Disposal of Studio M Hotel Singapore in Singapore

For Immediate Release 2 March 2011

Disposal of "Studio M Hotel Singapore" in Singapore

Millennium & Copthorne Hotels plc ("M&C") announces that Republic Iconic Hotel Pte. Ltd. (the "Company") (a wholly-owned subsidiary of M&C) has entered into a conditional sale and purchase agreement (the "Agreement") with DBS Trustee Limited, as trustee of CDL Hospitality Real Estate Investment Trust ("H-REIT"), pursuant to which H-REIT will acquire, among other things, the remaining term of the 99-year leasehold interest (commencing 26 February 2007) in the hotel known as "Studio M Hotel Singapore" located at 3 Nanson Road, Singapore 238910 (the "Hotel"). The sale price for the Hotel is S$154 million (£77.3 million 2) ("Sale Price").

Concurrent with the completion of the Agreement, H-REIT (as lessor) will enter into an initial 20-year fixed term lease with the Company (as lessee) for the Hotel. The lessee has an option, subject to certain conditions, to extend the lease for three consecutive terms totaling 50 years.1

H-REIT is a real estate investment trust which is part of the stapled group known as CDL Hospitality Trusts ("CDLHT") that is listed on the Singapore Exchange Securities Trading Limited. M&C has a beneficial interest in approximately 35.0% of the stapled securities of CDLHT (the "Stapled Securities"). The manager of H-REIT is M&C REIT Management Limited, a wholly-owned subsidiary of M&C.

Completion of the Agreement is conditional upon H-REIT obtaining the approval of the holders of the Stapled Securities for the acquisition of the Hotel under the Agreement and the lease of the Hotel.

The Sale Price will be satisfied entirely in cash upon completion of the Agreement, which is expected to occur in Q2 2011. Following completion under the Agreement, the Hotel will continue to be branded as a "Studio M Hotel" and the M&C group will continue to have management responsibility for the Hotel.

Based on M&C's carrying value (which is subject to adjustments for amounts yet to be certified) of the Hotel assets subject to disposal as at 31 December 2010, (1) total realised pre-tax profit from the disposal to be credited to the income statementis expected to be approximately S$34.2 million (£17.2 million 2) and (2) total unrealised pre-tax profit from the disposal to be credited to the balance sheet under 'Investment in joint ventures and associates' arising from the M&C group's approximately 35.0% interest in the stapled securities of CDLHT is expected to be approximately S$18.4m (£9.2m2).

Enquiries

Millennium & Copthorne Hotels plc Tel: +44 (0) 20 7872 2444

Richard Hartman, Chief Executive Officer

Adrian Bushnell, Company Secretary

Beng Lan Low, Senior Vice President Finance

Peter Krijgsman, Financial Communications (Media)

1. The Company will pay H-REIT, rental comprising: (a) a fixed rent of S$5 million (£2.5 million 2) per annum ("Fixed Rent") (subject to adjustment after the first ten years of the lease); and (b) a variable rent that is computed based on 30% of the Hotel's revenue for the prevailing financial year and 20% of the Hotel's gross operating profit for the prevailing financial year, less the fixed rent for the prevailing financial year ("Variable Rent"). In the event the aggregate of the actual Fixed Rent and the actual Variable Rent payable by the Companyin respect of the first twelve (12) months of the lease term (after deducting property taxes and insurance premiums payable by H-REIT under the lease) ("First Twelve Months Net Rent") is less than S$9.24 million (£4.6 million 2) ("Guaranteed Net Rent"), the Company will pay to H-REIT the difference between the Guaranteed Net Rent and the First Twelve Months Net Rent as additional rent, on and subject to the terms and conditions contained in the lease agreement.

2. Based on £1= S$1.993 as at 31 December 2010