2
CDL
HOSPITALITY TRUSTS
(1) The total acquisition cost (including transaction expenses) was approximately ¥6.0 billion (approximately S$65.7 million).
(2) Based on an assumed exchange rate of S$1.00 = ¥90.99.
ABOUT CDLHT
CDLHT, a stapled group comprising H-REIT and HBT, was
established with the principal investment strategy of investing
in a portfolio of hospitality and/or hospitality-related real
estate assets.
CDLHT has a portfolio valued at S$2.4 billion as at
31 December 2014 with a total of 4,709 hotel rooms in the
Asia Pacific, comprising six hotels and a retail mall in
Singapore, five hotels in Australia, one hotel in New Zealand,
two resorts in Maldives and two hotels in Japan.
The properties in Singapore comprise Orchard Hotel, Grand
Copthorne Waterfront Hotel, M Hotel, Copthorne King’s
Hotel, Studio M Hotel and Novotel Singapore Clarke Quay
(collectively, the "
Singapore Hotels
" with an aggregate of
2,716 rooms) as well as a retail mall 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
Grand Hotel Auckland, adds 452 rooms to CDLHT’s portfolio.
The two resorts in Maldives comprise Angsana Velavaru and
Jumeirah Dhevanafushi (collectively the "
Maldives Resorts
"
with an aggregate of 148 rooms).
CDLHT’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 largely marketed as "superior" or 5-star hotels.
CDLHT’s luxurious resorts in the Maldives, a top-tier premium
destination with the exclusive "one-island-one-resort"
concept, offers guests with two distinct experiences with the
beachfront and water villas within one resort.
In 2014, CDLHTmarked its foray into Japan with an acquisition of
two business (economy) hotels in Tokyo. The acquisition of Hotel
MyStays Asakusabashi and Hotel MyStays Kamata (collectively,
the "
Japan Hotels
" with an aggregate of 254 rooms) was
completed on 19 December 2014 for a purchase consideration
of ¥5.8 billion (approximately S$63.7 million)
(1) (2)
. The Japan
Hotels are located within close proximity to major transportation
networks and tourist attractions in Tokyo.
All the properties, with the exception of Claymore Connect,
Jumeirah Dhevanafushi and the Japan Hotels, are leased
to external master lessees by H-REIT. Claymore Connect is
leased directly to retail tenants by H-REIT while Jumeirah
Dhevanafushi and the Japan Hotels are leased to HBT by
H-REIT, and are managed by hotel management companies.
H-REIT’S STRATEGY
The principal investment strategy of H-REIT is to invest
in a diversified 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 Pacific 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, yield-accretive or
have potential for capital appreciation, and feasible in the
light of regulatory, commercial, political and other relevant
considerations.
The objectives of M&C REIT Management Limited, as
manager of H-REIT (the "
H-REIT Manager
"), are to maximise
the rate of return for the holders of H-REIT units and to make
regular distributions. The H-REIT Manager 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,
yield-accretive or have potential for capital appreciation.
In evaluating new acquisition opportunities, the H-REIT
Manager may consider the need for the diversification of the
portfolio by geography and asset profile. Potential sources of
acquisitions are likely to arise from:
• H-REIT’s relationship with Millennium & Copthorne
Hotels plc ("
M&C
"), an international hotel owner and
operator listed on the London Stock Exchange with a
market capitalisation of approximately £1.9 billion as at
3 March 2015. H-REIT will be able to leverage on M&C’s
experience, market reach and network of contacts in the
global hotel and hospitality sector for its acquisitions. In
addition, H-REIT can seek partnership and co-operation
opportunities with M&C as it expands globally.
• Opportunities arising from divestment of assets by
hospitality service providers who are increasingly looking
to free up capital for business expansion and investment
funds that have a finite period to dispose acquired assets.
OVERVIEW OF
CDL HOSPITALITY TRUSTS
