Hospitality Accounting Update Spring 2022

1. May 17, 2022 Hospitality Accounting Update Spring 2022

2. © Deloitte Development LLC. All rights reserved. Hospitality Accounting Update 1 Corporate Travel in 2022 & Beyond Maggie Rauch Research Manager Deloitte Consumer Industry Center magrauch@deloitte.com

3. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 2 Key findings Key findings COVID outbreaks decelerated travel spend Corporate travel did not meet most companies’ expectations in the second half of 2021. One third of travel managers surveyed in June 2021 expected to reach half of 2019 spend levels by the end of the year. Only 8% reached that level by that time, as the Delta and Omicron variants put a crimp in plans. COVID variants impact travel policies COVID variants stalled the recovery significantly. Two thirds of companies say variants and outbreaks in the second half of 2021 caused them to push back their timelines. Another 15% say variants triggered a significant rethink of their travel policies. Steady return expected in 2022 Corporate travel expected is expected to experience a steady, but not meteoric, rise this year. Spend is projected to reach 36% of 2019 levels in Q2 ’22, and 55% by the end of the year. Full recovery to prepandemic levels is at least two years away. Health risk and directly pandemic-driven factors still present barriers to corporate travel but generate less concern than in 2021. Increased travel prices, however, remain a persistent concern. Higher travel costs persist as a concern Europe expected to lead among international destinations for 2022 As international travel returns, Europe is expected to bounce back strongest for US-originating trips in 2022. 1 in 4 respondents say they expect frequency of travel to Europe to near or exceed pre- pandemic levels this year. Asia and Latin America follow in recovery expectations but remain far behind. Source: Deloitte Corporate Travel Survey 2022 “Reshaping the landscape: Corporate travel in 2022 and beyond”

4. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 3 Key findings Key findings Industry events awaited and to return, but on a smaller scale Conferences and events face another challenging year but should see improved attendance. Live events moved up three spots among triggers to increase travel, entering the top five. And travel managers rate content delivery more dependent on in-person events than they did in 2021. Meetings contracts being modified in response to service cuts Two lean years and a labor crunch have hotels cutting back on services and amenities. As travel resumes, some companies are modifying their meetings contracts to ensure the availability of desired amenities in the face of these service cuts. Alternate lodging enters corporate travel but is still nascent Alternative lodging options like private rentals are finding their way into corporate travel but remain at a nascent stage. About one in 10 companies have non-traditional lodging in their booking tools. But still, half of companies do not even reimburse employees for stays in non-hotel lodging. Sustainability, still a priority, will push against future corporate travel spend. Three in 10 companies expect sustainability to cause a 11-25% reduction in travel budgets by 2025. Sustainability priorities to put a cap on the return of travel Work-from-office dominant companies expected to recover faster A quarter of companies say that more work from home means more trips to headquarters. However, more WFH also means less travel overall. Companies that will be office-dominant in Q2 2022 are twice as likely to expect travel spend to reach 2019 levels by the end of 2023 as WFH dominant ones. Source: Deloitte Corporate Travel Survey 2022 “Reshaping the landscape: Corporate travel in 2022 and beyond”

5. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 4 Strong growth is expected through the rest of 2022, followed by deceleration in 2023. Corporate travel spend is not expected to recover to prepandemic levels this year or next. Source: Deloitte Corporate Travel Survey 2022, N=150 executives with oversight of business travel policy, spend and strategy Questions: When did or do you expect your company’s quarterly travel spend to reach the following levels of 2019 spend?; Has a new variant or a COVID outbreak since summer 2021 triggered changes to your corporate travel plans or policies? Provided by 8% 13% 20% 25% 36% 45% 55% 59% 63% 66% 68% Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 U.S. corporate travel spend as a % of 2019 spend Deloitte projections by quarter, Q2 2021-Q4 2023

6. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 5 2021 vs 2022 surveys: Pace of recovery has not met expectations Source: Deloitte Corporate Travel Survey 2022, N=139 executives with oversight of business travel spend and strategy; Deloitte analysis Question: When do you expect your company’s quarterly travel spend to reach the following levels of 2019 spend? In June ’21, 34% of corporate travel managers expected to reach half of 2019 travel spend by the end of 2021. However, only 8% did. 75% 36% 17% 30% 6% 19% 1% 11% 4% 2022 2021 Less than 25% 25-49% 50-74% 75-99% 100% Rate of recovery Projected quarterly spend as % of 2019, by quarter Travel manager responses, 2022 vs 2021 Spend levels: Q4 2021 35% 6% 39% 20% 17% 28% 6% 20% 3% 26% 2022 2021 Q2 2022 Over half of travel managers surveyed in 2021 expected to reach their 2019 quarterly spend by the end of 2022. Now only 17% expect to reach that target by the end of this year.

7. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 6 61% 29% 9%1% Less than 10% 11 - 25% 26 - 50% More than 50% Directly pandemic-related barriers to travel are fading, while higher travel prices persist as a concern Top 5 factors that could slow business travel recovery 1 2 3 Travel restrictions Employee unwillingness to travel Client unwillingness to interact in-person 4 Delayed or online conferences, exhibitions 5 Increased travel prices Source: Deloitte Corporate Travel Survey 2022, N=150 executives with oversight of business travel policy, spend and strategy Questions: What are the external factors most likely to slow the increase of business travel for your company?; Change in influence vs April 2021 18% 18% 8% 23% 1% Current ranking Impact of sustainability on 2025’s travel spend Expected to reduce by:

8. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 7 International business travel resumes as borders open and restrictions ease. However, some geographies lag others in recovery. Source: Deloitte Corporate Travel Survey 2022, N=150 executives with oversight of business travel policy, spend and strategy Questions: What is the expected domestic vs international proportion of your company’s business travel spend?; In 2022, how do you expect travel to trend to the following international regions? In 2019, international travel accounted for over a quarter of corporate travel spend. While it came to a near standstill due to the pandemic, recovery is underway. • Travel managers expect international trips to account for 21% of overall business travel spend in 2022. • Travelers gear up to cross borders as meeting clients and leadership, and attending events becomes more attractive. • The war that began in February will likely slow the resumption of US-originating travel to Europe. As long as it does not spill over to other countries, however, Europe should see the fastest movement toward pre-pandemic levels. 22% 38% 52% 43% 54% 70% 54% 47% 36% 45% 36% 23% 24% 15% 13% 12% 10% 7% Europe Asia Australia / Oceania Latin America Middle East Africa No / very little travel due to pandemic factors Travel resumes but remains far from pre-pandemic levels Travel near / likely to exceed pre-pandemic levels Travel to Europe is expected to show the highest recovery. Asia is expected to follow. Expected 2022 international travel spend, by geography

9. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 8 Pandemic concerns will have a lasting effect on how companies plan their events. While events will take place, they will likely be on a smaller scale. Source: Deloitte Corporate Travel Survey 2022, N=150 executives with oversight of business travel policy, spend and strategy; Questions: Which of the following changes has your company made to your in-person events since Q4 2021? Has your company made or explored any of the following adjustments to future in-person events due to COVID-19 concerns? Changes companies are making to in-person events since Q4 2021 57% 52% 44% 39% 16% 13% Events that were either scheduled or considered for in-person moved online Planned in-person event attendance will now be smaller, either because of limited number of attendees or optional attendance Exploring ways to make hybrid or satellite events more effective Events for Q1 and/or Q2 2022 cancelled or postponed Moving some events to warmer locations Moving some events to warmer months The rise of concerning variants in the second half of 2021 led many companies to change their plans for in-person events. Events were cancelled, postponed and moved online. • Over half companies are transitioning their events to an online format. • The scale of in-person events expected to be smaller due to a cap on attendance or companies making attendance optional. • Companies are increasingly exploring ways to move to a hybrid format and make it more effective. • About 1 in 7 companies are moving events to warmer months and/or to warmer locations due to COVID-19 concerns. These shifts could increase competition for certain dates and venues, and decrease demand for others.

10. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 9 Benefits of higher workplace flexibility include less travel and cost savings. But it will also lead to increased trips to the home office. Source: Deloitte Corporate Travel Survey 2022, N=150 executives with oversight of business travel policy, spend and strategy Questions: Please choose the workplace flexibility level that prevailed or that you except to prevail in your company at the given points of time.; How has the rise of work from home affected domestic destinations your travelers visit?; When employees who recently relocated and now work remotely travel to headquarters, does your company cover travel costs for those trips? Consistent productivity, optimally leveraging newer assets, and achieved cost gains encourage companies to increase workplace flexibility offerings as they plan and facilitate the return to office. This will impact the travel types, destinations and reimbursement patterns that companies account for. Already… Over 1 in 4 companies say that the rise of work from home is responsible for additional trips to the company headquarters by newly dispersed employees 67% of these companies are reimbursing these trips for employees who relocated away from HQ. 29% leave employees to shoulder all or most of the cost 0.9 4.3 3.1 2.7 2.3 Pre-pandemic Mar 2020 - Dec 2021 Q1 2022 Q2 2022 Expected future model Flexibility model: WFH days per week 2.5X

11. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 10 Alternative lodging products like private rentals are making their foray into corporate travel. But not all companies embrace non-hotel options. Source: Deloitte Corporate Travel Survey 2022, N=150 executives with oversight of business travel policy, spend and strategy; Questions: When it comes to lodging products aside from hotels, what is your company’s approach? 49% 34% 23% 9% Do not reimburse for stays in non-hotel lodging Reimburse employees for most alternative lodging, but have no agreements in place Agreements with specific branded apartment/home rental providers are in place Non-traditional content such as apartments/rentals is part of our corporate booking tool While the pandemic has definitely spurred high demand for rentals on the leisure side, it has not brought a big change in how corporations treat alternative lodging. Only 1 in 10 companies say they developed their policy on non-hotel lodging during the pandemic. Approach to non-hotel lodging products

12. © Deloitte Development LLC. All rights reserved. Hospitality Accounting Update 11 SEC proposed climate and cyber disclosure rules: What you can do now to prepare Kristen Sullivan Audit & Assurance Partner Deloitte & Touche LLP ksullivan@deloitte.com

13. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 12 Companies need to address data preparedness • 57% of survey respondents indicate that data availability (access) and data quality (accuracy/completeness) remain their greatest challenges with respect to ESG data for disclosure • 89% note a likelihood that their organization will enhance its ESG control environment Preparing for high-quality disclosures Deloitte ESG Executive Survey Governance and organizational capacity are critical to ESG efforts • 21% currently have an ESG council or working group in place to drive strategic attention to ESG topics; 57% are actively working to establish one • 82% believe they will need additional resources to generate ESG disclosures that meet the information needs of critical stakeholders Companies should take a hard look at how technology may impact measurement, reporting, and disclosures • 92% believe that their organization needs to invest more in technology to address demand for consistent and reliable measurement, reporting, and disclosures Companies are taking action by obtaining assurance on data reported • Three out of four executives plan to obtain assurance over ESG disclosures in the next reporting cycle, indicating the importance of applying independence and objectivity to enhancing the reliability of this information 2 1 3 4

14. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 13 Overview of the key challenges of Travel & Tourism businesses Internal and External Challenges Outlined by the World Travel and Tourism Council Internal Challenges External Challenges Target & Strategy Definition Measuring & Monitoring Information & Customer Behaviour Difficulties with defining a long-term net-zero target Difficulty in measuring ESG data across the company and value chain Lack of transparency in sustainability information display High costs associated with sustainability premium Limited willingness to pay for sustainable products Selecting the right key levers and initiatives Difficulty in measuring the ROI from carbon-related efforts Technology & Infrastructure Financing & Budgeting Leadership & Organization Affordability of available technologies Lack of understanding of emerging technologies Dependency on infrastructure Lack of financial resources. No budget allocation for climate related activities Limited dedicated team, organisational knowledge, or sufficient capabilities Regulation & Reporting No clear link to business value or competitive advantage Lack of support from leadership Insufficient regulatory incentives to support transition Lack of transparency regarding upcoming regulations Inconsistency of carbon metrics and methodologies for reporting

15. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 14 Industry Scope 1 (average share in %) Scope 2 (average share in %) Scope 3 (average share in %) Accommodation 8% On-site gas and fuel consumption, on-site vehicles 37% Building energy consumption (in-house laundry, lighting, energy use), office heating, cooling, and electricity 55% External laundry services, waste disposal, F&B supply and production, staff travel Tour Operators (asset light – do not own hotels, airplanes, or cruise ships) 2% Office gas consumption and owned vehicle emissions 6% Office heating and energy consumption 92% Business travel, commute, transport & distribution, electricity, brochures, waste Tour Operators (asset heavy –own hotels, airplanes, or cruise ships) 95% Fuel, on-board power generation, vehicle emissions, major & retail premises gas and fuel consumption 1% Major premises energy consumption, office heating, cooling, and ground & port electricity 4% Business travel, commuting, F&B supply and production, waste disposal, up and downstream transportation & distribution Aviation 80% Aircraft fuel, vehicles in airport operations <1% Office heating and energy consumption, ground electricity 20% Supply chain fuel, capital goods, purchased goods, downstream transport, and distribution Cruises 99% Ship fuel, on-board power generation for support functions 1% Office heating, cooling, and electricity, port electricity <1% or not disclosed Commuting, passenger transportation F&B supply & production, fuel transport, waste OTAs/Tas 9% Office gas consumption and owned vehicle emissions 55% Office/data centre heating, cooling, and electricity 36% Business travel, staff commuting, waste management, purchased goods and services Overview of reported emission profiles of the Travel & Tourism industries in focus Internal and External Challenges Outlined by the World Travel and Tourism Council Note: The emission profiles are estimates based on a sample of business emission analysed for this report. Selection metrics varied by industry: for details, please see Exhibit 33). Although the profiles have been discussed and verified with companies directly, considering the wide variety of business models even within each focus industry and differing approaches to calculating Scope 1, 2, 3 emissions, they should only be seen as indicative profiles.

16. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 15 In March 2022, the SEC began issuing proposed rulemaking that would require registrants to provide enhanced ESG disclosures with more expected in the coming months related to human capital and governance SEC Rule Making Update Cybersecurity Proposed March 9th , 2022 Enhanced disclosures on cybersecurity incidents and cybersecurity risk, management, strategy and governance Climate Proposed March 21st , 2022 Enhanced and standardized climate disclosures related to Climate and Risk Strategy, Targets & Metrics, Scope 1, 2 & 3 GHG Emissions • Potential impact to quarterly 10-Qs and annual 10-K • 60-day comment period from date of proposal • Climate disclosure rule comment period extended to June 17, 2022 • Cyber disclosure rule comment period is over • Disclosures will be both qualitative and quantitative • Impacts all types of periodic SEC filers, including domestic registrants, certain foreign private issuers, smaller reporting companies, and emerging growth companies.

17. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 16 1. 2022 Deloitte CxO Sustainability Report. Deloitte. 2022. 2. ESG Reporting and Attestation: A Roadmap for Audit Practitioners CAQ. 2021. 3. The Enhancement and Standardization of Climate-Related Disclosures for Investors. SEC. March 21, 2022. Today… • Oversight of ESG is often not clearly established or defined, though governance and organizational capacity are critical to managing climate-related efforts.1 • Timeliness for data collection and reporting typically extend beyond current 10-K filing deadlines.2 • Data processes and controls over climate-related information are generally not as mature as financial reporting processes and controls.1 • Climate-related disclosure is voluntary. Companies use a variety of sustainability reporting frameworks and standards, and disclosure outlets.2 • Assurance—an avenue to quality, accurate, and reliable disclosure—is currently not required.1 Under the proposed rule, registrants would be required to disclose3… 1. Governance of climate-related risks, how identified climate-related risks have or are likely to have a material impact on a company’s strategy, business model, outlook over short-, medium-, or long-term, and risk management processes. 2. Climate-related financial statement metrics (e.g., disaggregated climate impacts on financial statement line items) and impact of climate-related physical events and transition activities on estimates and assumptions. 3. Greenhouse gas (GHG) emissions, including Scope 1 and 2 (and Scope 3 phased in if material or if registrant has Scope 3 target). 4. Reasonable assurance, phased in for accelerated and large accelerated filers over certain GHG emissions disclosures; limited assurance precedes. 5. Information about climate-related targets and transition plans. Call to Action: What this means for your organization SEC Proposal: Enhancement and Standardization of Climate-Related Disclosures

18. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 17 Financial Statements Outside the Financial Statements Disclosure Required For climate-related events and transition activities: (1) financial impact metrics (2) expenditure metrics (3) discussion of the impact on financial estimates and assumptions • GHG emission disclosures for Scopes 1, 2 and 3 • Climate governance • Climate-related risks and opportunities • Climate risk management • Climate targets and goals Controls and procedures Subject to internal control over financial reporting Subject to disclosure controls and procedures Attestation Part of financial statement & ICFR audit Phase-in to reasonable assurance over Scope 1 & 2 GHG emission disclosures for large accelerated and accelerated filers Timeline for Proposed Climate Rule (Illustrative timeline for calendar year end filers) 2021 Report (filed in 2022) 2022 (filed in 2023) 2023 (filed in 2024) 2024 (filed in 2025) 2025 (filed in 2026) 2026 (filed in 2027) 2027 (filed in 2028) Large accelerated filers with reasonable assurance All disclosures excl. Scope 3 for large accelerated filers Proposal release 60-day comment period (extended through June 17, 2022) All disclosures for large accelerated filers with limited assurance All disclosures excl. Scope 3 for accelerated filers All disclosures for accelerated filers with limited assurance Accelerated Filers with reasonable assurance All disclosures excl. scope 3 for nonaccelerated filers All disclosures for nonaccelerated filers All disclosures excl. Scope 3 for smaller reporting companies Proposed disclosure location and timeline SEC Proposal: Enhancement and Standardization of Climate-Related Disclosures

19. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 18 • GHG information to be disclosed: • Disaggregated by each greenhouse gas • In the aggregate • Gross, excluding offsets • Intensity (per $ revenue and per economic unit) • Methodology (e.g., approach, assumptions) • Safe harbor for Scope 3 GHG emissions disclosures • No attestation requirement • Voluntary GHG reporting compared to reporting in financial filings –differences that impact materiality: • Users of the disclosures • Disclosure requirements • Scope 3 GHG emissions disclosure is required: • If material • If registrant has set a GHG reduction target • GHG Protocol: Company may apply; 1) equity share or a 2) control approach • SEC proposed rule: • Boundary must be consistent with consolidated financial statements • Registrants already reporting under GHG Protocol will need to revise boundary to align with financial statements • Scope 1 and 2 GHG emissions subject to limited assurance (phase-in period), followed by reasonable assurance. • Requirements for attestation are consistent with the standards issued by the AICPA, PCAOB, and IAASB. Assurance Organizational Boundary Materiality Scope 3 GHG emissions Proposed disclosure location and timeline SEC Proposal: Enhancement and Standardization of Climate-Related Disclosures

20. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 19 Establish or Refine Climate Governance • Identify Board and Management oversight on climate-related matters and define clear roles, responsibilities, and charters. Establish Controls over Climate-Related Data • Assess the strength of processes and controls over climate- related data, leveraging existing financial reporting controls. Think Strategically • Understand disclosure requirements for climate targets, preparing for transparency on progress and transition plans. Identify Climate Risks and Opportunities • Identify physical and transition risks and opportunities (e.g., legal/policy, market, product, physical hazards) to business. Be Transparent • Prepare for accelerated reporting timelines, similar to financial reporting, and establish plan to obtain and/or increase the level of assurance. 1 2 Include the Right People • Perform stakeholder engagement, including education on climate-related risks, data collection, and target setting. 3 Build Reporting Agility • Enhance data quality, timeliness, automation, and relevance by standardizing governance and controls to prepare for assurance-ready disclosure. 4 5 6 7 Climate Considerations 7 What now? How to prepare in 7 steps SEC Proposal: Enhancement and Standardization of Climate-Related Disclosures

21. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 20 Internal control related questions and actions to take Governance is a key component of disclosure Climate- and Cyber-Related Governance Have you evaluated the maturity of existing controls to enhance data accuracy and completeness? • Inspect methodologies for data collection, measurement and/or estimation (i.e., disparate data sources, varying units, conversion factors) • Define internal process controls and general IT controls (GITCs) to mitigate identified climate and cyber-related risks 3. Identify controls 1. Define disclosure objectives Have you established, documented and communicated internal and external climate and cyber-related data timelines, aligned with financial reporting? • Review the current-state of processes and controls around existing climate and cyber disclosure • Understand existing quantitative and qualitative data governance structures to identify gaps and meet near- and long-term reporting requirements 2. Assess disclosure risks Have you identified potential risks that could impact climate- and cyber-related reporting objectives? • Determine relevant data sources, systems, and process owners via walkthroughs • Obtain end-to-end climate and cyber processes through narratives and flowcharts • Identify and document data and IT system limitations, assumptions, and estimates 4. Evaluate effectiveness Have you responded to feedback and remediated control gaps and deficiencies? • Assess design, implementation, and operating effectiveness of controls • Inquire on remediation of control gaps and deficiencies timely and implement ongoing process improvements • Assess whether controls over climate and cyber disclosure are integrated into enterprise risk management and Internal Audit plans Internal Controls over Climate- and Cyber-Related Data

23. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 22 Agenda Cyber Defense Landscape Overview How cyber incidents may impact organizations and why is cyber defense important? How can organization strengthen their Cyber defenses? 1 2 3

24. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 23 Cyber Defense Landscape Overview Market forces have changed the way organizations operate . . . Constant data flow across organizations enables new ways of value creation, connecting lines of business and using customer data to enrich experiences. Today’s organizations run an array of technologies that combine on-premises infrastructure with hybrid information technology (IT) and an assortment of third-party cloud providers. The rapid transition to remote work becoming a permanent feature of employment has increased organization’s attack surfaces with little time to consider security implications . . . Inadequate cyber defense can have lasting impact on an organization . . . Business Operation Disruption Inadequate business continuity plans may inhibit organizations’ ability to recover from potential incidents leading to loss of business Vulnerability Exposure Unpatched IT systems and zero-day vulnerabilities can risk introducing back- doors that can allow threat actors to gain access and exfiltrate sensitive information . . . which has increased their attack surface Organizations have increased their reliance of 3rd party vendors, which increases the risk of exposure through them 3rd Party & Vendor Risk Sophisticated Hackers/Hacktivists/Nation State threat actors have increased their surveillance on hotels and their guests to track high-profile targets Cyber Espionage

25. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 24 17% The following are key statistics that provide a high-level overview of what the cybersecurity defense landscape looks in its current state among the “Deloitte 2021 Future of Cyber Survey”1 participants. How cyber incidents may impact organizations and why is cyber defense important? 32% 22% 19% 17% 17% 16% 14% 3% 1Note – This survey was commissioned by Deloitte LLP and published in 2021. C-level executives at companies with at least $500M in annual revenue were surveyed, resulting in 600 individuals from organizations across EMEA, the Americas, and Asia Pacific. Please see this document for additional information. Operational Disruptions Intellectual Property Theft Drop in Share Price Loss of Customer Trust/Negative Brand Change in Leadership Regulatory Fines/Reputation Loss Loss of Revenue Negative Talent/Retention Impact Other

27. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 26 The role and position of the CISO has become increasingly important as the cyber landscape broadens, It starts at the top- “Empower your CISO” Resources The CISO should have the necessary budget for resource and talent investments to properly safeguard the organization Authority The CISO should have the authority to influence all lines of business and efficiently gather information across the organization Communication The CISO should have direct communication and relationships with the CEO, Board, and Senior Management TECHNOLOGY OPERATIONS AND SYSTEMS DEVELOPMENT Chief Information Security Officer (CISO)

28. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 27 Organizations must be able to assess risk in terms they can understand and translate them what is important for their business Assess your Cyber Risk – “Understand your weakness and develop a pan” Assess your Cyber Risk • Organizations should conduct assessments (e.g., cyber maturity assessment, risk analysis, threat modeling) to assess risk throughout their environment • Organizations should utilize results from the assessments and compare against current cyber threats to understand their current risk landscape • Organizations will be able to determine where to best invest resources to properly mitigate any identified risks Assess Comprehend Invest

29. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 28 Evolve risk management processes to achieve end-to-end visibility Create effective governance across lines of business lines Keep C-Suite and the board informed on your Cyber portfolio and requirements Security should not be a blocker, but a business enabler. In order to achieve this its important to have appropriate governance and communication throughout the organization Communicate – “Make Cyber collaborative” Challenge Given the rise of hyper digitization and move to hybrid work environment, businesses have been forced to rapidly scale up to cope with the ‘new normal’. These changes often result in security being left behind or considered as an afterthought. The best way to address this challenge is by communicating and partnering with the business continuously. Approach 1 2 3

30. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 29 Cybersecurity skills CRISIS Too few professionals Too many THREATS © Deloitte Development LLC. All rights reserved. Hospitality Accounting Update 29

31. Hospitality Accounting Update © Deloitte Development LLC. All rights reserved. 30 To thrive in the digital age, businesses will need significant support from the broader technology and security community. Technology vendors, network and communications vendors, security consultants and payment ecosystem participants will all play an integral role in helping businesses achieve their strategic goals while simultaneously protecting PII, intellectual property and product safety. 35% 33% 32% Current cybersecurity capabilities In-house Co-sourced Outsourced ‫‏‬Source: Deloitte’s Cyber Risk in Consumer Business Study Bridging the Gap

32. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms. Copyright © 2022 Deloitte Development LLC. All rights reserved. This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

Hospitality Accounting Update Spring 2022

Hospitality Accounting Update Spring 2022

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Hospitality Accounting Update Spring 2022