CDL Hospitality Trusts · SGX:J85
CDL Hospitality Trusts — H1 2007 Earnings Presentation
49 slides from CDL Hospitality Trusts's earnings presentation, Jul 31, 2007
Slide 1: Presentation of H1 & Q2 2007 Results
Presentation of H1 & Q2 2007 Results 31 July 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-M
Slide 3: Table Of Contents
Table Of Contents Highlights Results for H1 2007 Annex ♦ Background and Structure of CDL Hospitality Trust ♦ Strengths of CDL Hospitality Trust ♦ CDL Hospitality Trusts portfolio of hotels 3
Slide 4: Highlights
CDL HOSPITALITY TRUSTS Highlights
Slide 5: Executive Summary (I)
Executive Summary (I) 1 Acquisition of the Novotel Clarke Quay completed on 7th June 2007 2 Visitor arrivals for the first half of 2007 was approximately 4.9 million representing 5.2% growth. STB’s target for 2007 is 10.2 million visitors which is 4.6% growth from 2006. 3 Strong Q2 2007 performance
Slide 6: Executive Summary (II)
Executive Summary (II) Strong Q2 and H1 2007 performance with CDL-HT hotels(1) in 5 Singapore: Respectively - Average occupancy rate of 84.9% and 84.4% - Average daily rate of $203 and $193 - RevPAR of $172 and $163 6 Compared to Q2 2006(2), CDL-HT hotels(1): - Occupancy up 540 percentage points / 6
Slide 7: Executive Summary (III)
Executive Summary (III) 8 Successful completion of equity fund raising with net proceeds of $291 million from a total of 120,162,795 Stapled Securities issued: - 13,000,000 issued at $2.52 under private placement - 107,162,795 issued at $2.45 under preferential tranche representing 93.9% take up - 6
Slide 8: Details Of Distribution
Details Of Distribution Distribution for the period 1st January ‘07 to 18th July ‘07 4.37 ¢ per Stapled Security comprising: -Taxable income of 4.11 ¢ -Tax-exempt income of 0.26 ¢ July 2007 Closure of books: 5 pm on 18th July 2007 August 2007 Dividend distribution: 31st August 2007 8
Slide 9: Results for H1 2007
CDL HOSPITALITY TRUSTS Results for H1 2007
Slide 10: Growth Since IPO
Growth Since IPO RevPAR (1) : H2 '06 v H1 '07 Gross Revenue: H2 '06 v H1 '07 +37.4% $170 +13.9% $163 $50,000 $38,724 $40,000 $28,189 $160 $30,000 $150 $143 $20,000 $140 $10,000 $130 $0 H2 '06 H1 '07 H2 '06 H1 '07 NPI: H2 '06 v H1 '07 DPU: H2 '06 v H1 '07 +40.2% Cents $36,288 8.00 +33.6% $40,000 $30,
Slide 11: Gross Revenue and NPI – Projection vs Actual
Gross Revenue and NPI – Projection vs Actual Projection Q1 2007 vs Actual Q1 2007 S$ Gross Rev = 29.6% NPI = 31.9% 20,000 18,000 17,979 16,741 Projection H1 2007 vs Actual H1 2007 16,000 13,872 S$ 14,000 12,697 45,000 Gross Rev = 38.8% 12,000 NPI = 42.1% 10,000 38,724 8,000 40,000 36,288 S$ 6,000 4,
Slide 12: DPU – Projection vs Actual
DPU – Projection vs Actual Projection Q1 2007 vs Actual Q1 2007 Cents Projection H1 2007 vs Actual H1 2007 Period = 27.7% 9.0 Annualized = 27.9% 8.0 7.10 7.0 Cents 8.0 7.78 5.55 6.0 Period = 40.4% 5.0 Annualized = 40.2% 4.0 7.0 3.0 S$ 1.75 2.0 1.37 6.0 5.55 1.0 0.0 Projection Q1 2007 Actual Q1 2007
Slide 13: Strong Year-On-Year Growth: Q2 '06 vs Q2 '07
Strong Year-On-Year Growth: Pro-Forma Indicative Comparison for Q2 ‘06 vs Q2 ‘07 CDL-HT Singapore Hotels(1) ARR: Q2 '06 v Q2 '07 RevPAR: Q2 '06 v Q2 '07 S$ +25.3% S$ $250 $203 $200 $162 $200 $150 +33.3% $172 $180 $100 $50 $160 $0 $140 $129 Q2 '06 Q2 '07 $120 $100 Occupancy: Q2 '06 v Q2 '07 $80 86.0%
Slide 14: Strong Year-On-Year Growth: H1 '06 vs H1 '07
Strong Year-On-Year Growth: Pro-Forma Indicative Comparison for H1 ‘06 vs H1 ‘07 CDL-HT Singapore Hotels(1) ARR: H1 '06 v H1 '07 +20.6% RevPAR: H1 '06 v H1 '07 $250 S$ $193 $200 $160 S$ $150 $180 +29.4% $163 $100 $160 $50 $0 $140 $126 H1 '06 H1 '07 $120 $100 Occupancy: H1 '06 v H1 '07 $80 7.4% or 58
Slide 15: H1 '06 vs H1 '07 For The Novotel Clarke Quay
Strong Year-On-Year Growth: H1 ‘06 vs H1 ’07 For The Novotel Clarke Quay ARR: H1 '06 v H1 '07 RevPAR: H1 '06 v H1 '07 S$ $170 +16.0% $167 S$ $160 $150 $160 +40.2% $150 $144 $140 $140 $130 $120 $107 H1 '06 H1 '07 $100 $80 Occupancy: H1 '06 v H1 '07 +15.4% $60 100.0% 89.7% 74.3% 80.0% $40 60.0% 40.0%
Slide 16: 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 $11.4 m $8.9 m $6.3 m $4.4 m $1.8 m $4.5 m $1.4 m YTD 30 Jun ‘07) Gross rental
Slide 17: Growth in CDL-HT Total Property Value
Growth in CDL-HT Total Property Value Valuation of H-REIT Properties S$(‘000) +20.4% 1,323.4 m 1,400 +29.9% 1,099.4 m Key: 1,200 224 16.9% Novotel Clarke Quay . 120 10.9% 120 Rendezvous 9.1% 1,000 846.3 m Orchard Grand Copthorne Waterfront M 800 385 35.0% 385 29.1% Copthorne King's 330 39.0% Orchard
Slide 18: Annex A - Background to CDL Hospitality Trusts
Annex A - Background to CDL Hospitality Trusts 18
Slide 19: Background To CDL-HT
Background To CDL-HT Background Post IPO Performance High (10 Jul’07) IPO on 19 July 2006 $2.80 = S$2.66 $2.70 (US$1.76)(1) $2.60 Listed on SGX Mainboard $2.50 $2.40 $2.30 Sponsored by Millennium & $2.20 Copthorne Hotels plc (listed on LSE) $2.10 $2.00 $1.90 First Hotel REIT in Asia ex Japan
Slide 20: CDL-HT Structure
CDL-HT Structure Sponsor Investors ≈38.4% Holdings of Stapled Securities ≈61.6% 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 s
Slide 21: 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 22: Annex B - Strengths of CDL Hospitality Trusts
Annex B - Strengths of CDL Hospitality Trusts 22
Slide 23: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 4 Growth Through Acquisitions 5 Growth Through Active Asset Management 23
Slide 24: 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 Listed on the London Stock Exchange with market capitalisat
Slide 25: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 4 Growth Through Acquisitions 5 Growth Through Active Asset Management 25
Slide 26: CDLHT Asset Portfolio
CDLHT Asset Portfolio New Acquisitions post-IPO Orchard Hotel Grand Copthorne M Hotel Copthorne Orchard Hotel Rendezvous Novotel Clarke Total Waterfront Hotel King’s Hotel Shopping Arcade Hotel Auckland Quay Number of 653 550 413 310 N/A 455 398 2,779 Rooms NZ$113.0m Valuation S$384.9m S$267.2m S$19
Slide 27: CDL-HT is the Largest Hotel Owner in Singapore
CDL-HT is the Largest Hotel Owner in Singapore No. of Rooms 2,500 2,324 +20.7% 2,250 2,000 1,926 1,750 1,500 Portfolio prior to Novotel Clarke Quay Portfolio after Novotel Clarke Quay 27
Slide 28: Portfolio Valuation By Property
Portfolio Valuation By Property IPO Portfolio Present Portfolio Orchard Hotel Shopping Orchard Hotel Arcade, Shopping S$35.1m, 4% Novotel Clarke Arcade, Quay, S$224.0m, S$35.1m, 3% Copthorne King's 17% Hotel, S$101.0m, Orchard Hotel, 10% S$384.9m, 29% Orchard Hotel, M Hotel, S$384.9m, 39% S$191.0m,
Slide 29: Hotels In Strategic Locations
Hotels In Strategic Locations Singapore Hotels New Zealand Hotel Orchard Grand Copthorne M Hotel Novotel Hotel & Copthorne King’s Clarke Quay Rendezvous Shopping Waterfront Hotel Hotel Arcade Hotel Auckland ORCHARD ROAD SINGAPORE RIVER INTEGRATED RESORT SITE CENTRAL BUSINESS DISTRICT BUSINESS & FINA
Slide 30: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 4 Growth Through Acquisitions 5 Growth Through Active Asset Management 30
Slide 31: Strong Growth In Visitor Arrivals In Singapore
Strong Growth In Visitor Arrivals In Singapore – Historical and Forecast Singapore received a record 9.7m visitors in 2006, up by 9% from 2005 Visitor Arrivals In Singapore Noticeable increase in business CAGR for 2007 and MICE travel, as well as tourists to 2015 = from emerging affluent markets
Slide 32: Limited Supply Of Hotel Rooms In The Immediate Future
Limited Supply Of Hotel Rooms In The Immediate Future Current and Expected Hotel Room Supply in Singapore 2006 to 2010 CAGR = +5.9% 40,000 Total Supply Growth (2006 to 2010) = +25.7% 1,885 38,295 Total Daily Room Inventory 35,000 3,030 2,197 707 30,000 30,476 25,000 2006 2007 2008 2009 2010 Total 20
Slide 33: Growth From Many Of The Top Visitor Arrival Countries
Growth From Many Of The Top 10 Visitor Arrival Countries Jan-Jun '06 To Jan-Jun '07 Year On Year Growth In Top 10 Visitor Arrival Breakdown Of Visitor Arrivals To Singapore Countries For Singapore For Jan-Jun '07 Indonesia, 910,595 16.2% Philippines Others, 1,274,225 18% 2.8% USA 26% 2.2% South Kore
Slide 34: Potential For Average Room Rates To Rise
Potential For Average Room Rates To Rise Average Room Rates in Singapore relative to Regional Cities (1) (2) Regional Upper Tier Hotel Market Comparision 85% 350 81% 90% 74% 75% 70% 80% 300 Average Room Rates (US$) 312 70% 250 Occupancies (%) 60% 236 200 50% 202 180 40% 150 155 30% 100 20% 50 10% 0
Slide 35: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 4 Growth Through Acquisitions 5 Growth Through Active Asset Management 35
Slide 36: Acquisition Opportunities From Multiple Sources
Acquisition Opportunities From Multiple Sources M&C Third Parties Owns / operates 121 hotels globally (1) Hotel chains seeking to free-up capital to focus on management fee income Right of First Refusal(2) Independent, single hotel owners lacking scale and Future sales of Singapore hotels
Slide 37: 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 Japan Middle UAE China China East Thailand Hong India Hong Kong VietnamKong Thailand Vietnam Malaysia
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 4 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 56.7 60 67.1 71.2% 43.4 50 50.4 69.1% ` 40 40.4 66.7% 41.2 72.7% 30 29.0 66.8% 20 22.5 30.9% 27.1 28.8% 10 14.4 33.2% 20.1 33.3% 15.5 27.3% 0 2003 2004 2005 2006 H
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: Annex C - CDL Hospitality Trusts Portfolio of Hotels
Annex C - CDL Hospitality Trusts Portfolio of Hotels 41
Slide 42: 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 2006 ♦ Executive Chef
Slide 43: 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 44: 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 45: 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 ♦ Wine & Dine Singapore’s Best Restaurants 2006 – Tien Court ♦ American Express Top Restaurant Award 2005 – Princes
Slide 46: Orchard Hotel Shopping Arcade
Orchard Hotel Shopping Arcade Net Lettable Area 4,939 sq m CBRE valuation S$34.5 m Valuation psm (psf) S$6,984.80 psm (S$648.91 psf) % of total valuation ~3% Lease Term 75 years from Listing Date 46
Slide 47: 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 47
Slide 48: Novotel Clarke Quay, Singapore
Novotel Clarke Quay, Singapore Significant Highlights ♦ Prime superior hotel with 402 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 49: Thank You
Thank You CDL HOSPITALITY TRUSTS
CDL Hospitality Trusts — H1 2007 Earnings Presentation on 6ix