Page 4 - ar2011

CDL Hospitality Trusts 2
overview of
cdl hospitality trusts
ABOUT H-REIT
H-REIT is the frst hotel real estate investment trust in
Singapore established with the principal investment
strategy of investing in a portfolio of hospitality
and/or hospitality-related real estate assets.
H-REIT has a portfolio size of S$2.0 billion as at 31
December 2011 with a total of 4,305 hotel rooms
in the Asia Pacifc, comprising six hotel properties
(including the newly acquired Studio M Hotel) and
a retail property in Singapore, fve hotel properties
in Australia and one hotel property in New Zealand.
The properties in Singapore comprise Orchard
Hotel, Grand Copthorne Waterfront Hotel, M
Hotel, Copthorne King’s Hotel, Studio M Hotel and
Novotel Clarke Quay (collectively, the “ Singapore
Hotels ” with an aggregate of 2,714 rooms) as well
as Orchard Hotel Shopping Arcade, a retail arcade
adjoining Orchard Hotel. The hotel properties in
Australia comprise Novotel Brisbane, Mercure
Brisbane, Ibis Brisbane, Mercure Perth and Ibis
Perth (collectively, the “Australia Hotels” with an
aggregate of 1,139 rooms). The hotel property in
New Zealand, Rendezvous Hotel Auckland, adds
452 rooms to H-REIT’s portfolio.
H-REIT’s portfolio of quality hotel and hotel-related
assets in Singapore, Australia and New Zealand are:
• strategically located in or near the central business
districts in key gateway cities, and
• largelymarketed as “superior” and/or 5-star hotels.
All the properties, with the exception of Orchard
Hotel Shopping Arcade, have been leased to
master lessees on long-term leases. Orchard Hotel
Shopping Arcade is leased directly to tenants
by H-REIT.
H-REIT’s Strategy
The principal investment strategy of M&C REIT
Management Limited, as manager of H-REIT (the
“H-REIT Manager”), is to invest in a diversifed
portfolio of income-producing real estate which
is primarily used for hospitality and/or hospitality-
related purposes. The investment strategy envisages
investments globally, with emphasis in the Asia Pacifc
region. Such investments may be by way of direct
acquisition and ownership of properties by H-REIT
or may be effected indirectly through the acquisition
and ownership of companies or other legal entities
which primary purpose is to hold or own real estate
and real estate-related assets which are used for
hospitality and hospitality-related purposes.
Generally, investments will be made where such
investments are considered to be value-enhancing or
yield-accretive, and feasible in the light of regulatory,
commercial, political andother relevant considerations.
The H-REITManager’s objectives are tomaximise the
rate of return for the holders of H-REIT units and to
make regular distributions. TheH-REITManager plans
to achieve these objectives through the following
strategies:
Acquisition Growth Strategy
The H-REIT Manager will continue to pursue
opportunities for asset acquisitions that would be
value-enhancing or yield-accretive. In evaluating
new acquisition opportunities, the H-REIT Manager
may consider the need for the diversifcation of the
portfolio by geography and asset profle.
Potential sources of acquisitions are likely to arise from:
• H-REIT’s relationship withMillennium&Copthorne
Hotels plc (“M&C”), an international hotel owner
and operator listed on the London Stock Exchange
with a market capitalisation of approximately