Page created by Mark Garrett
Pan Pacific Hotels Group Limited
                                            Annual Report 2010

A Brand
new era
Unleashing Our
Brand Potential
A new look for “Pan Pacific”
and “parkroyal”

G’day, Australia!
Upping our ante Down Under

Riding Waves in Bali
Relax and rejuvenate
at our newest resort

                                                                 Our                                                                                                             TABLE OF
                                                                 Creating memorable
                                                                 hotel experiences…

                                                                 Purpose                                                                                                                    Snapshot
                                                                 Great Brands, Great
                                                                 Hotels, Great People,
                                                                 Great Relationships!

                                                                 Our                                                                                                             Milestones
                                                                 Values                                                                                                          2010/11
                                                                 • We work better
                                                                   together because

A Note From
                                                                   we collaborate,
                                                                   share, care about                                                                                                                Chairman’s
                                                                   each other and

Pan Pacific                                                        communicate openly
                                                                   with everyone.

Hotels Group                                                     • We keep our
                                                                   processes as simple
                                                                   and as uncomplicated
                                                                   as possible and take
Pan Pacific Hotels Group owns and/or manages
                                                                   full responsibility for
over 30 hotels, resorts and serviced suites across                 our actions.                                                                                  Our Leadership                45 People’s Republic of China
Asia, Oceania and North America, including those
                                                                 • We have an “internal                                                                          12   Board of Directors       46 Australia
under development. Headquartered in Singapore,                                               ON THE COVER
                                                                   debate, external                                                                              16   Key Management           48 North America
it is a listed subsidiary of UOL Group Limited,
                                                                   cohesion” culture                                          Pan Pacific Hotels Group Limited
                                                                                                                                           Annual Report 2010

an established property company in Asia with a                     with a can-do                                                                                                               49 Our Awards 2010
diversified portfolio.                                             attitude and always                                                                           18   Group Structure
                                                                                                                                                                                               50 Our Pipeline Projects
                                                                   try to have fun.
                                                                                                                                                                 Our brands                    52   Human Capital
As an international hotel management company with more           • We enhance our                                                                                                                   and Development
                                                                                               A Brand
                                                                                               new era                                                           22   Embracing A
than 11,000 rooms including those under development,               performance by              Unleashing Our
                                                                                               Brand Potential
                                                                                               A new look for “Pan Pacific”                                           Brand New Era            54 Sustainability and Corporate
Pan Pacific Hotels Group is dedicated to creating memorable
                                                                                               and “parkroyal”

                                                                   always aiming higher        G’day, Australia!
                                                                                               Upping our ante Down Under

                                                                                                                                                                                                  Social Responsibility
hotel experiences. Its hospitality offerings are grouped           and are not afraid
                                                                                               Riding Waves in Bali
                                                                                               Relax and rejuvenate
                                                                                               at our newest resort
                                                                                                                                                                 24   Pan Pacific Hotels
under two acclaimed brands: “Pan Pacific” features luxurious       of making the tough                                                                                and Resorts
                                                                                             Pan Pacific Hotels                                                                                our performance
accommodations and refreshing experiences that entice              decisions.                Group ushers in                                                     28   PARKROYAL Hotels
the senses; while “PARKROYAL” reflects stylish comfort and                                   A Brand New Era,                                                                                  58   Five-Year Financial
authentic local encounters inspired by the interesting locales
                                                                                                                                                                      & Resorts
                                                                 • We respect and
                                                                                             marked by the                                                                                          Summary
                                                                                             refreshment of our
of its hotels.                                                                                                                                                   32   Lifestyle Brands
                                                                   care for our wider        “Pan Pacific” and
                                                                                                                                                                                               61   Financial Review
                                                                                             “PARKROYAL” brand
Pan Pacific Hotels Group builds brands that resonate with          community through         identities.
                                                                   being connected                                                                               OUR Hotels                    64 Group Value-Added
guests, customers and associates. It enhances shareholders’                                  Primed for growth,                                                                                   Statement
value by driving greater innovation, customer focus and            and sharing, we also      our brands are geared                                               36   Operations Overview
partner engagement. Complementing its hospitality brands,          recognise and value       for expansion in Asia,                                                                            65   Financial Contents
                                                                   diversity in every way.   Greater China, North                                                38   Portfolio Summary
the Group also owns and operates the award-winning                                           America and Australia.                                                                            65   Financial Calendar
“St Gregory” spas and “Si Chuan Dou Hua” restaurants.                                        Page 22                                                             42   Southeast Asia
a brand
2                                                                                               new era                                                                                                                             3

snapshot                                                                                                                Delivering Shareholder Value
                                                                                                                        Each year, embracing the challenge to drive operational
                                                                                                                        excellence – ensuring profitability, continued growth and
                                                                                                                        superior brand performance – has enabled Pan Pacific Hotels
                                                                                                                        Group to deliver solid financial results.
                                                   2006                       2010                  CAGR
 Revenue                                          $287m                      $324m                 3.10%                2010 was no exception. Continued efforts to grow our portfolio,
 RevPAR                                          $105.97                    $125.03                4.22%                strengthen our brands, nurture stakeholder relationships and
 EBITDA                                            $80m                       $97m                 4.94%                develop our human capital have stood us in good stead.
 Earnings per share*                            6.87 cents                 7.53 cents              2.32%
 Total assets                                     $740m                     $1,129m                11.13%               With these endeavours working together to create memorable
 Shareholders' funds                              $514m                      $802m                 11.75%               hotel experiences, we are confident in our ability to deliver
                                                                                                                        greater shareholder returns for years to come.
* before other gains/(losses)
  and fair value adjustments

                 group revenue $’M                                 RETURN ON shareholders’ EQUITY $’M                       Net Cash Flow Returns on Assets                              SOURCES OF FINANCE $’M

    350                                                                                                                                                                          1,200
                                                             900                                                 30%   30

                                                                                                                       25                                                        1,000


    300                                                                                                                                                                           800
                                                             600                                                 20%

                                                                                                                 15%                                                              600

                                                             400                                                       10

    250                                                      300                                                 10%                                                              400

                                                                                                                 5%                                                               200

    200                                                        0                                                 0     -5                                                           0

             2006      2007      2008    2009     2010              2006      2007      2008    2009      2010              2006      2007        2008         2009   2010               2006     2007         2008   2009   2010

          legend                                                    legend                                                  legend                                                       legend
                    Hotel               property                            Return             Average                             Singapore             Australia    vietnam                   NON-                   BORROWINGS
                    ownership           investments                         on Equity          Shareholders’                       hotels                hotels       hotels                    CONTROLLING
                                                                                               Fund                                average               average      average                   INTERESTS

                    hotel               investments                                                                                Myanmar               CHINA        malaysia                  INTERESTS OF
                    management                                                                                                     hotels                hotels       hotels                    THE EQUITY
                    services                                                                                                       average               average      average                   HOLDERS OF
                                                                                                                                                                                                THE COMPANY
                                                                                                                                   pan pacific
                                                                                                                                   hotels group

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                ANNUAL REPORT 2010
a brand
4                                                                                new era                                                                                                                5

milestones                                       February                                                          May
2010/11                                Riding Waves                                                    Common Platform for
                                       in Bali                                                         Seamless Integration
                                       A hotel management agreement for an integrated resort,          SAP was adopted Group-wide as the enterprise      and accounting systems enables quicker and
         January                       to be rebranded Pan Pacific Nirwana Bali Resort, was
                                       inked. Featuring 278 luxurious suites and villas, world-class
                                                                                                       resource-planning solution across our owned
                                                                                                       hotels. A common platform for our operating
                                                                                                                                                         more efficient decisions as we streamline
                                                                                                                                                         business processes.
                                       amenities and an award-winning golf course designed
Smooth Strides                         by Greg Norman, this 103-ha development in Tanah
into suzhou                            Lot overlooks Bali’s magnificent coast and the island’s
                                       spectacular volcanic mountains.                                             June
The opening of Pan Pacific Suzhou
                                       On 1 April, the rebranded Pan Pacific Nirwana Bali Resort       setting our
marked our second hotel in China.
                                       was launched amidst champagne celebrations and colourful
Fusing traditional landscapes and
ancient aesthetics with modern
                                       ceremonies. As part of our Vision to create memorable           sights on ningbo
                                       hotel experiences, the resort is undergoing enhancements
comforts and luxury, this 481-room
                                       to improve its integrated and holistic appeal.                  The signing of a hotel management agreement       brand-defining additions, coupled with their
hotel welcomed its first guests with
                                                                                                       for the 430-room Pan Pacific Ningbo and the       location in Ningbo’s up and coming industrial and
premier facilities and unrivalled
                                                                                                       200-room Pan Pacific Serviced Suites Ningbo       economic zone, are important stepping-stones
personalised service.
                                                                                                       was a highlight for our expansion in China. The   towards our growth in Greater Shanghai.

                                                                                                       a partnership
                                                                                                       above par
                                                                                                       The Group teamed up
                                                                                                       w i t h A s i a n To u r a s
                                                                                                       official hotel partner for
                                                                                                       its highly anticipated
                                                                                                       golf tournaments in the
                                                                                                       region. Collaboration with
                                                                                                       Asia’s official sanctioning
                                                                                                       body for professional
                                                                                                       g o l f u n d e r s co re s o u r
                                                                                                       mission to reach out to
                                                                                                       new customer segments
                                                                                                       across Asia.

                                       Building Our Brand                                              Membership has
                                       in Bangkok                                                      its Privileges
                                                                       Setting industry standards                                                             “Pan Pacific” and “PARKROYAL” launched
                                                                       in Thailand with round-the-                                                            a new guest loyalty programme, GHA
                                                                       clock personal assistance                                                              Discovery, founded on the Global Hotel
                                                                       is the newly opened Pan                                                                Alliance platform, the world’s largest
Cementing Connections                                                  Pacific Serviced Suites                                                                alliance of 12 independent upscale and
                                                                       Bangkok. The 148-suite                                                                 luxury hotel brands. Rewarding members
in china                                                               luxury accommodation                                                                   with ‘Amazing Local Experiences’ unique
                                                                       offers easy access to the                                                              to wherever they travel, the programme
To reinforce our China presence                                        city’s business district and                                                           extends more benefits for loyal guests
and deliver on our global expansion                                    trendiest nightspots while                                                             and customers of “Pan Pacific” and
strategy, our seventh Global Sales                                     providing all the comforts                                                             “PARKROYAL”, thus enhancing their
Office was established in Shanghai.                                    of home.                                                                               appeal to customers.

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                    ANNUAL REPORT 2010
a brand
6                                                                                  new era                                                                                                                    7

          July                                      September                                                      November                                     January 2011
upping our ante                            New Perspectives on                                           G’day,                                    Awakening in
down under                                 People Management                                             Australia!                                Western Australia
                                           Sharing global best practices with HR professionals, our                                                The opening of the 486-
                                           Senior Vice President for Human Capital & Development,                                                  room Pan Pacific Perth
                                           Mrs Melody King, spoke on “Harnessing Human Capital                                                     signaled the brand’s debut
                                           for Successful Regionalisation in Asia” at the Singapore                                                in Australia. Impressing
                                           Human Capital Summit.                                                                                   the market with signature
                                                                                                                                                   hospitality and elegant
                                                                                                                                                   accommodations, the hotel
                                                                                                                                                   a l s o f e a t u re s s p a c i o u s
                                                    October                                                                                        function rooms, indulgent
                                                                                                                                                   dining options and great
                                                                                                                                                   views of the Swan River.
                                           Sharing Strategic              Unleashing our Brand

The Group announced its entry into         Insights                       Potential                      “PARKROYAL” marked its homecoming
Australia with three hotels: PARKROYAL                                                                   to Australia with the 345-room
Darling Harbour, Sydney, PARKROYAL
                                           Demonstrating the Group’s
                                           thought leadership among
                                                                          Global branding agency, The
                                                                          Brand Union was appointed
                                                                                                         PARKROYAL Darling Harbour, Sydney
                                                                                                         and the 196-room PARKROYAL
Parramatta and Pan Pacific Perth. To
                                           industry peers, Mr Patrick     to refresh the “Pan Pacific”   Parramatta. After a 10-year absence       The refreshed “Pan Pacific” and “PARKROYAL” brand
nurture our presence in Australia and
                                           Imbardelli was a panellist     and “PARKROYAL” brands.        from where the “PARKROYAL” brand          websites were launched. With easy navigation and one-
New Zealand and launch our journey
                                           speaker on “Future Trends/     The exercise was aimed at      was conceived, the newly rebranded        stop reservation just a click away, the new look reflects our
into an exciting growth market, an
                                           Bold Predictions” at the       strengthening our brands’      properties put us back on the map         rejuvenated brands captured through their new visual and
Oceania Area Team was appointed to
                                           Hotel Investment Conference    identities and offerings so    with prime locations in downtown          verbal identities.
synergise efforts across our Operations,
                                           held in Hong Kong.             that they resonate more        Sydney and Parramatta.
Human Capital & Development and
                                                                          strongly with the modern
Marketing & Sales functions.

Top Hoteliers                              Stylish Residences in                                                   December
Converge                                   Kuala Lumpur                                                  Touchdown in                              “PARKROYAL” Ventures
Mr Patrick Imbardelli (third from
left), our President and CEO, shared
                                           The opening of the 287-room PARKROYAL Serviced
                                           Suites Kuala Lumpur marked the first “PARKROYAL”              Melbourne                                 INTO China
insights on “Global Issues, Local          extended-stay product outside Singapore. Exuding
                                                                                                         The Group invested further in
Impacts” together with industry            stylish comfort replete with modern amenities, the
                                                                                                         Australia with an agreement to
experts at the 2010 Australia, New         property offers full access to business and leisure
                                                                                                         acquire the Hilton Melbourne Airport
Zealand & Pacific Hotel Industry           facilities in the heart of Kuala Lumpur.
                                                                                                         Hotel. The 276-room landmark
Conference held in Sydney. Mr Eric                                                                       property is sited at Australia’s second
Levy, Senior Vice President for Growth                                                                   busiest aviation hub.
& Development, was a panel member
at the discussion on “Hot New Brands,
Hotels & Players Take Centre Stage”.

                                                                                                                                                   The Group entered into two hotel management agreements
                                                                                                                                                   that will launch the “PARKROYAL” brand in China. The 325-
                                                                                                                                                   room PARKROYAL Serviced Suites, Green City, Shanghai
                                                                                                                                                   will open its doors in 2012, followed by the 200-room
                                                                                                                                                   PARKROYAL Suzhou Taihu Resort, Suzhou in 2014.

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                            ANNUAL REPORT 2010
a brand
8                                                                                   new era                                                                                                                  9

                                                                                                          During the year, the Group also secured the         Redevelopment at The Plaza,
                                                                                                          management rights to two new developments           Beach Road, Singapore
                                                                                                          in China, namely the Pan Pacific Ningbo             Works for the redevelopment of the existing

message                                                                                                   (comprising 430 hotel guestrooms and 200
                                                                                                          serviced suites) and the PARKROYAL Serviced
                                                                                                          Suites Green City, Shanghai (325 serviced
                                                                                                                                                              Furniture Mall located at The Plaza into a 184-
                                                                                                                                                              unit serviced suites, with a column-free ballroom
                                                                                                                                                              and meeting rooms, commenced in September
Dr wee cho yaw                                                                                            suites). The two properties are expected to open    2010. Piling works are in progress and the
                                                                                                          in the first quarter of 2012.                       project is scheduled to be completed in the
Chairman, Pan Pacific Hotels Group
                                                                                                                                                              fourth quarter of 2012.
                                                                                                          In January 2011, the Group rebranded the 486-
                                                                                                          room Pan Pacific Perth when the management          Acquisition of Hotel in Melbourne, Australia
                                                                                                          contract with a third party operator expired.       The Group entered into a conditional agreement
The Group’s hotel management                                                                              The Group also secured the management rights        for the acquisition of the Hilton Melbourne
division continued its expansion                                                                          to a resort development in Suzhou, China. The       Airport Hotel for an aggregate cash consideration
                                                                                                          200-room PARKROYAL Taihu Resort, Suzhou is          of A$108.9 million (or approximately S$141.6
during the year with the addition                                                                         scheduled to open in 2014.                          million). The Hilton Melbourne Airport Hotel
                                                                                                                                                              comprises a 276-room hotel with three food and
of six new properties to its brands.                                                                      Corporate Developments                              beverage outlets and extensive convention and
                                                                                                          Incorporation of New Subsidiary in China            meeting facilities. The acquisition is scheduled
                                                                                                          To enhance the management and operations            to be completed on 31 March 2011 and the hotel
                                                                                                          of hotels and serviced suites in China, the         will be rebranded as PARKROYAL Melbourne
2010 Performance And Dividend                                                                             Group incorporated a new wholly owned               Airport.
2010 saw a strong rebound from the global           serviced suites in Singapore benefited from the       subsidiary named Pan Pacific (Shanghai) Hotel
economic slowdown in 2009. In line with the         increase in visitor arrivals and achieved higher      Management Co., Ltd. in Shanghai to support         Outlook for 2011
improvements in the global economy, Singapore       revenue and profit.                                   the development of our two brands.                  The economies of Singapore and the region
achieved a strong GDP growth of 14.5% in 2010.                                                                                                                should continue to grow in 2011, albeit at a more
International travel and tourism which is driven    Overseas Operations                                   Acquisition of Shares in Subsidiaries               moderate pace. The Asia Pacific is expected to
by the global economy gained momentum in            Outside Singapore, the Group’s hotels in Australia    In May 2010, the Company acquired the remaining     be the most dynamic region for tourism with
2010 with the Asia Pacific region leading the       and Myanmar benefited from improvements in            5% interest in Success City Pty Limited (“SCPL”)    strong growth in intra-regional travel. Against
recovery.                                           occupancy and average room rates while the            further to the exercise of the put options by the   this background of robust outlook, the Group
                                                    Vietnam hotels, despite enjoying improved             two minority shareholders. Total consideration      expects to see improved occupancy and/or
For the year under review, Group’s pre-tax profit   occupancy still lagged in average room rates          of A$2.0 million (S$2.5 million) was paid for the   room rates for its hotels.
before impairment charge and fair value losses      when compared to 2009. In Malaysia, while             2,151,042 ordinary shares.
increased by 19% to $60.2 million from the $50.8    the Kuala Lumpur hotel showed improvements                                                                Acknowledgement
million achieved in 2009. In 2010, the Group also   in occupancy and average room rates, the              The Company also acquired from the same             Dr Lim Kee Ming who has served as a director
recognised a fair value gain of $10.0 million on    average occupancy rate of the hotel in Penang         parties the remaining 40% interest in Success       since 1995, has indicated that he would not be
its investment properties (2009: fair value loss    was affected by the re-opening of a competitor        Venture Investments (Australia) Ltd (“SVIA”)        standing for re-appointment at the forthcoming
of $1.6 million). As a result, the Group’s profit   hotel previously under renovation. Our hotel          in November 2010 for a total consideration of       Annual General Meeting. On behalf of the Board,
before tax increased by $21.2 million or 43% to     in Suzhou, China continues to be affected by          A$34.0 million (approximately S$43.5 million).      I would like to thank Dr Lim for his invaluable
$70.4 million (2009: $49.2 million). The Group’s    increased competition.                                SVIA is an investment company with its principal    contributions in the past 16 years.
net profit attributable to shareholders increased                                                         assets being two hotels in Sydney, Australia,
by 36% to $53.6 million from $39.3 million          Hotel Management Division                             namely PARKROYAL Darling Harbour and                On behalf of the Board, I wish to express my
achieved in 2009.                                   The Group’s hotel management division                 PARKROYAL Parramatta.                               appreciation and thanks to the management and
                                                    continued its expansion during the year with the                                                          staff for their hard work and to our shareholders
Your Board is recommending a first and final        addition of six new properties to its brands. Three   Following the acquisitions, SCPL and SVIA           and business associates for their continuing
dividend of 4 cents per share (2009: first and      of the Group owned hotels were rebranded to           became wholly owned subsidiaries.                   support. My appreciation goes to my colleagues
final dividend of 3.5 cents) amounting to $24       “Pan Pacific” or “PARKROYAL” during the course                                                            on the Board for their counsel and guidance
million (2009: $21 million) for the year ended 31   of 2010 when the management contracts with            Hotel / Serviced Suites Development                 during the past year.
December 2010.                                      third party operators expired. The Pan Pacific        Hotel & Commercial Development at
                                                    Suzhou was rebranded in January 2010 while            Upper Pickering Street, Singapore
Operations                                          PARKROYAL Darling Harbour and PARKROYAL               Construction works are in progress for the
Singapore Operations                                Parramatta were rebranded in November 2010.           development of the 363-room hotel and
Benefiting from the opening of the two              The Group saw the opening of two new serviced         approximately 7,300 square metres of office         DR WEE CHO YAW
integrated resorts and the pickup in business       suites, namely the 148-unit Pan Pacific Serviced      space. The project is expected to be completed      Chairman
travel, visitor arrivals to Singapore increased     Suites Bangkok in March 2010 and the 287-unit         in mid-2012.                                        February 2011
by 20% to reach a record high of 11.6 million in    PARKROYAL Serviced Suites Kuala Lumpur in
2010. Average occupancy for the hotel industry      October 2010. The Group also expanded its
increased by 9.8 percentage points to 86% while     profile in Indonesia with the rebranding of the
average room rate increased by 12% to $212          278-room Pan Pacific Nirwana Bali Resort in
in 2010 (2009: $190). The Group’s hotels and        April 2010.

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                         ANNUAL REPORT 2010
a brand
10                                 new era                                      11

                                             leadership     in this section
                                                           Board of Directors
                                                   Key Management Executives
                                                             Group Structure

PAN PACIFIC HOTELS GROUP LIMITED                               ANNUAL REPORT 2010
a brand
12                                                                               new era                                                                                                                   13

                              1                                2                                   3                                  4                                   5

board of directors
1.	DR WEE CHO YAW                                      Businessman of the Year in 1990 and                as Director at PPHG’s Annual General                    General Meeting on 21 April 2010. Dr Lim,
     Chairman                                          2001. In 2009, he was conferred a Lifetime         Meeting on 21 April 2010. Mr Choe, who is               who is an independent and non-executive
     Dr Wee is the Chairman of the Company             Achievement Award by The Asian Banker.             an independent and non-executive Director,              Director, is also the Chairman of the Audit
     (“PPHG”) and its holding company, UOL                                                                is also the Chairman of the Nominating                  and Remuneration Committees and a
     Group Limited (“UOL”). He was appointed        2.	MR GWEE LIAN KHENG                                 Committee and a Member of the Executive,                Member of the Nominating Committee. He
     to the Board since 25 May 1973 and was last       Group Chief Executive                              Audit and Remuneration Committees. He is                is also a Director of UOL.
     re-appointed as Director at PPHG’s Annual         Mr Gwee is the Group Chief Executive of            also a Director of UOL.
     General Meeting on 21 April 2010.                 PPHG and UOL and has been with the                                                                         Dr Lim is the Chairman of Lim Teck Lee
                                                       UOL Group since 1973. He was appointed             A n a rc h i t e c t a n d t ow n p l a n n e r by      Group of companies. He is also a Director
     Dr Wee, who is a non-executive and non-           to the Board since 20 January 1987 and             profession, Mr Choe was the first General               of Haw Par Corporation Limited and is
     independent Director of PPHG, is also the         was last re-elected as Director at PPHG’s          Manager of the Urban Redevelopment                      presently the President of Ngee Ann Kongsi
     Chairman of the Executive Committee               Annual General Meeting on 28 April 2009.           Authority and a Senior Partner of one                   and Chairman of Ngee Ann Development.
     and a Member of the Nominating and                Mr Gwee, who is an executive and non-              of the largest architectural practices in               He is an Honorary President of Singapore
     Remuneration Committees.                          independent Director, is also a Member of          Singapore. He was the Chairman of Sentosa               Chinese Chamber of Commerce & Industry,
                                                       the Executive Committee.                           Development Corporation, Sentosa Cove                   Teochew Poit Ip Huay Kuan and Advisor of
     Dr Wee received Chinese high school                                                                  Pte Ltd, Pasir Ris Resort Pte Ltd, a Trustee            Network China.
     education and he is a career banker with          Mr Gwee is a Director of various subsidiaries      of NTUC Income and Member of Singapore
     more than 50 years of experience. He is the       in the PPHG Group and UOL Group. He                Tourism Board.                                          He was awarded the Pingat Bakti
     Chairman of United Overseas Bank Limited,         is also a Director of United Industrial                                                                    Masyarakat (PBM) Public Service Medal and
     Far Eastern Bank Limited, United Overseas         Corporation Limited and Singapore Land             Mr Choe holds a Bachelor of Architecture                the Bintang Bakti Masyarakat (BBM) Public
     Insurance Limited, United International           Limited and was previously a Director of           degree, a Diploma in Town & Regional                    Service Star in 1995 and 2004 respectively
     Securities Ltd, Haw Par Corporation Limited,      Overseas Union Enterprise Limited.                 Planning from University of Melbourne                   by the President of Singapore and also
     United Industrial Corporation Limited,                                                               and a Fellowship Diploma from the Royal                 The Royal Order of the Polar Star “Class of
     Singapore Land Limited and Marina Centre          He holds a Bachelor of Accountancy                 Melbourne Institute of Technology. He is a              Commander” by his Excellency, the King of
     Holdings Private Limited. He is also the          (Honours) degree from the University               Fellow Member of the Singapore Institute of             Sweden in 1982.
     Chairman of Wee Foundation.                       of Singapore and is a Fellow Member of             Architects, Singapore Institute of Planners
                                                       the Chartered Institute of Management              and Royal Australian Institute of Architects.           Dr Lim holds a Master of Science
     Dr Wee is the Honorary President of the           Accountants and Association of Chartered           He is also a Member of the Royal Institute              (International Trade & Finance) degree
     Singapore Federation of Chinese Clan              Certified Accountants in the United                of British Architects, Royal Town Planning              from Columbia University, New York,
     Associations, Singapore Hokkien Huay              Kingdom and the Institute of Certified             Institute, Royal Australian Planning Institute          and a Bachelor of Science (Business
     Kuan and Singapore Chinese Chamber of             Public Accountants of Singapore.                   and American Planning Association.                      Administration) degree from New York
     Commerce & Industry and a Pro-Chancellor                                                                                                                     University, USA.
     of Nanyang Technological University.              Mr Gwee was awarded the Pingat Bakti               He was awarded the Public Administration
                                                       Masyarakat (PBM) Public Service Medal and          Medal (Gold) in 1967, the Meritorious Service           In 2009, Dr Lim was conferred the degree
     In 2008, he was conferred an honorary             the Bintang Bakti Masyarakat (BBM) Public          Medal in 1990, and the Distinguished                    of Doctor of the University of Adelaide
     Doctor of Letters by the National University      Service Star in 1994 and 2002 respectively         Service Order in 2001.                                  honoris causa, for his distinguished service
     of Singapore for his accomplishments              by the President of Singapore.                                                                             to the community.
     in banking, education and community                                                               4.	DR LIM KEE MING
     leadership. He was a recipient of the Credit   3.	MR ALAN CHOE FOOK CHEONG                           Dr Lim Kee Ming was appointed to the                 5.	MR WEE EE CHAO
     Suisse Ernst & Young Lifetime Achievement         Mr Alan Choe was appointed to the Board            Board since 1 June 1995 and was last                    Mr Wee was appointed to the Board since
     Award in 2006 and named Singapore                 since 2 May 1990 and was last re-appointed         re–appointed as Director at PPHG’s Annual               9 May 2006 and was last re-elected as

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                        ANNUAL REPORT 2010
a brand
14                                                                                new era                                                                                                            15

                               6                                7                                                                  8                               9                                  10

     Director at PPHG’s Annual General Meeting           Inland Revenue and Chief Executive Officer        Ernst & Young, Singapore and is currently        non–independent Director, is also a director
     on 21 April 2010. Mr Wee, who is a non-             of Inland Revenue Authority of Singapore.         the President and Chairman of the Board          of various subsidiaries in PPHG.
     executive and non-independent Director, is                                                            of Directors of CPA Australia Limited.
     a Member of the Executive Committee and             Mr Koh is also the Chairman of CapitaMall                                                          She oversees the asset management
     also a Director of UOL.                             Trust Management Limited, Singapore               Mr Low is a Fellow Member of CPA Australia,      of PPHG’s hotel properties and is also
                                                         Deposit Insurance Corporation Limited             Institute of Chartered Accountants in            responsible for the management of the
     Mr Wee has led the management of UOB-               and Singapore Island Country Club. He             England & Wales, Institute of Certified          chain of St Gregory Spa and Si Chuan Dou
     Kay Hian Holdings Limited for more than             is also a Director of CapitaLand Limited,         Public Accountants of Singapore and an           Hua Restaurants.
     25 years. He is currently the Chairman              Singapore Airlines Limited, Singapore             Associate Member of Chartered Institute
     and Managing Director of UOB-Kay Hian               Cooperation Enterprise and CapitaLand             of Taxation (UK).                                Ms Wee holds a Bachelor of Arts degree
     Holdings Limited and a Director of most of          Hope Foundation. He is also a Member                                                               from Nanyang University, Singapore.
     the UOB-Kay Hian Group of companies. Mr             of the Presidential Council for Religious      8.	MR WEE EE LIM
     Wee also manages Kheng Leong Company                Harmony and an Adjunct Professor of the           Mr Wee was appointed to the Board since       10.	MR AMEDEo PATRICK IMBARDELLI
     (Private) Limited which is involved in real         Lee Kuan Yew School of Public Policy.             9 May 2006. He was last re-elected as            Mr Imbardelli is the President and Chief
     estate development and investments and                                                                Director at PPHG’s Annual General Meeting        Executive Officer and was appointed
     is a non-executive director of Haw Par              Mr Koh holds a Bachelor of Arts (Honours)         on 21 April 2010. Mr Wee, who is a non-          to the Board since 21 August 2009. He
     Corporation Limited. He had previously              degree in Philosophy, Political Science           executive and non-independent Director,          was last re-elected as Director at PPHG’s
     served as Chairman of the Singapore                 and Economics, Master of Arts degree              is also a Director of UOL.                       Annual General Meeting on 21 April 2010.
     Tourism Board between 2002 to 2004.                 from University of Oxford, UK and holds                                                            Mr Imbardelli, who is an executive and non-
                                                         a Master in Public Administration degree          He joined Haw Par Corporation Limited            independent Director, is also a director of
     Mr Wee holds a Bachelor of Business                 from Harvard University, USA.                     (“Haw Par”) in 1986 and is currently the         various subsidiaries in PPHG.
     Administration degree from The American                                                               President and Chief Executive Officer of
     University Washington DC, USA.                      He was awarded the Public Administration          Haw Par. He is also a Director of United         Prior to joining PPHG, Mr Imbardelli
                                                         Medal (Gold) in 1983 and the Meritorious          Industrial Corporation Limited, Singapore        held senior management positions at
6.	MR JAMES KOH CHER SIANG                               Service Medal in 2002.                            Land Limited, Hua Han Bio-Pharmaceutical         InterContinental Hotels Group, Southern
     Mr James Koh was appointed to the Board                                                               Holdings Limited (a company listed on            Pacific Hotel Corporation and Hilton
     since 23 November 2005 and was last              7.	MR LOW WENG KEONG                                 the Hong Kong Stock Exchange) and                International. He has over 25 years of
     re-elected as Director at PPHG’s Annual             Mr Low was appointed to the Board since           Wee Foundation. He was previously a              experience in the hotel industry including
     General Meeting on 23 April 2008. Mr Koh,           23 November 2005. He was last re-elected          board member of Sentosa Development              managing global multibrand organisations.
     who is an independent and non-executive             as Director at PPHG’s Annual General              Corporation.                                     He leads the strategic management
     Director, is also a Director of UOL.                Meeting on 23 April 2008. Mr Low, who is                                                           and expansion of PPHG’s hotels and
                                                         an independent and non-executive Director,        Mr Wee holds a Bachelor of Arts (Economics)      businesses, including both “Pan Pacific”
     Mr Koh joined the Housing & Development             is a Member of the Audit Committee and            degree from Clark University, USA.               and “PARKROYAL” brands across the Asia
     Board (“HDB”) in July 2005 after retiring           also a Director of UOL.                                                                            Pacific region.
     from 35 years of distinguished service in the                                                      9.	MS WEE WEI LING
     civil service. He is currently the Chairman of      Mr Low is also an independent Director            Ms Wee was appointed to the Board since          Mr Imbardelli holds a Master of Science
     the HDB. His prior appointments included            of listed companies Riverstone Holdings           24 March 1994 and has been with the PPHG         (Honours) degree in Finance from The City
     Permanent Secretary, Ministry of National           Limited and Unionmet (Singapore) Limited.         Group for over 20 years.                         University of New York, USA. He is a Fellow
     Development (1979), Ministry of Community           He is also a director of Singapore Institute                                                       of the American Academy of Financial
     Development (1987) and Ministry of                  of Accredited Tax Professionals Limited. He       She was last re-elected as Director at           Management, USA and a Member of the
     Education (1994) as well as Commissioner of         was a former Country Managing Partner of          PPHG’s Annual General Meeting on 28 April        Young Presidents’ Organisation and its
                                                                                                           2009. Ms Wee, who is an executive and            Singapore Executive Committee.

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                  ANNUAL REPORT 2010
a brand
16                                                     new era                                                                                                              17

     Key management
                                                                 1.	MR GWEE LIAN KHENG                                         7.	MR DEAN SCHREIBER
                                                                 2.	MS WEE WEI LING                                               Mr Schreiber was appointed PPHG’s Senior
                                                                 3.	MR AMEDEO PATRICK IMBARDELLI                                  Vice President, Operations in 2010. His

     executives                                                     The profiles of Mr Gwee, Ms Wee and
                                                                    Mr Imbardelli are in the Board of Directors
                                                                                                                                  responsibilities include the development
                                                                                                                                  of operational systems and management
                                                                                                                                  of service quality standards across all “Pan
                                                                    section of this report.                                       Pacific” and “PARKROYAL” properties.

                                                                 4.	MR FOO THIAM FONG WELLINGTON                                  Mr Schreiber’s 24-year career in hospitality
                                                                    Mr Foo joined UOL in 1977 after graduating                    management has spanned nine countries
                                                                    f ro m U n i ve r s i t y o f S i n g a p o re w i t h        and five continents. Prior to PPHG, he
                                       7                            a Bachelor of Accountancy (Honours)                           was Group Managing Director with KOP
     5                      6                                       degree. He is Company Secretary of both                       Group, where he was instrumental in the
                                               8                    UOL and PPHG, and a director of several of                    development and operation of premium
                                                                    their subsidiaries. He is also Chief Financial                hospitality brands including Franklyn Hotels
                                                                    Officer of UOL.                                               & Resorts and Montigo Resorts. He was also
                                                                                                                                  Group Operations Leader with Pan Pacific
                                                                    Mr Foo is a Fellow of the Institute of                        Hotels and Resorts from 2004 to 2007
                                                                    Certified Public Accountants of Singapore                     before joining luxury hospitality group,
                                                                    and CPA Australia, and an Associate of                        Essque, as Vice President Operations.
                                                                    both the Institute of Chartered Secretaries
                                                                    and Administrators and the Chartered                       8.	MR ERIC LEVY
                                                                    Institute of Management Accountants.                          Mr Levy joined PPHG in 2009 and is currently
                                                                                                                                  Senior Vice President, Growth & Development.
                                                                 5.	MR NEO SOON HUP                                               He leads the Group’s global development
                                                                    Mr Neo is Chief Financial Officer of PPHG                     efforts to expand its hotel portfolio.
                                                                    and a director of several of its subsidiaries.
                                                                    He oversees the financial management                          He has over 31 years of experience in hotel
                                                                    of PPHG and focuses on improving                              operations, development advisory and
                                                                    efficiency to drive business performances.                    private equity, having previously established
                                                                    Mr Neo was a Senior Audit Manager with                        his own hospitality investment and
                                                                    PricewaterhouseCoopers prior to joining                       advisory firms, Octagon Capital Partners
                                                                    UOL in 2003 and has 14 years of experience                    and Tourism Solutions International. His
                                                                    in auditing.                                                  previous appointments include senior roles
                                                                                                                                  at Horwath Asia Pacific and Colony Capital
                                                                    He is a Fellow of the Institute of Certified                  in Asia Pacific.
                                                                    Public Accountants of Singapore and
                                                                    a member of the Singapore Institute of                        Mr Levy holds a Bachelor of Science
                                                                    Chartered Secretaries and Administrators.                     degree in hotel administration from Cornell
                                                                                                                                  University in Ithaca, New York.
                                                                 6.	MR KEVIN CROLEY
                                                                    Mr Croley joined Pan Pacific Hotels and                    9.	MRS MELODY KING
                                                                    Resorts in 2005 and is currently Senior Vice                  Mrs King joined PPHG in 2009 and is
                                                                    President, Marketing & Sales of PPHG. He is                   currently Senior Vice President, Human
                                                                    responsible for the development of brand                      Capital & Development. She leads the
                                                                    strategies and platforms for distribution,                    Group’s efforts in building capability and
                                                                    e-commerce and revenue management. He                         developing talent.
                                                                    has over 29 years of experience in sales and
                                                                    marketing, of which 22 years were spent in                    A veteran with over 21 years of experience in
                                                                    the Asia Pacific region.                                      human resource management, she has held
                                                                                                                                  senior Human Resources leadership roles
                                                                    Af te r st a r t i n g h i s c a re e r w i t h F i r st      with multi-national companies including
                                                                    Hospitality Corporation of America, Mr                        Siebe Intelligent Automation, Asea Brown
                                                                    Croley worked with Hilton International,                      Broveri (ABB) and Herbalife International.
                                           3                        InterContinental Hotels Group and the
         1                         2               4                Royal Garden Resorts Hotel Group. He                          Mrs King graduated from Les Roches Hotel
                                                                    holds a Diploma in Hotel Management                           and Tourism School in Bluche-Montana,
                                                                    and Operations from Belfast College of                        Switzerland.
                                                                    Business Studies, UK.

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                         ANNUAL REPORT 2010
a brand
18                                                                               new era                                                                                                                           19


                                                                                                                   Suzhou Wugong
                                                 100%      Hotel Investments (Suzhou) Pte. Ltd.
                                                                                                                  Hotel Co., Ltd [PRC]

As at 2 March 2011
                                                 100%       Hotel Investments (Hanoi) Pte. Ltd.
                                                                                                                Westlake International
                                                                                                                    Company [VN]

                                                                                                      95%            Yangon Hotel
                                                 100%            YIPL Investment Pte. Ltd.
                                                                                                                      Limited [MN]

                                                                  Hotel Plaza Property
                                                                   (Singapore) Pte. Ltd.

                                                 100%          New Park Hotel (1989) Pte Ltd

                                                 100%      Parkroyal Hotels & Resorts Pte. Ltd.

                                                                                                                                             100%      Pan Pacific Hotels and               Pan Pacific Hotels and
                                                 100%    Parkroyal Serviced Residences Pte. Ltd.                                                     Resorts America, Inc. [USA]           Resorts Seattle, LLC [USA]

                                                                                                                Pan Pacific Hotels and       99%       PT Pan Pacific Hotels &         1%
                                                                                                                   Resorts Pte. Ltd.                   Resorts Indonesia [IN]
                                                 100%       Parkroyal International Pte. Ltd.
                                                                                                                Pan Pacific Marketing        100%     Pan Pacific Hotels and
                                                                                                                  Services Pte. Ltd.                 Resorts Japan Co., Ltd [JP]

                                                 100%    Pan Pacific Hospitality Holdings Pte. Ltd.              Pan Pacific Technical       100%    Pan Pacific (Shanghai) Hotel
                                                                                                                   Services Pte. Ltd.                 Management Co., Ltd. [PRC]

                                                                                                      100%           Pan Pacific                          PPHR (Thailand)
                                                 100%       Pan Pacific International Pte. Ltd.                  Hospitality Pte. Ltd.                  Company Limited [TH]

                                                 100%       United Lifestyle Holdings Pte Ltd


                                                 100%             St Gregory Spa Pte Ltd


                                                 100%          Dou Hua Restaurants Pte Ltd                                                   100%
                                                                                                                                                     Grand Elite Sdn. Bhd. [MY]
AU         Incorporated in Australia
BVI        Incorporated in The British 		                                                             66.7%
           Virgin Islands                                                                                          President Hotel                      Grand Elite (Penang)
                                                 100%    HPL Properties (Malaysia) Sdn. Bhd. [MY]
MY         Incorporated in Malaysia                                                                                Sdn Berhad [MY]           100%          Sdn. Bhd. [MY]
MN         Incorporated in Myanmar
IN         Incorporated in Indonesia
JP         Incorporated in Japan                 100%      Garden Plaza Company Limited [VN]
PRC        Incorporated in The People’s
           Republic of China
TH         Incorporated in Thailand
USA        Incorporated in United States                      Pilkon Development Company              65%           Plaza Hotel
           of America                                                 Limited [BVI]                              Company Limited [VN]
VN         Incorporated in Vietnam

                                                              Success Venture Investments             100%      Success Venture (WA)
PRINCIPAL ACTIVITIES                                               (WA) Limited [BVI]                              Unit Trust [AU]

      Investment holding and others
                                                                                                                 Success Venture Pty
      Hotelier                                   100%          Success City Pty Limited [AU]          100%           Limited [AU]
      Hotel management services
                                                                                                              Success Venture (Darling
      Spa, lifestyle and restaurant operations                                                        100%
                                                              Success Venture Investments                     Harbour) Unit Trust [AU]
      Associated companies                                        (Australia) Ltd [BVI]
                                                                                                      100%         Success Venture
                                                                                                              (Parramatta) Unit Trust [AU]

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                               ANNUAL REPORT 2010
a brand
20                                 new era                   21

in this section
Embracing A Brand New Era
Pan Pacific Hotels and Resorts
PARKROYAL Hotels & Resorts
Lifestyle Brands

a brand
22                                                                   new era                                                                                                             23

                                                                                     The drive to connect with our guests at a level
                                                                                     that is meaningful and relevant was the reason
                                                                                     for an 18-month initiative that resulted with        We also worked with experts
                                                      Embracing                      fresh interpretations of our “Pan Pacific” and
                                                                                     “PARKROYAL” brands.                                  at The Brand Union, another
                                                        A Brand                      Quite clearly, the rebranding of two acclaimed
                                                                                                                                          global branding agency,
                                                                                                                                          to articulate the refreshed
                                                        New Era
                                                                                     and well-established identities was not carried
                                                                                     out in isolation. We appointed established
                                                                                     international brand consultancy Interbrand,
                                                                                                                                          brands’ positioning with new
                                                                                     and through a series of focus groups involving       visual and verbal elements.
                                                                                     qualitative interviews with hundreds of guests
                                                                                     and customers, we were able to determine the
                                                                                     nuances and unique elements that defined “Pan
                                                                                     Pacific” and “PARKROYAL”. We also worked
                                                                                     with experts at The Brand Union, another global
                                                                                     branding agency, to articulate the refreshed
                                                                                     brands’ positioning with new visual and verbal

                                                                                     Associate engagement workshops are a
                                                                                     quintessential element of the programme, so
                                                                                     that the right values and brand behaviours may
                                                                                     be imparted to each and every associate from
                                                                                     back office to front desk, and greater consistency
                                                                                     is achieved through our service delivery.
                                                                                                                                          01:   New “Pan Pacific” visual identity as
                                                                                     Ultimately, great brands offer unique experiences          expressed in in-room compendium
                                                                                     that are valued and preferred over others. The             and key cards.
                                                                                     rebranding initiative we have embarked on will       02:   New “PARKROYAL” visual identity as
                                                                                     continue to evolve in tandem with industry                 expressed in hotel brochures, outdoor
                                                                                     benchmarks and global standards.                           advertising and key cards.

                                   The “Pan Pacific” and “PARKROYAL” identities
                                   have always been associated with distinctive
                                   accommodations and high service standards.
                                   Over time, as the industry and consumer
                                   preferences evolve and change, so too do brands
                                   to address these changes.

                                                                      01                                                                                                                  02

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                          ANNUAL REPORT 2010
a brand
24                                 new era                                                                                 25

     19hotels, resorts
       and serviced suites



industry honours and
top awards in 2010/2011


             years of global
                                             A Unique Pacific Ocean Blend
                                             The “Pan Pacific” portfolio features
                                             19 premium hotels, resorts and
                                             serviced suites across Asia, North
                                                                                    Pan Pacific Vancouver (‘Leading
                                                                                    Hotel in Canada’) and Pan Pacific
                                                                                    Serviced Suites Singapore
             recognition                     America and Oceania. For over          (‘Singapore’s Leading Serviced
                                             35 years, these properties have        Apartments’).
                                             delighted guests with sensory
                                             voyages, offering an invigorating      We also received the World Luxury
                                             blend of the best that the Pacific     Hotel Award for ‘Luxury Airport
                                             region has to offer.                   Hotel’ and APBF BrandLaureate
                                                                                    Award for ‘Best Airport Hotel Brand’
                                             Our Pacific Touch is the key to        with Pan Pacific Kuala Lumpur
                                             enriching experiences that enliven     International Airport, as well as
                                             the senses and reinvigorate the        coveted rankings on Travel+Leisure,
                                             soul. Each property delivers a         Condé Nast and other prestigious
                                             sense of modern vibrancy and the       magazines.
                                             warmth of Pacific Rim hospitality.
                                                                                    In 2010, the “Pan Pacific” footprint
                                             This year, our outstanding brand of    was augmented with more great
                                             hospitality was backed by various      hotels: Pan Pacific Suzhou, the
                                             accolades. Pan Pacific Hotels and      integrated Pan Pacific Nirwana Bali
                                             Resorts garnered World Travel          Resort, and in January 2011, Pan
                                             Awards in various categories with      Pacific Perth. In its ever-expanding
                                             Pan Pacific Singapore (‘Leading        pipeline are also Pan Pacific Ningbo
                                             Business Hotel in the World’),         and Pan Pacific Serviced Suites
                                             Pan Pacific Nirwana Bali Resort        Ningbo in China, which are set to
                                             (‘Indonesia’s Leading Golf Resort’),   open in 2012.

PAN PACIFIC HOTELS GROUP LIMITED                                                                      ANNUAL REPORT 2010
a brand
26                                                                      new era                                                                                                                        27

                                                                                  Visually engaging collateral          Locally sourced ingredients and            Offering enriching experiences and
                                                                                  highlight the play of light, warmth   innovative visual presentations are        relevant choices to guests define
                                                                                  and the expanse of the Pacific Rim.   at the heart of the Pacific palate.        our service philosophy.

                                                                                  Our                                   the pacific                                i am
                                                                                  Identity                              cuisine                                    pan pacific
                                                                                  As part of the “Pan Pacific”          G astronomically, the “Pan                 The “Pan Pacific” brand is
                                                                                  brand refreshment, refinements        Pacific” brand is evoked through           dedicated to a way of doing
                                                                                  to the logo and typography            c u li n a r y ex p er i e n ce s t h at   things that is different from its
                                                                                  were introduced to symbolise          appeal to the five senses. From            competitors. “I am Pan Pacific”

                                                                                  the sensory enhancements to           locally sourced ingredients to             is an attitude that empowers
                                                                                  the “Pan Pacific” experience.         innovative visual presentations,           all associates to act as brand
                                                                                  A soothing colour palette,            the Pacific Cuisine experience             ambassadors, infusing service

  Promise                                                                         together with refreshed
                                                                                  designs for marketing materials
                                                                                  and hotel amenities were
                                                                                                                        features menus that boast the
                                                                                                                        best food the Pacific Rim has
                                                                                                                        to offer.
                                                                                                                                                                   with a personal touch.

                                                                                                                                                                   Every associate is actively
                                                                                  also created to highlight the                                                    involved in the “Pan Pacific”
  The “Pan Pacific” brand provides refreshing                                     moods and physical sensations         I t a l s o o f f e r s a ra n g e o f     brand through a variety
  Pacific experiences inspired by an invigorating                                 associated with ‘discovery’.          unique settings and dining                 of touch points ranging
  blend of its Pacific Rim locations. It is focussed                                                                    environments to complement                 f ro m g u e st s ’ a r r i va l s a n d
                                                                                  Visually, the brand essence           each experience.                           departures, to the Pacific
  on enriching experiences that draw on a diversity                               is redefined through a                                                           C u i s i n e , g u e s t ro o m s a n d
  of landscapes and cultures; and relevant choices                                photography style in advertising      To further enhance the Pacific             spa experience. The brand
  that convey freedom and individuality.                                          and marketing collateral that         Cuisine experience, a list of              advocates going the extra
                                                                                  captures the sensual appeal           signature Pacific Cocktails was            mile to meet guests’ needs
  The brand is delivered through an unmistakable “Pacific Touch” –                of the Pacific, the human             also created, showcasing the               according to their time
  welcoming environments where easy efficiency is met by warm                     touch that conveys intuitive          choicest local ingredients –               zones.
  hospitality, and contemporary styles reflect their local surrounds.             yet unobtrusive service, and          from Californian pomegranates
                                                                                  emotive textures inspired by          to Thai calamansi – and
  In line with its expansion strategy to grow the Pan Pacific Hotels              each hotel’s location.                some of the latest mixology
  and Resorts portfolio in Asia, Greater China, North America and                                                       techniques.
  Oceania, “Pan Pacific” debuted in Australia with the launch of Pan
  Pacific Perth in 2011.

  The opening of Pan Pacific Ningbo and Pan Pacific Serviced Suites
  Ningbo, scheduled for 2012, will strengthen the brand’s presence
  in China.

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                ANNUAL REPORT 2010
a brand
28                                   new era                                                                                      29

close to

of trusted

               hotels, resorts
               and serviced suites

      destinations across
      Asia Pacific

home to Australia                              A Trusted Local Companion
                                               The “PARKROYAL” portfolio comprises      Suites Kuala Lumpur. It also marked
                                               15 hotels, resorts and serviced suites   its homecoming to Australia, a market
                                               in gateway cities across Australia,      where the brand was conceived, with
                                               China, Malaysia, Myanmar, Singapore      the launch of PARKROYAL Darling
                                               and Vietnam, including those under       Harbour, Sydney and PARKROYAL
                                               development.                             Parramatta.

                                               Exuding the spirit and individuality     The brand continues to chart its
                                               of their location, each “PARKROYAL”      journey in Australia with the upcoming
                                               provides a connection to authentic       PARKROYAL Melbourne Airport in
                                               local experiences. A trusted provider    April 2011. Strengthening its footprint
                                               of hospitality that is consistently      in Singapore, the brand’s flagship
                                               supportive, modern and uncomplicated,    hotel in the city’s Central Business
                                               “PARKROYAL” leverages a strong           District, PARKROYAL on Pickering,
                                               heritage that has flourished into        is scheduled to open in 2012.
                                               a reputable, upscale brand in the
                                               Asia-Pacific.                            In addition, “PARKROYAL” is set to
                                                                                        debut in China with PARKROYAL
                                               In 2010, the brand opened its first      Serviced Suites Green City, Shanghai
                                               extended-stay property outside           and PARKROYAL Taihu Resort,
                                               Singapore with PARKROYAL Serviced        Suzhou.

PAN PACIFIC HOTELS GROUP LIMITED                                                                           ANNUAL REPORT 2010
a brand
30                                                                   new era                                                                                                             31

                                                                               What to see, where to go, what to    Personable charm, friendly support   Authentic local encounters, through
                                                                               do – the best local tips presented   and uncomplicated service are        expert advice and knowledge,
                                                                               through vivid photography and a      exemplified by our PARKROYAL         connect guests to each destination.
                                                                               vibrant palette.                     People.

                                                                               Our                                  our                                  truly local
                                                                               Identity                             parkroyal                            Experiences
                                                                               The refreshed “PARKROYAL”            PARKROYAL People are unified         Every “PARKROYAL” property
                                                                               brand is captured visually           by “PARKROYAL’s” objective           is enlivened by the spirit and
                                                                               through key enhancements             of being a trusted local             individuality of its location.
                                                                               to its logo, the introduction        companion. Wherever they are,        Through locally inspired
                                                                               of a vivid colour palette and        our PARKROYAL People are             accents, cuisines and truly

  our                                                                          a series of stylised motifs that
                                                                               symbolise the vibrant cultures
                                                                                                                    important touch points for the
                                                                                                                    brand, channelling their skills,
                                                                                                                                                         authentic encounters, the brand
                                                                                                                                                         invites travellers to discover

                                                                               of its respective regions.           talents and local knowledge          a personal connection to the
                                                                                                                    to create a unique experience        local destination and culture.
                                                                               These are carried through in         that is consistently supportive,
                                                                               the brand’s print collaterals,       authentic and personable.            By involving every touch point
  The “PARKROYAL” brand is centred on the idea                                 website and guestroom                                                     available from the moment
  of being a trusted local companion for guests                                amenities. Visually, the allure      As brand ambassadors,                of arrival, the “PARKROYAL”
                                                                               and unobtrusive service at           PARKROYAL People bring a             brand is an experience greater
  and customers. It is focussed on providing                                   each “PARKROYAL” destination         caring human touch to every          than the sum of its parts, going
  travellers with the best local knowledge and                                 is conveyed in a photography         aspect of the brand experience.      above and beyond to inject
  connections in modern, comfortable and                                       style that reflects spontaneity,     They also lend personality           extraordinary encounters with
                                                                               movement and friendly faces.         and character to the rich            local life and culture that bring
  welcoming environments through which they                                                                         diversity of customs, cultures       a genuine and unforgettable
  can explore their surrounds.                                                                                      and languages that define            dimension to the wonder of
                                                                                                                    the authenticity of every local      travel.
  Energised by the sights, sounds and flavours of their respective                                                  experience.
  unique locales, each “PARKROYAL” hotel weaves a tapestry
  of personable charm fused with thoughtful creative touches,
  local tastes and authentic encounters that connect guests to
  the local environment.

  Above all, “PARKROYAL” values a standard of service that is
  consistent, genuine and uncomplicated. It caters to travellers’
  needs by providing accommodations that are hospitable,
  contemporary and comfortable.

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                    ANNUAL REPORT 2010
a brand
32                                                         new era                                                                                                            33

                                             brands                        05:   Si Chuan Dou Hua Restaurant
                                                                                 at TOP of UOB Plaza, with
                                                                                 breathtaking views of the city
                                                                           06:   The Thai Herbal Compress,
                                                                                 a signature treatment at St.
                                             Complementing our                   Gregory at Pan Pacific Singapore.
                                             hospitality services are
                                             three lifestyle brands that
                                             extend our philosophy
                                             of creating memorable
                                             experiences to the domains
                                             of fine dining and premium
                                             spas. Each brand offers
                                             complete indulgence for
                                             the senses – exemplifying                                                    05                                                  06
                                             our aspiration to provide
                                             unforgettable destinations    St. Gregory                                          Si Chuan Dou Hua
                                                                           Established in Singapore in 1997, “St. Gregory”      The “Si Chuan Dou Hua” dining brand was
                                             for dining and relaxation.    is a pioneer and leader in the spa and wellness      introduced with its flagship restaurant at
                                                                           industry, offering an integrated lifestyle           PARKROYAL on Beach Road in 1996. This
                                                                           management concept built on four unique              was followed by a second restaurant on the
                                                                           pillars: therapy, fitness, aesthetics and active-    60th floor of UOB Plaza 1 in 2002, a third at
                                                                           ageing.                                              PARKROYAL Kuala Lumpur in 2003 and a fourth
                                                                                                                                in Tokyo in 2007.
                                                                           “St. Gregory” continues to set benchmarks in
                                                                           a unique brand of spa expertise that combines        Over the years, “Si Chuan Dou Hua” has
                                                                           traditional therapies from China, India, Indonesia   impressed food connoisseurs with its delivery
                                                                           and Thailand with advanced technology and            of excellent culinary experiences, bringing the
                                                                           techniques from Europe and Asia.                     delectable tastes of authentic Sichuan and
                                                                                                                                Cantonese cuisine to the world.
                                                                           As a one-stop centre for health and wellness,
                                        01                            02   “St. Gregory” offers state-of-the-art equipment      Amidst its elegant and contemporary interiors,
01:   The ‘Mu Tong’ Milk Bath                                              and workout systems, complete with personal          master chefs gratify astute palates with an
      treatment performed in                                               training programmes and fitness classes.             extensive menu of delicacies that truly showcase
      traditional cedar wood hot                                           To enhance wellbeing, “St. Gregory” also             the diverse flavours of Chinese food. At the same
      tubs imported from the
      United States.
                                                                           partners with a team of aesthetic and wellness       time, diners are treated to premium Chinese teas
                                                                           professionals to provide specialised treatments      brewed by skillful Tea Masters who combine
02:   功夫茶 (Gong Fu Cha)
                                                                           and health management programmes.                    martial arts, dance and gymnastics in the
      – an exacting ritual of
      tea preparation by a Tea                                                                                                  traditional art of tea-pouring.
      Connoisseur.                                                         In 2010, St. Gregory at PARKROYAL Penang
03:   A skilled Tea Master in action.
                                                                           Resort was awarded the “Best Body Loving             Tian Fu Tea Room
                                                                           Treatment” for its Signature Traditional Spa         The first “Tian Fu Tea Room” was introduced in
04:   Chong Qing Diced Chicken
                                                                           Treatment in Harper’s Bazaar Spa Awards.             2005 at PARKROYAL on Beach Road, followed
      with Dried Chilli – a
      signature Sichuan dish.                                              “St. Gregory’s” Tui Na Massage was also named        by a second outlet at UOB Plaza 1 in 2008. It is
                                                                           “Best Muscle-Relief Massage” in The Singapore        the first fully dedicated tearoom in Singapore,
                                                                           Women’s Weekly Best of Beauty Salons, Spas           offering over 25 types of premium Chinese teas.
                                                                           and Services ranking.

                                                                           “St. Gregory” owns and/or manages seven spas
                                                                           in the Asia Pacific region including Singapore,
                                        03                            04   Malaysia and Japan.

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                           ANNUAL REPORT 2010
a brand
34                                 new era                  35

in this section
Operations Overview
-	Portfolio Summary
-	Southeast Asia
-	People’s Republic of China
-	Australia
-	North America
Our Awards 2010
Our Pipeline Projects
Human Capital and Development
Sustainability and
Corporate Social Responsibility

a brand
36                                                                                     new era                                                                                                                    37

                                                                                                                                                   9    11   13    12


                                                                  18                                                                                                                                     8

                                                                  17                                                                                                                                     7

                                                                  16                                                                                                                                     2
Growing from Strength to Strength
2010 presented Pan Pacific Hotels Group       Harbour, Sydney, PARKROYAL Parramatta
with opportunities to strengthen its          and in January 2011, Pan Pacific Perth.                                                                                                                   14

portfolio and intensify its expansion
efforts.                                      During the year, the Group made further
                                              headway with its brands refreshment
Continuing on its growth strategy, the        work to engage its customers. Its work
Group concluded two landmark hotel            with international brand agency The
management agreements: the first for          Brand Union resulted in rejuvenated                                                                                                                       15
an integrated resort in Bali, and the         brand strategies for “Pan Pacific” and                                                               10   4    3      6   5
second, for two properties in Ningbo,         “ PA R K R OYA L” , exe c u te d t h ro u g h
China. It also commenced its expansion        new visual and verbal identities in
in Oceania, beginning with three hotels       multiple channels and enhanced guest
in Australia.                                 experiences.

Cementing its international presence,         The Group currently manages and/
the Group made seven brand-defining           or owns over 30 hotels, resorts and                      1   singapore                          7     MANILA                  15    SYDNEY
additions to its “Pan Pacific ” and           serviced suites in 12 countries. Including
                                                                                                      The Plaza                               Pan Pacific Manila            PARKROYAL Darling Harbour, Sydney
“PARKROYAL” portfolios. These included:       pipeline developments, the “Pan Pacific”                PARKROYAL on Beach Road                                               PARKROYAL Parramatta
Pan Pacific Suzhou, Pan Pacific Serviced      portfolio comprises 19 hotels, resorts                  PARKROYAL on Kitchener Road
                                                                                                                                               8    ho chi minh city
Suites Bangkok, Pan Pacific Nirwana Bali      and serviced suites in Asia, Oceania and                PARKROYAL Serviced Suites Singapore                                   16    Seattle
                                                                                                      Pan Pacific Singapore                   PARKROYAL Saigon
Resort, PARKROYAL Serviced Suites             North America, while “PARKROYAL” is                     Pan Pacific Orchard                     Sofitel Saigon Plaza          Pan Pacific Seattle
Kuala Lumpur, PARKROYAL Darling               represented by 15 hotels, resorts and                   Pan Pacific Serviced Suites Singapore
                                              serviced suites in Asia Pacific.                                                                 9    HANOI                   17    Vancouver
                                                                                                       2   kuala lumpur
                                                                                                                                              Sofitel Plaza Hanoi           Pan Pacific Vancouver
                                                                                                      PARKROYAL Kuala Lumpur
                                                                                                      Pan Pacific Kuala Lumpur
                                             EXISTING                        CONFIRMED PIPELINE                                               10    YANGON                  18    Whistler
                                                                                                      	International Airport
                                   NO. OF HOTELS   NO. OF ROOMS         NO. OF HOTELS NO. OF ROOMS    PARKROYAL Serviced Suites               PARKROYAL Yangon              Pan Pacific Whistler Mountainside
                                                                                                        Kuala Lumpur                                                        Pan Pacific Whistler Village Centre
Pan Pacific                             16                5,111               3                964     3   penang
                                                                                                                                              11    DHAKA

PARKROYAL                               10                2,990               5               1,348   PARKROYAL Penang Resort
                                                                                                                                              Pan Pacific Sonargaon Dhaka

Others                                   2                 595                –                 –                                             12    SUZHOU
                                                                                                      4    BANGKOK
TOTAL                                   28*               8,696               8               2,312                                           Pan Pacific Suzhou
                                                                                                      Pan Pacific Serviced Suites Bangkok
                                                                                                                                                                            Investment Property Owned
                                                                                                                                                                            by The Group
BY ownership type                                                                                     5    Bali
                                                                                                                                              13    XIAMEN
                                                                                                                                                                            Properties Owned and Managed
Owned                                   13                4,265               3                823                                            Pan Pacific Xiamen
                                                                                                                                                                            by The Group
                                                                                                      Pan Pacific Nirwana Bali Resort
Managed                                 15                4,431               5               1,489                                                                         Properties Owned by The Group and
                                                                                                                                              14   PERTH                    Managed by Third Parties
TOTAL                                   28                8,696               8               2,312   6    Jakarta
                                                                                                                                              Pan Pacific Perth             Properties Owned by Third Parties and
                                                                                                      Sari Pan Pacific Jakarta                                              Managed by The Group
    As at 31/1/2011

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                        ANNUAL REPORT 2010
a brand
38                                                                                          new era                                                                                                             39

Investment Properties Owned by The Group
The Plaza                                                                                                   PARKROYAL Penang Resort                        Completed                  1990
Retained interests in a 32-storey tower block comprising restaurants, hotel function rooms, shops,          A 309-room 8-storey beachfront resort hotel at Purchased                  1999
                                                                                                                                                           Tenure of Land             Freehold
offices and serviced suites, two adjacent commercial buildings and a multi-storey carpark block at          Batu Ferringhi Beach, Penang, Malaysia
                                                                                                                                                                Approximate Gross
7500 Beach Road, Singapore                                                                                                                                      Floor Area (SqM)      31,502
                                                                                                                                                                Car Park Facilities   147
Shops & Offices                                         PARKROYAL Serviced Suites Singapore                 Present Capital Value
                                                        90 serviced suites and
                                                        1 owner-occupied apartment                          PARKROYAL Yangon                                    Completed             1997
                                                                                                            An 8-storey V-shaped tower comprising 267           Purchased             2001
Completed             1974 & 1979                       Completed             1979                                                                              Tenure of Land        30-Year Lease from 1997
                                                                                                            rooms at the corner of Alan Pya Phaya Road and
Tenure of Land        99-Year Lease from 1968           Tenure of Land        99-Year Lease from 1968                                                           Approximate Gross
Approximate Net                                         Approximate Net
                                                                                                            Yaw Min Gyi Road, Yangon, Union of Myanmar          Floor Area (SqM)      17,700
Lettable Area (SqM)   18,597                            Lettable Area (SqM)   6,125 & 165 respectively                                                          Car Park Facilities   140
Car Park Facilities   385 (portion of multi-storey
                      carpark under construction)                                                           Present Capital Value

S$101.7m                                                S$70.0m                                             PARKROYAL Saigon                                    Completed             1997
                                                        Present Capital Value                               Comprising 193 rooms in a 10-storey hotel           Tenure of Land        49-Year Lease from 1994
Present Capital Value
                                                                                                                                                                Approximate Gross
                                                                                                            building with a 9- storey extension wing, and a
                                                                                                                                                                Floor Area (SqM)      12,165
                                                                                                            4-storey annex office building at Nguyen Van
Hotels Owned and Managed by The Group                                                                       Troi Street, Ho Chi Minh City, Vietnam
                                                                                                                                                                Car Park Facilities   25

PARKROYAL on Beach Road                     Completed                         1971 & 1979
A 7-storey hotel building with 343 rooms at Tenure of Land                    99-Year Lease from 1968       S$36.3m
                                            Approximate Gross
7500C Beach Road, Singapore                                                                                 Present Capital Value
                                                        Floor Area (SqM)      19,900
                                                        Car Park Facilities   41
S$122.0m                                                                                                    Pan Pacific Suzhou                                  Completed             1998
Present Capital Value                                                                                       A hotel built in the Ming Dynasty style, with 481   Purchased             2001
                                                                                                                                                                Tenure of Land        50-Year Lease from 1994
                                                                                                            rooms accommodated within a low-rise cluster        Approximate Gross
PARKROYAL on Kitchener Road                             Completed             1976 & 1981                   at Xinshi Road, Suzhou, Jiangsu, The People’s       Floor Area (SqM)      63,232
Comprising a 5-storey podium with a basement            Purchased             1989                          Republic of China                                   Car Park Facilities   100
                                                        Tenure of Land        Freehold
and a 16-storey Y-shaped tower with 534 rooms,
                                                        Approximate Gross
at 181 Kitchener Road, Singapore                        Floor Area (SqM)      37,811                        S$84.5m
                                                        Car Park Facilities   273                           Present Capital Value
Present Capital Value
                                                                                                            PARKROYAL Darling Harbour, Sydney          Completed                      1991
                                                                                                            A 13-level hotel with 345 rooms at 150 Day Purchased                      1993
PARKROYAL Kuala Lumpur and President House                                                                                                             Tenure of Land                 Freehold
                                                                                                            Street, Sydney, Australia                  Approximate Gross
Comprising a 23-storey tower with a 6-storey podium and an annexed 8-storey car park building,
the 426-room hotel occupies the tower and part of the podium at Jalan Sultan Ismail, Kuala Lumpur,                                                              Floor Area (SqM)      24,126
                                                                                                            S$104.6m                                            Car Park Facilities   53
Malaysia                                                                                                    Present Capital Value
Hotel and President House                               Car Park Annex

Completed             1974                              Tenure of Land        Leasehold, expiring in 2080
Purchased             1999                              Approximate Gross
Tenure of Land        Freehold                          Floor Area (SqM)      11,128
Approximate Gross                                       Car Park Facilities   320
Floor Area (SqM)      56,707

Present Capital Value

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                 ANNUAL REPORT 2010
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