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MARKETING UPDATE September 2016

September 2016

MARKETING UPDATE

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MARKETING UPDATE September 2016

A MESSAGE FROM

BILL LINEHAN CHIEF MARKETING OFFICER

RLHC is continuing to grow our market share and footprint across the country. I am really excited about the new programs and brand standards we have implemented over the last several months. People are loving the brand, we have great momentum and are seeing huge results. In this marketing update: Formula 4 Sponsorship Hello Rewards App Promotional Packages Wi-Fi Upgrade Own Your Summer Military Makeover…

Campaign Results and more With kind regards, Bill Linehan EVP & Chief Marketing Officer  

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MARKETING UPDATE September 2016

Forumla 4 Sponsorship

Hello Rewards App

Hello Rewards for Associates

WHAT’S NEW FORMULA 4 SPONSORSHIP Along with Coca-Cola®, RLHC sponsors Formula 4® driver Blake Mount, son of RLHC CEO Greg Mount. Blake, a resident of Denver, started racing competitively at age nine and his need for speed has only grown since then. HELLO REWARDS APP We launched the Hello Rewards app, allowing travelers to book hotel stays, access local destination recommendations and check the weather all on one platform. Hotel RL properties will offer enhanced app capabilities, including digital door keys, hotel staff-to-guess messaging, room service and digital check-in and check-out. HELLO REWARDS FOR ASSOCIATE RLHC associates are our biggest asset and we want to reward and recognize you. Associates that join Hello Rewards for Associates will receive all the benefits of Hello Rewards along with exclusive perks and promotions. UPCOMING SPONSORSHIPS We are excited to announce upcoming sponsorships with Uber, Dollar Shave Club and Tango Card. Be on the lookout for more information in the coming weeks.

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MARKETING UPDATE September 2016

PROMOTIONAL PACKAGES The RLHC Field Marketing team is working with on coordinating local packages with all hotels that fall within the new Promotional Package Guidelines. All hotels are asked to have three local packages at any given time.   Promotional packages showcase what the RLHC experience is all about and helps differentiate us from the rest of the pack. With unique offerings tailored to our guests’ needs and aspirations, we not only align with their values, but also drive direct bookings. Packages will be targeted toward guest profiles to attract and cater experiences to a wide array of travelers.  

WI-FI UPGRADE One of the most important amenities for our guests is wireless internet access. In order to deliver high-speed internet access that meets guest expectations, the RLHC IT team introduced new brand standards for Wi-Fi solutions and internet bandwidth. These standards are specific for each brand and should be reviewed carefully to ensure both the Wi-Fi hardware and the internet access speed available meet the new requirements.   To help our properties move toward these new requirements, the IT team has partnered with Telkonet and Ruckus for special pricing. Any hotels that place orders between now and the end of the year will receive a 40% discount from standard pricing. For more information on Wi-Fi upgrades, please review this infographic.

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MARKETING UPDATE September 2016

HELLO REWARDS RATE AVAILABLE TO EXPEDIA USERS

Due to our new partnership with Expedia, our margin was reduced to 18%. In a first-of-its-kind strategic marketing agreement with Expedia and its expansive affiliate network, RLHC now offers the Hello Rewards discount rate to Expedia customers in exchange for their Hello Rewards membership. Membership is required to purchase the discount.   Since launching the program, Hello Reward membership grew 4x month-over-month in July, coming off of the highest growth month ever for Hello Rewards. 1x of that growth came directly from Expedia, while the other 3x was through our brand.com websites. In August, we continued to see Hello Reward membership growth month-over-month with 1Ž2 of the growth coming directly from Expedia. To date, over 80,000 new members have joined Hello Rewards since launching the program. Hello Rewards membership bookings on Expedia also increased over 4x month-over-month from July to August

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MARKETING UPDATE September 2016

OWN YOUR SUMMER CAMPAIGN UPDATE

SUMMER CAMPAIGN RESULTS SNAPSHOT

ROAS: 4,161% Bookings: 82,846 Room Nights: 119,077 Revenue: $11,543,928

The Own Your Summer campaign began June 9, with booking dates from June 9– August 29. Guests saved 15% on room rates as well as an extra 10% discount when they joined Hello Rewards. The additional guest perks included early check-in, late check-out, kids’ allowance, food and beverage credits, as well as future discounts.  

SUMMER CAMPAIGN ADVERTISING RESULTS

and AARP Magazine reaching over 9 million readers.  As a result of the AARP advertising plan alone, we have garnered over 1,500 new customer leads since our last update. Year-to-date, we have reached almost 40 million readers with our print advertisements.

This summer we placed advertisements for RLHC brands in Southwest Airlines Magazine, Alaska Airlines / Horizon Magazine

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MARKETING UPDATE September 2016

MILITARY MAKEOVER RLHC has always paid tribute to military members and their families with special discounts on hotel stays. To take our commitment to the next level, we’ve teamed up with the Lifetime® TV mini-series Military Makeover®. The show enlists the help of design and home renovation experts to transform the homes of military families across the country.   We welcomed wounded war veteran Lance Cpl. Michael Adams and his family to stay at Red Lion Hotel Orlando–Kissimmee during their home’s renovation and provided the Adams family with tickets to Walt Disney theme park. Catch the reveal on Lifetime® for the last of a three-part episode airing at 7:30 a.m. ET/PT on September 22.

COFFEE STANDARDS RLHC is dedicated to providing guests with the coffee experience they expect from a hotel. We announced our partnership with Vibe Coffee Group—parent company of the Victrola Coffee Roasters and Whidbey Coffee Roasters brands—to launch a premium guest coffee experience. From sourcing the best fair trade coffee beans and the best coffee equipment to designing a training program that will elevate your guest’s coffee drink of choice, our brands will own coffee.   Please review the communication sent July 22 for detailed information regarding the coffee partner, equipment, training costs, coffee products, paper goods and other resources.

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MARKETING UPDATE September 2016

Meet Our Marketing Additions

Dan Schacter, Director of Corporate Communications Dan joins the RLHC Marketing team with more than eight years of expertise creating, implementing and leading strategic marketing programs and communications. His foundation is in public relations and has extensive marketing experience with companies like Jim Beam, Disney, Vail Resorts and the Brazilian Tourism Board. Dan fosters thought leadership while analyzing and uncovering unique opportunities for developing unified global communications and branding. Dan has experience working with in-house communications teams as well as agency experience with Edelman Public Relations.   Dan is a Colorado transplant originally from Chicago. He graduated from Illinois State University with degrees in Public Relations and Tourism Studies. He loves to travel both domestically and internationally and studied abroad in South Korea as a college student.