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Creating Memorable Hotel Experiences Pa n pa c i fi c h o t el s g r o up L i m i t ed a n n u a l r ep ort 2 0 0 9 PAN PACIFIC HOTELS GROUP LIMITED Company Registration No. 196800248D REGISTERED OFFICE 101 Thomson Road #33-00 United Square Singapore 307591 PRINCIPAL PLACE OF BUSINESS 238A Thomson Road #08-00 Novena Square Office Tower A, Singapore 307684 T (65) 6808 1180 | F (65) 6821 8001 pphg.com
Corporate Information BOARD OF DIRECTORS MANAGEMENT AUDITORS Dr Wee Cho Yaw Mr Gwee Lian Kheng PricewaterhouseCoopers LLP About Chairman Mr Gwee Lian Kheng Group Chief Executive Ms Wee Wei Ling 8 Cross Street, #17-00 PWC Building Singapore 048424 Pan Pacific Group Chief Executive Executive Director, Mr Alan Choe Fook Cheong Asset Management Partner-in-charge: Hotels Group Dr Lim Kee Ming Mr Sim Hwee Cher Mr Wee Ee Chao Mr Amedeo Patrick Imbardelli Year of appointment: 2008 Mr Low Weng Keong President & Chief Executive Officer PRINCIPAL BANKERS Ms Wee Wei Ling Mr James Koh Cher Siang United Overseas Bank Limited Mr Foo Thiam Fong Wellington Far Eastern Bank Limited Mr Wee Ee Lim Company Secretary Public Bank Berhad CREATING MEMORABLE HOTEL EXPERIENCES Mr Amedeo Patrick Imbardelli Malayan Banking Berhad Mr Neo Soon Hup Pan Pacific Hotels Group owns, manages and/or Australia and New Zealand EXECUTIVE COMMITTEE Chief Financial Officer markets over 30 hotels, resorts and serviced suites Banking Group Limited with more than 9,000 rooms in Asia, Oceania and Dr Wee Cho Yaw Chairman Mr Kevin Croley North America including those under development. REGISTERED OFFICE Senior Vice President, Mr Gwee Lian Kheng Marketing & Sales 101 Thomson Road Headquartered in Singapore, it is a listed hotel Mr Alan Choe Fook Cheong #33-00 United Square subsidiary of UOL Group Limited, an established Mr Wee Ee Chao Mr Scott Swank Singapore 307591 property company in Asia with a diversified portfolio Senior Vice President, T (65) 6255 0233 of investment and development properties. AUDIT COMMITTEE Hotel Operations F (65) 6252 9822 Dr Lim Kee Ming PRINCIPAL PLACE Known formerly as Hotel Plaza Limited, Pan Pacific Mr Eric Levy Chairman OF BUSINESS Hotels Group hails the successful integration Senior Vice President, of two distinguished brands, “Pan Pacific” and Mr Alan Choe Fook Cheong 238A Thomson Road Development and Growth “PARKROYAL”, into one core business. Mr Low Weng Keong #08-00 Novena Square Mrs Melody King Office Tower A As an international hotel management company, NOMINATING COMMITTEE Singapore 307684 Senior Vice President, Pan Pacific Hotels Group is focussed on creating Mr Alan Choe Fook Cheong Human Capital and Development T (65) 6808 1180 memorable hotel experiences, with a global Chairman F (65) 6821 8001 commitment to providing personalised, genuine care. Dr Wee Cho Yaw INTERNAL AUDIT W pphg.com Dr Lim Kee Ming Mr Yeo Bin Hong Combining agility and flexibility in its business SHARE REGISTRAR Senior Manager, Internal Audit approach, Pan Pacific Hotels Group responds to Boardroom Corporate & REMUNERATION COMMITTEE changing market trends by building brands that Advisory Services Pte. Ltd. Dr Lim Kee Ming COMPANY SECRETARY resonate with its guests, customers and associates. 50 Raffles Place, #32-01 It enhances shareholders’ value by driving greater Chairman Mr Foo Thiam Fong Wellington Singapore Land Tower innovation, customer focus and partner engagement. Dr Wee Cho Yaw DEPUTY COMPANY Singapore 048623 Mr Alan Choe Fook Cheong T (65) 6536 5355 SECRETARY/ LEGAL MANAGER F (65) 6536 1360 Mr Yeong Sien Seu This report is printed on recycled paper.
PAN PACIFIC HOTELS GROUP LIMITED 01 ANNUAL REPORT 2009 Contents 02 Our Vision, Purpose and Values 26 Operations Overview 03 Snapshot 37 Our Awards in 2009 04 Chairman’s Statement 38 Charting Our Future 06 Board of Directors 40 Great People 10 Key Management Executives 42 Human Capital and Development 12 Group Structure 44 Great Relationships 14 2009 in Summary 46 Five-Year Financial Summary 16 Great Brands 49 Financial Review 18 Pan Pacific Hotels and Resorts 51 Financial Calendar 20 PARKROYAL Hotels & Resorts 52 Group Value-Added Statement 22 Spa and Lifestyle Brands 53 Financial Contents 24 Great Hotels
02 PAN PACIFIC HOTELS GROUP LIMITED 03 ANNUAL REPORT 2009 Snapshot DELIVERING SHAREHOLDERS’ VALUE 2005 2009 CAGR Our Vision, REVENUE $276m $288m 1.07% $94.95 $106.62 2.94% Purpose and REVPAR EBITDA $81m $84m 0.91% Values PROFIT AFTER TAX AND MINORITY INTERESTS EARNINGS PER SHARE* $34m 8.38¢ $39m 6.78¢ 3.49% -5.16% * before exceptional gains, impairment charge and fair value adjustments KEY FINANCIAL TRENDS DELIVERING OUR BRAND PROMISE GROUP REVENUE RETURN ON EQUITY Great brands are inspired by vision, led by purpose $’M $’M Hotel Average and enlivened by values that deliver positive 350 315 Ownership 900 30% Shareholders’ experiences. 276 287 290 288 Property 800 Fund 300 Investments 25% Return on At Pan Pacific Hotels Group, the diverse talents Property 700 Equity 250 Development of our people and distinctive properties across 600 20% Hotel Management regions and cultures are united by a common Services 200 500 vision: Creating Memorable Hotel Experiences. Investments 15% 400 150 Our actions are guided by an unwavering purpose 300 10% to build Great Brands, Great Hotels, Great People 100 and Great Relationships. 200 100 5% 50 As a Group, our teamwork and achievements are 0 underscored by a culture of open communications; 0 2005 2006 2007 2008 2009 clear processes that still leave room for associates’ 2005 2006 2007 2008 2009 adaptability in changing conditions; the boldness NET CASH FLOW RETURNS ON ASSETS SOURCES OF FINANCE to strive for better performance; and the courage to resolve challenging decisions. $’M % Singapore Hotels Borrowings Average 1200 30 Minority As a responsible corporate citizen, our values are Australia Hotels 1,003 Interests also shaped by a larger purpose in respecting, 25 Average 1000 934 Shareholders’ 881 sharing and caring for the communities in which Vietnam Hotels Fund 20 Average we operate. We connect with our stakeholders 800 742 Myanmar Hotels 645 by recognising and valuing diversity in every 15 Average possible way. China Hotels 600 10 Average Malaysia Hotels 400 5 Average Pan Pacific Hotels 200 0 Group Average 0 -5 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
04 PAN PACIFIC HOTELS GROUP LIMITED 05 ANNUAL REPORT 2009 Kuala Lumpur was due to higher food and beverage serviced suites and new column-free meeting and revenue. Although the PARKROYAL Yangon improved ballrooms. In connection with this proposal, the its performance in 2009, the operating environment Company has purchased certain air space rights for remained difficult. $1,590,000. Provisional planning approval has been obtained and it is envisaged that the project will be Hotel Management Division completed in mid-2012. In line with the Group’s intent to grow its hotel management chain, the Group’s hotel management Proposed Hotel & Commercial Development at Upper Pickering Street Chairman’s division has rebranded two hotels in China owned by related companies. The Pan Pacific Xiamen was Following the termination by mutual consent of rebranded in August 2009 while the Pan Pacific the original contract for the construction of the Statement Suzhou was rebranded in January 2010. proposed development at Upper Pickering Street, a fresh tender was called and a new main contract In February 2010, the Group opened the 148-unit was awarded in December 2009 at a reduced pricing. Pan Pacific Serviced Suites Bangkok, an extended- Work on the 367-room hotel and approximately “As Asia is expected to lead the stay property to complement the existing Pan Pacific 7,320 square metres of office space is expected to business recovery this year, the Group Bangkok. The Group has also secured the contract be completed in mid-2012. to manage the Nirwana golf and spa resort in Bali will focus on extending our two brand as Pan Pacific Nirwana Bali Resort with effect from Outlook for 2010 names in this region.” April 2010. Current economic data suggests that the recession has ended in most countries and business and Corporate DevelopmentS consumer confidence is expected to improve in Name Change 2010. International travel is projected to grow At the extraordinary general meeting held on 28 moderately in the Asia Pacific region. In Singapore, 2009 Performance and Your Board is recommending a first April 2009, shareholders approved the change of the opening of the two integrated resorts and Dividend and final dividend of 3.5 cents per the Company’s name to Pan Pacific Hotels Group resultant increase in room supply is expected to share (2008: first and final dividend Limited. The “Pan Pacific” brand, which the Company moderate the increase in average room rate of the 2009 was a challenging year for the of 4 cents) amounting to $21 million had acquired from its holding company UOL Group Group’s hotels and intensify competition for hotel hotel industry as international travel (2008: $24 million) for the year ended Limited (“UOL”) in October 2008, has a rich heritage staff. While the Group’s hotels in the Asia Pacific was impacted by the global economic 31 December 2009. and is a well established name in the hospitality are expected to benefit from higher occupancy in slowdown and concerns of a H1N1 industry and in the Asia Pacific region. Together with line with the increase in visitor arrivals, average room pandemic. The Singapore economy Operations the “PARKROYAL” brand, the Group is able to rates are expected to recover at a slower pace. was not spared and contracted by 2.0% Singapore Operations offer our customers a wider choice of hotels and in 2009, while tourist arrivals dropped extended-stay brands. It will also allow the Group As Asia is expected to lead the business recovery by 4.3% to 9.7 million. As a result of lower tourist arrivals to expand its hotel management services with a this year, the Group will focus on extending our two into Singapore in 2009, the average broader range of investors. brand names in this region. For the year under review, the Group’s occupancy for the hotel industry pre-tax profit before impairment decreased by 4.6 percentage Acquisition of Subsidiary Acknowledgement charge and fair value losses decreased points to 76% and average room rate by 35% to $50.8 million (2008: $78.1 decreased by 22.3% to $191 in 2009 To streamline the operations of the PARKROYAL I wish to thank my fellow directors for their wise million). The Group recognised a (2008: $246). The Group’s hotels in Serviced Suites in Singapore, the Group acquired counsel and guidance during the past year. On 21 fair value loss of $1.6 million on its Singapore, PARKROYAL on Beach Road from UOL, the entire issued share capital of Parkroyal August 2009, Mr Amedeo Patrick Imbardelli joined investment properties, smaller than and PARKROYAL on Kitchener Road, Serviced Residences Pte. Ltd. (”PSR”) for a total the Board and we welcome him. My appreciation the loss of $9.8 million in 2008. For reported lower revenue and profit. consideration of $581,000. PSR is the managing also goes to the management and staff for their 2009, no impairment provision was agent for the Company’s 90 units of serviced suites hard work during this challenging year under review, required for a hotel development Overseas Operations located at The Plaza, Beach Road. and to our shareholders and business associates for project (2008: impairment provision of their continuing support. With the exception of our operations $37.0 million). As a result, the Group’s in Malaysia and Myanmar, all the Hotel / Serviced SuiteS Development profit before tax increased by $17.9 Group’s hotels were affected by the Proposed Redevelopment at The Plaza, million or 57% to $49.2 million (2008: global economic crisis and registered Beach Road $31.3 million). The Group’s net profit declines in both occupancy and/or Arising from a strategic review to enhance the attributable to shareholders increased average room rates. The performance DR WEE CHO YAW value of the Group’s existing assets, the Company by 207% to $39.3 million from $12.8 of the PARKROYAL Penang was better Chairman obtained approval to re-develop the existing million achieved in 2008. due to higher room revenue while the Furniture Mall located at The Plaza into a 165-unit February 2010 better performance of PARKROYAL
06 PAN PACIFIC HOTELS GROUP LIMITED 07 ANNUAL REPORT 2009 1. DR WEE CHO YAW - Chairman Mr Gwee holds a Bachelor of Accountancy A career banker with 50 years of experience. (Honours) degree from the University of Singapore Received Chinese high school education. and is a Fellow Member of the Chartered Institute Dr Wee has been the Chairman of the Company of Management Accountants and Association of (“PPHG”) and its holding company, UOL Group Chartered Certified Accountants in the United Limited (“UOL”) since 1973. Kingdom, as well as a Fellow of the Institute of Certified Public Accountants of Singapore. He was appointed to the Board since 25 May 1973 and was last re-appointed as Director at PPHG’s Mr Gwee was named Asia Pacific Hotelier of the Annual General Meeting on 28 April 2009. Dr Wee, Year in 2003. Board of who is a non-executive and non-independent Director of PPHG, is also the Chairman of the 3. MR ALAN CHOE FOOK CHEONG Directors Executive Committee and Member of the Nominating and Remuneration Committees. An architect and town planner by profession, Mr Choe was appointed to the Board since 2 May 1990 and was last re-appointed as Director He is the Chairman of United Overseas Bank at PPHG’s Annual General Meeting on 28 April Limited, Far Eastern Bank Limited, United 2009. An independent and non-executive Overseas Insurance Limited, United International Director, he chairs the Nominating Committee Securities Ltd, Haw Par Corporation Limited, and is a Member of the Executive, Audit and United Industrial Corporation Limited, Singapore Remuneration Committees. He is also a Director Land Limited and Marina Centre Holdings Private of UOL. Limited. He is the Chairman of Wee Foundation. He was previously the Chairman of Overseas Mr Choe was the first General Manager of the Union Enterprise Limited. Urban Redevelopment Authority and a Senior Partner of one of the largest architectural practices Dr Wee is the President of the Singapore in Singapore. He was the Chairman of Sentosa Federation of Chinese Clan Associations and also Development Corporation, Sentosa Cove Pte Ltd, the Honorary President of Singapore Chinese Pasir Ris Resort Pte Ltd, a Trustee of NTUC Income Chamber of Commerce & Industry and a Pro– and Member of the Singapore Tourism Board. He Chancellor of Nanyang Technological University. was previously a Director of Keppel Land Limited and Frasers Centrepoint Limited. In 2008, he was conferred an honorary Doctor of Letters by the National University of Singapore Mr Choe holds a Bachelor of Architecture for his accomplishments in banking, education degree, a Diploma in Town & Regional Planning and community leadership. from University of Melbourne, and a Fellowship 1 2 3 Diploma from the Royal Melbourne Institute Dr Wee was a recipient of the Credit Suisse-Ernst of Technology. He is a Fellow Member of the & Young Lifetime Achievement Award in 2006 Singapore Institute of Architects, Singapore 4 5 6 and was named Businessman of the Year in 1990 Institute of Planners and Royal Australian and 2001. In 2009, he was conferred a Lifetime Institute of Architects. He is also a member of the Achievement Award by The Asian Banker. Royal Institute of British Architects, Royal Town 7 8 9 10 Planning Institute, Royal Australian Planning 2. MR GWEE LIAN KHENG - Group Chief Executive Institute and American Planning Association. Mr Gwee is the Group Chief Executive of PPHG and UOL and has been with the UOL Group since He was awarded the Public Administration Medal 1973. An executive and non-independent Director, (Gold) in 1967, the Meritorious Service Medal he was appointed to the Board since 20 January in 1990, and the Distinguished Service Order 1987 and was last re-elected as Director at PPHG’s in 2001. Annual General Meeting on 28 April 2009. He is also a member of the Executive Committee. Mr Gwee sits on the board of various subsidiaries in the PPHG Group and UOL Group. He is also a Director of United Industrial Corporation Limited and Singapore Land Limited and was previously a Director of Overseas Union Enterprise Limited.
08 PAN PACIFIC HOTELS GROUP LIMITED 09 ANNUAL REPORT 2009 4. DR LIM KEE MING a non-executive Director of Haw Par Corporation Mr Low is also an independent Director of listed 10. MR AMEDEO PATRICK IMBARDELLI Dr Lim Kee Ming was appointed to the Board Limited. He had previously served as Chairman companies Riverstone Holdings Limited and Mr Imbardelli joined PPHG in July 2008 as the since 1 June 1995 and was last re–appointed of the Singapore Tourism Board between 2002 Unionmet (Singapore) Limited. He was a former President and Chief Executive Officer and was as Director at PPHG’s Annual General Meeting to 2004. Country Managing Partner of Ernst & Young, appointed to the Board on 21 August 2009 on 28 April 2009. An independent and non– Singapore and is currently a Deputy President as an executive, non-independent Director. executive Director, Dr Lim also chairs the Audit M r We e h o l d s a B a c h e l o r o f B u s i n e s s and Deputy Chair, Board of Directors of CPA He is also a director of various subsidiaries and Remuneration Committees and is a Member Administration degree from The American Australia Limited. in PPHG. of the Nominating Committee. He is also a University, Washington DC, USA. Director of UOL. Mr Low is a Fellow Member of CPA Australia, Mr Imbardelli brings with him over 25 years 6. MR JAMES KOH CHER SIANG Institute of Chartered Accountants in England of experience in the hotel industry including Dr Lim is the Chairman of Lim Teck Lee Group Appointed to the Board since 23 November & Wales, Institute of Certified Public Accountants managing global multibrand organisations. He of companies. He is also a Director of Haw Par 2005, Mr Koh was last re-elected as Director at of Singapore and an Associate Member of leads the strategic management and expansion Corporation Limited. He is presently the President PPHG’s Annual General Meeting on 23 April Chartered Institute of Taxation (UK). of PPHG’s hotels and businesses, including of Ngee Ann Kongsi and Chairman of Ngee Ann 2008. An independent and non–executive both “Pan Pacific” and “PARKROYAL” brands Development Pte Ltd, as well as an Honorary Director, he is also a Director of UOL. 8. MR WEE EE LIM across the Asia Pacific region. Prior to joining President of Singapore Chinese Chamber of Appointed to the Board since 9 May 2006, PPHG, he held senior management positions at Commerce & Industry and Teochew Poit Ip Huay Mr Koh is the Chairman of the Housing & Mr Wee was last re-elected as Director at PPHG’s InterContinental Hotels Group, Southern Pacific Kuan and Advisor of Network China. Development Board (“HDB”), which he joined Annual General Meeting on 25 April 2007. A Hotel Corporation and Hilton International. in July 2005 after retiring from 35 years of non-executive and non-independent Director, Dr Lim holds a Master of Science (International distinguished service in the civil service. His prior he is also a Director of UOL. Mr Imbardelli holds a Master of Science (Honours) Trade & Finance) degree from Columbia appointments included Permanent Secretary, degree in Finance from The City University of University, New York, and a Bachelor of Science Ministry of National Development (1979), Ministry He joined Haw Par Corporation Limited (“Haw New York, USA, and is a Fellow of the American (Business Administration) degree from New York of Community Development (1987) and Ministry Par”) in 1986 and is currently the President and Academy of Financial Management, USA. He is also University, USA. of Education (1994) as well as Commissioner of Chief Executive Officer of Haw Par. He is also a member of the Young Presidents’ Organisation Inland Revenue and Chief Executive Officer of a Director of United Industrial Corporation and its Singapore Executive Committee. He was awarded the Pingat Bakti Masyarakat the Inland Revenue Authority of Singapore. Limited, Singapore Land Limited, Hua Han Bio- (“PBM”) and the Bintang Bakti Masyarakat Pharmaceutical Holdings Limited (a company (“BBM”) Public Service Star in 1995 and 2004 Mr Koh is the Chairman of CapitaMall Trust listed on the Hong Kong Stock Exchange) and respectively by the President of Singapore and Management Limited and Singapore Deposit Wee Foundation. He was previously a board also The Royal Order of the Polar Star “Class Insurance Corporation Limited and a Director member of Sentosa Development Corporation. of Commander” by His Excellency, the King of CapitaLand Limited, Singapore Airlines of Sweden in 1982. Limited, Singapore Cooperation Enterprise Mr Wee holds a Bachelor of Arts (Economics) and CapitaLand Hope Foundation. He is also a degree from Clark University, USA. In 2009, Dr Lim Kee Ming was conferred the member of the Presidential Council for Religious degree of Doctor of the University of Adelaide Harmony and an Adjunct Professor of the Lee 9. MS WEE WEI LING honoris causa, for his distinguished service to Kuan Yew School of Public Policy. Appointed to the Board since 24 March 1994, education and service to the community. Ms Wee was last re-elected as Director at PPHG’s Mr Koh holds a Bachelor of Arts (Honours) degree Annual General Meeting on 28 April 2009. An 5. MR WEE EE CHAO in Philosophy, Political Science and Economics, executive and non–independent Director of Appointed to the Board since 9 May 2006, Master of Arts degree from University of Oxford, PPHG, she also sits on the boards of some of the Mr Wee was last re-elected as Director at PPHG’s UK, and holds a Master in Public Administration Group’s subsidiaries. Annual General Meeting on 25 April 2007. A degree from Harvard University, USA. non-executive and non-independent Director, As Executive Director (Asset Management), he is also a member of the Executive Committee He was awarded the Public Administration Medal Ms Wee oversees the operations of the asset and a Director of UOL. (Gold) in 1983 and the Meritorious Service Medal management of PPHG’s hotel properties. She in 2002. is also responsible for the management of the Mr Wee has led the management of UOB-Kay chain of St Gregory Spa and Si Chuan Dou Hua Hian Holdings Limited for more than 25 years. 7. MR LOW WENG KEONG Restaurants. She has been with the PPHG Group He is currently the Chairman and Managing Appointed to the Board since 23 November 2005, for over 20 years. Director of UOB-Kay Hian Holdings Limited and Mr Low was last re-elected as Director at PPHG’s a Director of most of the UOB-Kay Hian Group of Annual General Meeting on 23 April 2008. An Ms Wee holds a Bachelor of Arts degree from companies. Mr Wee also manages Kheng Leong independent and non–executive Director, he is Nanyang University, Singapore. Company (Private) Limited which is involved in also a member of the Audit Committee and a real estate development and investments and is Director of UOL.
10 PAN PACIFIC HOTELS GROUP LIMITED 11 ANNUAL REPORT 2009 1. Mr Gwee Lian Kheng 7. Mr Scott Swank 2. Ms Wee Wei Ling Mr Swank joined Pan Pacific Hotels and Resorts 3. Mr Amedeo Patrick Imbardelli in 2007 and is currently the Senior Vice President, Information concerning Mr Gwee, Ms Wee and Operations of PPHG. He is responsible for driving Mr Imbardelli is found in the “Board of Directors” operational excellence for all properties under section of this report. the “Pan Pacific” and “PARKROYAL” brands. He has spent over 27 years in the hospitality 4. Mr FOO THIAM FONG wellington industry, serving with the Intercontinental Hotels Group, Shangri-La Hotels and Resorts Mr Foo joined the UOL Group in 1977 after and Mandarin Oriental Hotel Group, amongst Key Management graduating from University of Singapore with a Bachelor of Accountancy (Honours) degree. others. He served previously with Pan Pacific Singapore and Pan Pacific Sonargaon Dhaka for He is the Company Secretary of both the UOL Executives Group and PPHG and a director of several of their subsidiaries. He is also the Chief Financial Officer 11 years in Marketing, Operational and General Management positions. of UOL Group Limited. Mr Swank holds a Bachelor of Arts degree in history from George Washington University in Mr Foo is a Fellow of the Institute of Certified Washington D.C. Public Accountants of Singapore, a Fellow of CPA Australia as well as an Associate of the Institute of 8. Mr Eric Levy Chartered Secretaries and Administrators and the Chartered Institute of Management Accountants. Mr Levy joined PPHG in 2009 and is currently the Senior Vice President, Development and Growth. He leads the Group’s global development efforts 5. Mr Neo Soon Hup to expand its hotel portfolio. Mr Neo is the Chief Financial Officer of PPHG and a director of several of its subsidiaries. He He has over 30 years of experience in hotel oversees the financial management of PPHG and operations, development advisory and private focuses on improving efficiency to drive business equity, having previously established his own performances. Mr Neo was a Senior Audit hospitality investment and advisory firms, Manager with PricewaterhouseCoopers prior to Octagon Capital Partners and Tourism Solutions joining the UOL Group in 2003 and has 13 years International. His previous appointments include of experience in auditing. senior roles at Horwath Asia Pacific and Colony Capital in Asia Pacific. He is a Fellow of the Institute of Certified Public Accountants of Singapore and a member of the Mr Levy holds a Bachelor of Science degree in Singapore Institute of Chartered Secretaries and hotel administration from Cornell University in Administrators. Ithaca, New York. 6. Mr Kevin Croley 9. Mrs Melody King Mr Croley joined Pan Pacific Hotels and Resorts Mrs King joined the Group in 2009 and is in 2005 and is currently the Senior Vice President, currently the Senior Vice President, Human Marketing & Sales of PPHG. He is responsible Capital and Development. for developing brand strategies and platforms of distribution, e-commerce and revenue She leads efforts in building capability and management for PPHG. He has over 28 years of developing talent for PPHG. experience in sales and marketing, of which 21 years were spent in the Asia Pacific region. She has over 20 years of experience in human resource management and has held senior 1 2 3 After starting his career with First Hospitality Human Resources leadership roles with multi- Corporation of America, Mr Croley worked national companies including Siebe Intelligent with Hilton International, InterContinental Automation, Asea Brown Broveri (ABB) and 4 5 6 Hotels Group and the Royal Garden Resorts Herbalife International. Hotel Group. He holds a Diploma in Hotel Management and Operations from Belfast Mrs King graduated from Les Roches Hotel and 7 8 9 College of Business Studies, UK. Tourism School in Bluche-Montana, Switzerland.
12 PAN PACIFIC HOTELS GROUP LIMITED 13 100% Suzhou Wugong Hotel Hotel Investments (Suzhou) Pte. Ltd. ANNUAL REPORT 2009 100% Co., Ltd [PRC] 75% 100% Hotel Investments (Hanoi) Pte. Ltd. Westlake International Company [VN] 95% Group 100% YIPL Investment Pte. Ltd. Yangon Hotel Limited [MN] Structure 100% Hotel Plaza Property (Singapore) Pte. Ltd. As at 8 March 2010 100% New Park Hotel (1989) Pte Ltd 100% Parkroyal Hotels & Resorts Pte. Ltd. 100% Parkroyal Serviced Residences Pte. Ltd. 100% Parkroyal International Pte. Ltd. Parkroyal Marketing Services Pte. Ltd. 100% (in member’s voluntary liquidation) 100% Pan Pacific Hotels and 100% Pan Pacific Hotels and Resorts America, Inc. [USA] Resorts Seattle, LLC [USA] Parkroyal Technical Services Pte. Ltd. 100% (in member’s voluntary liquidation) 99% 1% Pan Pacific Hotels PT Pan Pacific Hotels & 100% and Resorts Pte. Ltd. Resorts Indonesia [IN] Parkroyal Hospitality Group Pte. Ltd. 100% 100% Pan Pacific Hotels and (in member’s voluntary liquidation) Pan Pacific Marketing 100% Services Pte. Ltd. Resorts Japan Co., Ltd [JP] 100% Pan Pacific Hospitality Holdings Pte. Ltd. Pan Pacific Technical 100% Pan Pacific (Shanghai) Hotel 100% Services Pte. Ltd. Management Co., Ltd. [PRC] Pan Pacific International Pte. Ltd. 100% Pan Pacific PPHR (Thailand) 100% Hospitality Pte. Ltd. 48.9% Company Limited [TH] Pan PACIFIC HOTELS GROUP LIMITED 100% United Lifestyle Holdings Pte Ltd 100% St Gregory Spa Pte Ltd 33.3% 100% Dou Hua Restaurants Pte Ltd Grand Elite Sdn. Bhd. [MY] 66.7% President Hotel Sdn Grand Elite (Penang) 100% HPL Properties (Malaysia) Sdn. Bhd. [MY] Berhad [MY] 100% Sdn. Bhd. [MY] 100% Garden Plaza Company Limited [VN] 65% Plaza Hotel Company 39.4% Pilkon Development Company Limited [BVI] Limited [VN] AU Incorporated In Australia BVI Incorporated in The British 100% Virgin Islands Success Venture (WA) 100% Success Venture Investments (WA) Limited [BVI] MY Incorporated in Malaysia Unit Trust [AU] MN Incorporated in Myanmar IN Incorporated in Indonesia PRINCIPAL ACTIVITIES Success Venture Pty 100% JP Incorporated in Japan 95% Success City Pty Limited [AU] Limited [AU] Investment holding and others PRC Incorporated in The People’s Success Venture (Darling Republic of China Hotelier 100% Harbour) Unit Trust [AU] TH Incorporated in Thailand Hotel management services 60% Success Venture Investments (Australia) Ltd [BVI] USA Incorporated in United States Success Venture Spa, lifestyle and restaurant operations 100% of America (Parramatta) Unit Trust [AU] VN Incorporated in Vietnam Associated companies
14 PAN PACIFIC HOTELS GROUP LIMITED 15 ANNUAL REPORT 2009 capital and development. In addition, we also made As “Pan Pacific” and “PARKROYAL” extend their several cross-brand senior appointments to signify presence across the world, our Vision, Purpose and 2009 IN SUMMARY our ongoing efforts to offer key team members Values will unify our global workforce of over 6,500 different strategic roles within the organisation to associates in 12 countries under Pan Pacific Hotels bring about greater knowledge and understanding Group to develop deeper relationships with our of the wider Pan Pacific Hotels Group, its people guests, our customers, our shareholders and our and medium to long term business strategy. larger community. RE-articulating OUR VISION, PURPOSE AND VALUES Very importantly, we recognised that no strategic plan or efforts would ever be properly realised if 2009 marked a very important new in key locations where distressed assets our most important assets – our people – were not chapter for Pan Pacific Hotels Group. present excellent opportunity for singular and focused upon a unifying Vision and superior returns and the market is Purpose as we assemble the building blocks of Pan With the renaming of the Group strategic to growth of the brand; and Pacific Hotels Group and chart the future of our from Hotel Plaza Limited to Pan where entry to a market requires capital. “Pan Pacific” and “PARKROYAL” brands. Pacific Hotels Group Limited to represent the successful integration BUILDING OUR BRANDS With that, we re-articulated a Vision and Purpose - of “Pan Pacific” and “PARKROYAL” Despite the challenging business Creating Memorable Hotel Experiences through into a single hospitality management climate, our hotels managed to Great Brands, Great Hotels, Great People and company to leverage scale benefits, create memorable experiences for Great Relationships. This is achieved through the Group embarked on several our guests, winning along the way, our Values: important strategic thrusts to prime important recognition and accolades itself for growth. in important industry awards such as • We work better together because we Travel+Leisure, Condé Nast Traveler collaborate, share, care about each other and CHARTING OUR STRATEGIC and the World Travel Awards. communicate openly with everyone. GROWTH As a start, the Group conducted a We were also delighted to be able • We keep our processes as simple and as strategic review of both the “Pan Pacific” to commence growing our presence uncomplicated as possible and take full and “PARKROYAL” brands. With a keen despite the challenging business responsibility for our actions. understanding of our brands’ unique environment. In 2009, we rebranded attributes and how they resonated most and opened Pan Pacific Xiamen in • We have an “internal debate, external cohesion” with guests and customers across the August while 2010 sees the opening culture with a can-do attitude and always try to world, we charted an expansion plan for of Pan Pacific Suzhou, Pan Pacific have fun. both brands. Serviced Suites Bangkok, Pan Pacific Nirwana Bali Resort and PARKROYAL • We enhance our performance by always Serviced Suites Kuala Lumpur. aiming higher and are not afraid of making the For “Pan Pacific”, we identified the Asia tough decisions. Pacific (Southeast Asia, Greater China, Japan), Oceania and North America BUILDING OUR PEOPLE CAPABILITIES • We respect and care for our wider community as key growth markets while we will through being connected and sharing, we also be looking to grow the “PARKROYAL” In building our international and recognise and value diversity in every way. footprint across Southeast Asia and people platform to effectively realise Greater China. our growth plan, we also attracted These values will define how we behave, and really new talent onboard in key strategic represents how we want to engage and interact This will be done through aggressively functions including development with one other and our stakeholders in a most securing of more hotel management and growth, strategy and planning, fulfilling way. contracts as well as deploying capital hotel operations, brands and human
16 PAN PACIFIC HOTELS GROUP LIMITED 17 ANNUAL REPORT 2009 Great Brands At Pan Pacific Hotels Group, a great brand is more than a premium name. It arises from distinctive accommodation and high service standards that translate consistently into memorable experiences for our guests. Building a great brand has helped “Pan Pacific” and “PARKROYAL” to thrive amidst challenges, garnering awards and international accolades with a winning charm that has kept travellers returning to us, year after year.
18 PAN PACIFIC HOTELS GROUP LIMITED 19 ANNUAL REPORT 2009 Pan Pacific Hotels and Resorts Pan Pacific Hotels and Resorts is a leading brand In 2009, the “Pan Pacific” portfolio extended to in premium accommodations and services with China with the 387-room Pan Pacific Xiamen in 16 hotels, resorts and serviced suites including the heart of Xiamen’s financial district. In January those under development in key destinations 2010, Pan Pacific Suzhou, a 481-room property across Asia and North America. featuring stunning Chinese architecture in an intricately-landscaped Suzhou garden, was An award-winning brand distinguished by launched. Following the success of Pan Pacific personalised care, delicate service and attention Serviced Suites Singapore, Pan Pacific Serviced to detail, “Pan Pacific” appeals to upscale Suites Bangkok also opened in February 2010. corporate and leisure travellers who appreciate It features 148 stylish residences in downtown elegant Asian influences. Bangkok and is the first extended-stay residences for the brand to be located outside Singapore. Backed by 30 years of global success, “Pan Pacific” has received top industry accolades Enhancing the hospitality experience, “Pan Pacific” including the World Travel Awards for World’s presents a tantalising array of Asian cuisine. These Leading Business Hotel (Pan Pacific Singapore) include “Keyaki”, a highly-acclaimed specialty and World’s Leading Airport Hotel (Pan Pacific restaurant dedicated to authentic Japanese fine- Kuala Lumpur International Airport), the AAA dining, while the award-winning “Hai Tien Lo” Four Diamond Award, Condé Nast Gold List features exquisite Cantonese cuisine. and Readers Choice Awards. It has also been recognised by Condé Nast Traveler magazine for exemplary social responsibility. Pan Pacific Singapore
20 PAN PACIFIC HOTELS GROUP LIMITED 21 ANNUAL REPORT 2009 PARKROYAL Hotels & Resorts “PARKROYAL” comprises a portfolio of seven “PARKROYAL” has a robust expansion strategy hotels and serviced suites in Singapore, Malaysia, and renewed design philosophy. Each year, Myanmar and Vietnam. It offers a lifestyle- guest experiences are heightened through new approach to hospitality founded on a tradition of properties complete with exciting restaurant timelessness, exquisiteness and fortitude. concepts and a comprehensive suite of facilities to suit business and leisure needs. These A trusted provider of quality, value and hospitality include “St. Gregory”, a pioneer of premier distinct to Asia, “PARKROYAL” leverages a strong wellness retreats offering holistic treatments that heritage that has flourished into a reputable, rejuvenate the senses; and the award-winning “Si upscale brand in the Asia-Pacific region. Exuding Chuan Dou Hua”, which offers delectable fine local charm and character, PARKROYAL Hotels & dining for authentic Sichuan cuisine. Resorts are dedicated to memorable experiences through stylish comfort, impeccable standards The brand is slated to launch its extended- and attentive service. stay residences, PARKROYAL Serviced Suites Kuala Lumpur, outside Singapore for the first In 2009, “PARKROYAL” became a member of the time in September 2010. In 2012, the flagship Global Hotel Alliance (GHA), a growing alliance PARKROYAL@CBD, designed by renowned of independent hotel brands synonymous architecture firm WOHA, will open in Singapore’s with quality accommodation and genuine Central Business District. commitment to service. The GHA extends the “PARKROYAL” global market reach through its network of nearly 300 upscale and luxury hotels with over 65,000 rooms in 48 countries. PARKROYAL Penang
22 PAN PACIFIC HOTELS GROUP LIMITED 23 ANNUAL REPORT 2009 Spa and Lifestyle Brands SI CHUAN DOU HUA ST. GREGORY The “Si Chuan Dou Hua” chain of restaurants is With a vision of providing “integrated holistic renowned for the quality and authenticity of its therapeutic spa care and fitness” to every Sichuan and Cantonese dishes. specialised age-group, “St. Gregory” was established in Singapore in 1997. The first “Si Chuan Dou Hua” restaurant opened in Singapore in PARKROYAL on Beach Road in Built on the “four pillars” of therapy, fitness, 1996. Following its successful debut, a second aesthetics and active-ageing to promote health restaurant was opened at UOB Plaza in 2002. and beauty for life, “St. Gregory” is a pioneer and market leader in the spa and wellness “Si Chuan Dou Hua” then expanded overseas industry, offering specialised and traditional with the first restaurant outside Singapore healing therapies ranging from Chinese Tui Na opening in 2003 at PARKROYAL Kuala Lumpur, to Javanese massages and Ayurveda treatments, and another in 2007 in Tokyo, Japan - continuing combined with advanced technologies and the fine tradition of bringing in the authentic techniques from the United States and Europe. tastes of China to the world. “St. Gregory” is currently found in Singapore, Besides the authentic cuisine, a unique aspect Malaysia and Japan. In 2010, “St. Gregory” of dining at Si Chuan Dou Hua Restaurants is intends to extend its presence in more markets. the traditional tea master integrating Chinese martial arts, dance and gymnastic moves to In 2006, “St. Gregory” was crowned the “Best perform a host of elegant and skilled stunts when Service Spa” in Asia by The Ultimate Spa pouring tea. Guide. From August 2006 to November 2009, St. Gregory at Marina Mandarin was accredited Additionally, Tian Fu Teahouse, by Si Chuan Dou Leading Spa by The Leading Hotels of the Hua Restaurant, boasts the first teahouse concept World Ltd., and is the only spa in Singapore to within a restaurant in Singapore. Opened in 2005 have received this honour. The same outlet was in PARKROYAL on Beach Road, the teahouse awarded Best Asian-Therapy Based Massage carries a wide selection of over 25 types of fine in The Singapore Women’s Weekly Best of tea. A second Tian Fu Teahouse was opened in Beauty Salons, Spas and Services 2009 for its UOB Plaza in 2008. Tui Na Massage. Additionally, St. Gregory at PARKROYAL Penang was rated “Best Spa with a The teahouse is a perfect complement to View” in Harper’s Bazaar Spa Awards 2009. Si Chuan Dou Hua Restaurant as guests can adjourn to the teahouse before or after their meals to enhance and/or complete their dining experience.
24 PAN PACIFIC HOTELS GROUP LIMITED 25 ANNUAL REPORT 2009 Great Hotels When it comes to great hotels, Pan Pacific Hotels Group is committed to creating memorable hotel experiences. This is distinguished by hallmarks of modern comfort and hospitality – well-appointed rooms and amenities, dedicated service and attention to detail. That is why we have continued to win recognition around the world, and our hotels come highly acclaimed, winning numerous awards and accolades. All because we believe in delivering value through hotels and resorts that are truly great. Pan Pacific Suzhou
26 PAN PACIFIC HOTELS GROUP LIMITED 27 ANNUAL REPORT 2009 Operations Overview This year marked a new beginning for the Group as it was renamed from Hotel Plaza Limited to Pan Pacific Hotels Group Limited to reflect its growing reputation as a leading branded hotel management company. WHISTLER With over 30 years of international recognition, the “Pan Pacific” brand was chosen to represent the VANCOUVER new identity of the Group - Pan Pacific Hotels Group Limited - to leverage its strong brand equity. SEATTLE DHAKA HANOI A new corporate logo, represented by a strong, YANGON SUZHOU simple and distinct “P” was unveiled, representing XIAMEN the Group’s focus and continued commitment to its key stakeholders - patrons, partners and principals. MANILA Currently Pan Pacific Hotels Group manages HO CHI MINH CITY and/or owns over 30 hotels and serviced suites in BANGKOK 12 countries. The Group comprises two acclaimed PENANG brands: “Pan Pacific” and “PARKROYAL”. KUALA LUMPUR The Pan Pacific Hotels and Resorts portfolio is JAKARTA represented by 16 hotels, resorts and serviced SINGAPORE suites (including those under development) in key PERTH SYDNEY destinations across Bangladesh, Canada, China, Indonesia, Malaysia, Singapore, Thailand, the Philippines and USA. The PARKROYAL Hotels & Resorts portfolio comprises seven hotels and serviced suites in gateway cities across Malaysia, Myanmar, Singapore and Vietnam. Singapore ho chi minh city Seattle The Plaza PARKROYAL Saigon Pan Pacific Seattle PARKROYAL on Beach Road Hotel Sofitel Saigon Plaza PARKROYAL on Kitchener Road Vancouver EXISTING CONFIRMED PIPELINE PARKROYAL Serviced Suites Singapore HANOI Pan Pacific Vancouver Pan Pacific Singapore Hotel Sofitel Plaza Hanoi NO. OF HOTELS NO. OF ROOMS NO. OF HOTELS NO. OF ROOMS Pan Pacific Orchard Whistler Pan Pacific Serviced Suites Singapore YANGON Pan Pacific Whistler Mountainside BY BRANDS PARKROYAL Yangon Pan Pacific Whistler Village Centre Pan Pacific 15 4,588 1 278 KUALA LUMPUR PARKROYAL Kuala Lumpur DHAKA PARKROYAL 7 2,162 3 996 Pan Pacific Kuala Lumpur International Airport Pan Pacific Sonargaon Dhaka Others 5 1,622 - - PENANG SUZHOU PARKROYAL Penang Pan Pacific Suzhou TOTAL 27 8,372 4 1,274 BANGKOK XIAMEN Pan Pacific Bangkok Pan Pacific Xiamen BY ownership type Pan Pacific Serviced Suites Bangkok Investment Property Owned by The Group SYDNEY Hotels Owned and Managed by The Group Owned 13 4,265 1 367 Jakarta Crowne Plaza Darling Harbour Hotels Owned by The Group and Managed by Managed 14 4,107 3 907 Sari Pan Pacific Jakarta Crowne Plaza Parramatta Third Parties Properties Owned by Third Parties and TOTAL 27 8,372 4 1,274 MANILA PERTH Managed by The Group Pan Pacific Manila Sheraton Perth Hotel
28 PAN PACIFIC HOTELS GROUP LIMITED 29 ANNUAL REPORT 2009 Operations Overview PORTFOLIO SUMMARY Investment PropertIES Owned by the Group The Plaza Shops & Offices PARKROYAL Yangon Completed Purchased 1997 2001 Retained interests in a 32-storey tower block comprising Completed 1974 & 1979 An 8-storey V-shaped tower comprising 267 rooms at the Tenure of Land 30-Year Lease from restaurants, hotel function rooms, shops and offices, two Tenure of Land 99-Year Lease from corner of Alan Pya Phaya Road and Yaw Min Gyi Road, 1997 1968 Approximate Gross adjacent commercial buildings and a multi-storey carpark Yangon, Union of Myanmar Floor Area (SqM) 17,700 Approximate Net block at 7500 Beach Road, Singapore Lettable Area (SqM) 18,597 Car Park Facilities 140 Car Park Facilities 659 S$7.8m S$102.6m Present Capital Value Present Capital Value PARKROYAL Kuala Lumpur and Completed Purchased 1974 1999 PARKROYAL SERVICED SUITES Completed Tenure of Land 1979 99-Year Lease from President House Tenure of Land Freehold Approximate Gross Comprising 90 serviced suites and one owner-occupied 1968 Comprising a 23-storey tower with a 6-storey podium Floor Area (SqM) 56,707 apartment at 7500A Beach Road, Singapore Approximate Net Lettable Area (SqM) 6,125 & 165 respectively together with an annexed 8-storey car park building, with the 426-room hotel occupying the tower and part of the podium Car Park Annex S$58.3m at Jalan Sultan Ismail, Kuala Lumpur, Malaysia Tenure of Land Leasehold, expiring in Present Capital Value 2080 Approximate Gross S$95.0m Floor Area (SqM) 11,128 Hotels Owned and Managed by the Group Present Capital Value Car Park Facilities 320 PARKROYAL on Beach Road Completed Tenure of Land 1971 & 1979 99-Year Lease from A 7-storey hotel building with 343 rooms at 7500C 1968 PARKROYAL PENANG Completed Purchased 1990 1999 Approximate Gross A 309-room 8-storey beachfront resort hotel at Tenure of Land Freehold Beach Road, Singapore Floor Area (SqM) 19,900 Approximate Gross Car Park Facilities 41 Batu Ferringhi Beach, Penang, Malaysia Floor Area (SqM) 31,502 S$112.0m Car Park Facilities 147 Present Capital Value S$56.8m Present Capital Value PARKROYAL on Kitchener Road Completed Purchased 1976 & 1981 1989 Comprising a 5-storey podium with a basement and a Tenure of Land Freehold Pan Pacific Suzhou Completed Purchased 1998 2001 16-storey Y-shaped tower with 534 rooms, at 181 Kitchener Approximate Gross Comprising an establishment built in the Ming Dynasty Tenure of Land 50-Year Lease from Floor Area (SqM) 37,811 1994 Road, Singapore Car Park Facilities 273 style, with 481 rooms accommodated within a cluster of low- Approximate Gross rise buildings at Xinshi Road, Suzhou, Jiangsu, The People’s Floor Area (SqM) 63,232 S$183.0m Republic of China Car Park Facilities 100 Present Capital Value S$119.6m Present Capital Value PARKROYAL SAIGON Completed Tenure of Land 1997 49-Year Lease from Comprising a 10-storey hotel building with a 9-storey 1994 extension wing, with a total of 193 rooms and a 4-storey Approximate Gross Floor Area (SqM) 12,165 annex office building at Nguyen Van Troi Street, Ho Chi Minh Car Park Facilities 25 City, Vietnam S$37.7m Present Capital Value
30 PAN PACIFIC HOTELS GROUP LIMITED 31 ANNUAL REPORT 2009 Operations Overview PropertIES OWNED BY THIRD PARTIES AND MANAGED BY THE GROUP PROPERTY ADDRESS NO. OF ROOMS SINGAPORE PORTFOLIO SUMMARY PAN PACIFIC SINGAPORE 7 Raffles Boulevard, Marina Square, 778 Singapore 039595 PAN PACIFIC ORCHARD 10 Claymore Road, Singapore 229540 205 Hotels Owned by the Group and Managed by PAN PACIFIC SERVICED SUITES SINGAPORE 96 Somerset Road, Singapore 238163 126 Third Parties Crowne Plaza Darling Harbour Completed Purchased 1991 1993 MALAYSIA A 13-level hotel with 345 rooms at 150 Day Street, Tenure of Land Freehold PAN PACIFIC KUALA LUMPUR Jalan CTA 4B, 64000 KLIA, Sepang 441 Sydney, Australia Approximate Gross INTERNATIONAL AIRPORT Selangor Darul Ehsan, Malaysia Floor Area (SqM) 24,126 Car Park Facilities 53 S$91.4m THAILAND Present Capital Value Pan Pacific Bangkok 952 Rama IV Road, Suriyawongse, 241 Bangrak, Bangkok 10500, Thailand 148 Crowne Plaza Parramatta Completed Purchased 1986 1994 PAN PACIFIC SERVICED SUITES BANGKOK 818/333 Sukhumvit Soi 55, North (Opened in February 2010) Klongton, Wattana District, Bangkok A 13-level hotel with 196 rooms at 30 Phillip Street, Tenure of Land Freehold Parramatta, New South Wales, Australia Approximate Gross 10110, Thailand Floor Area (SqM) 16,694 Car Park Facilities 176 S$36.0m INDONESIA Present Capital Value Sari Pan Pacific Jakarta Jalan M.H.Thamrin 6, P.O. Box 3138, 400 Jakarta 10340, Indonesia Sheraton Perth Hotel Completed Purchased 1973 1995 THE PHILIPPINES Comprising a 23-storey hotel tower with a 4-level extension Tenure of Land Freehold Pan Pacific Manila M. Adriatico Cor. Gen Malvar Sts., 236 wing, with a total of 486 rooms at the corner of Adelaide Approximate Gross Floor Area (SqM) 31,513 Malate, Manila City 1009, Philippines Terrace and Hill Street, Perth, Australia Car Park Facilities 220 BANGLADESH S$157.8m 277 Present Capital Value Pan Pacific Sonargaon Dhaka 107 Kazi Nazrul Islam Avenue. G.P.O. Box 3595, Dhaka 1215, Bangladesh Hotel Sofitel Plaza Hanoi Completed Purchased 1998 2001 CHINA A 20-storey hotel with 309 rooms and 36 serviced apartments Tenure of Land 48-Year Lease from Pan Pacific XIAMEN 19 Hubin Bei Road, Xiamen 361012, 387 at Thanh Nien Road, Hanoi, Vietnam 1993 Fujian China Approximate Gross Floor Area (SqM) 39,250 S$95.0m Car Park Facilities 40 NORTH AMERICA Present Capital Value Pan Pacific Seattle, USA 2125 Terry AVE, Seattle. WA 98121 160 Pan Pacific Vancouver, Canada 300 - 999 Canada Place, Vancouver, 504 Property under Construction BC V6C 3B5 Upper Pickering Street Expected Completion mid-2012 Tenure of Land 99-Year Lease from 2008 Pan Pacific Whistler 4320 Sundial Crescent, Whistler, 121 A proposed development comprising a 367-room hotel Site Area (SqM) 6,959 Mountainside, Canada British Columbia V0N1B4, Canada and approximately 7,320 square metres of office space Gross Floor Area (SqM) 29,227 Pan Pacific Whistler 4299 Blackcomb Way, Whistler, 83 Village Centre, Canada British Columbia V0N1B4, Canada
32 PAN PACIFIC HOTELS GROUP LIMITED 33 ANNUAL REPORT 2009 Operations Overview SOUTH EAST ASIA REVENUE (S$’M) points to 71%. The average room rate increased by 12% to RM370. Visitor Arrivals In the Asia Pacific region, Southeast Asia has emerged as the only sub-region to record an increase in 250 MYANMAR international arrivals in 2009. Visitor numbers rose 1% year-on-year, supported by Myanmar (+26%), Malaysia PARKROYAL Yangon (+7%), Indonesia (+1%) and Cambodia (+2%). On the other hand, full-year declines were recorded by The Group has a 95% interest in the 267-room Thailand (-3%), Singapore (-4%) and Vietnam (-10%) respectively. 200 PARKROYAL Yangon. Average occupancy for the hotel saw a 19 percentage point increase to 62% in 2009, Group Performance 150 while the average room rate rose by 6% to USD36. Revenue (including those from managed hotels not owned by the Group) declined by 15% to $351 million during the year driven by declines in revenue per available room (“RevPAR”) for the region. While occupancy VIETNAM remained flat at 69%, average room rate had declined by 19%. 100 PARKROYAL Saigon Average occupancy of the 193-room PARKROYAL The lowest decline of 16% in RevPAR was recorded by owned and managed due to improved performance 50 Saigon for the year decreased by 11 percentage points of the hotels in Myanmar and Malaysia which benefited from higher visitor arrivals during the year. to 59%. The average room rate decreased by 17% to 0 USD85. RevPAR of owned and managed by third party suffered the largest decline of 29% as the two hotels in this ownership type are located in Vietnam where visitor arrivals in 2009 had recorded a sharp decline of 10%. 2005 2006 2007 2008 2009 Hotel Sofitel Plaza Hanoi Owned and Managed Owned and Managed Managed by Third Party The 309-room Hotel Sofitel Plaza Hanoi, in which the OCCUPANCY REVPAR (S$) Group has a 75% interest, commands a scenic view of the West Lake and Red River, with convenient 90% 200 PARKROYAL SERVICED SUITEs access to the central business district. During The PARKROYAL Serviced Suites comprises 90 the year, average occupancy declined by nine units of serviced suites at The Plaza on Beach Road. percentage points to 62%, while the average room 150 Renovation of 40 units and the upgrading of the air- rate decreased by 18% to USD110. 80% conditioning system in all 90 units was completed in February 2009. Renovation of the remaining 50 units As part of the re-positioning of the hotel to the new commenced in mid-October 2009. All units will be Sofitel brand standard, the hotel will be renovating 70% 100 fully renovated by February 2010. the guestrooms, F&B outlets and meeting facilities in 2010. Occupancy closed at 69% down from 86% in the 60% 50 year before, due to the renovations in Q1 2009 and Hotel Sofitel Saigon Plaza and Q4 2009. Central Plaza The 287-room Hotel Sofitel Saigon Plaza, in MALAYSIA which the Group has a 26% effective interest, is 0% 0 PARKROYAL Kuala Lumpur conveniently located in the main commercial and 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 The 426-room PARKROYAL Kuala Lumpur with the diplomatic precinct. Average occupancy dropped Owned and Managed Owned and Managed Managed Owned and Managed Owned and Managed Managed adjoining President House is strategically located in by 12 percentage points to 53% in 2009 while the by Third Party by Third Party the Golden Triangle, the capital’s main commercial average room rate declined by 17% to USD135. and retail district. Average occupancy of the hotel was 79%, an increase of eight percentage points As part of its re-positioning to the new Sofitel brand SINGAPORE year on year. The average room rate reduced by standard, the hotel will be renovating guestrooms, PARKROYAL on Beach Road PARKROYAL on Kitchener Road 10% to RM239. F&B outlets and meeting facilities in 2010. Average occupancy of the 343-room PARKROYAL The 534-room PARKROYAL on Kitchener Road saw PARKROYAL Penang Adjoining the hotel is the Central Plaza, a 16-storey on Beach Road declined by six percentage points to average occupancy increase by one percentage PARKROYAL Penang, with 309 rooms, saw its office block with a total lettable area of 7,895 sqm. 73% in 2009, while the average room rate decreased point to 76% in 2009. Average room rate decreased average occupancy increase by four percentage The office block was fully let out during the year by 25% to S$166. by 28% to S$134. under review.
34 PAN PACIFIC HOTELS GROUP LIMITED 35 ANNUAL REPORT 2009 Operations Overview CHINA NORTH AMERICA Visitor Arrivals Visitor Arrivals The full-year visitor arrivals for China were down by 3% compared to the previous year. The country’s hotel The Americas recorded an estimated 6% fall in arrivals for the full year 2009 in comparison to 2008. The performance declined sharply during 2009, with RevPar falling 26% compared with a year ago. The decline in numbers of international visitor arrivals to Canada and the USA were both down for the year. RevPAR was largely due to falling average daily rate of 21% on top of declines in occupancy of 6.5%. The decline in occupancy came amid significant increases in hotel supply during the last few years. Available rooms across Group Performance the country increased by 5% for 2009 compared to the previous year. Performance of the hotels was affected by the downturn in the market as a result of the global financial crisis. Managed revenue decreased by 17% to $77 million during 2009 as a result of a 16% decline in RevPAR. The Group Performance decline in RevPAR comprised of a 6% drop in occupancy and 10% decline in average daily rate. During the year, occupancy increased by one percentage point while RevPAR declined by 15%. Revenue however increased by 70% due to the addition of a new managed hotel. The Pan Pacific Xiamen, which is wholly-owned by the Group’s parent company, UOL Group Limited, was rebranded in August 2009. OCCUPANCY (%) REVPAR (S$) 80% 300 OCCUPANCY REVPAR (S$) 80% 200 60% 250 60% 150 40% 200 40% 100 20% 150 20% 50 0% 0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Managed Managed 0% 0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Managed Owned and Managed by Third Party Managed Owned and Managed by Third Party REVENUE (S$’M) REVENUE (S$’M) 250 40 200 THE PEOPLE’S REPUBLIC OF CHINA 30 Pan Pacific SUZHOU 150 The hotel which was rebranded to Pan Pacific with effect from January 2010 is located at Xinshi Road 20 100 within the Suzhou city precinct. During the year, average occupancy was 50%. However, total rooms 10 sold had increased in 2009 due to the additional 0 99 rooms added on to the hotel inventory in March 2005 2006 2007 2008 2009 2009. The average room rate registered a 22% drop 0 Managed to RMB656 as a result of increased competition and a 2005 2006 2007 2008 2009 general decline in rates in the market. Managed Owned and Managed by Third Party
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