Kempinski Hotels concluded 2013 with a further increase of its financial results, showing an improvement of 4.9 percent on the company's record-breaking 2012 EBITDA. This result is further proof that the group's long-term business strategy of focusing on its core business, the management of luxury hotels, is paying off. "Despite various external influences in different key markets, such as political instability in some countries, we were able to further improve the best result in the history of the company," states Reto Wittwer, Kempinski's President and CEO. "This achievement underlines once more our management expertise and our successful work."

"With 1.1 billion Euros of revenue in 2012, our hotels passed the billion mark for the

first time," states Wittwer. "In 2013 we were able to increase the revenue by almost an additional one million Euros. So we have seen continuous growth in revenue and financial results since 2009."

The group's Gross Operating Profit (GOP) saw an organic growth of 7.3 percent for a

total increase of 8.5 percent, in a competitive environment. Room revenue alone increased by 8.6 percent. In Germany, Kempinski's most important feeder market, revenue grew by 7.2 percent and RevPar (revenue per available room) improved by 11.3 percent. Contrary to the worldwide trend, average occupancy at Kempinski's German hotels increased by more than 3 percent in 2013.

In worldwide management fees, Kempinski reached a further growth of 6.6 percent.

Stronger focus on the future market of Africa – Mega hotel project in

China

In line with its development strategy, Kempinski will strongly focus on Africa in 2014.

The company sees strong growth opportunities due to the continuously developing economic strength in the African continent. China, where Kempinski has had a joint venture with the Beijing Tourism Group (BTG) for more than two decades, also plays a vital role this year, with the opening of the exceptional Yanqi Lake project. Kempinski plans to open 12 hotels in 2014: five in Africa, four in China, one in Saudi Arabia, one in Lebanon and the Du Parc Kempinski Residences in Switzerland.

"Africa is THE future market for us, both from a strategic and a financial point of view,"

says Reto Wittwer. "Important key destinations which play a vital role for the economic development of the continent are our target there. As we were industry pioneers in Russia and China, we also want to be pioneers in enhancing the luxury hotel market in Africa and set new standards in quality, service and luxury. We are focusing particularly on sub-Saharan Africa, which has seen exceptional economic growth for several years now." New hotels in the Democratic Republic of Congo, Rwanda, Equatorial Guinea and Ghana, as well as a third hotel in Egypt, are proof of the group's ambitious expansion strategy in the African continent. One of the company's most spectacular projects, which could only become a reality thanks to Kempinski's management expertise and activities in Africa at an early stage, will be the Grand Hotel Oyala Kempinski in Equatorial Guinea. The local government is in the process of building its new future capital city, over a surface of 81,500 m2, soon to become home to 160,000 to 200,000 people. In the middle of the tropical rain forest, the outstanding luxury hotel will offer 450 rooms and suites, 50 individual villas and its own 18-hole golf course. "With the Grand Hotel Oyala Kempinski, we will be the first European luxury hotel group to be present in the future capital of Equatorial Guinea," explains Wittwer.

In China, the excellent long-standing cooperation with the BTG is also bearing fruit:

Europe's oldest luxury hotel group was able to sign a management contract for one of the largest and most important hotel projects in China: Yanqi Lake, a mega project, which is designed to host big conferences and conventions on the outskirts of Beijing, and is due to open over the summer. "Similar to Emirates Palace in Abu Dhabi, which is also owned by the State, we will run the so to speak 'official guest house' of the Chinese government," states Reto Wittwer. Only 45 kilometres from Beijing International Airport, the spectacular hotel complex is located by the beautiful Yanqi Lake. It will comprise the futuristically designed, sunrise-shaped Yanqi Lake Hotel Kempinski with 306 rooms and suites and the Yanqi Lake State Guest House – managed by Kempinski, with 111 rooms and suites. Additionally, 12 boutique hotels, with a total of 178 rooms on a private island, will also be part of the project. The Yanqi Lake project also stands out as it offers more than 14,000 m2 of space for events and a conference centre with 8,277 m2, a marina and an 18-hole golf course. In addition to Yanqi Lake Hotel and the State Guest House, the openings of Kempinski Hotel Changsha and Phoenix Hotel Dalian – managed by Kempinski, both in China, are also planned for 2014.

Further advances in the Food & Beverage business

"Our vision is to be the unchallenged leader in both the hotel and Food and Beverage

businesses and to provide our guests with outstanding gastronomic experiences," says Reto Wittwer, explaining the Kempinski's F&B strategy.

All Kempinski hotels have introduced their own "signature dish", a culinary trademark for

which the hotel is famous. Çirağan Palace Kempinski Istanbul, for example, serves the Tugra Testi Kebab, a typical dish from the Ottoman Empire; at Hotel Atlantic Kempinski Hamburg, it is the Lobster Bisque, a dish which was created in 1909 and still is very popular. Hotel Adlon Kempinski Berlin proudly serves a local classic: the Curry sausage, made from Havelland pork and served with a sauce based on a secret recipe; a further example is Kempinski Hotel Haitang Bay Sanya, with its special Hainan Chicken.

Kempinski pulled off a very special coup by exclusively engaging wine expert Paolo

Basso. The Swiss-Italian was awarded the title of "Best Sommelier of the World" last year by the renowned Association de la Sommellerie Internationale (A.S.I.). Basso will consult and support Kempinski with his expertise to create an exclusive wine selection for all hotels of the group and other specific concepts in line with the company's F&B strategy.

Another highlight in the context of the F&B strategy is the Kempinski Dessert of the

Year, which was awarded for the third time. This year for the first time, around 100 journalists and 20 hotel directors judged the desserts in a blind tasting during the ITB. The winning dessert comes from Bangkok and has the enticing name "Siam Passion". It was created by Alfred Merkel, Pastry Chef, and his team at Siam Kempinski Hotel Bangkok. The dessert was inspired by the beauty of the local Thai culture and Alfred Merkel's passion for tropical fruits; it combines passion fruit, coconut, mango and banana with the European style of the pastry chef. The Dessert of the Year 2014 will be available in all Kempinski hotels worldwide. In total, more than 60 desserts were submitted by the hotels. Besides the winning dessert from Bangkok, the desserts of Hotel Adlon Kempinski Berlin, Hotel Vier Jahreszeiten Kempinski Munich, Grand Hotel Kempinski Geneva and Palais Hansen Kempinski Vienna made it to the final selection. The selection of the Dessert of the Year was supported by Moët Hennessy and Valrhona Chocolate for the first time.

Kempinski's hotel openings in 2014

Kempinski Hotel Fleuve Congo KinshasaTakeover and opening on March 01,

2014

Located in the Democratic Republic of Congo's capital city, in Gombe district by the

Congo River, a half-hour drive from Kinshasa's N'Djili International Airport, Kempinski Hotel Fleuve Congo Kinshasa features 237 elegant rooms and suites, which showcase panoramic views of the city, the Congo River and Brazzaville, the capital of Congo. The hotel also features three restaurants and three bars, five fully-equipped function rooms, an auditorium seating 300, two floodlit outdoor tennis courts, an outdoor swimming pool, a fitness centre and billiard and snooker rooms.

Burj Rafal Kempinski RiyadhSoft-opening March 02, 2014

Kempinski's first hotel in Saudi Arabia, Burj Rafal Hotel Kempinski Riyadh is located

within the city's highest vertical compound, which includes serviced apartments, offices and state-of-the-art business facilities, with panoramic views of the prominent King Abdullah Financial District. Set to become the leading luxury hotel in Riyadh in both leisure and corporate segments, Burj Rafal Hotel Kempinski Riyadh is the closest luxury hotel to King Khalid International Airport, and boasts 349 luxury rooms and suites, a Tŭgra restaurant serving traditional Ottoman food, an all-day dining international Grand restaurant, the El Capitolio cigar lounge and three cafes. Conference facilities, a ballroom for up to 2,000 people, two spas, including a luxurious Resense spa - the first one wordwide branded as Resense, and separate wellness centres for ladies and gentlemen are other notable features of this landmark property. Guests will also be able to indulge in retail therapy at the hotel's carefully selected luxury boutiques.

Hôtel des Mille Collines managed by Kempinski, KigaliOpening Q2 2014

Located in the Rwandan capital, Kigali, and made famous in the movie "Hotel Rwanda",

Hôtel des Mille Collines managed by Kempinski features 112 rooms and suites, meeting and conference facilities, including a conference room for 120 people, an outdoor swimming pool, six boutiques and a fitness centre.

The name of the hotel translates as 'a thousand hills', after the breath-taking

landscape surrounding the city. Located at the heart of Kivuyo's business district and a 20-minute drive from Kigali International Airport, Hôtel des Mille Collines managed by Kempinski is close to Kigali Convention Centre, Inema Art Centre and Kigali Memorial Centre.

Akagera National Park, known for its variety of wildlife and over 500 different species of

birds; Volcanoes National Park, which attracts tourists from all over the world for its population of mountain gorillas; and Lake Kivu, one of the African Great Lakes and one of the 20 deepest in the world, are all within a twohour drive from the hotel.

Grand Hotel Oyala KempinskiOpening Q2 2014

Set in a lush tropical rainforest in Equatorial Guinea's future new capital of Oyala, Grand

Hotel Oyala Kempinski will feature 450 rooms and suites. In addition, 50 private four- bedroom villas with fully equipped kitchens and served by its own staff will also be available. The hotel is set to become one of the most iconic destinations in West Africa, with some of the most modern conference facilities in the region, including a banquet room for up to 1,200 guests. The hotel complex will house two bars, a café, six restaurants, including Italian, Spanish and African cuisines, as well as a deli, a Club House and a classic allday- dining restaurant. An 18-hole golf course, a retail gallery, a night club, a wellness area including a Kempinski The Spa, and a private clinic are other notable features of this property.

Kempinski Yanqi Lake hotel project(Yanqi Lake Kempinski Hotel Beijing and Yanqi Lake

State Guest House - managed by Kempinski)Opening gradually from Q3

Located 60 km north of Beijing's city centre, alongside the picturesque Yanqi Lake and

boasting panoramic views of Yanshan Mountain and the Mutianyu stretch of the Great Wall, Kempinski Yanqi Lake hotel complex is the group's largest property in China. The compound includes Yanqi Lake Kempinski Hotel and Yanqi Lake State Guest House – Managed by Kempinski. The complex is designed to host high profile government conferences, and is set to become the location of choice for local and international large scale meetings in the region. The rising-sun shaped Yanqi Lake Kempinski Hotel features 306 rooms and suites with magnificent views of its picture-perfect surroundings, and a total of 14,069 m2 of meeting space, including the 8,277-square-metre Conference Centre, which offers some of the largest high-tech meeting facilities in mainland China. Yanqi Lake State Guest House - managed by Kempinski will feature 111 rooms and suites, and 12 individual boutique hotels of varying sizes, each reflecting aspects of Chinese culture. In total, the complex will feature four ballrooms, 23 meeting rooms and three business centres. Two Kempinski The Spas, a marina, 18- hole golf course, recreational and fitness facilities, Kids Club, private karaoke rooms and 14 restaurants and bars are further notable features of the property.

Kempinski Hotel ChangshaOpening Q3 2014

Located in downtown Changsha, just a short drive from the local train station and

Changsha Huanghua International Airport, the hotel will feature 408 rooms and suites, six restaurants and bars, extensive conference facilities including a 1,320 m2 ballroom, wellness and fitness centre, and a swimming pool. Changsha recorded history can be traced back 3,000 years, and the city is known for its love of gastronomy. True to the city's love of food, Kempinski Hotel Changsha will offer guests unique culinary concepts.

Phoenix Hotel Dalian - managed by KempinskiOpening Q3 2014

Located next to a newly built sports complex in the outskirts of the city, Phoenix Hotel

Dalian - Managed by Kempinski will feature 427 luxurious rooms and suites and four restaurants and bars. The sports complex next to the hotel comprises a state-of-the-art stadium seating 40,000 people, designed to host large sport events, as well as an arena with 18,000 seats for concerts and indoor sports.

Du Parc Kempinski Private ResidencesOpening Q3 2014

With the opening planned for the second quarter of 2014, Du Parc Kempinski Private

Residences offers 22 luxury serviced residences available for sale, varying in size from a 200 m2. Nestled amongst the UNESCO-protected vineyards of Lavaux, with breath- taking panoramic views of the Alps and Lake Geneva, the residences are set within a flawlessly renovated historic building from 1906. Du Parc Kempinski Private Residences offers residents a wellness centre with spa and two swimming pools, a Davidoff Cigar Lounge with temperature-controlled humidors, a state-of-the-art home cinema, a private wine cellar, a fully-equipped business centre, and century-old private gardens, carefully and lovingly re-envisaged to complement the building's Belle Époque feel. Du Parc Kempinski Private Residences is an hour's drive from Geneva and Geneva's International Airport, just 30 minutes from private airports in Lausanne-Blécherette and a ten-minute flight from Sion airport. A helipad is also available.

Kempinski Hotel Gold Coast City AccraOpening Q3 2014

Kempinski's first hotel in Ghana will feature 269 rooms and suites and will bring a new

level of contemporary luxury hospitality to Accra.

Ideally located in the heart of the city, Kempinski Hotel Gold Coast City will boast the

largest rooms in Accra in addition to two restaurants, a lobby lounge with outside seating, a cocktail bar, a pool lounge, 1,700 m2 of meeting and banqueting facilities, including the biggest ballroom in the city, and 7,000 m2 of retail space. The hotel will also offer an extensive Resense spa (opening early 2015), featuring luxurious wellness and fitness facilities, a hammam, relaxation areas and a dedicated yoga studio.

Royal Maxim Palace Kempinski CairoOpening Q4 2014

Located a short drive from Cairo International Airport, Royal Maxim Palace Kempinski

will have 247 rooms and suites and brings the highest level of luxury service to New Cairo. The hotel will offer guests a wide range of innovative restaurant concepts featuring regional and international cuisine. Royal Maxim Palace Kempinski will also feature a 1,900 m2 Resense spa, a retail gallery, a club and extensive business and conference facilities including a ballroom with a capacity of over 3,000 guests.

Summerland Resort Kempinski BeirutOpening Q4 2014

Set on the beautiful coastline of Lebanon and just outside the city of Beirut,

Summerland Resort Kempinski will invite guests to enjoy exquisite cuisine, discover pristine beaches, and indulge in leisure activities. A short drive away from Beirut's Rafic Hariri International Airport, the hotel will feature 153 rooms and suites, two restaurants and various bars, including a poolside bar and a Marina Club, and conference facilities.

About Kempinski

Created in 1897, Kempinski Hotels is Europe's oldest luxury hotel group. Kempinski's rich heritage of impeccable personal service and superb hospitality is complemented by the exclusivity and individuality of its properties. Today the Kempinski Group operates 82 hotels and residences in 34 countries and currently has more than 25 prestigious projects under development around the globe. Each five-star hotel reflects the strength and success of the Kempinski brand without losing sight of its heritage; each one imbues the quality guests have come to expect from Kempinski while embracing the cultural traditions of its location. The portfolio comprises historic landmark properties, award-winning urban lifestyle hotels, outstanding resorts and prestigious residences. Kempinski is a founding member of the Global Hotel Alliance (GHA), the world's largest alliance of independent hotel brands. www.kempinski.com www.ghadiscovery.com