Cdl Hospitality Trusts · SGX:J85
Cdl Hospitality Trusts — Q1 2007 Earnings Presentation
45 slides from Cdl Hospitality Trusts's earnings presentation, May 2, 2007
Slide 1: Q1 2007 Results
CDL HOSPITALITY TRUSTS Q1 2007 Results 2d May 2007
Slide 2: Disclaimer
Disclaimer • 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
Slide 3: Table Of Contents
Table Of Contents • Highlights • Results for Q1 2007 • Annex – Background and Structure of CDL Hospitality Trust – Strengths of CDL Hospitality Trust 3
Slide 4: Highlights
CDL HOSPITALITY TRUSTS Highlights
Slide 5: Executive Summary (I)
Executive Summary (I) 1 Singapore visitor arrivals for Q1 2007 was more than 2.4 million representing 4.2% growth. STB’s target for 2007 is 10.2 million visitors which is 4.7% growth from 2006. Strong Q1 2007 performance with CDL-HT hotels in Singapore 2 - Average occupancy rate of 83.9% - Average d
Slide 6: Results for Q1 2007
CDL HOSPITALITY TRUSTS Results for Q1 2007
Slide 7: Three Quarters Of Strong Growth
Three Quarters Of Strong Growth RevPAR: Q3 '06, Q4 '06 & Q1 '07 Gross Revenue: Q3 '06, Q4 '06 & Q1 '07 S$ S$ $155 153 $20,000 +59.7% 17,979 +9.3% $150 $146 $15,000 $13,609 $11,260 $145 $140 $10,000 $140 $5,000 $135 $130 $0 Q3 '06 Q4 '06 Q1 '07 Q3 '06 Q4 '06 Q1 '07 NPI: Q3 '06, Q4 '06 & Q1 '07 Distri
Slide 8: Overall, Performance Strong: Compared To Projected Q1 2007
Overall, Performance “Strong”: Compared To Projected Q1 2007 Gross Revenue and NPI - Distributable Income - Comparison For Projection Q1 Comparision For Projection Q1 2007 and Actual Q1 2007 2007 and Actual Q1 2007 S$ S$ Gross Rev = 29.6% 20,000 NPI = 31.9% S$ 27.7% 17,979 13,000 12,306 18,000 16,74
Slide 9: Strong Year-On-Year Growth: Pro-Forma Indicative Comparison
Strong Year-On-Year Growth: Pro-Forma Indicative Comparison ARR: Q1 '06 v Q1 '07 RevPAR: Q1 '06 v Q1 '07 S$ S$ $190 +15.9% $182 $180 $180 $170 +25.4% $153 $157 $160 $160 $150 $140 $140 $122 Q1 '06 Q1 '07 $120 $100 Occupancy: Q1 '06 v Q1 '07 $80 +7.7% $60 86.0% 84.0% 84.0% 82.0% $40 80.0% 78.0% 78.0%
Slide 10: Overall Q1 Performance Is Strong: Projected vs. Actual
Overall Q1 Performance Is Strong: Projected vs. Actual ARR: Projected vs. Actual Q1 '07 RevPAR: Projected vs. Actual Q1 '07 S$ S$ $190 +12.3% $182 $155 $153 $180 $170 $162 $150 +15.9% $160 $150 $145 Projected Q1 Actual Q1 $140 Occupancy: Projected vs. Actual Q1 '07 $135 $132 85.0% +2.4% 84.0% $130 8
Slide 11: Breakdown of Performance
CDL HOSPITALITY TRUSTS Breakdown of Performance 11
Slide 12: H-REIT Revenue Streams More Diversified
H-REIT Revenue Streams More Diversified Breakdown between Fixed and Variable Breakdown of Gross Revenue By Rent Property (S$,000) 17,089 Rendezvous 18,000 Hotel 12,980 Thousands Auckland, 16,000 2214 14,000 Orchard 8,209 5% Orchard 48.0% Hotel 12% 12,000 Hotel, 5,552 48.3% Shopping 5% Arcade, 890 30
Slide 13: Annex A - Background to CDL Hospitality Trusts
Annex A - Background to CDL Hospitality Trusts 13
Slide 14: Background To CDL Hospitality Trusts
Background To CDL Hospitality Trusts Background Post IPO Performance High (12 Mar’07) • IPO on 19 July 2006 $2.20 = S$2.04 (US$1.35)(1) $2.10 $2.00 • Listed on SGX Mainboard $1.90 $1.80 • Sponsored by Millennium $1.70 $1.60 & Copthorne Hotels plc $1.50 IPO Price = $0.83 31 Mar ’07 = $1.40 (listed on
Slide 15: Annex B - Strengths of CDL Hospitality Trusts
Annex B - Strengths of CDL Hospitality Trusts 15
Slide 16: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 5 Growth Through Acquisitions 5 Growth Through Active Asset Management 16
Slide 17: Blue Chip Sponsor With Global Brand
Blue Chip Sponsor With Global Brand 3 Global Brands 105 hotels in 18 Countries China Indonesia Singapore Ecuador Korea Taiwan Egypt Malaysia Thailand New France UAE Zealand United Germany Philippines Kingdom United Hong Kong Qatar States Listed in London Stock Exchange with market capitalisation of
Slide 18: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 5 Growth Through Acquisitions 5 Growth Through Active Asset Management 18
Slide 19: Overview Of Current Portfolio: Singapore
Overview Of Current Portfolio: Singapore Grand Copthorne Copthorne King’s Orchard Hotel Orchard Hotel M Hotel Total Waterfront Hotel Hotel Shopping Arcade Number of Rooms 653 550 413 310 N/A 1,926 Car Park Lots 454 287 237 77 N/A 1,055 # of F&B Outlets 5 4 4 4 N/A 17 13 rooms 34 rooms 9 rooms 5 room
Slide 20: Overview Of Current Portfolio: Singapore And New Zealand
Overview Of Current Portfolio: Singapore And New Zealand New Zealand Singapore Assets Total Asset Number of Rooms 1,926 455 2,381 NZ$113 m Valuation S$944.1 m(1) S$1,064.1 m(1) (S$120.0 m)(2) NZ$248,352 Valuation per room S$490,187(1) S$446,916(2) (S$263,749)(2) Title Leasehold Freehold N/A (1) Excl
Slide 21: Hotels Strategically Located
Hotels Strategically Located Singapore Hotels New Zealand Hotel Orchard Hotel Grand Copthorne M Hotel Rendezvous & Copthorne King’s Hotel Hotel Shopping Waterfront Auckland Arcade Hotel ORCHARD ROAD SINGAPORE RIVER INTEGRATED RESORT SITE CENTRAL BUSINESS DISTRICT BUSINESS & FINANCIAL CENTRE SITE 21
Slide 22: Orchard Hotel, Singapore
Orchard Hotel, Singapore Significant Highlights ♦ 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 Accolades ♦ Best Accommodation Experience 2005 ♦ Executive Chef
Slide 23: Grand Copthorne Waterfront, Singapore
Grand Copthorne Waterfront, Singapore Significant Highlights ♦ 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 Sing
Slide 24: M Hotel, Singapore
M Hotel, Singapore Significant Highlights ♦ 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 24
Slide 25: Copthorne King's Hotel, Singapore
Copthorne King’s Hotel, Singapore Significant Highlights ♦ 310 rooms ♦ Located between CBD and Orchard Road ♦ Completed refurbishment in 2004 ♦ Strong corporate segment focus 25
Slide 26: Orchard Hotel Shopping Arcade, Singapore
Orchard Hotel Shopping Arcade, Singapore Net Lettable Area 4,886.2 sq m Occupancy(1) 92% Average rental psf(1) S$6.10 Valuation S$35.1 m Valuation psm (psf) S$7,184 psm (S$667 psf) Lease Term 75 years from Listing Date (1) Occupancies and average rental psf on a committed basis 26
Slide 27: Rendezvous Hotel Auckland, New Zealand
Rendezvous Hotel Auckland, New Zealand Significant Highlights ♦ 455 rooms – largest hotel in Auckland by rooms ♦ Freehold ♦ Located in the central business district and next to a major conference centre 27
Slide 28: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 5 Growth Through Acquisitions 5 Growth Through Active Asset Management 28
Slide 29: Strong Growth In Visitor Arrivals In Singapore
Strong Growth In Visitor Arrivals In Singapore – Historical and Forecast Visitor Arrivals In Singapore 18,000 17,000 Thousands CAGR = +6.4% 16,000 14,000 12,000 +4.8% +9.0% +7.4% 10,200 9,748 10,000 8,994 8,322 8,000 6,000 4,000 2,000 0 2004 2005 2006 2007 (F) 2015 (F) Visitor Arrivals (Full year) S
Slide 30: Significant Growth From Many Of The Top Visitor Arrival Countries
Significant Growth From Many Of The Top 10 Visitor Arrival Countries Q1 '06 To Q1 '07 Year On Year Growth In Breakdown Of Visitor Arrivals To Singapore Top 10 Visitor Arrival Countries For For Q1 '07 Indonesia, Singapore 428,734 Others, 639,009 Philippines 18% 19.3% 26% 1.9% USA 2.1% South Korea Chi
Slide 31: Minimal Hotel Room Supply Expected In 2007 And 2008
Minimal Hotel Room Supply Expected In 2007 And 2008 With IR’s in 2009 & 2010 Waterfall Chart - Current and Expected Hotel Room Supply in Singapore 41,000 ’06 to ’10 CAGR = +6.1% 39,000 Total Supply Growth = 26.8% Total Daily Room Inventory 2,385 38,636 37,000 35,000 3,030 33,000 2,137 31,000 712 30,
Slide 32: Potential To Grow Average Room Rates In Singapore
Potential To Grow Average Room Rates In Singapore Low Relative Room Rates (1) (2) Regional Upper Tier Hotel Market Comparision 85% 350 81% 90% 74% 75% 70% 80% 300 312 Average Room Rates (US$) 70% 250 Occupancies (%) 60% 236 200 50% 202 180 40% 150 155 30% 100 20% 50 10% 0 0% Bangkok Beijing Singapor
Slide 33: Steady Growth In International Arrivals To New Zealand
Steady Growth In International Arrivals To New Zealand Favourable Sentiment For NZ NZ International Tourist Arrivals • Total visitor nights expected to grow 2006 – 2012 CAGR = 4.4% 3,500 at an average rage of 4.9% p.a., rising to 59.8 mil in 2012 3,000 Arrivals (,000) 2,500 • Growth underpinned by i
Slide 34: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 5 Growth Through Acquisitions 5 Growth Through Active Asset Management 34
Slide 35: Acquisitions Opportunities From Multiple Sources
Acquisitions Opportunities From Multiple Sources M&C Third party • Owns / operates 101 hotels globally(1) • Hotel chains seeking to free up capital to focus on management fee income • Right of First Refusal(2) – Future sales of Singapore hotels owned • Independent, single hotel owners by M&C lacking
Slide 36: Copthorne Orchid Is Subject To A Right Of First Refusal
Copthorne Orchid Is Subject To A Right Of First Refusal Significant Highlights ♦ 440 rooms ♦ 3 F&B outlets ♦ Located in tranquil surroundings near Botanic Gardens and Orchard Road 36
Slide 37: CDL-HT Target Markets
CDL-HT Target Markets Specific Countries of Interest ▪ Singapore ▪ New Zealand ▪ Australia ▪ Vietnam ▪ Hong Kong ▪ Thailand ▪ China ▪ India ▪ Japan ▪ Maldives ▪ Malaysia ▪ UAE Japan Middle UAE China East Thailand Hong India Vietnam Kong Malaysia Maldives Singapore Australia New Zealand 37
Slide 38: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 5 Growth Through Acquisitions 5 Growth Through Active Asset Management 38
Slide 39: Continuing Shift To Higher Yielding Corporate Segment
Continuing Shift To Higher Yielding Corporate Segment(1) Evolution of Market Mix 94.2 100 Hotels Rooms Revenue (S$ m) 90 72.9 80 60.5 70 60 67.1 71.2% 43.4 50 50.4 69.1% ` 40 40.4 66.7% 26.5 30 29.0 66.8% 20 17.3 65.4% 22.5 30.9% 27.1 28.8% 10 14.4 33.2% 20.1 33.3% 9.2 34.6% 0 2003 2004 2005 2006 Q1
Slide 40: Asset Enhancement Opportunities Being Considered
Asset Enhancement Opportunities Being Considered Areas Under Consideration For Asset Enhancement Grand Copthorne Orchard Hotel Waterfront Shopping Arcade 5th and 6th Floors - Entire building currently bare 40
Slide 41: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 5 Growth Through Acquisitions 5 Growth Through Active Asset Management 41
Slide 42: Annex C - Structure of CDL Hospitality Trusts
Annex C - Structure of CDL Hospitality Trusts 42
Slide 43: CDL Hospitality Trusts Structure
CDL Hospitality Trusts Structure Sponsor Investors ≈39.2% Holdings of H-REIT and HBT as ≈60.8% Stapled Securities H-REIT Distributions HBT Management services Stapling Deed M&C REIT M&C Business Trust Management Limited H-REIT HBT(1) Management Limited (H-REIT Manager) (owns hotels) (HBT Trustee Man
Slide 44: Lease Structures
Lease Structures • Hotels: • 20% of Hotel's revenue + 20% of Hotel’s gross operating Favourable profit subject to a Fixed Rent floor of $26.4M Lease • Term of 20 years with 20 year option Structure in Singapore(1) • Orchard Hotel Shopping Arcade: • H-REIT receives rents direct from tenants • Total r
Slide 45: Thank You
CDL HOSPITALITY TRUSTS Thank You
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