CHAIRMAN’S
STATEMENT
OVERVIEW AND FINANCIAL REVIEW
With the successful completion of its first investment
in Europe, CDLHT’s portfolio valuation has grown to
S$2.5 billion as at 31 December 2015 and it now enjoys
greater income diversification though an enlarged
portfolio of 15 hotels and two resorts in six markets with
a total room count of 4,909.
PORTFOLIO ENHANCEMENT FOR OPTIMISED
VALUE
The Managers are constantly evaluating the portfolio for
asset enhancement opportunities that would improve
the assets’ value and competitiveness.
In 2015, asset enhancement initiatives that were
completed include the refurbishment of restaurant
and bar at Mercure Perth as well as the addition
of two new beach villas at Jumeirah Dhevanafushi.
Claymore Connect (formerly known as Orchard Hotel
Shopping Arcade) was officially opened in October
2015 following an asset enhancement exercise.
The mall’s net lettable area has increased by about
10,000 sq ft to approximately 54,000 sq ft
(3)
and is being
repositioned as a family-friendly mall.
In 2016, Grand Copthorne Waterfront Hotel is expected
to complete its extensive renovation to refresh its lobby,
add meeting room capacity and significantly augment
its food and beverage offerings. At M Hotel, with the
exception of 10 suites, the refurbishment of all the
MAIDEN ENTRY INTO EUROPE VIA ACQUISITION
OF CAMBRIDGE CITY HOTEL
On 1 October 2015, CDLHT made its maiden entry into
Europe with the acquisition of a hotel in Cambridge,
UK for a property price of £61.5 million (approximately
S$132.7 million
(2)
). This acquisition was fully funded by
sterling-denominated debt. Hilton was appointed as the
manager of the hotel and the hotel was rebranded to
Hilton Cambridge City Centre on 15 December 2015.
This transaction represented a unique opportunity for
CDLHT to secure a prominent presence in Cambridge,
which is one of the most robust hospitality markets in
UK with a strong demand profile. It remains one of the
primary tourist destinations in UK due to its historical
and cultural appeal. As it is also an important location for
UK’s R&D sector, it is home to a large cluster of high-tech
businesses focusing on biomedical, pharmaceutical and
technology.
The hotel is a newly-refurbished upper upscale hotel
and comes with a comprehensive suite of facilities. It
also boasts a prime location in the heart of Cambridge
city centre, with easy access to transport amenities and
close proximity to tourist attractions. In addition, the
recent rebranding should also augment the trading
performance as the hotel benefits from the management
expertise and distribution strength of the international
operator.
(2)
Based on an exchange rate of £1.00 = S$2.1575. Price does not include net working capital adjustments and transaction costs.
(3)
Excludes net lettable area of the adjoining Galleria which is not part of the asset enhancement exercise.
Grand Ballroom, Grand Copthorne Waterfront Hotel
8
