OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION 111 CDL HOSPITALITY TRUSTS Annual Report 2025 Responsible Investment Businesses are increasingly broadening their corporate priorities to include purpose-driven growth. This shift is reflected in the rise of global assets under management with ESG mandates, as well as the growing number of asset managers committing to sustainable or net-zero investment portfolios. As the world moves toward greater sustainability, CDLHT incorporates ESG considerations into its investment decisions as part of its responsible investment approach. Approach As part of our investment due diligence process, we continue to evaluate the sustainability performance and risks of prospective acquisitions through ESG assessments. This due diligence process helps us identify potential ESGrelated risks and opportunities to enhance the energy efficiency and overall sustainability of the assets. Various risks are evaluated across ESG, including: • Climate and environmental risks: Energy efficiency, renewable energies, water utilisation, waste and pollution. • Social risks: Accessibility, health and well-being of stakeholders. • Governance risks: Sustainability labelling of ESG strategy. In addition, the ESG due diligence process includes carbonrelated assessments to address environmental risks. This involves evaluating the asset’s carbon footprint, energy usage, and GHG emissions. Our responsible investment approach also extends to overseeing ESG practices across all properties under our management. For each material topic, we outline the sustainable infrastructure features incorporated into our properties. Some of which include installing solar photovoltaic (“PV”) systems, electric vehicle (“EV”) charging stations, eco-digesters to reduce food waste, and water-saving showerheads. CDLHT also actively identifies and undertakes capital expenditure initiatives to enhance the sustainability performance of our buildings, with a strong focus on improving operational effectiveness and energy efficiency. Performance In the Maldives, the solar systems reached stable operations in FY 2025, lifting total on‑site renewable energy generation to 1.07 GWh, or 15.2% of the resorts’ total electricity consumption. Having progressed beyond initial commissioning and ramp‑up phases in prior years, the systems are now operating at steady‑state levels, reinforcing energy resilience at the resorts and supporting a sustained reduction in reliance on diesel‑based power generation in an off‑grid environment. Complementing this progress, W Singapore – Sentosa Cove commissioned its on‑site solar photovoltaic system in August 2025, marking a further step in scaling renewable energy adoption across the portfolio. Upon achieving stable operations, the system is expected to generate approximately 500 MWh of renewable energy annually, equivalent to around 5.6% of the property’s total building electricity consumption. This strengthens on‑site energy resilience and contributing to CDLHT’s broader transition towards lower‑carbon energy sources across both resort and urban hospitality assets. Further information can be found under our material topic on Energy Efficiency, Water Stewardship and Waste. Quality, Sustainable Products and Services Safe, compliant, and liveable assets are critical to building guest confidence, ensuring tenant satisfaction, and maintaining stable distributions. As a multi-jurisdictional owner, we uphold our duty of care by meeting local building, safety, and accessibility requirements, as well as recognised operating standards. Strong safety and liveability practices reduce operational risk, safeguard insurability, and enhance portfolio resilience. Approach All buildings are kept in line with regulations and best practices for safety, accessibility, and liveability. In Singapore, this includes meeting the Building and Construction Authority’s (“BCA”) Code on Accessibility in the Built Environment. Where gaps exist, retrofitting is carried out promptly wherever practical. Regular inspections help maintain safety standards and ensure a secure environment for occupants. To further improve the experience, guest satisfaction surveys are conducted to understand needs and expectations, and feedback is used to guide ongoing enhancements across our properties. One example is at W Singapore, where guest experience is measured by engaging with Medallia GuestVoice, a unified experience management platform, to gather insights to further improve guest experiences at our hotels. In addition, most of our properties undergo internal quality assurance reviews to ensure compliance with the highest standards for our guests.
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