Revenue rises by 33% to EUR 72 million (previous year: EUR 54 million) PAGE 5

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1 2014 REPORT INCLUDING Q4 ı MOTEL ONE GROUP KEY FACTS Q4 2014: Motel One on Vienna's big stage PAGE 2 Eighth Motel One opens in Berlin, on the Leipziger Platz PAGE 2 A powerful statement by the workforce PAGE 3 Grand Prix Hospitality ON 2014 award in Paris PAGE 4 Successful launch of My One intranet PAGE 4 Revenue rises by 33% to EUR 72 million (previous year: EUR 54 million) PAGE 5 EBITDA rises by 19% to EUR 21 million (previous year: EUR 18 million) PAGE 5 Sale and leaseback for Hamburg-Altona and München-City-West PAGE FINANCIAL YEAR: 8 new hotels open with 2,529 rooms (previous year: 4 hotels with 1,072 rooms) PAGE 5 Hotel network grows to 54 with 12,822 rooms (previous year: 46 hotels with 10,293 rooms) PAGE 5 Revenue rises to EUR 256 million (previous year: EUR 205 million) PAGE 5 EBITDA rises by 13% to EUR 82 million (previous year: EUR 73 million) PAGE 5 Investments reach record high, at EUR 126 million (previous year: EUR 92 million) PAGE 6 Equity rises to EUR 278 million (previous year: EUR 227 million) PAGE 7 Development pipeline comprises 22 hotels with 7,000 rooms (previous year: 25 hotels with 7,400 rooms) PAGE 8 Market and outlook PAGE 9

2 MOTEL ONE ON VIENNA'S BIG STAGE On 11 November 2014, Motel One introduced a fresh turquoise highlight in Operngasse, the traditional hub of Vienna's ubiquitous hospitality. With its 400 rooms in an historic and completely renovated building, Motel One Wien- Staatsoper is now the number one budget design hotel in the city's much coveted 1st District. It is within walking distance of the Vienna State Opera, whose name it has adopted, and also the Albertina. Karlsplatz and numerous tourist attractions can be reached in a few minutes, including Naschmarkt, Hofburg and Stephansdom (St. Stephen's Cathedral). The hotel is a joint venture between Motel One and the Verkehrsbüro Group and has been realised together with ifa AG. EIGHTH MOTEL ONE OPENS IN BERLIN Another hotel that opened in November is the Motel One Berlin-Leipziger Platz with 239 rooms. It is situated in Leipziger Strasse, directly opposite the Bundesrat, the upper house of Germany's parliament. With its prominent entrance in the new Mall of Berlin, it is within walking distance of Potsdamer Platz and the Brandenburg Gate. Motel One Berlin-Leipziger Platz is now number eight in the budget design hotel chain in Berlin. "The hotel market in Berlin is growing steadily," says Dieter Müller, CEO of the Motel One Group, "and we are proud that we can keep expanding our presence in the German capital in such prominent places." The hotel forms part of an HGHI development called the Mall of Berlin REPORT INCLUDING Q4 I MOTEL ONE GROUP 02

3 A POWERFUL STATEMENT BY EMPLOYEES In October 2014, Motel One held its third annual staff survey, called One Emotion. The purpose of the survey was to find out how employees experienced their working environment and how they felt about their hotel and their workplace. With a 74% level of participation (previous year: 78%) in 2014, One Emotion showed that interest in Motel One is very high. In all, 930 employees from 53 hotels took part in the survey (previous year: 766 employees from 42 hotels). Compared with the previous year, the result showed higher ratings for all seven One Emotion criteria, and average employee satisfaction rose to 86% (previous year: 84%). Faced with considerable expansion and internationalisation, Motel One now needs to propagate this positive spirit throughout the group. As before, the highest scores were achieved in personal motivation and identification. This shows a high level of emotional attachment to Motel One. In CPD, the group is steadily working on the development of its training programmes. Working in collaboration with the IUBH School of Business and Management, One Campus with its One University is set to provide even better opportunities for continuous professional development in the future REPORT INCLUDING Q4 I MOTEL ONE GROUP 03

4 GRAND PRIX HOSPITALITY ON 2014 On 17 November 2014 the French MKG Group, one of the leading consultancy firms in the hotel industry, held an event at the Hotel InterContinental Paris where for the 15th time it highlighted several outstanding and successful ideas in the international hospitality industry in front of an audience of about 1,000 guests. Dieter Müller, founder and CEO of the Motel One Group, was pleased to receive the GRAND PRIX 2014, one of the Worldwide Hospitality Awards and the most important prize of the evening, which was presented to him in person by George Panayotis, CEO of the MKG Group. The jury were particularly impressed by the innovative drive, growth and economic performance of Motel One. SUCCESSFUL LAUNCH OF MY ONE On 1 October 2014, after a development phase lasting more than one year, Motel One celebrated the launch of My One, a social intranet platform, designed exclusively for Motel One. My One connects employees across all hotels and all levels, thus functioning simultaneously as an information platform, an interaction medium and a working tool. My One enables all staff to communicate with one another, find experts, work together on projects and find fast, efficient solutions for their challenges in everyday life. My One combines a range of systems that were originally only available separately a social network, a wiki and a discussion forum so that it now unites personal content, general information and collective knowledge on a single platform. On average, the number of pages that are called up each month totals approx. 100,000, made up of nearly 20,000 individual sessions REPORT INCLUDING Q4 I MOTEL ONE GROUP 04

5 INCOME STATEMENT The network of hotels has grown to 54 hotels with 12,822 rooms (previous year: 46 hotels with 10,293 rooms). Two new hotels were opened in the fourth quarter: Motel One Wien-Staatsoper and Berlin- Leipziger Platz. With an occupancy rate of 76% (previous year: 75%), the revenue generated in the fourth quarter was EUR 72 million (previous year: EUR 54 million). EBITDA rose by 19% to EUR 21 million (previous year: EUR 18 million). In December, a sale and leaseback transaction of over EUR 36 million was conducted, as occurred in the previous year (EUR 63 million). Book profits at Motel One Hamburg-Altona and München-City-West were EUR 20 million (previous year: EUR 26 million). P&L Statement Q Abw. YTD Dezember Abw. No. Hotels , ,4 No. Rooms , ,6 Occupancy (%) 76,4 75,5 0,9 74,8 75,1-0,4 RevRoSold (EUR) 81,8 78,7 81,0 78,3 3,5 TEUR TEUR % Vj. TEUR TEUR % Vj. Revenue , ,8 EBITDA , ,9 EBIT , ,8 OPERATING PROFIT , ,0 Capital gain hotel properties , ,3 EBT , ,0 Income tax expenses , ,1 NET PROFIT , ,8 % Revenue % Revenue % Pts. % Revenue % Revenue % Pts. EBITDAR 42,7 45,4-2,7 46,2 48,5-2,4 Lease payments -14,0-12,8-1,1-14,5-13,2-1,2 EBITDA 28,7 32,6-3,8 31,7 35,3-3,6 EBIT 13,4 20,3-6,9 21,2 24,5-3,3 OPERATING PROFIT 10,4 16,5-6,1 19,7 21,2-1,5 The total number of newly opened hotels in 2014 was 8 with 2,529 rooms in the entire year (previous year: 4 hotels with 1,072 rooms). With an occupancy rate of 75% (previous year: 75%), the total revenue was EUR 256 million (previous year: EUR 205 million). EBITDA rose to EUR 82 million (previous year: EUR 73 million) and the operating profit increased to EUR 51 million (previous year: EUR 44 million). Net profit from property sales less income tax amounted to EUR 50 million in 2014 (previous year: EUR 51 million). The operating return on sales dropped 1.4 percentage points compared with the previous year. This was due to a greater impact on revenue from higher preopening costs and higher lease payments REPORT INCLUDING Q4 I MOTEL ONE GROUP 05

6 CASH FLOW STATEMENT Cash flow from operating activities increased to EUR 37 million in the fourth quarter (previous year: EUR 30 million), while investments were EUR 24 million (previous year: EUR 33 million). Moreover, cash flow in the fourth quarter was also impacted substantially by the sale and leaseback transaction. Cash Flow Statement Q4 YTD Dezember Abw Abw. TEUR TEUR % Vj. TEUR TEUR % Vj. Net profit , ,8 + Non cash items , ,8 +/- Change in working capital < 100, >100 Net cash from operating activities , ,6 - CAPEX new investments , ,4 - CAPEX refurbishment >100, ,5 - Financial assets >100, >100,0 + Divestment book value , ,8 +/- Other grants < 100, ,9 Net Cash investments/divestments > 100, ,0 +/- Change Equity , <100 + Proceeds from long-term debt , ,4 - Repayments of long-term debt , ,2 Net Cash from financing activities > 100, <100,0 Cash flow for the period , <100 Cash at beginning of the period , ,8 Cash at end of period , ,0 The cash flow from operating activities for the whole of 2014 went up 17%, reaching EUR 93 million (previous year: EUR 76 million). Investments reached EUR 126 million (previous year: EUR 92 million) and therefore a record level, including EUR 117 million (previous year: EUR 80 million) on new investments and EUR 9 million (previous year: EUR 13 million) on refurbishments. Divestments related to the book values of the properties sold, at EUR 16 million (previous year: EUR 37 million). Investment subsidies granted by lessors amounted to over EUR 5 million (previous year: EUR 3 million). Net cash from financing activities was EUR 4 million (previous year: EUR 23 million). New bank loans raised amounted to EUR 12 million (previous year: EUR 51 million), while EUR 16 million (previous year: EUR 33 million) was repaid. Of this figure, EUR 11 million (previous year: EUR 28 million) accounted for properties sold and EUR 5 million (previous year: EUR 5 million) for scheduled repayments. Owing to high investment levels, cash flow was reduced by EUR 17 million (previous year: EUR 46 million), to EUR 88 million (previous year: EUR 104 million) as at 31 December REPORT INCLUDING Q4 I MOTEL ONE GROUP 06

7 BALANCE SHEET High investment levels meant that fixed and financial assets went up 24% to EUR 429 million (previous year: EUR 346 million). Equity rose by 23%, reaching EUR 278 million (previous year: EUR 227 million). Net working capital increased by 52% to EUR 56 million (previous year: EUR 37 million). Net debt rose moderately by 15%, reaching EUR 95 million (previous year: EUR 83 million). Balance Sheet and leverage framework December, Abw. TEUR % TEUR % % Fixed assets , ,0 23,8 Current assets , ,7-31,8 Cash and cash equivalents , ,3-16,0 Cash & Assets , ,0 12,8 Equity , ,5 22,4 Provisions , ,9 13,7 Financial liabilities , ,0-2,5 Other Liabilities , ,4 28,2 Non repayable grant , ,2 60,8 Equity & Liabilities , ,0 12,8 Equity , ,5 22,4 Net working capital , ,6 52,6 Net debt , ,9 14,7 Net Balance Sheet , ,0 23,8 - as debt pipeline , ,1-93,6 Net Debt/EBITDA 1,2 1,1 0,0 Net Debt/EBITDA adj. Pipeline 1,1 0,2 0,9 With an equity ratio of 65% (previous year: 66%), the net balance sheet continues to display a sound financial structure. Net debt dropped to 22% (previous year: 24%) of the net balance sheet total. The ratio between net debt and EBITDA on 31 December 2014 was a notional debt repayment period of 1.2 years (previous year: 1.1 years). The robust financing of growth was partly due to the good cash flow of the hotels and partly to the sale and leaseback transactions. Sale and leaseback transactions are carried out for hotel properties that have been in the portfolio for over six years and which have hidden reserves thanks to stabilised operating profits and a good amount of rent cover. The resulting cash flow can therefore be invested in the development of new projects through the formation of reserves under section 6b of the German Income Tax Act (EStG) without any negative impact on the cash flow from income tax. Book profits lead to a corresponding rise in equity. A liabilities item has been created for deferred taxes REPORT INCLUDING Q4 I MOTEL ONE GROUP 07

8 HOTELS IN OPERATION AND DEVELOPMENT The number of hotels operating as at 31 December 2014 was 54 with 12,822 rooms (previous year: 46 hotels with 10,293 rooms). Eight new hotels were opened Frankfurt-Messe, Köln-Mediapark, Edinburgh-Princes, Brussels (Rue Royal), Leipzig-Augustusplatz, Bremen, Berlin-Leipziger Platz and Wien-Staatsoper totalling 2,529 rooms. After the sale and leaseback transaction, the number of hotels owned by Motel One is 21 with 3,563 rooms (previous year: 20 hotels with 3,310 rooms). 33 hotels with 9,259 rooms (previous year: 26 hotels with 6,983 rooms) are secured through long-term leases. in operation Hotels Rooms % Hotels Rooms % Hotels Rooms Owned Hotels Rented Hotels Total operation as Germany as International under development Dec. 31, 2014 Dec. 31, 2013 adj. Abw. Vj. Owned Hotels Rented Hotels Total Pipeline as Germany as International Total secured* Owned Hotels Rented Hotels Total secured as Germany as International * Nicht berücksichtigt ist der Verkauf von 9 Hotels mit 739 Zimmern der FirstGen zum / (s. Ausblick). The development pipeline comprises 22 hotels with 7,003 rooms (previous year: 25 hotels with 7,426 rooms). Of these, 7 hotels with 1,871 rooms (previous year: 8 hotels with 1,905 rooms) are being developed for the Group's own property portfolio, and 15 hotels with 5,132 rooms (previous year: 18 hotels with 5,521 rooms) are being developed under leases in collaboration with external investors. The previous year's development pipeline had to be adjusted as two projects were not realised, despite having contracts. Five new contracts, totalling 2,106 rooms, were concluded in 2014 under the projects Hamburg Fleetinsel, München Parkstadt Schwabing, Berlin Alexanderplatz, Zurich and Amsterdam Valkenburgstraat. The proportion of international activities is currently set to rise to 30% by 2017, with 5,863 rooms (previous year: 5,733 rooms) in 20 hotels (previous year: 19 hotels) REPORT INCLUDING Q4 I MOTEL ONE GROUP 08

9 MARKET The tourist industry reached a new global record in The UN World Tourism Organisation (UNWTO) reported a total of 1.1 billion arrivals of visitors last year. The organisation described this as a 4.7% increase, i.e. 51 million arrivals more than in In Europe, too, arrivals were on the increase, up 4% compared with 588 million visitors in This means that Europe kept up with worldwide trends. UNWTO is expecting to see 3-4% growth in 2015 (sources: UNWTO and AHGZ). This trend has also been confirmed by STR Global data for The reporting hotels recorded a 5.8% increase in revenue per available room (RevPAR) for Europe, 3.8% for Germany, 5.2% for Austria and as much as 7.9% for the UK. Moreover, good growth rates are being reported for the top destinations of relevance to Motel One. The RevPAR in Berlin rose by 4.5%, Brussels 3.3%, Edinburgh 6.4%, Hamburg 5.4%, London 3.3%, Munich 2.3%, Prague 9.7% and Vienna 4.6%. Only Frankfurt experienced a RevPAR downturn of 2.0%, due to its tradeshow cycle (source: STR Global). OUTLOOK After a soft opening in the last days of December, the three hotels Motel One Magdeburg (150 rooms), Prague (141 rooms) and London (290 rooms) got off to an early start in January All three newly opened hotels are situated very favourably: on Domplatz in Magdeburg, in the 1st District in Prague, and on Tower Hill (near Tower Bridge and the City) in London. Nine hotels belonging to the first Motel One generation (totalling 739 rooms) were sold to REIT Foncière des Régions, a company listed on the Paris stock exchange. Some of the sales became effective on 31 January and others on 28 February The hotels are now run by the Louvre Group under the Première Classe brand. Situated in more peripheral locations and featuring different products and services, these hotels no longer match today's Motel One brand image. The sale was part of Motel One's strategy to hone its profile. Another part of this transaction was a sale and leaseback transaction for the two Motel Ones Berlin-Mitte and Frankfurt-Airport. The total transaction volume amounts to EUR 76 million. Where market performance is concerned, we are working on the assumption that, as in the past, demand will be fuelled by the megatrends of globalisation and urbanisation. Risks that may have a negative impact on travelling continue to be the conflict in Ukraine and the potential threat of terrorist attacks by IS. Munich, February REPORT INCLUDING Q4 I MOTEL ONE GROUP 09