Presentation of 1Q 2012 Results 26 April...
Transcript of Presentation of 1Q 2012 Results 26 April...
Presentation of 1Q 2012 Results 26 April 2012
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The value of Stapled Securities and the income derived from them may fall as well as rise. Stapled Securities are not obligations of, deposits in, or guaranteed by the H-REIT Manager or M&C Business Trust Management Limited, as trustee of CDL Hospitality Business Trust (the “HBT Trustee-Manager”), or any of their respective affiliates.
An investment in Stapled Securities is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request that the H-REIT Manager and/or the HBT Trustee-Manager redeem or purchase their Stapled Securities while the Stapled Securities are listed. It is intended that holders of the Stapled Securities may only deal in their Stapled Securities through trading on Singapore Exchange Securities Trading Limited (the “SGX-ST”). Listing of the Stapled Securities on the SGX-ST does not guarantee a liquid market for the Stapled Securities.
This presentation contains certain tables and other statistical analyses (the "Statistical Information") which have been prepared by the H-REIT Manager and the HBT Trustee-Manager. Numerous assumptions were used in preparing the Statistical Information, which may or may not be reflected herein. As such, no assurance can be given as to the Statistical Information’s accuracy, appropriateness or completeness in any particular context, nor as to whether the Statistical Information and/or the assumptions upon which they are based reflect present market conditions or future market performance. The Statistical Information should not be construed as either projections or predictions or as legal, tax, financial or accounting advice.
Market data and certain industry forecasts used throughout this presentation were obtained from internal surveys, market research, publicly available information and industry publications. Industry publications generally state that the information that they contain has been obtained from sources believed to be reliable but that the accuracy and completeness of that information is not guaranteed. Similarly, internal surveys, industry forecasts and market research, while believed to be reliable, have not been independently verified by the H-REIT Manager or the HBT Trustee-Manager and neither the H-REIT Manager or the HBT Trustee-Manager makes any representations as to the accuracy or completeness of such information.
This document may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other developments or companies, shifts in expected levels of occupancy rate, property rental income, charge out collections, changes in operating expenses (including employee wages, benefits and training costs), governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business.
You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events.
This document and its contents shall not be disclosed without the prior written permission of the H-REIT Manager or HBT Trustee-Manager.
Disclaimer
3
Table of Contents
Highlights 4
Performance of CDL Hospitality Trusts 8
Healthy Financial Position 14
Outlook 17
Management Strategy 27
Annexe 30
Background and Structure of CDL Hospitality Trusts 30
Information on CDL Hospitality Trusts Properties 40
4
Highlights
5
Executive Summary
(1) Represents income available for distribution per Stapled Security (before deducting income retained for working capital). Income available for distribution per Stapled Security (after deducting income retained for working capital) for 1Q 2012 is 2.78 Singapore cents.
(2) The acquisition of Studio M Hotel was completed on 3 May 2011.(3) Income available for distribution (after deducting income retained for working capital) for 1Q 2012 is S$26.9 million.
Financial Highlights(1Q 2012)
19.0% increase year-on-year (“y-o-y”) in gross revenue for 1Q 2012
Record 1Q income available for distribution per Stapled Security of 3.09 Singapore cents (1)
Mainly attributed to:Organic growth from Singapore and overseas properties; Contribution from Studio M Hotel (2), which accounted for approximately S$2.7 million of the gross revenue increase; andReceipt of a full year’s variable income of S$1.8 million (or A$1.3 million) as compared to S$0.84 million (or A$0.65 million) recognised in 1Q 2011 for an 8-month period
CDLHT Financial Highlights (S$’000)
1Q ’12 1Q ’11 Change
Gross Revenue 38,423 32,301 +19.0%
Net Property Income 36,030 30,120 +19.6%
Income Available for Distribution (3)
(bef. deducting income retained for working capital) 29,839 25,347 +17.7%
1
6
Executive Summary
Singapore Portfolio
Singapore Hotels (1) achieved RevPAR of S$213 in 1Q 2012, the highest 1Q RevPARrecorded since the inception of CDLHT, supported by a record 1Q average occupancy of 88.5%
CDLHT Singapore Hotels (1)
1Q ’12 1Q ’11 Change
Occupancy 88.5% 85.8% + 2.7 pp
ARR S$241 S$227 + 6.2%
RevPAR S$213 S$195 + 9.3%
2
(1) Singapore Hotels comprise Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel, Novotel Singapore Clarke Quay and Studio M Hotel. For comparative purposes, Studio M Hotel was excluded as it was acquired on 3 May 2011.
Australia Portfolio
CDLHT’s Australia Hotels continued to perform strongly in 1Q 2012
Performance is bolstered by the buoyant natural resource sector and static supply of hotel rooms
7
Executive Summary
Asset Enhance-
ment
Novotel Singapore Clarke Quay:
Upgrade of bathrooms and room touch-ups for remaining 44 guest rooms completed in mid January 2012
Bathroom Standard Room
3
8
Performance of CDL Hospitality Trusts
9
Singapore Hotels Y-o-Y Performance: 1Q ’11 Vs 1Q ’12
88.5%85.8%
70%
80%
90%
100%
1Q '11 1Q '12
227241
150
175
200
225
250
1Q '11 1Q '12
S$ +6.2%
+2.7pp
Average Room Rate (ARR) (1)
Occupancy (1)
(1) Singapore Hotels comprise Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel, Novotel Singapore Clarke Quay and Studio M Hotel. For comparative purposes, Studio M Hotel was excluded as it was acquired on 3 May 2011.
195
213
150
175
200
225
1Q '11 1Q '12
S$
+9.3%
Revenue Per Available Room (RevPAR) (1)
10
Record High RevPARs
CDLHT Singapore Hotels achieved the highest recorded 3Q, 4Q and 1Q RevPARs since inception of CDLHT
CDLHT Singapore Hotels Quarterly RevPAR Comparison (1), (2)
(1) Singapore Hotels comprise Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel, Novotel Singapore Clarke Quay and Studio M Hotel. For comparative purposes, Studio M Hotel was excluded as it was acquired on 3 May 2011.
(2) For comparative purposes, the RevPARs from 3Q 2008 onwards have been restated to exclude adjustments for F1 levies.
151
170 176 191
208 222
210
188
150 134
152 161
174
195 199194195
205 211 205213
120
140
160
180
200
220
240
1Q 2Q 3Q 4Q
S$
2007 2008 2009 2010 2011 2012
Record High 3Q Record High
4Q
Record High 1Q
11
Rate Growth Supported by Strong Occupancies
CDLHT Singapore Hotels have achieved rate growth y-o-y on the back of strong occupancies, benefiting from the structural boost in the tourism landscape
CDLHT Singapore Hotels Quarterly Occupancy, ARR & RevPAR (1)
(1) Singapore Hotels comprise Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel, Novotel Singapore Clarke Quay and Studio M Hotel. For comparative purposes, Studio M Hotel was excluded as it was acquired on 3 May 2011.
85% 86% 90% 89% 84% 87% 86% 84% 75% 75% 86% 89% 84% 88% 92% 90% 86% 88% 89% 89% 89%
179197 196
216
247 255 245224
201178 176 181
207220 217 215
228 232 236 232 241
151170 176
191208
222210
188
150134
152 161174
195 199 194 195 205 211 205 213
40%
50%
60%
70%
80%
90%
100%
1Q'0
7
2Q'0
7
3Q'0
7
4Q'0
7
1Q'0
8
2Q'0
8
3Q'0
8
4Q'0
8
1Q'0
9
2Q'0
9
3Q'0
9
4Q'0
9
1Q'1
0
2Q'1
0
3Q'1
0
4Q'1
0
1Q'1
1
2Q'1
1
3Q'1
1
4Q'1
1
1Q'1
2
0
50
100
150
200
250
300S$
Occ ARR RevPAR
12
2.64
3.09
1.00
1.50
2.00
2.50
3.00
3.50
1Q '11 1Q '12
Singapore cents
32,301
38,423
20,000
30,000
40,000
1Q '11 1Q '12
S$ '000
CDLHT Y-o-Y Performance: 1Q ’11 Vs 1Q ’12
(1) Represents income available for distribution per Stapled Security (before deducting income retained for working capital). The income available for distribution per Stapled Security (after deducting income retained for working capital) for 1Q 2012 is 2.78 Singapore cents.
+19.0%
36,030
30,120
20,000
30,000
40,000
1Q '11 1Q '12
S$ '000+19.6%
Gross Revenue Income Available For Distribution Per Unit (1)
Net Property Income
+17.0%
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CDLHT Asset Portfolio
Valuation by Property and Geography (1)
Singapore Portfolio 82.5%
Singapore 82.5%Orchard Hotel 22.2%
Grand CopthorneWaterfront Hotel
17.2%
Novotel Singapore Clarke Quay
14.6%
M Hotel 11.4%
Studio M Hotel 8.0%
Copthorne King’s Hotel 6.4%
Orchard Hotel Shopping Arcade
2.7%
Overseas Portfolio 17.5%
Australia 13.0%Novotel Brisbane 4.6%
Mercure & Ibis Brisbane 4.0%
Mercure Perth 2.8%
Ibis Perth 1.7%
New Zealand 4.5%Rendezvous Grand Hotel Auckland (2)
4.5%
(1) Valuation of all properties as of 31 December 2011.(2) The Rendezvous Hotel Auckland was rebranded Rendezvous Grand Hotel Auckland with effect from 1 April 2012.
14
Healthy Financial Position
15
2,118 2,094
500
1,000
1,500
2,000
2,500
31 Dec '11 31 Mar '12
S$ M
Healthy Balance Sheet
(1) Debt value is defined as bank borrowings and medium term notes, both of which are unsecured.
536 536
0
200
400
600
31 Dec '11 31 Mar '12
S$ M
25.6%25.3%
0%
10%
20%
30%
40%
31 Dec '11 31 Mar '12
Debt Value (1) Debt to Assets Ratio
Total Assets
Ample debt headroom for acquisition opportunities as they surface
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Credit MetricsUnsecured Debt Terms
S$413.6 million medium term notes issued under the S$1 billion Multi-currency Medium Term Note ProgrammeTenure: 3-year (fixed and variable rate notes) and 5-year (floating rate notes)
(1) Interest cover is computed using the 1Q 2012 net property income divided by the total interest paid/ payable in 1Q 2012.
Debt Facility Details
9.7 x (1)
S$300 million uncommitted multi-currency bridging facility
S$200 million multi-currency committed revolving credit facilityTenure: 3-year term
Revolving Credit Revolving Credit FacilityFacility
Medium Term Medium Term NotesNotes
Acquisition Acquisition FacilityFacility
Fitch Issuer Fitch Issuer Default Rating Default Rating
Interest Coverage Interest Coverage Ratio Ratio
BBB-
Debt to Assets Debt to Assets RatioRatio
25.6%
Weighted Weighted Average Debt to Average Debt to
MaturityMaturity2.1 years
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Outlook
18
772690
791 779726 750
882 845799
845 830908
857929 939 946 951
997947 979 964
1,127
1,056990
1,072 1,1031,054 1,080
1,2741,178
1,0341,085
1,027
1,2161,1981,133
971
1,095
500
750
1,000
1,250
1,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
'000
2009 2010 2011 2012Source: Singapore Tourism Board (STB)
New record high monthly visitor arrivals since December 2009
February 2012 marked the 12th consecutive month since March 2011 where visitor arrivals surpassed the one million mark
YTD February 2012 visitor arrivals registered 13.9% y-o-y growth
New Record High Monthly Visitor Arrivals to Singapore for Last 27 Months
Monthly Visitor Arrivals
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Top 10 Inbound MarketsY-o-Y Change for YTD Feb 2012 (1)
Geographical Mix of Visitor Arrivals YTD Feb 2012
All the top 10 inbound markets recorded growth for YTD Feb 2012
YTD Feb 2012 visitors arrivals: 2,330,999
Continued Growth in Arrivals from Top Markets
Indonesia19%
P R China15%
Malaysia8%
Australia7%India
5%Japan5%
Philippines4%
South Korea
4%
UK4%
USA3%
Others26%
1.7%
1.8%
4.6%
5.0%
10.1%
10.6%
12.0%
14.7%
17.2%
27.5%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
Australia
Philippines
India
UK
Japan
Malaysia
USA
Indonesia
South Korea
PR China
(1) The top 10 inbound markets are ranked according to growth rates in descending order.Source: Singapore Tourism Board (STB)
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7.66.1
8.38.9
9.8 10.3 10.1 9.7
11.613.2
17.0
2.3
7.5
14.5
2.0
-
3.0
6.0
9.0
12.0
15.0
18.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2015
Million
Full Year Visitor Arrivals YTD Feb Visitor Arrivals
STB Expects Strong Growth in Visitor Arrivals
Historical and Forecasted Visitor Arrivals in Singapore
Visitor arrivals of 13.2 million exceeded STB’stop end forecast of 13 million for 2011
For 2012, STB forecasted 13.5 to 14.5 million visitors, implying a 2.5% to 10.1% growth y-o-y
YTD February 2012 visitor arrivals grew 13.9% y-o-y
Strong momentum bodes well for CDLHT
Sep 11 & SARS Sub-Prime
10-year CAGR (1) = 5.8%
Implied 4-year CAGR (1), (2) = 6.6%
(1) CAGR denotes compounded annual growth rate.(2) Implied 4-year CAGR is computed on the basis of the actual arrivals of 13.2 million visitors for 2011 and 17 million arrivals by 2015.(3) STB’s forecast for 2012 is 13.5 to 14.5 million visitor arrivals.Source: Singapore Tourism Board (STB)
STB’s Forecast (3)
(3)13.5 to
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Growth Supported by Continued Makeover of Singapore into a World-Class Entertainment Hub…
Upcoming attractions will continue to enrich the experience of visitors…
Incr
easi
ng e
nter
tain
men
t quo
tient
Gardens by the Bay
3Q 2012 (1)
River Safari Singapore Sports Hub National Art Gallery
2Q 2014 (1) 2015 (1)
Universal Studios Singapore, RWS
Nightclubs at Crystal Pavilion and ArtScience Museum, MBS
Maritime Experiential Museum and Aquarium, RWS
Shopping and dining, MBS
Integrated Resorts have added diversity and excitement to the tourism landscape…
(1) Completion / opening dates are preliminary indications as publicly announced and may be subject to change.Note: Images courtesy of Marina Bay Sands, Singapore Tourism Board (STB), Singapore Sports Council, Resorts World Sentosa, Wildlife Reserves SingaporeSources: Channel NewsAsia, MyPaper, Singapore Tourism Board (STB), The Business Times, The Straits Times, TODAY, Wildlife Reserves Singapore, CDLHT research
Bay South, Jun 2012 (1)
3Q 2012 (1) 2Q 2014 (1) 2015 (1)2Q 2014 (1)
Family, fun & sports
Shopping & dining
Arts, heritage & culture
Clubs & buzzing nightlife
Gaming
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…Transformation into an Asian Home Port for World’s Leading Cruise Liners…
Several of the world’s leading cruise companies, such as Star Cruises, Royal Caribbean International, Costa Cruises, Norwegian Cruise Line, P&O and Silversea Cruises, have made Singapore a home port for their Asian operations
Among the new entrants reportedly coming to Singapore for 2011/12 period are US-based Seabourn, French cruise line Compagnie du Ponant, Germany-based AIDA Cruises and Italy’s Costa Cruises
Growing Cruise Hub
The S$500 million ICT slated to open in 2Q 2012
Two new berths at ICT will double Singapore’s cruise berthing capacity
ICT to be able to accommodate the world’s largest cruise ships
New Tourism Infrastructure – International Cruise Terminal (“ICT”)
(1) Sources: Business Monitor International – Singapore Tourism Report – Q4 2011, Business Times, Channel News Asia
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…Broadening Travel Options and Lowering Travel Costs…
Jetstar committing another US$500 million into its Singapore hub
Additional seven planes, boosting its operations here by an extra 40 weekly flights
First LCC to fly Singapore-Sydney starting mid 2012
Targeting Australia, New Zealand, Middle East, North and South Asia
Note: Chart is a diagrammatic depiction, not drawn to scale. Airplanes images courtesy of airplaneclipart.comSources: Channel NewsAsia, The Business Times, The Edge, Changi Airport Group (Changi Connection Dec 2011 Issue), CDLHT research
Traffic on LCCs grew 26.3% y-o-y for 2011
LCCs have gone from nothing to about 28.6% of all flights at Changi Airport in seven years
Changi Airport serves 13 LCCs from at least six countries now
Daily flights to New Delhi & Mumbai
With addition of IndiGo in Sep 2011, Singapore will be linked to India by ~380 weekly flights with connections to 11 destinations
Strong growth in low cost carrier (“LCC”) passenger traffic
IndiGo Airlines
India’s largest LCC
Scoot
Singapore Airlines’new long-haul LCC
Jetstar
More investment into Singapore hub
Singapore
Sydney
Singapore
India
Jetstar
Singapore
US$500 mil
24
Meetings, Incentives, Conventions and Exhibitions – Next Stage of Tourism Growth
Sources: Channel NewsAsia, The Business Times, Singapore Tourism Board (STB)
Meetings, Incentives,
Conventions and Exhibitions
(“MICE”)
1,460
2,130
1,000 1,500 2,000 2,500
2010
2011
No. of events
+46%
On top of the S$2 billion committed in 2005, the government is pumping S$905 million over the next 5 years for next stage of tourism growth
One third set aside to develop the MICE sector
Of the 13.2 million visitor arrivals in FY 2011, STB estimates that a third of the arrivals were here for business events
No. of conventions, conferences and tradeshows
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Limited New Supply(1) of Rooms in 2012
(1) New supply of rooms is a summation of new rooms deducted by existing rooms taken out of inventory for redevelopment.(2) Implied 4-year CAGR is computed on the basis of the actual arrivals of 13.2 million for 2011 and 17 million arrivals by 2015.(3) Consists of both gazetted and non-gazetted room count as at 31 Dec 2011.Sources: The Business Times, Singapore Tourism Board (STB), Horwath HTL (as at January 2011) and CDLHT research.
Current and Expected Hotel Room Supply in Singapore
Supply is expected to grow at a CAGR of 3.5% for the next 3 years Lower than the 4-year CAGR of 6.6% expected for visitor arrivals (2)
49,719
55,164
0
1,5302,054
1,861
35,000
40,000
45,000
50,000
55,000
60,000
2011 2012 2013 2014 Total 2014
No. of Hotel Rooms 3-year CAGR = 3.5%
Current estimated hotel supply Estimated future net hotel supply Estimated hotel supply by end-2014Key:
(3)
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Potential Supply of New Singapore Hotel Rooms Until 2014
Source: Horwath HTL (as at January 2012) and CDLHT research
Name of Hotel No. of Rms
HorwathRating Location Expected
Opening
Bay Hotel 333 Mid Tier City Centre 2012
Parkroyal at CBD 363 Mid Tier City Centre 2012
Hotel Grand Central (Redevelopment)
-400 Mid Tier City Centre 2012
Dorsett Hotel & Residences 285 Mid Tier City Centre 2012
Parkroyal Serviced Suites 90 Upscale/Luxury City Centre 2012
Aqueen Hotel Jalan Besar 86 Economy Outside City Centre 2012
Aqueen Hotel Paya Lebar 100 Economy Outside City Centre 2012
Park Avenue Changi 170 Mid Tier Outside City Centre 2012
Mövenpick Hotel Sentosa 61 Upscale/Luxury Sentosa 2012
RWS - Equarius Hotel 172 Upscale/Luxury Sentosa 2012
W Hotel Sentosa Cove 240 Upscale/Luxury Sentosa 2012
RWS - Spa Villas 30 Upscale/Luxury Sentosa 2012
Carlton Project 374 Mid Tier City Centre 2013
Year No. of Rms Luxury / Upscale Mid-Tier Economy2012 1,530 593 39% 751 49% 186 12%
2013 2,054 866 42% 928 45% 260 13%
2014 1,861 305 16% 1,151 62% 405 22%
Total (2012 – 2014) 5,445 1,764 32% 2,830 52% 851 16%
Name of Hotel No. of Rms Horwath Rating Location Expected
Opening
Holiday Inn Express (Orchard) 220 Mid Tier City Centre 2013
Ogilvy Centre (Sofitel) 134 Upscale/Luxury City Centre 2013
Traders Hotel (former Phoenix Hotel)
502 Upscale/Luxury City Centre 2013
Aqueen Hotel Geylang 100 Economy Outside City Centre 2013
Aqueen Hotel Tyrwhitt 160 Economy Outside City Centre 2013
Fairy Point Hill 188 Mid Tier Outside City Centre 2013
Modena Changi Business Park 146 Mid Tier Outside City Centre 2013
One Farrer Hotel 230 Upscale/Luxury Outside City Centre 2013
Holiday Inn Express (Havelock) 460 Mid Tier City Centre 2014
Robertson Quay Site 300 Mid Tier City Centre 2014
Westin SG Marina Bay (Asia Square Tower 2)
305 Upscale/Luxury City Centre 2014
Days Inn Balestier 405 Economy Outside City Centre 2014
Ramada Balestier 391 Mid Tier Outside City Centre 2014
27
Management Strategy
28
Management Strategy
Maximise revenue management opportunities
Implement asset enhancement initiatives to optimise asset potential
Pursue yield accretive, quality assets with investment rigour and disciplineTap on potential pipeline from M&C / CDLTap on global network for third party assets
Maintain a healthy balance sheetEnhance financial flexibility
Nurturing for Growth
Organic
Growth
Acqu
isitio
nFinancial
Foundation
Acquiring for Growth
Balancing the Foundation for Growth
29
Asset Enhancement Initiatives: Novotel Singapore Clarke Quay
Before
Upgrade of bathrooms and room touch ups for remaining 44 guest rooms completed in mid January 2012
Before After
After
Guest Rooms
Bath-rooms
30
Background and Structureof CDL Hospitality Trusts
31
Post IPO Performance
Background on CDLHT
IPO on 19 July 2006
Listed on SGX Mainboard
Sponsored by Millennium & Copthorne Hotels plc (listed on LSE)
First Hotel REIT in Asia ex Japan
Background
Source: Unit price data from Bloomberg
S$1,804 million as of 25 April 2012
Market Capitalisation
Unit price increaseIPO to 25 April 2012 = +125%
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
Jul-0
6
Sep-
06
Nov
-06
Jan-
07
Mar
-07
May
-07
Jul-0
7
Sep-
07
Nov
-07
Jan-
08
Mar
-08
May
-08
Jul-0
8
Sep-
08
Nov
-08
Jan-
09
Mar
-09
May
-09
Jul-0
9
Sep-
09
Nov
-09
Jan-
10
Mar
-10
May
-10
Jul-1
0
Sep-
10
Nov
-10
Jan-
11
Mar
-11
May
-11
Jul-1
1
Sep-
11
Nov
-11
Jan-
12
Mar
-12
IPO = S$0.83
Announcement of Rendezvous Hotel Auckland Acquisition
= S$1.10
Annoucement of Novotel Clarke
Quay Acquisition = S$2.01
Announcement of Equity Fund Raising
= S$2.28
31 Dec'07= S$2.35
High (10 Jul ’07) = S$2.66
31 Dec '08= S$0.730
31 Dec '09= S$1.75
Announcement of Australia Hotels Acquisition
= S$1.80
31 Dec'11= S$1.55
Announcement of Private Placement = S$1.89
31 Dec '10= S$2.08
Announcement of Studio M Acquisition
= S$1.94
25 Apr '12= S$1.87
31 Mar '12= S$1.74
32
Management services
and acts on behalf of the holders of
the HBT Units
CDLHT Structure
(1) Currently dormant.(2) To be appointed by HBT when HBT is activated.
Note: For simplicity, the diagram does not include the relationships in relation to Orchard Hotel Shopping Arcade. Orchard Hotel Shopping Arcade tenants will pay rent to H-REIT directly and H-REIT Manager will manage Orchard Hotel Shopping Arcade directly.
Holdings of Stapled Securities
Sponsor Investors
Master Lessees
Hotel Manager
DBS Trustee
M&C REIT Management Limited
(H-REIT Manager)
M&C Business Trust Management Limited
(HBT Trustee Manager)H-REIT (owns hotels)
HBT(1)
H-REIT HBT
≈35.3% as at 31 Mar 2012
≈64.7%as at 31 Mar 2012
Distributions
Stapling Deed
Lease of Hotels
Lease of Hotels
RentActs on behalf of the holders of H-REIT Units
Management services
Hotel Manager(2)
33
Blue Chip Sponsor and Parentage
Millennium & Copthorne Hotels plc City Developments Limited
One of the largest property developers in Singapore with a market capitalisation of ~S$9.4 billion (1)
Debt to assets ratio of 29% as at 31 Dec 2011
Listed on the London Stock Exchange with market capitalisation of ~ £1.5 billion (1)
Debt to assets ratio of 13% as at 31 Dec 2011
(1) As at 25 April 2012Source: Bloomberg
34
Summary of Leases and Lease Structures
Singapore IPO Portfolio & Studio M
Favourable Lease Structure in Base Portfolio
Rendezvous Grand Hotel Auckland (1):Base rent + Variable rentBase rent escalates at 2.75% per annumTerm of 10 years from 7 September 2006 with 5 year option
NZ RendezvousHigh Degree of Stability
Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel:20% of Hotel's revenue + 20% of Hotel’s gross operating profit, with a fixed rent floor of S$26.4 mTerm of 20 years from Listing with 20 year option
Orchard Hotel Shopping Arcade:H-REIT receives rents direct from tenants
Novotel Singapore Clarke Quay:Lease based on gross operating profit less Accor’s management feeVariable rental payment of more than 90% of gross operating profit, depending on Novotel Singapore Clarke Quay’s performanceTerm ~ 13.5 years from 7 June 2007, expiring 31 December 2020Lessee will provide a S$6.5 m reserve to fund shortfall in event annual rent is below S$6.5 m
Singapore NCQLease Structure with
Reserve and High Variable Rent
Australia PortfolioHigh Stability and Significant Upside
Potential
Novotel, Mercure & Ibis Brisbane, Mercure & Ibis Perth:Base rent + Variable rentBase rent: A$13.7 m per annumVariable rent: 10% of portfolio’s net operating profit in excess of base rentTerm ~ 11 years from 19 February 2010, expiring 30 April 2021
Studio M Hotel: 30% of Studio M Hotel’s revenue + 20% of Studio M Hotel’s gross operating profit, with a fixed rent floor of S$5.0 m for the initial 10 years of the lease 1st twelve months Guarantee Net Rent: S$9.24 million (or a net yield of ~6% per annum of purchase consideration of S$154.0 million)
(1) The Rendezvous Hotel Auckland was rebranded Rendezvous Grand Hotel Auckland with effect from 1 April 2012.
35
Income Stability from Minimum Rent
11.8
17.9
0
10
20
30
40
S$ M
Minimum Rent (1) (39.7%)
Variable Rent (60.3%)
Singapore Properties (1Q 2012) All CDLHT Properties (1Q 2012)
Overseas Properties (1Q 2012)
(1) For the purpose of computing minimum rent for 1Q 2012 for the Singapore properties, we have included the (i) prorated fixed rent from the IPO Hotels; (ii) prorated first 12-mth guarantee net rent from Studio M Hotel; (iii) S$1.3 million retail rent from Orchard Hotel Shopping Arcade; and (iv) prorated rent reserve provided by Accor S.A. for Novotel Singapore Clarke Quay.
(2) For the purpose of computing the minimum rent for 1Q 2012 for the overseas properties, we have included the prorated base rent from all the 6 Australia and New Zealand hotels.
Variable Rent, 51.3%
Minimum Rent, 48.7%
Gross Revenue (1Q 2012) S$38.4 million
6.9
1.8
0
5
10S$ M
Minimum Rent (2) (79.6%)
Variable Rent (20.4%)
Minimum Rent (1), (2)
29.7
8.7
36
Gross Revenue Breakdown: 1Q ’11 Vs 1Q ’12
Gross Revenue of CDLHT Properties
Key: Y-o-Y %Change
Studio M Hotel N.M.
Australia Portfolio + 19.6%
Rendezvous Grand Hotel Auckland (1) + 9.3%
Orchard Hotel Shopping Arcade + 3.7%
Copthorne King’s Hotel + 9.6%
M Hotel + 3.5%
Novotel Singapore Clarke Quay + 14.0%
Grand Copthorne Waterfront + 7.7%
Orchard Hotel + 9.6%6.7 7.3
5.6 6.1
4.85.5
4.04.1
2.52.71.31.32.4
5.3
6.3
2.2
2.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
1Q '11 1Q '12
S$ M
S$32.3M
S$38.4M
+ 19.0%
(1) The Rendezvous Hotel Auckland was rebranded Rendezvous Grand Hotel Auckland with effect from 1 April 2012.
37
Property Orchard Hotel
Grand Copthorne
Waterfront Hotel
M Hotel CopthorneKing’s Hotel
NovotelSingapore
Clarke Quay
Studio M Hotel
Orchard Hotel Shopping
Arcade
Singapore Portfolio
Number of Rooms 656 574 413 310 403 360 N/A 2,716
Valuation at 31 December 2011 S$450.0 M S$350.0 M S$232.0 M S$129.0 M S$296.0 M S$163.0 M S$54.8 M S$1,674.8 M
Acquisition Date July 2006 July 2006 July 2006 July 2006 June 2007 May 2011 July 2006 -
CDLHT Asset Portfolio – Singapore
38
CDLHT Asset Portfolio – Overseas
Property Rendezvous Grand
Hotel Auckland (1)
Novotel
Brisbane
Mercure
Brisbane
Ibis
Brisbane
Mercure
Perth
Ibis Perth Australian
Portfolio
Overseas
Portfolio
Number of Rooms 452 296 194 218 239 192 1,139 1,591
Valuation at 31 December 2011
NZ$90.0M(S$90.5M)(1)
A$71.7M (S$94.3M)(2)
A$61.0M (S$80.2M)(2)
A$43.0M (S$56.5M)(2)
A$25.5M (S$33.5M)(2)
A$201.2M (S$264.6M)(2) S$355.0M
Acquisition DateDecember
2006February
2010February
2010February
2010February
2010February
2010February
2010-
Location New Zealand Australia Australia Australia Australia Australia Australia -
(1) The Rendezvous Hotel Auckland was rebranded Rendezvous Grand Hotel Auckland with effect from 1 April 2012.(2) Based on exchange rate of NZ$1 = S$1.0055 as at 31 Dec 2011.(3) Based on exchange rate of A$1 = S$1.3150 as at 31 Dec 2011.
39
Increase in CDLHT Total Property Value
(1) Valuation of Australia Hotel Portfolio as at 31 Dec 2011, converted based on exchange rate of A$1 to S$1.3150.(2) Valuation of Rendezvous Grand Hotel Auckland as at 31 Dec 2011, converted based on exchange rates of NZ$1 to S$1.0055. (3) Source: Valuation reports from CBRE Pte. Ltd for Singapore properties; CBRE Pty Ltd for Australia Hotel Portfolio and Bayleys Valuations Limited for Rendezvous Hotel Auckland
as at 31 Dec 2011. (4) The Rendezvous Hotel Auckland was rebranded Rendezvous Grand Hotel Auckland with effect from 1 April 2012.
330 385 458 423 413 429 450
267334 309 315 350
275266 267 276
296
162191
253227 225 229
232
86101
141120 118 125
129
35
35
4043 54
5455
123
12899
90253
265
163
234
322
93 110
0
500
1,000
1,500
2,000
IPO 31/12/2006 31/12/2007 31/12/2008 31/12/2009 31/12/2010 31/12/2011
.
S$ M
Studio M
Australia Hotel Portfolio
Rendezvous Grand Hotel Auckland
Orchard Hotel Shopping Arcade
Copthorne King's Hotel
M Hotel
Novotel Clarke Quay
Grand Copthorne Waterfront Hotel
Orchard Hotel
846.3M
1,101.9M
1,628.8M
Key:
+ 30.2%
+ 47.8%
1,481.2M
- 9.1% + 1.4%
1,501.6M
1,787.1M
+ 19.0%2,029.8M
+ 13.6%
Valuation of CDLHT Properties
(1), (2), (3)
(4)
40
Information on CDL Hospitality Trusts Properties
41
AUCKLAND CITY CENTRE
H
Hotels in Strategic Locations
Singapore Hotels New Zealand Hotel
Rendezvous
Grand Hotel
Auckland (1)
MARINA BAY SANDS
BUSINESS &FINANCIAL
CENTRE SITE
Orchard Hotel & Shopping Arcade
Copthorne King’s Hotel
Grand CopthorneWaterfront Hotel
M Hotel
NovotelSingapore
Clarke Quay
CENTRALBUSINESSDISTRICT
SINGAPORERIVER
H
HH
H
H
H
Studio M Hotel
(1) The Rendezvous Hotel Auckland was rebranded Rendezvous Grand Hotel Auckland with effect from 1 April 2012.
42
Australia Hotels
CBD AREA
Hotels in Strategic Locations
H
H
HH
Perth CBD
Ibis Brisbane
MercureBrisbane
NovotelBrisbane Ibis Perth
MercurePerth
H
Brisbane CBD
43
Orchard Hotel, Singapore
656 roomsLocated on Orchard RoadLarge pillar-less ballrooms & extensive conference facilitiesCaters to both corporate and leisure segments
Significant Highlights
Green Mark (Gold) by Building Construction Authority 2011World Gourmet Series Awards of Excellence 2012
Group Masterchef Chan Kwok - Hall of Fame InducteeMasterchef Lap Fai - Asian Cuisine Chef of The Year
Singapore Service Class Certificate for business excellence in service standards by Spring Singapore in 2011Chef of the Year & Asian Chef of the Year at Asian Gastronomic Awards of Excellence 2011 – Hua Ting Group Master Chef Chan KwokPrestigious awards received by Hua Ting Restaurant:
Voted one of Asia’s finest restaurants and included in The Miele Guide 2011/2012 Asia Tatler’s Best Restaurants 2008 to 2012Singapore Tatler’s Best Restaurants 2006 to 2012Wine & Dine Singapore’s Top Restaurants 2006 to 2012
Accolades
44
Grand Copthorne Waterfront, Singapore
574 roomsLocated between CBD & Orchard Road, within close proximity to Robertson Quay, Boat Quay & Clarke QuayOne of the largest conference facilities in SingaporeWell positioned for the MICE market
Significant Highlights
Accolades
Singapore Service Class Certificate for business excellence in service standards by Spring Singapore in 2012Green Mark (Gold) by Building Construction Authority 2011Culinary Challenge Gold Medal (Hot Cooking –Western) by Food & Hotel Asia 20102009 / 2010 Singapore Experience Awards by STB, Finalist – Best Business Event Venue Experience & Meeting of the YearHospitality Asia Platinum Awards 2009 to 2011 by World Asia Publishing, Singapore Series:
Best Pastry ChefThird Place – Best Housekeeping Team
45
M Hotel, Singapore
413 roomsLocated in the heart of the financial districtClose to government offices, integrated resorts and Marina BayStrong following of business travellers
Significant Highlights
Green Mark (Gold) by Building Construction Authority 2011SHA Singapore Green Hotel Award 2009 & 2011ASEAN Green Hotel Award 2012Hospitality Asia Platinum Awards 2009 – 2011 Singapore Series - Best Deluxe Hotel & Top 5 for Best Business HotelHotel Security Award 2009 – 2011Wine & Dine Singapore’s Top Restaurants 2009 –Cafe 2000 & The BuffetSimply Dining Singapore’s Top Restaurants 2009
Best Buffet Restaurant – The BuffetSilver Star Award – Cafe 2000Silver Star Award – The Buffet
Accolades
46
Copthorne King’s Hotel, Singapore
Significant Highlights
Boutique-style business hotel with 310 roomsLocated within close proximity to CBD, convention / exhibition belt, Orchard Road, Robertson Quay, Boat Quay and Clarke QuayStrong corporate segment focus and specialty events hotel host
Accolades
Green Mark (Gold) by Building Construction Authority 2012Excellent Service Award 2004 - 2010 by SHA & Spring SingaporeFinalist for Most Popular Hotel in Asia by HotelClubAwards 2009Top 10 Buffets in Singapore by AsiaOne People Choice Awards 2009 & 2011Wine & Dine Singapore’s Top Restaurants
2007 to 2012 – Tien Court2005 to 2012 – Princess Terrace
Singapore Tatler’s Best Restaurants 2007 to 2012 –Tien Court & Princess Terrace
47
Novotel Singapore Clarke Quay, Singapore
Significant Highlights
Accolades
Prime mid-scale hotel with 403 rooms Leasehold Located in immediate proximity to Clarke Quay, Robertson Quay and Boat Quay: Singapore’s premier entertainment hubRoom touch ups, upgrading of all bathrooms and renovation of Premier Lounge over the course of FY 2011 was completed in Jan 2012
EarthCheck Certified for its commitment to environmental and sustainable development ASEAN Green Hotel Standard Award for 2010 –2011, Singapore Green Hotel Award 2010 - 2011Singapore Tourism Award 2008 “Best Superior Hotel”Excellent Service Award 2008Accor Asia Pacific – GOPPAR Award – Highest Gross Operating Profit per Available Room) in the regionAccor Asia Pacific – Sales Distribution Award –Highest Web Distribution (Accor Site and 3rd Party) in the region
48
Studio M Hotel, Singapore
Significant Highlights
Accolades
360-room hotel opened in March 2010
Stylish and contemporary design set to capture growing business and leisure segments
Vibrant lifestyle options near the Robertson Quay precinct and in proximity to CBD, tourist attractions, integrated resorts and convention centres
Tripadvisor Travellers Choice 2012 – Top 4 Trendiest Hotel in Singapore AsiaOne Readers’ Choice Award 2010 – Top 3 Best Boutique Hotel in Singapore
49
Net Lettable Area 5,956.1 sq m
CBRE’s valuation S$54.8M
Valuation psm (psf) S$9,201 psm (S$855 psf)
% of total valuation ~2.7%
Leasehold Interest 75 years from Listing Date
Orchard Hotel Shopping Arcade, Singapore
50
Rendezvous Grand Hotel Auckland (1), New Zealand
452 rooms – largest hotel in Auckland by roomsFreeholdLocated in the central business district and next to a major conference centre
EarthCheck Certified 2009 – 2011, Bronze Restaurant award for Pacific Restaurant Category Winner : FormalDining New Zealand Restaurant of the Year 2009 Sliver Medal for Service both at the New Zealand Culinary Fare 2009
Significant Highlights
Accolades
(1) The Rendezvous Hotel Auckland was rebranded Rendezvous Grand Hotel Auckland with effect from 1 April 2012.
51
Novotel, Mercure and Ibis Hotels, Brisbane
Significant Highlights
Novotel Brisbane4.5 star accommodation with 296 modern, well-appointed rooms and suites Freehold Located next to Central Station and the CBD, Queen Street Mall and the Riverside boardwalkComprehensive conference and leisure facilities of ten dedicated rooms with capacity for up to 350 delegatesRefurbishment of all rooms, lobby and restaurant completed in May 2011EarthCheck Certified 2009 – 2011, Silver
Mercure Brisbane4 star accommodation with 194 spacious and stylish rooms and suites, overlooking the Brisbane River Freehold Located steps from the Queen Street Mall shopping precinct, Brisbane Convention and Exhibition Centre Three floors of function facilities and eleven conference rooms
Ibis Brisbane3.5 star accommodation with 218 roomsFreehold Well-situated in the heart of the Government and Corporate precinct
Mercure Brisbane
Ibis Brisbane
Novotel Brisbane
52
Mercure and Ibis Hotels, Perth
Significant Highlights
Mercure Perth4.0 star accommodation with 239 rooms and suites Freehold
Offers six meeting rooms available for up to 350 delegates
Situated in Perth’s CBD and within walking distance to the Swan River, shopping and entertainment
Ibis Perth3.5 star accommodation with 192 rooms Freehold
Located steps from the Murray and Hay Street shopping belt within Perth’s CBD
Awarded Best Standard Accommodation by the Perth Airport Western Australia Tourism Awards 2011
Mercure Perth
Mercure Perth
Ibis Perth
Mercure Perth
Ibis Perth
53
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