Creating Memorable Hotel Experiences - Pan Pacific Hotels ...

Creating Memorable Hotel Experiences - Pan Pacific Hotels ...
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

      Company Registration No. 196800248D

  101 Thomson Road #33-00 United Square
            Singapore 307591

 238A Thomson Road #08-00 Novena Square
     Office Tower A, Singapore 307684
    T (65) 6808 1180 | F (65) 6821 8001
Creating Memorable Hotel Experiences - Pan Pacific Hotels ...
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
                                                                 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.
Creating Memorable Hotel Experiences - Pan Pacific Hotels ...
                                                           ANNUAL REPORT 2009

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
Creating Memorable Hotel Experiences - Pan Pacific Hotels ...
02                                                                                                                                                                     PAN PACIFIC HOTELS GROUP LIMITED                    03
                                                                                                                                                                                    ANNUAL REPORT 2009


                                                                      DELIVERING SHAREHOLDERS’ VALUE
                                                                                                                                                                        2005                   2009            CAGR
Our Vision,                                                           REVENUE                                                                                          $276m                  $288m             1.07%
                                                                                                                                                                       $94.95                $106.62            2.94%
Purpose and
                                                                      EBITDA                                                                                            $81m                   $84m             0.91%

Values                                                                PROFIT AFTER TAX AND MINORITY INTERESTS
                                                                      EARNINGS PER SHARE*
                                                                      *        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
                                                                      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%
              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%
              As a Group, our teamwork and achievements are
              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’
              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
                                                                          0                                                Group Average

                                                                               2005      2006     2007    2008    2009                                                2005    2006    2007     2008     2009
Creating Memorable Hotel Experiences - Pan Pacific Hotels ...
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
                                                                                                      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
Creating Memorable Hotel Experiences - Pan Pacific Hotels ...
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.
Creating Memorable Hotel Experiences - Pan Pacific Hotels ...
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.
Creating Memorable Hotel Experiences - Pan Pacific Hotels ...
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.
Creating Memorable Hotel Experiences - Pan Pacific Hotels ...
12                                                                                                                                                                       PAN PACIFIC HOTELS GROUP LIMITED              13
                                                                                               100%    Suzhou Wugong Hotel
                                           Hotel Investments (Suzhou) Pte. Ltd.                                                                                                        ANNUAL REPORT 2009
                                   100%                                                                Co., Ltd [PRC]

                                   100%    Hotel Investments (Hanoi) Pte. Ltd.                         Westlake International
                                                                                                       Company [VN]


 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.
                                           (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.
                                           (in member’s voluntary liquidation)                                                         99%                                          1%
                                                                                                       Pan Pacific Hotels                     PT Pan Pacific Hotels &
                                                                                                       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
                                                                                                       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]

                                           Pan Pacific International Pte. Ltd.                 100%    Pan Pacific                          PPHR (Thailand)
                                                                                                       Hospitality Pte. Ltd.          48.9% Company Limited [TH]
                                   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
                                                                                                       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
Creating Memorable Hotel Experiences - Pan Pacific Hotels ...
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

                                                                                                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.
       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
                        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

Hotels &
                   “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.

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
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.

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
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
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

Investment PropertIES Owned by the Group
 The Plaza                   Shops & Offices                                                                    PARKROYAL Yangon                                               Completed
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
PARKROYAL SERVICED SUITES                                      Completed
                                                               Tenure of Land
                                                                                     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
                                                               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
                                                                                     1976 & 1981
Comprising a 5-storey podium with a basement and a             Tenure of Land        Freehold                   Pan Pacific Suzhou                                             Completed
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
                                                                                                                Present Capital Value
PARKROYAL SAIGON                                               Completed
                                                               Tenure of Land
                                                                                     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

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

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
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
Crowne Plaza Parramatta                                       Completed
                                                                                                                 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
                                                                                       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
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
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.
                                                                                                               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


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
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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