SUSTAINABILITY REPORT The first CDLHT Singapore on-site solar project at W Singapore - Sentosa Cove
SUSTAINABILITY & GOVERNANCE 98 SUSTAINABILITY REPORT CONTENTS 99 Board Statement 100 About this Report 101 Our Sustainability Approach 109 Responsible Investments and Sustainable Value 114 Good Governance and Ethical Business 117 Climate Resilience and Environmental Stewardship 133 Enabling Inclusiveness, Safety, Growth and Responsible Partnerships 142 GRI Content Index 145 SASB Index 146 TCFD Index 147 Independent Third Party Limited Assurance Statement SUSTAINABILITY REPORT
OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION 99 CDL HOSPITALITY TRUSTS Annual Report 2025 BOARD STATEMENT Dear Stakeholders, The Boards of Directors (“Boards”) are pleased to present CDL Hospitality Trusts’ (“CDLHT”) Sustainability Report (“Report”) for the financial year ended 31 December 2025 (“FY 2025”). This Report highlights CDLHT’s vision, strategies, and progress in critical areas such as climate action, resource efficiency, and human capital development. It also provides an update on our performance against set targets, underscoring our commitment to transparency and continuous improvement in sustainability practices. The Boards firmly believe that sustainability is integral to CDLHT’s business and long-term value creation. The Board Sustainability Committees (“BSCs”) oversee sustainability initiatives, ensure adherence to environmental, social, and governance standards, and embed sustainable practices into CDLHT’s long-term strategies. As one of Asia’s leading hospitality trusts, with approximately S$3.5 billion in assets under management as at 31 December 2025, we recognise that sustainability is fundamental to long-term business resilience and global environmental stewardship. Our sustainability strategy is closely aligned with evolving regulatory requirements and international standards, including the Singapore Exchange (“SGX”) sustainability reporting guidelines. By proactively integrating Environment, Social and Governance (“ESG”) considerations into our operations, we uphold compliance while maintaining strong corporate governance, integrity, and responsible business practices. In 2025, we were honoured to be recognised as joint winner of the prestigious Shareholder Communications Excellence Award (REITs & Business Trusts Category) at the Securities Investors Association (Singapore) Investors’ Choice Awards 2025 for the second consecutive year. CDLHT was also ranked 10th in the Singapore Governance and Transparency Index (“SGTI”) – REIT and Business Trust Category. Despite an increasingly complex and dynamic operating landscape, CDLHT remains steadfast in advancing our sustainability agenda. We continuously evaluate our performance against internationally recognised frameworks to ensure we meet and exceed expectations set by regulators and stakeholders. In line with our preparation for the International Sustainability Standards Board (“ISSB”) IFRS S1 and S2 standards, we undertook an assessment of both physical and transition climate‑related risks & opportunities to determine the most relevant areas of exposure for CDLHT. Building on this assessment, we then quantified the key physical & transition risks identified as most material, enabling a deeper understanding of CDLHT’s potential financial exposure under different future climate pathways which will be quantified in the subsequent year. Beyond environmental efforts, we place strong emphasis on the health, safety, and well-being of all stakeholders while driving positive societal impact. Both the Managers and our properties actively engage with local charitable and social organisations, reflecting responsible corporate citizenship and reinforcing our commitment to community involvement. In FY 2025, we strengthened our materiality approach by incorporating a financial perspective through a double materiality assessment. This process led to the inclusion of two new topics-Quality and Sustainable Products and Services, and Supply Chain Management into our materiality matrix. Our sustainability initiatives continue to align with the United Nations Sustainable Development Goals (“UN SDGs”), underscoring our commitment to contributing to broader global sustainability outcomes. Looking forward, CDLHT is committed to advancing our sustainability initiatives in line with global best practices and regulatory requirements. We will continue to refine our strategies to strengthen environmental, economic, and social contributions, ensuring long-term value creation for our stakeholders. Board of Directors REIT Manager Board Trustee-Manager Board
SUSTAINABILITY & GOVERNANCE 100 SUSTAINABILITY REPORT ABOUT THIS REPORT CDLHT presents its ninth Sustainability Report for FY 2025, designed to be read alongside the CDLHT Annual Report, with cross-references to relevant sections. For FY 2025, CDLHT continued its internal review of sustainability processes as part of a multi-year audit cycle, with support from an external ESG consultant. External assurance was conducted on our Singapore portfolio’s Greenhouse Gas (“GHG”) Scope 1 and 2 emissions; for further details, please refer to the Climate Action and Energy Management section. Listed on the Singapore Exchange Securities Trading Limited since 2006, CDLHT comprises CDL Hospitality Real Estate Investment Trust (“H-REIT”) and CDL Hospitality Business Trust (“HBT”). H-REIT’s principal investment strategy focuses on investing in a diversified portfolio of income-producing real estate, which is or will be primarily used for hospitality, hospitality-related, and other accommodation and/or lodging purposes globally. HBT’s principal investment strategy is to invest in a portfolio of real estate or development projects, which is or will be primarily used for hospitality, hospitality-related and other accommodation and/or lodging purposes globally and may also include the operation and management of real estate assets held by H-REIT and HBT. M&C REIT Management Limited serves as the manager of H-REIT (the “H-REIT Manager”), while M&C Business Trust Management Limited is the trustee-manager of HBT (the “HBT Trustee-Manager”, and collectively the “Managers”. For more details on CDLHT’s business, please refer to page 2 of the Annual Report. Reporting Period and Scope CDLHT’s portfolio comprises 22 properties across multiple geographies. The FY 2025 reporting scope covers 19 properties for the ESG indicators (other than GHG emissions and social indicators). In accordance with GHG Protocol’s Scope 1, 2 and 3 GHG emissions, as well as all social indicators, only the Managers’ Office and The Lowry Hotel, where we have direct operational control, are included within the reporting scope. For 18 of the properties, where CDLHT does not have direct operational control, GHG emissions are reported under Scope 3 Category 13 (Downstream Leased Assets). Social indicators for these properties are excluded from the reporting scope due to the absence of direct operational oversight. (1) Portfolio Properties Location Orchard Hotel (including Claymore Connect) Singapore Grand Copthorne Waterfront Hotel M Hotel Copthorne King’s Hotel Studio M Hotel W Singapore - Sentosa Cove Grand Millennium Auckland New Zealand Mercure Perth Australia Ibis Perth The Halcyon Private Isles Maldives (“The Halcyon”) (2) Maldives Angsana Velavaru Hotel MyStays Asakusabashi Japan Hotel MyStays Kamata Benson Yard United Kingdom The Lowry Hotel Hilton Cambridge City Centre Hotel Indigo Exeter The Castings voco Manchester Pullman Hotel Munich Germany Hotel Cerretani Firenze - MGallery Italy Reporting Standards And Guidelines This Report complies with the SGX Listing Rules 711A and 711B and has been prepared with reference to the Global Reporting Initiative (“GRI”) Sustainability Reporting Standards. We adopt the GRI Standards because they offer internationally recognised, comprehensive guidance for managing, measuring, and setting targets for our material ESG topics. We continue to reference the Sustainability Accounting Standards Board (“SASB”) standards to enhance the relevance of our disclosures for investors and stakeholders Our climate disclosures remain aligned with the Task Force on Climate-related Financial Disclosures (“TCFD”) framework. This report describes CDLHT’s approach to further managing climate-related risks and opportunities, sets out our key metrics and targets, and highlights our progress in conducting climate scenario analysis, as well as our broader preparations for compliance with the ISSB’s IFRS S1(3) and S2(4) standards. These disclosures have also been prepared in accordance with the Guidelines on Environmental Risk Management for Asset Managers issued by the Monetary Authority of Singapore (“MAS”). The Content Index can be found on page 98 of this Report. (1) The 18 properties comprise of all the portfolio assets with the exception of The Lowry Hotel, voco Manchester and the two living assets (The Castings and Benson Yard). voco Manchester - City Centre in the United Kingdom has been excluded from FY 2025’s ESG reporting scope as it operates under a fixed-rent lease arrangement involving separate occupational lessee and hotel manager counterparties, which limits CDLHT’s access to operational data. The Castings and Benson Yard are excluded from FY 2025 environmental and social performance metrics as they were recently acquired and/or are at an early stage of operations. Data from these assets does not yet meet CDLHT’s internal thresholds for completeness, consistency, and comparability required for inclusion in reported metrics. (2) Rebranded to The Halcyon Private Isles Maldives, Autograph Collection from 1 Nov 2025. Formerly known as Raffles Maldives Meradhoo. (3) IFRS ISSB S1: The ISSB standard setting out general requirements for disclosure of sustainability‑related risks and opportunities that may affect an entity’s financial prospects. Only the climate related sections of IFRS ISSB S1 are disclosed in this Report. (4) IFRS ISSB S2: The ISSB standard specifying climate‑related disclosure requirements, covering governance, strategy, risk management, and metrics and targets.
OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION 101 CDL HOSPITALITY TRUSTS Annual Report 2025 VISION MISSION SUSTAINABILITY VISION AND MISSION Establishing CDLHT as the premier hospitality and lodging platform with sustainable, innovative, and quality accommodation spaces, generating long-term value for our stakeholders To enable sustainable profitability by acting as responsible stewards of our environmental and social landscapes SUSTAINABILITY FRAMEWORK ENVIRONMENT Climate resilience and energy management VALUE Responsible investment and sustainable value GOVERNANCE Good governance and ethical business PEOPLE & COMMUNITY Enabling inclusiveness, safety, growth, and responsible partnerships Below is a table outlining a high-level summary of CDLHT’s short-term, medium-term, and long-term sustainability targets. Time Horizon Description of Target Short-term: Year 2026 5% - 7% reduction in energy and 2% - 7% reduction in water consumption, with FY 2019 as the comparative baseline. Medium-term: Year 2035 Reduce portfolio’s CO2 emissions by 20% or more by 2035 with FY 2025 as the comparative baseline. Long-term: Year 2050 Decarbonisation aligned with Science Based Targets initiative (“SBTi”) to achieve Net Zero by 2050. Accessibility and Feedback We have made this Sustainability Report available online on our corporate website at www.cdlht.com. In line with our environmental objective to conserve resources and minimise environmental impact, CDLHT will print only a limited number of the Annual Report (which includes the Sustainability Report). As we aim to continue progressing in our sustainability journey, we welcome any feedback or comments on our Sustainability Report. Please contact Mr Dominic Chen, Senior Manager, Asset Management at DominicChen@cdlht.com. The four core pillars are represented by 13 material ESG factors, with each comprising a set of actions and initiatives and, where relevant, annual performance targets. The Managers regularly review and validate these material ESG factors through the sustainability governance structure and stakeholder engagement processes, ensuring that CDLHT maintains a strong and comprehensive sustainability framework to achieve the goals. The following sections in this Report explain each of these items in depth. Delivering Value and Best Practices As part of a broader commitment to responsible investing and long-term value creation for stakeholders, CDLHT promotes ESG best practices across the portfolio through a diverse set of initiatives. By actively managing our assets and integrating ESG measures throughout the portfolio, we build a shared practice inventory that consolidates and distributes these positive efforts for implementation across the entire group. The environmental stewardship initiatives cover various aspects of building operations, including energy conservation, renewable energy sourcing, water conservation and waste reduction. These measures are being progressively implemented across all properties to meet and exceed ESG benchmarks for the portfolio’s ESG benchmarks while remaining aligned with industry best practices. OUR SUSTAINABILITY APPROACH Aligned with our sustainability vision and mission, CDLHT’s Sustainability Framework is built around four core pillars. These pillars reflect the priorities of our stakeholders’ priorities, guide our sustainability policies and initiatives, and help us drive meaningful impact across our material ESG factors.
SUSTAINABILITY & GOVERNANCE 102 SUSTAINABILITY REPORT (5) GWh refers to gigawatt‑hours, a unit of energy equivalent to one million kilowatt‑hours (kWh). (6) MWh refers to megawatt‑hours, a unit of energy equivalent to one thousand kilowatt‑hours (kWh). Action Across Properties CDLHT’s portfolio remains committed to sustainability through a range of ESG initiatives designed to enhance operational efficiency and reduce carbon emissions. Actions such as optimising equipment operating hours, replacing single-use bathroom amenities with recyclable / refillable pump dispensers, and offering guests the option to forgo daily housekeeping have contributed to lower energy use and reduced waste. Several properties have also improved equipment performance through upgrades; for instance, M Hotel has commenced integrating an in‑room technology system that leverages real‑time occupancy data to automatically transition guest rooms between occupied, unoccupied, and unsold states. When deployed with upgraded Fan Coil Unit (“FCU”) motors using modern Electronically Commutated technology, the integrated solution enables energy optimisation independent of guest behaviour patterns. When combined, these technologies can reduce room‑level air‑conditioning energy consumption by up to 70% based on system design specifications, while maintaining guest comfort. In the Maldives, the solar systems reached stable operations in FY 2025, increasing total on‑site renewable energy generation to 1.07 GWh(5) annually, representing around 15.2% of the resorts’ total electricity consumption. Following commissioning and operational ramp‑up in prior years, the systems have achieved steady‑state performance, strengthening energy resilience at the resorts and materially reducing reliance on diesel‑based power generation. In addition, W Singapore – Sentosa Cove’s on‑site solar system commenced operations in August 2025, marking a further step in scaling renewable energy adoption across the portfolio. Upon reaching stable operations, the system is expected to generate approximately 500 MWh(6) of renewable energy annually, equivalent to around 5.6% of the property’s total building electricity consumption. This contributes to improved energy resilience and supporting CDLHT’s broader transition towards lower‑carbon energy sources. Global Sustainable Tourism Council The Global Sustainable Tourism Council (“GSTC”) establishes and manages global standards for sustainable travel and tourism to develop a common language about sustainability in tourism. Within the Sponsor Group, Millennium & Copthorne branded hotels in Singapore continued to achieve GSTC certification, reflecting their ongoing commitment to responsible hospitality practices. In Australia, Mercure Perth further strengthened its sustainability profile through its eco‑tourism initiatives, supporting environmentally responsible operations and guest experiences. Collectively, these achievements underscore the Group’s continued progress in advancing environmental responsibility across the portfolio, ensuring properties operate efficiently while minimising environmental impact. Beyond environmental efforts, we also prioritise positive social impact. CDLHT’s properties strengthened social performance through regular staff training on workplace health and safety, as well as skills development via e-learning platforms. The properties contribute to the community by participating in volunteer activities and partnerships with local charities.
OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION 103 CDL HOSPITALITY TRUSTS Annual Report 2025 BOARDS BOARD SUSTAINABILITY COMMITTEES (BSC) SUSTAINABILITY WORKING COMMITTEE (SWC) OPERATIONS/FUNCTIONS SUSTAINABILITY OFFICER The Boards are responsible for reviewing and guiding all relevant sustainability matters to ensure our business strategies remain aligned with the objectives set. They also oversee and track the performance of our material ESG factors, including climate related considerations such as emission reduction efforts, climate action, and resilience planning. The BSCs were first formed in 2024 to further enhance our sustainability governance and better dedicate management capacity toward sustainability-related matters. The BSCs’ roles and responsibilities are formalised in the Terms of Reference (“TOR”), which include oversight of climate-related risks and opportunities. This ensures structured guidance on managing climate impacts and integrating resilience into CDLHT’s strategy. The BSCs work closely with the Sustainability Working Committee (“SWC”) and report directly to the Boards. The SWC, led by the CEO of the Managers, Mr. Vincent Yeo Wee Eng, brings together key personnel from various business functions. Under the BSCs’ oversight, the SWC manages CDLHT’s overall sustainability performance and drives strategies that integrate material ESG factors into daily operations. A dedicated Sustainability Officer supports these efforts by implementing green initiatives, tracking sustainability metrics, and frequently reporting to the SWC. To further strengthen sustainability and climate-related governance, ESG workshops and briefings conducted by external ESG consultants are made available to CDLHT’s Directors and senior management to deepen their understanding of environmental issues impacting the portfolio. CDLHT’s sustainability performance is supported by a portfolio-wide data capture and analysis system that is continually enhanced to collect comprehensive metrics from each property. This enables more effective monitoring, tracking, and identification of opportunities for improvement at the individual property level, ultimately strengthening sustainability performance across the entire portfolio. Sustainability Governance CDLHT maintains steady progress toward our sustainability goals through a strong governance structure that provides the Boards with comprehensive oversight of all sustainability initiatives and strategic priorities.
SUSTAINABILITY & GOVERNANCE 104 SUSTAINABILITY REPORT Material ESG Factors CDLHT’s material ESG factors were determined in consultation with external ESG consultants, internal stakeholders, and approved by our Boards. CDLHT considers these material topics to be directly relevant to the continuity of the business. In FY 2025, CDLHT undertook a double materiality assessment (“DMA”) to assess sustainability topics more holistically. Both impact materiality (inside-out perspective) and financial materiality (outside-in perspective) impacts were considered in relation to the economy, environment, and people. 1. IDENTIFY 2. PRIORITISE 3. REVIEW 4. VALIDATE A long list of relevant ESG topics were based on industry trends review and peer benchmarking. The ESG factors prioritised base on their financial and impact materiality, using the following criteria: • Potential long-term value for our stakeholders • Influence on decision-making process of key internal and external stakeholders • Likelihood and impact to CDLHT’s business strategies, financial planning, business model and outcomes, and business continuity • Contributions to UN SDGs The material ESG factors and UN SDGs were reviewed by CDLHT’s senior management and business units in terms of their relevance and significance to the business from a financial and impact perspective. The findings of the review were discussed and validated by the management before being presented to the Boards for final approval. Following the DMA, we refreshed our materiality matrix and conducted a reassessment of our material topics to better capture emerging sustainability priorities. This process resulted in a streamlined set of 13 material ESG factors, consolidated from 20 previously reported topics, reflecting a more focused and decision-useful representation of the issues most relevant to CDLHT and its stakeholders. As part of this refresh, two new topics, Quality, and Sustainable Products and Services and Supply Chain Management, were added to our reporting scope, recognising the growing importance of responsible sourcing and innovative offerings in the hospitality sector. These enhancements reinforce CDLHT’s commitment to creating long-term value while addressing climate resilience and stakeholder needs. We continue to review material topics annually to ensure they remain relevant. The 13 material ESG factors are organised under four core ESG pillars, and our sustainability framework aligns these pillars and material topics with our commitments to the UN SDGs. The following table illustrates how each pillar and its material ESG factors contribute to our efforts in advancing the UN SDGs.
OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION 105 CDL HOSPITALITY TRUSTS Annual Report 2025 Core ESG Pillar Material ESG Factors UN SDGs Overarching Ambitions Responsible Investment and Sustainable Value • Economic Performance • Responsible Investment • Quality, Sustainable Products and Services • Implement responsible investment practices • Create economic value for stakeholders and ensuring continual business growth Good Governance and Ethical Business • Corporate Governance • Cybersecurity and Data Privacy • Ensure fair, responsible, compliant, and transparent business conduct • Educate and raise awareness on issues of modern slavery and human trafficking • Facilitate supply chain stewardship with vendors, partners, managers, and tenants Climate Resilience and Environmental Stewardship • Climate Action and Energy Management • Water Management • Waste Management • Understand and manage climate opportunities and risks • Manage and minimise carbon footprint and reduce impact on the environment • Advocate, enable and enhance resource efficiencies in portfolio Enabling Inclusiveness, Safety, Growth and Diversity of Our People • Employee Engagement and Talent Management • Diversity and equal opportunity • Health and safety • Stakeholder Impact and Community Engagement • Supply Chain Management • Advocate, enable and enhance fair labour practices and employee wellbeing • Promote safe and healthy workplaces for people and customers • Engage with employees and support their growth and development • Promote positive community engagement
SUSTAINABILITY & GOVERNANCE 106 SUSTAINABILITY REPORT Sustainability Progress and Targets CDLHT takes pride in the progress made across many of our material ESG factors. We have set a range of environmental targets related to emissions, energy, water, and waste, as well as social targets related to safety, and corporate social responsibility. Material ESG Factors Targets for FY 2025 Key results in FY 2025 Targets for FY 2026 Emissions Reduction • Decarbonisation target validated with SBTi • In progress • Maintain progress Energy Efficiency • Aggregate 5% to 7% reduction in energy consumption across the portfolio by FY 2026, with FY 2019 as the baseline at 0.2 MWh/m2 (7) • The energy intensity is 12.9% lower than FY 2019 baseline • Maintain progress Water Stewardship • Aggregate 2% - 7% reduction in water consumption across the portfolio by FY 2026, with FY 2019 as the baseline at 2.5 m3/m2 (7) • The water intensity is 12.8% lower than FY 2019 baseline • Maintain progress Waste Reduction • Remove single-use plastics in F&B operations for 100% of hotel portfolio by end of FY 2025 • 100% of our hotels have replaced singleuse plastics in F&B operations • Commence implementation of formal food waste tracking and reduction programmes in FY 2026, with at least 80% of hotels with F&B operations covered by end of FY 2027 Health and Safety • Zero incidents of fatality or permanent disability and strive to minimise any work-related injuries • Zero incidents of fatality or permanent disability in FY 2025 • Maintain target Local Community Impact • Conduct at least 15 community/social events or projects in FY 2025 • Portfolio of properties participated in over 60 corporate and social responsibility activities • Conduct at least 20 community/social events or projects in FY 2026 (7) Intensity comparison uses building GFA as the denominator to account for portfolio changes and is consistent with industry standard.
OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION 107 CDL HOSPITALITY TRUSTS Annual Report 2025 Excellence in Corporate Governance CDLHT’s commitment to corporate governance and shareholder engagement continues to be recognised externally. It was the joint winner of the prestigious Shareholder Communications Excellence Award (REITs & Business Trusts Category) at the Securities Investors Association (Singapore) (“SIAS”) Investors’ Choice Awards 2025. In the 2025 Singapore Governance and Transparency Index (SGTI), CDLHT was placed 10th in the REIT and Business Trust category. Rating/ Award Achievement SIAS Investors’ Choice Awards 2025 Joint winner of the Shareholder Communications Excellence Award (REITs and Business Trusts Category) for the second consecutive year Singapore Governance and Transparency Index 10th place in SGTI ranking in the REIT and Business Trust category Stakeholder Engagement CDLHT engages in proactive, regular communication with our various stakeholder groups, ensuring their key concerns are addressed and they remain informed about ongoing initiatives and progress. In FY 2025, engagement with internal stakeholders continued throughout the year through multiple channels. Feedback was obtained during quarterly Board meetings and through ongoing interactions with the operating and management teams across the portfolio. We also maintain regular engagement with external stakeholders including hotel suppliers and business partners, through symposiums, tradeshows, periodic meetings, and vendor assessments. The table below summarises our engagement efforts in FY 2025. Stakeholder Group Engagement Approach Key Topics Board of Directors • Board meetings (including ad-hoc briefings with external ESG consultants) • Email communication • Economic performance • ESG performance and trends • Sustainability-linked financing opportunities • Risk management • Responsible investment • Quality, sustainable products and services Government and Regulators • Ad-hoc briefings and consultations • Participation in surveys and focus groups • Risk management • Social and environmental-related legislation Hotel Employees Led by hotel operators: • Training and transition assistance programmes • Annual employment survey • Performance and career development reviews • Career development opportunities • Training and development • Workplace safety and well-being, including pandemic readiness Guests and Residents • Customer satisfaction surveys • Social media • Feedback via General Manager • Customer health and safety • Environmental responsibility • Quality, sustainable products and services
SUSTAINABILITY & GOVERNANCE 108 SUSTAINABILITY REPORT Stakeholder Group Engagement Approach Key Topics Master Lessees and Property Managers • Regular management meetings and communication • Bilateral communication, one-on-one meetings, and site visits • Workplace safety and well-being • Customer health and safety • Eco-efficiency of buildings • Sustainable operating standards and practices Investors, Analysts and Media • Release of financial results and announcements, press releases, presentation slides and other disclosures through SGXNet and CDLHT’s website • Meetings and calls with analysts and media • Investor meetings, conferences and roadshows • Annual General Meetings • Annual reports and sustainability reports • Media releases and interviews • Responses to investors’ sustainability surveys • Business strategy and outlook • Corporate governance • Progress on ESG initiatives • Distribution and earnings • Market and operational performance updates • Regulatory compliance Hotel Suppliers and Business Partners Led by hotel operators: • Assessment of suppliers and vendors • Meetings with business partners • Economic performance • Environmental factors • Supply chain management • Due diligence process during selection
OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION 109 CDL HOSPITALITY TRUSTS Annual Report 2025 RESPONSIBLE INVESTMENTS AND SUSTAINABLE VALUE Relevant UN SDGs: Key Materials Topics & Performance Highlights Material Topics • Economic Performance • Responsible Investment • Quality, Sustainable Products and Services Key Performance Highlights CDLHT promotes responsible investing through transparent, sustainable, and ethical investments. As the properties operate across numerous geographies, we monitor, as far as possible the portfolio’s environmental and social impacts, risks, and opportunities throughout our value chain. By integrating ESG priorities into economic performance, investment decisions, and business strategies, we create long-term value while contributing to the well-being of the communities where we have presence in. Our goal is to deploy capital in ways that positively impact the environment and society, building a more sustainable future. 63% of portfolio properties green‑certified ZERO incidences of non-compliance or statutory lapses 437 kWp on‑site solar system commissioned at W Singapore – Sentosa Cove “Very Good” BREEAM rating achieved by Hotel Cerretani Firenze – MGallery
SUSTAINABILITY & GOVERNANCE 110 SUSTAINABILITY REPORT Economic Performance As a leading hospitality trust, sustaining economic growth remains essential to the long term viability of our business. Our key economic priorities are to optimise risk-adjusted returns for our Stapled Security Holders and to deliver distributions that are commensurate with portfolio performance. A summary of FY 2025’s financial performance, including operations, revenue, and expenditure, can be found on pages 198 - 200 of our Annual Report. Our management team works towards these economic goals through the following strategies: Asset Management Acquisition Capital Recycling Capital and Risk Management 1 2 3 4 Acquisition Growth Strategy • Pursue quality assets with growth potential • Pursue asset class diversification within the lodging space and promote income stability • Adopt a medium to long-term perspective to ride through market cycles • Partner with or tap on potential pipeline from M&C/CDL Asset Management Strategy • Work closely with master lessees, hotel/ property managers and/or operators to maximise asset operating performance and cash flow • Implement asset enhancement initiatives to optimise asset potential • Operate and invest in alignment with relevant ESG standards Capital Recycling Strategy • Evaluate divestment opportunities periodically to recycle capital for better growth prospects and returns, rebalance portfolio and/or unlock underlying asset values • Continually improve quality of portfolio Capital and Risk Management Strategy • Maintain a healthy balance sheet • Enhance financial flexibility by maintaining diversified sources of funding • Manage exposure arising from interest rates and foreign exchange through appropriate hedging strategies 1 2 3 4
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.
SUSTAINABILITY & GOVERNANCE 112 SUSTAINABILITY REPORT Pro-Environment Capital Expenditures CDLHT adopts a considered approach to pro-environment capital expenditures, focusing on initiatives that support longterm asset resilience, operational efficiency, and enhanced guest experiences. The majority of CDLHT’s properties are located in urban and built‑up environments, and as such, our portfolio has limited direct interaction with natural habitats. Accordingly, CDLHT assessed its exposure to biodiversity-related risks as minimal, with no material impact identified at the portfolio level. Notwithstanding this, CDLHT remains mindful of the role the built environment can play in enhancing its surroundings. Where practicable, we consider the incorporation of greenery, landscaping and environmentally‑aligned enhancement projects within its assets, taking into account site constraints, operational feasibility and local context. Such initiatives are intended to complement the surrounding ambience of our properties, improve the quality of guest spaces, and support broader environmental stewardship objectives. For resort based assets with closer proximity to natural ecosystems, targeted initiatives are undertaken at the property level. Further details on environmental and conservation related projects implemented at Angsana Velavaru are set out in the Island Initiatives section of this Report. Certifications and Recognitions Supporting Safe, High Quality and Liveable Assets We view third-party accreditation as a strong endorsement of our sustained efforts to operate safe, accessible and high-quality spaces. Our portfolio holds the following certifications and ratings: Region Name of Award Our Portfolio Singapore BCA Green Mark Award Platinum Copthorne King’s Hotel Gold Plus Orchard Hotel Grand Copthorne Waterfront Hotel M Hotel EarthCheck Silver Certificate W Singapore - Sentosa Cove Global Sustainable Tourism Council Certification Orchard Hotel Grand Copthorne Waterfront Hotel M Hotel Copthorne King’s Hotel Studio M Hotel WELL Health–Safety Grand Copthorne Waterfront Hotel New Zealand Qualmark Gold Sustainability Award Grand Millennium Auckland Australia Ecotourism Certification - Sustainable Tourism Mercure Perth Ibis Perth National Australian Built Environment Rating System (“NABERS”) Ibis Perth Energy – 4 stars Water – 3.5 stars Maldives Green Globe The Halcyon
OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION 113 CDL HOSPITALITY TRUSTS Annual Report 2025 Region Name of Award Our Portfolio United Kingdom BREEAM Very Good (New Construction) voco Manchester - City Centre EPC Rating “B” Rating The Lowry Hotel Hilton Cambridge City Centre voco Manchester - City Centre Hotel Indigo Exeter Benson Yard Germany & Italy BREEAM Very Good (In Use) Hotel Cerretani Firenze – MGallery Good (In Use) Pullman Hotel Munich Green Key Certification Pullman Munich Hotel Cerretani Firenze – MGallery Hotel Cerretani Firenze – MGallery upgrade its BREEAM rating from “Good” to “Very Good” This improvement reflects the property’s strengthened performance across key sustainability areas assessed by BREEAM, including energy management, health and wellbeing, resource efficiency and operational controls. The upgraded rating underscores our continued efforts to enhance the environmental performance of existing assets through targeted improvements and ongoing operational optimisation. These certifications complement CDLHT’s broader sustainability actions, including portfolio-wide health, safety, and environmental training, systematic facility inspections, and the adoption of green operations standards that elevate building quality and the user experience. Performance There were zero incidences of non-compliance or statutory lapses recorded in FY 2025. CDLHT pledges to maintain these stringent standards, ensuring that all development and asset enhancement efforts prioritise the safety and comfort of guests and tenants. This year, we achieved green certification for 63% of our assets and remain committed to expanding certification across our remaining properties in the coming years. Case Study Grand Copthorne Waterfront Hotel has BCA Green Mark Gold Plus and has continued to advance its sustainability efforts through initiatives such as linen and towel reuse programs, wooden keycards, water dispensers, and energy‑saving in‑room controls that automatically power down when guests leave. These collective actions support our commitment to responsible and environmentally conscious operations. In addition, to enhance guest experiences, GCW also collect guest feedback through surveys, online review platforms, and direct interactions, enabling us to identify trends and address issues promptly. By analysing this input and following up with guests, we can enhance operational efficiency and strengthen loyalty through informed, data‑driven improvements.
SUSTAINABILITY & GOVERNANCE 114 SUSTAINABILITY REPORT GOOD GOVERNANCE AND ETHICAL BUSINESS Relevant UN SDGs: Key Materials Topics & Performance Highlights Material Topics • Corporate Governance • Cybersecurity and Data Privacy Key Performance Highlights Ensuring fair, responsible, compliant, and transparent business conduct is a cornerstone of cultivating trust and fostering loyalty among all stakeholders. CDLHT upholds its dedication to corporate governance, ethical business practices, and compliance with all applicable regulations, thereby fortifying the foundation of CDLHT’s enduring sustainability, safeguarding the diverse interests of valued stakeholders, and reinforcing our position as a trusted partner and steward of value creation. ZERO Regulatory breaches, significant fines or sanctions ZERO cases of misconduct or non-compliance across the portfolio. ZERO incidences of bribery, or corruption reported
OVERVIEW AND FINANCIAL REVIEW MARKET REVIEW LEADERSHIP STRUCTURE PROPERTY PORTFOLIO SUSTAINABILITY & GOVERNANCE FINANCIAL STATEMENTS AND OTHER INFORMATION 115 CDL HOSPITALITY TRUSTS Annual Report 2025 Corporate Governance Approach At CDLHT, strong corporate governance underpins the commitment to ethical and transparent business conduct across the portfolio. We prioritise integrity and accountability through mandatory compliance training tailored to employees’ roles and responsibilities, ensuring all staff are equipped to discharge their duties in accordance with our values and policies. CDLHT adopts a zero‑tolerance approach towards bribery, corruption, and fraud and maintains a comprehensive whistleblowing framework that enables employees, directors, and third parties to report suspected improprieties confidentially and in good faith without fear of retaliation. The whistleblowing policy is integrated into employee orientation, is publicly accessible, and is complemented by open-door reporting channels through the operators’ or properties’ human resources departments. Reported concerns are reviewed under the oversight of the Managers’ Audit and Risk Committees (“ARCs”), which provide ongoing monitoring and accountability. Regular refresher training reinforces employees’ understanding of ethical standards and anti‑corruption practices. As a global organisation, CDLHT is committed to complying with applicable social and environmental regulations across the jurisdictions in which it operates, ensuring responsible conduct throughout the operations. This governance framework is supported by a comprehensive suite of policies designed to promote a robust risk management culture. These include the Anti-Bribery Policy, Anti-Corruption Compliance Guide, Business Hospitality and Gifts Policy, and Whistleblowing Policy, as well as policies on Corporate Communications, Global Data Protection, and Related Party Transactions, to strengthen accountability and responsible conduct. The policies are regularly reviewed to ensure alignment with evolving laws and regulations, with effective implementation supported by clear reporting lines, oversight mechanisms, and incident documentation procedures. Across the portfolio, policy implementation is managed through established processes, including the regular review and updating of policies, prompt reporting of suspected violations through designated reporting lines, ongoing monitoring of non compliance issues, and formal documentation of incidents through incident reports filed with the Security department. In FY 2025, the Managers have complied with the principles of corporate governance laid down by the MAS Code of Corporate Governance 2018 (“Code”), and also complied, substantially, with the provisions underlying the principles of the Code. In addition, the REIT Manager is a member of the Financial Industry Disputes Resolution Centre Ltd and a member of the REIT Association of Singapore. Performance Indicator FY 2025 Performance Ethical and Transparent Business Zero cases of misconduct or non compliance reported across the portfolio Anticompetitive Behaviour [206-1] Zero incidences of anti competitive behaviour or breaches of anti trust or monopoly legislation Fines and Sanctions No fines or sanctions incurred Whistleblowing One whistleblowing complaint received through CDLHT’s whistleblowing channels Bribery and Corruption Zero incidences of bribery, corruption, or misconduct reported Compliance with Social and Environmental Laws Zero incidences of non compliance and no significant fines or sanctions
SUSTAINABILITY & GOVERNANCE 116 SUSTAINABILITY REPORT In FY 2025, CDLHT recorded strong performance across all corporate governance and compliance indicators. There were zero cases of misconduct, corruption, bribery, or non-compliance reported across the portfolio. During the year, there were also no incidences of anticompetitive behaviour or violations of antitrust or monopoly legislation. CDLHT did not incur any fines or sanctions relating to these matters. In addition, there were no instances of non-compliance with social and environmental laws and regulations. CDLHT continues to reinforce these outcomes through ongoing training, including policy briefings during new employee orientation and regular updates on applicable policies and regulatory developments, and remains committed to maintaining zero incidents of non-compliance. In 2025, one whistleblowing report was received and was promptly escalated to the ARCs in accordance with the Managers’ whistleblowing procedures. The report was reviewed in accordance with established protocols and was assessed to be unsubstantiated. There were no breaches of applicable laws, regulations or internal policies, hence no further action was required. The Managers remain committed to maintaining effective whistleblowing channels to encourage the reporting of concerns in good faith, while ensuring that all reports are handled in a fair, objective and confidential manner. Cybersecurity and Data Privacy Approach Digitalisation and technology are integral to CDLHT’s business operations and growth, involving the management of significant volumes of sensitive tenant and guest information. This data can be exposed to cybersecurity risks, including potential unauthorised access, which could result in financial loss, operational disruption, reputational damage and legal or regulatory consequences if compromised. Accordingly, robust cybersecurity and data privacy measures are essential to safeguarding information assets and maintaining investor and stakeholder confidence. In addition, appropriate preventive control measures are in place, and employees are required to complete regular online cybersecurity and data privacy training to ensure ongoing awareness of secure IT practices, phishing threats, and data protection requirements. These measures are essential to maintaining a secure environment and mitigating risks across property systems. The Managers have implemented a Data Protection Handbook to safeguard personal data in accordance with the relevant legal requirements outlined in the Personal Data Protection Act and the Securities and Futures Act in Singapore. Furthermore, lessees and property managers are expected to comply with applicable local data and privacy laws within their respective jurisdictions. Performance In FY 2025, the Data Protection Officer received no complaints about data privacy breaches. Portfolio properties are expected to uphold appropriate data protection practices in accordance with applicable requirements across their respective operating jurisdictions.
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