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OVERVIEW
AND FINANCIAL REVIEW
OVERVIEW OF CDL
HOSPITALITY TRUSTS
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 globally.
CDLHT owns 18 properties, valued at S$2.4 billion as at
31 December 2016, with a total of 4,912 hotel rooms,
comprising six hotels and a retail mall in Singapore,
five hotels in Australia, one hotel in New Zealand, two
hotels in Japan, one hotel in United Kingdom and two
resorts in Maldives.
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 2,718 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 (the "
NZ Hotel
"), Grand
Millennium Auckland, adds 452 rooms to CDLHT’s
portfolio. The two hotels in Japan comprise Hotel MyStays
Asakusabashi and Hotel MyStays Kamata (collectively the
"
Japan Hotels
" with an aggregate of 255 rooms). The
two resorts in Maldives comprise Angsana Velavaru and
JumeirahDhevanafushi (collectively the"
MaldivesResorts
"
with an aggregate of 150 villas). The hotel property in
United Kingdom (the "
UK Hotel
"), Hilton Cambridge City
Centre, is a 198-room upper upscale hotel.
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
cities and largely marketed as "superior" or 5-star hotels.
The Japan Hotels are known as business hotels in the
local context and are located within close proximity to
major transportation networks and tourist attractions
in Tokyo. Hilton Cambridge City Centre is situated in a
prime location in the heart of Cambridge city centre and
within the vicinity of popular tourist attractions. CDLHT’s
luxurious resorts in the Maldives, a top-tier premium
destination with the exclusive "one-island-one-resort"
concept, offer guests with two distinct experiences with
the beachfront and water villas within one resort.
All the properties, with the exception of Claymore Connect,
Jumeirah Dhevanafushi, the Japan Hotels and Hilton
Cambridge City Centre, are leased to external master
lessees by H-REIT. Claymore Connect is leased directly to
retail tenants by H-REIT. Jumeirah Dhevanafushi, the Japan
Hotels and Hilton Cambridge City Centre 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. 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 bemadewhere 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
In evaluating new acquisition opportunities, the H-REIT
Manager will 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 £1.5 billion as
at 3 March 2017. 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 or
investment funds that have a finite period to dispose
acquired assets.
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