDING

Plan Prepared for Hudson-Advisors by Company B to MarriottMay 2, 2014

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BRAND POSITIONING

To position its asset for success within the boutique hotel segment in San Antonio, Hudson Advisors has embarked upon a process to fully develop a brand for the Éilan Resort Hotel & Spa.

Company B is pleased to assist the 165-room property in fully developing a story and theme that incorporates the existing architecture and finishes of the property with a concept that draws the attention of prospective clientele and leaves a lasting impression on your guests.

This plan is focused on creating long-term, sustainable competitive advantages in the San Antonio market for the property. The Autograph Collection provides a gateway to guests through the largest loyalty program in the world, and a fully articulated concept for Éilan will ensure the hotel earns excellent reviews and repeat business.

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RESEARCH

Original Positioning & The PlanThe positioning of Éilan as inspired by Cinque Terre is missed by prospective clients and current guests. This vibrant, colorful seaside region is made up of ancient cities and rugged terrain. Therefore, a broader view of Italy is how Éilan will be branded moving forward.

The style of architecture, the warm climate and the soft, elegant color palette throughout the property reflect a distinctly Italian character. This will be accentuated by the colors, flavors and traditions of regions throughout Italy to establish a truly unique guest experience and brand positioning.

Site visit Our site visit to Éilan taught us a great deal. The finishes are impeccable and the property is expansive and impressive. The staff is friendly and attentive. Upper management is dedicated to being the best property in San Antonio and is committed to changing the current programming to reflect a fresh, fun and vibrant property teeming with activity.

Understanding the product, service levels and overall guest experience What guests are telling you and what we saw for ourselves: o Aesthetically, a lack of color, vibrancy and relevance. o Socially void of activity, camaraderie and personality.

You have shared that your typical guests are: o 35-55 years old o Sophisticated, independent, confident, experimental o Appreciate approachable luxury o Expect service and amenities

Positives for the property: • Untapped potential of existing space and amenities: o Underutilized lobby o Terrace with tremendous potential o Clean, bright rooms and common areas that are a

blank slate for decorative accents and elements that tell the story.

o Meeting spaces o Amenities such as the golf room unknown to the guests o A retail space with plenty of room for improvement • A strong connection with the surrounding residents

(which brings the element of “locals” to the property and that buzz creates energy for the guests)

• Ample space for programming • The prospect of more F&B and retail tenants

Negatives • Void of activity (“there’s nothing to do”) • Lack of vibe • Large open and vacant spaces • Still-developing complex (“the retail promised

just wasn’t there”) • No personality • Lack of story to connect and rally the staff and leave

guests with an experience

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RESEARCH

What you told us about your market: • Your business travelers appreciate your property and

amenities but look for more F&B options • Your leisure travelers tend to be older, couples, largely

with sophisticated taste levels • Group business is impressed by the facility and

service levels but are drawn to the location of the Riverwalk hotels

Éilan Hotel Resort & Spa75% positive reviews on TripAdvisor (Ranked #73 of 347 )Very sharp recent improvement in ratingsAll categories of ratings 4½ except “Value” at 4

La Cantera Hill Country Resort81% positive reviews on TripAdvisor (Ranked #24 of 347) • Rather cold but has amenities • Lazy river, 36-hole golf course • Multiple outlets • Charges a resort fee

The Westin Riverwalk88% positive reviews on TripAdvisor (Ranked #4) • Large, cold property

JW Marriott San Antonio Hill Country Resort & Spa87% positive rating on TripAdvisor (Ranked #8 • Compound/destination • Family focused • 27-hole golf course

Hyatt Regency Hill Country81% positive rating on TripAdvisor (Ranked #46) • Compound/destination • Family focused • 27-hole golf course

Hotel Contessa87% positive ratings on TripAdvisor (Ranked #3) • Top-rated boutique hotel

Hotel Valencia Riverwalk77% positive rating on TripAdvisor (Ranked #42 ) • Truly “boutique” property

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WHAT ÉILAN IS TODAY… Quiet Stuffy Tasteful Efficient Boring

WHAT ÉILAN WILL BE… Vibrant Fun Friendly Sophisticated Approachable

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BRAND DEVELOPMENT PLAN:

1. Fully implement the concept of the hotel, started with a tremendous investment in real estate and finishes.

2. Complete the story through details, guest touch points, activities, operational training and overall guest experience.

3. Express the story through ongoing marketing and your online presence.

4. Develop a foundation for your unique, sustainable brand positioning.

Our initial recommendation before any physical changes are made would be to officially adopt the name Éilan Hotel & Spa. By dropping “Resort” we reinforce your positioning as a more modern boutique hotel and retain the advantages of having a full-service spa.

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ITALIAT H E I N S P I R AT I O N

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ITALIA, OUR INSPIRATION

To develop a story, we rely on inspiration. Italy provides that.

The art, the architecture, the culture and the camaraderie of Italy serve as the backdrop and overall guest experience at Éilan Hotel & Spa. From the tile roofs and sunny climate to colorful people and warm hospitality, the parallels between San Antonio and cities throughout Italy are great.

The staff will be trained to learn both the basics and the special details of Italia:

• Italy is a boot-shaped peninsula situated on the Mediterranean Sea, bordering France, Switzerland, Austria, and Slovenia in the north.

• The country is surrounded by the Ligurian and the Tyrrhenian Seas to the west, the Mediterranean and Ionian Seas to the South, and the Adriatic Sea to the East.

• The experience at Éilan is inspired by culture and traditions of cities and regions throughout Italy:

• In Corniglia, local bars serve glasses of local wine with a complimentary bowl of local olives under yellow umbrellas near a little piazza with a communal olive press.

•Wine harvest is in early/mid September.• Prosecco is an Italian sparkling wine made in the same tradition as French champagne. A Bellini cocktail is a mixture of Prosecco sparkling wine and peach purée or nectar, originating in Venice.

• A regional specialty is called Farinata, like a focaccia but made with chickpea flour. Pesto is virtually ever-present on locals’ tables.

• The Palio is a horse race held twice each year in July and August in Siena, Italy. Ten bareback horses and riders dressed in the appropriate colors represent ten of the seventeen contrade, or city wards

• Lemons are everywhere. Limoncino is a dessert wine made from steeping lemon peels in pure alcohol and then adding sugar and water to make a fragrant and fresh liquor. With a color palette and rolling hills much like Éilan, Florence (“Firenze”) is a Renaissance city known for its architecture and art that had a major impact throughout the world.

• Seaside regions such as Cinque Terre are postcard-like worlds of colorful chaise lounges with matching umbrellas and turquoise water – color is everywhere.

• Pink, orange, green and white are also common colors throughout Italy – coming from orange and white butterflies, pink oleanders, the blue water and green cypress trees and palms that line sidewalks.

• Hotels often have lemon tree gardens and fire pits, and nightly gatherings are common.

Each major touchpoint, tradition and design elements that is part of life at Éilan will be part of staff training to ensure continuation of the story.

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ENTRANCE

The arrival must set the tone for the entire property. You’ve all said you want Éilan Hotel & Spa to be fun and engaging. The guest must immediately experience this. You have one chance to make that first impression.

Exterior Plans • Add large lemon trees to the entrance, along

with azaleas, ginger and birds of paradise–all indigenous to San Antonio and widely seen throughout the hillsides of Tuscany & the coastal region.

• Replace with mums in the fall and holly/lighted trees in the winter

• Select plants that grow in Italy and other brightly colored plants indigenous to San Antonio

• Add flags reminiscent of the flags of the Palio in Siena

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ARRIVAL

Uniforms are needed that reflect a polished yet modern staff vibe. Currently there is a range from professional suits to rather frumpy outfits. A crisp clean look is needed for the valets, the bell staff and the Front Desk.Replace the mirror at the Front Desk with a dramatic photo of Italy taken by a local San Antonio photographerYour lobby is a grand space and ideal for gathering, but there is no vibe, no warmth and no compelling reason to do anything in the lobby other than wait.

This space will be activated with the following:Music• Will be modern and lively as you are attracting the boutique hotel guest.

• Andrea Bocelli-style feels predictable and tired.

• Must be heard throughout all common areas including the exterior.

• A system that allows for different channels will be set based on day of week and time of day.

Candles• Larger oil tea candles in interesting glass votives need to be lit throughout the lobby,

3rd floor common area and Sustenio by 5pm daily.

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FRONT DESK EXPERIENCE

It all happens at the Front Desk - the guest’s hand off from the bellman to their check-in process. One of the few times you have the guest’s full attention. Here is how the Éilan staff will capitalize on the opportunity to tell you story and set the tone:

1. Staff greets the guests with simple Italian expressions “Benvenuto!”, “Buon giorno!”, or “Buona sera!” (having the benefit of a large photo of Italy behind them)

2. Check-in amenities are a wonderful way to say welcome. This will range from a check-in signature Italian soda or cocktail to unexpected tokens to “Surprise & Delight” - perhaps it’s house-made gelato pops on a particularly hot day, to figs, to traditional Italian candied almonds.

3. We will design a “Mediterranean Passport” with places at Éilan to stamp: the Piatti, George’s, Sustenio, Mercato and your new Mexican cantina. This encourages discovery and promotes your amenities. It might even include a quiz to win prizes:

• Éilan is inspired by what Italian region?

• What are the famous horse races in Sienna?

• Name a famous Italian liqueur (hint: try it at Sustenio)

• What grows in Italy? Olives, grapes, etc.

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ARTWORK

Artwork Recommendations

The artwork has the greatest potential to help share the story of Italy with your guests. We have a large body of work to choose from taken by a local artist. We will rely on two sources for the replacement artwork:

Local photographer Matt Nicholls’ library of photography that will be enlarged, some up to 10-feet wide, should be enough content for relevant work from Florence, Cinque Terre and the Sienna region. It’s both of good quality and very cost effective. We may need to balance it out with additional artwork but believe we can garner the majority of the images from his body of work.

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ARTWORK

We will also commission photography of local Italian-style glass blowers at Vetro Glass Blowing Studio & Gallery in Grapevine, Texas

• Placement: throughout the lobby, corridors and common areas

• Utilize existing frames and possibly matting.

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LOBBY DÉCOR

We will style and accessorize all areas of Lobby supporting the branding concept of Éilan. Accessories to include:

• Replace current artwork at the front desk with large photo of canvas of Italy

• Books on Italian culture, arts, fashion & entertainment

• Decorative accessories including obelisks, horse heads and other artifacts

• Potted orchids and mosses

• Throw pillows reminiscent of Italian tiles and mosaics

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TODAY’S LOBBY

“As the traditional office undergoes a global demise, hotels are starting to change their function to accommodate the new wave of mobile workers. ‘We’re really trying to transform the way people think about hotels,’ says Peggy Roe, Marriott International’s vice president of global operations services. ‘We want people to think of Marriott as a place not just to come and sleep.’”

Business Traveler News

“The Ace Hotel in Shoreditch opened last September, but already it feels like a new sort of London institution. In the lobby, there is a long and busy shared table. Elegant library-style reading lights run down the middle; to either side there are two dozen plain wooden chairs. Most of them are occupied throughout the day by people with laptops – young, or youngish, and carefully dressed in casual clothes. Some are guests, some are not; yet none of the hotel staff seems to draw a distinction or try to move anybody on.”

The Guardian, U.K.

“More consultants, bloggers and other creative non-office types are latching on to the comfy chairs, free Wi-Fi and other amenities to be found in chic new urban hotels. Guests are setting up their laptops, iPhones, ear buds and water bottles and doing business from high-visibility library tables and quiet corner armchairs.”

The Wall Street Journal

A hotel lobby doesn’t just become a gathering place – it requires an appreciation of traffic flow, an understanding of guest behavior, a thoughtful placement of furniture and programming that supports social interaction.

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ÉILAN LOBBY LOUNGE

The lobby at Éilan needs to develop intimacy through communal gathering spots as well as various nooks and crannies for more intimate tête-à-têtes. We will design a mix of seating arrangements, with additional lighting and area rugs, on the guest elevator side of the lobby where traffic naturally flows.

The addition of a long communal table with discrete electrical outlets and dataports will allow a transformation from daytime work space to evening cocktails and conversation among colleagues or newly made friends.

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Bar

High-top communal table with data/power outlets

High-top seating

Lounge seating

Curtains

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GUEST ROOMS

The guest rooms at Éilan are exceptionally well-appointed, with tasteful bedding, furnishings, light fixtures and casegoods. What’s missing is the color, pattern and texture of Neoclassic Italian decor.

Rather than simply add artwork to each room, which we would recommend be series of photos from Matt Nicolls, we will add an essential element of Italian design to create relevance to the story.

Wall-mounted coronas are common in Italy, add both drama and softness to the headboard. This added drapery will add a signature to your guest rooms, currently missing. In addition, we will add a pop of color for each room using pillows inspired by Italian tile and mosaics.

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SUSTENIO

As the flagship restaurant in Éilan Hotel & Spa, Sustenio combines the talents of celebrity chef Stephan Pyles and Executive Chef Mike Collins in a successful F&B venture. The restaurant relies on local and sustainable resources. We like the idea of extending this to a dramatic addition to the dining room.

Currently the centerpiece is a bold but somewhat confusing column that holds wine bottles. In an effort to increase the number of tables on the floor and bring in an element that is local, sustainable and in keeping with the Italian story, we will add a blown glass lighting element for the center of the room.

Texas-based Vetro glass artisans create functional and eye-catching fixtures that offer a continuation of the story.

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MERCATO

The retail space at Éilan is very large and allows for convenience items and staples as well as amenities, gifts and food and beverage items for residents and guests. With its large windows, ample coffee service and counter space and plenty of floor and wall space, Mercato has the potential to be a classic Italian market. To create this look, we will:

• Hang large-volume accessories from the ceiling including large braids of garlic cloves, dried red peppers, oversized baskets and even mesh fishing nets.

• Install vintage Italian posters for pasta, sauces, produce, coffee, wine and liquor.

• Add a pop of red color on the entry wall as an accent.

• More Italian deli items from Sustenio including cheeses and charcuterie.

• Offer traditional Italian coffees in addition to the grab-and-go Starbucks.

• Fill the shelves which appear too sparse.• Use white price tags not orange, which looks like a sale.• Add books, similar to those in the lobby, on San Antonio,

Italy and all manner of Italian cooking, culture and history.• Add a display of vintage coffee pots to the upper shelves. • Replace the indoor and outdoor tables and chairs with

Italian café-style seating.

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MEETING SPACES

Meeting and function spaces throughout the hotel are tasteful and well appointed but do lack appropriate artwork and scale in some of the FF&E.

We will enhance with:

• A custom millwork cabinet for the pre-function area with lower storage cabinets to allow for staging for food & beverage service as well as a break area and charging station for event attendees.

• A larger sideboard to replace the current open-leg console.

• Canvas-stretched fine art photography throughout in either sepia tone or muted colors.

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ÉILAN SPA

The Éilan Spa is a tranquil space where the soft muted colors of the property work to create a peaceful environment. We will add art elements throughout the space that tell the story of ancient Rome through hand-painted murals on the large wall surfaces, stretched canvas photography and use of the existing frames and matting with documents or artwork reflecting period-inspired frescoes and carvings.

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INDOOR POOL

We will continue the imagery of Italy’s beaches and water as the primary artwork in the pool area and outer corridors that leads to the indoor pool area.

Additional upgrades:• White sheer treatments to block the parking deck. • Decorative white woven console for guest towels and storage.• Brightly colored planters and an accent wall color for the

outer corridor.

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FITNESS CENTERThe Fitness Center at Éilan is not your typical hotel gym. The full-service fitness center, open to residents as well as guests, needs more structure to its entrance from the lobby.

We will be naming the gym Forza Fitness.

“Forza” means strength in Italian. This common phrase is used in sporting events, such as the World Cup chant, “Forza Italia!” It’s an action word and offers a nice alliteration.

Space plans: • Apply the name and a pattern of decals

to the glass panels and entry door to offer privacy for those working out and improve the view for guests going into Mercato.

• Use pop-art style wall art of Italian sculptures that focus on fit bodies to add interest to the space.

• Brightly colored planters to add color and texture for the outer corridor.

• Add a seating area near the entrance with a bowl of fruit and nearby water and magazines.

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THE GROUNDS AT ÉILAN

Our Tuscan inspiration is rich with luscious plants and trees that line hillsides, walkways and beaches. The hardscaping at Éilan allows for a considerable presentation of plants, flowers and trees. We will add varietals that work in the San Antonio climate and draw inspiration from this region. These might include:

• Terraced vines• Grapevines• A modest olive grove• Agaves• Lemon trees• A variety of lilies• Basil plants and Mediterranean herbs• Cacti and various succulents• Fig trees• Flowering plants with shades of pink,

yellow, orange and violet

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CIELO TERRACE

This area will be fully transformed into the center hub of activity.

Benefits of The Terrace at Éilan:

• Highly Serviceable

• Visible from the lobby, entrance and main Éilan grounds

• Afternoon shade

• Incredible views

Current drawbacks:

• A sea of concrete, with concrete-colored furniture and cushions.

• Furniture placement that does not foster comfort or conversation.

• No cozy areas – oversized, one-dimensional surface.

• No shelter when the full sun is out.

• Limited landscaping.

• No reason to be there.

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CASE STUDY: The Iron Horse Hotel

• The Yard, once earmarked as a parking lot, has become the hottest summer attraction. Features two bars, table and lounge seating, a private pergola.

• Generates $5K weekdays and $10-15K Thursday through Sunday• Crowd was built through programming: Thursday Bike Nights, fashion shows,

Sunday concerts.

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Tables

Lounge chairs

Teak and aluminum sectionals covered with a shared one-arm umbrella

Woven sectionals each within an open canopy

30* Actual selections shown

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BOCCE BALL COURT

A true Italian tradition is the game of Bocce (“BO-chee”) Ball. The lawn area near the outdoor pool can be activated by adding a signature Bocce Ball court to this currently underutilized outdoor space.

The space will be lined with covered pergolas to add seating shaded from the San Antonio sun. Fire pits, ideal for evening cocktails or kids’ s’more making, will be added. The entire space will become a destination for hotel guests and local clientele, as well as a rentable area for corporate events and social catering.

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GUEST EXPERIENCE

A chief drawback currently at Éilan is the lack of activities, certainly compared to Riverwalk properties. So the hotel must work hard to develop programming that is memorable and encourages guests to return.

Éilan already has established the Ripe farmer’s market as a popular event. Creating more will further strengthen Éilan as a destination for locals and visitors. Ideas we are exploring:

• Bocce Ball on the grounds

• Sunrise yoga, led on the Terrace each morning

• Cooking demonstrations, a regularly schedule program and spontaneous events

• Live music in the lobby and on The Terrace

• Italian car and motorcycle shows on the grounds

• Italian fashion show

• Italian language courses

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GUEST TOUCH POINTS

Having a service bar in the lobby open nightly can become a tradition for guests if they are invited. Kimpton Hotels is very successful at establishing their lobbies as “the place to be” with a simple one-hour wine reception.

Once the bar and new FF&E are installed, Éilan will host a Friday and Saturday night Manager’s Reception, complete with Prosecco toast at 6pm. A traditional horn will sound by the head bellman that signals evening has arrived.

In addition, other reasons to venture to the lobby will include hosting:

• Olive and olive oil tasting

• Wine and limoncello tasting

• Italian Cookies served with coffee in the morning

• Fashion trunk shows

• Local Tweet Ups

• Facebook Meet Ups

This programming will be shared with quests by the staff through training and with promotional materials on property and the website and social channels.