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INDEPENDENT AUDITORS’ REPORT
REPORTS
How the matter was addressed in our audit
We focused on Jumeirah Dhevanafushi which was further impaired in the current year. We compared the valuation
methodology used against those applied for similar property types by other valuers. We assessed the reasonableness of
the key assumptions used in the valuation which included a comparison of the discount rate and terminal yield, against
historical rates and available industry data, taking into consideration comparability and market factors. We also assessed
whether the disclosures in the financial statements appropriately described the judgements inherent in estimating the
recoverable amount.
Our findings
The valuation method and key assumptions used by the valuers were comparable to the methods and assumptions
used for similar property types by other valuers and available industry data. We found the disclosures in the financial
statements to be appropriate in their description of the judgement inherent in the key assumptions used in estimating
the recoverable amount.
Other information
M&C Business Trust Management Limited, the Trustee-Manager of HBT (the "
HBT Trustee-Manager
") and M&C REIT
Management Limited, the Manager of H-REIT (the "
H-REIT Manager
") are responsible for the other information.
The other information comprises the Overview of CDL Hospitality Trusts, Chairman’s Statement, Financial Highlights,
Portfolio Summary of CDL Hospitality Trusts, Year in Review, Market Review, Leadership Structure, Property Portfolio,
Corporate Governance, Statement of Policies and Practices of HBT, Sustainability Reporting, Report of the Trustee-
Manager of CDL Hospitality Business Trust, Statement by the Chief Executive Officer of the Trustee-Manager, Report
of the Trustee of CDL Hospitality Real Estate Investment Trust, Report of the Manager of CDL Hospitality Real Estate
Investment Trust, Statistics of Stapled Securities Holdings and Interested Person Transactions.
Our opinion on the financial statements does not cover the other information and we do not and will not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified
above and, in doing so, consider whether the other information is materially inconsistent with the financial statements
or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of the HBT Trustee-Manager for the financial statements of the HBT Group
The HBT Trustee-Manager is responsible for the preparation of the consolidated financial statements of the HBT Group
that gives a true and fair view in accordance with the provisions of the Act and FRS, and for devising and maintaining
a system of internal accounting controls sufficient to provide a reasonable assurance that assets that are part of the
trust property of the registered business trust are safeguarded against loss from unauthorised use or disposition; and
transactions by the Trustee-Manager entered into on behalf of or purported to be entered into on behalf of the registered
business trust are properly authorised and that they are recorded as necessary to permit the preparation of true and fair
accounts and to maintain accountability of assets.
In preparing the financial statements of the HBT Group, the HBT Trustee-Manager is responsible for assessing the ability
of the HBT Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the HBT Trustee-Manager either intends to terminate the HBT Group or to
cease the operations of the HBT Group, or has no realistic alternative but to do so.
The responsibilities of the HBT Trustee-Manager include overseeing the HBT Group’s financial reporting process.
Responsibilities of the H-REIT Manager for the financial statements of the H-REIT Group and the Stapled Group
The H-REIT Manager is responsible for the preparation and fair presentation of the consolidated financial statements of
the H-REIT Group and the Stapled Group in accordance with the recommendations of RAP 7
Reporting Framework for
Unit Trusts
issued by ISCA, and for such internal controls as the H-REIT Manager determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
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Annual Report 2016