Interim Management Statement & Q3 Results

For Immediate Release 4 November 2010

MILLENNIUM & COPTHORNE HOTELS PLC

INTERIM MANAGEMENT STATEMENT

Third quarter and nine months results to 30 September 2010

HIGHLIGHTS

Third Quarter:

·; RevPAR (in constant currency terms) increased in all regions. Singapore 29.0%, London 14.2%, Rest of Europe 10.6%, New York 8.8%, Regional US 10.0%, Rest of Asia 4.6% and New Zealand 6.2%.

·; Profit before tax increased to £41.7m (2009: £21.9m).

·; Dilution of interest in CDLHT to 34.8% from 39.0% gave rise to a £7.2m pre-tax profit.

Nine Months:

·; RevPAR (in constant currency terms) increased in all regions. Singapore 31.9%, London 6.1%, Rest of Europe 3.0%, New York 11.8%, Regional US 3.4%, Rest of Asia 9.2% and New Zealand 5.9%.

·; Basic earnings per share up 57.6%.

·; Strong cash flows from operating activities of £88.8m (2009: £53.6m) excluding £19.7m (2009: £nil) of capitalised development fees to redevelop the Copthorne Orchid Singapore into condominiums.

·; Conversion rate was 54.7% (66.6% at hotel GOP level), reflecting strict cost discipline in improved trading environment.

Commenting today Mr Kwek Leng Beng, Chairman said:

'The Group delivered a good performance in the third quarter with RevPAR gains in every geographical segment of our operations feeding through to increased profits.

'Management took advantage of a busier hospitality market in our key cities by deploying effective yield enhancement strategies. Together with the Company's strict cost discipline, this has enabled us to make good progress in restoring revenues and profitability for the nine-month period towards levels we saw before the start of the financial crisis.

'While forward visibility remains limited, our good performance has continued in the month of October.'

Enquiries

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

Adrian Bushnell, Company Secretary

Beng Lan Low, Senior Vice President Finance

Peter Krijgsman, Financial Communications

Analyst briefing

There will be a conference call for investors and analysts hosted by Adrian Bushnell, Company Secretary at 8:30 am (UK time) on 4 November 2010. For dial in details contact Julianna Li on +44 (0) 20 7872 2444 

CHAIRMAN'S STATEMENT

Group trading performance was strong in the third quarter of 2010. This was a result of our revitalised hotel management teams seizing the yield enhancement opportunities offered by better market conditions whilst maintaining strict cost control.

For the nine months to 30 September 2010, Group RevPAR rose 10.7% compared to the same period last year in constant currency terms. Occupancy grew by 3.7 percentage points to 71.5% (2009: 67.8%), while rate increased by 5.0% to £83.43 (2009: £79.49). The increase in RevPAR was led by high growth rates in Singapore (31.9%), New York (11.8%) and Rest of Asia (9.2%).

RevPAR increased across all regions in the third quarter, driven by a combination of higher occupancy (up 2.5 percentage points) and higher room rate (up 9.1%). Across the Group, the rate of RevPAR growth slowed slightly to 12.9% in the third quarter compared to 14.7% in the second quarter. This was primarily due to stronger comparatives for the Asian and New York regions in the third quarter of 2009. In a robust hospitality market, London has overcome the aircrew issues that marked the early part of this year to deliver RevPAR growth of 14.2% for the quarter.

Financial Performance

Headline operating profit for the nine months to 30 September 2010 increased by 53.8% to £98.4m (2009: £64.0m), with the Group's continuing focus on strict cost discipline enhancing the gains coming through from an improved trading environment. The conversion rate was 54.7% (66.6% at hotel GOP level). Headline profit before tax increased by 67.4% to £89.9m (2009: £53.7m). The smaller increase in headline earnings per share - up 60.6% to 21.2p (2009: 13.2p) - reflects the impact of a higher effective tax rate.

Financial Position

The Group's financial position remains strong and provides the Group with the necessary flexibility to invest in its assets. Over the nine months the Group reduced net debt by £54.0m to £148.5m at 30 September 2010 (31 December 2009: £202.5m). Gearing at the end of the third quarter was 8.0% (31 December 2009: 11.6%). At 30 September 2010 the Group had cash reserves of £182.7m and total undrawn committed bank facilities of £208.5m available. Most of the facilities are unsecured with encumbered assets representing 6.8% of our fixed assets and investment properties.

CDL Hospitality Trusts REIT

On 1 July 2010, CDLHT announced the issue of 116,960,000 new stapled securities, priced at S$1.71 each, pursuant to a private placement, and raising net proceeds of S$196.7m (S$200.0m gross) and diluting the Group's interest in CDLHT to 34.77% from its pre-issuance interest of 39.03%. The transaction resulted in a non-cash accounting gain for the Group of S$15.0m (£7.2m - see note a) because the Group's share of proceeds were greater than its share of net tangible assets diluted by the issue.

(a) Based on an exchange rate of S$2.0865 : £1 as at 30 June 2010.

Asset Management

The Group's asset management strategy is focused on enhancing the performance of each of the Group's individual property assets and assessing which asset management options will deliver best value for our shareholders. Management focus is concentrated on the 20% or so of properties in the Group's portfolio that generate 80% or more of Group earnings, with a view to developing a structured and phased investment programme to enhance returns on certain under-invested, prime-location assets in the portfolio. The Group is now engaged in drawing up detailed refurbishment/capex plans for four properties: the Millennium Mayfair, The Millennium Seoul Hilton, The Grand Hyatt Taipei and the Millennium UN Plaza. In each case the Group is establishing optimal timing of refurbishment work to minimise revenue impact and capex costs. The locations of these properties are such that Group expects each to attract a higher proportion of premium rate customers following refurbishment.

The Group announced on 15 September, 2010 that it had entered into an agreement to sell a parcel of land adjacent to the Grand Millennium Kuala Lumpur for a consideration of RM210 million (£42.6m - see note (b)). The sale, which achieved a very good price in current market conditions, is contingent on the Malaysian authorities' approval of changes to the land title on such terms and conditions that are acceptable to the company. The purchasers have paid CDL Hotels (Malaysia) Sdn. Bhd. a deposit amounting to 10% of the consideration price and have agreed to pay certain amounts on specified future dates with the remainder payable on completion, which is expected to occur before the end of the second quarter of 2012. The Group's carrying value of the land is RM42.8m (£8.7m - see note (b)). Based on this value, the sale is expected to result in a pre-tax profit on completion of RM164.1m (£33.3m - see note (b)) after transaction costs. Until completion our interest in the land will be held on the balance sheet at book value.

(b) Based on an exchange rate of RM4.932 : £1 as at 31 August 2010.

The Group announced on 16 June 2010 that it had signed a collective sales agreement ("CSA") with other unit-holders in Tanglin Shopping Centre, a shopping-cum-office development situated within the Orchard prime tourist district in Singapore, in which the Group has a 34% interest in the total strata area. As noted at the interim stage, the CSA requires agreement of 80% of unit-holders for the sale process to proceed. Details regarding the proportion of signatories should be released shortly by the sales committee.

Development

In line with our distinctive twin strategy to maximise asset value as well as hotel trading profits, the Group formally commenced redevelopment of the Copthorne Orchid Singapore. The pre-marketing phase for the 150-condominium Glyndebourne residential complex, which will be constructed on the site of the hotel, began last week, with options granted on 75% of all units as at 1 November at an average price of approximately S$2,100 per square foot. Construction will be completed no later than 2015. The hotel will close during the first quarter of 2011.

As announced at the interim stage, the Board has approved a plan to commence construction of a 110-room hotel at Chennai in India, reactivating the joint venture established in 2007. Development plans had been suspended in early 2009 as a result of the rapid deterioration in the global economy at that time.

The Group has signed four management contracts this year in the Middle East. The new hotels - in Jordan, Oman, Qatar and the United Arab Emirates - will offer 1,034 rooms on completion between 2010 and 2012. The Group's worldwide pipeline has 29 hotels offering 8,481 rooms.

First Sponsor Capital Limited

As previously reported, the Group has a 39.8% effective interest in First Sponsor Capital Limited ("FSCL"), a vehicle which principally undertakes property development and investment projects in China. Despite the misappropriation of assets by a joint venture partner as reported in April and in previous management statements, the Board considers that the Group's participation in FSCL continues to be value-enhancing for shareholders.

FSCL's assets in Chengdu, Sichuan Province remain secure and development of its Cityspring project is on track. Since June 2010, 4 out of 6 residential blocks have been launched with 369 sale and purchase agreements and 82 option agreements signed as at 25 October 2010. This represents a sale rate of 93% out of the total 484 units launched. Revenue and profit recognition for this project is expected by end of 2011.

There is no change with regard to the Board's view on the need for provisioning.

Management

The Group continues its search for a new Chief Executive Officer, following Richard Hartman's decision to retire as CEO. The Board's Nominations Committee is considering a range of candidates for the role and will announce Mr. Hartman's successor in due course. Mr Hartman will remain on the Board of the Company after the appointment of a new CEO and has agreed to remain CEO until his successor takes up the post.

Looking forward

Our results for the first nine months of 2010 are encouraging and demonstrate the strength and stability of our business. The restructuring which we undertook in the wake of the financial crisis has rejuvenated key parts of our management team and this will continue to benefit the Group's performance.

In the month of October, Group RevPAR increased by 12.0% with Singapore increasing by 27.6%, London by 14.6% and New York by 0.9%. 

We will continue to be mindful of macro-economic uncertainty in the months ahead, and exercise rigorous analytical discipline with regard to investment plans whilst maintaining our tight rein on costs.

Kwek Leng Beng

CHAIRMAN

4 November 2010

Financial and Operating Highlights

Notes

1 The Group believes that headline operating profit, headline profit before tax, headline profit after tax and headline earnings per share provide useful and necessary information on underlying trends to shareholders, the investment community and are used by the Group for internal performance analysis. Reconciliation of these measures to the closest equivalent GAAP measures are shown in notes 3, 9 and 10 to these financial statements.

2 Other operating income of the Group for both the third quarter and nine months ended 30 September 2010 of £7.2m represents a non-cash accounting gain on dilution of interest in CDLHT to 34.77% following a CDLHT private placement issue (pre-issuance interest of 39.03%). The placement (on 1 July 2010) was made at a small discount to the share price which at that time traded at a premium CDLHT's net tangible assets. This resulted in the Group's share of private placement proceeds being greater than its share of net tangible assets diluted by the issue, giving rise to a gain.

3 Other operating expense of the Group for the nine months ended 30 September 2010 of £1.5m represents a provision for redundancy costs associated with the closure of the Orchid Hotel in Singapore during the first quarter of 2011. Other operating expense of the Group for the year ended 31 December 2009 represents a loss of £0.2m on fair value adjustment to the Tanglin Shopping Centre, an investment property of the Group.

4 Other operating income of joint ventures and associates for the year ended 31 December 2009 primarily represents the Group's share of fair value adjustments of investment properties of First Sponsor Capital Limited of £0.6m net of £0.5m related interest, tax and non-controlling interests.

5 Other operating expense of joint ventures and associates for the third quarter represents the Group's share of assets write-off and legal costs associated with the recovery of assets in First Sponsor Capital Limited of £0.7m net of £0.2m related tax and non-controlling interests. For the nine months ended 30 September 2010, this represents the Group's share of provision against assets write-off and legal costs in First Sponsor Capital Limited of £4.6m net of £1.3m related tax and non-controlling interests.

6 Impairment for the third quarter represents additional interest expense in the Group's 50% joint venture in Bangkok being fully written down and for the nine months to 30 September 2010 represents additional interest expense and loan written off. Impairment for the year ended 31 December 2009 represents additional funding in the Group's 50% joint venture in Bangkok being fully written down by £1.3m and a £0.9m impairment of a piece of land in India.

Financial Performance - Third quarter overview

For the third quarter to 30 September 2010, profit before tax increased by 90.4% to £41.7m (2009: £21.9m). Headline profit before tax, the Group's measure of underlying profit before tax, increased by 58.8% from £22.1m to £35.1m. Headline operating profit increased by 49.2% to £38.2m (2009: £25.6m).

Financial Performance - Nine months' overview

Headline operating profit increased by 53.8% to £98.4m (2009: £64.0m). Headline profit before tax rose by 67.4% to £89.9m (2009: £53.7m). The bigger increase in headline profit before tax was due to reduced net finance cost arising from lower interest rates and lower net debt. The smaller increase in headline earnings per share - up 60.6% to 21.2p (2009: 13.2p) - reflects the impact of a higher effective tax rate.

The 53.8% rise in headline operating profit was a result of continuing economic recovery since the second half of 2009, improved trading performance of the Group and tight cost control. In constant currency terms, as shown in the table below, the operating profit variance of £26.1m represents a 54.7% conversion rate, while at hotel level the GOP conversion rate is 66.6%. This conversion rate illustrates the ongoing impact on Group profitability of strong cost management and various restructuring exercises over the last eighteen months. The difference between operating profit conversion and hotel GOP conversion can largely be attributed to the variable rentals charged on the four Singapore hotels owned by CDLHT. These are determined by both the revenue and profit streams of the properties.

Currency movements increased reported currency profit in the third quarter and over the nine months.

Taxation

For the nine months to 30 September 2010, the Group recorded a tax expense of £28.3m (2009: £8.5m) excluding tax relating to joint ventures and associates. A tax charge of £1.5m (2009: £1.7m) relating to joint ventures and associates is included in the reported profit before tax.

Income tax expense for the relevant period is the expected income tax payable on taxable income for the period, calculated at the estimated average annual effective income tax rate.

The estimated annual effective rate applied to profit before income tax, excluding the Group's share of profits from joint ventures and associates, is 34.3% (2009: 19.4%). The higher effective rate is due primarily to the impact of a change in tax legislation in New Zealand, which has removed depreciation allowances, resulting in an increased deferred tax liability. The increase is partly offset by the impact of reduced tax rates applied to brought forward net deferred tax liabilities in Taiwan, New Zealand and the UK.

Earnings per share

Basic earnings per share was 20.8p (2009: 13.2p) and headline earnings per share increased to 21.2p (2009:13.2p). The table below reconciles basic earnings per share to headline earnings per share.

PERFORMANCE BY REGION

For comparability, the following regional review is based on calculations in constant currency whereby 30 September 2009 average room rate, RevPAR, revenue and headline operating profit have been translated at 2010 average exchange rates.

New York

All of the New York hotels delivered a stronger performance over the nine months to 30 September 2010 as a result of effective yield management that took advantage of improving market conditions. RevPAR increased by 11.8% to £122.64 (2009: £109.66) with a drive for higher occupancy in the first quarter switching to a focus on increasing room rate in the following two periods. Occupancy grew by 4.1 percentage points to 85.5% (2009: 81.4%), while rate increased by 6.5% to £143.44 (2009: £134.72). The Millennium Broadway and The Millenium Hilton delivered particularly strong performance.

The focus on rate growth continued in the third quarter, resulting in a 12.1% increase in rate to £154.11 (2009: £137.43). This more than offset a 2.7 percentage point fall in occupancy to 87.1% (2009: 89.8%). RevPAR growth for the quarter was more uniform across the three hotels, with The UN Millennium Plaza slightly stronger. The rate of RevPAR growth slowed in the third quarter compared to the second quarter from 16.6% to 8.8% over the same periods last year, because of stronger comparatives in the third quarter of 2009.

Regional US

Regional US RevPAR grew by 3.4% to £37.92 (2009: £36.66) over the nine months. This is the first time this year that the region has shown period-on-period RevPAR growth. The gains were driven by improved rate, up 2.5% at £65.26 (2009: £63.65) supplemented by a small increase in occupancy, up 0.5 percentage points to 58.1% (2009: 57.6%).

Performance in the region picked up substantially in the third quarter with a 10.0% increase in RevPAR to £44.14 (2009: £40.12). Rate increased by 8.8% over the quarter to £68.22 (2009: £62.68), while occupancy rose by 0.7 percentage points to 64.7% (2009: 64.0%). There was a pleasing performance from some of the Group's gateway city hotels outside New York, notably Boston and Los Angeles.

London

As in New York, all of the London hotels recorded RevPAR increases in the first nine months of the year. RevPAR grew by 6.1% to £87.39 (2009: £82.38), primarily as a result of higher room rates. Average rate was £104.53, up 7.7% on the same period in 2009 (£97.03). Occupancy fell by 1.3 percentage points to 83.6% (2009: 84.9%).

Third quarter RevPAR grew by 14.2% to £99.76 (2009: £87.36).This was a result of higher rate - up 8.8% at £109.63 (2009: £100.76) - and increased occupancy, up 4.3 percentage points to 91.0% (2009: 86.7%). The London result was strong because of buoyant market conditions together with the reduced proportion of aircrew business in some hotels, as discussed in earlier management statements.

Rest of Europe

Over the nine month period RevPAR grew by 3.0% in the rest of Europe region to £50.57 (2009: £49.08). During the third quarter, RevPAR increased by 10.6% to £51.42 (2009: £46.48).

Regional UK

Regional UK performance weakened over the nine months with RevPAR falling by 2.2% to £44.74 (2009: £45.74). The reduction was due to average room rate decreasing by 5.1% to £60.95 (2009: £64.24), offset by a 2.2 percentage point increase in occupancy to 73.4% (2009: 71.2%). Pressure on rate was most acute in hotels at Aberdeen, Gatwick, Manchester and Plymouth.

RevPAR declined by 0.8% in the third quarter to £46.90 (2009: £47.30). Rate fell by 3.7% to £59.67 (2009: £61.99) offset by a 2.3 percentage point increase in occupancy to 78.6% (2009: 76.3%).

France & Germany

RevPAR in France and Germany increased by 9.9% to £59.86 (2009: £54.47), with all four hotels contributing to growth. Occupancy rose by 3.9 percentage points to 63.5% (2009: 59.6%) while rate increased by 3.1% increase to £94.26 (2009: £91.40).

RevPAR growth was more pronounced in the third quarter, increasing 29.5% to £58.56 (2009: £45.22). Occupancy increased by 6.3 percentage points to 62.4% (2009: 56.1%) while rate grew 16.4% to £93.84 (2009: £80.60). Hannover was the biggest contributor with RevPAR growth of 93.8%. The cyclical nature of trade fairs, such as the week-long Internationale Automobil-Anstellung trade fair in September, has a significant impact on this hotel's performance.

Singapore

Singapore continued to be the Group's strongest performing region, with RevPAR growing 31.9% to £80.11 (2009: £60.72) over the nine months to 30 September. Occupancy increased by 11.3 percentage points to 86.1% (2009: 74.8%) while rate grew by 14.6% to £93.04 (2009: £81.17). The continuing growth in the number of visitors has offset an increase in supply of hotel rooms, including the new integrated resorts. This has driven strong RevPAR growth in all of the Group's Singapore hotels.

The newly constructed, 360-room loft-style Studio M hotel in Singapore, which officially opened on 17 June 2010, continued to trade above expectations in the third quarter. The hotel has been cash positive since the official opening date.

RevPAR growth in the third quarter was 29.0% with a 5.2 percentage point increase in occupancy to 88.4% (2009: 83.2%) and a 21.5% increase in rate to £93.94 (2009: £77.34). This was a slower rate of growth compared to the first half of the year, because of the stronger comparative quarter in 2009 as well as the impact of Studio M, which targets a lower average rate than the other Singapore hotels. With Studio M removed from the statistics, third quarter Singapore RevPAR growth was 31.8%.

Rest of Asia

In the Rest of Asia region, comprising hotels in Taiwan, Indonesia, Malaysia, Philippines and South Korea, RevPAR grew by 9.2% to £54.88 (2009: £50.26). Growth was driven by a 5.2 percentage point increase in occupancy to 72.7% (2009: 67.5%), complemented by a 1.4% increase in rate to £75.49 (2009: £74.46).

Third quarter RevPAR grew by 4.6% to £52.21 (2009: £49.91) with occupancy rising by 1.5 percentage points to 71.2% (2009: 69.7%) and rate increasing by 2.4% to £73.33 (2009: £71.60).

Australasia

New Zealand RevPAR rose by 5.9% to £33.36 (2009: £31.50). There was increased demand in the region with occupancy up 4.6 percentage points to 65.5% (2009: 60.9%). This improvement was offset by rate falling 1.5% to £50.93 (2009: £51.72). The rate decline affected most of the region's hotels. Across the three brands, Copthorne and Millennium showed growth while Kingsgate experienced a small decline.

In the third quarter, a 3.5 percentage point increase in occupancy to 60.4% (2009: 56.9%) drove the 6.2% increase in RevPAR to £29.63 (2009: £27.91). Room rates stood still in the region over the three months ending 30 September.

As announced early last month, the Copthorne Hotel Christchurch Durham Street, a leased hotel, has been closed as a result of damage sustained in the Canterbury earthquake. Repairs have commenced and the hotel is expected to open in early 2011. The hotel has insurance cover for business interruption and material damage and an initial progress payment has been received from the insurers.

Consolidated income statement (unaudited)

for the nine months ended 30 September 2010

 The financial results above all derive from continuing activities.

Consolidated statement of comprehensive income (unaudited)

for nine months ended 30 September 2010

Consolidated statement of financial position (unaudited)

as at 30 September 2010

Consolidated statement of cash flows (unaudited)

for the nine months ended 30 September 2010

Consolidated statement of changes in equity (unaudited)

for the nine months ended 30 September 2010

Notes to the consolidated financial statements (unaudited)

1. General information

Basis of preparation

The consolidated financial statements in this interim management statement for Millennium & Copthorne Hotels plc ('the Company') as at and for the nine months ended 30 September 2010 comprise the Company and its subsidiaries (together referred to as the 'Group') and the Group's interests in joint ventures and associates.

These primary statements and selected notes comprise the unaudited interim consolidated financial results of the Group for the nine months ended 30 September 2010 and 2009, together with the audited results for the year ended 31 December 2009. This nine months interim management statement does not comprise statutory accounts within the meaning of Section 435 of the Companies Act 2006.

The comparative figures as at 31 December 2009 have been extracted from the Group's statutory Annual Report and Accounts for that financial year but do not constitute those accounts. Those accounts have been reported on by the auditors and delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. The consolidated financial statements of the Group as at and for the financial year ended 31 December 2009 are available from the Company's website www.millenniumhotels.co.uk.

The results have been prepared applying the accounting policies and presentation that were used in the preparation of the Group's published consolidated financial statements for the year ended 31 December 2009.

The financial statements were approved by the Board of Directors on 3 November 2010.

The financial statements are presented in the Group's functional currency of sterling, rounded to the nearest hundred thousand.

Non-GAAP information

Headline operating profit, headline EBITDA, headline profit before tax, headline profit after tax and headline earnings per share.

Reconciliation of headline operating profit, headline EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) and headline profit before tax to the closest equivalent GAAP measure, profit before tax is provided in note 3 'Operating segment information'.

Reconciliation of headline profit after tax to the closest equivalent GAAP measure, profit after tax is provided in note 10 'Non-GAAP measures'.

Reconciliation of headline earnings per share to the closest equivalent GAAP measure, basic earnings per share is provided in note 8 'Earnings per share'.

Net debt and gearing percentage

An analysis of net debt and calculated gearing percentage is provided in note 10 'Non-GAAP measures'.

Like-for-like growth

The Group believes that like-for-like growth which is not intended to be a substitute for or superior to, reported growth, provides useful and necessary information to investors and interested parties for the following reasons:

·; it provides additional information on the underlying growth of the business without the effect of factors unrelated to the operating performance of the business; and

·; it is used by the Group for internal performance analysis.

2. Foreign currency translation

The Company publishes its Group financial statements in sterling. However, the majority of the Company's subsidiaries, joint ventures and associates report their revenue, costs, assets and liabilities in currencies other than sterling. The Company translates the revenue, costs, assets and liabilities of those subsidiaries, joint ventures and associates into sterling, and this translation of other currencies into sterling could materially affect the amount of these items in the Group financial statements, even if their value has not changed in their original currency. The following table sets out the sterling exchange rates of the other principal currencies of the Group.

Notes to the consolidated financial statements (unaudited)

3. Operating segment information

Disclosure of segmental information is principally presented in respect of the Group's geographical segments.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items principally comprise: interest-bearing loans, borrowings and net finance expense, taxation balances and corporate expenses.

Geographical segments

The hotel and operations are managed on a worldwide basis and operate in seven principal geographical areas:

·; New York

·; Regional US

·; London

·; Rest of Europe

·; Singapore

·; Rest of Asia

·; Australasia

The segments reported reflect the operating segment information included in the internal reports that the Chief Operating Decision Maker ('CODM'), which is the Board, regularly reviews.

The reportable segments are aligned with the structure of the Group's internal organisation which is based according to geographical region. Discrete financial information is reported to and is reviewed by the CODM on a geographical basis. Each operating segment has a Chief Operating Officer (COO) or equivalent who is directly accountable for the functioning of the segment and who maintains regular contact with the executive members of the CODM to discuss the operational and financial performance. The CODM makes decisions about allocation of resources to the regions managed by the COO.

1 Hotel Fixed charges include depreciation, amortisation of lease premium prepayments, property rent, taxes and insurance, operating lease rentals and management fees

2 Earnings before interest, tax, depreciation and amortisation

Notes to the consolidated financial statements (unaudited)

3. Operating segment information (continued)