CDL Hospitality Trusts · SGX:J85
CDL Hospitality Trusts — Q1 2008 Earnings Presentation
55 slides from CDL Hospitality Trusts's earnings presentation, Apr 30, 2008
Slide 1: Presentation of 1Q 2008 Results
Presentation of 1Q 2008 Results 30 April 2008
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 Financial Performance of CDL Hospitality Trusts Asset Enhancement Works Background and Structure of CDL Hospitality Trusts Strengths of CDL Hospitality Trusts 3
Slide 4: Highlights
CDL HOSPITALITY TRUSTS Highlights
Slide 5: Executive Summary
Executive Summary Visitor arrivals for 1Q 2008 was more than 2.6 million representing 6.6% year- 1 on-year growth. STB’s target for 2008 of 10.8 million visitors represents a target 5.1% growth from 2007. 2 Strong 1Q 2008 performance by CDL-HT vs 1Q 2007 - Gross revenues of $27.9 million - up 55% -
Slide 6: Financial Performance of CDL Hospitality Trusts
Financial Performance of CDL Hospitality Trusts 6
Slide 7: Strong Year-On-Year Hotel Performance: Pro-Forma 1Q '07 vs Actual 1Q '08
Strong Year-On-Year Hotel Performance: Pro-Forma(1) 1Q ’07 vs Actual 1Q ’08 CDL-HT Singapore Hotels ARR: 1Q '07 v 1Q '08 S$ RevPAR: 1Q '07 v 1Q '08 300 +38.0% $247 S$ 250 +37.7% $208 $179 200 200 150 100 50 $151 0 150 1Q '07 1Q '08 Occupancy: 1Q '07 v 1Q '08 100 86% -0.2% or -0.2 pp 85% 84.6% 50 84.
Slide 8: Singapore Hotel Rooms Are Still Affordable
Singapore Hotel Rooms Are Still Affordable Comparison of 4 and/or 5 Star Hotels Across Global Cities in 2007 1,600 90% 83.5% 83.6% 1,400 80.9% 85% 76.3% 80% 1,200 75% Occupancy (%) 1,000 ARR (US$) 879 70% 800 65% 600 60% 473 55% 400 218 50% 175 200 45% - 40% New York London Hong Kong Singapore (5 St
Slide 9: Gross Revenue, NPI And DPU: Actual 1Q '07 vs Actual 1Q '08
Gross Revenue, NPI And DPU: Actual 1Q ’07 vs Actual 1Q ’08 S$’000 Gross Revenue 30,000 +55.1% 27,894 Distribution Per Unit (DPU) 25,000 S$ cents 20,000 17,979 3.50 +63.4% 15,000 10,000 3.00 2.86 5,000 2.50 0 1Q '07 1Q '08 2.00 1.75 Net Property Income (NPI) 1.50 S$’000 30,000 +55.8% 1.00 26,075 25,0
Slide 10: Breakdown Of Gross Revenue By Property
Breakdown Of Gross Revenue By Property Actual 1Q ’07 vs Actual 1Q ’08 Gross Revenue from H-REIT Properties S$ mn 30 +55.1% S$ 27.9 mn Key: 25 18% 5.1 Novotel Clarke Quay 8% 2.3 Rendezvous Hotel Auckland 20 S$ 18.0 mn 4% 1.0 10% 2.8 Orchard Hotel Shopping Arcade 12% 2.2 5% 0.9 Copthorne King’s Hotel
Slide 11: Breakdown Of Gross Rental Revenues By Property
Breakdown Of Gross Rental Revenues By Property Grand Orchard Copthorne Hotel Rendez- Novotel Orchard Waterfront Copthorne Shopping vous Clarke Hotel Hotel M Hotel King’s Arcade Hotel Quay Gross rental revenue (Actual for $ 7.2 m $5.5 m $4.0 m $2.8 m $1.0 m $2.3 m $5.1 m 1Q ‘08) Gross rental revenue
Slide 12: Growth in CDL-HT Total Property Value
Growth in CDL-HT Total Property Value Valuation of H-REIT Properties S$ mn +48.1% 1,800 1,627.8 mn 1,600 Key: +29.9% 275 16.9% Novotel Clarke Quay 1,400 1,099.4 mn . Rendezvous 127 7.8% Orchard 1,200 Grand Copthorne Waterfront 846.3 mn M 120 10.9% 1,000 458 28.1% Copthorne King's Orchard Hotel Shopp
Slide 13: Composition Of CDL-HT Property Value
Composition Of CDL-HT Property Value Valuation at 31 Dec 2006 (S$ mn) Valuation at 31 Dec 2007 (S$ mn) Orchard Hotel Shopping Orchard Hotel Shopping Rendezvous, Arcade, $35 Arcade, $40 $120 Novotel Clarke Quay, $275 Copthorne King's, $141 Copthorne King's, $101 2% 11% 4% 9% 9% 17% M Hotel, M Hotel,
Slide 14: Current Debt Capital Structure
Current Debt Capital Structure Available Facilities & Maturity Profile Facilities Drawn Down Key Information S$ mn S$ mn ♦ Fitch Issuer Default Rating: 1,000 1,000 ♦BBB- ♦ Average Cost of Debt 800 800 ♦For S$: Citi, 250 ♦S$220m fixed at 2.43% + margin 600 600 ♦Amounts beyond RBS, 145 S$220m are floa
Slide 15: Strong Balance Sheet
Strong Balance Sheet Debt Values (S$ Mn) S$ 400 Debt / Assets Ratio 310 323 S$ 300 40% 200 35% 100 30% 0 25% As at 31 Dec '07 As at 31 Mar '08 18.7% 19.5% 20% S$ Total Assets (S$ Mn) 1,800 1,657 1,657 15% 1,600 1,400 10% 1,200 1,000 5% 800 0% 600 400 As at 31 Dec '07 As at 31 Mar '08 200 0 As at 31
Slide 16: Asset Enhancement Works
CDL HOSPITALITY TRUSTS Asset Enhancement Works 16
Slide 17: New Extended-Stay Suites At Grand Copthorne Waterfront Hotel
24 New Extended-Stay Suites At Grand Copthorne Waterfront Hotel 24 Extended-Stay La Residenza Suites 5th and 6th floors converted into 24 suites 7 of the suites are ready Received positive responses from potential guests during pre-marketing phase All other suites expected to be launched by
Slide 18: Reconfiguration Of Serviced Office & Business Centre at M Hotel
Reconfiguration Of Serviced Office & Business Centre at M Hotel Additional Serviced Office Units & Meeting Rooms Refurbishment was completed end March Additional two serviced office units on 8th floor Additional two meeting rooms in Basement 1 18
Slide 19: Additional Deluxe Rooms And Refurbishment Of Swimming Pool At Novotel Clarke Quay
Additional Deluxe Rooms And Refurbishment Of Swimming Pool At Novotel Clarke Quay Enhanced Use of Space Rejuvenation of Existing Pool Refurbishment completed end March Refurbishment completed end February Present gym on 8th floor converted to two New pool flooring, landscaping, gazebos Delux
Slide 20: Background and Structure of CDL Hospitality Trusts
Background and Structure of CDL Hospitality Trusts 20
Slide 21: Background To CDL-HT
Background To CDL-HT Background Post IPO Performance Unit price increase • IPO on 19 July 2006 IPO to: Announcement of Equity • Listed on SGX Mainboard 31 Dec 07 = 183.1% Fund Raising High (10 Jul ’07) 29 Apr 08 = 124.1% = S$2.28 = S$2.66 • Sponsored by Millennium $3.00 Announcement of & Copthorne H
Slide 22: CDL-HT Structure
CDL-HT Structure Sponsor Investors ≈38.55% Holdings of Stapled Securities ≈61.45% 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 Manager) Lease of Hotels Management
Slide 23: Lease Structures
Lease Structures • Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel: • 20% of Hotel's revenue + 20% of Hotel’s gross operating profit subject to a Fixed Rent Favourable floor of $26.4 m Lease Structure in Base • Term of 20 years from Listing with 20 year option Portfo
Slide 24: Strengths of CDL Hospitality Trusts
Strengths of CDL Hospitality Trusts 24
Slide 25: Strengths Of CDL-HT
Strengths Of CDL-HT 1 Blue Chip Sponsor 2 High Quality, Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 4 Growth Through Acquisitions 5 Growth Through Active Asset Management 25
Slide 26: Blue Chip Sponsor With Global Brands
Blue Chip Sponsor With Global Brands 3 Global Brands More than 100 hotels in 17 Countries China Indonesia Singapore Egypt Korea Taiwan France Malaysia Thailand New Germany UAE Zealand United Hong Kong Philippines Kingdom United Qatar States Millennium and Copthorne Hotels plc is listed on the London
Slide 27: Strengths Of CDL-HT
Strengths Of CDL-HT 1 Blue Chip Sponsor 2 High Quality, Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 4 Growth Through Acquisitions 5 Growth Through Active Asset Management 27
Slide 28: CDL-HT Asset Portfolio
CDL-HT Asset Portfolio Orchard Grand Copthorne M Hotel Copthorne Orchard Hotel Rendezvous Novotel Total Hotel Waterfront Hotel King’s Hotel Shopping Arcade Hotel Auckland Clarke Quay Number of 653 550 413 310 N/A 455 401 2,782 Rooms NZ$114.0m Valuation S$458.0m S$334.0m S$253.0m S$141.0m S$40.3m S$2
Slide 29: Hotels In Strategic Locations
Hotels In Strategic Locations Singapore Hotels New Zealand Hotel Orchard Grand Copthorne M Hotel Novotel Hotel & Copthorne King’s Clarke Quay Rendezvous Shopping Waterfront Hotel Hotel Arcade Hotel Auckland ORCHARD ROAD SINGAPORE RIVER INTEGRATED RESORT SITE CENTRAL BUSINESS DISTRICT BUSINESS & FINA
Slide 30: CDL-HT The Largest Hotel Owner In Singapore
CDL-HT The Largest Hotel Owner In Singapore No. of Rooms in Singapore 2,500 +20.8% 2,327 2,250 2,000 1,926 1,750 1,500 Portfolio at IPO Current portfolio 30
Slide 31: 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 Asia Tatler’s Regional Best Restaurants 2008 Singa
Slide 32: Grand Copthorne Waterfront, Singapore
Grand Copthorne Waterfront, Singapore Significant Highlights 550 rooms + 24 extended stay rooms to be fully opened in the second quarter of 2008 Located between CBD and Orchard Road Close to proposed BFC and IR One of the largest conference facilities in Singapore Well positioned for the M
Slide 33: 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 Accolades Best Mid-Range Business Hotel 2005 The Award for Excellence, Best Corporate/
Slide 34: 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 Accolades Singapore Tatler’s Best Restaurants 2007 & 2008 – Tien Court Singapore Tatler’s Best Restaurants 2007 & 2008 –
Slide 35: Orchard Hotel Shopping Arcade, Singapore
Orchard Hotel Shopping Arcade, Singapore Net Lettable Area 4,939 sq m CBRE valuation S$40.3 m Valuation psm (psf) S$8,159 psm (S$758 psf) % of total valuation ~2% Leasehold Interest 75 years from Listing Date 35
Slide 36: 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 36
Slide 37: Novotel Clarke Quay, Singapore
Novotel Clarke Quay, Singapore Significant Highlights Prime superior hotel with 401 rooms Leasehold Located in immediate proximity to Clarke Quay, Robertson Quay and Boat Quay: Singapore’s premier entertainment hub Recently concluded a S$18.8 million comprehensive refurbishment program to gu
Slide 38: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 High Quality, Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 4 Growth Through Acquisitions 5 Growth Through Active Asset Management 38
Slide 39: Strong Historical Growth In Visitor Arrivals
Strong Historical Growth In Visitor Arrivals Visitor Arrivals In Singapore Average Visitor Length of Stay +5.1% +5.4% 12,000 3.7 +9.0% 10,800 3.6 +7.4% 10,275 9,748 3.6 10,000 8,942 8,328 3.5 8,000 Thousands 3.4 3.4 3.4 Days 6,000 3.3 3.2 3.2 3.2 4,000 3.2 3.1 2,000 3.1 0 3.0 2004 2005 2006 2007 200
Slide 40: Singapore – Growth Profile Of Top 10 Countries
Singapore – Growth Profile Of Top 10 Countries Breakdown of Visitor Arrivals To Singapore Jan-Dec '06 to Jan-Dec '07 Year On Year For Jan-Dec '07 Growth in Top 10 Visitor Arrival Countries for Singapore Indonesia, 1,956,293 Others, 2,660,600 2.3% USA 19% 26% 8.4% Philippines 2.1% South Korea 1.5% UK
Slide 41: Singapore – Continuing Growth In 1Q 2008
Singapore – Continuing Growth In 1Q 2008 Breakdown of Visitor Arrivals To Singapore Jan-Mar '07 to Jan-Mar '08 Year On Year For Jan-Mar '08 Growth in Top 10 Visitor Arrival Countries for Singapore Indonesia, 434,776 Others, 681,196 17% -7.4% Philippines 26% 1.3% USA 8.6% South Korea 13% China, 327,1
Slide 42: Forecast Is For Continuing Growth In Visitor Arrivals
Forecast Is For Continuing Growth In Visitor Arrivals Visitor Arrivals In Singapore Average Visitor Length of Stay(1) CAGR for 2007 18,000 to 2015 = 3.7 17,000 3.6 3.6 16,000 +6.7% 3.6 14,000 +5.1% 3.5 12,000 10,800 3.4 Thousands 10,275 3.4 Days 10,000 8,000 3.3 6,000 3.2 4,000 3.1 2,000 0 3.0 2007
Slide 43: Significant Investments To Attract MICE Business
Significant Investments To Attract MICE Business Marina Resorts Bay World at Sands Sentosa Investment S$5 Billion S$5.2 Billion Amount Hotels 2,500 5-star rooms in three hotel towers 1,800 hotel rooms in 6 hotels 570,000 sqm with MICE space of 110,390 sqm; For Largest column free ballroom in Asia 34
Slide 44: Singapore Positioning Itself As A Leisure Centre…
Singapore Positioning Itself As A Leisure Centre… Esplanade - Theatres on the Bay Singapore Flyer Waterfront performing arts theatre, Tallest giant observation wheel in opened in 2005 the world Platform for world class musicals, Expected to draw 2.5m visitors in plays, and art performances i
Slide 45: …And A Services Hub
…And A Services Hub Medical Tourism Educational Hub The World Health Organization ranked Singapore as Singapore positions itself as an educational hub, with having the best healthcare system in Asia in 2000 recognized institutions at various levels such as INSEAD, and the University of Chicago G
Slide 46: Limited Supply Of Hotel Rooms In The Immediate Future
Limited Supply Of Hotel Rooms In The Immediate Future Current and Expected Hotel Room Supply in Singapore 50,000 45,000 2007 to 2012 CAGR = 6.1% 700 370 41,468 40,000 3,868 35,000 4,252 1,489 30,000 30,789 25,000 2007 2008 2009 2010 2011 2012 Total 2012 46 Source: CBRE Report dated 31 December 2007.
Slide 47: Singapore Hotel Rooms Are Still Affordable
Singapore Hotel Rooms Are Still Affordable Comparison of 4 and/or 5 Star Hotels Across Global Cities in 2007 1,600 90% 83.5% 83.6% 1,400 80.9% 85% 76.3% 80% 1,200 75% Occupancy (%) 1,000 ARR (US$) 879 70% 800 65% 600 60% 473 55% 400 218 50% 175 200 45% - 40% New York London Hong Kong Singapore (5 St
Slide 48: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 High Quality, Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 4 Growth Through Acquisitions 5 Growth Through Active Asset Management 48
Slide 49: Acquisition Opportunities From Multiple Sources
Acquisition Opportunities From Multiple Sources M&C Third Parties Owns / operates > 100 hotels globally Hotel chains seeking to free-up capital to focus on Right of First Refusal(1) to future sales of Singapore management fee income hotels owned by M&C or offers of Singapore hotels Independe
Slide 50: CDLHT Target Markets
CDLHT Target Markets Specific Countries of Interest Singapore ▪ Australia ▪ China ▪ Hong Kong ▪ India ▪ Indonesia ▪ Japan ▪ Malaysia ▪ Maldives ▪ New Zealand ▪ Philippines ▪ Thailand ▪ Vietnam ▪ UAE ▪ Taiwan Japan UAE China Taiwan India Hong Kong Thailand Vietnam Malaysia Philippines Maldives Singap
Slide 51: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 High Quality, Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 4 Growth Through Acquisitions 5 Growth Through Active Asset Management 51
Slide 52: New Extended-Stay Suites At Grand Copthorne Waterfront Hotel
24 New Extended-Stay Suites At Grand Copthorne Waterfront Hotel 24 Extended-Stay La Residenza Suites 5th and 6th floors converted into 24 suites 7 of the suites are ready Received positive responses from potential guests during pre-marketing phase All other suites expected to be launched by
Slide 53: Reconfiguration Of Serviced Office & Business Centre at M Hotel
Reconfiguration Of Serviced Office & Business Centre at M Hotel Additional Serviced Office Units & Meeting Rooms Refurbishment was completed end March Additional two serviced office units on 8th floor Additional two meeting rooms in Basement 1 53
Slide 54: Additional Deluxe Rooms And Refurbishment Of Swimming Pool At Novotel Clarke Quay
Additional Deluxe Rooms And Refurbishment Of Swimming Pool At Novotel Clarke Quay Enhanced Use of Space Rejuvenation of Existing Pool Refurbishment completed end March Refurbishment completed end February Present gym on 8th floor converted to two New pool flooring, landscaping, gazebos Delux
Slide 55: Thank You
Thank You CDL HOSPITALITY TRUSTS
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