First commercial rollout Ambient Experience with citizenM hotels pioneers new direction for hospitality industry

Amsterdam, The Netherlands – Philips has today announced the first commercial rollout of its integrated Ambient Experience for hospitality with the launch of the citizenM hotel chain in Amsterdam. Combining Philips’ strengths across a unique combination of products and broad portfolio of solutions the Ambient Experience, which was originally debuted at the London Simplicity Event in 2007, provides players in the hospitality sector with complete, custom-made and integrated solutions across ambience, infotainment, personal care and design value spaces.

Using our bespoke solutions, hotel partners are able to build a unique intimacy with their guests and remove the traditional feeling of anonymity from the hotel experience. As consumer choices are increasingly driven by emotional factors - beyond merely the functionality of a product - the Ambient Experience offers them immersive experiences that go 'beyond the product' and engage all the senses.

“The commercial rollout of our Ambient Experience for the hospitality sector is a further validation of the success of our simplicity vision and customer-centric approach,” according to Geert van Kuyck, Chief Marketing Officer at Philips. “By leveraging our unique combination of solutions we are leading the way in creating innovative, people-centric solutions and designs, thereby creating a more meaningful, personal and desirable proposition”.

In an increasingly competitive market, the hospitality sector is looking for new solutions to help them differentiate themselves and achieve global consistency in branding and experience. “With the Ambient Experience for hospitality we are able to put the consumer at the heart of the hotel experience,” Arnold Stokking, Senior Vice President Business Group Hospitality. “Our partnership with citizenM not only illustrates the direction that the hospitality industry is going in, but it also indicates the way forward for creating unique experiences for hotel guests”.

To further capitalize on its strong position in the hospitality sector Philips is leveraging its business synergies to create more innovative, customer-centric solutions based on complete value propositions. Earlier this month Philips also announced that is would build a customized Ambient Experience room with NH Hoteles to conduct an intensive two-year study into the optimization of well-being amongst hotel guests.

About the Ambient Experience for hospitality

Philips’ Ambient Experience provides guests with an unprecedented level of simplicity, customization and personalization. It is a bespoke solution that is fully customized according to the end-user’s wishes and needs. In collaboration with citizenM, Philips has custom-designed a host of interactive solutions and tools, collectively known as an Ambient Experience, to enable citizenM to change the face of the hotel experience and enable them to realize their vision of affordable luxury.

There are two main elements to the system. Firstly, the Ambient Experience combines a host of various ambient products, including dynamic LED lighting, VoiP phone, free wifi and FlatTV which contribute to a guest’s overall experience of the hotel room. Secondly, Philips has also created a unique back-end network design solution, which enables all different software platforms to work together seamlessly. This means that individual hotel rooms, and all functionality within the rooms, are linked to a central server that manages everything from room temperature and curtain settings, to the welcome message guests receive upon arrival in their room.

Through the system, all this information can be stored and linked to a personalized RFID card, meaning that the hotel remembers returning guests, their preferences and their visiting history. This can help hotels create a unique intimacy with their guests and remove the traditional feeling of anonymity from the hotel experience.

Benefits citizenM guests will be able to experience will include being able to:

• Register their personal profile online from home so that their preferences and wishes will be remembered upon every hotel visit
• Bypass the often tedious, emotional and extended process of checking in and out of their hotel room using a simple personal RFID card and central server
• Control the character of the ambient lighting in their room according to their mood or the atmosphere they want to create, using a simple, intuitive interface called a MoodPad.
• At the touch of a button, guests can switch from warm colors, closed blinds, ambiance music and a cozy temperature to more functional lighting and ambience that is optimized for mobile working
• Enjoy free access to ambient videos, movie channels and online content through their LCD TV as well as free music on demand and wireless internet access.

The grand opening of the citizenM hotel in Amsterdam will take place on June 24, 2008.

About Royal Philips Electronics | Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lighting and consumer lifestyle, delivering people-centric, innovative products, services and solutions through the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs approximately 134,200 employees in more than 60 countries worldwide. With sales of EUR 27 billion in 2007, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, as well as lifestyle solutions for personal wellbeing.