Delaware North Companies Retrospective. September 2008 December 2009

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1 Delaware North Companies Retrospective September 2008 December 2009

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3 Delaware North Companies Retrospective at a Glance The Delaware North Family of Companies..2 Family Leadership Financial Overview Vision and Mission... 7 Operating Company Reviews: Delaware North Companies Boston Delaware North Companies Gaming & Entertainment Delaware North Companies International Delaware North Companies Parks & Resorts Delaware North Companies Sportservice Delaware North Companies Travel Hospitality Services Core Capabilities: GuestPath Culinary Retail Corporate Social Responsibility and GreenPath Awards and Recognition The Faces and Places of Delaware North Executive Team and Corporate Information

4 The Delaware North Family of Companies Delaware North Companies Sportservice Delaware North Companies Gaming & Entertainment Delaware North Companies International Delaware North Companies is a global leader in hospitality and food service with operating companies in the lodging, sporting, airport, gaming and entertainment industries. Among its many assets are several world-renowned resorts and Boston s TD Garden, widely acclaimed as one of the top-three sports and entertainment venues in the United States. Delaware North began in 1915 in Buffalo, N.Y. Today, the city is still home to the company s award-winning global headquarters. It is one of the largest privately held companies in the world with annual revenues in excess of $2 billion. Each year, its 50,000 associates serve half a billion customers in the United States, Canada, the United Kingdom, Australia and New Zealand. The cornerstone of Delaware North is Delaware North Companies Sportservice, the oldest name in sports hospitality. For nearly a century, the company has provided retail expertise, and concessions, gourmet catering and fine dining services to sporting and entertainment venues, and convention centers in the United States and Canada. Today s client portfolio includes 50 of the most recognizable names in the sports world, including the St. Louis Cardinals, Boston Bruins, San Diego Padres, Chicago Bears, Minnesota Twins, and New York Jets and Giants. Delaware North Companies Gaming & Entertainment is one of the most innovative gaming and racing operators in the country, specializing in racing venues with added amenities such as video gaming machines, poker rooms, full-service restaurants, retail shops and hotels. The company manages more than 6,000 video lottery terminals throughout the United States and operates at venues in New York, Arizona, Florida, West Virginia, Oklahoma and Arkansas. Delaware North Companies International manages the company s award-winning operations in Australia, New Zealand and the United Kingdom. Its special brand of hospitality and food service can be found in hotels, resorts, airports, railway stations, sporting and entertainment venues, and cultural centers. Its contract at Wembley Stadium and Emirates Stadium, as well as its long-standing involvement with the Australian Open, have given Delaware North s growing international division a welldeserved reputation for handling large-scale events at premier properties. 2

5 Delaware North Companies Parks & Resorts Delaware North Companies Travel Hospitality Services Delaware North Companies Boston (TD Garden) The Boston Bruins (Owned by Jeremy Jacobs, Chairman & CEO, Delaware North Companies) Delaware North Companies Parks & Resorts was founded in 1992 following the company s winning bid for the largest contract in the U.S. National Park Service: Yosemite National Park. With Stewardship and Hospitality in Special Places SM as its credo, Delaware North Companies Parks & Resorts has quickly emerged as a leader in the hospitality sector. In addition to operating at some of the crown jewels among national parks, Delaware North has a portfolio that includes world-renowned hotels and attractions. It has been in the national spotlight on many occasions for its environmental, marketing, culinary, recreation and management expertise. Delaware North Companies Travel Hospitality Services is one of the world s leading airport food service and retail companies. Through contracts at major U.S. airports and toll plazas, Travel Hospitality Services manages 300 restaurants and retail stores, and serves more than 350 million customers each year. At nearly 70 years old, the company is one of the oldest in the Delaware North family and a respected member of the travel industry. Its Gateway Concept that revolutionized U.S. airports by transforming them into harbingers of the sights and sounds of the host cities continues to set the standard. Delaware North Companies Boston is one of the nation s premier providers of world-class entertainment and hospitality experiences. As the owner/operator of TD Garden, the company serves more than 2.5 million visitors each year, more than 200 days a year. Home to the NHL s Boston Bruins and NBA s Boston Celtics, the arena is one of the few multi-tenant facilities in the United States and arguably among the best venues of its kind in the world. The Boston Bruins organization is one of the original six teams of the National Hockey League, known equally well for an unrelenting style of play that has led it to five Stanley Cup championships. Over the 30-plus years that Delaware North Companies Chairman and Chief Executive Officer Jeremy Jacobs has owned the legendary team, it has showcased some of the best talent the sport of hockey has ever seen. Almost 50 Bruins have been inducted into the Hockey Hall of Fame. 3

6 Family Leadership In 1915, brothers Marvin, Charles and Louis Jacobs took the first step toward realizing the American dream of their immigrant parents by establishing a modest popcorn and peanut vending business in Buffalo, N.Y. Through hard work, dedication and innovative thinking, that small business grew into one of the most admired food service and hospitality companies in the world. But while the company may be global, it is still a family business. Delaware North places great value on being a private, family-owned and -operated company. Current Delaware North Companies Chairman and Chief Executive Officer Jeremy Jacobs, the son of founder Louis Jacobs, represents the second generation of the Jacobs family to own and lead the company. His three sons, Jerry Jr., Lou and Charlie, are principals of Delaware North and are key leaders in the company s long-term business strategy. From the beginning, the company embraced its clients, customers and dedicated associates who continually achieve new levels of success in delivering hospitality across the globe. 4

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8 Financial Overview Financial stability has always been a priority for Delaware North. Despite a weak global economy, Delaware North met its financial objectives and finished the year with more than $2 billion in revenue. With approximately 200 locations in seven market sectors served by 50,000 associates around the world, Delaware North is one of the largest privately held companies. As well, it is one of the most respected culinary and hospitality companies. set to open in 2010, and to submit a competitive bid to develop and operate a casino at Aqueduct Racetrack in Queens, N.Y. With signs of economic improvement on the horizon, Delaware North is well-positioned financially to pursue growth and take advantage of market changes. A decision several years ago to manage its investments prudently has paid off. In the past year, Delaware North purchased two hotels in North America and five prestigious resorts in Australia, giving the company a lodging foothold there. In addition, it was able to make the necessary financial commitments to win important new business at the New Meadowlands Stadium $ 2.2 Billion Annual revenue Revenue by Operating Company 207 Forbes rank 200 Locations 50,000 Associates 300 Retail locations 500 Million Guests served Sportservice 23% Travel Hospitality Services 12% Gaming & Entertainment 30% TD Garden 3% Parks & Resorts 17% International 11% Boston Bruins 3% Other <1% 6

9 A global leader in hospitality and food service. Vision To become the preferred provider of products and services that foresee and satisfy the needs of customers, balancing the highest level of satisfaction consistent with maximizing returns to stakeholders. Mission Creating special experiences one guest at a time. 7

10 Delaware North Companies Boston Championship-caliber teams. Passionate players. Superior fan entertainment. These are just some of the reasons that for the fourth time in seven years, Boston took the top spot in The Sporting News annual rankings of the best sports cities in America. Arguably no other city can compare to Boston s sporting prowess in recent years, and at the epicenter of New England s success has been TD Garden, the region s premier sports and entertainment arena. Owned and operated by Delaware North Companies Boston, TD Garden is home to the legendary Boston Bruins and Boston Celtics franchises, and has a diverse sports schedule that includes top collegiate hockey conferences, nationally recognized events such as NCAA tournaments and hundreds of annual concerts, family shows and special events. Through an unparalleled commitment to delivering memorable live events, Delaware North s management team in Boston has built its own championship squad off the ice and court, stocked with all-star players and a focus on the fan experience. Stellar season The Boston Bruins, owned by Delaware North Companies Chairman and Chief Executive Officer Jeremy Jacobs, excited the team s faithful fan base all year, posting one of the best regular seasons in team history during the campaign. With an Eastern Conference-leading record, the Black and Gold were dominant on both ends of the ice. The team ranked first in the National Hockey League in defense with a stingy 196 goals allowed, and ranked as the league s second-best offense (274 goals), a dramatic turnaround from the number-25 ranking the previous season. Since his hiring in May 2006, General Manager Peter Chiarelli has brought a combination of youth and experience to the Boston locker room through shrewd free-agent signings, trades and player development within the Bruins system. In recognition of his re-engineering the Bruins into one of the league s most competitive teams, Chiarelli was honored by The Sporting News as the NHL executive of the year by a poll of his peers, and earned a contract extension that will keep him at the team s helm for several years to come. 8

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12 The team s tremendous regular-season showing was also worthy of several prestigious individual honors. Claude Julien became the third coach in team history (Pat Burns (1998), Don Cherry (1976)) to be selected as the winner of the NHL s Jack Adams Award, which is awarded to the head coach who has contributed the most to his team s success. Bruins goaltender Tim Thomas was named the winner of the Vezina Trophy, which is awarded to the goalkeeper adjudged to be the best at his position. Additionally, All-Star Zdeno Chara joined Ray Bourque (five-time winner) and Bobby Orr (eight-time winner) as only the third Bruins defenseman to be awarded the Norris Trophy, which is given to the defense player who demonstrates throughout the season the greatest all-round ability in the position. Off the ice, the Bruins were equally committed to giving back to the Greater Boston community. Under the leadership of Bruins Principal Charlie Jacobs, the foundation distributed more than $222,500 in grants to 30 different children s charities throughout New England, and was involved in a myriad of other outreach initiatives. Another banner year For the Boston Celtics and their fans, it was a year to celebrate and bask in the glow of championship glory. In just two short years, General Manager Danny Ainge and Head Coach Doc Rivers have led one of the most dramatic franchise turnarounds in NBA history. Following a series of stunning trades that added All-Stars Kevin Garnett and Ray Allen to a team that already included star Paul Pierce, the Celtics promptly lived up to their promise by winning the NBA Championship. On Oct. 28, 2008, Banner 17 joined one of the greatest collections of championship banners in an arena, and was ceremoniously hoisted to the Garden s hallowed rafters in a dramatic celebration that included many of the Celtics legends from years past. Despite an injury-riddled season, the Celtics have reloaded with the recent additions of stars Rasheed Wallace and Marquis Daniels. Their veteran-laden roster now has the Celtics once again poised as title contenders for the next few years at least. Garden party The Garden was nominated as a finalist for SportsBusiness Journal s coveted Arena of the Year award, and not just because of the improved play of its two primary tenants. For starters, the Garden added a third sports tenant with the launch of the Boston Blazers franchise. The newest entry to the National Lacrosse League has been no stranger to New England lacrosse fans. The Blazers previously served as the moniker of the Major Indoor Lacrosse team that played in Worcester in the early 90s and the old Garden and FleetCenter until

13 But it was Delaware North s ability to attract the highest-quality entertainment, and its commitment to the fan experience that has garnered the lion s share of the praise in the venue industry. Despite the sluggish national economy, the Garden posted double-digit increases in both concerts and family show bookings, generating more than 20-percent revenue growth. Night after night, the arena has been cast in the spotlight as it hosted nationally televised events, including NCAA Men s Eastern Regional Finals, in addition to Bruins and Celtics sporting events. The arena s concert schedule was buoyed by visits from some of the music industry s top acts. Featured artists included veteran performers such as Madonna, The Who, Metallica, AC/DC, Tina Turner, Bruce Springsteen and the Eagles. Premium fan experience Based on feedback from focus groups and in-depth client surveys, the Delaware North team has succeeded in continually launching new products based on clients hospitality and entertainment needs. In response to the evolving needs of business clientele, the Garden s Premium Club was the first to integrate a model with amenities beyond the four walls of the arena into its premium-seating membership. In addition, the Garden is now leading the way in the types of products made available to premium clientele, including capturing trends such as all-inclusive food, smaller ticketing packages and flexible seating. The final phase of the venue s three-year strategic plan for recreating the Premium Club portfolio included a $4 million renovation project. Among the new Premium Club additions generated this past year was The Lofts. As the name suggests, the concept includes a loft-inspired design that features a trendy lounge décor in a two-tier space overlooking the arena. This allinclusive experience comes complete with a small, plated five-course menu, game tickets and parking. Other new premium spaces include a lounge and raw bar (Club Lounge), corporate event suite (The Executive View), reinvented and relocated Banners restaurant (Banners Harbor View) and an enhanced function room (The Partners Room). Over the past three years, our multimillion-dollar investments and improvements in the building have been a balanced approach to addressing business, technical and service improvements for all of our equally deserving constituents, said John Wentzell, president of TD Garden and Delaware North Companies Boston. Hospitality and entertainment needs are consistently evolving, and we are looking to provide a wide variety of corporate-focused products and amenities to meet them. 11

14 Corporate synergies Continued collaboration with Delaware North subsidiary Sportservice has also resulted in further integration of a new point-of-sale operation, touch-screen ordering, faster credit card processing and Concessions Express kiosks for self-orders. In addition, Garden executives have embraced Delaware North s leadership in the sustainability and environmental areas of the company s business. The green agenda has been broad and ambitious for the Garden s entire operation in recent years as the venue began a feasibility study for energy conservation. A subsequently signed contract with an expert consultant has reduced the arena s electricity usage by nearly 20 percent. Delaware North Companies Boston was also responsible for carrying these green efforts into the North Station, the major mass transit terminal that underlies the arena, in order to provide more energy-efficient heating and air conditioning. Other programs implemented at the Garden include the collection of food waste for composting, a green concession stand and the use of sustainable local food products at restaurants in the arena. Lighting it up While the venue continues to lead the way in many respects for the industry, it also has been lighting the way for Boston fans in recent months. An exterior lighting project with a specialty energysaving LED platform, was installed to illuminate the Garden at night. The new design provides a 60-percent decrease in kilowatt consumption over the previous equipment. 12

15 The project brings an exciting new live lighting element to the venue s exterior with an assortment of lighting capabilities to signify the events that are happening within the building. When the Boston Bruins are playing at home, the building now basks in a gold glow; for the Boston Celtics, a leprechaun green; the Boston Blazers, a fiery red; concerts shimmer in a rainbow of tie-dye; and special events radiate a blue hue. To celebrate a home-team win, the building has the ability to do the wave through a special lighting effect, signifying the victory within the city skyline. With a recent name change to TD Garden, new vibrant entertaining spaces, the Bruins and Celtics returning to the form of their glory days, and more big-name musical acts lining up to take the Garden stage, Delaware North Companies Boston is uniquely poised to generate even more celebratory waves and memorable live experiences for New England sports and entertainment fans for many years to come. HIGHLIGHTS For the fourth time in less than a decade, Boston owns the title of best sports city in America, according to The Sporting News. At the epicenter of New England s sports prowess is TD Garden, the region s premier sports and entertainment arena. Proving a bear market is a good thing, the Boston Bruins post one of the best seasons in team history during the campaign. Boston Celtics General Manager Danny Ainge and Head Coach Doc Rivers lead one of the most dramatic turnarounds in NBA history. On the heels of a championship in 2008, the Celtics advance easily to postseason play in The Garden is a finalist for SportsBusiness Journal s coveted Arena of the Year award. Adding a new tenant (the Boston Blazers), double-digit increases in concerts and family shows, and a 20-percent increase in revenue are just some of the reasons it is the center of the sports world s attention. 13

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17 Delaware North Companies Gaming & Entertainment Whew! It seems like a good time for Delaware North Companies Gaming & Entertainment to catch its collective breath. After several years of major renovations, expansions or opening of new facilities at most of the division s locations, the focus shifted during the second half of 2008 and first half of 2009 to honing those operations. In fact, it could be said that Delaware North arrived in 2009 with a vastly different and much larger portfolio of gaming properties than it had only a few years earlier. Consider what 2008 alone yielded. A brand-new $30 million Daytona Beach Kennel Club & Poker Room opened in May; Wheeling Island Hotel- Casino-Racetrack completed its first year as a fullfledged casino with table games; and the finishing touches a new steakhouse and simulcasting center were the icing on the more than $40 million renovation of Southland Park Gaming & Racing. The new and added amenities, combined with Delaware North s operational focus, resulted in increased revenue at several locations, most notably Southland Park and the company s three video lottery terminal (VLT) operations in New York state. Earlier expansion and renovation projects helped position Finger Lakes Gaming & Racetrack, Fairground Gaming & Raceway, and Saratoga Gaming and Raceway as popular regional gaming and entertainment destinations. Similarly, Wheeling Island and Daytona Beach gained recognition as popular, top-flight regional casino and poker venues, respectively. Wheeling Island did so in the midst of increased competition in nearby Pennsylvania, differentiating itself with entertainment and great restaurants to complement its hotel, gaming and racing offerings. But not to rest too long, the division began a new phase of renovations this year at Finger Lakes and began work on a gaming and hospitality building at Fairgrounds. The Delaware North Companies Gaming Hospitality Group added a major contract in early 2009 with the addition of a new property in Oklahoma. And the company is awaiting a decision from New York state on its bid to develop and operate a world-class regional gaming and entertainment destination at Aqueduct Racetrack in Queens, N.Y. 15

18 Wheeling s Moon a poker star They ve only been playing poker at Wheeling Island Hotel-Casino-Racetrack since December 2007, yet already one of its patrons has made it to the top. Darvin Moon, who qualified at a Wheeling Island tournament, will be at the final table at the 2009 World Series of Poker. In July, Moon eliminated poker professional Jordan Smith to fill the field of nine who will play for the game s ultimate title in November. All nine players in the world-championship event will earn at least $1.26 million. The winner will take home $8.55 million. Moon, who had never been to Las Vegas prior to July, owns and operates a small logging company in Maryland. An exciting first year In just a year, the new Daytona Beach Kennel Club & Poker Room has landed on the international poker map. Since moving to the new facility and opening a 50-table poker room with a Las Vegas feel, it has furthered its reputation as a gaming leader in Central Florida. For example, the room s $181,500 in revenue for the week ending Jan. 18 broke a property record, thanks largely to World Series of Poker events, other qualifying tournaments and hefty jackpots. Daytona Beach was also designated as a World Series of Poker satellite location, drawing professional poker star and actress Tiffany Michelle, known as Hot Chips to poker insiders, for one of the tournaments in April. 16

19 Nothing but the best Casino Player named Wheeling Island Hotel- Casino-Racetrack best casino as part of its 2009 Best of Gaming awards. Wheeling Island received eight other first-place gaming awards from the publication, including best hometown slots, best reel slots, best video poker, best cash back, best promotions, best service and luckiest casino. Casino Player is one of the most respected gaming trade publications. Let us entertain you Part of Wheeling Island s successful positioning has been as a complete entertainment destination, with regular big-name concerts leading the way. For example, Styx & REO Speedwagon headlined a concert on Independence Day weekend. The summer also saw concerts featuring country star Dwight Yoakam and 1970s rock legend Peter Frampton. A fine vintage in New York wine country Finger Lakes Gaming & Racetrack celebrated its fifth year of video gaming operations in February, offering guests a weekend of special promotions and entertainment, plus a dinner with VIP players. Like the vineyards in the Finger Lakes region, the venue continues to become a more popular destination for Rochester-area residents and tourists alike. Delaware North has responded with exterior aesthetic and venue access enhancements and interior hospitality-area renovations. And even the racetrack portion of Finger Lakes, already busy three seasons of the year with the only thoroughbred racing in the state west of Saratoga, is becoming a year-round venue. A new kind of horsepower was on display in February when the International Series of Champions (ISOC) AMSOIL Championship Snocross Series made its first-ever appearance. More than 13,500 fans turned out over the three days of fast-paced Snocross action, with the success prompting an agreement for the event to return in 2010 and

20 We showed the way Earlier this year, Delaware North completed its five-year management engagement and facilitated a smooth transition for Saratoga Harness Racing, the parent company of Saratoga Gaming and Raceway, to assume operational management of its own facility. Delaware North guided Saratoga through major expansion projects in 2004, when Saratoga became the first video gaming facility in the state of New York, and again in 2007, when it added more gaming, hospitality and entertainment amenities. We are very proud of what we have accomplished by working closely with Saratoga Harness Racing every step of the way, said Bill Bissett, president of Delaware North Companies Gaming & Entertainment. We demonstrated how to collaborate with the ownership and operator of the racing side to run an effective entertainment destination. The two companies are still working together on potential new gaming venues and to build Gideon Putnam Resort s reputation as the premier historic hotel and spa in New York s capital region. Southland Park gets lucky Southland Park Gaming & Racing received recognition for its creative and some might say provocative 2008 advertising campaign at the Voice Awards in Las Vegas. The gaming destination s Be Lucky That Way billboard campaign was a Voice Award finalist for Best Outdoor Advertising Campaign. Southland Park worked with Memphis-based advertising firm CS2 on the campaign. Southland Park saw a general increase in revenue after the campaign, part of an effort to rebrand the venue in a market that largely believed it still only offered racing. The campaign used humor and 1950s-era characters to promote the venue s gaming offerings, including electronic poker and blackjack. We know how to share our know-how At Saratoga, Finger Lakes and Fairgrounds, Delaware North has demonstrated it knows how to create and operate a successful regional gaming and racing entertainment destination. So, Empire Resorts Inc. knew where to find help in improving the results at Monticello Casino & Raceway in downstate New York. Empire Resorts tapped Delaware North earlier this year for a three-year management agreement that includes marketing and strategic advisory services. Delaware North is here to help Monticello Casino & Raceway realize its full potential, said Empire Resorts Joseph E. Bernstein. The company has hit the ground running and has already identified significant action items to help improve our business and expand customer appeal. Gaming Hospitality Group grows with new contract The Delaware North Companies Gaming Hospitality Group took a major step forward earlier this year with an agreement to develop and manage restaurants at the new Durant Casino Resort Spa in Oklahoma. When it is completed in early 2010, the new casino will include a 330-room, four-star hotel, spa and fitness center, 40 table games, a 30-table poker room and more than 3,000 slot machines. Located just 90 minutes north of Dallas, the casino is owned by the Choctaw Nation of Oklahoma. 18

21 Delaware North will handle food and beverage operations for the 150-seat casual dining Blue Moon Café, 100-seat 1830 Steakhouse, 450-seat Butterfield s Buffet, 45-seat Mexicanstyle Tomatillo s Grill, the 30-seat Jackpot Java Coffeehouse and the 100-seat food court. Delaware North will also oversee onsite catering and banquet operations for the casino s conference and meeting areas. This is an exciting opportunity for us to display our hospitality expertise in a new market, said Gaming Hospitality Group Managing Director Nick Liberto. We re committed to bringing culinary excellence to the Durant resort. Launched in late 2007, the Gaming Hospitality Group began working with its first client in 2008, a consulting and management agreement with the Stockbridge-Munsee Band of Mohican Indians. Delaware North is assisting with the expansion and enhancement of hospitality amenities and food and beverage offerings at its North Star Mohican Casino in Wisconsin, located between Green Bay and Wausau. HIGHLIGHTS Delaware North gaming and racing venues continue to increase their appeal as regional entertainment destinations in part by leveraging the company s significant investments in recent years to expand gaming and hospitality amenities. Additional expansion projects at Finger Lakes Gaming & Racetrack, and Fairgrounds Gaming & Raceway are in the works to continue to position the venues in the Western New York gaming and entertainment markets. Delaware North s Gaming Hospitality Group obtains a significant contract to develop and manage restaurants at the new Durant Casino Resort Spa in Oklahoma when it opens in The company is sought out and accepts a consulting agreement to help Empire Resorts Inc. enhance operations and marketing efforts at Monticello Casino and Raceway in downstate New York. 19

22 Delaware North Companies International Delaware North Companies International marked five consecutive years of strong growth in 2008 and then made a splash in August 2009 with the announcement that it had acquired five prestigious luxury resorts in Australia. The resorts, acquired from the GPT Group, are located in some of Australia s most beautiful locations. Delaware North is set to begin operations this year at the resorts, the company s first foray into lodging outside of North America. Delaware North has an amazing history of operating in special places, said Jonathan Tribe, managing director of Delaware North Companies International. Visitors to our resorts will find themselves in special places that only Australia can offer from the Kimberley to the Red Centre and the Great Barrier Reef. Delaware North expanded into another new business line later this year when it entered the United Kingdom s travel hospitality sector with contracts for three major airports Heathrow, Gatwick and Edinburgh and one railway station. In addition, the company expanded its U.K. sports venue portfolio, adding Derby County Football Club s Pride Park Stadium to the new Wembley Stadium and Emirates Stadium. Wembley Stadium, meanwhile, upheld its reputation as one of the premier sports and entertainment venues in the world with a series of high-profile concerts. Back in Australia, the company and its associates at Melbourne Park set a new standard for performance under difficult circumstances by handling world-record attendance for a tennis Grand Slam event on several days while dealing with extreme heat at the 2009 Australian Open. Delaware North also expanded its interests in the education sector in Australia with a new contract at Curtin University. In addition, the company in 2008 and 2009 completed a round of new openings at many of its travel sector locations, including the new food court in Melbourne International Airport. Looking ahead, Delaware North Companies International is exploring additional opportunities in the travel hospitality, sports venue and other key company sectors in countries in which it currently operates, as well as countries in Europe and Asia in which it does not yet have operations. Planes, trains and hospitality Delaware North is entering the U.K. travel hospitality sector this year in a big way, debuting concepts in three major airports and a railway station. Caffé Cucina opened in June in London s Euston Railway Station, while En Toast opened in July in Gatwick Airport. A third concept The Dining Street Restaurant opened in Heathrow Airport in October. In Scotland, Delaware North will open a restaurant, and an ice cream and crepe bar in Edinburgh Airport by year s end. 20

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24 Delaware North was able to penetrate the highly competitive market by developing concepts that meet the branding needs of clients, especially tailoring concepts to promote the character of specific travel sites, and the changing tastes of consumers. Crowded house Even by Delaware North standards, the 2009 Australian Open was a massive food service and catering undertaking. With attendance at more than 600,000 this year, the event has drawn more than one-half million guests for 10 consecutive years. The highest-ever day/night attendance in Grand Slam history was recorded three times, with the new record of 66,018 set Jan. 24. And, as is their custom, visitors ate and drank. A lot. More than 12,000 meat pies, for example, meaning that preparations were essential. This included installing and operating 954 electrical appliances, 272 of them additional refrigerators, and three new temporary kitchens. In total, Delaware North established 88 new structures using 3,378 pieces of equipment to meet the tremendous hospitality needs. All of this was accomplished in extreme weather conditions, with temperatures regularly rising above 100 F and reaching a high of 111 F (44 C). Yet, Delaware North managers and associates were able to keep cool, and provide exceptional customer service in the company s GuestPath tradition. Responding to a tragic event All Australians and many international friends were deeply affected by the ferocity of the bushfires (wildfires) that swept across Victoria in February The fires claimed 195 lives, destroyed towns and thousands of farms, killed countless animals in the wild and farm stock animals, and devastated many areas of remarkable forests. Delaware North associates were evacuated from one site during the fires as a precaution. Fortunately no associates were killed or injured, but many had family and friends who were directly affected. 22

25 In the aftermath, Delaware North associates donated more than $90,000 (Aus.), countless voluntary hours and leftover food to help ease the burdens of many others. But have you played Wembley Stadium? The summer concert season at Wembley Stadium featured an amazing lineup of artists including AC/DC, Take That, and Oasis with a halfmillion people attending eight concerts in three weeks in June and July. During this period, more than 2,000 Delaware North associates worked each event day. In August, U2 set a Wembley Stadium concert attendance record when 88,000 attended one of the Irish rock legend s two shows. Food for thought Delaware North recently began operating four dining locations at Curtin University in Western Australia, expanding the company s operations in the education sector. Located in the Perth suburb of Bentley, Curtin University was established in 1966 and is now the largest provider of higher education in Western Australia. In 2009, there were more than 30,000 enrolled students with approximately 1,500 students in residence and a staff of 2,500. The catering services at Curtin have been managed by small independent operators and the Student Guild. By the end of 2009, there will be 12 food and beverage outlets in operation on campus. The guild will operate six of these, independent operators will manage two and Delaware North will handle four proprietary café concepts. We wok on less water Australia is the driest continent in the world. It has suffered from extended drought conditions, with many regions having been in the midst of a drought for five years. Responsible use of water is therefore considered to be one of the highest priorities, with water restrictions in place in many parts of the country. So, Delaware North recently introduced waterless woks at its Billy Chu outlets in Melbourne and Adelaide airports. Each wok reduces water use by 70 percent, resulting in savings of more than 1,300 gallons (5,000 liters) a day. Each wok installed will save 370,000 gallons (1.4 million liters) of water every year. Spreading healthier foods Delaware North s Culinary Wellbeing program is spreading out so our patrons waistlines might not. Over the last year, the program has been introduced at Etihad Stadium, Melbourne Park and Melbourne Zoo. Later this year, it will be available in Wembley Stadium and Emirates Stadium in London and Australia s The Terrace in the Royal Botanic Gardens, Albert by the Lake function center and Curtin University. 23

26 Introduced in 2008, Culinary Wellbeing is a Delaware North corporate program that focuses on lighter and healthier food options that offer genuine reduced levels of fat, salt and sugar while improving fiber and whole-grain content. Delaware North strives to use fresh, local ingredients and organic products for these dishes. Branching out in Sydney Delaware North in late 2008 opened its first outlets in Sydney International Airport, which is undergoing a major expansion and renovation. The company already has an existing operation in the Sydney Domestic Airport. Among the new outlets Delaware North brought to the airport are Hungry Jack s (the Australian Burger King franchise) and an Oporto s franchise. Delaware North has relationships with both brands. Oporto s chicken and chicken burgers have a unique, Portuguese-influenced flavor. Its restaurants offer a fun, irreverent and highquality fresh-cooked dining experience. Oporto s uses fresh ingredients, as emphasized by its key marketing statement: Fresh Not Frozen, Grilled Not Fried. Delaware North also has an agreement to assist with the entry of Oporto s into the U.K. market. We take pride in our catering Delaware North began providing hospitality and food services at its third stadium in the United Kingdom when it took over operations at Pride Park Stadium, home of the Derby County Football Club, in July As part of the agreement, Delaware North manages the sales and marketing for nonevent-day conferencing and banqueting at the venue. Derby County Football Club is currently in the English FA Coca-Cola Championship and is building to return to the Barclay s Premier League. Derby County is known as the Rams and its supporters are recognized as being among the most passionate in English sports. 24

27 HIGHLIGHTS The company takes its lodging and hospitality prowess beyond the shores of North America with the purchase of five Australian resorts. Delaware North enters the United Kingdom travel hospitality sector and will operate in three airports and one railway station by the end of World-record attendance and extreme heat are dealt with in turn by Delaware North associates at the 2009 Australian Open at Melbourne Park. A zeal for big parties Thanks to Delaware North, in just two years since its opening, Vector Arena has become the go-to venue for New Zealand s biggest banquets. Delaware North hosted the New Zealand Property Council Awards, a formal, sit-down dinner for 970 guests. Despite the awards dinner having been staged at many high-profile venues over the years, the dinner at Vector Arena was proclaimed the best ever by the council s leadership. But that record didn t last long. The venue then hosted the Halberg Awards, a dinner and awards ceremony honoring the nation s best athletes. More than 1,000 people attended the prestigious event, held in February Delaware North expands its interests in the education sector in Australia with a new contract at Curtin University. Derby County Football Club s Pride Park Stadium now features the food service, hospitality, and sales and marketing expertise of Delaware North. 25

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29 Delaware North Companies Parks & Resorts Leave it to Delaware North to be well-positioned in the destination-travel sector even at a time when the economy prompted many to stay put or at least stay closer to home. As so-called staycations increased in popularity since summer 2008 and into summer 2009, Delaware North Companies Parks & Resorts properties came to understand, appreciate and leverage their value. The key, operating company President Kevin Kelly said on CNBC, has been the special places in which Delaware North operates and the company s strong efforts to ensure guests have memorable experiences. Whether we continue to see increased travel and people traveling closer to home or the industry changes and brings us completely different kinds of travelers, we take pride in enabling them to best experience these special places and destinations, Kelly said. Telling the stories of these historic places and seeing to it that guests get everything they hope for from their vacations are what strikes to the core of our company. While the U.S. Travel Association was predicting domestic travel during summer 2009 would be at a five-year low and that 10-percent fewer international travelers would arrive on U.S. soil, Delaware North locations like The Lodge at Geneva-on-the-Lake, Tenaya Lodge and Yosemite National Park were bucking the trend. Delaware North acquired two inns near key national park locations, and won a bid to operate the Queen Mary, a historic ocean liner permanently docked in Long Beach, Calif. Delaware North also continued to be recognized for its effectiveness in managing and operating Kennedy Space Center Visitor Complex in Florida and all lodging, food service and visitor recreational services in Yosemite National Park. Another bite at the Apple Looking to expand its lodging offerings for visitors to the fabled Yosemite National Park, Delaware North in December 2008 completed the acquisition of the 53-unit Apple Tree Inn. The inn is adjacent to the Delaware North-owned and -operated Tenaya Lodge, just south of Yosemite in Fish Camp, Calif. Delaware North immediately launched a softgoods renovation of the inn and began welcoming guests this spring. The acquisition came as Delaware North continued work to expand Tenaya Lodge s High Sierra conference and spa facilities for the 2010 season. The main ballroom is growing to 10,000 square feet and three new 700-square-foot breakout spaces are being added. A new 8,000-square-foot spa, with numerous treatment rooms, is also being built. Tenaya also opened a new restaurant, Embers, this summer. 27

30 Adding special places Delaware North continued to expand its portfolio of owned and managed properties in May with the purchase of the Holiday Inn West Yellowstone, a 123-room, full-service hotel located less than a mile from an entrance to Yellowstone National Park. It was the fourth hotel Delaware North has acquired since 2001, marking another special place where the company offers its distinctive brand of hospitality to travelers. The Holiday Inn West Yellowstone caught the company s eye because of its position as the market leader in the area and its location at the gateway to the oldest and one of the most beloved of America s national parks. Built in 1994, the inn offers guests a 175-seat restaurant; a 125-seat lounge; 10,000 square feet of function space; and an indoor pool, hot tub, dry sauna, fitness room and guest laundry. In fall 2009, Delaware North began managing the storied Queen Mary, the grand 1936 ocean liner that is now permanently docked in Long Beach, Calif. Earlier this year, Delaware North completed $1.8 million in renovations, part of a planned 20-year, $18 million investment program that will include improvements to the hotel s guest accommodations, lobby, corridors and dining room, as well as the storied mineral baths and spa. Constructed in the 1930s, Gideon Putnam is one of the Historic Hotels of America as designated by the National Trust for Historic Preservation. As part of the project, this spring the renovated Putnam s restaurant opened with menus featuring locally grown foods and produce, and regional beers and wines. Resorting to renovations When Delaware North gets a hold of a special place, things start happening to make it as special as possible. It s called stewardship, and that s why New York state brought in Delaware North to operate the historic Gideon Putnam Resort, including the Roosevelt Baths & Spa in Saratoga Spa State Park. 28

31 Smooth operator Lodging Hospitality, a major trade publication of the lodging industry, named Delaware North one of the top management companies in regard to properties owned, managed and operated. The report noted Delaware North currently oversees more than 3,800 rooms at properties the company either owns or manages for others. ShermansTravel.com named The Ahwahnee in Yosemite National Park the best national park lodge. The Ahwahnee is one of numerous properties Delaware North operates in Yosemite National Park. USA Today travel correspondent and esteemed travel writer Peter Greenberg profiled Yosemite, giving readers a personalized tour and providing insider tips. In the column, Greenberg credited The Ahwahnee as one of the great places to stay in any national park and also praised the Wawona Hotel and its interesting menus. Helping visitors take it all in A significant part of Delaware North s mission of stewardship of the special places at which the company operates is interpreting them so that visitors can enjoy the most memorable experiences possible. To add to the many ways in which Delaware North does this for the thousands who visit Yosemite National Park each year, the company partnered with travel and hospitality marketing communications agency MMG Worldwide to launch a new integrated campaign focused on helping people explore Yosemite. Through the Take It All In campaign, park visitors are urged to step outside their vehicles and use Global Positioning System (GPS) technology to actively engage in biking, hiking and sightseeing. 29

32 A stellar attraction Kennedy Space Center Visitor Complex, operated by Delaware North for some 13 years, just keeps getting better and better. On the heels of the 2007 opening of Shuttle Launch Experience, Delaware North opened Eye on the Universe: The Hubble Space Telescope exhibit in October The exhibit celebrates the stunning discoveries of one of the most useful telescopes ever built by featuring powerful Hubble images that let visitors step into the universe and walk toward the ancient stars, nebulas and galaxies. Kudos for Kennedy The accolades for the Delaware North-operated Kennedy Space Center Visitor Complex came in regularly. Here is a sampling: MSNBC.com: Launch or not, they won t be bored not when they can see IMAX movies, including one narrated by Tom Hanks, or blast off during the Shuttle Launch Experience to get a sense of what it feels like for shuttle astronauts as they are blasted into space at 17,500 miles per hour or get a view of Earth as the payload doors open. From a blog: I spent the day at Kennedy Space Center Visitor Complex and enjoyed every minute of it. I took the NASA Up Close tour and was able to get close to launch pads. I even saw the pad where they are preparing for the next launch. Everything was explained well by the staff and the IMAX show was amazing. Kennedy Space Center Visitor Complex was honored with two safety awards from the United Safety Council, a safety training organization that promotes safety in every aspect of American life. The property earned both the Vehicle Fleet Safety Award, for associates driving approximately 1.5 million miles in company vehicles without an at-fault accident, and the Safety Achievement Award for outstanding safety performance. The public relations team at the visitor complex picked up some hardware by capturing two statewide public relations awards in the 2008 Golden Image Awards held by the Florida Public Relations Association. Kennedy associates received an Award of Distinction for the Shuttle Launch Experience integrated marketing campaign in the Public Information and Promotional Marketing categories. The successful campaign resulted in a double-digit increase in attendance, an increase in Florida resident visitation and $2.5 million worth of publicity. 30

33 Grapes, not gripes, at this lodge The Lodge at Geneva-on-the-Lake celebrated its fifth anniversary earlier this year, providing an opportunity to note the steadily increasing occupancy that Delaware North has fostered. In the face of a global travel slump that saw the Cleveland market down 11 percent in hotel occupancy through April 2008, the lodge posted a nearly 3-percent increase. Delaware North has done this by providing exceptional customer service, carving out a niche as a go-to spot for fine dining and Cleveland-area staycations, and employing innovative marketing approaches. An example is the lodge s successful Grape Camp for families, begun in summer It proved so successful, that it was expanded for summer Along with providing guests with tours of local wineries, the resort staff led grape-related activities for children, including a vineyard scavenger hunt and learning about the region s grape industry around the campfire. HIGHLIGHTS Delaware North acquires two lodging properties to add to its operations near two of the most popular national parks: the Apple Tree Inn adjacent to the Delaware North-owned and operated Tenaya Lodge near Yosemite National Park and the Holiday Inn West Yellowstone near an entrance to Yellowstone National Park. The new inns add to Delaware North s portfolio of owned properties. The company also continues a project to expand conference and spa facilities at Tenaya Lodge. Continuing the company s strong tradition of stewardship, Delaware North completes the first phase of a 20-year, multimillion-dollar rehabilitation and restoration of Gideon Putnam Resort, including the historic Roosevelt Baths & Spa, in Saratoga, N.Y. Delaware North Companies Parks & Resorts weathers the storm of economic recession by embracing the emerging staycation trend of people recreating closer to home and leveraging the special places at which it operates as popular regional getaways. Delaware North s management and massive operations in Yosemite National Park and Kennedy Space Center Visitor Complex continue to be recognized in the news media and through various awards. 31