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March 2007
Introduction To CDL Hospitality Trusts
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• The value of Stapled Securities and the income derived from them may fall as well as rise. Stapled Securities are not obligations of, deposits in, or guaranteed by the H-REIT Manager or M&C Business Trust Management Limited, as trustee of CDL Hospitality Business Trust (the “HBT Trustee-Manager”), or any of their respective affiliates.
• An investment in Stapled Securities is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request that the H-REIT Manager and/or the HBT Trustee-Manager redeem or purchase their Stapled Securities while the Stapled Securities are listed. It is intended that holders of the Stapled Securities may only deal in their Stapled Securities through trading on Singapore Exchange Securities Trading Limited (the “SGX-ST”). Listing of the Stapled Securities on the SGX-ST does not guarantee a liquid market for the Stapled Securities.
• This presentation contains certain tables and other statistical analyses (the "Statistical Information") which have been prepared by the H-REIT Manager and the HBT Trustee-Manager. Numerous assumptions were used in preparing the Statistical Information, which may or may not be reflected herein. As such, no assurance can be given as to the Statistical Information’s accuracy, appropriateness or completeness in any particular context, nor as to whether the Statistical Information and/or the assumptions upon which they are based reflect present market conditions or future market performance. The Statistical Information should not be construed as either projections or predictions or as legal, tax, financial or accounting advice.
• This document may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other developments or companies, shifts in expected levels of occupancy rate, property rental income, charge out collections, changes in operating expenses (including employee wages, benefits and training costs), governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business.
• You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events.
• This document and its contents shall not be disclosed without the prior written permission of the H-REIT Manager or HBT Trustee-Manager.
Disclaimer
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Table Of Contents
• Highlights
• Background to CDL Hospitality Trusts
• Strengths of CDL Hospitality Trusts
• Structure of CDL Hospitality Trusts
• Results for FY 2006
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Highlights
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Highlights (I)
1 CDL-HT was publicly launched on 19 July 2006 as the first REIT in Asia ex Japan with hotel assets
3 Record number of more than 9.7 million visitor arrivals into Singapore for 2006
4 Strong 4th quarter performance with CDL-HT hotels in Singapore- Average occupancy rate of 88%- Average daily rate of $166- RevPAR of $146 up 16.8% from forecast
2 CDL-HT completed its first acquisition on 19 December 2006
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Highlights (II)
Strong performance in CDL Hospitality Trusts first financial year: - Gross revenues up 14.8% from forecasts- Income available for distribution up 21.8% from forecasts
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6 For comparison, for period 1 Jan to 31 Dec, hotels year on year growth significant
- Average daily rates up 22.6%- Occupancies up 6.4%- RevPAR up 30.1%
5 Overall robust performance for the period from IPO to 31 December 2006:
- Average occupancy rate of 86%- Average daily rate of $166- RevPAR of $143 up 10.9% from forecast
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Background to CDL Hospitality Trusts
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$0.80$0.90$1.00$1.10$1.20$1.30$1.40$1.50$1.60$1.70$1.80$1.90$2.00$2.10
IPO31
-Jul
14-A
ug25
-Aug
7-Sep
20-S
ep3-O
ct16
-Oct
30-O
ct10
-Nov
23-N
ov6-D
ec19
-Dec
4-Jan
17-Ja
n30
-Jan
12-Feb
27-Feb
Strong Post IPO Performance
Background To CDL Hospitality Trusts
• IPO on 19 July 2006
• Listed on SGX Mainboard
• Sponsored by Millennium & Copthorne Hotels plc (listed on LSE)
• First:
– Hotel REIT in Asia ex Japan
– Stapled security comprising a REIT and business trust
– Acquisition within 4 months of listing
Background
Source: Unit price data from Bloomberg(1) At the exchange rate of US$ 1 = S$1.5282
IPO Price = $0.83
(US$0.54)(1)
28 Feb ’07 = S$1.85
(US$1.21)(1)
High (7 Feb ’07) = S$2.00
(US$1.31)(1)
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Strengths of CDL Hospitality Trusts
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Strengths Of CDL Hospitality Trusts
Well Positioned Assets22
Favourable Industry Fundamentals in Singapore33
Blue Chip Sponsor11
Growth Through Active Asset Management55
Growth Through Acquisitions55
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Listed in London Stock Exchange with market capitalisation of ~£1.9 billion as at 28 Feb 2007
Blue Chip Sponsor With Global Brand
3 Global Brands 105 hotels in 18 Countries
Ecuador
France
Germany
Korea
Indonesia
Hong Kong
Malaysia
China
Egypt
United States
United Kingdom
New Zealand
Taiwan
UAE
Philippines
Singapore
Thailand
Qatar
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Strengths Of CDL Hospitality Trusts
Well Positioned Assets22
Favourable Industry Fundamentals in Singapore33
Blue Chip Sponsor11
Growth Through Active Asset Management55
Growth Through Acquisitions55
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74,587 sq ftN/A5 rooms(4,007 sq ft)
9 rooms(11,380 sq ft)
34 rooms(65,000 sq ft)
13 rooms(20,000 sq ft)Meeting space
17N/A4445# of F&B Outlets
75-year leasehold interest commencing on the Listing Date with the exception of Copthorne King’s Hotel which will be an approximately 61-year leasehold interest expiring on 31 January 2067Title
S$490,187(1)S$7,184 psm(S$667 psf)S$325,806S$462,470S$485,818S$589,433Valuation per
room
S$979.2 mS$35.1 mS$101.0 mS$191.0 mS$267.2 mS$384.9 mValuation
1,055N/A77237287454Car Park Lots1,926N/A310413550653Number of Rooms
TotalOrchard Hotel Shopping Arcade
Copthorne King’s HotelM HotelGrand Copthorne
Waterfront HotelOrchard Hotel
Overview Of Current Portfolio:Singapore
(1) Excluding Orchard Hotel Shopping Arcade(2) CBRE valuation as at 31 December 2006
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Overview Of Current Portfolio:Singapore And New Zealand
Freehold N/ALeaseholdTitle
S$446,916(2)NZ$248,352 (S$263,749)(2)S$490,187(1)Valuation per room
S$1,064.1 m(1)NZ$113 m(S$120.0 m)(2)S$944.1 m(1)Valuation
2,3814551,926Number of Rooms
TotalNew Zealand AssetSingapore Assets
(1) Excluding Orchard Hotel Shopping Arcade(2) At exchange rate of NS$1 to S$1.062
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Hotels Strategically Located
Singapore Hotels
CENTRALBUSINESSDISTRICT
ORCHARDROAD
SINGAPORERIVER
INTEGRATEDRESORT SITE
BUSINESS &FINANCIAL CENTRE
SITE
Orchard Hotel &Shopping Arcade
CopthorneKing’s Hotel
Grand CopthorneWaterfront Hotel
M Hotel
New Zealand Hotel
Rendezvous Hotel Auckland
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Orchard Hotel,Singapore
♦ 653 rooms♦ Located in Orchard Road♦ Newly renovated rooms♦ Significant meeting facilities - large columnless
ballroom for large events♦ Appeals to both corporate and leisure segment
Significant Highlights
♦ Best Accommodation Experience 2005
♦ Executive Chef of the Year 2006
♦ Asian Ethnic Chef of the Year 2005 & 2006
♦ Asian Ethnic Restaurant of the Year 2005
Accolades
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Grand Copthorne Waterfront,Singapore
♦ 550 rooms – 11 new rooms added on 1 January 2007 to room inventory from conversion of certain areas into hotel rooms
♦ Located between CBD and Orchard Road
♦ Close to proposed BFC and IR
♦ One of the largest conference facilities in Singapore
♦ Well positioned for the MICE market
Significant Highlights
♦ Best Meetings & Conventions Hotel 2006
♦ Winner of Chef RAS 2006 competition
Accolades
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M Hotel,Singapore
♦ 413 rooms♦ Located in the heart of the financial district♦ Close to proposed BFC and IR♦ Completed refurbishment in 2003 ♦ Strong following of business travellers
Significant Highlights
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Copthorne King’s Hotel,Singapore
Significant Highlights♦ 310 rooms♦ Located between CBD and Orchard Road♦ Completed refurbishment in 2004♦ Strong corporate segment focus
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92.5%Occupancy(1)
S$5.99Average rental psf(1)
S$7,184 psm (S$667 psf)
Valuation psm (psf)
75 yearsfrom Listing Date
Lease Term
S$35.1 mValuation
4,886.2 sq mNet Lettable Area
Orchard Hotel Shopping Arcade,Singapore
(1) Occupancies and average rental psf on a committed basis
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Rendezvous Hotel Auckland,New Zealand
♦ 455 rooms – largest hotel in Auckland by rooms
♦ Freehold♦ Located in the central business district and
next to a major conference centre
Significant Highlights
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Strengths Of CDL Hospitality Trusts
Well Positioned Assets22
Favourable Industry Fundamentals in Singapore33
Blue Chip Sponsor11
Growth Through Active Asset Management55
Growth Through Acquisitions55
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Visitor Arrivals In Singapore
8,3288,942
9,748
17,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2004 2005 2006 2015 (F)
Thou
sand
s
Visitor Arrivals (Full year)
Strong Growth In Visitor Arrivals In Singapore – Historical And Projected
Source: STB
+7.4%
+9.0%
CAGR = +6.4%
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Significant Growth From Many Of The Top 10 Visitor Arrival Countries
Breakdown Of Visitor Arrivals To Singapore For 2006
Indonesia, 1,921,455
China, 1,036,957
Australia, 691,547
India, 658,655
Malaysia, 634,116
Japan, 594,198
United Kingdom,
488,078
South Korea, 454,666
USA, 399,712
Phillippines, 385,960
Others, 2,482,863
'05 To '06 Year On Year Growth In Top 10 Visitor Arrival
Countries For Singapore
20.6%
7.6%
24.8%
4.5%
1.0%
9.7%
12.9%
11.5%
20.9%
5.9%
0.0% 10.0% 20.0% 30.0%
Philippines
USA
South Korea
United Kingdom
Japan
Malaysia
India
Australia
China
Indonesia20%
11%
7%
7%7%6%
5%
5%
4%
4%
25%
Source: Singapore Tourism Board
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Minimal Hotel Room Supply Expected In 2007 And 2008
Waterfall Chart - Current and Expected Hotel Room Supply in Singapore
3,030
1,885 38,136
30,476712
2,137
25,000
27,000
29,000
31,000
33,000
35,000
37,000
39,000
'06 '07 '08 '09 '10 Total '10
Tota
l Dai
ly R
oom
Inve
ntor
y
Source: CBRE Report dated 23 February 2007
’06 to ’10 CAGR = +5.8%
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Potential To Grow Average Room Rates In Singapore
Low Relative Room Rates
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Steady Growth In International Arrivals To New Zealand
Source : New Zealand Ministry of Tourism
NZ International Tourist Arrivals
0500
1,0001,5002,0002,500
3,0003,500
1999
2000
2001
2002
2003
2004
2005
2006
f
2007
f
2008
f
2009
f
2010
f
2011
f
2012
f
Arr
ival
s (,0
00)
2005 – 2012 CAGR = 4.0%• Total visitor nights expected to grow
at an average rage of 4.9% p.a., rising to 59.8 mil in 2012
• Growth underpinned by increasing exposure of New Zealand in high profile and successful films like Lord of the Rings, King Kong and Chronicles of Narnia
• New Zealand increasingly showcased as a land of natural beauty and adventure
Favourable Sentiment For NZ
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Strengths Of CDL Hospitality Trusts
Well Positioned Assets22
Favourable Industry Fundamentals in Singapore33
Blue Chip Sponsor11
Growth Through Active Asset Management55
Growth Through Acquisitions55
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Acquisitions Opportunities From Multiple Sources
• Owns / operates 101 hotels globally(1)
• Right of First Refusal(2)
– Future sales of Singapore hotels owned by M&C
– Offers of Singapore hotels made to M&C
• Potential growing acquisition pipeline as M&C seeks to expand its presence globally with greenfield hotel developments
• Global network of hospitality relationships
• Hotel chains seeking to free up capital to focus on management fee income
• Independent, single hotel owners lacking scale and looking to exit hotel investment
• Private equity looking to exit investments
• Independent hotel owners looking for sale and leaseback arrangements
• Turnaround opportunities
M&C Third party
(1) Excluding 4 hotels in Singapore(2) For 5 years from listing date
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Copthorne Orchid Is Subject To A Right Of First Refusal
♦ 440 rooms
♦ 3 F&B outlets
♦ Located in tranquil surroundings near Botanic Gardens and Orchard Road
Significant Highlights
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CDL-HT Target Markets
Specific Countries of Interest
▪ Singapore ▪ New Zealand ▪ Australia ▪ Vietnam ▪ Hong Kong ▪ Thailand▪ China ▪ India ▪ Japan ▪ Maldives ▪ Malaysia ▪ UAE
Singapore
Australia
New Zealand
VietnamThailand
ChinaIndia
Malaysia
Middle East
Maldives
Hong Kong
Singapore
Australia
New Zealand
VietnamThailand
ChinaIndia
Malaysia
UAE
Maldives
Hong Kong
Japan
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Strengths Of CDL Hospitality Trusts
Well Positioned Assets22
Favourable Industry Fundamentals in Singapore33
Blue Chip Sponsor11
Growth Through Active Asset Management55
Growth Through Acquisitions55
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Evolution of Market Mix
14.4 20.1 22.5 27.1
29.040.4
50.4
67.1
0102030405060708090
100
2003 2004 2005 2006
Hot
els
Roo
ms
Rev
enue
(S$
m)
Leisure/Others Corporate
`
Continuing Shift To Higher Yielding Corporate Segment(1)
66.8%
33.2%
66.7%
33.3%
69.1%
30.9%
71.2%
28.8%
(1) “Corporate segments” is as defined in the IPO Prospectus dated 10 July 06
43.4
60.5
72.9
94.2
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Asset Enhancement Opportunities Being Considered
Grand CopthorneWaterfront
Orchard HotelShopping Arcade
5th and 6th Floors -
currently bareEntire building
Areas Under Consideration For Asset Enhancement
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Strengths Of CDL Hospitality Trusts
Well Positioned Assets22
Favourable Industry Fundamentals in Singapore33
Blue Chip Sponsor11
Growth Through Active Asset Management55
Growth Through Acquisitions55
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Structure of CDL Hospitality Trusts
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Holdings of H-REIT and HBT as Stapled Securities
CDL Hospitality Trusts Structure
Sponsor Investors
Master Lessees
Hotel Manager
DBS Trustee
M&C REIT Management Limited
(H-REIT Manager)
M&C Business Trust Management Limited
(HBT Trustee Manager)H-REIT (owns hotels)
HBT(1)
H-REIT HBT
≈39.2% ≈60.8%
Distributions
Stapling Deed
Lease of Hotels
Operates and manages the Hotels under hotel management agreements
Lease of Hotels
RentActs on behalf of the holders of H-REIT Units
Management services
Management services and acts on behalf of the holders of the HBT Units
Operates and manages the Hotels under hotel management agreements
(1) Dormant as at 28 February 2007(2) To be appointed by HBT when HBT steps in as master lessee in the event no other master lessee can be found
For simplicity, the diagram does not include Orchard Hotel Shopping Arcade. Orchard Hotel Shopping Arcade tenants will pay rent to H-REIT directly and H-REIT Manager will manage Orchard Hotel Shopping Arcade directly
Hotel Manager(2) Note: Dormant
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Lease Structures
Favourable Lease
Structure in Singapore(1)
• Total rent to H-REIT from Auckland Hotel:• Base rent + Variable rent• Base rent escalates at 2.75% per annum• For first year, total rent = NS$8.9 Mn (S$9.2 Mn)(2)(3)
• Total Rent secured by Vendor for first 3 years
High Degree of Stability
from Auckland
Lease
• Hotels:• 20% of Hotel's revenue + 20% of Hotel’s gross operating profit subject to a Fixed Rent floor of $26.4M• Term of 20 years with 20 year option
• Orchard Hotel Shopping Arcade:• H-REIT receives rents direct from tenants
(1) Based on IPO prospectus dated 10 Jul 2006 and announcement of acquisition dated 30 Oct 06 (2) At exchange rate of NZ$NZ to S$1.03 as at 27 October 2006(3) Based on announcement of acquisition dated 30 Oct ’06
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Results for FY 2006
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Strong Performance Over Same Period Pro-Forma YTD ’05
Gross Revenue and NPI - Same Period Year on Year Comparision
20,688
28,189
18,866
25,889
0
5,000
10,000
15,000
20,000
25,000
30,000
Pro-forma - 19 Jul to31 Dec '05
Actual - IPO to 31 Dec'06
Gross Revenue NPI
Distributable Income - Same Period Year on Year Comparision
13,211
20,304
0
5,000
10,000
15,000
20,000
25,000
Pro-forma 19 Jul to31 Dec '05
Actual - IPO to 31Dec '06
Distributable income
Gross Rev = +36.3%NPI = +37.2%
+53.7%
S$’000 S$’000
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Strong Performance Over Forecast By CDL-HT
Gross Revenue and NPI Performance For Q4 '06
13,609
16,929
12,501
15,559
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Forecast Q4 '06 Actual Q4 '06
Gross Revenue NPI
Gross Revenue and NPI Performance (IPO to 31 Dec '06)
24,555
28,189
22,555
25,889
0
5,000
10,000
15,000
20,000
25,000
30,000
Forecast - IPO to 31Dec '06
Actual - IPO to 31Dec '06
Gross Revenue NPI
Gross Rev = +24.4%NPI = +24.5%
Gross Rev = +14.8%NPI = +14.8%
S$’000 S$’000
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Income Available For Distribution: Significant Increase Over Forecasts
Income Available For Distribution Per Stapled Security For Period From IPO to 31 Dec '06
2.382.89
5.23
6.35
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
Forecast to 31 Dec '06 Actual to 31 Dec '06
Income available for distribution Annualized distributable income
+21.4%S¢
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43
Performance Driven By Strong Q4:Forecast vs. Actual
ARR: Forecast vs. Actual Q4 '06
$155
$166
$145$150$155$160$165$170
Forecast Q4 Actual Q4
Occupancy: Forecast vs. Actual Q4 '06
82%
88%
78%80%82%84%86%88%90%
Forecast Q4 Actual Q4
RevPAR: Forecast vs. Actual Q4 '06
$125
$146
$110
$115
$120
$125
$130
$135
$140
$145
$150
Forecast Q4 Actual Q4
+7.1%
+600 bp (7.3%)
+16.8%
S$
S$
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Overall H2 Performance Strong:Forecast vs. Actual
ARR: Forecast vs. Actual H2 '06
$155
$166
$145$150$155$160$165$170
Forecast H2 Actual H2
Occupancy: Forecast vs. Actual H2 '06
83%
86%
81%82%83%84%85%86%87%
Forecast H2 Actual H2
RevPAR: Forecast vs. Actual H2 '06
$129
$143
$120
$125
$130
$135
$140
$145
Forecast H2 Actual H2
+7.1%
+300 bp (3.6%)
+10.9%
S$
S$
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Indicative Full Year On Year Comparison
ARR: Full Year on Year Comparison
$133
$163
$100$120$140$160$180
'05 Full Year '06 Full Year
Occupancy: Full Year on Year Comparison
78%
83%
74%76%78%80%82%84%
'05 Full Year '06 Full Year
RevPAR: Full Year on Year Comparison
$103
$134
$70
$80
$90
$100
$110
$120
$130
$140
'05 Full Year '06 Full Year
+22.6%
+500 bp (6.4%)
+30.1%
S$
S$
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Breakdown of Performance
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Breakdown Of Gross Rental Revenues By Property
Orchard Hotel
Grand CopthorneWaterfront
Hotel M HotelCopthorne
King’s
Orchard Hotel
Shopping Arcade
Rendez-vous Hotel
Gross rental revenue (Actual for
YTD 31 Dec ‘06)
Gross rental revenue (Pro-forma for YTD 31 Dec ‘05)
% difference
S$7.3 m S$5.3 m S$4.1 m S$2.4 m S$1.6 m -
31.7% 51.7% 33.0% 35.6% - 2.1% -
S$9.6 m S$8.1 m S$5.4 m S$3.3 m S$1.5 m S$.3 m
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CDL-HT Revenue Streams More Diversified
Breakdown between Fixed and Variable Rent for 2006
12,007 12,007
12,54816,182
0
5,000
10,000
15,000
20,000
25,000
30,000
Forecast (19 Jul to31 Dec)
Actual (12 Jun to 31Dec)
Fixed Rent Variable Rent
Breakdown of Gross Revenue By Property (S$,000) for 2006
Orchard Hotel
Shopping Arcade, 1,529
Copthorne King's Hotel,
3,262
Rendezvous Hotel
Auckland, 260
Orchard Hotel, 9,607
Grand Copthorne Waterfront
Hotel, 8,094
M Hotel, 5,437
24,55528,189
48.9%
51.1%
42.6%
57.4%12%
5%
19%
29%
34%
1%
S$’000
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CDL-HT Assets Have Been Re-Valued Upwards
Valuation of H-REIT Properties
120 12035 3586 101
162 191
234267
330
385
0
200
400
600
800
1,000
1,200
Purchase Price 31 Dec 2006 Valuation
Mill
ions
Orchard
Grand Copthorne Waterfront
M
Copthorne King's
Orchard Hotel Shopping Arcade
Rendezvous
16.6%
Increase In Valuation
14.1%
18.3%
17.3%
1.8%
0.0%
13.8%TOTAL
34.2%
24.2%
16.7%
8.9%
12.4%3.6%
35.0%
24.3%
17.4%
9.2%
10.9%3.2%
Source: CBRE valuation reports. Rendezvous Hotel converted to S$ at the rate of NZ$1 = S$1.0628Note: % represent % of total valuation of properties(1) As at 31 December 2007
966.5
1,099.4
Gearing = 34.7%(1)
S$
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Thank You