I 1 CASE STUDY. AccorHotels SAT. Kathrein Solutions for Hotels and Guest Houses

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I 1 CASE STUDY AccorHotels SAT Kathrein Solutions for Hotels and Guest Houses

2 I Kathrein I Company Portrait Who we are and what we stand for Kathrein is a leading international specialist for reliable, high-quality communication technologies. We are an innovation and technology leader in today's connected world. Our ability to provide solutions and systems enables people all over the world to communicate, access information and use media, whether at home, at the office or on the road. We cover a broad spectrum: from mobile communication and RFID solutions, to satellite reception, broadband and broadcast technology, to transmission and reception systems in vehicles. As a hidden champion and family-owned enterprise, we have been working on the technologies of tomorrow since 1919. We take pride in our dedicated employees and our passion for customers and quality. Our Solutions BUSINESS SOLUTIONS MOBILE COMMUNICATION SAT BROADBAND BROADCAST AUTOMOTIVE Find out more about us at www.kathrein.com

Case Study AccorHotels I 3 Kathrein provides digital solutions in AccorHotels Room Mercure Hotel Vienna First Long before analogue satellite signals were switched off in 2012, modern cable networks were no longer restricted to merely transmitting radio and TV programmes. Many headend providers, in particular hotels and guest houses, are facing the challenge of meeting their guests demands for digital programme diversity. In view of the fast growing demands for digital programme quality and diversity, it was our goal to quickly implement an innovative and sustainable system, summarises Frank Schedler, AccorHotels Vice President IT and Digitalization Central Europe.

4 I Case Study AccorHotels AccorHotels go digital for the benefit of their guests Cable networks for use in entertainment These days, nearly 85% of our guests use smart phones and the internet to a great extent, explains Frank Schedler. Additionally, the number of digital end devices, such as tablets and laptops, is increasing. Hotels no longer offer entertainment and information in the form of radio and TV programmes alone. Especially in areas of high population density, such as Berlin, Hamburg or Munich, broad band cable networks are at their limits. We want our guests to feel welcome. This means that they should not have to do without the convenience and the use of modern media. For us it is just a matter of course that we make the entire diversity of TV programmes, mostly in HD, and a great bandwidth of international infotainment media, or the access thereto, available to our guests, states Frank Schedler. Installing a fully digitised headend is not only a matter of updating, but also an investment for the future. It supplements the fibre optic infrastructure already available in many AccorHotels with a further important component towards digitisation. Importance of digital end devices in the technical equipment of hotel rooms is increasing Room ibis Hamburg City The partnership with Kathrein is a commercially and technically finely-tuned concept, which already guarantees effective headend operation in as many as 200 hotels in several countries throughout Europe. Frank Schedler Kathrein aboard right from the start The planners of AccorHotels and Kathrein already joined forces in the run up to the analogue switch-off. Ukmedia GmbH from Meissen a company specialised in modern communication technology in hotels - was also called in. It soon became clear what the main challenges and requirements for the newly to be realised infrastructure would be: the highest possible programme and service diversity along with absolute reliability and minimum maintenance requirements. As soon as we started talking with Kathrein, we realised that they would be best suited to meet the criteria and that a long-term partnership on a technological and strategic level would be most promising, adds Frank Schedler. In the past, AccorHotels already relied on the know-how of the Rosenheim based company for installing various headend stations for their hotel brands, such as ibis, Mercure, Novotel and Pullman, throughout Germany. Quality and service requirements fulfilled The task was not an easy one: more than 150 hotels had to be converted and upgraded. It was of greatest importance for us that the Kathrein engineers would contribute their expert knowledge to the entire planning and conceptual process right from the start, as Frank Schedler remembers it. Being the project manager, everybody involved reported to him regularly on the progress. There were never any serious problems. Quite the contrary: the close and successful cooperation helped to overcome numerous obstacles. You need individual solutions to get optimal, technically feasible results from a signal processing and conversion unit, states Frank Schedler. No other technology provider is as good as Kathrein in offering these solutions. What is more, the parts and components themselves are very long-lasting and trouble-free in operation. Frank Schedler points out that, In order to have our high demands for quality, service and sustainability fulfilled,

Case Study AccorHotels I 5 The facts Challenge In the course of digitisation, the growing demand for access to infotainment media challenged the AccorHotels Group to provide a wide range of radio and TV programmes in all of their hotels in Germany. AccorHotels was looking for a partner who offers a combination of high efficiency and outstanding quality in headend technology. In lobby and lounge areas, too, Kathrein technology provides reliable connections Cafeteria ibis budget we like to rely on a well-balanced concept. Taken as a whole it pays off, as we can centralise service and maintenance, minimise on-site operations due to IP integration and can therefore offer short response times and short-term solutions when the hotels call on us. Largest possible programme diversity centralised administration best ease of use At first it was a matter of offering our guests the highest possible number of national and international programmes. We also set great store in having a centralised remote maintenance service and requiring as little programming effort as possible for our units. As the list of programmes was designed and pre-sorted by Kathrein and Ukmedia, it was no longer necessary to do the tedious sorting work in all of our hotels. Last but not least, we needed to be able to rely 100% on our infrastructure. All in all, with systems from Kathrein we consider ourselves to be extraordinarily well-positioned for increasing future requirements, says Frank Schedler, looking back. Solution Together with their partner company Ukmedia, the planners from AccorHotels and Kathrein started to design a networked uniform headend system for all hotels throughout Germany. The well-proven cooperation helped to exactly determine the requirements and to implement customised solutions. All of the signal processing and conversion units were ready for operation according to schedule. Advantages A technically mature unit concept in combination with an exact requirements planning ensured the on-time delivery, smooth installation and the failure-free set-up of the units. Individual solutions helped to skilfully master challenges which arose during the planning phase of the unit. The top quality of the components used, guarantees the highest possible stability of the entire network and low maintenance costs. For the Head of IT Central Europe and his team there is no doubt that they will continue to count upon Kathrein system solutions. We want the best, and from Kathrein we get the best, plus flexibility and international availability. View of a Kathrein headend system

6 I Case Study AccorHotels We wanted to get the most modern, reliable and future-proof technology What were the challenges with respect to signal processing and conversion in hotels? Development in the last few years has been fast and not always predictable. Media offers and data volumes have increased considerably. Today it is downright inacceptable to offer our guests 20 programmes only, regional programmes at worst, at a location Frank Schedler, Vice President IT and Digitalization Central Europe such as Berlin, which is virtually at the heart of Europe. We get more and more international guests, who want to watch the same entertainment and info channels as in their home countries whilst travelling. This is why we attach great importance to offering a wide package with up to 100 programmes, including international programmes and premium contents. Another important issue for the implementation was to design the units so that they could be programmed and updated from a central server to facilitate quick reactions to changes. Last but not least, we intended to make it as simple as possible for our guests to choose and use all the programmes offered. What were the problems you had to Frank Schedler deal with during the planning period and how were they solved? The biggest challenge was to interconnect and manage several hotels from one central server and control point. When we first started planning, this seemed more like wishful thinking than feasible reality. However, the engineers from Kathrein and Ukmedia worked together to deliver a technically mature concept which completely fits into our corporate IT infrastructure and convinced us entirely right from the start. Apart from that, we were more We expect the best with regard to performance, reliability and flexibility of the components that are used in our units. A technology partner like Kathrein, which commits itself to meet customer requirements and provides top quality, guarantees the success of a project. than happy with the LCN programme list they presented us. This list ensures a common programme sorting in all of our hotels and thus minimises time-consuming programming and sorting. A feature, which was developed in cooperation with Kathrein s development department, enables us today to detect malfunctions and changes in the infrastructure pro-actively using IT monitoring software, and to initiate immediate measures. The competence of the Kathrein team enabled us to enhance these IT standards also for both the headend technology and the TV infrastructure. How would you evaluate the collaboration during the course of the entire project? To put it in a nutshell: When we first met, we already realised that we were dealing with absolute professionals. Both our partner companies always had an open ear for our wishes and concerns. As difficult as these might have seemed in

Case Study AccorHotels I 7 About AccorHotels the beginning, we always discussed details and solved problems with a focus on the facts. Quick decision-making and the direct contact between developers and engineers had a very positive impact on solution-finding and fast implementation. In short, they were the best people to do the job. And we definitely plan to employ them again for future projects of that kind. Why did you choose a system solution from Kathrein and would you choose it again? We wanted to get the best solution. This means: the most modern, future-proof technology with the lowest failure rate. In the past, Kathrein products proved that the company can meet these requirements reliably and on a continuous basis. The components are notable for their durability and longevity. We knew what we were getting. It was also important for us to jointly develop solutions that were customised for our business and implement these solutions in an optimal manner. AccorHotels is a group of companies which stands for perfect hospitality while keeping its essential promise: Feel Welcome. In 3,800 hotels in 92 countries, 180,000 employees care for their guests. AccorHotels is the world s leading hotel operator, consisting of two business units. With its two complementary fields of expertise as hotel operator and franchisor (HotelServices) and as owner and investor (HotelInvest), it commits itself to serve clients and partners. In the luxury/upscale segment (Sofitel, Pullman, MGallery, Grand Mercure, The Sebel), the midscale segment (Novotel, Novotel Suites, Mercure, Mama Shelter, Adagio) and the economy segment (ibis, ibis Styles, ibis Budget, Adagio access and hotelf1), AccorHotels is continuously developing its strategies to be able to fully meet the demands of business travellers and holiday makers all over the world. Social responsibility, solidarity and sustainability have been key priorities for the company for nearly 50 years and are being implemented within the framework of the PLANET 21 programme. The Group offers first-class digital services, in particular the online booking portal accorhotels.com and the loyalty scheme Le Club AccorHotels. In Germany AccorHotels is represented by about 340 hotels of the following brands: Sofitel, Pullman, MGallery, Novotel, Novotel Suites, Mercure, Adagio, ibis, ibis Styles, ibis budget and Adagio access. Lobby Mercure Hotel Berlin City

KATHREIN-Werke KG Anton-Kathrein-Straße 1 3 83022 Rosenheim, Germany Phone +49 8031 184-0 Fax +49 8031 184-52360 www.kathrein.com sat@kathrein.de 99812804/0,25/0517/MMG subject to change.