Report CSR Fuerte Hoteles 2013 (ENG)

The simple fluttering of a butterfly’s wings can change the world A Chinese proverb says that “the fluttering of a butterfly’s wings can be felt on the other side of the world”. It can be gleaned from this philosophy that any act that we carry out, or decision that we make can change everything. This is why Fuerte Hoteles has always placed such an emphasis on protecting the environment, culture and people through our Corporate Social Responsibility policy.

What do you do to care for your environment?

We will tell you what we do.

CORPORATE SOCIAL RESPONSIBILITY REPORT 2013

CONTENTS IntroducTION 2 LETTER FROM THE CHAIR AND BOARD 3

1. WHAT MAKES FUERTE STRONG

4

2. RESPONSIBLE COMMITMENT

6

1.1. SELF-PORTRAIT

2.1. STAKEHOLDERS 2.2. RESPONSIBLE RECOGNITIONS 2013 2.3. VALUES: CODE OF ETHICS 2.4. CSR INITIATIVES

5

7 8 8 9

3. ECONOMIC PERFORMANCE 10 3.1. ECONOMIC AREA INTERVIEW 3.2. OUR CSR STRATEGY 3.3. MEASURING QUALITY 3.4. QUALITY AREA INTERVIEW 3.5. SUPPORTING LOCAL SUPPLIERS 3.6. MANAGEMENT SYSTEMS 3.7. COMMITMENTS 3.8. STRATEGIC OBJECTIVES

11 12 13 14 15 15 16 17

4. ENVIRONMENTAL PERFORMANCE

18

4.1. INNOVATION 4.2. RESPONSIBLE MEASURES IMPLEMENTED 4.3. LEARNING ABOUT OUR IMPACT 4.4. ENVIRONMENTAL OBJECTIVES

5. SOCIAL PERFORMANCE

5.1. SOCIO-OCCUPATIONAL CONDITIONS 5.2. WORKING ENVIRONMENT 5.3. fundación fuerte 5.4. SOCIAL AREA INTERVIEW 5.4. SOCIO-CULTURAL PROJECTS

19 20 26 28

29 30 31 32 33 34

6. LETTER OF FAREWELL

35

7. GRI INDICATORS TABLE

36

INTRODUCTION For the fifth consecutive year we are presenting the Fuerte Hoteles Corporate Social Responsibility report, in which we account for our economic, environmental and social performance during the 2013 financial year.

This year we have redoubled our efforts more than ever to raising awareness of the importance of everybody’s involvement in the fight for a more sustainable world.

Small actions taken by each and every one of us, at both an individual and corporate level, can lead to major global changes to the health of our environment. Based on this, we have decided to take on board the Chinese proverb “the fluttering of a butterfly’s wings can be felt on the other side of the world”, as already mentioned on the cover page of this document.

Furthermore, butterflies are excellent bio-indicators for the condition of natural ecosystems, as any minute alteration in their natural environment causes an almost immediate reflex in their life cycle; these airborn insects are animals that are particularly sensitive to climate change.

For this reason, we have decided to use their image in this report to represent how delicately Fuerte Hoteles cares for our environment, and what this means in terms of raising awareness of society where our establishments operate.

FUERTE HOTELES, 57 YEARS WORKING WITH RESPONSIBLE TOURISM. Discover previous editions of the Fuerte Hoteles CSR report here.

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 2

LETTER FROM THE CHAIR

CORPORATE GOVERNANCE

Dear friends,

The Board of Directors is the highest governance organisation at Fuerte Hoteles, made up of the Luque-García family and headed by Mrs. Isabel Garcia Bardón.

For yet another year running I have the honour of presenting to you our annual corporate responsibility report for the year 2013, which accounts for the achievements and practices of Fuerte Hoteles to further sustainable tourism from social, environmental and economic points of view.

As you will see in this report, and despite the economic situation that we are experiencing, over the past year we have continued to invest in improving our environment, in line with our commitment to society that we have maintained for more than half a century.

Our hotel chain, with 100% Andalusian capital, has returned to the ranking of the 100 most sustainable hotels in the world thanks to the TUI Environmental Champion prize, awarded every year by one of the largest European tour operators. It is a recognition that once again endorses our sustainable hotel management model.

This was not the only happy moment, as Fuerte El Rompido received the Huelva Business of the Year Prize, awarded to companies that stand out due to their CSR management. This hotel has led some of our major environmental initiatives, such as the launch of our electric car rental service. Through this scheme, Fuerte Hoteles has become the first Andalusian chain to promote this model of sustainable mobility.

Another major topic of this document examines our efforts to inform and raise awareness in society, ensuring that our stakeholders get the message that a more sustainable world is only possible with everybody’s efforts. To do this, we have set various types of awareness campaigns in motion, as will be explained further on.

I would also like to mention work that we do at the Fundación Fuerte for the inclusion of groups at risk of social exclusion, with a particular emphasis on children, as well as to promote culture at our destinations.

Lastly, I would like to take advantage of this opportunity to thank our employees for their efforts and for knowing how to adapt themselves to circumstances in times of crisis while always saving a smile for our guests.

Fond Regards, Isabel Mª García Bardón, Chair of El Fuerte Group

All of her children work under her as board members: Isabel, José, Salvador, Victoria and Javier Luque. All have voting rights in this organisation that meets quarterly and makes decisions by consensus.

Under the board of directors is found the organisation known as the executive committee, made up of José, Salvador and Javier Luque, meeting on a weekly basis to ensure that targets are met. In turn, the Hotel Management Committee, made up of directors from each area of Fuerte Hoteles, is responsible for executing the strategic plan’s guidelines.

MANAGEMENT COMMITTEE 2013 > General and Commercial Management: D. José Luque > IT Director: D. Miguel Ángel López

> Director of Finance, Legal and Fiscal Services:

D. Antonio Fernández > Human Resources Director: Dª María Ceballos > Deputy Commercial Director: D. Javier Sevilla > Hotel Operations Director: D. Alonso Aguilar > Internal Auditor: D. Jesús Sánchez FUERTE HOTELES Corporate Social Responsibility Report 2013 y 3

1. WHAT MAKES US STRONG Fuerte Group comprises various divisions. Being primarily a hospitality business, its main headquarters are located in Marbella, Málaga, where two of the chain’s hotels are currently located and where its founder opened his first establishment, the Fuerte Marbella hotel in 1957.

Fuerte Hoteles

fundación fuerte

FUERTE HOTELES HEADQUARTERS Avda. El Fuerte s/n.

29602 Marbella, Málaga Tel:+34 952903003 www.fuertehoteles.com tecma@grupoelfuerte.com

This foundation brings together all of the group’s main sociocultural activities with the aim of improving the social, economic and environmental conditions of communities where the chain’s businesses are located.

Hotels: 8 hotels in Andalusian and majority shareholdings in 2 hotels in Montego Bay (Jamaica) Average no. of employees during 2013: 510 Turnover 2011: 36 million euros.

Motto: Caring for people and the environment.

Chair: Isabel Mª García Bardón Managing Directors: José, Salvador and Javier Luque García

Cultivation of olives in Estepa (Seville), involving development of sustainable and traditional agriculture by applying modern production techniques.

AGRODESARROLLO

Fuerte Hoteles is a limited company with one hundred percent Andalusian capital. It specialises in holiday tourism and is well known for the sustainable management of its hotels found all over Andalusia.

A group of hotel design and maintenance service provision companies, and other companies made up of We Project and We Resolve.

WE COMPANY

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 4

01.

1957 Fuerte Marbella (Marbella, Málaga)

First Spanish leisure hotel awarded UNE-EN ISO 9001 certification 263 rooms. 4 star

02. 1999 Fuerte Conil (Conil de la Frontera, Cádiz)

First hotel in Spain awarded a certificate for its integral quality and environmental management system.

250 rooms. 4 star

03.

04.

2001 Fuerte Miramar (Marbella, Málaga)

226 rooms. 4 star

2002 Fuerte Grazalema (Grazalema, Cádiz)

77 rooms. 4 star

05. 2004 Fuerte Costa Luz (Conil de la Frontera, Cádiz) 219 rooms. 4 star

06. 2005 Fuerte El Rompido (Cartaya, Huelva) 300 rooms. 4 star

06.

07. 2008 Fuerte Calaceite (Torrox-Nerja, Málaga)

03. 07.

04.

08.01.

05.

02.

1.1. SELF-PORTRAIT

57 years of

experience

87 apartments. 3 keys

08.

7hotel

establishments

Over

499,000 guests

2010 Fuerte Estepona (Estepona, Málaga)

210 rooms. 4 star

Over

500 employees

Turnover of

€39,862,000

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 5

2. RESPONSIBLE COMMITMENT Environmental commitment has always been part of the management policy of all companies forming part of the El Fuerte Group since the group’s founder, Mr. José Juque Manzano opened its first hotel over 50 years ago.

One of the hotel businesses with the best CSR reputation in Spain There are still not many companies nationwide that put so much effort into encouraging and maintaining responsible behaviour. This is why year after year we obtain recognition for all our efforts, which in turn encourage us to continue maintaining our commitment to sustainability.

According to the reputable magazine “Hosteltur” specialising in the hospitality business, since 2012 (the publication year of the study) Fuerte Hoteles has been on a list of the most sustainable hotels in the world drawn up by the management of the Nebrija-Santander Faculty of Corporate Social Responsibility.

OUR MISSION

To be a family company with a vocation to develop and provide fundamental guidelines to profitable hotel and property businesses, committed to the responsible development of people and their environment. We seek coherence of the business, its management team and professional coexistence (policies) during day-to-day activities and in its institutional configuration (governance).

Our sustainable development strategy ANYTHING THAT CAN BE MEASURED CAN BE MANAGED. This is how we define our idea of

CSR in our organisation and it is how we have achieved all of our sustainability goals set for ourselves throughout our history.

Being responsible is much more than just a philosophy for Fuerte Hoteles. It goes beyond words, as it is an objective reality that can be clearly measured by indicators showing the efficiency of sustainable management initiatives, based on the following three fundamental principles:

> Back to origins. Ensure that cultural and social environments are maintained and developed

OUR VISION

To be a leading business in responsible hospitality, understood as an attitude of sensitivity towards people (satisfaction of shareholders, customers and employees) and the environment (local communities and the environment), with a presence in Spain.

> Reduced pollution. This responsibility can be measured using indicators of the environmental impact of our activity, such as ecological and carbon footprints (among other indicators). > Ethical and transparent management. Fight for ethical and transparent management through the communication of guest satisfaction, working environment and budgetary results.

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 6

01.

ENVIRONMENT NOT-FOR-PROFIT ASSOCIATIONS - WWF Spain: Participation in “Earth Hour”.

- Fundación +Árboles CITIZENS AND GUESTS Fuerte Hoteles’ management policy includes promoting environmentally friendly activities that contribute to the development of communities where its hotels are located.

EMPLOYEES 90% of Fuerte Hoteles’ employees are local people, all of whom are involved in all corporate sustainability policies.

SUPPLIERS Before forming part of our database, all of our suppliers must sign a declaration stating that they are environmentally friendly and implement good environmental practices

GOVERNMENT Town councils and local, regional and central government.

agencies the world over, as well as with suppliers of services and products necessary for running a tourism business.

PARTNER COMPANIES commercial relationship with tour operators and other tour

SHAREHOLDERS

2.1. STAKEHOLDERS

02.

BUSINESS ASSOCIATIONS - CEHAT, Spanish confederation of hotels and tourist accommodation.

Association (since 1989), where it is one of more than 90 founding members.

- HORECA, hospitality sector association in the province of Cádiz, since 1977.

- Family Business Faculty (San Telmo), since the year 2000.

SOCIAL ENVIRONMENT - AEHCOS ever since its foundation in 1977, Fuerte Hoteles has formed part of the Costa del Sol Association of Hotel Businesses.

- CIT Marbella (Marbella Centre for Tourist Initiatives), since its foundation in 1989.

- Andalusian Family Business

STAKEHOLDERS

SPECIALIST FORUMS, UNIVERSITIES AND TECHNOLOGY CENTRES - Forums specialising in quality and environmental management, marketing, energy efficiency and tourism, etc.

LOCAL COMMUNITY - Citizens: Fuerte Hoteles ensures the development of inhabitants of areas around its hotels by attempting to encourage their cultural values.

- Employees: the chain’s recruitment policy gives priority to hiring people from the hotel’s local area.

- Universities: conferences at various universities, such as University of Málaga.

02.

ECONOMIC ENVIRONMENT

SUPPLIERS FUERTE HOTELES Corporate Social Responsibility Report 2013 y 7

2.3. VALUES: CODE OF ETHICS Always with the principles of the World Tourism Organisation’s Global Code of Ethics for Tourism in mind (a fundamental reference framework for responsible and sustainable tourism), Fuerte Hoteles has implemented a code of ethics through which the fundamental values of the business are transmitted and promoted to guests, employees and suppliers.

Principles: 1. We exist to provide satisfaction to our guests.

2. People are the fundamental value of our business.

3. We show our respect for others by being environmentally friendly.

4. Good employees exist when good bosses exist.

5. We all have the ability to improve as individuals and professionals; this being the case, it will be good for our work.

6. Participation and fair treatment encourage commitment to the company.

7. Being responsible means complying with regulations and procedures and meeting targets.

8. Diversity is one of the main sources of wealth; respecting diversity leads to healthy and mature relationships.

9. Good conduct must be acknowledged publicly, in an exemplary manner and by using all means available.

10. Discretion increases trust, improves relationships and strengthens our image.

11. An organisation’s strength largely depends on the loyalty of its personnel.

12. Keeping personal and professional lives separate within the company will encourage us to do our jobs.

10th award ceremony of the Huelva business of the year prize. CSR prize awarded to the Fuerte El Rompido hotel

2.2. RESPONSIBLE RECOGNITIONS Fuerte Conil-Costa Luz and Fuerte Grazalema, recognised as being among the seven best hotels in Spain STUDIOSUS QUALITY AWARD. Fuerte Calaceite Apartments, given the ZOOVER AWARD. Users of the travel website Zoover have awarded this prize through their opinions and comments.

TOP HOTEL 2013 Prize, which the HolidayCheck travel website awards to hotels rated highest by its users. Fuerte Conil-Costa Luz, recognised as the best place to stay on the Costa de la Luz. TUI UMWELT CHAMPION (ENVIRONMENTAL CHAMPION) Prize, with which the German tour operator recognises tourist establishments worldwide that are most committed to the environment. Fuerte Conil, Fuerte El Rompido and Fuerte Marbella TRAVELLIFE SUSTAINABILITY SYSTEM: GOLD LABEL AWARD. A gold medal in this sustainability system thanks to the measures applied by the Fuerte Conil, Fuerte El Rompido and Fuerte Marbella hotels.

TRIPADVISOR CERTIFICATE OF EXCELLENCE. Fuerte Estepona, Fuerte El Rompido, Fuerte Marbella, Fuerte Miramar, Fuerte Conil-Costa Luz, Fuerte Calaceite and Fuerte Grazalema have received the certificate that recognises the tourist establishments that are best rated by users of this travel website.

Huelva CSR business of the year prize. Awarded by the Huelva foundation of business owners.

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 8

2.4. INDEX OF CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES

ENVIRONMENTAL INITIATIVES > Bio-climatic and environmentally friendly construction > Energy efficiency > Savings manual > Calculation and monitoring of ecological footprint and carbon footprint > Management and separation of waste at origin > Control of atmospheric emissions > Effluent control > Procurement policy with sustainable criteria > Innovation 2013 > Promotion of local, ecological and seasonal gastronomy > Transparency and communication: > Guest information in receptions and onthe Fuerte Hoteles website about environmental aspects (energy consumption, ecological footprint and carbon footprint, etc.) > “Fuerte Experiences” programme of responsible activities > Environmental conservation activities > Active promotion of sustainable development

SOCIAL INITIATIVES > Marriage cheque > Help with buying school books > Help with childcare fees > Ongoing training > Advances and loans to staff > Discounts on accommodation and services at hotels of the chain for employees > Improvements to partial retirement > Diversity management > Gender equality > Working environment surveys > Performance assessments and development conversations > Social and cultural projects run by the Fundación Fuerte > Integration of groups at risk of social exclusion > Management of social networks > Euro responsible project

ECONOMIC INITIATIVES > Economic performance programs and policies: good governance > Application of procedural management systems > Identification of and dialogue with stakeholders > Application of sustainability indicators > Responsible marketing > Guest satisfaction policy and management > Creation of partnerships with suppliers > Supplier policy > Promotion and support for local suppliers > Transparent communication

CARING FOR PEOPLE AND THE ENVIRONMENT

COMMITTED TO LOCAL PEOPLE AND DEVELOPMENT

SUSTAINABLE DEVELOPMENT OF THE CORPORATE ECONOMY

Most noteworthy initiatives that have helped to tackle proposed environmental challenges.

Social advantages for El Fuerte group employees and tools for developing their activities.

Principle measures that allow the company to meet its economic goals while making possible its sustainable development.

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 9

3. ECONOMIC PERFORMANCE To ensure that a sustainable economic development model is also achieved, Fuerte Hoteles uses a management by objectives (MBO) model that allows results and opportunities for improvement to be continuously and effectively established, based on responsible hotel operation.

During 2013, this allowed net turnover from the hotel business and complementary activities to increase by 8.83% compared to the previous year, going from 36.6 million euros in 2012 to 39.8 million euros in 2013. Before tax profits have remained at 5.7 million euros, the same as the preceding year.

Fuerte Hoteles has been able to maintain its 2013 statement of results as shown on the following summary table:

Fuerte Hoteles statement of results for hotel business and complementary activities (thousands of euros)

2012

2013

Net turnover Other operating revenue

36.687 1.339

39.862 1.846

Total Income Supplies Staff costs Other operating costs Results due to disposals and other results

38.026 4.903 9.536 12.343 135

41.708 4.878 10.329 16.134 472,8

EBITDA Amortisation

11.109 4.803

10.839,8 5.162

EBIT Financial result

6.306 -559

5.677,8 -1,6

EBT (Earnings Before Tax) 5.747

5.676,2

Results of hotel business and complementary activities, with income and expenditure of all hotels and apartments, with the exception of Fuerte Estepona (due to its processing method), which will be incorporated in 2013

NET TURNOVER

ebitda

ebt

EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization.

Therefore, this is the result of the business prior to interest, taxes, depreciation and production amortizations. EBITDA measures the company’s ability to generate profit by considering only its production activity.

Million Euros

EBT: Earnings before taxes.

Million Euros

Million Euros

Increase in the company’s net turnover or business volume when compared to the previous financial year.

ebit

EBIT: Earnings before interests and taxes.

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 10

3.1. ECONOMIC AREA INTERVIEW

Antonio Jesús Fernández, Finance Director Antonio is an economist and as Finance Director he has been leading the finance department of the El Fuerte group for more than 20 years, providing support with everything related to administrative management, accounting, finance, treasury, tax, auditing, management control and procurement management.

What does working for Fuerte Hoteles mean to you?

The amount of time I’ve been working for the company says it all. I have been here for twenty years and I’ve never felt the need to make a change. I have grown as a person and as a professional here. Throughout these years at Fuerte Hoteles I have always found new projects and exciting new career challenges, allowing me to learn, participate and contribute.

How do you ensure that a small chain can make such large financial investments in corporate social responsibility objectives right in the middle of a crisis?

The economic crisis is a scenario that puts all players to the test and highlights the best and worst aspects of companies.

Generally, numbers take on the greatest importance in a scenario like this one, and CSR tends to take the biggest hit.

It is true that it shouldn’t be forgotten that “economic responsibility” lies at the base of every company. We cannot talk about CSR without profitability because no company could subsist in that way; this has forced us to make changes to almost all areas of the company. It is also true that not only have many companies maintained their CSR policies, they have strengthened them right in the middle of the crisis.

In our case at Fuerte Hoteles, CSR is not a fashion that we are interested in following; fashions come and go, but CSR now forms part of our culture and values. In modern day society, the environment, ethics and social responsibility have taken on so much importance that the fact that a company integrates CSR into its strategy is an economic value in itself. In the long term it brings value and reputation to the brand and puts it in a better position on the market.

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 11

ASPECTS THAT SET FUERTE HOTELES APART Friendly, family service Location Nature Hotels close to protected natural spaces and close to historical city centres 260 km of coastline with 76 beaches Corporate social responsibility Local, healthy and ecological gastronomy Culture and leisure Popular traditions Practice of sport in contact with nature Responsible hotels with a corporate social responsibility policy incorporated into their business models “Fuerte Experiences” programme. Complementary activities that will turn our guests’ stays into unique experiences High quality breakfasts

3.2. OUR CSR STRATEGY IN TWO WORDS: RESPONSIBLE TOURISM Taking as a reference the Brundtland Report’s definition of sustainable development, the World Tourism Organization defines sustainable (or responsible) tourism in the following manner: ”Sustainable tourism development meets the needs of present tourists and host regions while protecting and enhancing opportunity for the future. It is envisaged as leading to management of all resources in such a way that economic, social, and aesthetic needs can be fulfilled while maintaining cultural integrity, essential ecological processes, biological diversity, and life support systems.”

This theoretical definition of a tourist development strategy seeks a balance between economic, socio-cultural and environmental impacts of the tourist business, and forms the basis of all management policies implemented by the company. This is why the chain’s hotels are known as Responsible Hotels.

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 12

3.3. QUALITY MEASUREMENT

FIRST OBJECTIVE MEET GUEST EXPECTATIONS

01

Data source: reviewpro

GUEST SATISFACTION - Online surveys after check-out - Online reputation (Travel communities, specialist websites, social networks, etc.)

- Mystery guest audits

89,3%

85,6%

ROOM CLEANLINESS

FOOD

82,9% PRICE-QUALITY RELATIONSHIP

SATISFIED GUESTS.

In 2013 we were able to increase the guest satisfaction rate from 85,60% to

88,3%

81,5%

02

The real pulse of the business management system’s status is taken with the support of IT tools and on-site audits. Furthermore, the fact that these are conducted continuously allows for reliable control and ensures a faster response time to any deviations that may be detected.

03

RECEPTION

ENTERTAINMENT

QUALITY CONTROL TOOLS

89,4%

90%

LOCATION

No. of satisfaction surveys given Data source: internal satisfaction surveys

5.550

Number of opinions about the chain Data source: reviewpro

7.341

Online reputation satisfaction rate: Data source: reviewpro

88,3%

Net promoter score (NPS): Data source: Internal satisfaction surveys COMMUNICATION WITH GUESTS OVER SOCIAL NETWORKS When used as a means of communication and contact, social networks represent a very rich source for daily and instantaneous dialogue with guests and followers of the Fuerte Hoteles brand. In 2013, this communications strategy has achieved a community of over 10,000 followers that continues to progressively increase.

47,04%

NPS (Net Promoter Score) represents the percentage of promoters (giving a score of 9 or 10 to the question), minus the percentage of detractors (giving a score between 0 and 6 to the question).

DATA ACCUMULATED number of followers

2011

2012

2013

Facebook

2.076 5.368 11.871

Twittter

-----

2.075 3.420

Youtube

8

28

115

SATISFIED CUSTOMER The raison d’etre of this business lies in achieving the highest possible levels of guest satisfaction, and it is because of this that efforts are made year after year to adjust the quality management system to the maximum extent possible to ensure that the most ambitious objectives regarding guest impressions of us are achieved.

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3.4. QUALITY AREA INTERVIEW

Mª José Fernández, Quality Technician at Fuerte Hoteles María José has been working at Fuerte Hoteles’ Quality Department for 11 years. Her work represents a major responsibility for the chain, as it consists of ensuring guest satisfaction. She manages complaints and suggestions, identifies strong and weak points and is able to seek solutions. In short, she is in charge of receiving feedback from guests - information about their requirements and expectations of the chain’s service quality.

What does working for Fuerte Hoteles mean to you?

Transmitting and channelling guest “feelings” to the management. I belong to a company whose philosophy is caring for people and the environment, so quality is present in all services that we offer to guests. Although it is complicated, it is a nice task and I am very proud to receive comments and surveys from satisfied guests every day, who write to us to thank us for the service that they received.

What does Quality mean to Fuerte Hoteles?

Our guests are increasingly demanding and are often attracted by our corporate social responsibility policies. We go beyond just offering them bed and breakfast; we want to offer them a perfect holiday experience and ensure that they leave happy and really wanting to return. This is our primary objective.

How do the clients perceive the customer service at Fuerte Hoteles?

Fuerte Hoteles customers value our employees close and personal service, this perception is a value that has become one of the main attributes of the chain. This sentiment makes them loyal customers; a while ago we ran a promotional campaign titled “I come back to Fuerte Hoteles”, consisting of video-interviews with our guests. This initiative arose from the identification of hotel guests reviews ensuring that they were so happy with their stay with us they would repeat the experience.

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3.5. PROMOTION AND SUPPORT OF LOCAL SUPPLIERS All group suppliers must sign and accept the conditions laid down in the suppliers and corporate procurement policies; therefore, when forming part of the El Fuerte Group’s supplier database, all of the group’s suppliers accept a series of environmental and ethical requirements right from the start.

AMOUNT OF LOCAL PURCHASES (FOOD AND DRINK)

Código SAP: ..........................

DATOS PARA CREAR LA FICHA

2013

1.190.492,06€

1.421.865,43 € € 2012

1.868.569€ 2011

2010

1.743.502€

DPTO EMISOR DE PETICION:

Thus, paragraph 4 of the corporate procurement procedure entitled “Procurement for hotel operations” contains the following clause mainly alluding to the importance of always giving priority, whenever possible, to local suppliers: Procurement from local suppliers should be promoted, such that at least 50% of each centre’s total volume is purchased from them. The evolution of this rate should be reported to the quality department on an annual basis.

Similarly, supplier sheets also include a page of environmental conditions for suppliers of goods and other services. This document is an essential prerequisite, due to Fuerte Hoteles’ commitment to the environment.

NOMBRE: SOCIEDAD: FUERTEGROUP SL FORMA DE PAGO: ( Firma del Jefe del Dpto. que demanda la formalización del proveedor)

Ficha de Proveedor

Rev. Nº 02 Aprobado: 23/07/2009

Pág. 1/12

Supplier registration and control document, which lays down the environmental requirements that the group’s supply companies must sign and accept.

3.6. MANAGEMENT SYSTEMS For another year running, Fuerte Hoteles has received the UNE-EN ISO 1401 Environmental Management Certificate from the prestigious certification authority AENOR, guaranteeing that the philosophy underlying the work done at the group’s facilities promotes the protection of nature and fights to reduce environmental impact. This certificate attests to the fact that the group optimises environmental resources, and positions Fuerte Hoteles as an innovative and productive chain.

In addition, as part of integrating with the environmental management system, all of the chain’s hotels maintain a quality management system based on the UNE-EN ISO 9001 standard, comprising a planned package of procedures to ensure that the organisation provides products and services that meet guest requirements without overlooking any relevant regulations.

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3.7. COMMITMENTS 01. CSR Report For several years, Fuerte Hoteles has considered it necessary to explain its CSR progress and initiatives and to report on them in an ordered way, for the purpose of transmitting information about all of its responsible work outside the boundaries of the company. By doing this, for yet another year running it has positioned itself as the only Andalusia-based hotel chain to submit a study with these characteristics; this edition is the fifth consecutive year.

Therefore, the CSR report is another means of communication, added to the different and more traditional methods used previously. Its aim is to graphically and not too extensively reflect the essence of the company’s CSR, and is one of the aspects that makes this hotel chain a pioneering group in this area.

02. Travelife Sustainability System Fuerte Hoteles has formed part of this sustainability system since the first year it was created; three of the chain’s hotels hold the “Gold Award”, which has been give annually since the year 2011.

Meeting its requirements and adapting to its constant recommendations ensure that the applied sustainability model continues to constantly evolve; compliance on the fly has become a major supporting factor to the premise of continuous improvement.

03. ISO 14001

04. FUNDACIÓN FUERTE

Using as a starting point better knowledge of the needs of guests who are increasingly aware of the environment, certification of the environmental management system, based on the ISO 14011 standard, guarantees and provides support to a series of accomplishments that ensure respect for the environment and attempts to improve the efficiency of all processes.

Fundación Fuerte is a not-for-profit entity headquartered in Marbella. Its purpose is to channel the El Fuerte Group’s charity activities and it focuses on helping people at risk of social exclusion, the organisation of cultural events and environmental awareness campaigns.

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 16

3.8. Strategic economic objectives for the coming year: challenges I. Profit Orientation

III. Guest orientation

1. Improve price and availability management in all channels.

2. Increase in-room sales and sales of extras.

3. Bolster the efficiency of structural expenses and hotel operating costs.

1. Improve levels of guest service, treatment and communication.

2. Achieve greater guest acquisition, loyalty and recommendation.

3. Greater knowledge of those aspects that are really actually valued by guests.

II. Desarrollo del Talento 1. Facilitate greater personal development and involvement.

2. Maximise the role of the performance assessment.

3. Improve leadership, teamwork and encourage ethical and responsible conduct.

4. Stimulate the role of leaders as models of ethical conduct.

IV. Communication and Corporate Social Responsibility 1. More and better internal and external communications on matters related to CSR. 2. Increase traffic to our website.

3. Implement online presence (reputation+positioning) to increase conversion.

4. Achieve greater brand recognition in the field of CSR.

Panoramic view of the Fuerte El Rompido hotel

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 17

4. ENVIRONMENTAL PERFORMANCE “Committing to sustainable management is an investment in the future�

The environment surrounding us forms part of ourselves. Respecting it ensures our legacy, and caring for it is a responsibility.

There is no doubt that the passage of time forces hotels and all other businesses to move towards sustainable behaviour, but in fact this has been a social imperative for some time now.

3.

Good sustainable practices are no longer only found in certain specific movements - they are fortunately becoming part of our day-to-day lives.

2.

1.

This makes it much simpler for the hotel sector to apply sustainable principles to its operating methods.

For a hotel group like Fuerte Hoteles, which has been formally developing this commitment since 1997, its environmental policy-based performance can be summarised in 4 key points:

5.

4.

- Prevention of pollution - Continuous improvement - Compliance with legislation and other requirements - Information and transparency about results and environmental innovations

ENVIRONMENTAL POSTERS

A challenge for the hotels over the past year has been to reinforce awareness of saving culture both among guests and employees. This is why the following environmental posters have been created and displayed throughout the various common areas of all the hotels: 1.

2.

3.

4.

5.

Travel green (recommendations for not leaving traces of your visit in the natural environment).

Walk towards efficient light (recommendations for saving electricity).

Every drop counts (recommendations for saving water).

Are you a member of the 3 Rs club? (information about recycling at Fuerte Hoteles).

Swimming pool free of industrial chlorine (information about the natural saline chlorination of our swimming pools).

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 18

4.1. INNOVATION 02 CSR Competition on Facebook In 2013, Fuerte Hoteles launched a competition to interact with its Facebook and Twitter users to publicise its video-creation on responsible tourism. The aim of this was to publicise its environmental measures and practices in a friendly manner, in order to raise awareness among the largest audience possible.

04

06

Employee story telling competition One of the cornerstones of Fuerte Hoteles is the quality of its human team, thanks to their motivation and involvement.

This is why we decided to give them a space on our blog in the form of a story telling competition, where they were able to share the most amusing anecdotes about experiences with guests. Our employees have a lot of happy stories to tell.

Participation in WWF “Earth Hour” Fuerte Hoteles switched off during Earth Hour for a more sustainable world on the 23rd of March, 2013. This was the chain’s contribution of the WWF initiative, the largest citizen mobilisation campaign in defence of the environment, aimed at raising awareness of the importance of saving energy.

02 04 06

08 A very “personal” greeting Giving smiles at Christmas time Last year at Fuerte Hoteles we wanted to celebrate Christmas in a very special way, with our employees as main characters in the video entitled “3 reasons to smile”, as it is they who ensure that our guests are happy when they leave after staying at our hotels.

08

01 03

01 TUI Holland Environmental Conference In May 2013, the Fuerte Conil-Costa Luz hotel hosted a series of sustainable tourism open days organised by the tour operator TUI, with the aim of publicising its benefits, particularly focusing on the use and promotion of renewable energy in tourist accommodation.

03 Coastal Juniper Following a request from the government of Andalusia, during 2013 the Fuerte El Rompido hotel promoted the planting of coastal junipers at its facilities. Along with the Spanish fir, this is the only plant species of Andalusian flora that has its own conservation program, due to its delicate conservation status of threatened extinction.

05

05

Electric cars The Fuerte El Rompido hotel has implemented a pioneering electric car rental service for its guests. As such, Fuerte Hoteles has become the first hotel chain to promote this sustainable and non-polluting means of transport in Andalusia, an initiative that joins the existing electric car recharge point in Marbella.

07 09

07

09

Slow Market The Fuerte El Rompido hotel is committed to promoting local trade, with the organisation of a Slow Market at its facilities. This market hosts exhibitions and handicraft workshops, where artists show off their creations made under a Slow Living philosophy.

“Responsible” video-creation Production and launch of a video on responsible tourism aimed at raising awareness among both guests and society in general of the importance of caring for the environment, by showcasing environmental practices implemented by Fuerte Hoteles. This video can be found on channel one in all hotel rooms.

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 19

4.2. RESPONSIBLE MEASURES IMPLEMENTED AT FUERTE HOTELES: FACADE RENEWABLE ENERGIES

All of our hotels are fitted with solar panels that allow us to heat water in rooms and heated swimming pools using the sun’s energy.

Thanks to this system we are able to reduce the consumption of fuels like propane and to be more efficient.

100% ECOLOGICAL WATERPROOFING

Our facilities are constructed using an ecological waterproofing system in the foundations. This avoids the use of non-environmentally friendly construction products and brings sustainability to the field of construction.

MINERAL PAINTS

On the façades of our hotels we use mineral paints manufactured based on silicates (natural elements) instead of plastic paints that are more damaging to the environment. In addition, mineral paints do not

contain hazardous elements and they last longer, meaning that the use of material resources is reduced.

CARBON FOOTPRINT

One of the indicators that we use for the integration of sustainability into our activity is calculating the carbon footprint of our facilities.

This allows us to be aware of the quantity of CO2 emitted by each guest at our hotels, based on which we can make changes to reduce it and decrease our environmental impact.

ELECTRIC CARS

At Fuerte Hoteles we are committed to sustainable transport. As part of this, electric cars are available for hire from our facilities at El Rompido to allow guests to enjoy their stay and visit every corner of the region.

A recharging point is available for use at the Fuerte Marbella hotel.

HANDMADE DECORATIVE PRODUCTS

When decorating our facilities we attempt to incorporate handmade decorative articles, acquired from local artists who work in a sustainable manner. Thanks to this policy, we are able to promote the economic development of small-scale producers rather than feeding the profits of mass manufacturing.

PROMOTION OF ECOLOGICAL TRANSPORT

At our hotels we offer a bike hire service to our guests and provide information about a wide range of trekking routes for different activities. It is our aim to promote sustainable tourism, which is why we propose a wide range of tours around the different natural environments in which our hotels are located.

Breathe...

Our hotels are integrated into their surroundings FUERTE HOTELES Corporate Social Responsibility Report 2013 y 20

Rest... naturally

4.2. RESPONSIBLE MEASURES IMPLEMENTED AT FUERTE HOTELES: ROOMS RENEWABLE ENERGIES

All of our hotels are fitted with solar panels that allow us to heat water in rooms and indoor swimming pools.

LOW ENERGY LIGHT BULBS

We are replacing conventional light bulbs with LED type low energy bulbs, which have a longer useful life and use much less energy. At Fuerte Hoteles we have decreased average energy consumption by 15% with this change!

CONTROL OF ENERGY CONSUMPTION

On a daily basis we monitor electricity, fuels (propane and petrol) and water consumed by our hotels. This monitoring allows us to generate an energy saving plan and optimize consumption in each case to achieve greater efficiency.

TEMPERATURE REGULATORS

These regulators are installed in each room, allowing us to use air conditioning more efficiently and to set a maximum temperature which, when reached, disconnects the heating automatically.

AUTOMATIC DISCONNECTION SENSORS

As part of our commitment to energy efficiency, we have installed this intelligent system in rooms that automatically turns off the air conditioning when it detects the opening of a window.

AUTOMATIC CARD-BASED SYSTEM

This system means that no electricity is supplied to the room until a card is inserted into a device; this ensures that all lights are turned off when the room is empty, avoiding unnecessary energy consumption.

DOUBLE GLAZING

All of the outside windows installed at our hotels have double glazing and soundproof glass, allowing us to maintain a stable inside temperature and reduce energy consumption. These windows also allow us to isolate rooms from outdoor noise, meaning our guests enjoy greater comfort during their stay.

NATURAL LIGHT

PURCHASE OF EFFICIENT EQUIPMENT

Sustainability characteristics of suppliers and products that are going to be acquired are always taken into account when purchasing new equipment for our facilities. We want our commitment to the environment to be present in all areas of our hotels.

When we clean the rooms every day, we give guests the choice of reusing their bed linen or requesting a new set.

We change bed linen if so requested, but we encourage all guests to reuse it, thereby contributing to a water saving of between 20% and 30% and helping us to protect the environment.

CLEANING PRODUCTS

INFORMATION ABOUT SAVING ENERGY

Most detergents and cleaning products that we use to maintain our facilities are either ecological or certified by an environmental management system. This ensures that they have been manufactured in accordance with criteria of efficiency and pollution reduction.

Our hotel rooms are designed such that they allow a maximum amount of sunlight in from outside. By using the natural resource of sunlight, we are able to avoid excessive use of artificial light and heating in our rooms.

BED LINEN

Labels and posters can be found in different areas of our hotels, providing information about measures and good practices that we implement in order to decrease our energy consumption and be more efficient on a daily basis.

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 21

4.2. RESPONSIBLE MEASURES IMPLEMENTED AT FUERTE HOTELES: BATHROOMS PARTIAL FLUSH CISTERNS

Our concern for efficient water usage has led us to install dual flush cisterns at our facilities. This system saves up to 3 litres of water whenever the half flush button is pressed.

This achieves more efficient consumption. We have already managed to save over 1,500,000 litres of water each year, with which we could fill half of all the swimming pools at Fuerte Hoteles.

WATER SOFTENING SYSTEM

Every drop counts

We have fitted a softening system that guarantees water quality, prevents damage to pipework and the accumulation of limescale. Similarly, the water softening process contributes to lengthening the useful life of our electrical appliances and air conditioning systems and allows them to be more efficient.

REDUCTION IN PACKAGING

To avoid generating excess waste, we have reduced the packaging of the range of articles made available in bathrooms as much as possible, or we have replaced it with biodegradable packaging. We have also installed shower gel and shampoo dispensers that are periodically refilled, thereby reducing the number of small containers that we use.

SAVING TIPS

Posters are displayed in our bathrooms and toilets providing information about ways to save water: turn off taps properly, use the cistern’s partial flush button, turn the water off while soaping yourself, and many other details that can also be applied at home to achieve more efficient consumption.

WATER SAVING DEVICES

We have installed water saving devices to taps in our facilities to reduce spending on water and achieve a more rational consumption of this resource.

TOWELS

When we clean bathrooms in rooms every day, we give guests the choice of reusing their towels or requesting new ones. If they are left on the floor, we know that they want fresh towels, but we encourage their reuse to contribute to water savings of between 20% and 30%.

WATER QUALITY CONTROL

At our facilities we carry out periodic quality controls to ensure that water is suitable for all uses, thereby guaranteeing the well-being of our guests.

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 22

SELECTIVE WASTE COLLECTION

4.2. RESPONSIBLE MEASURES IMPLEMENTED: EXTERNAL AREAS NATURAL VENTILATION

Our facilities have been designed with large patios and green areas to allow the natural ventilation of rooms, and prevent the excessive use of artificial air conditioning, which leads to high levels of energy consumption.

USE OF SENSOR LIGHTS

We have fitted lights in our gardens and outdoor areas that turn on automatically at sunset and turn off again when there is natural light. This allows us to save energy and only light outdoor areas of our facilities when necessary due to lack of sunlight.

DRIP IRRIGATION SYSTEMS

At Fuerte Hoteles we use the most efficient irrigation systems possible for maintaining our plants and gardens These drip and micro-spraying systems provide our plants with the exact amount of water that they need, thereby preventing waste and unnecessary expenditure of this resource.

ZERO GARDENING

Native plant species can be found in our gardens, as they are perfectly adapted to the region, they do not require as much irrigation or care as species from other climate zones. Similarly, we strive to plant species at risk of extinction to contribute to their conservation and raise awareness of them among guests.

USE OF CONTROLLED PLANT PROTECTION PRODUCTS

Whenever possible when caring for our green areas and gardens we will attempt to avoid the use of chemical fertilisers, pesticides and herbicides. It is our intention to care for our plants in a natural manner, so plant protection products will only be used when strictly necessary.

ECOLOGICAL CHLORINATION SYSTEMS

We use saline electrolysis systems to maintain our swimming pools. This involves the use of mineral salt instead of chlorine tablets to keep the water clean, thereby avoiding common annoyances caused by these types of products and promoting the use of natural products, which are just as effective, while decreasing the amount of hazardous waste generated.

LOCAL CULTURAL ATTRACTIONS

We want to encourage our guests to learn about and enjoy all of the cultural activities in the areas surrounding our hotels, such as the wide range of exhibitions, concerts and popular festivals that are celebrated.

EXCURSIONS AND ACTIVITIES

At our hotels we offer our guests a range of environmentally friendly activities and excursions, to help them get the most out of their stay and discover the area.

Each year we recycle on average more than 2500 kg of paper and cardboard, over 3500 kg of glass and 1100 kg of packaging and plastics at each hotel. We also recycle an average of over 470 litres of cooking oil, which is converted to biodiesel; we reuse pruning waste to make compost and we deposit used batteries in special containers.

TILED FLOORS

We have laid tiled floors in all areas of our hotels, as they are more stable in the event of temperature changes that occur throughout the year, staying cool in summer and warm in winter. This also allows us to reduce the use of heating and air conditioning and indirect emissions.

REDUCTION OF TARMACKED ZONES

To improve stays of our guests, we have decided to reduce tarmacked areas and replace them with green areas where guests can take a stroll. These are far more pleasant and better suited to the natural environment that we want to recreate for our hotels.

TRADITIONAL ARCHITECTURE

Most of our hotels are built in accordance with the architectural style of their local area to integrate them into the landscape and promote traditional Andalusian architecture in these places.

INTEGRATION INTO THE AREA

Another feature of our hotels is their integration into the site where they are located. We strive to minimise the impact on the landscape of our facilities and we plant native species of vegetation to ensure that our complexes are in harmony with the natural environment in which they are located.

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 23

LOW ENERGY ELECTRIC APPLIANCES

To reduce our energy consumption as much as possible, we strive to purchase electrical appliances with the highest energy efficiency rating and certified low energy consumption.

OPTIMISATION OF WASHING UP

All of our employees are aware of the need to protect the environment. As a result, our kitchen workers use saucepans or similar utensils to wash vegetables, allowing this water to be used afterwards for irrigation.Furthermore, the dishwasher is only used when full to ensure that water is consumed responsibly.

COOLING GASES

REFRIGERATED WASTE AREA

At Fuerte Hoteles we are aware of the importance of separating different types of waste. To prevent the decomposition of organic waste and resulting bad odours, we have refrigerated areas at our facilities that we use to deposit this waste, avoiding annoyance being caused to our guests.

ECOLOGICAL CRITERIA FOR SUPPLIERS

All of our suppliers have been carefully chosen by taking into account our established ecological selection criteria.

This allows us to promote the contracting of local suppliers who also apply sustainability measures within their organisations and show concern for the environment.

In compliance with that established by law, cooling gases used in our facilities do not damage the ozone layer.

This is part of our reiterated commitment to protect the environment and to implement measures to promote decreased pollution.

HEALTHY WHOLEMEAL BUFFETS

BULK PURCHASES AND PACKAGING

GLUTEN FREE MENUS

In accordance with our ecological procurement criteria, we strive to purchase products with biodegradable and returnable, or easily recyclable packaging, and that are not double packaged. We purchase products in bulk rather than in portions for our restaurant, and we always use reusable plates and cutlery.

On all of our breakfast buffets we offer healthy and wholemeal products to all guests who enjoy these types of food. Every morning our guests can enjoy the healthiest and natural products.

Any guests requiring gluten free food at breakfast time and in our restaurants can enjoy menus specially designed for those suffering from coeliac disease, to ensure that their stay with us is as comfortable as possible.

4.2. RESPONSIBLE MEASURES IMPLEMENTED AT FUERTE HOTELES: restaurant

Memoria de Responsabilidad Social Corporativa FUERTE HOTELES 2013 y 24

4.2. RESPONSIBLE MEASURES IMPLEMENTED AT FUERTE HOTELES: ECOLOGICAL KITCHEN gARDEN ECOLOGICAL AND NATIVE CUISINE

All of our restaurants offer fresh, natural and seasonal products provided by our local suppliers. This allows us to apply sustainability criteria and avoid generating large amounts of emissions; we spend less on fuel for transporting food produced great distances away from us.

LOCAL AGRICULTURE

At Fuerte Hoteles we contribute to the local development of each region, as a majority of our suppliers come from our local areas.

ECOLOGICAL TRAINING

To ensure the sustainability of our facilities, it is necessary to involve our employees and raise awareness of its importance. This is why we give training courses on ecology and the environment to our employees.

FUERTE EXPERIENCES PROGRAMME

We offer our Fuerte Experience programme, including a range of environmental activities and workshops, to promote sustainable tourism in the areas where our facilities are located. Be sure to browse our activities programmes and don’t hesitate to ask us if you have any doubts.

Fuerte Hoteles is committed to native cuisine

Ecological, healthy food and the most authentic local dishes Memoria de Responsabilidad Social Corporativa FUERTE HOTELES 2013 y 25

4.3. LEARNING ABOUT OUR IMPACT Before we are able to propose solutions to the impact generated by our hotel business, we first need to know what sort of impact we are having. Therefore, over the years we have developed a methodology that today provides hotels with the information that they need to find out what effect their business has on the environment.

These indicators, used by the Fuerte Hoteles head office, are known as ecological footprint and carbon footprint. They are calculated on a monthly basis, taking into account guest consumption of water (litres), electricity (kWh), propane (kg) and diesel (litres).

Fuerte Marbella

Fuerte miramar

0,19 m /GUEST

0,25 m /GUEST 3

Fuerte Marbella

16,64 KW/GUEST

Fuerte conil costaluz

14,45 KW/GUEST

13,2 KW/GUEST

WATER

Fuerte Marbella

0,12KG/GUEST

Fuerte conil costaluz

Fuerte miramar

0,07 KG/GUEST

Fuerte el rompido

0,41 KG/GUEST

ELECTRICITY

1,06 L/GUEST

Fuerte conil costaluz

DIESEL

16,9 KW/GUEST

Fuerte Grazalema

0,5 L/GUEST

NO USA

Fuerte Grazalema

12,16 KW/GUEST

0,61 L/GUEST

Fuerte el rompido

3

Fuerte miramar

Fuerte el rompido

3

0,24 m /GUEST

Fuerte miramar

0,8 L/GUEST

0,25m /GUEST

3

Fuerte el rompido

Fuerte Marbella

Fuerte Grazalema

0,13 m /GUEST

3

PROPANE

Fuerte Grazalema

0,12 KG/GUEST

Fuerte conil costaluz

0,09 KG/GUEST

This year, electricity consumption accounted for 80.19% of the total amount of CO2 emitted, whereas diesel accounted for 15.22% and propane consumption 4.59%.

FUERTE HOTELES 2013 RECYCLING DATA

PAPER AND GLASS PLASTIC VEGETABLE OIL 43.600,30 kg. CARDBOARD 4.086,55 kg.

1.625 l.

29.536 kg.

COMPARATIVE CONSUMPTION 2013 vs 2012

SAVING OF

8,62%

SAVING OF

2,36%

SAVING OF

9,17%

INCREASE OF

16,05%

Memoria de Responsabilidad Social Corporativa FUERTE HOTELES 2013 y 26

LIO

SE TO PT

IE M BR OC E TU NO BR E VI EM BR DI E CI EM BR E

OS

60

AG

0

AU G

US T

BE OC R TO NO BER

VE M BE DE R CE M BE R

PT EM

SE

JU LY

E

JU N

JU

NE

JU

L AU Y GU SE S T PT EM BE OC R TO NO BER

VE M DE BER

CE M BE R

40

JU

fuerte el rompido

0

O

2012

NI O

40

60

AY

fuerte miramar

JU

40

M

2013

m2/guest

80

IL

0

ECOLOGICAL FOOTPRINT

20

m2/Cliente JA NU AR FE Y BR UA RY

M AR CH

AP RI L M AR CH

100

AB R

2012

O

0 60

ZO

60

2013

The ecological footprint is used to calculate how much natural surface area is required to carry out a business activity. According to the original method developed by Mathis Wackernagel and William Ress, the state is expressed as m² of terrain/hotel guest.

EN ER FE O BR ER O M AR ZO

AB RI L M AY O JU NI O JU LIO

AG OS SE PT TO IE M BR OC E TU NO BR E VI EM DI BRE CI

EM BR E

0

AR

2012

RY

RU AR Y M AR CH

AP RI L M AR CH

fuerte el rompido

FE B

20 2013

2012

Kg CO2 / guest

80

JA NU A

R

0

BR ER

20

Kg CO2 / guest

TO NO BER

VE M DE BER

CE M BE R

OC

BE

ST

GU

LY

JU

EM

PT

SE

AU

NE

JU

CH

AR

M

L

RI

AP

CH

AR

M

20 80

RY FE BR UA RY

M AR CH

AP RI L M AR CH

JU NE

JU LY AU GU SE PT ST EM BE OC R TO NO BER

VE M DE BER

CE M BE R

40 2013

0

Kg CO2 / Cliente JAN UA RY FE

BR UA RY

M AR CH

AP RI L M AR CH

JU NE

JU LY AU GU SE ST PT

EM BE OC R TO NO BER

VE M BE DE R CE M BE R

CH

JU NE

JU LY AU GU SE ST PT

EM BE OC R TO NO BER

VE M BE DE R CE M BE R

60

AR

M

L

RI

AP

CH

RY

RY

UA

60

M

40

BR

2012

The carbon footprint is used to analyse the amount of CO2 emitted by the activity of each hotel. To facilitate understanding, this indicator is expressed as kilograms of CO2 per guest.

FE

80

fuerte miramar

EN ER O

60

AR

m2/guest

m2/guest

100

FE

CARBON FOOTPRINT M

RY

0

RY

20

UA

40

BR

0

FE

0

RY

M AR CH

AP RI L M AR CH

JU NE

JU LY AU GU SE ST PT

EM BE OC R TO NO BER

VE M BE DE R CE M BE R

fuerte marbella

RY

20

UA

20

BR

2012

20

NU A

JA

100

FE

m2/guest

40

NU A

60

JA

100

fuerte grazalema

Kg CO2 / guest

80

NU A

20

NU AR FE Y BR UA RY

M AR CH

AP RI L M AR CH

JU NE

JU LY AU GU SE PT ST EM BE OC R TO NO BER

VE M DE BER

CE M BE R

JA 40

JA

R

BE

TO NO BER

VE M DE BER

CE M BE R

OC

ST

GU

LY

JU

EM

PT

SE

AU

NE

JU

CH

AR

L

RI

AP M

RY

CH

AR

m2/guest

60

Kg CO2 / guest

60

M

UA

RY

NU A

BR

FE

JA 80

fuerte marbella

NU A

Kg CO2 / guest

100

JA

NU AR Y RU AR Y M AR CH

AP RI L M AR CH

JU NE

JU LY AU GU SE ST PT

EM BE OC R TO NO BER

VE M BE DE R CE M BE R FE B

JA

4.3. LEARNING ABOUT OUR IMPACT fuerte conil - costa luz

2012

60

2012

100 2013

40

2013

20 2013

2012

20 2013

2013

fuerte conil - costa luz

40 2012

2013

0

fuerte grazalema

40

60 2012

40 2013

2012

20

2013

* No data is displayed in the corresponding months the period of closure of the hotels.

0

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 27

4.4. ENVIRONMENTAL OBJECTIVES FOR THE COMING YEAR Our commitment to continuously improve the efficiency of our processes and to prevent pollution means that we are directing our efforts to ensuring that the facilities, activities and services of our hotels have a lower impact. Therefore, now that the year is ending an assessment is being conducted of actions that have been implemented and goals are being established to ensure the year-on-year improvement of these aspects. The company will make every effort to achieve these goals. This being the case, the following challenges have been proposed for the coming year:

A chieve 2% better savings in diesel, propane and water consumption compared to the previous year, and 3% better in electricity consumption.

Solar Panels at the Fuerte Grazalema Hotel.

U se more efficient communication tools to inform all stakeholders of our values and CSR policy (guests, employees and suppliers, etc.). This is mainly achieved through activities such as designing specific posters to be placed in visible places in our hotels, advertising spots on the radio, specialist conferences and the use of social networks, etc.

Show our new video on responsible tourism in 100% of rooms.

Improve the productivity of our processes.

I dentify local needs where we can help with our support to keep the environment around our hotels in good condition.

I mprove the website section focusing on responsible tourism, with an interactive micro-site to discover all environmental measures present in different areas of the chain’s hotels.

C ontinue drafting the “Corporate Social Responsibility Report” for the year 2013, in which we have attempted to explain all of our efforts and achievements related to CSR. It includes information about all environmental, cultural and social activities carried out by our company.

Ecological Kitchen Garden at the Fuerte El Rompido Hotel.

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 28

5. SOCIAL PERFORMANCE 5.1. SOCIO-OCCUPATIONAL CONDITIONS

Through our social improvement plan available to all employees, it is our aim to strengthen the values of Fuerte Hoteles in the long terM among the entire workforce. Particular emphasis will be placed on family, training and health values in line with the company’s people management policy.

MARRIAGE

Investment: 2.686,40€

Gift cheque for any employees who get married.

SCHOOL BOOKS

Investment: 8.339,62€

Assistance for any workers with children in their second year of infant education, or going through secondary education or training cycles.

CHILD CARE

Investment: 30.103,41€

Beneficiaries of this are employees with children between 0 and 3 years of age (first year of infant education) who use childcare services.

Ongoing training

This package of voluntary measures has been created with the primordial objective of ensuring that the company’s core values are shared by all employees.

Economic assistance for workers who take courses. The amount of this assistance depends on how the training is related to their job.

Employees are able to benefit from the following measures:

Pay advances and interest free loans for employees.

ADVANCES AND LOANS Investment: 93.060,26€

ACCOMMODATION DISCOUNTS

Both employees and their families and friends enjoy major discounts on services offered by Fuerte Hoteles.

PARTIAL RETIREMENT

An improvement on conditions established by applicable legislation.

INTERNAL PROMOTION FOR EMPLOYEES

When new positions open up, the company tries to give priority to internal promotions to fill vacancies.

REMOTE WORKING

To ensure that family and working lives remain compatible, certain people within the company do part of all of their work at home.

MATERNITY

The accumulation of a period of real days for breastfeeding, which are added to maternity leave.

FUERTE HOTELES Corporate Social Responsibility Report 2013 y 29

5.2. WORKING environment WORKING ENVIRONMENT SURVEYS

The working environment’s pulse is taken through surveys conducted with employees twice per year, which have the additional benefit of raising employee awareness and commitment to the company’s strategy, mission, vision and values. Results are used to draw conclusions about working on the motivation of personnel and promoting leadership, among other actions.

PERFORMANCE ASSESSMENTS

Employee performance is assessed on an annual basis by direct managers. These assessments include conversations on development, during which employees receive recognition of their merits and personal efforts, among other aspects.

MEETINGS WITH HEADS OF DEPARTMENT

Heads of department of each hotel meet with their respective directors at least twice per month to analyse the most recent guest satisfaction surveys that have been received and to attempt to resolve any complaints that may have been received from guests.

TALENT MANAGEMENT

This area aims to bring professionalism to the organisation and its people, considering the following areas for improvement and projects: -More participation in decision making -Promotion of innovation -Talent management: job profiles and career plan

AVERAGE LENGTH OF SERVICE IN YEARS

INCIDENT RATE %

AVERAGE ACCIDENTS IN THE WORKPLACE

FUERTE MARBELLA

10,49

8,28%

7,7

FUERTE CONIL-COSTA LUZ

4,76

5,88%

12,16

FUERTE MIRAMAR

7,36

6,52%

14,5

FUERTE GRAZALEMA

5,34

0%

0

FUERTE EL ROMPIDO

3,88

7,13%

21,33

FUERTE ESTEPONA

1,42

0%

Oficinas centrales

5,35

1,36%

WORKING environment CENTRAL OFFICES

77,7%

FUERTE ESTEPONA

81,3%

FUERTE EL ROMPIDO

76,9%

FUERTE GRAZALEMA

85,9%

FUERTE CONIL COSTA LUZ

75,5%

0

FUERTE MIRAMAR

79,6%

7

FUERTE MARBELLA

75,5%

Incident rate: indicates the number of personnel away from work for every thousand personnel exposed.

Incident rate = (no. of accidents involving time off work / total workforce) x 1000. Average accidents in the workplace: indicates the average time spent away from work due to accidents in the workplace (average duration in days). Average length of service: Personnel working for the company during the observation period.

Data obtained from annual surveys of employees. Conducted anonymously in each hotel and department.

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5.3. FUNDACIÓN FUERTE The Chair of El Fuerte Group, Mrs. Isabel García Bardón currently continues to preside over the Fundación Fuerte and the company’s board of directors; she dedicates also dedicates a lot of her time to presiding over the charity Horizonte Association.

Her day-to-day activities currently focus on the Fundación Fuerte, founded in 2004 as a logical continuation of values that have become an important point of reference for over 50 years (1957-2014) for this kind soul who is the lifeblood of this family business, summarised by the slogan

“Caring for people and the environment”.

groups that have particular difficulty accessing the jobs market, including:

• The Foundation for Social Attention and Incorporation (FADAIS in Spanish), with the objective of full social and occupational integration of people at risk of exclusion.

• Local associations working with work placement programmes for groups with particular difficulties accessing the jobs market, by running training courses and work experience at hotels.

• As a result, during this year the Fuerte El Rompido hotel has hosted the “Access” programme run by the Roma Secretariat Foundation, thanks to which a total of 15 students have completed traineeships for employment at the hotel’s facilities. Students on this course have received training in skills related to essential functions of a hotel: Cleaning, restaurants, kitchen, spa and maintenance.

MisSiOn What do we want?

The aim of the Fundación Fuerte is to promote sustainable development of people (children, teenagers and families) in situations of risk or with physical and/or cultural shortcomings, both in Spain and other countries considered appropriate by the trust, with preference given to places where Fuerte Hoteles owns properties.

ViSiOn

What do we believe in?

Fundación Fuerte was created for the purpose of bringing together the management of the company’s desire to work to resolve problems in its social environment.

Proyecto Hombre to help workers suffering problems with any type of addiction

It performs this function by providing assistance to, or creating its own projects to integrally improve living conditions: education, housing and/or human development.

• Cooperation with various associations of people with special needs.

The foundation works alongside institutions and foundations aimed at finding workplacements for

• Hiring of workers from groups of people at risk of exclusion, through occupational reinsertion programmes.

We want to become a not-for-profit organisation, the social side of which promotes projects assisting children, young people and women.

In terms of cultural activities, we promote all forms of local artistic representation, always with the possibility of raising awareness of sustainability.

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5.4. social AREA INTERVIEW

Isabel Luque, Fuerte Hoteles Asset Manager and Manager of the Fundación Fuerte’s Cultural Projects Isabel is in charge of ensuring that the different establishments are kept in a good state of repair and that equipment is renewed, always taking efficiency into account. This task combines with the management of an intense cultural programme that she runs from the Fuerte Foundation. Conferences, training courses and exhibitions, Isabel also promotes the first collection of responsible art for Fuerte Hoteles.

What does working for Fuerte Hoteles mean to you?

I have spent most of my working life at Fuerte Hoteles; I started when I was 26 and I’ve been with the company for 27 years. I have participated very actively in designing and fitting out the 7 hotels that our company currently owns in Marbella, Torrox, Conil, Grazalema, El Rompido and Estepona.

I have been working with the Fuerte Foundation since the year 2006; I believe that the value provided to a 21st century company by a not-for-profit activity is very important. It gives me a lot of personal and professional satisfaction to contribute my grain of sand to improving social and cultural aspects of our environment.

What is the idea of responsible art?

It is works created by local artists aimed at raising awareness of environmental and social issues. The main idea is to raise awareness among everyone attending exhibitions at our hotels about the need to care for the environment, and our necessary involvement for tackling problems relating to social and cultural integration aspects.

What would be your highlight of those years?

For me, working at Fuerte Hoteles means always being willing to learn. I’ve enjoyed my successes a lot, and I’ve also learnt much more from my mistakes. It is an ever-changing environment and this requires you to always adapt, so I consider flexibility to be a value.

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5.5. SOCIO-CULTURAL PROJECTS RUN BY THE FOUNDATION

SOCIAL PROJECTS SCHOLARSHIP TO IMPROVE STUDIES OF CHILDREN IN JAMAICA. Empowering and enriching lives of young people in the parish of Hanover. Designing and implementing education, sport and professional training programmes.

MAHAGI YOUTH CENTRE CONGRESS. Acquisition of books on general culture, encyclopaedias, dictionaries.

TORROX “HOMBRE” PROJECT, PREVENTION. Primary education drug addiction prevention programme and family programme run at teaching centres in the district of Torrox JEREZ, CONIL AND GRAZALEMA “HOMBRE” PROJECT. Primary education drug addiction prevention programme and family programme run at teaching centres in the district

MIGUEL ÁNGEL JIMÉNEZ PROAM. Málaga “Hombre” Project. Subsidy of charity golfing tournament to contribute to raising funds for the Málaga “Hombre” Project CIS HORIZONTE MARBELLA. Creation of a meeting space to promote the development of positive behaviour, attitudes and values among teenagers HORIZONTE ANNIVERSARY DINNER. Annual event of the Marbella “Hombre” Project Horizonte Charity Association, to raise funds for the association MARBELLA “HOMBRE” PROJECT HORIZONTE SOCIAL MEDIATION TRAINING COURSE. Course to give participants tools for their treatment or prevention work

HORIZONTE FUNDRAISERS. Payment of meals for volunteers during each charity fundraising event. Six are held per year TREATMENT SUPPORT APARTMENT. Horizonte apartment mortgage. Financing of the monthly mortgage payment. The aim is to provide a place to say to drug addicts lacking economic means and family support, who stay at the apartment for initial therapy and re-insertion HORIZONTE DIRECTORS’ MEETING. Financing of the training area and necessary material SUPPORT TO CUDECA. A foundation that invests its efforts caring for, soothing, accompanying and providing specialist palliative care to patients residing in the province of Málaga suffering advanced or terminal cancer, and offering support and comfort to their families.

5.5. SOCIO-CULTURAL PROJECTS RUN BY THE FOUNDATION

CULTURAL PROJECTS ENGRAVING MUSEUM. Promotion of culture within the city of Marbella, with exhibitions at the Engraving Museum. The foundation provides funding for artists exhibiting at the Engraving Museum.

RECYCLED PAPER AND ART. Engraving Museum. The foundation makes it possible for groups of school children to take part in a paper recycling activity at Cortijo de Miraflores, run by a specialist in the field. Various local artists are invited to turn these works into engravings. The aim is for Fuerte Hoteles to use one of these engravings to print Christmas gifts for its guests in 2013.

FUERTE CONIL EXHIBITION. Art exhibition with local artists.

HANDICRAFTS MARKET TO RAISE MONEY FOR THE “HOMBRE” PROJECT at the Fuerte El Rompido hotel.

ASSOCIATION OF FRIENDS OF THE SOL MAYOR ORGAN CONCERTS. The foundation’s activity consists of organising three concerts per year, helping to maintain and preserve the Sol Mayor organ.

SANTA MARÍA DE LA VICTORIA FOUNDATION. Music band. Transport costs are funded to support the music school and to take its members to the annual provincial meeting in the municipality of Marbella.

PROJECT TO UPDATE the foundation’s website.

ENVIRONMENTAL PROJECTS ARBORETUM. Recovery of a degraded area in the municipal district of Marbella. Planting of native species from the Mediterranean region, as well as carrying out a series of activities and installations for providing information and training to citizens of Marbella, students and tourists

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6. LETTER OF FAREWELL Dear friends, For yet another year running I would like to close this report by referring to a challenge; a challenge to the business community in general and particularly to the hotel sector: how to inform our audience of the sustainability activities that we carry out.

We have to explain to society that we are not just another hotel chain, we are a family business that has been fighting for sustainable tourism for over 50 years. Not only are we concerned with providing excellent levels of quality and comfort to our guests, we also want Fuerte Hoteles to be acknowledged at all of our destinations as a company concerned with improving its environment.

Our Corporate Social Responsibility policy is based on innovation. As part of this, each year we implement new environmental measures and activities always with a firm commitment to saving energy and other natural resources. We want to put in place policies for hiring people at risk of social exclusion through employment and training programs, to improve the quality of life of people living close to our hotels. We promote local cuisine and culture, as well as the customs and traditions of each place where our hotels are located. But this is not enough.

It is not enough if we don’t know how to explain to our guests what we’re doing well. This is why in 2013 we have focussed our efforts on COMMUNICATING (with capital letters) our activities in the field of sustainability, using the tools available to us. We have run awareness campaigns on our website, blog and social network, along with other publicity activities, with the aim of engaging all of our stakeholders, from our suppliers and employees to our guests.

We want to share our values with guests who are becoming increasingly aware of these issues. According to TripAdvisor data, over 25% of European tourists chose eco-sustainable holidays over the past year, and one in ten chose their accommodation based on sustainable policies, although a high percentage complain of a lack of information in this area.

We are confronted with a process of change in traveller mentality, so we must continue to invest in innovation as a response to new requirements and to be competitive alongside our Corporate Social Responsibility.

With kindest regards, José Luque - Managing Director of Fuerte Hoteles

The Luque García family has led the Fuerte Hoteles chain for 57 years, and has always pioneered management based on sustainability and caring for the environment.

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7. TABLE OF GRI INDICATORS PRESENT IN THIS REPORT 5. economic indicators

1. STRATEGY AND ANALYSIS

Statement from the most senior decisionmaker of the organization.

Description of key impacts, risks, and opportunities.

2. ORGANIZATIONAL PROFILE

Name of the organisation.

Primary brands, products, and/or services it provides.

Operational structure of the organization.

Location of the organisation’s headquarters.

Scale of the reporting organisation.

Significant changes during the reporting period.

Awards received in the reporting period.

03 03

04 05 04 05 05 19 08

3. REPORT PARAMETERS Reporting period.

Date of most recent previous report.

Reporting cycles.

Contact point.

Process for defining report content.

Boundary of the report.

02 02 02 04 02 02

4. Governance, commitments, and engagement

Governance structure of the organization.

03 Chair of the highest governance body.

03 Independent members of the highest governance body.

03 Process for informing and consulting employees about working relationships.

29 Internally developed statements of mission or values, codes of conduct.

06 y 08 Principles relevant to economic, environmental, and social performance and the status of their implementation. 17 Frequency with which the highest governance body assesses sustainability performance.

02 Membership in associations.

07 List of stakeholder groups engaged by the organization.

07

EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

10 EC3 Coverage of the organization’s defined benefit plan obligations.

31 EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. 15 EC7 Procedures for local hiring.

07

6. environmental indicators

EN3 Direct energy consumption by primary energy source.

26 EN5 Energy saved due to conservation and efficiency improvements.

26 EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

19-28 EN7 Initiatives to reduce indirect energy consumption and reductions achieved.

20-24 EN16 Total direct and indirect greenhouse gas emissions by weight.

27 EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.

19-24 EN22 Total weight of waste by type and disposal method.

26 EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

18-28 LA2 Total number of employees and employee turnover.

05 y 30 LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees. 29 LA12 Percentage of employees receiving regular performance and career development reviews.

29

7. Social indicators SO1 Health and safety topics covered in formal agreements with trade unions.

PR5 Percentage of operations with implemented local community engagement, impact assessments, and development programs.

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

33 y 34 13 16

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