Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out

a Brand neW era

VIEWS: 120 PAGES: 84

									                               Pan Pacific Hotels Group Limited
                                            Annual Report 2010




a Brand
neW era
UnLeasHinG OUr
Brand POtentiaL
A new look for “Pan Pacific”
and “PARkRoyAl”

G’day, aUstraLia!
Upping our ante Down Under

ridinG Waves in BaLi
Relax and rejuvenate
at our newest resort
                                                                                                                                                                                                                               1




                                                                 Our                                                                                                             taBle OF
                                                                 VisiOn
                                                                 Creating memorable
                                                                                                                                                                                 cOntents
                                                                 hotel experiences…

                                                                 Our
                                                                 PurPOse                                                                                                                    Snapshot
                                                                 Great Brands, Great
                                                                 Hotels, Great People,
                                                                 Great Relationships!

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


a nOte FrOm
                                                                   we collaborate,
                                                                   share, care about                                                                                                                Chairman’s
                                                                                                                                                                                                    Message
                                                                   each other and

Pan PaciFic                                                        communicate openly
                                                                   with everyone.

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

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




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

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




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




                 GROUP REVEnUE $’M                                 RETURn On sHAREHOLdERs’ EQUiTy $’M                       nET cAsH FLOW RETURns On AssETs                              sOURcEs OF FinAncE $’M

    350                                                                                                                                                                          1,200
                                                             900                                                 30%   30



                                                             800
                                                                                                                       25                                                        1,000
                                                                                                                 25%

                                                             700

                                                                                                                       20
    300                                                                                                                                                                           800
                                                             600                                                 20%


                                                                                                                       15
                                                             500
                                                                                                                 15%                                                              600

                                                             400                                                       10


    250                                                      300                                                 10%                                                              400
                                                                                                                        5

                                                             200
                                                                                                                 5%                                                               200
                                                                                                                       0
                                                             100


    200                                                        0                                                 0     -5                                                           0

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

          LEGEnd                                                    LEGEnd                                                  LEGEnd                                                       LEGEnd
                    hOteL               prOpertY                            return             aVeraGe                             sinGapOre             austraLia    VietnaM                   nOn-                   BOrrOwinGs
                    Ownership           inVestMents                         On eQuitY          sharehOLders’                       hOteLs                hOteLs       hOteLs                    COntrOLLinG
                                                                                               fund                                aVeraGe               aVeraGe      aVeraGe                   interests

                    hOteL               inVestMents                                                                                MYanMar               China        MaLaYsia                  interests Of
                    ManaGeMent                                                                                                     hOteLs                hOteLs       hOteLs                    the eQuitY
                    serViCes                                                                                                       aVeraGe               aVeraGe      aVeraGe                   hOLders Of
                                                                                                                                                                                                the COMpanY
                                                                                                                                   pan paCifiC
                                                                                                                                   hOteLs GrOup
                                                                                                                                   aVeraGe




pan paCifiC hOteLs GrOup LiMited                                                                                                                                                                                ANNUAL REPORT 2010
                                                                                 A BRAND
4                                                                                new era                                                                                                                5




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

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

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


pan paCifiC hOteLs GrOup LiMited                                                                                                                                                    ANNUAL REPORT 2010
                                                                                   A BRAND
6                                                                                  new era                                                                                                                    7




          July                                      september                                                      november                                     January 2011
UPPinG OUR AnTE                            nEW PERsPEcTiVEs On                                           G’dAy,                                    AWAKEninG in
dOWn UndER                                 PEOPLE mAnAGEmEnT                                             AUsTRALiA!                                WEsTERn AUsTRALiA
                                           Sharing global best practices with HR professionals, our                                                The opening of the 486-
                                           Senior Vice President for Human Capital & Development,                                                  room Pan Pacific Perth
                                           Mrs Melody King, spoke on “Harnessing Human Capital                                                     signaled the brand’s debut
                                           for Successful Regionalisation in Asia” at the Singapore                                                in Australia. Impressing
                                           Human Capital Summit.                                                                                   the market with signature
                                                                                                                                                   hospitality and elegant
                                                                                                                                                   accommodations, the hotel
                                                                                                                                                   a l s o f e a t u re s s p a c i o u s
                                                    October                                                                                        function rooms, indulgent
                                                                                                                                                   dining options and great
                                                                                                                                                   views of the Swan River.
                                           sHARinG sTRATEGic              UnLEAsHinG OUR BRAnd

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

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




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


pan paCifiC hOteLs GrOup LiMited                                                                                                                                                            ANNUAL REPORT 2010
                                                                                    A BRAND
8                                                                                   new era                                                                                                                  9




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

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


pan paCifiC hOteLs GrOup LiMited                                                                                                                                                         ANNUAL REPORT 2010
                                   A BRAND
10                                 new era                                      11




                                                   OUR
                                             LEAdERsHiP     in THis sEcTiOn
                                                           Board of directors
                                                   Key Management executives
                                                             Group structure




pan paCifiC hOteLs GrOup LiMited                               ANNUAL REPORT 2010
                                                                                   A BRAND
12                                                                                 new era                                                                                                                       13




                              1                                  2                                   3                                    4                                     5



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


pan paCifiC hOteLs GrOup LiMited                                                                                                                                                              ANNUAL REPORT 2010
                                                                                    A BRAND
14                                                                                  new era                                                                                                              15




                               6                                  7                                                                    8                               9                                  10




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

pan paCifiC hOteLs GrOup LiMited                                                                                                                                                      ANNUAL REPORT 2010
                                                       A BRAND
16                                                     new era                                                                                                                  17




     KEy mAnAGEmEnT
                                                                 1.   mR GWEE LiAn KHEnG                                         7.   mR dEAn scHREiBER
                                                                 2.   ms WEE WEi LinG                                                 Mr Schreiber was appointed PPHG’s Senior
                                                                 3.   mR AmEdEO PATRicK imBARdELLi                                    Vice President, Operations in 2010. His

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

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


pan paCifiC hOteLs GrOup LiMited                                                                                                                             ANNUAL REPORT 2010
                                                                                 A BRAND
18                                                                               new era                                                                                                                           19



                                                                                                      100%


GROUP
                                                                                                                   suzhOu wuGOnG
                                                 100%      hOteL inVestMents (suzhOu) pte. Ltd.
                                                                                                                  hOteL CO., Ltd [prC]




sTRUcTURE
As at 2 March 2011
                                                 100%       hOteL inVestMents (hanOi) pte. Ltd.
                                                                                                      75%
                                                                                                                westLaKe internatiOnaL
                                                                                                                    COMpanY [Vn]


                                                                                                      95%            YanGOn hOteL
                                                 100%            YipL inVestMent pte. Ltd.
                                                                                                                      LiMited [Mn]


                                                                  hOteL pLaza prOpertY
                                                 100%
                                                                   (sinGapOre) pte. Ltd.



                                                 100%          new parK hOteL (1989) pte Ltd



                                                 100%      parKrOYaL hOteLs & resOrts pte. Ltd.

                                                                                                                                                                                    100%
                                                                                                                                             100%      pan paCifiC hOteLs and               pan paCifiC hOteLs and
                                                 100%    parKrOYaL serViCed residenCes pte. Ltd.                                                     resOrts aMeriCa, inC. [usa]           resOrts seattLe, LLC [usa]

                                                                                                                pan paCifiC hOteLs and       99%       pt pan paCifiC hOteLs &         1%
                                                                                                      100%
                                                                                                                   resOrts pte. Ltd.                   resOrts indOnesia [in]
                                                 100%       parKrOYaL internatiOnaL pte. Ltd.
                                                                                                                pan paCifiC MarKetinG        100%     pan paCifiC hOteLs and
                                                                                                      100%
                                                                                                                  serViCes pte. Ltd.                 resOrts Japan CO., Ltd [Jp]

                                                 100%    pan paCifiC hOspitaLitY hOLdinGs pte. Ltd.              pan paCifiC teChniCaL       100%    pan paCifiC (shanGhai) hOteL
                                                                                                      100%
                                                                                                                   serViCes pte. Ltd.                 ManaGeMent CO., Ltd. [prC]

                                                                                                      100%           pan paCifiC                          pphr (thaiLand)
                                                 100%       pan paCifiC internatiOnaL pte. Ltd.                  hOspitaLitY pte. Ltd.                  COMpanY LiMited [th]
                                                                                                                                             48.9%



                                                 100%       united LifestYLe hOLdinGs pte Ltd

          pan paCifiC hOteLs GrOup LiMited

                                                 100%             st GreGOrY spa pte Ltd

                                                                                                                             33.3%

                                                 100%          dOu hua restaurants pte Ltd                                                   100%
                                                                                                                                                     Grand eLite sdn. Bhd. [MY]
au         Incorporated in Australia
BVi        Incorporated in The British                                                                66.7%
           Virgin Islands                                                                                          president hOteL                      Grand eLite (penanG)
                                                 100%    hpL prOperties (MaLaYsia) sdn. Bhd. [MY]
MY         Incorporated in Malaysia                                                                                sdn Berhad [MY]           100%          sdn. Bhd. [MY]
Mn         Incorporated in Myanmar
in         Incorporated in Indonesia
Jp         Incorporated in Japan                 100%      Garden pLaza COMpanY LiMited [Vn]
prC        Incorporated in The People’s
           Republic of China
th         Incorporated in Thailand
usa        Incorporated in United States                      piLKOn deVeLOpMent COMpanY              65%           pLaza hOteL
                                                 39.4%
           of America                                                 LiMited [BVi]                              COMpanY LiMited [Vn]
Vn         Incorporated in Vietnam

                                                              suCCess Venture inVestMents             100%      suCCess Venture (wa)
                                                 100%
PRinciPAL AcTiViTiEs                                               (wa) LiMited [BVi]                              unit trust [au]

      Investment holding and others
                                                                                                                 suCCess Venture ptY
      Hotelier                                   100%          suCCess CitY ptY LiMited [au]          100%           LiMited [au]
      Hotel management services
                                                                                                              suCCess Venture (darLinG
      Spa, lifestyle and restaurant operations                                                        100%
                                                              suCCess Venture inVestMents                     harBOur) unit trust [au]
                                                 100%
      Associated companies                                        (austraLia) Ltd [BVi]
                                                                                                      100%         suCCess Venture
                                                                                                              (parraMatta) unit trust [au]




pan paCifiC hOteLs GrOup LiMited                                                                                                                                                               ANNUAL REPORT 2010
                                   A BRAND
20                                 new era                   21




OUR
BRAnds
in THis sEcTiOn
embracing a Brand new era
pan pacific hotels and resorts
parKrOYaL hotels & resorts
Lifestyle Brands




pan paCifiC hOteLs GrOup LiMited             ANNUAL REPORT 2010
                                                                     A BRAND
22                                                                   new era                                                                                                             23




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

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




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




                                                                      01                                                                                                                  02




pan paCifiC hOteLs GrOup LiMited                                                                                                                                          ANNUAL REPORT 2010
                                   A BRAND
24                                 new era                                                                                 25




     19hotels, resorts
       and serviced suites




              11
               countries




20
OVER




industry honours and
top awards in 2010/2011

             OVER


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




pan paCifiC hOteLs GrOup LiMited                                                                      ANNUAL REPORT 2010
                                                                        A BRAND
26                                                                      new era                                                                                                                        27




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




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


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

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

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

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


pan paCifiC hOteLs GrOup LiMited                                                                                                                                                ANNUAL REPORT 2010
                                     A BRAND
28                                   new era                                                                                      29




5
cLOsE TO




               15
decades
of trusted
hospitality

               hotels, resorts
               and serviced suites




     10
      destinations across
      Asia Pacific



2010
PARKROyAL comes
home to Australia                              A Trusted Local companion
                                               The “PARKROYAL” portfolio comprises      Suites Kuala Lumpur. It also marked
                                               15 hotels, resorts and serviced suites   its homecoming to Australia, a market
                                               in gateway cities across Australia,      where the brand was conceived, with
                                               China, Malaysia, Myanmar, Singapore      the launch of PARKROYAL Darling
                                               and Vietnam, including those under       Harbour, Sydney and PARKROYAL
                                               development.                             Parramatta.

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




pan paCifiC hOteLs GrOup LiMited                                                                           ANNUAL REPORT 2010
                                                                     A BRAND
30                                                                   new era                                                                                                             31




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




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

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


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

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


pan paCifiC hOteLs GrOup LiMited                                                                                                                                    ANNUAL REPORT 2010
                                                           A BRAND
32                                                         new era                                                                                                            33




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

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


pan paCifiC hOteLs GrOup LiMited                                                                                                                           ANNUAL REPORT 2010
                                   A BRAND
34                                 new era                  35




OUR
HOTELs
in THis sEcTiOn
Operations Overview
- portfolio summary
- southeast asia
- people’s republic of China
- australia
- north america
Our awards 2010
Our pipeline projects
human Capital and development
sustainability and
Corporate social responsibility




pan paCifiC hOteLs GrOup LiMited             ANNUAL REPORT 2010
                                                                                       A BRAND
36                                                                                     new era                                                                                                                    37




OPERATiOns
                                                                                                                                                   9    11   13    12




OVERViEW



                                                                  18                                                                                                                                     8

                                                                  17                                                                                                                                     7

                                                                  16                                                                                                                                     2
Growing from strength to strength
                                                                                                                                                                                                         1
2010 presented Pan Pacific Hotels Group       Harbour, Sydney, PARKROYAL Parramatta
with opportunities to strengthen its          and in January 2011, Pan Pacific Perth.                                                                                                                   14

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

Cementing its international presence,         The Group currently manages and/
the Group made seven brand-defining           or owns over 30 hotels, resorts and                      1   sinGAPORE                          7     mAniLA                  15    sydnEy
additions to its “Pan Pacific ” and           serviced suites in 12 countries. Including
                                                                                                      the plaza                               pan pacific Manila            parKrOYaL darling harbour, sydney
“PARKROYAL” portfolios. These included:       pipeline developments, the “Pan Pacific”                parKrOYaL on Beach road                                               parKrOYaL parramatta
Pan Pacific Suzhou, Pan Pacific Serviced      portfolio comprises 19 hotels, resorts                  parKrOYaL on Kitchener road
                                                                                                                                               8    HO cHi minH ciTy
Suites Bangkok, Pan Pacific Nirwana Bali      and serviced suites in Asia, Oceania and                parKrOYaL serviced suites singapore                                   16    sEATTLE
                                                                                                      pan pacific singapore                   parKrOYaL saigon
Resort, PARKROYAL Serviced Suites             North America, while “PARKROYAL” is                     pan pacific Orchard                     sofitel saigon plaza          pan pacific seattle
Kuala Lumpur, PARKROYAL Darling               represented by 15 hotels, resorts and                   pan pacific serviced suites singapore
                                              serviced suites in Asia Pacific.                                                                 9    HAnOi                   17    VAncOUVER
                                                                                                       2   KUALA LUmPUR
                                                                                                                                              sofitel plaza hanoi           pan pacific Vancouver
                                                                                                      parKrOYaL Kuala Lumpur
                                                                                                      pan pacific Kuala Lumpur
                                             EXISTING                        CONFIRMED PIPELINE                                               10    yAnGOn                  18    WHisTLER
                                                                                                        international airport
                                   NO. OF HOTELS   NO. OF ROOMS         NO. OF HOTELS NO. OF ROOMS    parKrOYaL serviced suites               parKrOYaL Yangon              pan pacific whistler Mountainside
                                                                                                        Kuala Lumpur                                                        pan pacific whistler Village Centre
BY BRANDS
Pan Pacific                             16                5,111               3                964     3   PEnAnG
                                                                                                                                              11    dHAKA

PARKROYAL                               10                2,990               5               1,348   parKrOYaL penang resort
                                                                                                                                              pan pacific sonargaon dhaka

Others                                   2                 595                –                 –                                             12    sUzHOU
                                                                                                      4    BAnGKOK
                                                                                                                                                                            LEGEnd
TOTAL                                   28*               8,696               8               2,312                                           pan pacific suzhou
                                                                                                      pan pacific serviced suites Bangkok
                                                                                                                                                                            investment property Owned
                                                                                                                                                                            by the Group
BY OwNERSHIP TYPE                                                                                     5    BALi
                                                                                                                                              13    xiAmEn
                                                                                                                                                                            properties Owned and Managed
Owned                                   13                4,265               3                823                                            pan pacific xiamen
                                                                                                                                                                            by the Group
                                                                                                      pan pacific nirwana Bali resort
Managed                                 15                4,431               5               1,489                                                                         properties Owned by the Group and
                                                                                                                                              14   PERTH                    Managed by third parties
TOTAL                                   28                8,696               8               2,312   6    JAKARTA
                                                                                                                                              pan pacific perth             properties Owned by third parties and
                                                                                                      sari pan pacific Jakarta                                              Managed by the Group
*
    As at 31/1/2011



pan paCifiC hOteLs GrOup LiMited                                                                                                                                                        ANNUAL REPORT 2010
                                                                                         A BRAND
38                                                                                       new era                                                                                                             39




PORTFOLiO
sUmmARy
investment Properties Owned by The Group
The Plaza                                                                                                PARKROyAL Penang Resort                        completed                  1990
Retained interests in a 32-storey tower block comprising restaurants, hotel function rooms, shops,       A 309-room 8-storey beachfront resort hotel at Purchased                  1999
                                                                                                                                                        Tenure of Land             Freehold
offices and serviced suites, two adjacent commercial buildings and a multi-storey carpark block at       Batu Ferringhi Beach, Penang, Malaysia
                                                                                                                                                             Approximate Gross
7500 Beach Road, Singapore                                                                                                                                   Floor Area (sqm)      31,502
                                                                                                         s$60.0m
                                                                                                                                                             car Park Facilities   147
shops & Offices                                      PARKROyAL serviced suites singapore                 Present Capital Value
                                                     90 serviced suites and
                                                     1 owner-occupied apartment                          PARKROyAL yangon                                    completed             1997
                                                                                                         An 8-storey V-shaped tower comprising 267           Purchased             2001
completed             1974 & 1979                    completed             1979                                                                              Tenure of Land        30-Year Lease from 1997
                                                                                                         rooms at the corner of Alan Pya Phaya Road and
Tenure of Land        99-Year Lease from 1968        Tenure of Land        99-Year Lease from 1968                                                           Approximate Gross
Approximate net                                      Approximate net
                                                                                                         Yaw Min Gyi Road, Yangon, Union of Myanmar          Floor Area (sqm)      17,700
Lettable Area (sqm)   18,597                         Lettable Area (sqm)   6,125 & 165 respectively                                                          car Park Facilities   140
                                                                                                         s$13.0m
car Park Facilities   385 (portion of multi-storey
                      carpark under construction)                                                        Present Capital Value

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

PARKROyAL on Beach Road                     completed                      1971 & 1979
A 7-storey hotel building with 343 rooms at Tenure of Land                 99-Year Lease from 1968       s$36.3m
                                            Approximate Gross
7500C Beach Road, Singapore                                                                              Present Capital Value
                                                     Floor Area (sqm)      19,900
                                                     car Park Facilities   41
s$122.0m                                                                                                 Pan Pacific suzhou                                  completed             1998
Present Capital Value                                                                                    A hotel built in the Ming Dynasty style, with 481   Purchased             2001
                                                                                                                                                             Tenure of Land        50-Year Lease from 1994
                                                                                                         rooms accommodated within a low-rise cluster        Approximate Gross
PARKROyAL on Kitchener Road                          completed             1976 & 1981                   at Xinshi Road, Suzhou, Jiangsu, The People’s       Floor Area (sqm)      63,232
Comprising a 5-storey podium with a basement         Purchased             1989                          Republic of China                                   car Park Facilities   100
                                                     Tenure of Land        Freehold
and a 16-storey Y-shaped tower with 534 rooms,
                                                     Approximate Gross
at 181 Kitchener Road, Singapore                     Floor Area (sqm)      37,811                        s$84.5m
                                                     car Park Facilities   273                           Present Capital Value
s$210.0m
Present Capital Value
                                                                                                         PARKROyAL darling Harbour, sydney          completed                      1991
                                                                                                         A 13-level hotel with 345 rooms at 150 Day Purchased                      1993
PARKROyAL Kuala Lumpur and President House                                                                                                          Tenure of Land                 Freehold
                                                                                                         Street, Sydney, Australia                  Approximate Gross
Comprising a 23-storey tower with a 6-storey podium and an annexed 8-storey car park building,
the 426-room hotel occupies the tower and part of the podium at Jalan Sultan Ismail, Kuala Lumpur,                                                           Floor Area (sqm)      24,126
                                                                                                         s$104.6m                                            car Park Facilities   53
Malaysia                                                                                                 Present Capital Value
Hotel and President House                            car Park Annex

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

s$99.1m
Present Capital Value




pan paCifiC hOteLs GrOup LiMited                                                                                                                                                              ANNUAL REPORT 2010
                                                                                      A BRAND
40                                                                                    new era                                                                                                     41




Hotels Owned and managed by The Group                                                                Properties Owned by Third Parties and
PARKROyAL Parramatta
A 13-level hotel with 196 rooms at 30 Phillip
                                                     completed
                                                     Purchased
                                                                           1986
                                                                           1994                      managed by The Group
                                                     Tenure of Land        Freehold
Street, Parramatta, New South Wales, Australia                                                                                                                                              nO. OF
                                                     Approximate Gross
                                                     Floor Area (sqm)      16,694                    PROPERTy                                   AddREss                                     ROOms
s$39.2m
                                                     car Park Facilities   176
Present Capital Value
                                                                                                     sinGAPORE
                                                                                                     Pan Pacific Singapore                      7 Raffles Boulevard, Marina Square,             778
Pan Pacific Perth                                    completed             1973
                                                     Purchased             1995                                                                 Singapore 039595
Comprising 486 rooms in a 23-storey hotel tower
                                                     Tenure of Land        Freehold                  Pan Pacific Orchard                        10 Claymore Road, Singapore 229540              205
and a 4-level extension wing, at the corner of
                                                     Approximate Gross
Adelaide Terrace and Hill Street, Perth, Australia   Floor Area (sqm)      31,513                    Pan Pacific Serviced Suites Singapore      96 Somerset Road, Singapore 238163               126
                                                     car Park Facilities   220
s$196.1m
                                                                                                     mALAysiA
Present Capital Value
                                                                                                     Pan Pacific Kuala Lumpur                   Jalan CTA 4B, 64000 KLIA, Sepang                441
                                                                                                     International Airport                      Selangor Darul Ehsan, Malaysia
Hotel Owned by the Group and managed by Third Parties                                                PARKROYAL Serviced Suites                  No. 1, Jalan Nagasari, Off Jalan Raja           287
sofitel Plaza Hanoi                                  completed             1998                      Kuala Lumpur                               Chulan, Kuala Lumpur 50200, Malaysia
A 20-storey hotel with 309 rooms and 36              Purchased             2001                      (Opened in October 2010)
                                                     Tenure of Land        48-Year Lease from 1993
serviced apartments at Thanh Nien Road, Hanoi,
                                                     Approximate Gross
Vietnam                                              Floor Area (sqm)      39,250                    THAiLAnd
                                                     car Park Facilities   40                        Pan Pacific Serviced Suites Bangkok        88/333 Sukhumvit Soi 55, North                  148
s$93.5m                                                                                              (Opened in March 2010)                     Klongton, Wattana District, Bangkok
Present Capital Value                                                                                                                           10110, Thailand

Properties Under construction                                                                        indOnEsiA
                                                                                                     Sari Pan Pacific Jakarta                   Jalan M.H.Thamrin 6, P.O. Box 3138,            400
Upper Pickering street                               Expected                                                                                   Jakarta 10340, Indonesia
A development comprising a 363-room hotel            completion            Mid-2012                  Pan Pacific Nirwana Bali Resort            Jalan Raya Tanah Lot, P.O. Box 158              278
                                                     Tenure of Land        99-Year Lease from 2008
and approximately 7,300 square metres of                                                             (Opened in April 2010)                     Tabanan 82171, Bali- Indonesia
                                                     site Area (sqm)       6,959
office space                                         Gross Floor
                                                     Area (sqm)            29,812                    THE PHiLiPPinEs
                                                                                                     Pan Pacific Manila                         M. Adriatico Cor. Gen Malvar Streets,           236
Beach Road                                           Expected                                                                                   Malate, Manila City 1004, Philippines
Redevelopment of existing Furniture Mall             completion            4Q 2012
                                                     Tenure of Land        99-Year Lease from 1968
located at The Plaza into a 184-unit serviced                                                        BAnGLAdEsH
                                                     Gross Floor
suites and approximately 1,900 square metres         Area (sqm)            17,844                    Pan Pacific Sonargaon Dhaka                107 Kazi Nazrul Islam Avenue. G.P.O. Box        277
constructed into a column-free ballroom and                                                                                                     3595, Dhaka 1215, Bangladesh
meeting rooms
                                                                                                     cHinA
                                                                                                     Pan Pacific Xiamen                         19 Hubin Bei Road, Xiamen 361012,               387
                                                                                                                                                Fujian, China

                                                                                                     nORTH AmERicA
                                                                                                     Pan Pacific Seattle, USA                    2125 Terry Ave, Seattle. WA 98121, USA        160
                                                                                                     Pan Pacific Vancouver, Canada               Suite 300 - 999 Canada Place,                 504
                                                                                                                                                 Vancouver, BC, V6C 3B5, Canada
                                                                                                     Pan Pacific Whistler Mountainside, Canada 4320 Sundial Crescent, Whistler, BC,              121
                                                                                                                                                 V0N 1B4, Canada
                                                                                                     Pan Pacific Whistler Village Centre, Canada 4299 Blackcomb Way, Whistler,                   83
                                                                                                                                                 BC, V0N 1B4, Canada




pan paCifiC hOteLs GrOup LiMited                                                                                                                                                  ANNUAL REPORT 2010
                                                                                    A BRAND
42                                                                                  new era                                                                                                                                                 43




                                                                                                          increases of 28%, in line with the hotels’ overall                         hotels still managed good RevPAR growth of

 sOUTHEAsT                                                                                                RevPAR growth of 26%.                                                      9%. Kuala Lumpur hotels also saw good RevPAR
                                                                                                                                                                                     growth of 12% while Penang RevPAR declined


 AsiA
                                                                                                          Other properties in Jakarta and Manila saw                                 by 3% with the re-opening of a fully renovated
                                                                                                          marginal improvements in RevPAR. Despite ARR                               competitor hotel.
                                                                                                          continuing to fall below 2009 levels, Vietnam


                                                                                                                        OccUPAncy                                           REVPAR (s$)                            REVEnUE (s$’m)

                                                                                                          100%                                                 150                                       250


                                                                                                           90%                                                 140                                       220


                                                                                                           80%                                                 130                                       190


                                                                                                           70%                                                 120                                       160


                                                                                                           60%                                                 110                                       130


                                                                                                           50%                                                 100                                       100


                                                                                                           40%                                                 90                                        70
Tourism Landscape
The 13% recovery in visitor arrivals by the Asia     Other countries in the region also enjoyed good       30%                                                 80                                        40
region was the fastest and strongest compared        visitor growth with Myanmar increasing 28%
to other regions around the world. Southeast         year on year, Indonesia seeing 11% growth to 7.0       0%                                                  0                                         0
Asia saw strong growth of 12% with 69.6 million      million, Philippines, 3.5 million or 17% increase,          2006     2007     2008      2009      2010          2006   2007   2008   2009    2010         2006   2007   2008   2009    2010
international visitors in 2010. Industry occupancy   and Thailand, 15.8 million or 12% increase.
for Southeast Asia grew by 5 percentage points                                                                   Owned and ManaGed                                   Owned and ManaGed                         Owned and ManaGed

to 66% while average room rate (ARR) increased       Indonesia hotel occupancy grew by 4 percentage              Owned and ManaGed BY third partY                    Owned and ManaGed BY third partY          Owned and ManaGed BY third partY

by 15% to US$125 and revenue per available           points with Jakarta occupancy growing by 5                  ManaGed                                             ManaGed                                   ManaGed

room (RevPAR) increased by 24% to US$82.             percentage points and Bali by 4 percentage
                                                     points. However, ARR was flat against 2009.
                                                                                                          sinGAPORE
Visitor arrivals to Singapore was at 11.6 million,
                                                                                                          PARKROyAL sERVicEd                                   PARKROyAL On                              PARKROyAL On
an increase of 2.0 million or 20% against            Hotel occupancy in Philippines grew by 5
                                                                                                          sUiTEs sinGAPORE                                     BEAcH ROAd                                KiTcHEnER ROAd
2009. Overall hotel occupancy increased by 10        percentage points with marginal ARR increase of
                                                                                                          Functionality meets                                  This 343-room hotel offers                Exuding stylish comfort, this
percentage points and ARR increased by 12%.          2%. Bangladesh saw good occupancy increase by
                                                                                                          contemporary style in 90 newly                       spacious accommodations                   elegant 534-room hotel at
Overall, RevPAR increased by 26% versus 2009.        12 percentage points and ARR increasing by 6%.
                                                                                                          upgraded apartments. Further                         in an ethnic enclave fringed              Little India is situated in a
                                                     Overall RevPAR increased by 27% over 2009.
                                                                                                          to the renovations of 40 units                       by bustling shopping, dining,             neighbourhood brimming with
Malaysia saw a total of 24.6 million visitors or a
                                                                                                          in 2009, the remaining 50 units                      b u s i n e s s a n d c o nve n t i o n   colours, culture and vibrancy.
4% increase in visitor arrivals compared to 2009,    Bangkok, Thailand was the only city which
                                                                                                          were completed in February                           facilities, conveniently located
above the Ministry of Tourism’s target of 24.0       ended the year with occupancy decline (by 3%
                                                                                                          2010. The refurbished suites                         within the city’s central
million visitor arrivals in 2010. Hotel occupancy    to 53%) and a flat RevPAR in 2010.
                                                                                                          offer a spacious living area                         business district.
in Malaysia increased by 4 percentage points
                                                                                                          with panoramic views of the
with Kuala Lumpur and Penang enjoying 4 and 5        Group Performance
                                                                                                          sea or city skyline, a stylish
percentage points increase respectively. ARR grew    The Group has operations in eight countries in
                                                                                                          home away from home just
by 6% in Malaysia with Kuala Lumpur increasing by    the region including cities such as Bali, Bangkok,
                                                                                                          minutes away from the Central
4% and Penang improving by 9% over 2009.             Dhaka, Hanoi, Ho Chi Minh, Jakarta, Kuala Lumpur,
                                                                                                          Business District.
                                                     Manila, Penang, Singapore and Yangon.
The total number of international arrivals to
Vietnam in 2010 was at 5.0 million, up by 34%
over the 3.8 million arrivals achieved in 2009
                                                     Revenue improved by 22% to $426 million during
                                                     the year, driven by improvements in RevPAR.
                                                                                                          AVERAGE
                                                                                                          OccUPAncy:               +20%          points
                                                                                                                                                               AVERAGE
                                                                                                                                                               OccUPAncy:             +13%   points
                                                                                                                                                                                                         AVERAGE
                                                                                                                                                                                                         OccUPAncy:            +10%    points
and above the original goal of 4.2 million.          Occupancy grew by 4 percentage points to 73%
International visitor arrivals to Hanoi and Ho Chi
Minh increased by 20% and 19% respectively.
Vietnam hotel occupancy improved by 10
                                                     and ARR improved by 5%.

                                                     Myanmar and Bangladesh had the best
                                                                                                          AVERAGE
                                                                                                          ROOm RATE:                +21%                       AVERAGE
                                                                                                                                                               ROOm RATE:           +10%                 AVERAGE
                                                                                                                                                                                                         ROOm RATE:           +22%
percentage points although ARR remained flat
against 2009. Ho Chi Minh experienced a similar
                                                     improvement in performance with RevPAR
                                                     improving by more than 40% compared against
                                                                                                          REVEnUE PER
                                                                                                          AVAiLABLE
                                                                                                          ROOm:
                                                                                                                                    +56%                       REVEnUE PER
                                                                                                                                                               AVAiLABLE
                                                                                                                                                               ROOm:
                                                                                                                                                                                    +29%                 REVEnUE PER
                                                                                                                                                                                                         AVAiLABLE
                                                                                                                                                                                                         ROOm:
                                                                                                                                                                                                                              +38%
trend with occupancy growth of 11 percentage         2009. Singapore hotels and serviced suites
points while ARR declined by 5%.                     also saw strong growth with average RevPAR           * All figures are compared year on year over 2009.




pan paCifiC hOteLs GrOup LiMited                                                                                                                                                                                      ANNUAL REPORT 2010
                                                                                                      A BRAND
44                                                                                                    new era                                                                                                                                                45




sOUTHEAsT AsiA
                                                                                                                                                                      Tourism Landscape
                                                                                                                                                                      Arrivals into China in 2010 increased by 6% compared to the same
                                                                                                                                                                      period in 2009. Overall China’s hotel occupancy improved by 14
                                                                                                                                                                      percentage points with ARR increasing by 13%. In the East China
                                                                                                                                                                      region which includes Fujian and Jiangsu, occupancy and ARR

                                                                                                                            PEOPLE’s
                                                                                                                                                                      also improved but at a lower rate of 7 percentage points and 4%
mALAysiA                                                                                myAnmAR                                                                       respectively.
PARKROyAL                                            PARKROyAL                          PARKROyAL
KUALA LUmPUR
Discover an authentic mix of
                                                     PEnAnG REsORT
                                                     An idyllic 309-room resort
                                                                                        yAnGOn
                                                                                        Old-world charm and stately         REPUBLic                                  Group Performance
                                                                                                                                                                      During the year, occupancy decreased by 3 percentage points
tradition and modernity at this
426-room hotel in the heart of
Kuala Lumpur’s trendy Golden
                                                     hotel overlooking lush greenery
                                                     and the Batu Ferringhi beach.
                                                     Occupancy and room rates were
                                                                                        elegance feature at this 267-
                                                                                        room property surrounded by
                                                                                        Yangon’s cultural landmarks
                                                                                                                            OF cHinA                                  while ARR declined by average of 9%. The weak performance in
                                                                                                                                                                      both occupancy and ARR was due to increased competition.

Triangle, the capital’s main                         marginally affected by the re-     in the heart of the city. Pan                                                                                           PAn PAciFic sUzHOU
commercial and retail district.                      opening of a competitor hotel      Pacific Hotels Group holds a                                                                                            This 481-room hotel is set in
                                                     previously under renovation.       95% interest in the hotel.                                                                                              magnificent Suzhou gardens
                                                                                                                                                                                                                and intricate landscapes, fusing
AVERAGE
OccUPAncy:
                           remained flat
                           against 2009
                                                     AVERAGE
                                                     OccUPAncy:           -3% points
                                                                                        AVERAGE
                                                                                        OccUPAncy:         +12%  points
                                                                                                                                                                                                                traditional architecture with
                                                                                                                                                                                                                modern luxuries.

AVERAGE
ROOm RATE:                  +17%                     AVERAGE
                                                     ROOm RATE:           +1%           AVERAGE
                                                                                        ROOm RATE:        +17%
                                                                                                                                                                                                                AVERAGE
                                                                                                                                                                                                                OccUPAncy:                       -9%   points
REVEnUE PER
AVAiLABLE
ROOm:
                            +17%                     REVEnUE PER
                                                     AVAiLABLE            -3%           REVEnUE PER
                                                                                        AVAiLABLE         +41%                                                                                                  AVERAGE
                                                                                                                                                                                                                ROOm RATE:                   -9%
                                                     ROOm:                              ROOm:



ViETnAm
                                                                                                                                                                                                                REVEnUE PER
                                                                                                                                                                                                                AVAiLABLE
                                                                                                                                                                                                                ROOm:
                                                                                                                                                                                                                                            -25%
PARKROyAL sAiGOn                                     sOFiTEL PLAzA HAnOi                sOFiTEL sAiGOn PLAzA
This 193-room hotel, offers easy                     Pan Pacific Hotels Group holds     And cEnTRAL PLAzA
access to Ho Chi Minh City,                          a 75% interest in this luxurious   With 287 rooms and 11 spacious
and is minutes from the Tan                          hotel. It features 309 well-       suites, this hotel in which Pan
Son Nhat International Airport                       appointed rooms showcasing         Pacific Hotels Group has a
and Exhibition and Convention                        scenic views of the West Lake      26% interest, is enlivened by
Centre. Renovation for the                           and Red River in Hanoi, and        breathtaking city views and                                                                                             * All figures are compared year on year over 2009.
hotel will be carried out in 2011,                   convenient access to the city.     a historic address on LeDuan
including refurbishments to the                                                         Boulevard, the main commercial                   OccUPAncy                                 REVPAR (s$)                             REVEnUE (s$’m)
guestrooms, expansion of the                                                            and diplomatic precinct. As part
event spaces and enhancements                                                           of its repositioning to the new     75%                                       160                                       40
to guest facilities.                                                                    Sofitel brand standard, the hotel
                                                                                        renovated 18 club guestrooms        70%                                       140                                       35

                                                                                        and 10 suites and will be
                                                                                                                            65%                                       120                                       30
                                                                                        refurbishing its bar in 2011.


                            +10%                                       +11%                                 +9%
                                                                                                                            60%                                       100                                       25
AVERAGE                                              AVERAGE                            AVERAGE
OccUPAncy:                                           OccUPAncy:                         OccUPAncy:
                                                                                                                            55%                                       80                                        20
                                       points                                 points                             points
                                                                                                                            50%                                       60                                        15
AVERAGE
ROOm RATE:                   -2%                     AVERAGE
                                                     ROOm RATE:         -4%             AVERAGE
                                                                                        ROOm RATE:          -12%            45%                                       40                                        10


REVEnUE PER
                            +14%                     REVEnUE PER
                                                                       +13%             REVEnUE PER
                                                                                                            +2%
                                                                                                                            40%                                       20                                         5
AVAiLABLE                                            AVAiLABLE                          AVAiLABLE
ROOm:                                                ROOm:                              ROOm:                               0%                                         0                                         0

                                                                                                                                  2006   2007   2008   2009    2010         2006   2007   2008   2009    2010         2006      2007     2008      2009     2010
* All figures are compared year on year over 2009.
                                                                                                                                  Owned and ManaGed                         Owned and ManaGed                        Owned and ManaGed
                                                                                                                                  Owned and ManaGed BY third partY          Owned and ManaGed BY third partY         Owned and ManaGed BY third partY
                                                                                                                                  ManaGed                                   ManaGed                                  ManaGed




pan paCifiC hOteLs GrOup LiMited                                                                                                                                                                                                ANNUAL REPORT 2010
                                                   A BRAND
46                                                 new era                                                                                                                                       47




AUsTRALiA                                                    100%
                                                                           OccUPAncy

                                                                                                                  220
                                                                                                                               REVPAR (s$)

                                                                                                                                                              120
                                                                                                                                                                        REVEnUE (s$’m)



                                                             95%                                                  210                                         110


                                                             90%                                                  200                                         100


                                                             85%                                                  190                                         90


                                                             80%                                                  180                                         80


                                                             75%                                                  170                                         70


                                                             70%                                                  160                                         60


                                                             65%                                                  150                                         50


                                                               0%                                                   0                                          0

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

                                                                    Owned and ManaGed BY third partY                    Owned and ManaGed BY third partY            Owned and ManaGed BY third partY




                                                             PARKROyAL dARLinG                                    PARKROyAL PARRAmATTA                        PAn PAciFic PERTH
Tourism Landscape
                                                             HARBOUR, sydnEy                                      (FORMERLY CROWNE                            (FORMERLY SHERATON
The Oceania region saw international tourist                                                                      PLAZA PARRAMATTA)                           PERTH HOTEL)
                                                             (FORMERLY CROWNE PLAZA
arrivals increase by 6% to 11.6 million in 2010.             DARLING HARBOUR)                                     This 196-room hotel is situated             This 486-room hotel is flanked
In Australia, visitor arrivals hit a record high             This scenic 345-room                                 on Phillip Street, in Parramatta’s          by scenic vistas of the Swan
of 5.9 million, 5% above the same period                     accommodation, surrounded                            fa s h i o n a b l e b u s i n e ss a n d   River and its surrounding
in 2009. This was above Australia’s 2010                     by Sydney’s famous attractions                       shopping district. In 2010, Pan             parks. The Group commenced
forecast of 5.5 million visitor arrivals.                    and located near the                                 Pacific Hotels Group bought                 renovations of the ballrooms in
                                                             waterfront, is the ideal base                        over the remaining 40% stake                August 2010 to be completed
Industry occupancy for Australia saw                         for shopping, sightseeing and                        from minority shareholders and              by early 2011. The hotel was
growth by 2 percentage points to 64%                         sheer relaxation. In 2010, Pan                       now wholly owns the hotel,                  rebranded to the “Pan Pacific”
while ARR improved by 2% to A$139 and                        Pacific Hotels Group bought                          rebranded to the “PARKROYAL”                brand on 6 January 2011.
RevPAR grew by 5% to A$89. Sydney saw                        over the remaining 40% stake                         brand on 1 November 2010.
strong growth with occupancy increase                        from minority shareholders and                       Renovation of all 196 guestrooms
by 5 percentage points, ARR increased                        now wholly owns the hotel,                           was completed in August 2010
by 4% to A$176 and RevPAR grew by 11%                        rebranded to the “PARKROYAL”                         and further refurbishments for
to A$151. Perth CBD occupancy grew by 3                      brand on 1 November 2010.                            the public areas, restaurants
percentage points versus 2009 while ARR                                                                           and bars will continue in the first
increased by 1% and RevPAR by 5%.                                                                                 quarter of 2011. The reduction
                                                                                                                  in occupancy was mainly due
Group Performance                                                                                                 to the renovations of rooms
The three hotels saw a 6% increase in                                                                             carried out during the year.
revenue to $104 million during 2010. This
was the result of a 4 percentage points
increase in occupancy and 4% increase
in ARR. The increase in occupancy was in
                                                             AVERAGE
                                                             OccUPAncy:                     +4%     points
                                                                                                                  AVERAGE
                                                                                                                  OccUPAncy:                   -1%points
                                                                                                                                                              AVERAGE
                                                                                                                                                              OccUPAncy:                 +6%points
spite of the renovations carried out in the
Parramatta hotel during the year.

The two Sydney hotels were rebranded and
                                                             AVERAGE
                                                             ROOm RATE:                      +5%                  AVERAGE
                                                                                                                  ROOm RATE:                 +6%              AVERAGE
                                                                                                                                                              ROOm RATE:                 +2%
managed under the “PARKROYAL” brand
from November 2010. The Perth hotel was
rebranded and managed under the “Pan
                                                             REVEnUE PER
                                                             AVAiLABLE
                                                             ROOm:
                                                                                             +9%                  REVEnUE PER
                                                                                                                  AVAiLABLE
                                                                                                                  ROOm:
                                                                                                                                             +5%              REVEnUE PER
                                                                                                                                                              AVAiLABLE
                                                                                                                                                              ROOm:
                                                                                                                                                                                         +11%
Pacific” brand from January 2011.
                                                             * All figures are compared year on year over 2009.




pan paCifiC hOteLs GrOup LiMited                                                                                                                                           ANNUAL REPORT 2010
                                                                                                     A BRAND
48                                                                                                   new era                                                                                                 49




nORTH
AmERicA
                                                                                                                              A FEATHER in OUR cAP
Tourism Landscape
                                                                                                                              FOR A BRAnd nEW ERA
International visitors to North America
increased by 8% to 99.2 million in 2010.                                                                                                         Awards and global recognition are testaments to the brand
The United States (“US”) saw visitor                                                                                                             experience and distinctive service standards that separate us
arrivals increase by 11% to 60.9 million                                                                                        OUR              from our competition. We are motivated by our accolades,
while Canada registered a marginal
increase of 2% against 2009.
                                                                                                                               AWARds            and inspired to create many more memorable hotel
                                                                                                                                2010             experiences so that you, our valued guests, have compelling
Industry occupancy for US increased                                                                                                              reasons to return to us, year after year.
3 percentage points to 58% while
ARR was flat at US$98 and RevPAR
was up 6% to US$56. Canadian hotel
occupancy increased by 2 percentage
points to 61%. ARR increased by 2%                                                                                            WORLd TRAVEL               TRiPAdVisOR’s               FiABci PRix
to C$129 while RevPAR was at C$78,                                                                                            AWARds 2010                TRAVELERs’ cHOicE           d’ExcELLEncE
a 5% improvement over the same                                                                                                • World’s Leading          AWARds 2010                 AWARds 2010
period in 2009.                                                                                                                 Business Hotel           • Top 25 Hotels in          • Hotel category
                                                                                                                                Pan Pacific Singapore      United states               Pan Pacific Suzhou
Group Performance                                                                                                                                          Pan Pacific Seattle
Performance of the hotels improved                                                                                            • Asia’s Leading                                       AsEAn GREEn HOTEL
i n l i n e w i t h t h e m a r ke t t re n d .                                                                                 Business Hotel           • Top 25 Hotels in china    AWARd 2010-2011
Managed revenue increased by 10%                                                                                                                           Pan Pacific Xiamen        • sari Pan Pacific Jakarta
                                                                                                                                Pan Pacific Singapore
to $88 million during 2010 boosted
by a 13% improvement in RevPAR.
                                                                                                                              • canada’s Leading Hotel   GOLdEn PiLLOW               AssOciATiOn OF ROOms
The increase in RevPAR comprised
of a 3 percentage points increase in                                                                                            Pan Pacific Vancouver    AWARds 2010                 diVisiOn ExEcUTiVEs
occupancy and 7% increase in ARR.                                                                                                                        • china’s Top 10 most       (sinGAPORE)
                                                                                                                              • canada’s Leading           Popular Resort Hotels     AWARds 2010
                                                                                                                                Business Hotel             Pan Pacific Suzhou        • Best Front Office
                                                                                                                                Pan Pacific Vancouver                                   department
                                                                                                                                                         TRAVEL+LEisURE                 (superior Hotel)
             OccUPAncy                                   REVPAR (s$)                          REVEnUE (s$’m)                  • indonesia’s Leading      cHinA’s cHinA                  PARKROYAL on
                                                                                                                                Golf Resort              TRAVEL AWARds 2010             Beach Road
80%                                       300                                        200
                                                                                                                                Pan Pacific Nirwana      • china’s Top 100 Hotels
75%                                       280                                        180                                        Bali Resort                Pan Pacific Suzhou        THE AsiA PAciFic
                                                                                                                                                                                     BRAnds FOUndATiOn
70%                                       260                                        160
                                                                                                                              • singapore’s Leading      TRAVEL & LEisURE’s          (APBF) BRAndLAUREATE
                                                                                                                                serviced Apartments      AnnUAL TRAVEL               AWARd 2009/2010
65%                                       240                                        140
                                                                                                                                Pan Pacific Serviced     AWARds 2010                 • Best Brand in
60%                                       220                                        120                                        Suites Singapore         • Top 25 Best Business        Airport Hotels
                                                                                                                                                           Hotels in Greater china     Pan Pacific Kuala Lumpur
55%                                       200                                        100
                                                                                                                              cOndé nAsT TRAVELER          Pan Pacific Xiamen          International Airport
50%                                       180                                         80                                      REAdERs’ cHOicE
                                                                                                                              AWARds 2010                BcA cOnsTRUcTiOn            WORLd LUxURy HOTEL
45%                                       160                                        60                                       • Top Hotels (canada)      ExcELLEncE                  AWARds 2010
                                                                                                                                Pan Pacific Vancouver    AWARds 2010                 • Luxury Airport Hotel
 0%                                         0                                         0
                                                                                                                                                         • commercial/mixed            category
      2006   2007   2008   2009   2010            2006   2007   2008   2009   2010         2006   2007   2008   2009   2010
                                                                                                                              • Top Resorts (canada)       development Buildings       Pan Pacific Kuala Lumpur
      ManaGed                                   ManaGed                                    ManaGed                              Pan Pacific Whistler       category                    International Airport
                                                                                                                                Village Centre             Pan Pacific Serviced
                                                                                                                                                           Suites Singapore


pan paCifiC hOteLs GrOup LiMited                                                                                                                                                             ANNUAL REPORT 2010
                                                                                  A BRAND
50                                                                                new era                                                                                                                 51




OUR PiPELinE                                        Committed to steady expansion, pan
                                                    pacific hotels Group continues to
                                                                                                       THE PLAzA
                                                                                                       BEAcH ROAd ExTEnsiOn
PROJEcTs                                            extend its presence in Greater China,              The Plaza Beach Road Extension features 184
                                                                                                       serviced suites, with a column-free ballroom
                                                    asia and Oceania.                                  and function rooms for meetings and events,
                                                                                                       in a vibrant enclave bordering downtown
                                                                                                       Singapore. Piling and redevelopment works,
PARKROyAL                                                                                              which commenced in 2010, are expected to
mELBOURnE AiRPORT                                                                                      be completed by end-2012.
Featuring 276 guest rooms complete with
dining, meeting, business and fitness facilities,                                                      OPEninG in 2012
this is the only airport hotel in Australia with
direct connectivity to the terminal building. Its
location at one of Australia’s busiest airports
offers superb visibility for brand building.
                                                                                                                                                                          PARKROyAL
                                                                                                                                                                          sERVicEd sUiTEs
                                                                                                                                                                          GREEn ciTy,
OPEninG On 1 APRiL 2011                                                                                                                                                   sHAnGHAi
                                                                                                                                                                          M a r k i n g “ PA R K R OYA L’ s ”
                                                                                                                                                                          debut in China is this 325-
PAn PAciFic                                         PAn PAciFic sERVicEd                                                                                                  room property located in a
ninGBO                                              sUiTEs ninGBO                                                                                                         prestigious district catering
                                                                                                                                                                          to Shanghai’s burgeoning
This 430-room luxury hotel is part of a mixed-      Providing a contemporary home away from home
use development and located at the gateway          is this 200-room property situated in the mixed-                                                                      expatriate community. Its
to Ningbo’s upcoming industrial and economic        use development housing Pan Pacific Ningbo.                                                                           exclusive amenities include
zone. It is also the focal point of a commercial    An ideal base for extended-stay travellers,                                                                           an indoor swimming pool and
and up-market residential district evolving in      it is located next to Ningbo’s International                                                                          private clubhouse, while a
the area.                                           Conference and Exhibition Centre.                                                                                     three-story annex houses a
                                                                                                                                                                          café and restaurant.
OPEninG in 2012                                     OPEninG in 2012
                                                                                                                                                                          OPEninG in 2012

                                                              PARKROyAL
                                                              On PicKERinG                             PAn PAciFic                      PARKROyAL TAiHU REsORT, sUzHOU
                                                              Redefining conventions with its          TiAnJin                          This elegant 200-room hotel is located at Taihu, one of Suzhou’s
                                                              ‘hotel-in-a-garden’ concept is this      Commanding panoramic views       most popular resort destinations. Overlooking the beautiful Taihu
                                                              363-room property showcasing             of Haihe River is this 334-      Lake, it features authentic restaurants, spacious ballrooms, lush
                                                              sustainable features in elegant and      room hotel strategically sited   garden landscapes and a stunning lakeside spa among other
                                                              contemporary settings. Located at        in the bustling harbour city     well-appointed amenities.
                                                              the crossroad of Singapore’s central     of Tianjin. Home to luxurious
                                                                                                       accommodations and part of
                                                              business district and Chinatown, it is
                                                                                                       a mixed-use development, it
                                                                                                                                        OPEninG in 2014
                                                              close to the waterfront entertainment
                                                              along Singapore River.                   offers convenient access to
                                                                                                       the central business district
                                                                                                       and airport.
                                                              OPEninG in 2012
                                                                                                       OPEninG in 2013




pan paCifiC hOteLs GrOup LiMited                                                                                                                                                     ANNUAL REPORT 2010
                                                      A BRAND
52                                                    new era                                                                                       53




HUmAn
                                                                and Human Capital & Development, a systematic
                                                                Talent Management Programme was instituted
                                                                to track the contributions and performance          ...clarity in management
cAPiTAL                                                         of our talents. Through the programme, we
                                                                identified a strong pool of high potential          direction and a sense

And                                                                                                                 of ownership and work
                                                                candidates whom we can groom for leadership
                                                                roles in the course of succession planning and
                                                                future expansion.                                   empowerment are
dEVELOPmEnT                                                     As part of the Talent Development process, a
                                                                robust Performance Management System was
                                                                                                                    essential ingredients for
                                                                                                                    organisational growth...
                                                                also introduced to provide greater transparency
                                                                and objectivity in our appraisal systems, and
pan pacific hotels Group                                        to foster stronger links between employee
believes that human Capital and                                 performance, business goals and company
                                                                values. The system encouraged a greater
development plays a crucial role                                ownership of roles as we work hand-in-hand
when it comes to driving the                                    with our associates to hone their strengths for
company forward.                                                future growth.

                                                                sharing Our Best Practices
Guided by a purpose for Great                                   Sharing strategic insights with professionals
Brands, Great hotels, Great people                              from the industry, our Senior Vice President
and Great relationships, our                                    for Human Capital & Development, Mrs Melody
                                                                King, was a speaker at a panel on “Harnessing
associates embraced a renewed                                   Human Capital for Successful Regionalisation
commitment to supporting the                                    in Asia” during the Singapore Human Capital
Group’s expansion plans and                                     Summit held in September.
delivering on its brand promises.                               The Group was also invited to be a member of
                                                                the Future of Work (FOW) Consortium, to share
                                                                perspectives on talent management and HR
A Great Future driven by Great People                           practices that will shape the future. Working in
We recognised that inculcating a passionate                     tandem with academia and global professionals,
confidence for the Group’s Vision and Purpose                   our participation will provide a voice for the
was the cornerstone from which the “Pan                         hospitality industry and help in the development
Pacific” and “PARKROYAL” brands would grow.                     of useful benchmarks that will reveal how “future
During the year, the Group rolled out its new                   proofed” today’s businesses are for evolving
Vision, Purpose and Values across all of its hotels             global trends.
and helped associates translate them into action
in day-to-day operations. This was inculcated                   Encouraging meaningful Work
through a year-long Vision, Purpose and Values                  During the year, the Group appointed several
programme that included creative competitions,                  internal teams to spearhead a series of work
associate engagement programmes and even a                      improvement measures. These have enhanced
‘Doing Good’ month.                                             our associates’ abilities to function efficiently
                                                                across geographies and operations. In particular,
Constant employee engagement remained a key                     red tape and complex processes were simplified
priority for the Group. The improved scores from                so that front-liners could focus on what they do
this year’s “Our People, Voices & Views Associate               best – creating memorable hotel experiences.
Satisfaction Survey” attest to the fact that
clarity in management direction and a sense of                  With a growing family of over 7,500 global
ownership and work empowerment are essential                    associates and an ever-expanding property
ingredients for organisational growth.                          portfolio, the sustained ability to support and
                                                                complement one another will take the Group to
strengthening Our Talent                                        new heights.
management strategies
Furthering our efforts to build Human Capital
capabilities in strategic functions such as Brand
Development, Operations, Strategic Planning



pan paCifiC hOteLs GrOup LiMited                                                                                                     ANNUAL REPORT 2010
                                                              A BRAND
54                                                            new era                                                                                                                   55




                                                                                                                                         For families devastated by the 7.0-magnitude
                                                                                                                                         earthquake in Haiti, our associates at Pan Pacific
                                                                                                                                         Seattle dug into their pockets for the Haitian
                                                                                                                                         Earthquake Relief Fund. At PARKROYAL Saigon,
                                                                                                                                         associates rallied to donate food and money to
                                                                                                                                         families who lost their homes to massive storms
                                                                                                                                         in Vietnam.

                                                                                                                                         Going Green
                                                                                                                                         In North America, Pan Pacific Whistler Village
                                                                                                                                         Centre and Pan Pacific Whistler Mountainside
                                                                                                                                         introduced hybrid heating power to reduce
                                                                                                                                         greenhouse gas emissions; while the latter,
                                                                                     Spreading yuletide cheer, associates at Pan
                                                                                                                                         together with Pan Pacific Vancouver, were rated
                                                                                     Pacific Serviced Suites Singapore shared
                                                                                                                                         3 and 4 Green Keys respectively in the Green
                                                                                     food and presents with children from a local
                                                                                                                                         Key ECO-ratings awarded by the Canadian
                                                                                     orphanage, while PARKROYAL on Beach Road
                                                                                                                                         Hotel Association.
                                                                                     supported the Boys’ Brigade Share-A-Gift
                                                                                     project for the needy.
                                                                                                                                         Pan Pacific Seattle embarked on a PanEarth
                                                                                                                                         Sustainability Programme, where eco-initiatives
                                                                                                                                         are continually reviewed and improved upon by a
                                                                                                                                         designated Green Team. It is also an active member

sUsTAinABiLiTy                           pan pacific hotels Group
                                         supports numerous social
                                                                                                                                         of the Seattle Climate Partnership dedicated to
                                                                                                                                         sustainable strategies for the environment.


And cORPORATE                            and environmental causes –
                                         transforming lives, forging
                                                                                                                                         To offset its carbon footprint, Pan Pacific
                                                                                                                                         Sonargaon Dhaka planted over 300 trees, which

sOciAL                                   relationships and giving
                                         back to local communities
                                                                                                                                         also served to provide shade for a new parking
                                                                                                                                         area.


REsPOnsiBiLiTy                           – with the view that
                                         environmental, social and
                                                                                     The Annual Christmas Wish Breakfast project
                                                                                     by Pan Pacific Vancouver collected over 11
                                                                                                                                         Currently under development is PARKROYAL on
                                                                                                                                         Pickering in Singapore, which features a hotel-
                                                                                     tonnes of gifts and US$14,000 in cash donations     in-a-garden concept and sustainable features
                                         governance considerations                                                                       that have earned it a Green Mark Platinum
                                                                                     for underprivileged children. Special festive
                                         impact on the long term                     programmes by Pan Pacific Suzhou, Pan Pacific       certification.
                                         performance of a company.                   Serviced Suites Bangkok, Pan Pacific Kuala Lumpur
                                                                                     International Airport, PARKROYAL Kuala Lumpur,      Amongst its green features are a smart water
                                         Helping the Less Privileged                 PARKROYAL Saigon and PARKROYAL Penang               management system, rainwater harvesting and
                                         In Singapore, the “Pan Pacific” and         Resort brought Christmas cheer to children and      automatic sensors to regulate energy and water
                                         “PARKROYAL” hotels co-hosted the            the elderly in their respective communities.        usage. Greenery also features prominently in
                                         Assisi Hospice Charity Fun Day 2010                                                             the hotel’s design concept; lofty four-storey tall
                                         at St. Joseph Institution International     supporting Local communities                        skygardens, spread throughout the building’s
it’s not about duty, it’s about being    School with games and food stalls.          Volunteers from Pan Pacific Nirwana Bali Resort     façade, bring lush greenery to the rooms and
there for people at a time when they     Through combined efforts, we doubled        extended a helping hand to neighbouring villages    internal spaces.
                                         our contributions from last year.           through cleaning and maintenance projects. The
need us most. [the flight disruptions                                                hotel also supported local Beraban businesses       Enterprise-wide Risk management
                                                                                                                                         We have put in place our Enterprise-wide Risk
caused by the volcanic eruption in       At the Singapore corporate office,
                                         the Group organised an in-house
                                                                                     by buying local produce and supplies, providing
                                                                                     employment, financial support and internships       Management Programme (“ERM Programme”)
iceland] gave us a real chance to        sale of art and crafts designed by          for the local community in doing so.                in 2009. In 2010, we continued to cascade the
                                         youths from the Muscular Dystrophy                                                              ERM Programme down to our businesses and
put our vision into practice, bringing   Association.                                Providing solace in Times of need                   operations. This allows the Group to have a
heartfelt gestures to the travellers                                                 PARKROYAL Kuala Lumpur rose to the occasion         system to deal with current and evolving risks in
                                                                                                                                         the business and regulatory environment which
                                         doing Good month                            when UK-bound passengers were stranded
whom we managed to help.                 December was designated “Doing              in Kuala Lumpur due to flight cancellations         it operates in, and enables the Group to stay on
                                         Good Month”. Group-wide, our hotels         caused by the eruption of Mount Eyjafallajökull     a sustainable growth path in the long term. The
                                         supported local charities with activities   in Iceland. The hotel provided several guest        details on the ERM Programme can be found
sundra Kulendra                          demonstrating our respect and care          rooms to affected passengers for rest – an          in pages 146 to 147 of the Annual Report (the
Director, Restaurants, Bars & Events     for the wider community and our             initiative commended by both KLM Airlines and       Corporate Governance Report).
PARKROYAL Kuala Lumpur                   recognition and value for diversity.        the British High Commission.


pan paCifiC hOteLs GrOup LiMited                                                                                                                                     ANNUAL REPORT 2010
        OUR
PERFORmAncE         in THis sEcTiOn
         five-Year financial summary
                     financial review
       Group Value-added statement
                                                                                    A BRAND
58                                                                                  new era                                                                                                                                                           59




FiVE-yEAR
FinAnciAL sUmmARy
ConsoLiDAteD inCome stAtements                                                                           ReVenUe by seGments
                                              2006         2007        2008        2009        2010
In $’000                                                                                                 In $’000                                  2006          2007            2008           2009            2010
Revenue                                     287,255      290,159      315,225     287,806     324,242    Business
                                                                                                                                                                                                                             5%                           0%
Cost of sales                              (156,420)    (149,040)    (153,970)   (147,347)   (160,649)   Hotel ownership                       273,707        277,202          296,556        260,877         288,561
                                                                                                                                                                                                                             6%
Gross profits                               130,835      141,119      161,255     140,459     163,593    Hotel management                            –              –             4,268        13,760          17,611
Other miscellanous gains                      2,520        1,137        1,058       1,440       1,987      Total segment sales                       –              –           10,928         19,895          27,535
                                                                                                           Inter-segment sales                       –              –            (6,660)        (6,135)         (9,924)
                                                                                                         Property investments                   12,498         11,691           13,135         13,027          17,329                    2010
Expenses                                                                                                 Investments                             1,050          1,266             1,266            142             741
    - Marketing & distribution              (13,247)     (12,793)    (14,364)    (14,343)    (15,805)
                                                                                                         Total                                287,255         290,159        315,225        287,806           324,242                        89%
    - Administrative                        (26,717)     (23,895)    (28,415)    (31,059)    (36,482)                                                                                                                                        89%
    - Other operating                       (44,741)     (43,893)    (44,600)    (45,610)    (50,998)       Hotel ownership                  Hotel management                Property investments             Investments

Profit from operations                      48,650       61,675      74,934      50,887      62,295      Geographical
Finance income                                 3,036        2,708       1,999       2,505       3,368    Singapore                               99,676         83,848          99,980         87,432         111,104
                                                                                                                                                                                                                             3%                           1%
Exchange (loss)/gain                          (1,040)         539         959        (621)     (3,450)   Australia                               82,047         96,643         104,025         90,316         103,531        5%
Finance expense                             (13,273)       (6,901)     (1,747)     (3,034)     (3,124)   Vietnam                                 31,015         37,068          41,198         32,822          33,847
Share of profit of                                                                                       Malaysia                                38,366         41,352          40,176         41,887          44,943
associated companies                          1,411        1,907        1,946       1,067       1,127    China                                   30,539         25,682          22,966         22,738          17,273             14%               34%

Profit before other gains/(losses)                                                                       Myanmar                                  5,612          5,566           5,986          7,829           9,664                    2010
                                                                                                         Others                                       –              –             894          4,782           3,880
and fair value adjustments                  38,784       59,928      78,091      50,804      60,216                                                                                                                               11%

Gain on disposal of subsidiaries             86,717           –           –           –         156      Total                                287,255         290,159        315,225        287,806           324,242                         32%
Impairment charge on property                                                                               Singapore            Australia          Vietnam       Malaysia          China           Myanmar        Other
under construction                                 –            –     (37,000)          –           –
Fair value gains/(losses) on
investment properties                             –       49,267      (9,840)     (1,620)      9,979     PRofit fRom oPeRAtions by seGments
Profit before income tax                   125,501      109,195      31,251      49,184      70,351
Income tax expense                           (8,898)     (21,187)    (15,829)     (9,109)    (15,131)                                                                                                                                                     1%
                                                                                                         In $’000
Net profit                                 116,603       88,008      15,422      40,075      55,220      Business
                                                                                                                                                                                                                             4%

                                                                                                         Hotel ownership                         41,010         52,998          63,451         42,050          48,491               17%
Attributable to:                                                                                         Hotel management                             –              –           1,476            673           2,728
Equity holders of the Company               114,211       84,977      12,818      39,312      53,640     Property investments                     6,590          7,411           8,741          8,022          10,335                    2010
Non-controlling interests                     2,392        3,031       2,604         763       1,580     Investments                              1,050          1,266           1,266            142             741

                                           116,603       88,008      15,422      40,075      55,220      Total                                  48,650         61,675          74,934         50,887           62,295                        78%

                                                                                                            Hotel ownership                  Hotel management                Property investments             Investments

Basic earnings per ordinary
                                                                                                         Geographical
shares (cents)
                                                                                                         Singapore                               16,793         21,718          31,643         18,815          29,824
                                                                                                                                                                                                                             3%                           1%
     -   before other gains/(losses) and                                                                 Australia                               11,214         17,342          22,465         16,829          19,725
         fair value adjustments                6.87        11.13         9.65        6.78        7.53    Vietnam                                   8,091        12,754          16,219         10,429          11,423
     -after other gains/(losses) and                                                                     Malaysia                                  5,755         5,990           2,249          4,866            4,665                  7%
                                                                                                         China*                                    7,840         5,020           3,202           (920)          (5,389)
      fair value adjustments                  28.55        21.22         2.14        6.55        8.94                                                                                                                             18%
                                                                                                         Myanmar                                  (1,043)       (1,149)           (134)           296            1,722                   2010
Gross dividend declared                                                                                  Others                                                                   (710)
                                                                                                                                                                                                                                                    48%
                                                                                                                                                       –             –                            572              325
   - Final (cents)                             5.00         5.00         4.00        3.50        4.00
   - Special (cents)                          35.00            –            –           –           –    Total                                  48,650         61,675          74,934         50,887           62,295               32%

   - Cover (times)                             0.87         2.83         0.53        1.87        2.24       Singapore            Australia          Vietnam       Malaysia          China           Myanmar        Other

                                                                                                         * Pie chart does not show China segment losses.




pan paCifiC hOteLs GrOup LiMited                                                                                                                                                                                            ANNUAL REPORT 2010
                                                                                     A BRAND
60                                                                                   new era                                                                                                                          61




FiVE-yEAR                                                                                                 FinAnciAL
FinAnciAL sUmmARy                                                                                         REViEW
ConsoLiDAteD stAtements of finAnCiAL Position                                                                                                                                year ended 31 December

                                                                                                                                                                                                increase/           %
                                            31.12.06    31.12.07    31.12.08     31.12.09     31.12.10                                                               2010         2009         (Decrease)       Change
In $’000                                                                                                                                                             $’000        $’000           $’000
Net assets employed
Available-for-sale financial assets           20,892      21,633      12,968       18,032       17,167    Revenue
Investment in associated companies            12,897      10,566      12,506        6,954        7,394    Gross revenue from hotel ownership                       288,561       260,877           27,684           11
Investment properties                        118,677     165,309     155,469      155,481      165,460    Revenue from hotel management services                    17,611        13,760            3,851           28
Property, plant and equipment                464,757     502,644     478,171      491,716      480,544    Revenue from property investments                         17,329        13,027            4,302           33
Property under construction                        –           –     237,059      248,122      273,778    Dividend income                                              741           142              599          422
Intangibles                                   14,415      14,315      28,026       27,200       30,772    Total revenue                                            324,242       287,806           36,436            13
Other assets                                       –      71,096           –            –            –
Deferred income tax assets                     8,395       4,353       2,014        3,330        2,783    Group revenue for the year ended 31 December 2010 increased by 13% or $36.4 million to $324.2 million from
Advances to holding company                        –           –           –       55,662       49,630    $287.8 million achieved in the previous year. The increase was due to better performance in all the business
Net current assets, excluding                                                                             segments.
borrowings                                    40,126     195,423       6,960       49,899       22,777
                                                                                                          Revenue from the hotels owned by the Group increased by 11% from $260.9 million in 2009 to $288.6 million
Non-current liabilities, excluding
                                                                                                          in 2010. With the exception of the hotels in Penang and Suzhou, all the Group’s hotels registered increase in
borrowings                                   (35,424)    (51,265)    (52,107)      (53,859)    (57,395)
                                                                                                          revenue per available room (“RevPAR”).
                                             644,735     934,074     881,066     1,002,537     992,910
                                                                                                          Revenue from hotel management services for the year ended 31 December 2010 increased by $3.9 million or
                                                                                                          28% to $17.6 million on the back of better performance from hotels under management.
Capital employed
Share capital                                217,623     557,333     557,333      557,333      557,333
                                                                                                          Revenue from property investments of $17.3 million for the year ended 31 December 2010 was 33% higher
Reserves                                      47,546      31,768       (9,079)     22,278       25,715    than the previous year due to higher rental from the commercial properties and better performance of the
Retained earnings                            248,617     212,736     195,554      210,866      218,635    Group’s serviced suites at The Plaza.
Interests of the shareholders                513,786     801,837     743,808      790,477      801,683
Non-controlling interests                     24,108      27,949      23,463       29,942            –                                                                       year ended 31 December
Borrowings                                   106,841     104,288     113,795      182,118      191,227
                                                                                                                                                                                                increase/           %
                                             644,735     934,074     881,066     1,002,537     992,910                                                               2010         2009         (Decrease)       Change
                                                                                                                                                                     $’000        $’000           $’000
Net tangible asset backing                                                                                Expenses
per ordinary share ($)                                                                                    Cost of sales                                            160,649       147,347           13,302             9
     -   before accounting for surplus on
                                                                                                          The increase in cost of sales was due mainly to higher payroll cost as a result of annual increments and the
         revaluation of hotel properties        1.25        1.31        1.19          1.27        1.28
                                                                                                          lifting of hiring freeze; higher depreciation charge arising largely from the completion of extension works and
     -   after accounting for surplus on                                                                  refurbishment works at Pan Pacific Suzhou and PARKROYAL Serviced Suites Singapore respectively in 2009;
         revaluation of hotel properties        2.14        2.17        1.98          2.05        2.20    and increase in other operating costs in line with the increase in revenue.

Gearing ratio
Debt : equity ratio                             0.21        0.13        0.15          0.16        0.18




pan paCifiC hOteLs GrOup LiMited                                                                                                                                                                 ANNUAL REPORT 2010
                                                                                             A BRAND
62                                                                                           new era                                                                                                                                            63




FinAnciAL                                                                                                            FinAnciAL
REViEW                                                                                                               REViEW
                                                                                                                                                                                                                 year ended 31 December
                                                                     year ended 31 December
                                                                                                                                                                                                                                increase/       %
                                                                                        increase/            %                                                                                       2010           2009       (Decrease)   Change
                                                            2010          2009         (Decrease)        Change                                                                                      $’000          $’000         $’000
                                                            $’000         $’000           $’000                      Income tax expenses
Expenses                                                                                                             Tax expense on profit for the financial year                                   16,985          10,904         6,081        56
- Marketing and distribution                                15,805        14,343            1,462             10     Effect of changes in tax rate                                                       –          (2,160)        2,160       100
- Administrative                                            36,482        31,059            5,423             17     (Over)/under provision in preceding financial years                            (1,854)            365        (2,219)     (608)
- Other operating                                           50,998        45,610            5,388             12
                                                                                                                                                                                                    15,131           9,109         6,022        66
The increase in administrative expenses by $5.4 million or 17% from $31.1 million in 2009 to $36.5 million in
2010 was in line with higher revenue and higher payroll costs as a result of annual increments and the lifting       Effective tax rate(1)                                                             24%            22%            2%          9
of hiring freeze.
                                                                                                                     In line with higher profits, the Group’s tax charge for the year ended 31 December 2010 increased from $9.1
Other operating expenses increased by 12% or $5.4 million from $45.6 million in 2009 to $51.0 million in 2010        million in 2009 to $15.1 million in 2010. Included in the tax charge was a write-back of overprovision of income
due mainly to increases in property tax; repairs and maintenance expenses; heat, light and power; write-off of       tax of $1.9 million (2009: write-back of deferred tax amounting to $2.2 million due to change in tax rate). The
property, plant and equipment; and rebranding expenses for the Suzhou and Australian hotels.                         effective tax rate is higher than the Singapore statutory rate of 17% due mainly to certain overseas profits being
                                                                                                                     subject to statutory rates higher than the Singapore statutory rate and disallowable expenses.
                                                                     year ended 31 December                          (1)
                                                                                                                           Based on tax expense on profit for the financial year over profit before income tax

                                                                                        increase/            %
                                                            2010          2009         (Decrease)        Change                                                                                                    As at 31 December
                                                            $’000         $’000           $’000                                                                                                                                 increase/       %
                                                                                                                                                                                                     2010            2009      (Decrease)   Change
Finance expenses
Interest expenses, net of capitalisation                     3,124         3,034               90             3                                                                                     $’000           $’000         $’000
                                                                                                                     Borrowings and capital management
Foreign exchange loss – net                                  3,450           621            2,829           456
                                                                                                                     Gross borrowings                                                             192,294          183,796         8,498         5
                                                             6,574         3,655            2,919             80
                                                                                                                     Less: Advances to holding company                                             (49,630)        (55,662)        6,032       11
The exchange loss in 2010 arose mainly from the repayment of USD-denominated shareholder loans by                    Net borrowings                                                               142,664          128,134        14,530       11
subsidiaries. These loans are deemed to be part of the Company’s investments in the subsidiaries and movement
in currency translation are taken to equity. These exchange differences are transferred from equity and recognised
in the Group’s income statement upon realisation, i.e. when repayments are made by the subsidiaries.                 Debt : equity ratio (based on net borrowings)                                     18%            16%            2%        10
                                                                                                                     Average interest rate on borrowings                                             2.50%          2.69%        -0.19%         (7)
                                                                     year ended 31 December
                                                                                                                     Maturity of borrowings
                                                                                        increase/            %
                                                            2010          2009         (Decrease)        Change      Within one year                                                                70,833           6,087        64,746       nm
                                                            $’000         $’000           $’000                      One to two years                                                             119,348           80,994        38,354       47
Fair value adjustments                                                                                               Two to five years                                                               2,113          96,715       (94,602)      (98)
Fair value gains/(losses) on investment properties           9,979         (1,620)         11,599           716
                                                                                                                                                                                                  192,294          183,796         8,498         5
Investment properties are carried at fair values as determined by independent professional valuers. It is the        nm: not meaningful
practice of the Group to revalue its investment properties on a half yearly basis on 30 June and 31 December.
In 2010, the Group recognised a fair value gain of $10.0 million on its investment properties compared to a          The bank borrowings are secured by mortgages on the borrowing subsidiaries’ hotel properties or property
fair value loss of $1.6 million in 2009.                                                                             under development and/or assignment of all rights and benefits with respect to the properties.

                                                                                                                     The debt-equity ratio after taking into account capital commitments for the Upper Pickering development, Beach
                                                                                                                     Road extension and the purchase of Melbourne Airport Hotel will increase from the current 18% to 59%.



pan paCifiC hOteLs GrOup LiMited                                                                                                                                                                                                 ANNUAL REPORT 2010
                                                                           A BRAND
64                                                                         new era



GROUP VALUE-AddEd
sTATEmEnT
                                                                          2010        2009
In $’000
Sale of goods and services                                               323,501     287,664
Purchases of materials and services                                     (120,626)   (111,834)

Gross value added                                                       202,875     175,830
Share of profit of associated companies                                   1,127       1,067
Income from investments, interest and others                              6,096       4,087
Gain on liquidation of a subsidiary                                         156           –
Fair value gains/(losses) on investment properties                        9,979      (1,620)
Exchange loss                                                            (3,450)       (621)
Total value added                                                       216,783     178,743
Distribution of value added :
   To employees and directors -
       Employees’ salaries, wages and benefits                          100,271      86,413
       Directors’ remuneration                                            2,779       2,425
                                                                        103,050      88,838

     To government -
        Corporate and property taxes                                     21,797      14,465

     To providers of capital -
        Interest paid                                                     3,124       3,034
        Net dividend to shareholders                                     21,000      24,000
        Net dividend attributable to non-controlling interests           11,272         398
                                                                         35,396      27,432

Total value-added distributed                                           160,243     130,735

Retained in the business:
   Depreciation                                                          33,592      32,331
   Retained earnings                                                     19,784      13,294
   Non-controlling interests                                              (9,692)       365
                                                                         43,684      45,990

Non-production cost and income
  Bad debts                                                                   75         172
  Income from investments, interest and others                             6,096       4,087
  Gain on liquidation of a subsidiary                                        156           –
  Fair value gains/(losses) on investment properties                       9,979      (1,620)
  Exchange loss                                                           (3,450)       (621)
                                                                         12,856        2,018
                                                                        216,783     178,743

Productivity ratios :                                                         $           $
   Value added per employee                                              54,042      49,895
   Value added per $ employment costs                                      1.97        1.98
   Value added per $ investment in fixed assets (before depreciation)
   - at cost                                                                0.26        0.21
   - at valuation                                                           0.22        0.18
   Value added per $ net sales                                              0.63        0.61


pan paCifiC hOteLs GrOup LiMited
                                                                                                    65




                               Financial
                               contents
                               66 Report of the Directors           77    Notes to the
                                                                          Financial Statements
                               69 Statement by Directors
                                                                    141 Corporate
                               70 Independent
                                                                        Governance Report
                                  Auditor’s Report
                                                                    152 Interested Person
                               71    Income Statements
                                                                        Transactions
                               72    Statements of
                                                                    153 Shareholding Statistics
                                     Comprehensive Income
                                                                    154 Share Price and Turnover
                               73    Statements of
                                     Financial Position             155 Notice of Annual
                                                                        General Meeting
                               74    Consolidated Statement
                                     of Changes in Equity                 Proxy Form
                               75    Statement of Changes
                                     in Equity
                               76    Consolidated Statement
                                     of Cash Flows




Financial
calendar
                                                                         2010                 2009
Announcement of first-quarter results                                12.05.10                12.05.09
Announcement of second-quarter results                               06.08.10                12.08.09
Announcement of third-quarter results                                10.11.10                13.11.09
Announcement of unaudited full-year results                          22.02.11                23.02.10
Annual General Meeting                                               19.04.11                21.04.10
Books closure dates                                       04.05.11 to 05.05.11   03.05.10 to 04.05.10
First and final dividend payment date                                18.05.11                13.05.10


                                                                                 ANNUAL REPORT 2010
                                                                                                         A bRANd
66                                                                                                       NEw ERA                                                                                                                                       67



report oF the directors                                                                                                           report oF the directors
For the financial year ended 31 december 2010                                                                                     For the financial year ended 31 december 2010



The directors have pleasure in submitting this report to the members together with the audited financial statements               Directors’ interests in shAres or Debentures (continueD)
of the Company and of the Group for the financial year ended 31 December 2010.
                                                                                                                                  (b)    The directors’ interests in the share capital of and options to subscribe for ordinary shares of the Company
                                                                                                                                         and related corporations, as recorded in the register of directors’ shareholdings at 21 January 2011, were the
Directors
                                                                                                                                         same as those at 31 December 2010.
The directors of the Company in office at the date of this report are as follows:
                                                                                                                                  (c)    Save as disclosed above, none of the other directors holding office at 31 December 2010 has any interest
Wee Cho Yaw                              -        Chairman                                                                               in the ordinary shares of the Company, the ordinary shares and Executives’ Share Options of UOL and the
Gwee Lian Kheng                          -        Group Chief Executive                                                                  ordinary shares of any other related corporations of the Company, as recorded in the register of directors’
Alan Choe Fook Cheong                                                                                                                    shareholdings.
Lim Kee Ming
Wee Ee Chao                                                                                                                       Directors’ contrActuAl benefits
Low Weng Keong
                                                                                                                                  Since the end of the previous financial year, no director has received or become entitled to receive a benefit by
Wee Wei Ling
                                                                                                                                  reason of a contract made by the Company or a related corporation with the director or with a firm of which he is a
James Koh Cher Siang
                                                                                                                                  member or with a company in which he has a substantial financial interest, except as disclosed in the accompanying
Wee Ee Lim
                                                                                                                                  financial statements and in this report, and except that Mr Gwee Lian Kheng has an employment relationship with
Amedeo Patrick Imbardelli
                                                                                                                                  the holding company and has received remuneration in that capacity.
ArrAngements to enAble Directors to Acquire shAres AnD Debentures
                                                                                                                                  shAre options
Neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose
                                                                                                                                  There were no options granted in respect of unissued ordinary shares of the Company or any subsidiary during the
object was to enable the directors of the Company to acquire benefits by means of the acquisition of shares in, or
                                                                                                                                  financial year.
debentures of, the Company or any other body corporate.
                                                                                                                                  No shares have been issued during the financial year by virtue of the exercise of options to take up unissued ordinary
Directors’ interests in shAres or Debentures
                                                                                                                                  shares of the Company or any subsidiary.
(a)    The directors holding office at 31 December 2010 are also the directors holding office at the date of this report. Their
       interests in the share capital of and options to subscribe for ordinary shares of the Company and related corporations,    There were no unissued ordinary shares of the Company or any subsidiary under option at the end of the
       as recorded in the register of directors’ shareholdings, were as follows:                                                  financial year.

                                                                                                 holdings in which a              AuDit committee
                                                                  holdings registered           director is deemed to
                                                                   in name of director             have an interest               The Audit Committee comprises three members, all of whom are independent and non-executive Directors. The
                                                                         At            At               At             At         Audit Committee members are:
                                                                31.12.2010       1.1.2010      31.12.2010        1.1.2010
                                                                                                                                         Lim Kee Ming - Chairman
       Pan Pacific Hotels Group Limited (“PPHG”)                                                                                         Alan Choe Fook Cheong
       – Ordinary Shares                                                                                                                 Low Weng Keong
         Wee Cho Yaw                                                     –              –     489,440,652* 489,440,652*
         Gwee Lian Kheng                                           171,000        171,000         315,000      315,000            The Audit Committee carries out the functions set out in the Companies Act (Cap. 50). The terms of reference include
                                                                                                                                  reviewing the financial statements, the internal and external audit plans and audit reports, the scope and results of the
         Lim Kee Ming                                               15,000         15,000               –            –
                                                                                                                                  internal audit procedures and proposals for improvements in internal controls, the independent auditor’s report on
         Wee Ee Chao                                                     –              –         892,500      892,500            the weaknesses of internal accounting controls arising from the statutory audit, the cost effectiveness, independence
         Wee Wei Ling                                               27,000         27,000          67,500       67,500            and objectivity of the independent auditor and interested persons transactions.
      Immediate holding company –
      UOL Group Limited (“UOL”)                                                                                                   In performing the functions, the Audit Committee has met with the internal and independent auditors and reviewed
                                                                                                                                  the overall scope of the internal and external audits and the assistance given by Management to the auditors.
      – Ordinary Shares
        Wee Cho Yaw                                              3,388,151*     3,388,151* 228,818,442* 228,818,442*              The Audit Committee has nominated PricewaterhouseCoopers LLP for re-appointment as independent auditor of
        Gwee Lian Kheng                                            388,000        388,000            –            –               the Company at the forthcoming Annual General Meeting.
        Lim Kee Ming                                               348,477        348,477      532,277      532,277
        Wee Ee Chao                                                 30,748*        30,748* 82,820,597* 82,820,597*
        Wee Wei Ling                                               941,493*       941,493*      30,603*      30,603*
        James Koh Cher Siang                                           385            385            –            –
        Wee Ee Lim                                                 241,489        241,489   80,553,452* 80,553,452*
      – Executives’ Share Options
        Gwee Lian Kheng                                            580,000        680,000                  –                –
        Wee Wei Ling                                               126,000        126,000                  –                –
        Amedeo Patrick Imbardelli                                   34,000              –                  –                –
      *   Includes shares registered in the name of nominees.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                                   ANNUAL REPORT 2010
                                                                                            A bRANd
68                                                                                          NEw ERA                                                                                                                                 69



report oF the directors                                                                                        statement by directors
For the financial year ended 31 december 2010                                                                  For the financial year ended 31 december 2010



inDepenDent AuDitor                                                                                            In the opinion of the directors,
The independent auditor, PricewaterhouseCoopers LLP, has expressed its willingness to accept re-appointment.
                                                                                                               (a)    the income statements, statements of comprehensive income, statements of financial position and statements
                                                                                                                      of changes in equity of the Company and of the Group and the consolidated statement of cash flows of the
                                                                                                                      Group as set out on pages 71 to 140 are drawn up so as to give a true and fair view of the state of affairs of the
                                                                                                                      Company and of the Group as at 31 December 2010, of the results of the business and the changes in equity
On behalf of the directors
                                                                                                                      of the Company and of the Group for the financial year then ended; and the cash flows of the Group for the
                                                                                                                      financial year then ended; and

                                                                                                               (b)    at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay
                                                                                                                      its debts as and when they fall due.

Wee cho YAW                                                         gWee liAn Kheng
Chairman                                                            Director
                                                                                                               On behalf of the directors
22 February 2011




                                                                                                               Wee cho YAW                                                               gWee liAn Kheng
                                                                                                               Chairman                                                                  Director

                                                                                                               22 February 2011




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                ANNUAL REPORT 2010
                                                                                                  A bRANd
70                                                                                                NEw ERA                                                                                                                                        71



independent auditor’s report                                                                                             income statements
To the Members of Pan Pacific Hotels Group Limited                                                                       For the financial year ended 31 december 2010



report on the finAnciAl stAtements                                                                                                                                                                            the group             the company
We have audited the accompanying financial statements of Pan Pacific Hotels Group Limited (the “Company”)                                                                                                  2010        2009       2010       2009
and its subsidiaries (the “Group”) set out on pages 71 to 140, which comprise the consolidated statement of                                                                                  note         $’000       $’000      $’000       $’000
financial position of the Group and the statement of financial position of the Company as at 31 December 2010, the
consolidated income statement of the Group, the income statement of the Company, the consolidated statement
of comprehensive income of the Group, the statement of comprehensive income of the Company, the consolidated             Revenue                                                               4        324,242     287,806      66,347     57,602
statement of changes in equity of the Group and the statement of changes in equity of the Company and the                Cost of sales                                                                 (160,649)   (147,347)    (20,692)   (19,672)
consolidated statement of cash flows of the Group for the financial year then ended, and a summary of significant        Gross profit                                                                   163,593     140,459      45,655     37,930
accounting policies and other explanatory information.

mAnAgement’s responsibilitY for the finAnciAl stAtements                                                                 Other income
                                                                                                                         – Finance income                                                      4          3,368       2,505      3,501       4,786
Management is responsible for the preparation and fair presentation of financial statements that give a true and
fair view in accordance with the provisions of the Singapore Companies Act (the “Act”) and Singapore Financial           – Miscellaneous income                                                4          1,987       1,440        619         542
Reporting Standards and for devising and maintaining a system of internal accounting controls sufficient to provide a
reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition, that transactions    Expenses
are properly authorised and that they are recorded as necessary to permit the preparation of true and fair profit and    – Marketing and distribution                                                   (15,805)    (14,343)     (1,423)    (1,063)
loss accounts and balance sheets and to maintain accountability of assets.
                                                                                                                         – Administrative                                                               (36,482)    (31,059)     (7,815)    (6,936)
AuDitor’s responsibilitY                                                                                                 – Finance                                                             8         (6,574)      (3,655)    (2,688)    (1,227)
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our           – Other operating                                                              (50,998)    (45,610)     (7,096)    (5,960)
audit in accordance with Singapore Standards on Auditing. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements        Share of profits of associated companies                              16        1,127        1,067          –           –
are free from material misstatement.                                                                                                                                                                    60,216       50,804     30,753      28,072
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of          Other gains – net                                                     7           156             –     4,108           –
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal controls relevant to the entity’s preparation of financial statements that give a true
and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose     Fair value gains/(losses) on investment
of expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes evaluating the     properties                                                          18        9,979       (1,620)     9,979      (1,620)
appropriateness of accounting policies used and the reasonableness of accounting estimates made by management,           Profit before income tax                                                       70,351       49,184     44,840      26,452
as well as evaluating the overall presentation of the financial statements.
                                                                                                                         Income tax expense                                                    9        (15,131)      (9,109)   (2,586)       (505)
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.                                                                                                           Net profit                                                                      55,220      40,075     42,254      25,947

opinion
In our opinion, the consolidated income statement of the Group, the income statement of the Company, the                 Attributable to:
consolidated statement of comprehensive income of the Group, the statement of comprehensive income of the                Equity holders of the Company                                                  53,640       39,312     42,254      25,947
Company, the consolidated statement of changes in equity of the Group and the statement of changes in equity of          Non-controlling interests                                                       1,580          763          –           –
the Company, the consolidated statement of financial position of the Group and the statement of financial position
of the Company and the consolidated statement of cash flows of the Group are properly drawn up in accordance                                                                                            55,220       40,075     42,254      25,947
with the provisions of the Act and Singapore Financial Reporting Standards so as to give a true and fair view of the
state of affairs of the Company and of the Group as at 31 December 2010, and the results, changes in equity of the
Company and of the Group, and cash flows of the Group for the financial year ended on that date.
                                                                                                                         Earnings per share attributable to equity
Report on Other Legal and Regulatory Requirements                                                                          holders of the Company (expressed in cents
                                                                                                                           per share)
In our opinion, the accounting and other records required by the Act to be kept by the Company and by those              – Basic and diluted                                                   10          8.94        6.55
subsidiaries incorporated in Singapore of which we are the auditors, have been properly kept in accordance with
the provisions of the Act.



PricewaterhouseCoopers LLP
Public Accountants and Certified Public Accountants
Singapore, 22 February 2011



                                                                                                                         The accompanying notes form an integral part of these financial statements.


PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                                ANNUAL REPORT 2010
                                                                                                      A bRANd
72                                                                                                    NEw ERA                                                                                                                                 73



statements oF comprehensive income                                                                                      statements oF Financial position
For the financial year ended 31 december 2010                                                                           As at 31 december 2010



                                                                                   the group           the company                                                                                           the group            the company
                                                                                2010        2009      2010       2009                                                                                    2010         2009       2010       2009
                                                                    note       $’000       $’000     $’000      $’000                                                                       note         $’000       $’000      $’000      $’000
                                                                                                                        ASSETS
Net profit                                                                    55,220      40,075    42,254     25,947   Current assets
                                                                                                                        Cash and bank balances                                                11        57,904      93,117      2,089      9,632
                                                                                                                        Trade and other receivables                                           12        24,619      19,991     16,263     36,505
Other comprehensive (loss)/income:                                                                                      Advances to holding company                                           25        49,630      55,662     49,630     55,662
Fair value (losses)/gains on available for sale                                                                         Inventories                                                           13         1,531       2,580        103        280
  financial assets                                                    15        (865)      5,064      (865)     5,064   Other assets                                                          14        17,153       3,332        237        221
Cash-flow hedges                                                                                                                                                                                       150,837     174,682     68,322    102,300
  – Fair value losses                                               30(d)       (436)       (296)        –          –   Non-current assets
  – Transfer to income statement                                    30(d)        421         194         –          –   Trade and other receivables                                           12             –           –    149,154    257,102
Currency translation differences arising from                                                                           Available-for-sale financial assets                                   15        17,167      18,032     17,167     18,032
  consolidation                                                     30(c)      5,262      32,347         –          –   Investment in associated companies                                    16         7,394       6,954      9,820      9,820
Change in tax rate                                                   28            –         162         –        165   Investment in subsidiaries                                            17             –           –    369,666    201,819
                                                                                                                        Investment properties                                                 18       165,460     155,481    165,460    155,481
Other comprehensive income/(loss),                                                                                      Property, plant and equipment                                         19       480,544     491,716     43,786     41,484
  net of tax                                                                   4,382      37,471      (865)     5,229   Property under construction                                           20       273,778     248,122          –          –
                                                                                                                        Intangibles                                                           21        30,772      27,200        589        204
Total comprehensive income                                                    59,602      77,546    41,389     31,176   Deferred income tax assets                                            28         2,783       3,330          –          –
                                                                                                                                                                                                       977,898     950,835    755,642    683,942
Attributable to:                                                                                                        Total assets                                                                  1,128,735   1,125,517   823,964    786,242
Equity holders of the Company                                                 57,077      70,669    41,389     31,176   LIABILITIES
Non-controlling interests                                                      2,525       6,877         –          –   Current liabilities
                                                                              59,602      77,546    41,389     31,176   Trade and other payables                                              22        61,933      54,273      9,230      9,255
                                                                                                                        Derivative financial instruments                                      24           457           –          –          –
                                                                                                                        Current income tax liabilities                                       9(b)       16,040      14,848      4,308      6,553
                                                                                                                        Borrowings                                                            23        70,663       6,087          –          –
                                                                                                                        Loans from a subsidiary                                               26             –           –          –      4,653
                                                                                                                                                                                                       149,093      75,208     13,538     20,461
                                                                                                                        Non-current liabilities
                                                                                                                        Trade and other payables                                              22         5,125       2,882      2,928      2,715
                                                                                                                        Derivative financial instruments                                      24             –         439          –          –
                                                                                                                        Borrowings                                                            23       120,564     176,031     28,609          –
                                                                                                                        Loans from subsidiaries                                               26             –           –    100,857    106,663
                                                                                                                        Provision for retirement benefits                                     27         2,539       2,316          –          –
                                                                                                                        Deferred income tax liabilities                                       28        49,731      48,222     31,812     30,572
                                                                                                                                                                                                       177,959     229,890    164,206    139,950
                                                                                                                        Total liabilities                                                              327,052     305,098    177,744    160,411
                                                                                                                        NET ASSETS                                                                     801,683     820,419    646,220    625,831
                                                                                                                        EQUITY
                                                                                                                        Capital and reserves attributable to equity
                                                                                                                          holders of the Company
                                                                                                                        Share capital                                                         29       557,333     557,333    557,333    557,333
                                                                                                                        Reserves                                                              30        25,715      22,278     31,181     32,046
                                                                                                                        Retained earnings                                                              218,635     210,866     57,706     36,452
                                                                                                                                                                                                       801,683     790,477    646,220    625,831
                                                                                                                        Non-controlling interests                                                            –      29,942          –          –
                                                                                                                        Total equity                                                                   801,683     820,419    646,220    625,831




The accompanying notes form an integral part of these financial statements.                                             The accompanying notes form an integral part of these financial statements.


PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                              ANNUAL REPORT 2010
                                                                                                              A bRANd
74                                                                                                            NEw ERA                                                                                                                                      75



consolidated statement                                                                                                             statement oF changes in equity
oF changes in equity                                                                                                               For the financial year ended 31 december 2010

For the financial year ended 31 december 2010

                                                                    Attributable to                                                                                                                                share                retained        total
                                                            equity holders of the company                                                                                                                         capital   reserves    earnings      equity
                                                                                                              non–                                                                                       note      $’000       $’000       $’000       $’000
                                                    share                         retained              controlling       total
                                                   capital        reserves        earnings        total   interests     equity     2010
                                  note              $’000            $’000           $’000       $’000       $’000       $’000     Beginning of financial year                                                   557,333     32,046      36,452      625,831

2010                                                                                                                               Dividends relating to 2009                                              31          –           –      (21,000)    (21,000)
Beginning of
  financial year                                 557,333             22,278       210,866      790,477      29,942     820,419
                                                                                                                                   Total comprehensive (loss)/income for the year                                      –        (865)     42,254       41,389
                                                                                                                                   End of financial year                                                         557,333     31,181      57,706      646,220
Dividends relating
  to 2009                           31                     –                  –     (21,000)    (21,000)    (11,271)    (32,271)

Purchase of shares in                                                                                                              2009
  subsidiaries from                                                                                                                Beginning of financial year                                                   557,333      26,817      34,505     618,655
  non-controlling
  interests                                                –                  –     (24,871)    (24,871)    (21,196)    (46,067)   Dividends relating to 2008                                              31          –           –      (24,000)    (24,000)

Total comprehensive                                                                                                                Total comprehensive income for the year                                             –       5,229      25,947      31,176
  income for the year                                  –               3,437        53,640       57,077       2,525      59,602
                                                                                                                                   End of financial year                                                         557,333      32,046      36,452     625,831
End of financial year                            557,333             25,715       218,635      801,683            –    801,683
                                                                                                                                   An analysis of movements in each category within “Reserves” is presented in Note 30.

2009
Beginning of
  financial year                                   557,333             (9,079)     195,554     743,808       23,463    767,271

Dividends relating
  to 2008                           31                     –                  –     (24,000)    (24,000)       (398)    (24,398)

Total comprehensive
  income for the year                                  –              31,357        39,312       70,669       6,877      77,546
End of financial year                            557,333             22,278       210,866      790,477      29,942     820,419

An analysis of movements in each category within “Reserves” is presented in Note 30.




The accompanying notes form an integral part of these financial statements.                                                        The accompanying notes form an integral part of these financial statements.


PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                                         ANNUAL REPORT 2010
                                                                                            A bRANd
76                                                                                          NEw ERA                                                                                                                                   77



consolidated statement oF cash Flows                                                                            notes to the Financial statements
For the financial year ended 31 december 2010                                                                   For the financial year ended 31 december 2010



                                                                                                                These notes form an integral part of and should be read in conjunction with the accompanying financial statements.
                                                                                           2010        2009
                                                                                 note     $’000       $’000
                                                                                                                1.    generAl informAtion
Cash flows from operating activities                                                                                  Pan Pacific Hotels Group Limited (the “Company”) is incorporated and domiciled in Singapore and its shares
Net profit                                                                               55,220      40,075           are publicly traded on the Singapore Exchange. The address of its registered office is 101 Thomson Road,
Adjustments for:                                                                                                      #33-00, United Square, Singapore 307591. The principal place of business of the Company is 238A Thomson
– Income tax expense                                                                     15,131        9,109          Road, #08-00, Novena Square Office Tower A, Singapore 307684.
– Depreciation and amortisation                                                          33,592      32,331
– Property, plant and equipment written off and net loss on disposals                     1,992        1,166          The principal activities of the Company are those of an hotelier, property owner and the holding of investments.
– Fair value (gain)/loss on investment properties                                        (9,979)       1,620          The principal activities of its subsidiaries are set out in Note 17.
– Interest income                                                                        (3,368)      (2,505)
– Dividend income                                                                          (741)        (142)   2.    significAnt Accounting policies
– Interest expense                                                                        3,124        3,034
– Net provision for retirement benefits                                                     343          290    2.1   Basis of preparation
– Share of profit of associated companies                                                (1,127)      (1,067)
– Unrealised translation gain                                                             3,406        2,298          These financial statements have been prepared in accordance with Singapore Financial Reporting Standards
– Gain on liquidation of investment in a subsidiary                                        (156)           –          (“FRS”). The financial statements have been prepared under the historical cost convention, except as disclosed
Operating cash flow before working capital changes                                       97,437      86,209           in the accounting policies below.
Change in operating assets and liabilities, net of effects from acquisition of                                        The preparation of financial statements in conformity with FRS requires management to exercise its judgement
  subsidiaries                                                                                                        in the process of applying the Group’s accounting policies. It also requires the use of certain critical accounting
– Inventories                                                                              1,049        259           estimates and assumptions. The areas involving a higher degree of judgement or complexity, or areas where
– Receivables                                                                            (18,583)       989           assumptions and estimates are significant to the financial statements, are disclosed in Note 3.
– Payables                                                                                10,009      1,158
Cash generated from operations                                                            89,912     88,615           Interpretations and amendments to published standards effective in 2010
Income tax paid – net                                                                    (12,739)   (13,979)
Retirement benefits paid                                                                    (179)        (61)         On 1 January 2010, the Group adopted the new or amended FRS that are mandatory for application from
Net cash from operating activities                                                        76,994     74,575           that date. Changes to the Group’s accounting policies have been made as required, in accordance with the
Cash flows from investing activities                                                                                  transitional provisions in the respective FRS.
Acquisition of subsidiaries, net of cash acquired                                11(c)         –          69
Repayment of loans from an associated company                                                  –       4,155          The adoption of these new or amended FRS did not result in substantial changes to the Group’s and Company’s
Advances to holding company                                                                5,025    (55,555)          accounting policies and had no material effect on the amounts reported for the current or prior financial years,
Payment for intangible assets                                                             (4,474)          –          except for the following:
Net proceeds from disposal of property, plant and equipment                                  139         178
Purchase of investment property and property, plant and equipment                        (21,398)   (21,314)          (a)    FRS 103 (revised) Business Combinations (effective for annual periods beginning on or after 1 July 2009)
Expenditure on property under construction                                               (23,505)     (8,802)
Interest received                                                                          4,375       2,398                 Please refer to note 2.3(a)(ii) for the revised accounting policy on business combinations which the Group
Dividend received                                                                            873       2,246                 has adopted.
Net cash used in investing activities                                                    (38,965)   (76,625)
                                                                                                                             As the changes have been implemented prospectively, no adjustments were necessary to any of the
Cash flows from financing activities                                                                                         amounts previously recognised in the financial statements. These changes do not have any material
Proceeds from borrowings                                                                  30,522    114,173                  impact on the financial statements for the current financial year.
Repayment of borrowings                                                                  (22,253)    (44,495)
Expenditure on long term borrowings                                                         (239)     (1,680)         (b)    FRS 27 (revised) Consolidated and Separate Financial Statements (effective for annual periods beginning
Interest paid                                                                             (4,376)     (4,733)                on or after 1 July 2009)
Dividends paid to shareholders of the Company                                            (21,000)   (24,000)
Dividends paid to non-controlling interests of subsidiaries                              (11,272)       (398)                The revisions to FRS 27 principally change the accounting for transactions with non-controlling interests.
Purchase of shares in subsidiaries from non-controlling interests                        (46,067)          –                 Please refer to Notes 2.3(a)(iii) for the revised accounting policy on changes in ownership interest that
Net cash (used in)/from financing activities                                             (74,685)     38,867                 results in a lost of control and 2.3(b) for that on changes in ownership interests that do not result in lost
                                                                                                                             of control.
Net (decrease)/increase in cash and cash equivalents                                     (36,656)    36,817
Cash and cash equivalents at the beginning of the financial year                          93,117     48,948
                                                                                                                             As the changes have been implemented prospectively, no adjustments were necessary to any of the
Effects of currency translation on cash and cash equivalents                               1,434      7,352
                                                                                                                             amounts previously recognised in the financial statements.
Cash and cash equivalents at the end of the financial year                       11(a)    57,895     93,117




The accompanying notes form an integral part of these financial statements.


PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                 ANNUAL REPORT 2010
                                                                                                     A bRANd
78                                                                                                   NEw ERA                                                                                                                                   79



notes to the Financial statements                                                                                            notes to the Financial statements
For the financial year ended 31 december 2010                                                                                For the financial year ended 31 december 2010



2.    significAnt Accounting policies (continueD)                                                                            2.    significAnt Accounting policies (continueD)
2.1   Basis of preparation (continued)                                                                                       2.2   Revenue recognition (continued)

      (b)    FRS 27 (revised) Consolidated and Separate Financial Statements (effective for annual periods beginning               (b)   Revenue from hotel management services
             on or after 1 July 2009) (continued)
                                                                                                                                         Revenue from hotel management services includes property and project management fees, hotel
             In the current financial year, the Group purchased the remaining 40% interest in a subsidiary, Success                      management fees, franchise fees and other hotel management related fees.
             Venture Investments (Australia) Ltd and 5% interest in a subsidiary, Success City Pty Limited from non-
             controlling interests. The revised accounting policy was applied to account for these transactions. The                     (i)     Management fees
             difference between the change in the carrying amounts of the non-controlling interests and the fair
             value of the considerations paid, relating to the purchase of interest in Success City Pty Limited was not                          Management fees earned from hotels managed by the Group, usually under long-term contracts
             significant, while that relating to the purchase of interest in Success Venture Investments (Australia) Ltd,                        with the hotel owner, are recognised when services are rendered under the terms of the contract.
             amounting to $24,871,000 was recognised in retained profits. Previously, such difference would have                                 The fees include a base fee, which is generally a percentage of hotel revenue, and/or an incentive
             been recognised as intangible assets – goodwill.                                                                                    fee, which is generally based on the hotel’s profitability.

      (c)    Amendment to FRS 28 Investments in Associates (effective for annual periods beginning on or after                           (ii)    Franchise fees
             1 July 2009)
                                                                                                                                                 Franchise fees received in connection with licensing of the Group’s brand names, usually under
             On partial disposal of an associated company associated with the loss of significant influence, the                                 long-term contracts with the hotel owner, are recognised when services are rendered under the
             amendment requires the retained investment in associated companies to be measured at fair value. The                                terms of the agreement. The Group generally charges franchise fees as a percentage of hotel
             difference between the carrying amount of the retained investment and its fair value is recognised in the                           revenue.
             income statement.
                                                                                                                                         (iii)   Other hotel management related fees
             As the changes have been implemented prospectively, no adjustments were necessary to any of the
             amounts previously recognised in the financial statements. These changes do not have any material                                   Other related fees earned from hotels managed by the Group are recognised when services are
             impact on the financial statements for the current financial year.                                                                  rendered under the terms of the contract.

      (d)    Amendment to FRS 38 Intangible Assets (effective for annual periods beginning on or after 1 July 2009)                (c)   Revenue from property investments - rental income

             Under the amendment, it includes specific references to the more commonly used methods of valuing                           Rental income from operating leases (net of any incentives given to the lessees) on investment properties
             intangible assets: market comparisons using multiples, discounted cash flow (including the relief from                      is recognised on a straight-line basis over the lease term.
             royalty method) and the replacement cost approach. This change has been applied prospectively. It
             had no material effect on the financial statements for the current or prior year                                      (d)   Dividend income

2.2   Revenue recognition                                                                                                                Dividend income is recognised when the right to receive payment is established.

      Revenue for the Group comprises the fair value of the consideration received or receivable for the sale of                   (e)   Interest income
      goods and rendering of services in the ordinary course of the Group’s activities. Revenue is presented, net of
      goods and services tax, rebates and discounts, and after eliminating sales within the Group.                                       Interest income is recognised using the effective interest method.

      The Group recognises revenue when the amount of revenue and related cost can be reliably measured, it is               2.3   Group accounting
      probable that the collectability of the related receivables is reasonably assured and when the specific criteria for
      each of the Group’s activities are met as follows:                                                                           (a)   Subsidiaries

      (a)    Revenue from hotel ownership and operation                                                                                  (i)     Consolidation

             Revenue from the ownership and operation of hotels is recognised at the point at which the                                          Subsidiaries are entities over which the Group has power to govern the financial and operating
             accommodation and related services are provided.                                                                                    policies, generally accompanied by a shareholding giving rise to a majority of the voting rights.
                                                                                                                                                 The existence and effect of potential voting rights that are currently exercisable or convertible
                                                                                                                                                 are considered when assessing whether the Group controls another entity.

                                                                                                                                                 Subsidiaries are consolidated from the date on which control is transferred to the Group. They
                                                                                                                                                 are de-consolidated from the date on which control ceases.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                           ANNUAL REPORT 2010
                                                                                                   A bRANd
80                                                                                                 NEw ERA                                                                                                                                      81



notes to the Financial statements                                                                                          notes to the Financial statements
For the financial year ended 31 december 2010                                                                              For the financial year ended 31 december 2010



2.    significAnt Accounting policies (continueD)                                                                          2.    significAnt Accounting policies (continueD)
2.3   Group accounting (continued)                                                                                         2.3   Group accounting (continued)

      (a)   Subsidiaries (continued)                                                                                             (a)   Subsidiaries (continued)

            (i)     Consolidation (continued)                                                                                          (iii)   Disposals of subsidiaries or businesses (continued)

                    In preparing the consolidated financial statements, transactions, balances and unrealised gains                            Please refer to the paragraph “Investments in subsidiaries and associated companies” for
                    on transactions between group companies are eliminated. Unrealised losses are also eliminated                              the accounting policy on investments in subsidiaries in the separate financial statements of
                    but are considered an impairment indicator of the asset transferred. Accounting policies of                                the Company.
                    subsidiaries have been changed where necessary to ensure consistency with the policies adopted
                    by the Group.                                                                                                (b)   Transactions with non-controlling interests

                    Non-controlling interests are that part of the net results of operations and of net assets of a                    Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control
                    subsidiary attributable to the interests which are not owned directly or indirectly by the equity                  over the subsidiary are accounted for as transactions with equity owners of the Group. Any difference
                    holders of the Company. They are shown separately in the consolidated income statement,                            between the change in the carrying amounts of the non-controlling interest and the fair value of the
                    consolidated statement of comprehensive income, consolidated statement of changes in equity                        consideration paid or received is recognised in retained profits.
                    and the consolidated statement of financial position of the Group. Total comprehensive income
                    is attributed to the non-controlling interests based on their respective interests in a subsidiary,          (c)   Associated companies
                    even if this results in the non-controlling interests having a deficit balance.
                                                                                                                                       Associated companies are entities over which the Group has significant influence, but not control, and
            (ii)    Acquisition of businesses                                                                                          generally accompanied by a shareholding giving rise to between and including 20% and 50% of the
                                                                                                                                       voting rights. Investments in associated companies are accounted for in the consolidated financial
                    The acquisition method of accounting is used to account for business combinations (including                       statements using the equity method of accounting less impairment losses.
                    business combinations under common control) by the Group.
                                                                                                                                       Investments in associated companies are initially recognised at cost. The cost of an acquisition is
                    The consideration transferred for the acquisition of a subsidiary comprises the fair value of the                  measured at the fair value of the assets given, equity instruments issued or liabilities incurred or assumed
                    assets transferred, the liabilities incurred and the equity interests issued by the Group. The                     at the date of exchange, plus costs directly attributable to the acquisition. Goodwill on associated
                    consideration transferred also includes the fair value of any contingent consideration arrangement                 companies represents the excess to the cost of acquisition of the associate over the Group’s share of
                    and the fair value of any pre-existing equity interest in the subsidiary.                                          the fair value of the identifiable net assets of the associate and is included in the carrying amount of
                                                                                                                                       the investments.
                    Identifiable assets acquired and liabilities and contingent liabilities assumed in a business
                    combination are, with limited exceptions, measured initially at their fair values at the acquisition               In applying the equity method of accounting, the Group’s share of its associated companies’ post-
                    date.                                                                                                              acquisition profits or losses is recognised in the income statement and its share of post-acquisition
                                                                                                                                       movements in reserves is recognised in equity directly. These post-acquisition movements and dividends
                    On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in                       are adjusted against the carrying amount of the investment. When the Group’s share of losses in an
                    the acquiree at the date of acquisition either at fair value or at the non-controlling interest’s                  associated company equals or exceeds its interest in the associated company, including any other
                    proportionate share of the acquiree’s net identifiable assets.                                                     unsecured non-current receivables, the Group does not recognise further losses, unless it has obligations
                                                                                                                                       or has made payments on behalf of the associated company.
                    The excess of the consideration transferred, the amount of any non-controlling interest in the
                    acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over                  Unrealised gains on transactions between the Group and its associated companies are eliminated to
                    the fair value of the net identifiable assets acquired is recorded as goodwill. Please refer to the                the extent of the Group’s interest in the associated companies. Unrealised losses are also eliminated
                    paragraph “Intangible assets - Goodwill” for the subsequent accounting policy on goodwill.                         unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies
                                                                                                                                       of associated companies have been changed where necessary to ensure consistency with the accounting
            (iii)   Disposals of subsidiaries or businesses                                                                            policies adopted by the Group.

                    When a change in the Company’s ownership interest in a subsidiary results in a loss of control                     Gains and losses arising from partial disposals or dilutions in investments in associated companies are
                    over the subsidiary, the assets and liabilities of the subsidiary including any goodwill are                       recognised in the income statement.
                    derecognised. Amounts recognised in other comprehensive income in respect of that entity are
                    also reclassified to the income statement or transferred directly to retained earnings if required                 Investments in associated companies are derecognised when the Group loses significant influence. Any
                    by a specific Standard.                                                                                            retained interest in the entity is remeasured at its fair value. The difference between the carrying amount
                                                                                                                                       of the retained investment at the date when significant influence is lost and its fair value is recognised
                    Any retained interest in the entity is remeasured at fair value. The difference between the carrying               in the income statement.
                    amount of the retained investment at the date when control is lost and its fair value is recognised
                    in the income statement.                                                                                           Please refer to the paragraph “Investments in subsidiaries and associated companies” for the accounting
                                                                                                                                       policy on investments in associated companies in the separate financial statements of the Company.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                           ANNUAL REPORT 2010
                                                                                                   A bRANd
82                                                                                                 NEw ERA                                                                                                                                       83



notes to the Financial statements                                                                                          notes to the Financial statements
For the financial year ended 31 december 2010                                                                              For the financial year ended 31 december 2010



2.    significAnt Accounting policies (continueD)                                                                          2.    significAnt Accounting policies (continueD)
2.4   Property, plant and equipment                                                                                        2.4   Property, plant and equipment (continued)

      (a)   Measurement                                                                                                          (c)   Subsequent expenditure

            (i)     Land and buildings                                                                                                 Subsequent expenditure relating to property, plant and equipment that has already been recognised
                                                                                                                                       is added to the carrying amount of the asset only when it is probable that future economic benefits
                    Land and buildings are initially recognised at cost. Certain leasehold land and buildings                          associated with the item will flow to the Group and the cost of the item can be measured reliably. All
                    comprising hotel properties were subsequently revalued in 1985, in accordance with a valuation                     other repair and maintenance expenses are recognised in the income statement when incurred.
                    by an independent professional firm of valuers on their existing use basis. The valuation was done
                    in 1985. However, a decision was then made that future valuations of hotel properties would not              (d)   Disposal
                    be recognised in the financial statements.
                                                                                                                                       On disposal of an item of property, plant and equipment, the difference between the disposal proceeds
                    Freehold land is subsequently carried at cost less accumulated impairment losses. Leasehold                        and its carrying amount is recognised in the income statement. Any amount in revaluation reserve
                    land and buildings are subsequently carried at cost or valuation less accumulated depreciation                     relating to that asset is transferred to retained earnings directly.
                    and accumulated impairment losses.
                                                                                                                           2.5   Intangibles
            (ii)    Property under construction
                                                                                                                                 (a)   Goodwill on acquisitions
                    Property under construction is carried at cost less accumulated impairment losses until
                    construction is completed at which time depreciation will commence over its estimated useful                       Goodwill on acquisitions of subsidiaries on or after 1 January 2010 represents the excess of the
                    life.                                                                                                              consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-
                                                                                                                                       date fair value of any previous equity interest in the acquiree over the fair value of the net identifiable
            (iii)   Other property, plant and equipment                                                                                assets acquired.

                    Plant, equipment, furniture and fittings and motor vehicles are initially recognised at cost and                   If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired and
                    subsequently carried at cost less accumulated depreciation and accumulated impairment                              the measurement of all amounts has been reviewed, the difference (“negative goodwill”) is recognised
                    losses.                                                                                                            directly in the income statement as a bargain purchase.

            (iv)    Components of costs                                                                                                Goodwill on acquisitions of subsidiaries prior to 1 January 2010 and on acquisition of associated
                                                                                                                                       companies represents the excess of the cost of an acquisition over the fair value of the Group’s share
                    The cost of an item of property, plant and equipment initially recognised includes its purchase                    of the identifiable assets, liabilities and contingent liabilities of the acquired subsidiaries and associated
                    price and any cost that is directly attributable to bringing the asset to the location and condition               companies at the date of acquisition.
                    necessary for it to be capable of operating in the manner intended by management, including
                    borrowing costs incurred for the properties under development. The projected cost of                               Goodwill on subsidiaries is recognised separately as intangible assets and carried at cost less
                    dismantlement, removal or restoration is also recognised as part of the cost of property, plant                    accumulated impairment losses. Goodwill on associated companies is included in the carrying amount
                    and equipment if the obligation for the dismantlement, removal or restoration is incurred as a                     of the investments.
                    consequence of either acquiring the asset or using the asset for purpose other than to produce
                    inventories.                                                                                                       Gains and losses on the disposal of the subsidiaries and associated companies include the carrying
                                                                                                                                       amount of goodwill relating to the entity sold.
      (b)   Depreciation
                                                                                                                                 (b)   Trademark
            Freehold land, property under construction and renovation in progress are not depreciated. Leasehold
            land is amortised evenly over the term of the lease. (Please refer to Note 19(d) for the lease period of                   Acquired trademarks are initially recognised at cost and are subsequently carried at cost less accumulated
            each property.)                                                                                                            amortisation and accumulated impairment losses. These costs are amortised to the income statement
                                                                                                                                       using the straight-line method over their estimated useful lives of 10 to 20 years.
            Depreciation on other items of property, plant and equipment is calculated using the straight-line
            method to allocate their depreciable amounts over their estimated useful lives as follows:                                 The amortisation period and amortisation method of intangible assets other than goodwill are reviewed
                                                                                                                                       at least at the end of each reporting period. The effects of any revision are recognised in the income
                                                                     Useful lives                                                      statement when the changes arise.
            Buildings                                                50 years or period of the lease,
                                                                     whichever is shorter
            Plant, equipment, furniture and fittings                 3 to 20 years
            Motor vehicles                                           7 years

            The residual values, estimated useful lives and depreciation method of property, plant and equipment
            are reviewed, and adjusted as appropriate, at the end of each reporting period. The effects of any
            revision are recognised in the income statement when the changes arise.



PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                            ANNUAL REPORT 2010
                                                                                                  A bRANd
84                                                                                                NEw ERA                                                                                                                                  85



notes to the Financial statements                                                                                         notes to the Financial statements
For the financial year ended 31 december 2010                                                                             For the financial year ended 31 december 2010



2.    significAnt Accounting policies (continueD)                                                                         2.    significAnt Accounting policies (continueD)
2.5   Intangibles (continued)                                                                                             2.8   Investments in subsidiaries and associated companies

      (c)    Acquired computer software costs                                                                                   Investments in subsidiaries and associated companies are carried at cost less accumulated impairment losses
                                                                                                                                in the Company’s statement of financial position. On disposal of investments in subsidiaries and associated
             Acquired computer software costs are initially capitalised at cost which includes the purchase price               companies, the difference between disposal proceeds and the carrying amounts of the investments are
             (net of any discounts and rebates) and other directly attributable cost of preparing the asset for its             recognised in the income statement.
             intended use. Direct expenditure includes employee costs, which enhances or extends the performance
             of computer software beyond its specifications and which can be reliably measured, is added to the           2.9   Impairment of non-financial assets
             original cost of the software. Costs associated with maintaining the computer software are recognised
             as an expense when incurred.                                                                                       (a)   Goodwill

             Computer software is subsequently carried at cost less accumulated amortisation and accumulated                          Goodwill is tested for impairment annually, and whenever there is indication that the goodwill may
             impairment losses. Computer software that is under development is not amortised. These costs are                         be impaired.
             amortised to profit or loss using the straight-line method over their estimated useful lives of three to
             five years.                                                                                                              For the purpose of impairment testing of goodwill, goodwill is allocated to each of the Group’s cash-
                                                                                                                                      generating units (“CGU”) expected to benefit from synergies arising from the business combination.
      (d)    Contract acquisition costs
                                                                                                                                      An impairment loss is recognised when the carrying amount of a CGU, including the goodwill, exceeds
             Directly attributable costs incurred in the securing of management contracts or franchise agreements                     the recoverable amount of the CGU. The recoverable amount of a CGU is the higher of the CGU’s fair
             are capitalised as intangibles. These costs do not represent a physical asset which the Group has legal                  value less cost to sell and value-in-use.
             title to. They represent costs incurred to obtain a legal contractual right.
                                                                                                                                      The total impairment loss of a CGU is allocated first to reduce the carrying amount of goodwill allocated
             The directly attributable costs are amortised to the income statement using the straight-line method                     to the CGU and then to the other assets of the CGU pro-rata on the basis of the carrying amount of
             over the number of years of the management contract or franchise agreement they relate to. They are                      each asset in the CGU.
             also reviewed for impairment when events or changes in circumstances indicate that the carrying value
             may not be recoverable.                                                                                                  An impairment loss on goodwill is recognised in the income statement and is not reversed in a
                                                                                                                                      subsequent period.
2.6   Borrowing costs
                                                                                                                                (b)   Intangibles
      Borrowing costs are recognised in the income statement using the effective interest method except for those                     Property, plant and equipment
      costs that are directly attributable to the construction or development of properties. This includes those costs                Investments in subsidiaries and associated companies
      on borrowings acquired specifically for the construction or development of properties, as well as those in
      relation to general borrowings used to finance the construction or development of properties.                                   Intangibles, property, plant and equipment and investments in subsidiaries and associated companies
                                                                                                                                      are tested for impairment whenever there is any objective evidence or indication that these assets may
      The actual borrowing costs incurred during the period up to the issuance of the temporary occupation permit                     be impaired.
      less any investment income on temporary investments of these borrowings are capitalised in the cost of the
      property under construction. Borrowing costs on general borrowings are capitalised by applying a capitalisation                 For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less
      rate to construction or development expenditures that are financed by general borrowings.                                       cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not
                                                                                                                                      generate cash flows that are largely independent of those from other assets. If this is the case, the
2.7   Investment properties                                                                                                           recoverable amount is determined for the CGU to which the asset belongs.

      Investment properties include those land and buildings or portions of buildings that are held for long-term                     If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the
      rental yields and/or for capital appreciation and land under operating leases that are held for long-term capital               carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between
      appreciation or for a currently indeterminate use.                                                                              the carrying amount and recoverable amount is recognised as an impairment loss in the income
                                                                                                                                      statement.
      Investment properties are initially recognised at cost and subsequently carried at fair value, determined semi-
      annually by independent professional valuers on the highest-and-best-use basis. Changes in fair values are                      An impairment loss for an asset other than goodwill is reversed if, and only if, there has been a
      recognised in the income statement.                                                                                             change in the estimates used to determine the assets’ recoverable amount since the last impairment
                                                                                                                                      loss was recognised. The carrying amount of an asset other than goodwill is increased to its revised
      Investment properties are subject to renovations or improvements at regular intervals. The cost of major                        recoverable amount, provided that this amount does not exceed the carrying amount that would have
      renovations and improvements is capitalised and the carrying amounts of the replaced components are                             been determined (net of any accumulated amortisation or depreciation) had no impairment loss been
      recognised in the income statement. The cost of maintenance, repairs and minor improvements is charged                          recognised for the asset in prior years.
      to the income statement when incurred.
                                                                                                                                      A reversal of impairment loss for an asset other than goodwill is recognised in the income statement.
      On disposal of an investment property, the difference between the disposal proceeds and the carrying amount
      is recognised in the income statement.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                       ANNUAL REPORT 2010
                                                                                                   A bRANd
86                                                                                                 NEw ERA                                                                                                                                     87



notes to the Financial statements                                                                                          notes to the Financial statements
For the financial year ended 31 december 2010                                                                              For the financial year ended 31 december 2010



2.     significAnt Accounting policies (continueD)                                                                         2.     significAnt Accounting policies (continueD)
2.10   Financial assets                                                                                                    2.10   Financial assets (continued)

       (a)   Classification                                                                                                       (d)   Impairment

             The Group classifies its financial assets in the following categories: loans and receivables and available-                The Group assesses at the end of each reporting period whether there is objective evidence that a
             for-sale. The classification depends on the nature of the asset and the purpose for which the assets were                  financial asset or a group of financial assets is impaired and recognises an allowance for impairment
             acquired. Management determines the classification of its financial assets at initial recognition.                         when such evidence exists.

             (i)    Loans and receivables                                                                                               (i)    Loans and receivables

                    Loans and receivables are non-derivative financial assets with fixed or determinable payments                              Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy,
                    that are not quoted in an active market. They are presented as current assets, except for those                            and default or significant delay in payments are objective evidence that these financial assets
                    maturing later than twelve months after the end of the reporting period which are presented as                             are impaired.
                    non-current assets. Loans and receivables are presented as “trade and other receivables” and
                    “cash and bank balances”, “advances to holding company” and deposits within “other assets”                                 The carrying amount of these assets is reduced through the use of an impairment allowance
                    on the statement of financial position.                                                                                    account which is calculated as the difference between the carrying amount and the present
                                                                                                                                               value of estimated future cash flows, discounted at the original effective interest rate. When
             (ii)   Available-for-sale financial assets                                                                                        the asset becomes uncollectible, it is written off against the allowance account. Subsequent
                                                                                                                                               recoveries of amounts previously written off are recognised against the same line item in the
                    Available-for-sale financial assets are non-derivatives that are either designated in this category                        income statement.
                    or not classified in any of the other categories. They are presented as non-current assets unless
                    management intends to dispose of the assets within twelve months after the end of the reporting                            The allowance for impairment loss account is reduced through the income statement in a
                    period.                                                                                                                    subsequent period when the amount of impairment loss decreases and the related decrease can
                                                                                                                                               be objectively measured. The carrying amount of the asset previously impaired is increased to
       (b)   Recognition and derecognition                                                                                                     the extent that the new carrying amount does not exceed the amortised cost had no impairment
                                                                                                                                               been recognised in prior periods.
             Purchases and sales of financial assets are recognised on trade-date – the date on which the Group
             commits to purchase or sell the asset.                                                                                     (ii)   Available-for-sale financial assets

             Financial assets are derecognised when the rights to receive cash flows from the financial assets have                            In addition to the objective evidence of impairment described in Note 2.10(d)(i), a significant
             expired or have been transferred and the Group has transferred substantially all risks and rewards of                             or prolonged decline in the fair value of an equity security below its cost is considered as an
             ownership.                                                                                                                        indicator that the available-for-sale financial asset is impaired.

             On disposal of a financial asset, the difference between the carrying amount and the sale proceeds                                If any evidence of impairment exists, the cumulative loss that was recognised in other
             is recognised in the income statement. Any amount in the fair value reserve relating to that asset is                             comprehensive income is reclassified to the income statement. The cumulative loss is measured
             transferred to the income statement.                                                                                              as the difference between the acquisition cost (net of any principal repayments and amortisation)
                                                                                                                                               and the current fair value, less any impairment loss previously recognised as an expense. The
       (c)   Measurement                                                                                                                       impairment losses recognised as an expense on equity securities are not reversed through the
                                                                                                                                               income statement.
             Financial assets are initially recognised at fair value plus transaction costs.
                                                                                                                           2.11   Financial guarantees
             Available-for-sale financial assets are subsequently carried at fair value. Loans and receivables are
             subsequently carried at amortised cost using the effective interest method.                                          The Company has issued corporate guarantees to banks for borrowings of its subsidiaries and associated
                                                                                                                                  companies. These guarantees are financial guarantees as they require the Company to reimburse the banks if
             Dividend income on available-for-sale financial assets is recognised separately in the income statement.             the subsidiaries or associated companies fail to make principal or interest payments when due in accordance
             Changes in fair values of available-for-sale equity securities (i.e. non-monetary items) are recognised in           with the terms of their borrowings.
             other comprehensive income.
                                                                                                                                  Financial guarantees are initially recognised at their fair values plus transaction costs in the Company’s
                                                                                                                                  statement of financial position except when the fair value is determined to be insignificant.

                                                                                                                                  Financial guarantees are subsequently amortised to the income statement over the period of the subsidiaries’
                                                                                                                                  or associated companies’ borrowings, unless it is probable that the Company will reimburse the bank for an
                                                                                                                                  amount higher than the unamortised amount. In this case, the financial guarantees shall be carried at the
                                                                                                                                  expected amount payable to the bank in the Company’s statement of financial position.

                                                                                                                                  Intra-group transactions are eliminated on consolidation.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                           ANNUAL REPORT 2010
                                                                                                      A bRANd
88                                                                                                    NEw ERA                                                                                                                                         89



notes to the Financial statements                                                                                             notes to the Financial statements
For the financial year ended 31 december 2010                                                                                 For the financial year ended 31 december 2010



2.     significAnt Accounting policies (continueD)                                                                            2.     significAnt Accounting policies (continueD)
2.12   Borrowings                                                                                                             2.15   Fair value estimation of financial assets and liabilities (continued)

       Borrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement               The fair values of financial instruments that are not traded in an active market are determined by using valuation
       for at least twelve months after the end of the reporting period.                                                             techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions
                                                                                                                                     existing at the end of each reporting period. Where appropriate, quoted market prices or dealer quotes for
       Borrowings are initially recognised at fair value (net of transaction costs) and subsequently carried at amortised            similar instruments are used. Valuation techniques, such as estimated discounted cash flow analyses, are also
       cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised                   used to determine the fair values of the financial instruments.
       in the income statement over the period of the borrowings using the effective interest method.
                                                                                                                                     The fair values of interest rate swaps are calculated as the present value of the estimated future cash flows
2.13   Trade and other payables                                                                                                      discounted at actively quoted interest rates.

       Trade and other payables are initially recognised at fair value, and subsequently carried at amortised cost                   The fair values of current financial assets and liabilities carried at amortised cost approximate their
       using the effective interest method.                                                                                          carrying amounts.

2.14   Derivative financial instruments and hedging activities                                                                2.16   Leases

       A derivative financial instrument is initially recognised at its fair value on the date the contract is entered into          Operating leases
       and is subsequently carried at its fair value. The method of recognising the resulting gain or loss depends
       on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being                      (a)      When the Group is the lessee:
       hedged.
                                                                                                                                              The Group leases certain property, plant and equipment from non-related parties.
       The Group documents at the inception of the transaction the relationship between the hedging instruments
       and hedged items, as well as its risk management objective and strategies for undertaking various hedge                                Leases of property, plant and equipment where substantially all risks and rewards incidental to ownership
       transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis,                                are retained by the lessors are classified as operating leases. Payments made under operating leases (net
       of whether the derivatives designated as hedging instruments are highly effective in offsetting changes in fair                        of any incentives received from the lessors) are recognised in the income statement on a straight-line basis
       value or cash flows of the hedged items.                                                                                               over the period of the lease.

       The Group has designated its derivative financial instrument as a cash flow hedge. Fair value changes on                      (b)      When the Group is the lessor:
       derivatives that are not designated or do not qualify for hedge accounting are recognised in the income
       statement when the changes arise.                                                                                                      The Group leases out certain investment properties to non-related parties.

       Cash flow hedge - Interest rate swaps                                                                                                  Leases of investment properties where the Group retains substantially all risks and rewards incidental to
                                                                                                                                              ownership are classified as operating leases. Rental income from operating leases (net of any incentives
       The Group has entered into interest rate swaps that are cash flow hedges for the Group’s exposure to interest                          given to the lessees) is recognised in the income statement on a straight-line basis over the lease term.
       rate risk on its borrowings. These contracts entitle the Group to receive interest at floating rates on notional
       principal amounts and oblige the Group to pay interest at fixed rates on the same notional principal amounts,                          Initial direct costs incurred by the Group in negotiating and arranging operating leases are added to the
       thus allowing the Group to raise borrowings at floating rates and swap them into fixed rates.                                          carrying amount of the leased assets and recognised as an expense in the income statement over the
                                                                                                                                              lease term on the same basis as the lease income.
       The fair value changes on the effective portion of interest rate swaps designated as cash flow hedges are
       recognised in other comprehensive income and transferred to the income statement when the interest expense                             Contingent rents are recognised as income in the income statement when earned.
       on the borrowings is recognised in the income statement. The fair value changes on the ineffective portion of
       interest rate swaps are recognised immediately in the income statement.                                                2.17   Inventories

       The carrying amount of a derivative designated as a hedge is presented as a non-current asset or liability if                 Inventories are carried at the lower of cost and net realisable value. Cost is determined using the first-in,
       the remaining expected life of the hedged item is more than twelve months, and as a current asset or liability                first-out method and includes all costs in bringing the inventories to their present location and condition. Net
       if the remaining expected life of the hedged item is less than twelve months.                                                 realisable value is the estimated selling price in the ordinary course of business, less the cost of completion
                                                                                                                                     and selling expenses.
2.15   Fair value estimation of financial assets and liabilities
                                                                                                                              2.18   Income taxes
       The fair values of financial instruments traded in active markets (such as exchange-traded and over-the-counter
       securities and derivatives) are based on quoted market prices at the end of the reporting period. The quoted                  Current income tax for current and prior periods is recognised at the amount expected to be paid to or
       market prices used for financial assets are the current bid prices; the appropriate quoted market prices for                  recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantially
       financial liabilities are the current asking prices.                                                                          enacted by the end of the reporting period.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                                 ANNUAL REPORT 2010
                                                                                                      A bRANd
90                                                                                                    NEw ERA                                                                                                                                     91



notes to the Financial statements                                                                                             notes to the Financial statements
For the financial year ended 31 december 2010                                                                                 For the financial year ended 31 december 2010



2.     significAnt Accounting policies (continueD)                                                                            2.     significAnt Accounting policies (continueD)
2.18   Income taxes (continued)                                                                                               2.20   Employee benefits

       Deferred income tax is recognised for all temporary differences arising between the tax bases of assets and                   (a)   Post-employment benefits
       liabilities and their carrying amounts in the financial statements except when the deferred income tax arises from
       the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and                The Group has various post-employment benefit schemes in accordance with local conditions and
       affects neither accounting nor taxable profit or loss at the time of the transaction.                                               practices in the country in which it operates. These benefit plans are either defined contribution or
                                                                                                                                           defined benefit plans.
       A deferred income tax liability is recognised on temporary differences arising on investments in subsidiaries and
       associated companies, except where the Group is able to control the timing of the reversal of the temporary                         Defined contribution plan
       difference and it is probable that the temporary difference will not reverse in the foreseeable future.
                                                                                                                                           Defined contribution plans are post-employment benefit plans under which the Group pays fixed
       A deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be                      contributions into separate entities such as the Central Provident Fund on a mandatory, contractual or
       available against which the deductible temporary differences and tax losses can be utilised.                                        voluntary basis. The Group has no further payment obligations once the contributions have been paid.
                                                                                                                                           The Group’s contributions are recognised as employee compensation expense when they are due.
       Deferred income tax is measured:
                                                                                                                                           Defined benefit plan
       (i)    at the tax rates that are expected to apply when the related deferred income tax asset is realised or
              the deferred income tax liability is settled, based on tax rates and tax laws that have been enacted or                      Defined benefit plans are a post-employment benefit plans other than defined contribution plans.
              substantially enacted by the end of the reporting period; and                                                                Defined benefit plans typically define the amount of benefit that an employee will receive on
                                                                                                                                           or after retirement, usually dependent on one or more factors such as age, years of service and
       (ii)   based on the tax consequence that will follow from the manner in which the Group expects, at the end                         compensation.
              of the reporting period, to recover or settle the carrying amounts of its assets and liabilities.
                                                                                                                                           A subsidiary in Malaysia operates an unfunded defined benefit scheme under the Collective Union
       Current and deferred income taxes are recognised as income or expense in the income statement, except                               Agreement for unionised employees and certain management staff. Benefits payable on retirement
       to the extent that the tax arises from a business combination or a transaction which is recognised directly in                      are calculated by reference to the length of service and earnings over the employees’ period of
       equity. Deferred tax arising from a business combination is adjusted against goodwill on acquisition.                               employment; that benefit is discounted to determine the present value. The discount rate is the market
                                                                                                                                           yield at the end of the reporting period on high quality corporate bonds or government bonds. Provision
2.19   Provisions                                                                                                                          for employee retirement benefits is made in the financial statements so as to provide for the accrued
                                                                                                                                           liability at year end. An actuarial valuation, based on the projected credit unit method, of the fund is
       Provisions for legal claims, asset dismantlement, removal or restoration are recognised when the Group has a                        conducted by a qualified independent actuary once in every three years as the directors are of the
       present legal or constructive obligation as a result of past events, when it is more likely than not that an outflow                opinion that yearly movements in provision for the defined benefit plan is not likely to be significant.
       of resources will be required to settle the obligation, and when the amounts have been reliably estimated.
                                                                                                                                           When the benefits of a plan are improved, the portion of the increased benefit relating to past service
       The Group recognises the estimated costs of dismantlement, removal or restoration of items of property, plant                       by employees is recognised as an expense in the income statement on a straight-line basis over the
       and equipment arising from the acquisition or use of assets. This provision is estimated based on the best                          average period until the benefits become vested. To the extent that the benefits vest immediately, the
       estimate of the expenditure required to settle the obligation, taking into consideration time value.                                expense is recognised immediately in the income statement.

       Other provisions are measured at the present value of the expenditure expected to be required to settle the                         In calculating the Group’s obligation in respect of a plan, to the extent that any cumulative unrecognised
       obligation using a pre-tax discount rate that reflects the current market assessment of the time value of money                     actuarial gain or loss exceeds ten percent of the present value of the defined benefit obligation, that
       and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised                    portion is recognised in the income statement over the expected average remaining working lives of
       in the income statement as finance expense.                                                                                         the employees participating in the plan. Otherwise, the actuarial gain or loss is not recognised.

       Changes in the estimated timing or amount of the expenditure or discount rate are recognised in the income                          Where the calculation results in a benefit to the Group, the recognised asset is limited to the net total
       statement when the changes arise, except for changes in the estimated timing or amount of the expenditure                           of any unrecognised actuarial losses and past service costs and the present value of any future refunds
       or discount rate for asset dismantlement, removal and restoration costs, which are adjusted against the                             from the plan or reductions in future contributions to the plan.
       cost of the related property, plant and equipment unless the decrease in the liability exceeds the carrying
       amount of the asset or the asset has reached the end of its useful life. In such cases, the excess of the
       decrease over the carrying amount of the asset or the changes in the liability is recognised in the income
       statement immediately.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                             ANNUAL REPORT 2010
                                                                                                   A bRANd
92                                                                                                 NEw ERA                                                                                                                                       93



notes to the Financial statements                                                                                          notes to the Financial statements
For the financial year ended 31 december 2010                                                                              For the financial year ended 31 december 2010



2.     significAnt Accounting policies (continueD)                                                                         2.     significAnt Accounting policies (continueD)
2.20   Employee benefits (continued)                                                                                       2.21   Currency translation (continued)

       (b)   Share-based compensation                                                                                             (c)    Translation of Group entities’ financial statements (continued)

             The holding company operates an equity-settled, share-based compensation plan and grants share                              Goodwill and fair value adjustments arising on the acquisition of foreign operations on or after
             options to executives of the Group. The fair value of the employee services received in exchange for                        1 January 2005 are treated as assets and liabilities of the foreign operations and translated at the closing
             the grant of options is recognised as an expense in the income statement. The total amount to be                            rates at the end of the reporting period. For acquisitions prior to 1 January 2005, the exchange rates
             recognised over the vesting period is determined by reference to the fair value of the options granted                      at the dates of acquisition are used.
             on the date of the grant. Non-market vesting conditions are included in the estimation of the number
             of shares under options that are expected to become exercisable on the vesting date. At the end of            2.22   Segment reporting
             each reporting period, the Group revises its estimates of the number of shares under options that are
             expected to become exercisable on the vesting date and recognises the impact of the revision of the                  Operating segments are reported in a manner consistent with the internal reporting provided to the Executive
             estimates in the income statement.                                                                                   Committee whose members are responsible for allocating resources and assessing performance of the
                                                                                                                                  operating segments.
2.21   Currency translation
                                                                                                                           2.23   Cash and cash equivalents
       (a)   Functional and presentation currency
                                                                                                                                  For the purpose of presentation in the consolidated cash flow statement, cash and cash equivalents include
             Items included in the financial statements of each entity in the Group are measured using the currency               cash and bank balances, short-term deposits with financial institutions, and bank overdrafts.
             of the primary economic environment in which the entity operates (“functional currency”). The financial
             statements are presented in Singapore Dollars, which is the functional currency of the Company.               2.24   Share capital

       (b)   Transactions and balances                                                                                            Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary
                                                                                                                                  shares are deducted against the share capital account.
             Transactions in a currency other than the functional currency (“foreign currency”) are translated into
             the functional currency using the exchange rates at the dates of the transactions. Currency translation       2.25   Dividends
             differences from the settlement of such transactions and from the translation of monetary assets and
             liabilities denominated in foreign currencies at the closing rates at the end of the reporting period are            Dividends to Company’s shareholders are recognised when the dividends are approved for payments.
             recognised in the income statement, unless they arise from borrowings in foreign currencies, other
             currency instruments designated and qualifying as net investment hedges and net investment in foreign         2.26   Government grants
             operations. Those currency translation differences are recognised in other comprehensive income in
             the consolidated financial statements and transferred to the income statement as part of the gain or                 Grants from the government are recognised as a receivable at their fair value when there is reasonable
             loss on disposal of the foreign operation.                                                                           assurance that the grant will be received and the Group will comply with all the attached conditions.

             Non-monetary items measured at fair values in foreign currencies are translated using the exchange                   Government grants receivable are recognised as income over the periods necessary to match them with the
             rates at the date when the fair values are determined.                                                               related costs which they are intended to compensate, on a systematic basis. Government grants relating to
                                                                                                                                  expenses are deducted in reporting the related expenses.
       (c)   Translation of Group entities’ financial statements
                                                                                                                           3.     criticAl Accounting estimAtes, Assumptions AnD juDgements
             The results and financial position of all the Group entities (none of which has the currency of a
                                                                                                                                  Estimates, assumptions and judgements are continually evaluated and are based on historical experience
             hyperinflationary economy) that have a functional currency different from the presentation currency are
                                                                                                                                  and other factors, including expectations of future events that are believed to be reasonable under the
             translated into the presentation currency as follows:
                                                                                                                                  circumstances.
             (i)     Assets and liabilities are translated at the closing exchange rates at the end of the
                                                                                                                                  (a)    Classification of the Group’s serviced apartments as investment property
                     reporting period;
                                                                                                                                         Management applies judgement in determining the classification of all its serviced apartments owned
             (ii)    Income and expenses are translated at average exchange rates (unless the average is not a
                                                                                                                                         by the Group. The key criteria used to distinguish the Group’s serviced apartments which are classified
                     reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates,
                                                                                                                                         as investment properties, and its other properties classified as property, plant and equipment, is the
                     in which case income and expenses are translated using the exchange rates at the dates of the
                                                                                                                                         level of services provided to tenants of the serviced apartments.
                     transactions); and
                                                                                                                                         The Group’s serviced apartments have been classified as investment properties and the carrying amount
             (iii)   All resulting currency translation differences are recognised in the currency translation reserve.
                                                                                                                                         was $64,030,000 (2009: $53,206,000).




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                            ANNUAL REPORT 2010
                                                                                                   A bRANd
94                                                                                                 NEw ERA                                                                                                               95



notes to the Financial statements                                                                                         notes to the Financial statements
For the financial year ended 31 december 2010                                                                             For the financial year ended 31 december 2010



3.    criticAl Accounting estimAtes, Assumptions AnD juDgements (continueD)                                               5.    expenses bY nAture
      (b)     Other estimates and judgements applied                                                                                                                                      the group          the company
              The Group, on its own or in reliance on third party experts, also applies estimates and judgements in                                                                    2010        2009     2010       2009
              the following areas:                                                                                                                                                    $’000       $’000    $’000      $’000

              (i)     the determination of investment property values by independent professional valuers;                      Cost of inventory sold                               26,157      24,633    3,834      3,596
              (ii)    the assessment of adequacy of provision for income taxes; and                                             Depreciation of property, plant and equipment
              (iii)   the level of impairment of goodwill.                                                                        (Note 19)                                          32,690      31,505    4,799      4,493
                                                                                                                                Amortisation of intangibles (Note 21)                   902         826       42        100
              These estimates, assumptions and judgements are however not expected to have a significant risk of
              causing a material adjustment to the carrying amounts of assets and liabilities within the next financial         Total depreciation and amortisation                  33,592      32,331    4,841      4,593
              year. The carrying amounts of the above assets and liabilities are disclosed in the respective notes to           Employees compensation (Note 6)                     102,407      88,311   13,573     11,825
              the financial statements.                                                                                         Staff cost recharges by related companies for
                                                                                                                                  corporate management and maintenance
4.    revenue, finAnce income AnD miscellAneous income                                                                            services                                            2,494       3,542    1,420      1,843
                                                                                                                                Rental expense on operating leases                    2,196       1,859       61         53
                                                                       the group                   the company
                                                                                                                                Auditors’ remuneration paid/payable to:
                                                                   2010         2009             2010       2009
                                                                                                                                – auditors of the Company                              268         262      124         139
                                                                   $’000       $’000             $’000      $’000
                                                                                                                                – other auditors                                       437         474        –           –
                                                                                                                                Other fees paid/payable to:
      Gross revenue from hotel ownership and
        operations                                              288,561        260,877         34,295         29,153            – auditors of the Company                                26          56        3         32
      Revenue from property investments – rental                                                                                – other auditors                                        176          93        –          –
        income                                                   17,329         13,027         14,362         12,247            Repairs and maintenance                               8,311       6,942      972        953
      Revenue from hotel management services                     17,611         13,760              –              –            Currency exchange loss – net                            232         212        –         42
      Dividend income                                               741            142         17,690         16,202            Heat, light and power                                16,436      14,509    1,511      1,243
      Total revenue                                             324,242        287,806         66,347         57,602            Property, plant and equipment written off and net
                                                                                                                                  loss on disposals                                   1,992       1,166      227        339
      Interest income                                                                                                           Group marketing expenses                              2,405       2,580        –          –
      – advances to holding company                                1,185            996          1,185            996           Advertising and promotion                             9,616       9,203    1,015        698
      – loans to subsidiaries                                          –              –          2,218          3,766           Management fee to hotel operators                     5,059       4,714    1,417      1,145
      – fixed deposits with financial institutions                 2,018          1,254             53              –           Property tax                                          6,666       5,356    1,890      1,007
      – others                                                       165            255             45             24           Other hospitality related expenses                   45,464      42,116    6,138      6,123
      Finance income                                               3,368          2,505          3,501          4,786           Total cost of sales, marketing and distribution,
                                                                                                                                  administrative and other operating expenses       263,934     238,359   37,026     33,631
      Miscellaneous income                                         1,987          1,440            619           542

      Total                                                     329,597        291,751         70,467         62,930




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                          ANNUAL REPORT 2010
                                                                                                A bRANd
96                                                                                              NEw ERA                                                                                                                  97



notes to the Financial statements                                                                                      notes to the Financial statements
For the financial year ended 31 december 2010                                                                          For the financial year ended 31 december 2010



6.    emploYee compensAtion                                                                                            8.    finAnce expenses

                                                                     the group                  The company                                                                             the group          The company
                                                                 2010         2009            2010       2009                                                                       2010         2009    2010       2009
                                                                 $’000       $’000            $’000      $’000                                                                      $’000       $’000    $’000      $’000

      Wages and salaries                                       95,252         82,475         12,249         10,639           Interest expense:
      Employer’s contribution to defined contribution                                                                        – loans from subsidiaries                                  –           –      660        743
        plans including Central Provident Fund                  6,594          5,396          1,106          1,036           – bank loans and overdrafts                            4,768       5,061      268         83
      Retirement benefits                                         343            290              –              –           – cash flow hedges, transfer from hedging reserve
      Share options granted to employees                          218            150            218            150             (Note 30(d))                                           507         234        –          –
                                                              102,407         88,311         13,573         11,825                                                                  5,275       5,295      928        826
                                                                                                                             Amount capitalised to property under construction
      The wages and salaries for the financial year ended 31 December 2010 are stated after netting off the Jobs              (Note 20(a))                                         (2,151)     (2,261)       –           –
      Credit Scheme – government grant of $238,000 (2009: $1,261,000). The Jobs Credit Scheme is a cash grant
                                                                                                                                                                                    3,124       3,034      928         826
      introduced in the Singapore Budget 2009 to help businesses preserve jobs in the economic downturn. The
      Jobs Credit will be paid to eligible employers in 2009 in four payments and the amount an employer can                 Currency exchange loss – net                           3,450         621    1,760         401
      receive would depend on the fulfilment of the conditions as stated in the scheme. On 13 October 2009, the                                                                     6,574       3,655    2,688       1,227
      Government has announced that the Jobs Credit Scheme will be extended for six months with another two
      payouts in March and June 2010 at stepped down rates.                                                            9.    income tAxes
                                                                                                                       (a)   Income tax expense
      During the financial year, the Company was charged share option expenses amounting to $218,000
      (2009: $150,000) by the holding company for share options granted to executives of the Group under
      the UOL Group Executives’ Share Option Scheme.                                                                                                                                    the group          the company
                                                                                                                                                                                    2010         2009    2010       2009
      The UOL Group Executives’ Share Option Scheme is an equity settled, share-based compensation plan. The                                                                        $’000       $’000    $’000      $’000
      vesting of the granted options is conditional upon the completion of one year of service from the grant date.
      The amount recharged by the holding company relates to the fair value of 220,000 (2009: 481,000) options
      granted to executives of the Company on the grant date, 5 March 2010 (2009: 6 March 2009), determined using            Tax expense attributable to profit is made up of:
      the Trinomial Tree model. The significant inputs into the model were share price of $3.91 (2009: $1.63) at the
      grant date exercise price of $3.95 (2009: $1.65), standard deviation of expected share price returns of 36.73%         Current income tax
      (2009: 32.51%), option life from 5 March 2011 to 4 March 2020 (2009: 6 March 2010 to 5 March 2019) and annual          – Singapore (Note (b) below)                           6,132       4,627    3,208       2,624
      risk-free interest rate of 1.68% (2009: 1.24%) and total expected dividends payout of $0.389 per share (2009
      $0.375 per share). The volatility measured at the standard deviation of expected share price returns is based          – Foreign (Note (b) below)                             9,853       6,665        –           –
      on statistical analysis of daily share prices of UOL over the last three years.                                        Deferred income tax (Note 28)                          1,000        (388)   1,240        (488)
                                                                                                                                                                                   16,985      10,904    4,448       2,136
7.    other gAins - net                                                                                                      Effect of changes in tax rate on deferred taxation:
                                                                     the group                  the company                  – Singapore (Note 28)                                      –      (2,160)        –     (1,657)
                                                                 2010         2009            2010       2009
                                                                 $’000       $’000            $’000      $’000                                                                     16,985       8,744    4,448        479
                                                                                                                             (Over)/under provision in the preceding financial
                                                                                                                               years
      Gain on liquidation of investment in a subsidiary            156             –          2,662              –
                                                                                                                             – Singapore current income tax (Note (b) below)       (2,349)        (48)   (1,862)       26
      Gain on capital reduction                                      –             –             46              –
                                                                                                                             – Deferred income tax (Note 28)                          495         413         –         –
      Write-back of impairment charge on a subsidiary                –             –          1,400              –
                                                                                                                                                                                   15,131       9,109     2,586       505
                                                                   156             –          4,108              –




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                         ANNUAL REPORT 2010
                                                                                               A bRANd
98                                                                                             NEw ERA                                                                                                                                 99



notes to the Financial statements                                                                                     notes to the Financial statements
For the financial year ended 31 december 2010                                                                         For the financial year ended 31 december 2010



9.    INCOME TAxES (continueD)                                                                                        10.   eArnings per shAre
(a)   Income tax expense (continued)                                                                                        Basic earnings per share is calculated by dividing the net profit attributable to equity holders of the Company
                                                                                                                            by the weighted average number of ordinary shares outstanding during the financial year.
      The tax expense on profit for the financial year differs from the amount that would arise using the Singapore
      standard rate of income tax due to the following:                                                                                                                                                               2010          2009

                                                                    the group                  the company
                                                                                                                            Net profit attributable to equity holders of the Company ($’000)                        53,640        39,312
                                                                2010         2009            2010       2009
                                                                $’000       $’000            $’000      $’000
                                                                                                                            Weighted average number of ordinary shares in issue for basic earnings per
                                                                                                                             share (‘000)                                                                         600,000        600,000
      Profit before income tax                                 70,351        49,184         44,840         26,452
      Share of profit of associated companies, net of tax      (1,127)       (1,067)             –              –
      Profit before tax and share of profit of associated                                                                   Basic earnings per share (cents per share)                                                8.94           6.55
        companies                                              69,224        48,117         44,840         26,452
                                                                                                                            Diluted earnings per share is the same as basic earnings per share as there were no potential dilutive
      Tax calculated at a tax rate of 17%                      11,768         8,180          7,623          4,497
                                                                                                                            ordinary shares.
      Effects of:
                                                                                                                      11.   cAsh AnD bAnK bAlAnces
      – Singapore statutory stepped income exemption             (226)          (224)           (26)           (26)
      – Different tax rate in other countries                   2,920          2,360              –              –                                                                         The group                   the company
      – Income not subject to tax                                (903)        (1,182)        (3,784)       (2,908)                                                                     2010         2009             2010       2009
      – Expenses not deductible for tax purposes                2,712          1,783            635           573                                                                      $’000       $’000             $’000      $’000
      – Foreign tax expense not recoverable                       137            139              –              –
      – Utilisation of previously unrecognised tax losses        (170)          (212)             –              –
                                                                                                                            Cash at bank and on hand                                  43,256         28,060          1,898          3,181
      – Deferred tax asset not recognised in the current
        financial year                                            747             60             –              –           Fixed deposits with financial institutions                14,648         65,057            191          6,451
      – Effect of changes in tax rate                               –         (2,160)            –         (1,657)                                                                    57,904         93,117          2,089          9,632
      Tax charge                                               16,985          8,744         4,448            479
                                                                                                                      (a)   For the purposes of the consolidated cash flow statement, the consolidated cash and cash equivalents
                                                                                                                            comprised the following:
(b)   Movements in current income tax (assets)/liabilities
                                                                                                                                                                                                                         the group
                                                                    the group                  the company                                                                                                            2010        2009
                                                                2010         2009            2010       2009                                                                                                         $’000       $’000
                                                                $’000       $’000            $’000      $’000
                                                                                                                            Cash and bank balances (as above)                                                       57,904        93,117
      At the beginning of the financial year                   14,207         15,359          5,916         6,911           Less : Bank overdrafts (Note 23)                                                            (9)            –
      Currency translation differences                            936          1,521              –             –           Cash and cash equivalents per consolidated cash flow statement                          57,895        93,117
      Income tax paid                                         (12,997)       (15,759)        (2,954)       (4,212)
      Tax refund received                                         258          1,780              –           567     (b)   The fixed deposits with financial institutions for the Group and Company mature on varying dates within twelve
      Tax expense on profit (Note (a) above)                                                                                months (2009: twelve months) from the end of the financial year and have the following weighted average
      – current financial year                                 15,985        11,292           3,208         2,624           effective interest rates as at the end of the reporting period:
      – (over)/under provision in preceding financial years    (2,349)           (48)        (1,862)           26
      Acquisition of subsidiaries                                   –             62              –             –                                                                          the group                   the company
      At the end of the financial year                         16,040        14,207           4,308         5,916                                                                       2010        2009              2010      2009
      Comprise:                                                                                                                                                                           %           %                 %          %
      Tax recoverable (Note 12)                                      –          (641)             –          (637)
      Current income tax liabilities (included under                                                                        Singapore Dollar                                                –          0.20              –              –
        current liabilities)                                   16,040        14,848          4,308          6,553
                                                               16,040        14,207          4,308          5,916           United States Dollar                                         0.95          0.72           0.01           0.01
                                                                                                                            Australian Dollar                                            2.81          3.76           3.36           2.47
                                                                                                                            Malaysian Ringgit                                            2.80          1.95              –              –




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                   ANNUAL REPORT 2010
                                                                                              A bRANd
100                                                                                           NEw ERA                                                                                                                              101



notes to the Financial statements                                                                                    notes to the Financial statements
For the financial year ended 31 december 2010                                                                        For the financial year ended 31 december 2010



11.   cAsh AnD bAnK bAlAnces (continueD)                                                                             12.   trADe AnD other receivAbles (continueD)
(c)   Acquisition of subsidiaries                                                                                    (a)   Impairment loss on trade and other receivables for the Group recognised as an expense and included in
                                                                                                                           ‘Administrative expenses’ amounted to $112,000 (2009: $94,000).
      During the financial year ended 31 December 2009, the Company acquired a 100% interest in Parkroyal Serviced
      Residences Pte Ltd (“PSR”) from UOL Group Limited, the holding company of the Company. The effects of          (b)   The non-trade amounts due from subsidiaries are unsecured, interest-free and repayable on demand.
      the acquisition of PSR on the cash flows of the Group are as follows:
                                                                                                                     (c)   The non-current loans to subsidiaries with interest charged on a floating-rate basis is subjected to monthly
                                                                                                           $’000           repricing. The carrying values of the loans approximate their fair values. The loans have no fixed terms of
                                                                                                                           repayment and are not expected to be repaid within twelve months from the end of the reporting period.
      Identifiable assets and liabilities
      Cash and cash equivalents                                                                               51     (d)   Loans to subsidiaries of $22,468,000 (2009: $127,523,000) have been subordinated to the secured bank loans
      Trade and other receivables                                                                             86           of the subsidiaries.
      Property, plant and equipment (Note 19)                                                                454
      Shareholder’s loan                                                                                     599     13.   inventories
       Total assets                                                                                        1,190
                                                                                                                                                                                         the group                  the company
      Trade and other payables                                                                              (545)                                                                    2010         2009            2010       2009
      Current income tax liabilities (Note 9)                                                                (62)                                                                    $’000       $’000            $’000      $’000
      Deferred income tax liabilities (Note 28)                                                                (2)
      Total liabilities                                                                                     (609)
                                                                                                                           Trading stock                                               272            61             52            43
      Identifiable net assets acquired                                                                       581           Food and beverages                                          872         1,554             51           163
      Cash consideration paid                                                                                581           Spares for maintenance                                      387           965              –            74
      Repayment of shareholder’s loan                                                                       (599)                                                                    1,531         2,580            103           280
      Less: Cash and cash equivalents in subsidiaries acquired                                                (51)
      Net cash flow on acquisition net of cash acquired                                                       (69)         The cost of inventories recognised as expense and included in ‘cost of sales’ amounted to $26,157,000 (2009:
                                                                                                                           $24,633,000) and $3,834,000 (2009: $3,596,000) respectively for the Group and the Company.
12.   trADe AnD other receivAbles
                                                                      the group                The company           14.   other Assets
                                                                  2010         2009          2010       2009                                                                             the group                  the company
                                                                  $’000       $’000          $’000      $’000
                                                                                                                                                                                     2010         2009            2010       2009
      Current                                                                                                                                                                        $’000       $’000            $’000      $’000
      Trade receivables:
      – non-related parties                                      17,337      15,047          1,332         1,309           Deposits                                                14,802            544             45             –
      – fellow subsidiaries                                         117         370              4            11
                                                                                                                           Prepayments                                              2,351          2,788            192           221
      – associated companies                                          –          46              –             –
      Less: Allowance for impairment of receivables –                                                                                                                              17,153          3,332            237           221
        non-related parties                                        (280)       (355)             –            (1)
                                                                                                                     15.   AvAilAble-for-sAle finAnciAl Assets
      Trade receivables – net                                    17,174      15,108          1,336         1,319
      Other receivables:                                                                                                                                                                 the group                  the company
      – loans to subsidiaries                                         –           –        11,356         21,343                                                                     2010         2009            2010       2009
      – subsidiaries (non-trade)                                      –           –         3,019         12,583                                                                     $’000       $’000            $’000      $’000
      – sundry debtors                                            7,445       4,242           552            623
      – tax recoverable (Note 9(b))                                   –         641             –            637           At the beginning of the financial year                  18,032         12,968        18,032         12,968
                                                                  7,445       4,883        14,927         35,186           Fair value (losses)/gains recognised in other
                                                                 24,619      19,991        16,263         36,505             comprehensive income (Note 30(a))                       (865)         5,064          (865)         5,064
      Non-current                                                                                                          At the end of the financial year                        17,167         18,032        17,167         18,032
      Loans to:
      – subsidiaries                                                  –           –       149,154       257,102
                                                                      –           –       149,154       257,102
      Total trade and other receivables                          24,619      19,991       165,417       293,607




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                ANNUAL REPORT 2010
                                                                                                                 A bRANd
102                                                                                                              NEw ERA                                                                                                                                  103



notes to the Financial statements                                                                                                   notes to the Financial statements
For the financial year ended 31 december 2010                                                                                       For the financial year ended 31 december 2010



15.   AvAilAble-for-sAle finAnciAl Assets (continueD)                                                                               17.   investment in subsiDiAries
      At the end of the reporting period, available-for-sale financial assets included the following:                                                                                                                                   the company
                                                                                                                                                                                                                                       2010       2009
                                                                                         the group               the company                                                                                                          $’000      $’000
                                                                                     2010         2009         2010       2009
                                                                                     $’000       $’000         $’000      $’000           Equity investments at cost                                                               408,806           242,359
                                                                                                                                          Less: accumulated impairment charge:
      Listed securities:                                                                                                                  At the beginning of the financial year                                                    (40,540)         (38,040)
      – Equity shares - Singapore                                                   17,167         18,032     17,167      18,032          Impairment reversal/(charge) for the financial year                                         1,400            (2,500)
                                                                                                                                          At the end of the financial year                                                          (39,140)         (40,540)
16.   investment in AssociAteD compAnies
                                                                                                                                          Equity investments at cost less accumulated impairment charge
                                                                                         the group               the company                at the end of the financial year                                                       369,666           201,819
                                                                                     2010         2009         2010       2009
                                                                                                                                          At the beginning of the financial year                                                   201,819           197,952
                                                                                     $’000       $’000         $’000      $’000
                                                                                                                                          Additional investment                                                                    171,100              6,367
      Equity investments at cost                                                                               9,820       9,820          Capital reduction in subsidiaries                                                         (4,653)                 –
                                                                                                                                          Impairment reversal/(charge) for the financial year                                        1,400             (2,500)
      At the beginning of the financial year                                         6,954          8,242                                 At the end of the financial year                                                         369,666           201,819
      Share of profits                                                               1,127          1,067
                                                                                                                                    (a)   The impairment write-back of $1,400,000 (2009: impairment charge of $2,500,000) was recognised for the
      Currency translation differences                                                (555)          (251)                                Company’s investment in certain subsidiaries, being the difference between the carrying amount of the
      Dividend paid during the year                                                   (132)        (2,104)                                investment and its recoverable amount. This is to reduce the carrying value of investments to the recoverable
      At the end of the financial year                                               7,394          6,954                                 amounts, taking into account the general economic and operating environment in which the relevant
                                                                                                                                          subsidiaries operate in.
(a)   The summarised financial information of associated companies, not adjusted for the proportion ownership
      interest held by the group were as follows:                                                                                         The recoverable amount for the relevant subsidiaries was mainly estimated based on the fair value less cost to
                                                                                                                                          sell of the net assets as at balance sheet date. The carrying amount of the net assets of the relevant subsidiaries
                                                                                                                   the group              approximates their fair values.
                                                                                                                2010        2009
                                                                                                                                    (b)   The subsidiaries are:
                                                                                                               $’000       $’000

      –    Assets                                                                                             52,102      58,057                                                                    country of
                                                                                                                                                                          principal                 business/             cost of
      –    Liabilities                                                                                        24,412      31,179          name of companies               activities                incorporation       investment         equity holding
      –    Revenues                                                                                           16,971      17,055                                                                                       2010      2009       2010    2009
      –    Net profit after tax                                                                                2,854       2,710                                                                                      $’000     $’000         %        %

(b)   Contingent liabilities of the associated company in which the Group is severally liable (Note 32) amounted to                       Held by the Company
      $7,557,000 (2009: $9,834,000).
                                                                                                                                          New Park Hotel (1989)           Hotelier                  Singapore         5,000        5,000       100       100
(c)   The associated companies are:                                                                                                        Pte Ltd
                                                                                                                                          Parkroyal Hotels & Resorts      Hotel manager and         Singapore             10          10       100       100
                                                      principal                      Country of business/                                   Pte. Ltd.                     operator
      name of companies                               activities                     incorporation               equity holding
                                                                                                                                          United Lifestyle Holdings       Investment                Singapore         1,200        3,500       100       100
                                                                                                                2010         2009          Pte Ltd                        holding
                                                                                                                  %             %
                                                                                                                                          HPL Properties (Malaysia)       Investment                Malaysia         50,172      50,172       100        100
      Pilkon Development Company                      Investment                     The British Virgin         39.35       39.35          Sdn. Bhd. (“HPM”) *            holding
        Limited*                                      holding                        Islands                 by PPHG    by PPHG
                                                                                                                                          President Hotel Sdn Berhad      Hotelier                  Malaysia         25,130       25,130   33.33       33.33
      PPHR (Thailand) Company                         Marketing                                                48.97        48.97           (“PHSB”) @ *
        Limited**                                     agent                          Thailand                 by PPH      by PPH          Success Venture Investments Investment holding            The British      49,978        6,353       100        60
      *     Not required to be audited under the laws of the country of incorporation.                                                      (Australia) Ltd (“SVIA”)                                Virgin Islands
      **    Audited by Thana-Ake Advisory Limited.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                                     ANNUAL REPORT 2010
                                                                                                 A bRANd
104                                                                                              NEw ERA                                                                                                                         105



notes to the Financial statements                                                                                     notes to the Financial statements
For the financial year ended 31 december 2010                                                                         For the financial year ended 31 december 2010



17.   investment in subsiDiAries (continueD)                                                                          17.   investment in subsiDiAries (continueD)
(b)   The subsidiaries are: (continued)                                                                               (b)   The subsidiaries are: (continued)

                                                              country of                                                                                                                       country of
                                                              business/              cost of                                                                                                   business/
      name of companies             principal activities      incorporation        investment        equity holding         name of companies                           principal activities   incorporation        equity holding
                                                                                  2010       2009     2010    2009                                                                                                 2010         2009
                                                                                 $’000       $’000      %        %                                                                                                   %             %
      Held by the Company                                                                                                   Held by subsidiaries
      Success Venture Investments Investment holding          The British       21,279     21,279      100     100          Success Venture Pty Limited *               Trustee company        Australia             100         100
        (WA) Limited (“SVIWA”)                                Virgin Islands                                                                                                                                     by sviA     by SVIA
      Success City Pty Limited *    Dormant                   Australia         22,528     20,052      100      95          Yangon Hotel Limited **                     Hotelier               Myanmar                95          95
      Garden Plaza Company          Hotelier                  Vietnam            1,748      1,748      100     100                                                                                               by Yipl     by YIPL
       Limited *
                                                                                                                            Westlake International Company *            Hotelier               Vietnam               75          75
      Dou Hua Restaurants           Operator of               Singapore            175        875      100     100                                                                                               by hih      by HIH
       Pte Ltd                      restaurants
                                                                                                                            Suzhou Wugong Hotel Co., Ltd *              Hotelier               The People’s          100         100
      St Gregory Spa Pte Ltd        Manage and operate        Singapore              –      1,654      100     100                                                                             Republic of        by his      by HIS
                                    health and beauty                                                                                                                                          China
                                    retreats and facilities
                                                                                                                            President Hotel Sdn Berhad (“PHSB”) @ *     Hotelier               Malaysia           66.67       66.67
      Hotel Investments (Suzhou)    Investment holding        Singapore              7          7      100     100                                                                                              by hpm      by HPM
       Pte. Ltd. (“HIS”)
                                                                                                                            Grand Elite Sdn. Bhd. *                     Dormant                Malaysia             100         100
      Hotel Investments (Hanoi)     Investment holding        Singapore              6          6      100     100                                                                                              by phsb     by PHSB
       Pte. Ltd. (“HIH”)
                                                                                                                            Grand Elite (Penang) Sdn. Bhd. *            Dormant                Malaysia             100         100
      YIPL Investment Pte. Ltd.     Investment holding        Singapore          6,045      6,045      100     100                                                                                              by phsb     by PHSB
        (“YIPL”)
                                                                                                                            Pan Pacific Hotels and Resorts Pte. Ltd.    Hotel manager and      Singapore             100         100
      Hotel Plaza Property          Property development Singapore             200,000     75,000      100     100
                                                                                                                              (“PPHR”)                                  operator                                by pphh     by PPHH
       (Singapore) Pte Ltd          and hotelier
      Parkroyal International       Managing and licensing Singapore              100         100      100     100          Pan Pacific Hotels and Resorts America,     Hotel manager and      United States        100          100
        Pte. Ltd.                   of trademarks                                                                             Inc. (“PPHRA”) ^                          operator               of America       by pphr     by PPHR
                                                                                                                            Pan Pacific Hotels and Resorts Seattle      Hotel manager and      United States      100            100
      Pan Pacific Hospitality       Investment holding        Singapore         21,757     21,757      100     100            Limited Liability Co (“PPHRS”) ^          operator               of America    by pphrA      by PPHRA
        Holdings Pte Ltd
                                                                                                                            Pan Pacific Hotels and Resorts Japan        Hotel manager and      Japan                100          100
      Pan Pacific International     Managing and licensing Singapore             3,090      3,090      100     100
                                                                                                                              Co., Ltd ^                                operator                                by pphr     by PPHR
        Pte. Ltd.                   of trademarks
      Parkroyal Serviced            Management of             Singapore           581         581     100      100          PT. Pan Pacific Hotels & Resorts Indonesia Hotel manager and       Indonesia              99          99
        Residences Pte. Ltd.        serviced suites                                                                           (“PPHRI”) ***                            operator                                 by pphr     by PPHR
        [Note (d) below]                                                                                                                                                                                           and 1       and 1
                                                                                                                                                                                                               by pphrA    by PPHRA
                                                                               408,806    242,359
                                                                                                                            Pan Pacific Hospitality Pte. Ltd. (“PPH”)   Manage and operate     Singapore             100         100
                                                                                                                                                                        serviced suites                         by pphh     by PPHH
                                                                                                                            Pan Pacific Technical Services Pte. Ltd.    Provision of technical Singapore             100         100
                                                                                                                                                                        services to hotels and                  by pphh     by PPHH
                                                                                                                                                                        serviced suites




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                 ANNUAL REPORT 2010
                                                                                                                             A bRANd
106                                                                                                                          NEw ERA                                                                                                                                       107



notes to the Financial statements                                                                                                                         notes to the Financial statements
For the financial year ended 31 december 2010                                                                                                             For the financial year ended 31 december 2010



17.   investment in subsiDiAries (continueD)                                                                                                              17.   investment in subsiDiAries (continueD)
(b)   The subsidiaries are: (continued)                                                                                                                   (d)   Acquisition of subsidiaries

                                                                                               country of                                                       On 13 July 2009, the Company acquired a 100% interest in Parkroyal Serviced Residences Pte Ltd (“PSR”) from
                                                                                               business/                                                        UOL for cash consideration of $581,000.
      name of companies                                        principal activities            incorporation                equity holding
                                                                                                                                                                PSR contributed revenue of $780,000 and net profit after tax of $205,000 to the Group for the period
                                                                                                                           2010         2009                    from 13 July 2009 to 31 December 2009. The assets and liabilities of PSR as at 31 December 2009 were
                                                                                                                             %             %                    $1,239,000 and $618,000 respectively. If the acquisition had occurred on 1 January 2009, Group revenue
                                                                                                                                                                would have been increased by $592,000 and net profit after tax increased by $20,000 for the financial year
      Held by subsidiaries
                                                                                                                                                                ended 31 December 2009.
      Pan Pacific Marketing Services Pte. Ltd.                 Provision of           Singapore                            100                100
                                                               marketing and related                                  by pphh            by PPHH                The cash consideration for the acquisition was determined based on the net book values of the assets and
                                                               services to hotels and                                                                           liabilities of PSR and no goodwill was recognised. Details of net assets acquired are disclosed in Note 11(c).
                                                               serviced suites
                                                                                                                                                          18.   investment properties
      Pan Pacific (Shanghai) Hotels                            Hotel manager and               The People’s               100                      –
        Management Co., Ltd****                                operator                        Republic of            by pphr                                                                                                                                the group and
                                                                                               China                                                                                                                                                          the company
                                                                                                                                                                                                                                                            2010        2009
(c)   The following unit trusts are held by:                                                                                                                                                                                                               $’000       $’000

                                                                                               country of
                                                                                                                                                                At the beginning of the financial year                                                  155,481       155,469
                                                                                               business/
      name of unit trusts                                      principal activities            constitution                   units held                        Additions                                                                                     –          1,632
                                                                                                                           2010        2009                     Fair value gains/(losses) recognised in income statement                                  9,979         (1,620)
                                                                                                                             %           %                      At the end of the financial year                                                        165,460       155,481

      SVIA                                                                                                                                                (a)   Investment properties are carried at fair values at the end of the reporting period as determined by independent
      Success Venture (Darling Harbour) Unit                   Hotelier                        Australia                     100                100             professional valuers. Valuations are made semi-annually based on the properties’ highest-and-best use using
      Trust*                                                                                                                                                    various valuation methods such as Direct Market Comparison Method and Income Method.

      Success Venture (Parramatta) Unit Trust*                 Hotelier                        Australia                     100                100       (b)   The investment properties are leased to non-related parties under operating leases (Note 33(c)).

      SVIWA                                                                                                                                               (c)   The details of the Group’s investment properties at 31 December 2010 were:
      Success Venture (WA) Unit Trust*                         Hotelier                        Australia                     100                100
                                                                                                                                                                                                                                                               tenure of land
      PricewaterhouseCoopers LLP Singapore is the auditor of all subsidiaries of the Group unless
      otherwise indicated.                                                                                                                                      The Plaza            – retained interests in a 32-storey tower block comprising restaurants,   99-year lease
                                                                                                                                                                                       function rooms, shops, offices and serviced suites, two adjacent        from 1968
      ~    Less than $1,000.                                                                                                                                                           commercial buildings and a multi-storey car park block at Beach
      @
           The Group’s effective interest in PHSB is 100% (2009: 100%) of which 33.33% (2009: 33.33%) is held directly by the Company and the remainder                                Road, Singapore
           interest held through HPM.
      *    Companies audited by PricewaterhouseCoopers firms outside Singapore.
      ** Company audited by Myanmar Vigour Company Limited.+                                                                                              (d)   The following amounts are recognised in profit or loss:
      *** Company audited by Kanaka Puradiredja, Robert Yogi Dan Suhartono.+
      **** Company audited by Shanghai LSC Certified Public Accountants Co., Ltd.+
      ^ Not required to be audited under the laws of the country of incorporation.+                                                                                                                                             the group                    the company
      +
           The subsidiaries not audited by PricewaterhouseCoopers LLP Singapore or PricewaterhouseCoopers firms outside Singapore are not significant                                                                       2010         2009              2010       2009
           subsidiaries as defined under Rule 718 of the Listing Manual of the Singapore Exchange Securities Trading Limited.
                                                                                                                                                                                                                            $’000       $’000              $’000      $’000

                                                                                                                                                                Rental income (Note 4)                                     17,329         13,027         14,362        12,247
                                                                                                                                                                Direct operating expenses arising from investment
                                                                                                                                                                  properties that generated rental income                  (6,917)         (4,686)        (6,893)       (4,676)
                                                                                                                                                                                                                           10,412           8,341          7,469         7,571




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                                                         ANNUAL REPORT 2010
                                                                                            A bRANd
108                                                                                         NEw ERA                                                                                                                               109



notes to the Financial statements                                                                                    notes to the Financial statements
For the financial year ended 31 december 2010                                                                        For the financial year ended 31 december 2010



19.   propertY, plAnt AnD equipment                                                                                  19.   propertY, plAnt AnD equipment (continueD)
                                                                  plant,                                                                                                                 plant,
                                                             equipment,                                                                                                 leasehold equipment,
                                           land and building   furniture        motor renovation                                                                         land and    furniture        motor renovation
                                         freehold leasehold and fittings       vehicles in progress       total                                                           building and fittings      vehicles in progress     total
                                          $’000      $’000        $’000          $’000        $’000      $’000                                                              $’000        $’000         $’000        $’000     $’000
      The Group                                                                                                            The Company
      Cost
                                                                                                                           Cost
      At 1 January 2010                   298,703     178,436     366,393        1,878        1,432     846,842
      Currency translation differences       9,207      (7,579)      (1,469)        (76)         (10)         73           At 1 January 2010                                43,484        38,152         163         1,290 83,089
      Additions                              4,767         236        6,868        201        9,326       21,398           Additions                                             –            718         16         6,678   7,412
      Reclassification                         371         122        2,828           –      (3,321)           –           Disposals                                          (524)        (9,942)       (99)            – (10,565)
      Disposals                             (1,642)       (716)    (88,324)       (405)            –     (91,087)          Reclassification                                      –          3,167          –        (3,167)      –
      At 31 December 2010                 311,406     170,499     286,296        1,598        7,427     777,226            At 31 December 2010                              42,960        32,095          80         4,801 79,936
      Accumulated depreciation
      At 1 January 2010                    50,243      62,692     240,663        1,528            –     355,126            Accumulated depreciation
      Currency translation differences       1,762      (2,649)      (1,224)        (67)          –        (2,178)         At 1 January 2010                                21,769        19,721         115             –     41,605
      Charge for the financial year          4,542       4,146      23,840         162            –       32,690           Charge for the financial year                       996          3,792         11             –      4,799
      Reclassification                         114           –         (114)          –           –             –
                                                                                                                           Disposals                                          (504)        (9,651)       (99)            –    (10,254)
      Disposals                             (1,230)       (681)    (86,640)       (405)           –      (88,956)
      At 31 December 2010                  55,431      63,508     176,525        1,218            –     296,682            At 31 December 2010                              22,261        13,862          27             –     36,150

      Net book value
                                                                                                                           Net book value
      At 31 December 2010                255,975      106,991     109,771         380        7,427 480,544
                                                                                                                           At 31 December 2010                             20,699        18,233           53        4,801 43,786
                                                                   plant,
                                                              equipment,                                                                                                                 plant,
                                                                                                                                                                        leasehold equipment,
                                           land and building    furniture       motor renovation
                                                                                                                                                                         land and    furniture        motor renovation
                                         freehold leasehold and fittings       vehicles in progress       total
                                                                                                                                                                          building and fittings      vehicles in progress      total
                                            $’000       $’000      $’000         $’000        $’000      $’000
                                                                                                                                                                            $’000        $’000         $’000        $’000     $’000
      The Group
      Cost                                                                                                                 The Company
      At 1 January 2009                   271,387     166,010     333,127        1,340       23,605     795,469            Cost
      Currency translation differences     24,658      (2,829)     17,350          (24)        (533)     38,622            At 1 January 2009                                43,484        36,208         163         1,099    80,954
      Acquisition of subsidiary                                                                                            Additions                                             –          5,326          –         1,233      6,559
       (Note 11(c))                              –         475          95           –            –         570
                                                                                                                           Disposals                                             –         (4,424)         –                   (4,424)
      Additions                                52          206     12,033           92        7,299      19,682
      Reclassification                      2,609      13,519      12,067          744      (28,939)          –            Reclassification                                      –          1,042          –        (1,042)         –
      Transfer from other assets                 –       2,072           –          17            –       2,089            At 31 December 2009                              43,484        38,152         163         1,290    83,089
      Disposals                                 (3)     (1,017)     (8,279)       (291)           –      (9,590)
      At 31 December 2009                 298,703     178,436     366,393        1,878        1,432     846,842            Accumulated depreciation
      Accumulated depreciation                                                                                             At 1 January 2009                                20,679        20,384         106             –    41,169
      At 1 January 2009                    42,247      60,688     213,329        1,034            –     317,298            Charge for the financial year                     1,090          3,394          9             –      4,493
      Currency translation differences      4,063      (1,094)     10,982          (22)           –      13,929            Disposals                                             –         (4,057)         –             –     (4,057)
      Acquisition of subsidiary                                                                                            At 31 December 2009                              21,769        19,721         115             –    41,605
       (Note 11(c))                              –          35          81           –            –          116
      Charge for the financial year         4,081        4,254     23,011          159            –      31,505
      Reclassification                       (146)      (1,471)        987         630            –            –           Net book value
      Transfer from other assets                 –         507           –          17            –          524           At 31 December 2009                              21,715        18,431          48         1,290    41,484
      Disposals                                 (2)       (227)     (7,727)       (290)           –       (8,246)    (a)   The leasehold land and building of the Company comprise a hotel property which was revalued by a firm of
      At 31 December 2009                  50,243      62,692     240,663        1,528            –     355,126            professional valuers on 31 December 1985 on an open market existing use basis, with subsequent additions
      Net book value                                                                                                       at cost. The valuation done in 1985 was incorporated in the financial statements. However, a decision was
      At 31 December 2009                 248,460     115,744     125,730          350        1,432     491,716            then made subsequently by the Board of Directors that future valuations of hotel properties would not be
                                                                                                                           incorporated in the financial statements.


PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                ANNUAL REPORT 2010
                                                                                                    A bRANd
110                                                                                                 NEw ERA                                                                                                                               111



notes to the Financial statements                                                                                         notes to the Financial statements
For the financial year ended 31 december 2010                                                                             For the financial year ended 31 december 2010



19.   propertY, plAnt AnD equipment (continueD)                                                                           20.   propertY unDer construction
(b)   At 31 December 2010, the open market value of the hotel property of the Company (including plant, equipment,                                                                                                          the group
      furniture and fittings) was $122,000,000 (2009: $112,000,000) and the net book value was $37,493,000 (2009:
      $36,017,000). The valuation of the hotel properties was carried out by a firm of independent professional valuers                                                                                                  2010        2009
      on an open market existing use basis. The surplus on valuation amounting to $84,507,000 (2009: $75,983,000)                                                                                                       $’000       $’000
      has not been incorporated in the financial statements.
                                                                                                                                Costs of land                                                                        253,200        253,200
      The open market value of hotel properties of the Group (including plant, equipment, furniture and fittings)
                                                                                                                                Development costs                                                                     48,514          25,813
      was $1,058,261,000 (2009: $992,240,000) and the net book value at 31 December 2010 was $465,623,000
      (2009: $477,901,000). The valuations were carried out by firms of independent professional valuers on an open             Property taxes, interest and other overheads                                           9,064           6,109
      market existing use basis. The surplus on valuation of these hotel properties amounting to $592,638,000 (2009:                                                                                                 310,778        285,122
      $514,339,000) has not been incorporated in the financial statements.                                                      Less: Impairment charge                                                              (37,000)        (37,000)
                                                                                                                                Property under construction                                                          273,778        248,122
(c)   Bank borrowings and other banking facilities are secured on certain hotel properties of the Group amounting
      to $327,739,000 (2009: $324,159,000) (Note 23(a)).                                                                  (a)   Borrowing costs of $2,151,000 (2009: $2,261,000) (Note 8) arising on financing specifically entered into for
                                                                                                                                the development of the property were capitalised during the financial year and are included in property
(d)   The details of the Group’s hotel properties at 31 December 2010 were:                                                     under construction.

                                                                                                         remaining        (b)   Details of the property under construction as at 31 December 2010 are as follows:
                                                                                         tenure             lease
                                                                                         of land             term                                                                                               expected         site area/
                                                                                                                                                                                           tenure    stage of completion              gross
      PARKROYAL on                – a 534-room hotel at Kitchener Road,                  Freehold                   –           property                                                   of land completion       date         floor area
        Kitchener Road              Singapore
                                                                                                                                                                                                                                      (sq m)
      PARKROYAL on                – a 343-room hotel at Beach Road, Singapore            99-year lease      57 years
        Beach Road                                                                       from 1968
                                                                                                                                Upper Pickering Street
      PARKROYAL Darling           – a 345-room hotel at Darling Harbour, Sydney,         Freehold                   –           A proposed development comprising 363-room hotel            99 year         19%      Mid-2012        6,959/
        Harbour, Sydney             Australia                                                                                     and approximately 7,300 square metres of office        leasehold                                   29,812
      PARKROYAL Parramatta        – a 196-room hotel at Parramatta, Australia            Freehold                   –             space                                                  from 2008

      Sheraton Perth Hotel        – a 486-room hotel and carpark at Adelaide             Freehold                   –     (c)   Bank borrowings of a subsidiary of $88,480,000 (2009: $88,480,000) (Note 23(a)) is secured by a legal mortgage
                                    Terrace, Perth, Australia                                                                   on the land and proposed developments and all present and future rights and interests arising from the lease,
                                                                                                                                sale and other agreements in respect of the development.
      PARKROYAL Kuala Lumpur – a 426-room hotel and a 6-storey podium block              Freehold                   –
        and President House    at Jalan Sultan Ismail, Kuala Lumpur, Malaysia                                             21.   intAngibles
                             – a 320-lot carpark at Jalan Sultan Ismail, Kuala           Leasehold          70 years
                               Lumpur, Malaysia                                          expiring in                                                                                           the group                  the company
                                                                                         2080
                                                                                                                                                                                            2010        2009             2010       2009
      PARKROYAL Penang            – a 309-room resort hotel at Jalan Batu                Freehold                   –                                                                      $’000       $’000            $’000      $’000
        Resort                      Ferringhi, Penang, Malaysia
      PARKROYAL Saigon            – a 193-room hotel and 4-storey annex block            49-year lease      33 years            Trademark (Note (a) below)                               12,524         13,289               –          204
                                    at Nguyen Van Troi Street, Ho Chi Minh City,         from 1994                              Goodwill arising on consolidation
                                    Vietnam                                                                                       (Note (b) below)                                       13,911         13,911               –             –
      Sofitel Plaza Hanoi         – a 309-room hotel and 36-unit serviced                48-year lease      31 years            Computer software costs – under development
                                    apartment at Thanh Nien Road, Hanoi,                 from 1993                                (Note (c) below)                                        2,932              –            589             –
                                    Vietnam                                                                                     Contract acquisition costs (Note (d) below)               1,405              –              –             –
      Pan Pacific Suzhou          – a 481-room hotel at Xinshi Road, Suzhou,             50-year lease      34 years                                                                     30,772         27,200            589           204
                                    Jiangsu, The People’s Republic of China              from 1994
      PARKROYAL Yangon            – a 267-room hotel at the corner of Alan Pya           30-year lease      17 years
                                    Phaya Road and Yaw Min Gyi Road, Yangon,             from 1997
                                    Union of Myanmar




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                       ANNUAL REPORT 2010
                                                                                              A bRANd
112                                                                                           NEw ERA                                                                                                                             113



notes to the Financial statements                                                                                   notes to the Financial statements
For the financial year ended 31 december 2010                                                                       For the financial year ended 31 december 2010



21.   intAngibles (continueD)                                                                                       21.   intAngibles (continueD)
(a)   Trademark                                                                                                     (b)   Goodwill arising on consolidation (continued)

                                                                   the group                  the company                 Key assumptions used for fair value less cost to sell calculations:
                                                                2010        2009            2010        2009
                                                               $’000       $’000            $’000      $’000                                                                                                     china     malaysia

      At the beginning of the financial year                  13,289        14,115             204           304          2010
      Addition                                                   107             –             107             –          Growth rate                                                                            9.8%          1.6%
      Transfer                                                     –             –            (269)            –          Discount rate                                                                         12.3%          6.2%
      Amortisation for the financial year                       (872)         (826)            (42)         (100)
      At the end of the financial year                        12,524        13,289               –           204          2009
                                                                                                                          Growth rate                                                                            14.0%         2.4%
      Cost                                                    15,045        14,938             784           946          Discount rate                                                                          12.3%         7.3%
      Accumulated amortisation                                (2,521)        (1,649)          (784)         (742)
                                                                                                                    (c)   Computer software costs – under development
      Net book value                                          12,524        13,289               –           204
                                                                                                                                                                                           the group               the company
(b)   Goodwill arising on consolidation                                                                                                                                                 2010        2009          2010       2009
                                                                                                                                                                                       $’000       $’000         $’000      $’000
      There were no movements in goodwill arising on consolidation for the current and previous financial year.
                                                                                                                          At the beginning of the financial year                           –           –             –             –
      Impairment tests for goodwill
                                                                                                                          Additions                                                    2,932           –           589             –
      Goodwill is allocated to the Group’s cash-generating units (“CGUs”) identified according to countries               At the end of the financial year                             2,932           –           589             –
      of operation and business segment. A segment-level summary of the goodwill allocation is analysed as
      follows:                                                                                                      (d)   Contract acquisition costs

                                                                                             hotel ownership                                                                                                         the group
                                                                                             2010        2009                                                                                                     2010        2009
                                                                                            $’000       $’000                                                                                                    $’000       $’000


      China                                                                                13,080        13,080           Cost
      Malaysia                                                                                831           831           At the beginning of the financial year                                                     –             –
                                                                                           13,911        13,911           Additions                                                                              1,435             –
                                                                                                                          At the end of the financial year                                                       1,435             –
      The recoverable amount of the above CGU was determined based on fair value less cost to sell calculations.
      The fair value less cost to sell reflect the best estimate of the amount obtainable from the sale of a CGU
                                                                                                                          Accumulated amortisation
      in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal. The fair
      values were determined by independent professional valuers using the cash flows projections of 5 and 9              At the beginning of the financial year                                                     –             –
      years (2009: 5 and 9 years) which were prepared based on the expected future market trend.                          Amortisation charge                                                                       30             –
                                                                                                                          At the end of the financial year                                                          30             –

                                                                                                                          Net book value                                                                         1,405             –

                                                                                                                          In 2010, the Group incurred costs in the securing of management contracts. These costs have been capitalised
                                                                                                                          as intangible assets in accordance with the group policy in Note 2.5(d).




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                               ANNUAL REPORT 2010
                                                                                              A bRANd
114                                                                                           NEw ERA                                                                                                                           115



notes to the Financial statements                                                                               notes to the Financial statements
For the financial year ended 31 december 2010                                                                   For the financial year ended 31 december 2010



22.   trADe AnD other pAYAbles                                                                                  23.   borroWings (continueD)

                                                                   the group                  the company       (a)   Securities granted
                                                               2010         2009            2010       2009           The bank overdrafts and loans are secured by mortgages on certain subsidiaries’ hotel properties; and/or
                                                               $’000       $’000            $’000      $’000          assignment of all rights and benefits with respect to the properties. The net book value of hotel properties
                                                                                                                      which have been pledged as securities amounted to $327,739,000 (2009: $324,159,000) (Note 19(c)).
      Current
      Trade payables:                                                                                                 Bank borrowings of a subsidiary of $88,480,000 (2009: $88,480,000) is secured by a legal mortgage on the land
      – non-related parties                                   15,149        16,199          2,382       3,660         and proposed developments and all present and future rights and interests arising from the lease, sale and
      – fellow subsidiaries                                      300           268              –         254         other agreements in respect of the development (Note 20(c)).
      – holding company                                        1,309           279              –         272   (b)   Repricing analysis
      – associated company                                         –             5              –           –
      – subsidiaries                                               –             –             48         140         Interest on the bank loans of the Group and of the Company is on floating-rate basis and all the loans are due
                                                              16,758        16,751          2,430       4,326         for repricing between one to twelve months (2009: between one to six months) from the end of the reporting
                                                                                                                      period. The carrying values of the loans approximate their fair values.
      Other payables:                                                                                           24.   DerivAtive finAnciAl instruments
      – accrued operating expenses                            31,410        27,073          4,303       2,743
      – sundry creditors                                       8,861         4,761          1,805       1,478                                                                                                    the group
      – retention monies                                         388           675            353         288                                                                                              contract
      – accrued interest payable                                 335           285             43           –                                                                                              notional fair value
      – rental deposits                                        1,129         1,845            203         326                                                                                               amount     liability
      – other deposits                                         3,052         2,883             93          94                                                                                                $’000       $’000
                                                              45,175        37,522          6,800       4,929
                                                                                                                      2010
                                                              61,933        54,273          9,230       9,255         Cash-flow hedges
                                                                                                                      – Interest rate swaps                                                                  40,000           457
      Non-current                                                                                                     Less: Current portion                                                                                   457
      Rental deposits                                          3,057          2,882         2,928       2,715         Non-current portion                                                                                       –
      Retention monies                                         2,068              –             –           –
                                                               5,125          2,882         2,928       2,715
                                                                                                                      2009
      Total trade and other payables                          67,058        57,155         12,158      11,970         Cash-flow hedges
                                                                                                                      – Interest rate swaps                                                                   40,000           439
      The carrying amount of rental deposits and retention monies approximate their fair values.                      Less: Current portion                                                                                      –
                                                                                                                      Non-current portion                                                                                      439
23.   borroWings
                                                                                                                      A subsidiary entered into Singapore dollar interest rate swap to hedge floating semi-annual interest payments
                                                                   the group                  the company
                                                                                                                      on borrowings that will mature on 5 October 2011. The interest rate swap terminates on 5 October 2011.
                                                                2010        2009             2010       2009
                                                               $’000       $’000            $’000      $’000          Fair value gains and losses on the interest rate swaps recognised in the hedging reserve are transferred to
                                                                                                                      income statement as part of interest expense over the period of the borrowings.
      Current
      Bank overdrafts (unsecured)                                  9              –                –       –    25.   holDing compAnY
      Bank loans (secured)                                    70,654          6,087                –       –          The Company’s immediate and ultimate holding company is UOL Group Limited (“UOL”).
                                                              70,663          6,087                –       –
                                                                                                                      In 2010, the advances to the holding company are unsecured with interest charged at 0.40% above a subsidiary’s
      Non-current
                                                                                                                      average costs of funds and is repayable on demand. The effective interest rate at the end of the reporting
      Bank loans (secured)                                   120,564       176,031         28,609          –          period was 1.99% (2009: 2.18%) per annum. The carrying values of the advances to the holding company
                                                                                                                      approximate their fair values.
      Total borrowings                                       191,227       182,118         28,609          –




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                             ANNUAL REPORT 2010
                                                                                                  A bRANd
116                                                                                               NEw ERA                                                                                                                                   117



notes to the Financial statements                                                                                         notes to the Financial statements
For the financial year ended 31 december 2010                                                                             For the financial year ended 31 december 2010



26.   loAns from subsiDiAries                                                                                             27.   provision for retirement benefits (continueD)
      Details of the loans from subsidiaries are as follows:                                                              (b)   The movements during the year recognised in the statements of financial position were as follows:

      Current                                                                                                                                                                                                              the group
      (a)    Interest-free loans                                                                                                                                                                                        2010        2009
                                                                                                                                                                                                                       $’000       $’000
             Loans from a subsidiary of $nil (2009: $4,653,000) are interest-free. The loans have no fixed terms of
             repayment and are expected to be repaid within 12 months from the end of the reporting period.                     At the beginning of the financial year                                                 2,316          2,112
                                                                                                                                Benefits paid                                                                           (179)            (61)
      Non-current
                                                                                                                                Charged to income statement (Note 6)                                                     343            290
      (a)    Interest-free loans                                                                                                Exchange differences                                                                      59             (25)
                                                                                                                                At the end of the financial year                                                       2,539          2,316
             Loans of $78,222,000 (2009: $81,216,000) are interest-free. The fair value of the interest-free loans from
             subsidiaries is $76,307,000 (2009: $79,021,000). The fair value is computed based on the present value       (c)   The expense recognised in the income statement may be analysed as follows:
             of the cash flows on the loans discounted at a rate of 2.43% (2009: 2.78%), which is the borrowing rate
             that the directors expect would be available to the Company at the end of the reporting period. The                                                                                                           the group
             loans have no fixed terms of repayment but are not expected to be repaid within 12 months from the
             end of the reporting period.                                                                                                                                                                               2010        2009
                                                                                                                                                                                                                       $’000       $’000
      (b)    Floating rate loans
                                                                                                                                Current service cost                                                                     203               178
             Loans from subsidiaries of $4,090,000 (2009: $7,380,000) with interest charged on a floating-rate basis,
                                                                                                                                Interest on obligation                                                                   140               112
             subject to monthly repricing. The carrying values of the loans approximate their fair values. The loans
             have no fixed terms of repayment but are not expected to be repaid within 12 months from the end of                Expense recognised in the income statement                                               343               290
             the reporting period.
                                                                                                                                The charge to the income statement was included under ‘administrative expenses’ in the income statement.
      (c)    Fixed rate loans
                                                                                                                          (d)   The principal actuarial assumptions used in respect of the Group’s defined benefit plan were as follows:
             Loans of $18,545,000 (2009: $18,067,000) with interest charged at fixed rate of 3.50% (2009: 3.50%) per
             annum. The carrying values of the loans approximate their fair values. The loans have no fixed terms of                                                                                                       the group
             repayment but are not expected to be repaid within 12 months from the end of the reporting period.                                                                                                         2010        2009
                                                                                                                                                                                                                          %           %
27.   provision for retirement benefits

                                                                                                     the group                  Discount interest rate                                                                    6.2              6.2
                                                                                                  2010        2009              Future salary increase                                                                    6.5              6.5
                                                                                                 $’000       $’000              Inflation rate                                                                            3.5              3.5
                                                                                                                                Normal retirement age (years)
      Non-current                                                                                2,539          2,316           – Male                                                                                     55               55
                                                                                                                                – Female                                                                                   50               50
(a)   A subsidiary in Malaysia operates an unfunded defined benefit scheme under the Collective Union Agreement
      for unionised employees and certain management staff. Benefits payable on retirement are calculated by
      reference to length of service and earnings over the employees’ years of employment. Provision for post-
      employment benefit obligations is made in the financial statements so as to provide for the accrued liability
      at the end of the reporting period. An actuarial valuation, based on the projected unit credit method, of
      the fund is conducted by a qualified independent actuary once every three years as the directors are of the
      opinion that yearly movement in provision is not likely to be significant. The most recent revaluation was at
      31 December 2009.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                      ANNUAL REPORT 2010
                                                                                                   A bRANd
118                                                                                                NEw ERA                                                                                                                                         119



notes to the Financial statements                                                                                          notes to the Financial statements
For the financial year ended 31 december 2010                                                                              For the financial year ended 31 december 2010



28.   DeferreD income tAxes                                                                                                28.   DeferreD income tAxes (continueD)
      Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set off current         The movements in the deferred income tax assets and liabilities (prior to offsetting of balances within the same
      income tax assets against current income tax liabilities and when the deferred income taxes relate to the                  tax jurisdiction) during the financial year are as follows:
      same fiscal authority. The amounts, determined after appropriate offsetting, are shown on the statements of
      financial position as follows:                                                                                             The Group

                                                                       the group                   the company                   Deferred income tax liabilities
                                                                   2010         2009             2010       2009
                                                                                                                                                                                        fair value
                                                                   $’000       $’000             $’000      $’000
                                                                                                                                                                                     adjustments
                                                                                                                                                                                   on investment
      Deferred income tax assets:                                                                                                                                                   property and      unremitted
      – to be recovered within one year                              (78)          (625)               –             –                                                                 surplus on          foreign
      – to be recovered after more than one year                  (2,705)        (2,705)               –             –                                              Accelerated    revaluation of         income,                      other
                                                                                                                                                                             tax    certain hotel    interest and Amortisation temporary
                                                                  (2,783)        (3,330)               –             –                                              depreciation       properties       dividends of intangibles differences     total
      Deferred income tax liabilities:                                                                                                                                    $’000             $’000            $’000        $’000        $’000    $’000
      – to be settled within one year                               513           1,448            717          1,519
      – to be settled after more than one year                   49,218          46,774         31,095         29,053            2010
                                                                 49,731          48,222         31,812         30,572            At the beginning of the
                                                                                                                                   financial year                        18,737           25,813           1,519         2,224           (71)   48,222
                                                                 46,948          44,892         31,812         30,572            Currency translation differences           522                –               –             –            (1)      521
                                                                                                                                 Charged/(credited) to
      The movements in the deferred income tax account are as follows:                                                             income statement                         350            1,696            (802)         (124)        (132)       988
                                                                                                                                 At the end of the financial year        19,609           27,509             717         2,100         (204)    49,731
                                                                       the group                   the company
                                                                   2010         2009             2010       2009                 2009
                                                                   $’000       $’000             $’000      $’000                At the beginning of the
                                                                                                                                   financial year                        12,543           28,701           5,864         2,485         (734)    48,859
      At the beginning of the financial year                     44,892          46,845         30,572         32,882            Currency translation differences           443               (7)              –             –            5        441
      Currency translation differences                              564             363              –              –            Effects of changes in tax rate:
      Effects of change in tax rate:                                                                                             – income statement                        (333)           (1,365)          (326)         (138)           2     (2,160)
      – income statement (Note 9(a))                                    –        (2,160)               –        (1,657)          – equity                                     –              (165)             –             –            –       (165)
      – equity (Note 30(b),(d))                                         –          (162)               –          (165)          Charged/(credited) to
      Tax charge/(credit) to:                                                                                                      income statement                       6,082            (1,351)        (4,019)         (123)         656      1,245
      – income statement (Note 9(a))                              1,495               25         1,240           (488)           Acquisition of subsidiaries                  2                 –              –             –            –          2
      – equity (Note 30(d))                                          (3)             (21)            –              –            At the end of the financial year        18,737           25,813           1,519         2,224          (71)    48,222
      Acquisition of subsidiaries                                     –                2             –              –
      At the end of the financial year                           46,948          44,892         31,812         30,572

      Deferred income tax assets are recognised for tax losses carried forward to the extent that realisation of the
      related tax benefits through future taxable profits is probable. The Group has unrecognised tax losses of
      approximately $15,000 (2009: $15,000) at the end of the reporting period which can be carried forward and
      used to offset against future taxable income subject to those subsidiary companies meeting certain statutory
      requirements in their respective countries of incorporation. These tax losses have no expiry date.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                                 ANNUAL REPORT 2010
                                                                                              A bRANd
120                                                                                           NEw ERA                                                                                                                           121



notes to the Financial statements                                                                                notes to the Financial statements
For the financial year ended 31 december 2010                                                                    For the financial year ended 31 december 2010



28.   DeferreD income tAxes (continueD)                                                                          29.   shAre cApitAl of pAn pAcific hotels group limiteD
      The Group (continued)                                                                                                                                                                                 number
                                                                                                                                                                                                           of shares     Amount
      Deferred income tax assets
                                                                                                                                                                                                                ‘000      $’000
                                                                                     fair value
                                                    excess of                            loss on
                                                depreciation                         derivative                        2010 and 2009
                                                 over capital                          financial                       At the beginning and end of the financial year                                        600,000      557,333
                                                  allowances       tax losses      instruments        total
                                                       $’000            $’000              $’000     $’000             All issued ordinary shares have no par value and are fully paid.

      2010                                                                                                       30.   reserves
      At the beginning of the financial year          (2,003)          (1,252)              (75)     (3,330)                                                                          the group                 the company
      Currency translation differences                    43                –                 –          43                                                                       2010         2009           2010       2009
      Charged to income statement                          –              507                 –         507                                                                       $’000       $’000           $’000      $’000
      Credited to equity                                   –                –                (3)         (3)
      At end of the financial year                    (1,960)            (745)              (78)     (2,783)           Fair value reserve (Note (a) below)                        6,591         7,456         6,591          7,456
      2009                                                                                                             Asset revaluation reserve (Note (b) below)                23,070       23,070         24,590         24,590
      At the beginning of the financial year           (1,473)           (484)               (57)    (2,014)           Currency translation reserve (Note (c) below)             (3,567)       (7,884)            –              –
      Currency translation differences                      1              (79)                –         (78)          Hedging reserve (Note (d) below)                            (379)         (364)            –              –
      Effects of changes in tax rate:                                                                                                                                            25,715       22,278         31,181         32,046
      – equity                                              –                –                 3           3
                                                                                                                       All the reserves are non-distributable.
      Credited to income statement                       (531)            (689)                –     (1,220)
      Credited to equity                                    –                –               (21)        (21)    (a)   Fair value reserve
      At end of the financial year                     (2,003)          (1,252)              (75)    (3,330)
                                                                                                                                                                                      the group                 the company
      The Company                                                                                                                                                                  2010        2009           2010        2009
                                                                                                                                                                                  $’000       $’000           $’000      $’000
      Deferred income tax liabilities
                                                                     fair value
                                                                  adjustments                                          At the beginning of the financial year                     7,456        2,392          7,456          2,392
                                                                 on investment                                         Fair value (losses)/gains on available-for-sale
                                                                 property and unremitted                                 financial assets (Note 15)                                (865)       5,064           (865)         5,064
                                                                    surplus on        foreign                          At the end of the financial year                           6,591        7,456          6,591          7,456
                                                Accelerated      revaluation of      income,
                                                         tax      certain hotel interest and                     (b)   Asset revaluation reserve
                                                depreciation        properties     dividends             total
                                                      $’000              $’000          $’000           $’000                                                                         the group                 the company
      2010                                                                                                                                                                         2010        2009           2010        2009
      At the beginning of the financial year           3,239           25,814             1,519      30,572                                                                       $’000       $’000           $’000      $’000
      Charged/(credited) to income statement             346            1,696              (802)      1,240
      At the end of the financial year                 3,585           27,510               717      31,812            At the beginning of the financial year                    23,070       22,905         24,590         24,425
                                                                                                                       Effect of change in Singapore tax rate                         –          165              –            165
      2009                                                                                                             At the end of the financial year                          23,070       23,070         24,590         24,590
      At the beginning of the financial year            3,654           27,620             1,608     32,882
                                                                                                                       The asset revaluation reserve does not take into account the surplus of $84,507,000 (2009: $75,983,000) and
      Effect of changes in tax rate                                                                                    $592,638,000 (2009: $514,339,000), arising from the revaluation of the hotel properties of the Company and of
      – income statement                                 (203)           (1,365)              (89)    (1,657)          the Group respectively as stated in Note 19.
      – equity                                              –              (165)                –       (165)
      Credited to income statement                       (212)             (276)                –       (488)
      At the end of the financial year                  3,239           25,814             1,519     30,572




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                             ANNUAL REPORT 2010
                                                                                               A bRANd
122                                                                                            NEw ERA                                                                                                                                123



notes to the Financial statements                                                                                     notes to the Financial statements
For the financial year ended 31 december 2010                                                                         For the financial year ended 31 december 2010



30.   reserves (continueD)                                                                                            32.   contingent liAbilities
(c)   Currency translation reserve                                                                                          The Company has guaranteed the borrowings of a subsidiary amounting to $4,714,000 (2009: $3,093,000). The
                                                                                                                            borrowings were denominated in United States Dollar.
                                                                                                 the group
                                                                                                                            At the end of the reporting period, the Group has given guarantees of $7,557,000 (2009: $9,834,000) in respect
                                                                                              2010        2009              of banking facilities granted to an associated company. The guarantees granted are unsecured.
                                                                                             $’000       $’000
                                                                                                                            The directors are of the view that no material losses will arise from these contingent liabilities.
      At the beginning of the financial year                                                 (7,884)      (34,117)
      Net currency translation differences of financial statements of foreign                                               The Company has also given undertakings to provide financial support to certain subsidiaries.
        subsidiaries and borrowings designated as hedges against foreign
        subsidiaries                                                                          5,262        32,347     33.   commitments
      Less: Amount attributable to non-controlling interests                                   (945)        (6,114)   (a)   Capital commitments
                                                                                              4,317        26,233
      At the end of the financial year                                                       (3,567)        (7,884)         Capital expenditure contracted for at the end of the reporting period but not recognised in the financial
                                                                                                                            statements are as follows:
(d)   Hedging reserve
                                                                                                                                                                                             the group                    the company
                                                                                                 the group                                                                               2010         2009              2010       2009
                                                                                              2010        2009                                                                           $’000       $’000              $’000      $’000
                                                                                             $’000       $’000
                                                                                                                            Expenditure contracted for
      At the beginning of the financial year                                                   (364)         (259)            – property, plant and equipment                         200,149           7,424         64,427        2,182
      Effect of change in Singapore tax rate                                                      –             (3)           – property under construction                           137,687         163,344              –            –
      Fair value loss                                                                          (525)         (357)                                                                    337,836         170,768         64,427        2,182
      Deferred tax on fair value loss                                                            89             61
                                                                                                                            On 21 December 2010, the Group entered into a conditional sale and purchase agreement to acquire the
                                                                                               (436)         (296)          Hilton Melbourne Airport hotel in Australia for a cash consideration of $141,544,000. The capital commitment
      Transfer to income statement (Note 8)                                                     507           234           (included above) relating to the acquisition amounted to $128,085,000 at the end of the reporting period.
      Tax on transfer adjustments                                                               (86)           (40)
                                                                                                421           194     (b)   Operating lease commitments – where a group company is a lessee
      At the end of the financial year                                                         (379)         (364)
                                                                                                                            The Group leases various premises under non-cancellable operating lease agreements. The leases have varying
      The hedging reserve comprises the effective portion of the cumulated net change in the fair value of interest         terms, escalation clauses and renewal rights.
      rate swaps for hedged transactions that have not occurred.
                                                                                                                            The future aggregate minimum lease payable under non-cancellable operating leases contracted for at the
31.   DiviDenDs                                                                                                             end of the reporting period but not recognised as liabilities, are analysed as follows:

                                                                                             the group and the                                                                                                              the group
                                                                                                 company                                                                                                                 2010        2009
                                                                                              2010        2009                                                                                                          $’000       $’000
                                                                                             $’000       $’000
                                                                                                                            Not later than one year                                                                    3,619        2,495
      Final one-tier dividend paid in respect of the previous financial year of 3.5 cents                                   Later than one year but not later than five years                                          5,639        3,344
        (2009: one-tier dividend of 4 cents) per share                                      21,000         24,000
                                                                                                                            Later than five years                                                                      5,989        7,040
      At the forthcoming Annual General Meeting on 19 April 2011, a final dividend of 4 cents per share                                                                                                               15,247       12,879
      amounting to $24,000,000 will be recommended. These financial statements do not reflect this dividend,
      which will be accounted for in shareholders’ equity as an appropriation of retained profits in the financial
      year ending 31 December 2011.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                      ANNUAL REPORT 2010
                                                                                                     A bRANd
124                                                                                                  NEw ERA                                                                                                                                 125



notes to the Financial statements                                                                                            notes to the Financial statements
For the financial year ended 31 december 2010                                                                                For the financial year ended 31 december 2010



33.   commitments (continueD)                                                                                                34.   finAnciAl risK mAnAgement (continueD)
(c)   Operating lease commitments – where a group company is a lessor                                                        (a)   Market risk (continued)

      The Group leases various premises under non-cancellable operating lease agreements. The leases have varying                  (i)   Currency risk (continued)
      terms, escalation clauses and renewal rights.
                                                                                                                                         The Group’s currency exposure based on the information provided to key management is
      The Group and Company lease out its investment properties to non-related parties under non-cancellable                             as follows:
      operating leases (Note 18). The future minimum lease receivable under non-cancellable operating leases
      contracted for at the end of the reporting period but not recognised as receivables, are analysed as follows:                                                    sgD        usD         AuD        mYr       rmb       others        total
                                                                                                                                                                      $’000      $’000       $’000      $’000     $’000       $’000       $’000
                                                                        the group                    the company
                                                                    2010         2009              2010       2009                       The Group
                                                                    $’000       $’000              $’000      $’000                      At 31 December 2010
                                                                                                                                         Financial assets
      Not later than one year                                     13,463          11,854           9,547          9,297                  Cash and bank balances        5,185    14,369      23,725      6,214     2,548        5,863     57,904
      Later than one year but not later than five years            2,503          14,873           1,211         13,684                  Trade and other
                                                                  15,966          26,727          10,758         22,981                    receivables and other
                                                                                                                                           assets                    11,880      3,666      21,645      2,209       449        1,923     41,772
34.   finAnciAl risK mAnAgement
                                                                                                                                         Advances to holding
      Financial risk factors                                                                                                               company                   49,630           –           –          –         –           –     49,630
                                                                                                                                         Available-for-sale
      The Board of Directors provides guidance for overall risk management. The management continually monitors                            financial assets          17,167          –           –          –         –            –     17,167
      the Group’s risk management process to ensure that an appropriate balance between risk and control is                                                          83,862     18,035      45,370      8,423     2,997        7,786    166,473
      achieved. Risk management policies and systems are reviewed regularly to reflect changes in market conditions
      and the Group’s activities.
                                                                                                                                         Financial liabilities
      The Group’s activities expose it to market risk (including currency risk, interest rate risk and price risk), credit               Trade and other payables (33,647)      (10,494)    (11,032)    (5,678)   (2,993)     (3,214) (67,058)
      risk and liquidity risk. The Group’s overall risk management strategy seeks to minimise adverse effects from                       Borrowings               (180,172)           –           –     (6,341)   (4,714)          – (191,227)
      the unpredictability of financial markets on the Group’s financial performance. When necessary, the Group
                                                                                                                                         Derivative financial
      uses financial instruments such as interest rate swaps, currency forwards and foreign currency borrowings to
                                                                                                                                           instruments                (457)           –           –          –         –           –      (457)
      hedge certain financial risk exposures.
                                                                                                                                                                  (214,276)     (10,494)    (11,032)   (12,019)   (7,707)     (3,214) (258,742)
(a)   Market risk
                                                                                                                                         Net financial assets/
      (i)    Currency risk                                                                                                                 (liabilities)            (130,414)    7,541      34,338      (3,596)   (4,710)      4,572     (92,269)
                                                                                                                                         Less: Net financial
             The Group operates in the Asia Pacific region and is exposed to foreign exchange risk arising from                            assets/(liabilities)
             various currency exposures primarily with respect to Australian Dollar (“AUD”), Malaysian Ringgit                             denominated in the
             (“MYR”), Renminbi (“RMB”) and United States Dollar (“USD”). As the entities in the Group transact                             respective entities’
             substantially in their functional currency, the Group’s exposure to currency risk is not significant.                         functional currencies     128,582     (1,550)    (34,633)    3,633     4,710       (3,062)    97,680
             The Group has a number of investments in foreign subsidiaries whose net assets are exposed to currency                      Add: Firm commitments
             translation risk. Currency exposures to the net assets of the Group’s subsidiaries in Australia, Malaysia,                    and highly probable
             Myanmar, China and Vietnam are managed through borrowings, as far as are reasonably practical, in                             forecast transactions in
             foreign currencies which broadly match those in which the net assets are denominated or in currencies                         foreign currencies              –          –    128,085           –         –           –    128,085
             that are freely convertible.                                                                                                Less: Firm commitments
                                                                                                                                           and highly probable
                                                                                                                                           forecast transactions
                                                                                                                                           denominated in the
                                                                                                                                           respective entities
                                                                                                                                           functional currencies           –         –     (115,015)        –          –           –    (115,015)
                                                                                                                                         Currency exposure            (1,832)    5,991       12,775        37          –       1,510      18,481




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                           ANNUAL REPORT 2010
                                                                                                A bRANd
126                                                                                             NEw ERA                                                                                                                          127



notes to the Financial statements                                                                                      notes to the Financial statements
For the financial year ended 31 december 2010                                                                          For the financial year ended 31 december 2010



34.   finAnciAl risK mAnAgement (continueD)                                                                            34.   finAnciAl risK mAnAgement (continueD)
(a)   Market risk (continued)                                                                                          (a)   Market risk (continued)

      (i)   Currency risk (continued)                                                                                        (i)   Currency risk (continued)

                                          sgD        usD        AuD        mYr         rmb      others        total                The Company’s currency exposure based on the information provided to key management is as follows:
                                         $’000      $’000      $’000      $’000       $’000      $’000       $’000
                                                                                                                                                                                sgD        usD         AuD         mYr        total
            The Group                                                                                                                                                          $’000      $’000       $’000       $’000      $’000
            At 31 December 2009
            Financial assets                                                                                                       The Company
            Cash and bank balances       7,322     16,670     53,184       7,176      5,028       3,737      93,117                At 31 December 2010
            Trade and other                                                                                                        Financial assets
              receivables and other
              assets                     8,546      4,408      5,827       2,417        829       1,296      23,323                Cash and bank balances                       1,899         97         93           –       2,089
            Advances to holding                                                                                                    Trade and other receivables and other
              company                   55,662           –          –          –           –           –     55,662                  assets                                    99,586     66,006         47          15     165,654
            Available-for-sale                                                                                                     Advance to holding company                  49,630          –          –           –      49,630
              financial assets          18,032          –          –           –          –           –      18,032                Available-for-sale financial assets         17,167          –          –           –      17,167
                                        89,562     21,078     59,011       9,593      5,857       5,033     190,134                                                           168,282     66,103        140          15     234,540
                                                                                                                                   Financial liabilities
            Financial liabilities                                                                                                  Trade and other payables                   (12,158)         –           –          –      (12,158)
            Trade and other payables (20,358)      (10,944)    (9,755)     (5,312)    (9,318)     (1,468) (57,155)
                                                                                                                                   Borrowings                                 (28,609)         –           –          –      (28,609)
            Borrowings               (164,801)           –          –    (14,224)     (3,093)          – (182,118)
                                                                                                                                   Loans from subsidiaries                    (43,422)   (57,435)          –          –    (100,857)
            Derivative financial
             instruments                 (439)           –          –          –           –           –      (439)                                                           (84,189)   (57,435)          –          –    (141,624)
                                     (185,598)     (10,944)    (9,755)   (19,536)    (12,411)     (1,468) (239,712)
                                                                                                                                   Net financial assets                        84,093      8,668        140          15      92,916
            Net financial assets/                                                                                                  Less: Net financial assets/(liabilities)
              (liabilities)             (96,036)   10,134     49,256      (9,943)     (6,554)     3,565     (49,578)                 denominated in the Company’s
            Less: Net financial                                                                                                      functional currency                      (84,093)         –          –           –     (84,093)
              assets/(liabilities)                                                                                                 Currency exposure                                –      8,668        140          15       8,823
              denominated in the
              respective entities’
              functional currencies     96,089        337     (49,285)     9,968      6,554       (3,179)    60,484
            Currency exposure               53     10,471         (29)        25          –          386     10,906

            The Group does not have significant exposure to currency risk other than USD and AUD. Assuming that
            the USD and AUD change against the SGD by 5% (2009: 5%) with all other variables including tax rate
            being held constant, the effects on the Group’s profit after tax will be as follows:

                                                                                                increase/(Decrease)
                                                                                                  2010        2009
                                                                                                  $’000      $’000
            The Group
            USD against SGD
            – strengthened                                                                         300          524
            – weakened                                                                            (300)        (524)
            AUD against SGD
            – strengthened                                                                         639           –
            – weakened                                                                            (639)          –




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                               ANNUAL REPORT 2010
                                                                                                 A bRANd
128                                                                                              NEw ERA                                                                                                                                       129



notes to the Financial statements                                                                                        notes to the Financial statements
For the financial year ended 31 december 2010                                                                            For the financial year ended 31 december 2010



34.   finAnciAl risK mAnAgement (continueD)                                                                              34.   finAnciAl risK mAnAgement (continueD)
(a)   Market risk (continued)                                                                                            (a)   Market risk (continued)

      (i)    Currency risk (continued)                                                                                         (iii)   Cash flow and fair value interest rate risks

                                                              sgD         usD          AuD         mYr         total                   Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate
                                                                                                                                       because of changes in market interest rates. Fair value interest rate risk is the risk that the fair value of
                                                             $’000       $’000        $’000       $’000       $’000                    a financial instrument will fluctuate due to changes in market interest rates.

             The Company                                                                                                               The Group’s exposure to cash flow interest rate risks arises mainly from variable-rate borrowings.
             At 31 December 2009                                                                                                       The Company’s exposure to cash flow interest rate risks arises mainly from borrowings and loans to
                                                                                                                                       subsidiaries at variable rates. The management of Group and Company monitor closely the changes in
             Financial assets
                                                                                                                                       interest rates and when appropriate, manages their exposure to changes in interest rates by entering
             Cash and bank balances                           3,181       6,365           86           –       9,632                   into fixed rate arrangements where necessary.
             Trade and other receivables and
               other assets                                205,610       87,444          192         582    293,828                    The Group’s and Company’s variable-rate financial assets and liabilities on which effective hedges
             Advance to holding company                     55,662            –            –           –     55,662                    have not been entered into, are denominated mainly in SGD, USD, MYR and RMB. Assuming that the
             Available-for-sale financial assets            18,032            –            –           –     18,032                    interest-rates increase/decrease by 1% with all other variables including tax rate being held constant,
                                                                                                                                       the effects on the profit after tax will be lower/higher as follows:
                                                           282,485       93,809          278         582    377,154
             Financial liabilities
                                                                                                                                                                                                  the group                    the company
             Trade and other payables                       (11,970)          –            –           –     (11,970)
                                                                                                                                                                                              2010         2009              2010       2009
             Loans from subsidiaries                        (49,205)    (62,111)           –           –    (111,316)
                                                                                                                                                                                              $’000       $’000              $’000      $’000
                                                            (61,175)    (62,111)           –           –    (123,286)
                                                                                                                                       SGD                                                    1,163          1,036             691            690
             Net financial assets                          221,310       31,698          278         582    253,868
                                                                                                                                       USD                                                        –              –             547            667
             Less: Net financial assets/(liabilities)
                                                                                                                                       MYR                                                       48            107               –              –
               denominated in the Company’s
               functional currency                         (221,310)          –            –           –    (221,310)                  RMB                                                       35             23               –              –
             Currency exposure                                    –      31,698          278         582      32,558
                                                                                                                         (b)   Credit risk
             Assuming that the USD change by a respective 5% against the SGD (2009: 5%), with all other variables
             including tax rate being held constant, the effects on the Company’s profit after tax will be as follows:         Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
                                                                                                                               loss to the Group. The Group’s and Company’s major classes of financial assets are bank deposits and trade
                                                                                                                               and other receivables. For trade receivables, the Group adopts the policy of dealing only with customers of
                                                                                                 Increase/(Decrease)           appropriate credit history, and obtaining sufficient security such as deposits and bankers’ guarantees where
                                                                                                   2010        2009            appropriate to mitigate credit risk. Bank deposits were mainly placed with financial institutions which have
                                                                                                  $’000       $’000            high credit ratings. There are no significant credit risks arising from other receivables.

                                                                                                                               Credit exposure to an individual customer or counterparty is generally restricted by credit limits that are
             The Company                                                                                                       approved by the respective management at the entity level based on ongoing credit evaluation. The customer’s
             USD against SGD                                                                                                   or counterparty’s payment profile and credit exposure are continuously monitored at the entity level by the
             – strengthened                                                                         433        1,585           respective management and at Group management.
             – weakened                                                                            (433)      (1,585)
                                                                                                                               The Group’s and Company’s maximum exposure to credit risk on corporate guarantees provided to banks on
      (ii)   Price risk                                                                                                        subsidiaries’ and an associated company’s loans are disclosed in Note 32.

             The Group and Company are exposed to equity securities price risk due to its quoted investment
             in securities listed in Singapore, which has been classified in the consolidated statement of financial
             position as available-for-sale financial assets. Management does not consider the exposure to be
             significant as the quoted investment is intended to be held for long-term and the value of the quoted
             investment is not significant to the Group’s and the Company’s financial statements.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                           ANNUAL REPORT 2010
                                                                                                  A bRANd
130                                                                                               NEw ERA                                                                                                                                  131



notes to the Financial statements                                                                                        notes to the Financial statements
For the financial year ended 31 december 2010                                                                            For the financial year ended 31 december 2010



34.   finAnciAl risK mAnAgement (continueD)                                                                              34.   finAnciAl risK mAnAgement (continueD)
(b)   Credit risk (continued)                                                                                            (b)   Credit risk (continued)

      The credit risk of trade and other receivables based on the information provided to key management is                    (ii)   Financial assets that are past due and/or impaired (continued)
      as follows:
                                                                                                                                                                                             the group                    the company
                                                                       the group                  the company                                                                            2010         2009              2010       2009
                                                                   2010         2009            2010       2009                                                                          $’000       $’000              $’000      $’000
                                                                   $’000       $’000            $’000      $’000
                                                                                                                                      Gross amount                                         289              382              –              1
      By geographical areas                                                                                                           Less: Allowance for impairment                      (280)            (355)             –             (1)
                                                                                                                                                                                             9               27              –              –
      Singapore                                                   13,030        9,873        165,417        293,607
      Australia                                                    6,309        4,592              –              –
                                                                                                                                      Beginning of financial year                          355              527               1             –
      China                                                          553          699              –              –                   Allowance made                                       112               94               –             1
      Malaysia                                                     1,846        2,042              –              –                   Allowance utilised                                  (187)            (266)             (1)            –
      Vietnam                                                      1,503        1,203              –              –                   End of financial year                                280              355               –             1
      Myanmar                                                        263          348              –              –
      Others                                                       1,115        1,234              –              –      (c)   Liquidity risk
                                                                  24,619       19,991        165,417        293,607            The table below analyses the maturity profile of the Group’s and the Company’s financial liabilities based on
      By operating segments                                                                                                    contractual undiscounted cash flows:
      Property investments                                           914          676            353            612
      Hotel ownership                                             10,830       11,585        165,064        292,995                                                                          less than          between             between
      Hotel management services                                   12,875        7,730              –              –                                                                             1 year      1 and 2 years        2 to 5 years
                                                                  24,619       19,991        165,417        293,607                                                                              $’000              $’000               $’000

      (i)    Financial assets that are neither past due nor impaired                                                           The Group
                                                                                                                               At 31 December 2010
             Bank deposits that are neither past due nor impaired are mainly deposits with banks with high credit-             Trade and other payables                                          61,933              4,783                342
             ratings assigned by international credit rating agencies. Trade receivables that are neither past due nor         Borrowings                                                        74,204            120,446              2,170
             impaired are substantially companies with a good collection track record with the Group.
                                                                                                                               Net settled interest rate swaps                                      421                  –                  –
      (ii)   Financial assets that are past due and/or impaired                                                                Financial guarantee contracts                                      7,557                  –                  –
                                                                                                                                                                                                144,115            125,229              2,512
             There is no other class of financial assets that is past due and/or impaired except for trade receivables         At 31 December 2009
             and loans to subsidiaries and an associated company. The aged analysis of trade and other receivables             Trade and other payables                                           54,273               547             2,335
             past due but not impaired is as follows:                                                                          Borrowings                                                          8,440            88,811            98,430
                                                                                                                               Net settled interest rate swaps                                       187               143                 –
                                                                       the group                  the company                  Financial guarantee contracts                                           –             9,834                 –
                                                                   2010         2009            2010       2009                                                                                   62,900            99,335           100,765
                                                                   $’000       $’000            $’000      $’000               The Company
                                                                                                                               At 31 December 2010
                                                                                                                               Trade and other payables                                            9,231             2,585               342
      Past due 0 to 3 months                                       4,268         3,522             95           106
                                                                                                                               Borrowings                                                              –            28,754                 –
      Past due 3 to 6 months                                         108           113              –             –
                                                                                                                               Loans from subsidiaries                                               680            40,857            60,681
      Past due over 6 months                                          38           105              –             –            Financial guarantee contracts                                       7,557             4,714                 –
                                                                   4,414         3,740             95           106                                                                               17,468            76,910            61,023
                                                                                                                               At 31 December 2009
             The carrying amount of trade and other receivables and loans to subsidiaries and an associated company
             individually determined to be impaired and the movements in the related allowance for impairment                  Trade and other payables                                            9,255               380             2,335
             are as follows:                                                                                                   Loans from subsidiaries                                             5,395            41,998            65,407
                                                                                                                               Financial guarantee contracts                                       3,093             9,834                 –
                                                                                                                                                                                                  17,743            52,212            67,742




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                      ANNUAL REPORT 2010
                                                                                                   A bRANd
132                                                                                                NEw ERA                                                                                                                                   133



notes to the Financial statements                                                                                          notes to the Financial statements
For the financial year ended 31 december 2010                                                                              For the financial year ended 31 december 2010



34.   finAnciAl risK mAnAgement (continueD)                                                                                34.   finAnciAl risK mAnAgement (continueD)
(c)   Liquidity risk (continued)                                                                                           (e)   Fair value measurements (continued)

      The Group and the Company manage the liquidity risk by maintaining sufficient cash to enable them to meet                                                                                            level 1       level 2          total
      their normal operating commitments, having an adequate amount of committed credit facilities.
                                                                                                                                                                                                            $’000         $’000          $’000
(d)   Capital risk
                                                                                                                                 Group
                                                                                                                                 2010
      The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
      concern and to maintain an optimal capital structure so as to maximise shareholders’ value. In order to maintain           Assets
      or achieve an optimal capital structure, the Group may, subject to the necessary approvals from the shareholders           Available-for-sale financial assets
      and/or the regulatory authorities, adjust the amount of dividend payment, return capital to shareholders, issue              – Equity securities                                                      17,167              –              –
      new shares, buy back issued shares, obtain new borrowings or sell assets to reduce borrowings.

      Management monitors capital based on gearing ratio. The Group will strive to manage a ratio of total                       Liabilities
      borrowings to shareholders’ equity not exceeding 150%.                                                                     Derivatives used for hedging                                                     –           457              –

                                                                                                     the group                   Company
                                                                                                  2010        2009               2010
                                                                                                 $’000       $’000               Assets
                                                                                                                                 Available-for-sale financial assets
      Total borrowings                                                                         191,227        182,118              – Equity securities                                                      17,167              –              –
      Shareholders’ equity                                                                     801,683        790,477
                                                                                                                                                                                                           level 1       level 2          total
                                                                                                                                                                                                            $’000         $’000          $’000
      Total borrowings to shareholders’ equity ratio                                               24%            23%
                                                                                                                                 Group
      The Group’s bank borrowing facilities require it to meet certain ratios based on consolidated capital and
                                                                                                                                 2009
      reserves attributable to the Company’s equity holders and consolidated total equity. The Group has satisfactory
      complied with all covenants under its borrowing agreements.                                                                Assets
                                                                                                                                 Available-for-sale financial assets
      The Group and the Company are in compliance with the banks’ imposed capital requirements for the financial                   – Equity securities                                                      18,032              –        18,032
      years ended 31 December 2010 and 2009.

(e)   Fair value measurements                                                                                                    Liabilities
                                                                                                                                 Derivatives used for hedging                                                     –           439           439
      The following table presents assets and liabilities measure at fair value and classified by level of the following
      fair value measurement hierarchy:                                                                                          Company
                                                                                                                                 2009
      (a)    quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
                                                                                                                                 Assets
      (b)    inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
             either directly (ie as prices) or indirectly (ie derived from prices) (Level 2); and                                Available-for-sale financial assets
      (c)    inputs for the asset or liability that are not based on observable market data (unobservable inputs)                  – Equity securities                                                      18,032              –        18,032
             (Level 3).
                                                                                                                                 The fair value of financial instruments traded in active markets (such as available-for-sale securities) is based
                                                                                                                                 on quoted market prices at the end of the reporting period. The quoted market price used for financial assets
                                                                                                                                 held by the Group is the current bid price. These instruments are included in Level 1.

                                                                                                                                 The fair value of financial instruments that are not traded in an active market is determined by using valuation
                                                                                                                                 techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions
                                                                                                                                 existing at the end of each reporting period. Quoted market prices or dealer quotes for similar instruments are
                                                                                                                                 used to estimate fair value for long-term debt for disclosure purposes. Other techniques, such as estimated
                                                                                                                                 discounted cash flows, are used to determine fair value for the remaining financial instruments. The fair value
                                                                                                                                 of interest rate swaps is calculated as the present value of the estimated future cash flows. These investments
                                                                                                                                 are included in Level 2. The Group has no investments in Level 3 where valuation techniques were used based
                                                                                                                                 on significant unobservable inputs.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                          ANNUAL REPORT 2010
                                                                                                     A bRANd
134                                                                                                  NEw ERA                                                                                                                            135



notes to the Financial statements                                                                                            notes to the Financial statements
For the financial year ended 31 december 2010                                                                                For the financial year ended 31 december 2010



34.   finAnciAl risK mAnAgement (continueD)                                                                                  35.   relAteD pArtY trAnsActions (continueD)
(e)   Fair value measurements (continued)                                                                                    (d)   Key management personnel compensation is analysed as follows:

      The carrying value less impairment provision of trade receivables and payables are assumed to approximate                                                                                                             the group
      their fair values. The fair value of financial assets and financial liabilities for disclosure purposes is estimated
      based on quoted market prices or dealer quotes for similar instruments by discounting the future contractual                                                                                                       2010        2009
      cash flows at the current market interest rate that is available to the Group for similar financial instruments.                                                                                                  $’000       $’000
      The fair value of current borrowings approximates their carrying amount.
                                                                                                                                   Salaries and other short-term employee benefits                                      4,341        3,438
      There are no transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy for the financial years
                                                                                                                                   Directors’ fees                                                                        598          486
      ended 31 December 2010 and 2009.
                                                                                                                                   Post-employment benefits – contribution to CPF and pension fund                        173          138
35.   relAteD pArtY trAnsActions                                                                                                   Share options granted                                                                  116           22
(a)   In addition to the related party information disclosed elsewhere in the financial statements, there were the                                                                                                      5,228        4,084
      following significant transactions between the Group and related companies during the financial year on terms
                                                                                                                                   Total compensation to directors of the Company included in above amounted to $2,722,000
      agreed between the parties concerned:
                                                                                                                                   (2009: $ 2,376,000).
                                                                        the group                    the company             36.   group segmentAl informAtion
                                                                    2010         2009              2010       2009
                                                                                                                                   Management has determined the operating segments based on the reports reviewed by the Executive
                                                                    $’000       $’000              $’000      $’000                Committee (“Exco”) that are used to make strategic decisions. The Exco comprises the Chairman, the Group
                                                                                                                                   Chief Executive and two other Board members of the Group.
      Transactions with UOL and its subsidiaries
      Acquisition of Parkroyal Serviced Residences                                                                                 The Exco considers the business from both a business and geographic segment perspective. The Group’s four
        Pte Ltd                                                          –           581                –           581            key business segments operate in various geographical areas.
      Staff costs recharges for corporate management
        and property maintenance services received                  2,382          3,542           1,420          1,843            The hotels owned by the Group are located in Singapore, Australia, Vietnam, Malaysia, China and Myanmar
      Fees received for management of hotels and                                                                                   and key asset and profit contributions are from the hotels in Singapore and Australia.
        serviced suites                                             2,599          1,489              78             78
                                                                                                                                   The property investment activities of the Group are concentrated in Singapore.
      Rental paid                                                     991            826             991            826
                                                                                                                                   The Group’s investment segment relates to the investments in equity shares in Singapore.
      Transactions with UOL’s associated companies
      Fees received for management of hotel                         6,782          5,628                –              –           The Group also provides hotel management services to companies and hotels in Singapore and overseas.
      Fees received for operation of spas                             493            339               47             34

      Transactions with banks and insurance companies
        in which certain directors have interests
      Interest earned from fixed deposits                           1,878          1,213              53              –
      Rental and maintenance fees received                            264            279              25             55
      Interest paid on bank loans                                   1,746          1,405             189             22
      Commitment and facility fee paid                                126          1,761              79             42
      Bankers’ guarantee commission                                   175            106             162            101
      Rental paid                                                     594            769               –              –
      Insurance premium paid                                          420            419              79            101

(b)   The borrowings (Note 23) of the Group and the Company amounting to $117,234,000 (2009: $88,480,000) and
      $28,754,000 (2009: $nil) respectively were extended by a bank in which certain directors have interests.

(c)   Cash at bank and fixed deposits with financial institutions (Note 11) of the Group and the Company amounting
      to $35,521,000 (2009: $68,878,000) and $2,047,000 (2009: $9,632,000) respectively were placed with a bank in
      which certain directors have interests.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                       ANNUAL REPORT 2010
                                                                                                                            A bRANd
136                                                                                                                         NEw ERA                                                                                                                                                               137



notes to the Financial statements                                                                                                                     notes to the Financial statements
For the financial year ended 31 december 2010                                                                                                         For the financial year ended 31 december 2010



36.   group segmentAl informAtion (continueD)                                                                                                         36.   group segmentAl informAtion (continueD)
      The segment information provided to the Exco for the reportable segments for the year ended                                                           The segment information provided to the Exco for the reportable segments for the year ended
      31 December 2010 is as follows:                                                                                                                       31 December 2009 is as follows:

                                                                                                                   hotel                                                                                                                                               hotel
                                                          hotel ownership                           property management                                                                                         hotel ownership                          property management
                                  Australia   singapore   vietnam   malaysia     china myanmar    investments    services investments        total                                      Australia   singapore   vietnam   malaysia     china myanmar   investments   services investments        total
                                     $’000       $’000      $’000     $’000     $’000     $’000        $’000       $’000       $’000        $’000                                          $’000       $’000      $’000     $’000     $’000    $’000        $’000      $’000       $’000        $’000


      Group                                                                                                                                                 Group
      2010                                                                                                                                                  2009
      Revenue                                                                                                                                               Revenue
      Total segment sales         103,531        79,803    33,847    44,943     16,773    9,664       21,529      27,535      17,691      355,316           Total segment sales           90,316       65,284    32,822    41,888     22,738   7,829       13,027     19,895      16,202      310,001
      Inter-segment sales                –           –          –           –        –       –         (4,200)    (9,924)     (16,950)     (31,074)         Inter-segment sales                –           –          –           –       –        –            –      (6,135)    (16,060)     (22,195)
      Sales to external parties   103,531        79,803    33,847    44,943     16,773    9,664       17,329      17,611         741      324,242           Sales to external parties     90,316       65,284    32,822    41,888     22,738   7,829       13,027     13,760         142      287,806


      Adjusted EBITDA               26,817       24,159    17,478    10,652       (568)   2,543       11,453       3,739         741       97,014           Adjusted EBITDA               23,173       18,223    16,660    10,995      3,497   1,100        8,825      1,670         142       84,285
      Depreciation                   7,092        7,444     4,948     5,987      5,046     821         1,118        234             –      32,690           Depreciation                   6,344        7,572     5,165     6,129      4,417     804          803        271            –      31,505
      Amortisation                       –         145          –           –        –       –              –       757             –         902           Amortisation                       –         100          –           –       –        –            –        726            –         826
      Fair value gain on                                                                                                                                    Fair value loss on
         investment properties           –           –          –           –        –       –         9,979           –            –       9,979              investment properties           –           –          –           –       –        –        1,620           –           –       1,620
      Other gains – net                  –         156          –           –        –       –              –          –            –         156
                                                                                                                                                            Total segment assets        149,532      388,670     53,579   102,276     92,929   9,806      161,365     24,638      18,032     1,000,827
      Total segment assets        187,618      419,207     48,398    98,794     82,715    8,916      167,609      31,250      17,167     1,061,674          Total segment assets
      Total segement assets                                                                                                                                   includes:
        includes:                                                                                                                                           Investment in associated
      Investment in associated                                                                                                                                 companies                       –           –      6,909           –       –        –            –         45            –       6,954
         companies                       –           –      7,328           –        –       –              –        66             –       7,394           Additions during the
      Additions during the                                                                                                                                    financial year to:
        financial year to:                                                                                                                                  – property, plant and
      – property, plant and                                                                                                                                   equipment                    2,258        3,717      732        849      7,466     322        3,872        466            –      19,682
        equipment                    7,171        1,428     1,037     2,354      1,751     567         6,632        458             –      21,398           – investment property              –           –          –           –       –        –        1,632           –           –       1,632
      – property under                                                                                                                                      – property under
        construction                     –      25,656          –           –        –       –              –          –            –      25,656             construction                     –      11,063          –           –       –        –            –           –           –      11,063


      Total segment                                                                                                                                         Total segment
        liabilities                 11,143      20,625      5,145     9,031      5,432    5,910        4,402       7,909            –      69,597             liabilities                  9,777      15,567      5,413     7,825      8,354   4,915        3,965      3,655            –      59,471




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                                                                          ANNUAL REPORT 2010
                                                                                               A bRANd
138                                                                                            NEw ERA                                                                                                                                      139



notes to the Financial statements                                                                                     notes to the Financial statements
For the financial year ended 31 december 2010                                                                         For the financial year ended 31 december 2010



36.   group segmentAl informAtion (continueD)                                                                         36.   group segmentAl informAtion (continueD)
      Sales between segments are carried out at arm’s length. The revenue from external parties reported to the             Reportable segments’ liabilities are reconciled to total liabilities as follows:
      Exco is measured in a manner consistent with that in the statement of comprehensive income.
                                                                                                                            The amounts provided to the Exco with respect to total liabilities are measured in a manner consistent with
      The Exco assesses the performance of the operating segments based on a measure of Earnings before                     that of the financial statements. These liabilities are allocated based on the operations of the segment. All
      interest, tax, depreciation and amortisation (“adjusted EBITDA”). This measurement basis excludes the effects         liabilities are allocated to the reportable segments other than current income tax liabilities, deferred income
      of expenditure from the operating segments such as restructuring costs and goodwill impairment that are               tax liabilities, borrowings and derivative financial instruments.
      not expected to recur regularly in every period. Finance income and finance expenses are not allocated to
      segments, as this type of activity is driven by the Group Treasury, which manages the cash position of the                                                                                                  2010               2009
      Group. Since the Exco reviews adjusted EBITDA, the results of discontinued operations are not included in                                                                                                  $’000              $’000
      the measure of adjusted EBITDA.
                                                                                                                            Segment liabilities for reportable segments                                         69,597             59,471
      A reconciliation of adjusted EBITDA to profit before tax and discontinued operations is provided as follows:          Unallocated:
                                                                                                                              Current income tax liabilities                                                    16,040          14,848
                                                                                       2010             2009                  Deferred income tax liabilities                                                   49,731          48,222
                                                                                      $’000             $’000                 Borrowings                                                                       191,227         182,118
                                                                                                                              Derivative financial instruments                                                     457             439
      Adjusted EBITDA for reportable segments                                        97,014            84,285               Total liabilities                                                                  327,052         305,098
      Depreciation                                                                  (32,690)          (31,505)
                                                                                                                            Geographical information
      Amortisation                                                                     (902)             (826)
      Fair value gain/(loss) on investment properties                                 9,979            (1,620)              The Group’s four business segments operate in six main geographical areas. In Singapore, where the Company
      Gain of liquidation of investment in a subsidiary                                 156                 –               is domiciled, the areas of operation of the Company are principally hotel ownership, hotel management
      Finance income                                                                  3,368             2,505               services, property investments and investment holdings.
      Finance expenses                                                               (6,574)           (3,655)              The main activities in Australia, Vietnam, Malaysia, China and Myanmar consist of hotel ownership.
      Profit before tax                                                              70,351            49,184
                                                                                                                            Revenue and non-current assets are shown by the geographical areas where the assets are located.
      Reportable segments’ assets are reconciled to total assets as follows:

      The amounts provided to the Exco with respect to total assets are measured in a manner consistent with that                                                                                                        revenue
      of the financial statements. For the purposes of monitoring segment performance and allocating resources                                                                                                    2010               2009
      between segments, the Exco monitors the property, plant and equipment, intangible assets, inventories,                                                                                                     $’000              $’000
      receivables, operating cash and investment properties attributable to each segment. All assets are allocated
      to reportable segments other than fixed deposits, tax recoverable, deferred income tax assets and advances            Singapore                                                                          111,104          87,432
      to holding company.                                                                                                   Australia                                                                          103,531          90,316
                                                                                                                            Vietnam                                                                             33,847          32,822
                                                                                       2010              2009               Malaysia                                                                            44,943          41,887
                                                                                                                            China                                                                               17,273          22,738
                                                                                      $’000             $’000
                                                                                                                            Myanmar                                                                              9,664           7,829
                                                                                                                            Others                                                                               3,880           4,782
      Segment assets for reportable segments                                     1,061,674          1,000,827                                                                                                  324,242         287,806
      Unallocated:
        Fixed deposits                                                              14,648             65,057                                                                                                     non-current assets
        Tax recoverable                                                                  –                641                                                                                                     2010            2009
        Deferred income tax assets                                                   2,783              3,330                                                                                                    $’000           $’000
        Advances to holding company                                                 49,630             55,662
                                                                                                                            Singapore                                                                          601,556         566,770
      Total assets                                                               1,128,735          1,125,517               Australia                                                                          145,213         138,260
                                                                                                                            Vietnam                                                                             43,530          49,878
                                                                                                                            Malaysia                                                                            92,998          94,182
                                                                                                                            China                                                                               82,578          89,469
                                                                                                                            Myanmar                                                                              6,959           7,760
                                                                                                                            Others                                                                               5,064           4,516
                                                                                                                                                                                                               977,898         950,835




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                      ANNUAL REPORT 2010
                                                                                                 A bRANd
140                                                                                              NEw ERA                                                                                                                                141



notes to the Financial statements                                                                                       corporate governance report
For the financial year ended 31 december 2010                                                                           For the year ended 31 december 2010



36.   group segmentAl informAtion (continueD)                                                                           The Company is committed in its continuing efforts to achieve high standards of corporate governance and business
                                                                                                                        conduct so as to enhance long-term shareholder value and safeguard the interests of its stakeholders. It has adopted
      Geographical segments (continued)
                                                                                                                        a framework of corporate governance policies and practices in line with the principles and guidelines set out in the
      There is no single external customer that contributes 10% or more to the Group’s or the Company’s revenues.       Code of Corporate Governance 2005 (“Code”).

      Revenue from major products and services                                                                          This report sets out the corporate governance practices that have been adopted by the Company with specific
                                                                                                                        reference to the principles of the Code, as well as any deviation from any guideline of the Code together with an
      Revenue from external customers are derived mainly from the Group’s hotel ownership, property investment          explanation for such deviation.
      and hotel management services. Revenue from investment holdings are included in “Others” below. Breakdown
      of the revenue is as follows:                                                                                     stAtement of compliAnce
                                                                                                                        The Board of Directors (the “Board”) of the Company confirms that for the financial year ended 31 December 2010,
                                                                                     2010                2009           the Company has generally adhered to the principles and guidelines as set out in the Code.
                                                                                    $’000               $’000
                                                                                                                        boArD mAtters
      Hotel ownership                                                            288,561              260,877           Principle 1: The Board’s Conduct of its Affairs
      Hotel management services                                                   17,611               13,760
      Property investments                                                        17,329               13,027           The principal responsibilities of the Board are:
      Others                                                                         741                  142           1.     reviewing and approving the corporate policies, strategies, budgets and financial plans of the Company;
                                                                                 324,242              287,806           2.     monitoring financial performance including approval of the annual and interim financial reports;
                                                                                                                        3.     overseeing and reviewing the processes for evaluating the adequacy of internal controls, risk management,
37.   neW or reviseD Accounting stAnDArDs AnD interpretAtions                                                                  financial reporting and compliance;
      Below are the mandatory standards, amendments and interpretations to existing standards that have been            4.     approving major funding proposals, investments, acquisitions and divestment proposals;
      published, and are relevant for the Group’s accounting periods beginning on or after 1 January 2011 or later      5.     planning board and senior management succession and the remuneration policies; and
      periods and which the Group has not early adopted:                                                                6.     assuming responsibility for corporate governance.

      •	    A
            	 mendments	to	FRS	24	–	Related	party	disclosures	(effective	for	annual	periods	beginning	on	or	after	      To facilitate effective management, certain functions of the Board have been delegated to various board committees,
            1 January 2011)                                                                                             which review and make recommendations to the Board on specific areas. There are currently four standing board
      •	    A
            	 mendments	to	FRS	32	Financial	Instruments:	Presentation	–	Classification	of	rights	issues	(effective	     committees appointed by the Board, namely:
            for annual periods beginning on or after 1 February 2010)
      •	    	 mendments	to	INT	FRS	114	–	Prepayments	of	a	minimum	funding	requirement	(effective	for	annual	
            A                                                                                                                  Executive Committee
            periods commencing on or after 1 January 2011)                                                                     Nominating Committee
      •	    	NT	FRS	119	Extinguishing	financial	liabilities	with	equity	instruments	(effective	for	annual	periods	
            I                                                                                                                  Remuneration Committee
            commencing on or after 1 July 2010).                                                                               Audit Committee

      The management anticipates that the adoption of the above FRSs, INT FRSs and amendments to FRS in the             The membership and attendance of the Directors for the four standing board committees are set out on page 148.
      future periods will not have a material impact on the financial statements of the Group and of the Company
      in the period of their initial adoption, except for the amendments to FRS 24 – related party disclosures.         The Board has conferred upon the Executive Committee (“EXCO”) and the Group Chief Executive (“GCE”) and the
                                                                                                                        President & CEO (“CEO”) certain discretionary limits and powers for capital expenditure, budgeting, treasury and
      The amendment removes the requirement for government-related entities to disclose details of all transactions     investment activities and human resource management. The levels of authorisation required for specified transactions
      with the government and other government-related entities. It also clarifies and simplifies the definition of a   are specified in a Charter adopted by the Board.
      related party. However, the revised definition of a related party will mean that some entities will have more
      related parties and will be required to make additional disclosures.                                              The EXCO, GCE and CEO are assisted by the management team (“Management”) in the daily operations and
                                                                                                                        administration of the Group’s business activities and the effective implementation of the Group’s strategies. The
      Management is currently considering the revised definition to determine whether any additional disclosures
                                                                                                                        GCE sets the major strategies and policies for the Group. The CEO is responsible for leading the implementation of
      will be required and has yet to put systems in place to capture the necessary information. It is therefore not
                                                                                                                        strategies and the day-to-day operations and businesses of the Group. Management is issued with a chart of authority
      possible to disclose the financial impact, if any, of the amendment on the related party disclosures.
                                                                                                                        and limits for capital expenditure, budgets, investment and other activities for their compliance.
38.   AuthorisAtion of finAnciAl stAtements
                                                                                                                        In addition to the GCE and the CEO, the key personnel leading the management team are Executive Director, Asset
      These financial statements were authorised for issue in accordance with a resolution of the Board of Directors    Management (“ED Asset Management”), Chief Financial Officer (“CFO”), Senior Vice President, Human Capital &
      of Pan Pacific Hotels Group Limited on 22 February 2011.                                                          Development (“SVP Human Capital”), Senior Vice President, Operations (“SVP Operations”), Senior Vice President,
                                                                                                                        Marketing & Sales (“SVP Marketing”) and Senior Vice President, Growth & Development (“SVP Development”).
                                                                                                                        Save for the ED Asset Management, the CFO, SVP Human Resources, SVP Operations, SVP Marketing and SVP
                                                                                                                        Development have no familial relationship with each other, the Chairman, the GCE and the CEO.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                     ANNUAL REPORT 2010
                                                                                                    A bRANd
142                                                                                                 NEw ERA                                                                                                                                        143



corporate governance report                                                                                                 corporate governance report
For the year ended 31 december 2010                                                                                         For the year ended 31 december 2010



The EXCO currently comprises four members, namely:                                                                          Principle 4: Board Membership

       Wee Cho Yaw, Chairman                                                                                                The Nominating Committee (“NC”) currently comprises three non-executive Directors of whom two are independent.
       Gwee Lian Kheng                                                                                                      The NC members are:
       Alan Choe Fook Cheong
       Wee Ee Chao                                                                                                                 Alan Choe Fook Cheong, Chairman
                                                                                                                                   Lim Kee Ming
The EXCO is chaired by the Chairman of the Board and has been given certain authority and functions such as                        Wee Cho Yaw
the formulation and review of policies, approval of investments, overall planning and review of strategy as well as
dealing with business of an urgent, important or extraordinary nature whilst the CEO is responsible for the day-to-day      The NC is responsible for re-nomination of Directors at regular intervals and at least every three years. In recommending
operations and administration of the Group.                                                                                 to the Board any re-nomination and re-election of existing Directors, the NC takes into consideration the Directors’
                                                                                                                            contribution and performance at Board meetings, including attendance, preparedness, participation and candour.
At the Board meetings, the Directors not only review the financial performance of the Company, but also participate
in discussions of matters relating to corporate governance, business operations, risks and transactions undertaken          The independence of the Board is also reviewed annually by the NC. The NC adopts the Code’s definition of
by the Company.                                                                                                             what constitutes an independent director in its review. The independent non-executive Directors are Alan Choe
                                                                                                                            Fook Cheong, Lim Kee Ming, Low Weng Keong and James Koh Cher Siang. Each NC member has abstained from
The Board conducts regular scheduled meetings on a quarterly basis. Ad-hoc meetings are convened when                       deliberations in respect of his own assessment. Lim Kee Ming will not be seeking re-appointment at the AGM on
circumstances require. The Company’s Articles of Association (“Articles”) allow a board meeting to be conducted             19 April 2011.
by way of telephonic and video-conferencing. The attendance of Directors at meetings of the Board and board
committees, as well as the frequency of such meetings, is disclosed on page 148.                                            Where a Director has multiple board representations, the NC also considers whether or not the Director is able to
                                                                                                                            and has adequately carried out his duties as a Director of the Company. The NC is satisfied that sufficient time and
New Directors are provided with information on the corporate background, the key personnel, the core businesses,            attention are being given by the Directors to the affairs of the Company, notwithstanding that some of the Directors
the group structure, financial statements of the Group and their scope of duties and responsibilities. All Directors are    have multiple board representations.
appointed to the Board by way of a formal letter of appointment. Guidance is also given to all Directors on regulatory
requirements concerning disclosure of interests and restrictions on dealings in securities. Training is made available to   Directors of or over 70 years of age are required to be re-appointed every year at the AGM under Section 153(6) of
Directors on the Company’s business and governance practices, updates/developments in the regulatory framework              the Companies Act before they can continue to act as a Director. The NC, with each member abstaining in respect
and environment affecting the Company including those organised by the Singapore Exchange Securities Trading                of his own re-appointment, has recommended to the Board that Wee Cho Yaw, Gwee Lian Kheng and Alan Choe
Limited (“SGX-ST”) and the Singapore Institute of Directors. This aims to give Directors better understanding of the        Fook Cheong, who are over 70 years of age, be nominated for re-appointment at the forthcoming AGM.
Group’s businesses and allows them to integrate into their roles and duties.
                                                                                                                            Article 94 of the Articles also require all Directors except a Managing Director to retire from office once at least in each
Principle 2: Board Composition and Guidance                                                                                 three years. These Directors may offer themselves for re-election if eligible. The NC has recommended that Wee Ee
                                                                                                                            Chao and Wee Ee Lim who retire by rotation pursuant to this Article, be nominated for re-election as well.
Currently, four of the ten-member Board are independent. As Lim Kee Ming is retiring and hence, does not wish
to be considered for re-appointment at the annual general meeting (“AGM”) on 19 April 2011, there will be three             The NC recommends all appointments and re-appointments of Directors to the Board. New directors are appointed
independent directors.                                                                                                      by way of a board resolution after the NC recommends their appointment for approval of the Board. New directors
                                                                                                                            thus appointed by way of board resolution must submit themselves for re-election at the next AGM pursuant to
With three Board members being independent directors constituting one-third of the Board, and such independent              Article 99 of the Articles.
directors having the requisite experience, expertise and standing, the Board is able to exercise objective judgment
independently, and no individual or small group of individuals dominate the Board’s decision-making process.                The NC makes recommendations to the Board on all board appointments. The search and nomination process for
                                                                                                                            new directors (if any) will be conducted through contacts and recommendations that go through the normal selection
The Articles allow for the maximum of ten Directors. The Board considers the current board size to be appropriate,          process, to ensure the search for the right candidates is as objective and comprehensive as possible.
taking into account the nature and scope of the Group’s operations.
                                                                                                                            Key information regarding the Directors’ academic qualifications and other appointments are set out on pages 149
The current Board comprises persons who possess diverse corporate experiences and as a group, the relevant                  to 150. In addition, information on shareholdings in the Company held by each Director is set out in the “Report of
qualifications and experience and core competencies necessary to manage the Group and contribute effectively to             the Directors” section of this Annual Report.
the Group.
                                                                                                                            Principle 5: Board Performance
Principle 3: Chairman and GCE/CEO
                                                                                                                            The NC has assessed the contributions of each Director to the effectiveness of the Board and evaluated the
The Company has a separate Chairman, GCE and CEO as it believes that a distinctive separation of responsibilities           performance of the Board as a whole. In evaluating the performance of the Board as a whole, the NC has adopted
between the Chairman, GCE and CEO will ensure an appropriate balance of power, increased accountability and                 certain quantitative indicators which include return on equity, return on assets and the Company’s share price
greater capacity of the Board for independent decision-making in the best interest of the Company and shareholders.         performance. These performance criteria allow the Company to make comparisons with its industry peers and are
The Chairman, GCE and CEO have no familial relationship with each other. The GCE has, working together with                 linked to long-term shareholder value. For consistency in assessment, the selected performance criteria are not
the CEO, the executive responsibility for the overall administration of the Group. On the other hand, the Chairman          changed from year to year and where circumstances deem it necessary for any of the criteria to be changed, the NC,
provides leadership to the Board. He sets the meeting agenda in consultation with the GCE and ensures that Directors        in its consultation with the Board will justify such changes.
are provided with accurate, timely and clear information.




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                               ANNUAL REPORT 2010
                                                                                                  A bRANd
144                                                                                               NEw ERA                                                                                                                                       145



corporate governance report                                                                                               corporate governance report
For the year ended 31 december 2010                                                                                       For the year ended 31 december 2010



Principle 6: Access to Information                                                                                        Wee Wei Ling and Amedeo Patrick Imbardelli, executive Directors of the Company, each have an employment contract
                                                                                                                          with the Company which may be terminated by the giving of 2 months’ notice and 3 months’ notice respectively. Their
Currently, Directors receive regular financial and operational reports on the Group’s businesses and briefings            individual remuneration package includes a variable bonus element (which is substantially linked to the performance
during its quarterly Board meetings. In addition, management reports comparing actual performance with budget,            of the Company).
highlighting key performance indicators, as well as accounts and reports on the financial performance of the Group
are also provided. During the quarterly Board meetings, key Management staff who are able to explain and provide          The RC reviews and makes recommendations to the Board on directors’ fees and allowances. RC members abstain
insights to the matters to be discussed at the Board meetings are invited to make the appropriate presentations and       from deliberations in respect of their own remuneration. Details of the total fees and other remuneration of the
answer any queries from Directors. Directors who require additional information may approach senior management            Directors are set out in the Remuneration Report on page 151. The GCE’s remuneration package is reviewed by the
directly and independently.                                                                                               Remuneration Committee of UOL.

Under the direction of the Chairman, the Company Secretaries are responsible for ensuring good information flow           Principle 9: Disclosure on Remuneration
within the Board and its committees and between senior management and non-executive Directors, as well as
facilitating orientation and assisting with professional development as required.                                         In relation to employees of the Group, the remuneration policy of the Company seeks to align the interests of such
                                                                                                                          employees with those of the Company as well as to ensure that remuneration is commercially attractive to attract,
Directors have separate and independent access to the advice and services of the Company Secretaries and                  retain and motivate employees. The typical remuneration package comprises both fixed and variable components,
may, either individually or as a group, in the furtherance of their duties and where necessary, obtain independent        with a base salary making up the fixed component and a variable component in the form of a performance bonus
professional advice at the Company’s expense.                                                                             and/or share options. The report on the remuneration of the top 5 key executives (who are not directors) of the
                                                                                                                          Company is disclosed on page 151.
The Company Secretaries attend all Board meetings and ensure that all Board procedures are followed. The
Company Secretaries, together with Management, ensure that the Company complies with all applicable statutory             Save for Wee Wei Ling who is an immediate family member of three Directors of the Company, namely Wee Cho
and regulatory rules. The minutes of all Board and Committee meetings are circulated to the Board.                        Yaw, Wee Ee Chao and Wee Ee Lim, no other employee who is an immediate family member of a Director was paid
                                                                                                                          more than $150,000 during FY2010. “Immediate family member” means spouse, child, adopted child, step-child,
remunerAtion mAtters                                                                                                      brother, sister and parent.
Principle 7: Procedures for Developing Remuneration Policies
                                                                                                                          AccountAbilitY AnD AuDit
The Remuneration Committee (“RC”) currently comprises three non-executive Directors of whom two are independent.          Principle 10: Accountability
The RC members are:
                                                                                                                          The Company announces in advance when quarterly and annual financial results will be released and ensures the
      Lim Kee Ming, Chairman                                                                                              financial results are released to its shareholders in a timely manner.
      Wee Cho Yaw
      Alan Choe Fook Cheong                                                                                               The Board is responsible for providing a balanced and understandable assessment of the Company’s performance,
                                                                                                                          position and prospects, including interim and other price sensitive public reports and reports to regulators, if
The RC is currently chaired by an independent Director. The RC is responsible for ensuring a formal procedure for         required.
developing policy on executive remuneration and for fixing the remuneration packages for Directors and senior
management. The RC recommends for the Board’s endorsement a framework of remuneration which covers all aspects            Management provides to members of the Board for their endorsement, annual budgets and targets, and management
of remuneration, including without limitation, directors’ fees, salaries, allowances, bonuses, options and benefits-in-   accounts which present a balanced and understandable assessment of the Company’s performance, position and
kind. None of the RC members or Director is involved in deliberations in respect of any remuneration, compensation        prospects on a regular basis.
or any form of benefit to be granted to him.
                                                                                                                          Principle 11: Audit Committee (“AC”)
The RC members are familiar with remuneration / compensation matters as they manage their own businesses and/
or are holding other directorships in the boards of other listed companies. The RC has access to appropriate expert       The AC comprises three members, with the members having many years of related accounting and financial
advice if necessary.                                                                                                      management expertise and experience, and all of whom are independent and non-executive Directors. The AC
                                                                                                                          members are:
Principle 8: Level and Mix of Remuneration
                                                                                                                                 Lim Kee Ming, Chairman
In determining remuneration packages, the RC takes into consideration industry practices and norms in                            Alan Choe Fook Cheong
compensation.                                                                                                                    Low Weng Keong

In relation to Directors, the performance-linked elements of the remuneration package for executive Directors             The AC carries out the functions set out in the Code and the Companies Act. The terms of reference include reviewing
are designed to align their interests with those of shareholders. For non-executive Directors, their remuneration is      the financial statements, the internal and external audit plans and audit reports, the external auditors’ evaluation of the
appropriate to their level of contribution, taking into account factors such as effort and time spent as well as their    system of internal accounting controls, the scope and results of the internal audit procedures, the cost effectiveness,
respective responsibilities.                                                                                              independence and objectivity of the external auditors and interested person transactions.

The Board recommends the fees to be paid to Directors for shareholders’ approval annually. The fees are divided on        In performing the functions, the AC has met with the internal and external auditors, without the presence of the GCE,
the basis that Directors with additional duties as members or chairmen of board committees would receive a higher         CEO and Management, at least annually and reviewed the overall scope of the internal and external audits and the
portion of the total fees.                                                                                                assistance given by Management to the auditors.

Gwee Lian Kheng, an executive Director of the Company, has an employment contract with UOL, which may be                  The AC has explicit authority to investigate any matter within its terms of reference. It has full access to, and the co-
terminated by either party giving 3 months’ notice. His remuneration package includes a variable bonus element            operation of Management, and full discretion to invite any Director or executive officer to attend its meetings. It has
(which is substantially linked to the performance of UOL) and share options of UOL.                                       reasonable resources to enable it to discharge its functions properly.

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                            ANNUAL REPORT 2010
                                                                                                   A bRANd
146                                                                                                NEw ERA                                                                                                                                        147



corporate governance report                                                                                               corporate governance report
For the year ended 31 december 2010                                                                                       For the year ended 31 december 2010



The AC has reviewed and is satisfied with the independence and objectivity of the external auditors and recommends        Management believes the above measures will ensure that the ERM Programme is a cohesive and comprehensive
to the Board the nomination of PricewaterhouseCoopers LLP for re-appointment.                                             one which employees of the Group will collectively participate in and contribute to in order to enhance the Group’s
                                                                                                                          internal controls. The ERM Programme is intended to ensure that the Group has a system to deal with current and
The Audit Committee Guideline Committee issued the Guidebook for Audit Committees in Singapore in October 2008            evolving risks so that the Group will stay on a sustainable growth path in the long term.
(“AC Guidebook”) and the AC Guidebook had been disseminated to the members of the AC for their reference.
                                                                                                                          The key risks identified can be broadly grouped as operational risks, financial risks and investment risks.
The Company has in place a Code of Business Conduct (“CBC”) which was adopted in 2006. The CBC is reviewed
by the AC regularly and is also disseminated to the employees who are required to affirm their compliance with the        Operational Risks
CBC. The CBC contains, inter alia, a whistle-blowing policy to encourage and provide a channel to employees to
report, in good faith and in confidence, concerns about possible fraud, improprieties in financial reporting or other     The Group’s operational risk framework is designed to ensure that operational risks are continually identified,
matters. The objective of such arrangement is to ensure independent investigation of such matters and for appropriate     managed and mitigated. This framework is implemented at each operating unit and in the case of the Group’s hotels,
follow-up action.                                                                                                         is monitored at the Group level by the Group’s asset management team. In the case of the Group’s investment and
                                                                                                                          hotel properties, these are subject to operating risks that are common to the property and hotel industries and to
Principle 12: Internal Controls                                                                                           the particular countries in which the investment and hotel properties are situated. It is recognised that risks can
                                                                                                                          never be entirely eliminated and the Group must always weigh the cost and benefit in managing the risks. As a tool
The Board recognises the importance of sound internal controls and risk management practices as part of good              to transfer and/or mitigate certain portions of risks, the Group also maintains insurance covers at levels determined
corporate governance. The Board is responsible for ensuring that Management maintains a sound system of internal          to be appropriate taking into account the cost of cover and risk profiles of the businesses in which it operates.
controls to safeguard shareholders’ investments and the assets of the Group.                                              Complementing the Management’s role is the internal audit which provides an independent perspective on the
                                                                                                                          controls that help to mitigate major operational risks.
The Group has in place various guidelines and strategies to manage risks and safeguard its businesses.
                                                                                                                          Management will continuously review and implement further improvements to the current measures as and when these
This includes the enterprise-wide risk management programme (“ERM Programme”) for the Group which was                     improvements are identified from the ERM Programme. To further enhance the existing operational risk framework,
introduced in 2009 in consultation with KPMG LLP and which the Group is continually cascading down to its business        Management will be taking steps to progressively cascade the ERM Programme down to the individual investment
and operations. The ERM Programme which consolidates the Group’s risk management practices in an enterprise-wide          and hotel property and reinforce a “risk-aware” culture amongst the employees.
framework would enable Management to have a formal structure to continually:-
                                                                                                                          Financial Risks
(i)   establish and evaluate the risk appetite of the Group,
(ii)  identify the key risks which the Group faces and the current controls and strategies for the Group to manage        The Group is exposed to a variety of financial risks, including interest rates, foreign currency, credit and liquidity risks.
      and/or mitigate these risks,                                                                                        The management of financial risks is outlined under Note 34 of the Notes to the Financial Statements.
(iii) assess the effectiveness of the current controls and strategies and determine if further risk treatment plans are
      needed in line with best practices, and                                                                             Investment Risks
(iv)  set up and monitor key risk indicators (“KRIs”) so that Management can evaluate and respond to risks that
have a material impact on the Group’s businesses and operations as and when they arise and take mitigating steps          The Board and EXCO have overall responsibility for determining the level and type of business risk the Group
as necessary.                                                                                                             undertakes. The Group has a dedicated Development and Growth department that evaluates all new investment
                                                                                                                          opportunites on the bases and investment criteria set out by the Board and EXCO. All major investment proposals
This ERM Programme is in line with the best practices highlighted in the AC Guidebook.                                    are submitted to the EXCO and the Board, as the case may be, for approval. Ongoing performance monitoring and
                                                                                                                          asset management of new and existing investments are performed by the Group. In addition, Management will
Key management staff had actively participated in the ERM Programme and they have acquired an adequate                    continually determine under the ERM Programme, if further measures could be implemented to monitor, analyse
understanding of ERM concepts, methodologies and tools to enable them to perform risk management functions in             and to the extent possible, mitigate the respective country risks in respect of which current and future investment
their respective areas of work. Further, the Group has set up a Group ERM Committee comprising senior members             projects are located.
of the Management team to oversee the direction, implementation and running of the ERM Programme and the
Group ERM Committee reports to the AC on the ERM Programme.                                                               The AC, with the assistance of internal and external auditors, has reviewed, and the Board is satisfied with, the
                                                                                                                          adequacy of such controls, including financial, operational and compliance controls established by Management.
It is intended that Management will continually review the key risks, both existing and emerging, current controls and
the KRIs on a regular basis and take necessary measures to address and mitigate any new key risks that may have           Principle 13: Internal Audit
arisen. Management will continue to reinforce the “risk-aware” culture within the Group. The AC will be updated
half-yearly or more frequently as needed, on the progress of the ERM Programme by Management.                             The Internal Audit function of the Group is supported by the Internal Audit Department of UOL, its holding company,
                                                                                                                          and it is independent of the activities it audits. The Deputy General Manager (Group Internal Audit) has a direct
Further, as PPHG is part of the UOL Group, its key risks and registers are consolidated and reviewed at the UOL           reporting line to the AC, with administrative reporting to the GCE.
Group level.
                                                                                                                          The Internal Audit Department aims to meet or exceed the Standards for the Professional Practice of Internal
Management will continually review the key risks, both existing and emerging, current controls and the KRIs on            Auditing set by the Institute of Internal Auditors. As part of its audit activities, the Internal Audit Department reviews
a regular basis and take necessary measures to address and mitigate any new key risks that may have arisen.               all interested party transactions and ensure that the necessary controls are in place and are complied with.
Management will continue to reinforce the “risk-aware” culture within the Group and to progressively cascade the
ERM Programme down to all levels of the Group’s businesses and hotel operations. The AC will be updated half-yearly       The Internal Audit function is adequately resourced and has appropriate standing within the Group. The Deputy
or more frequently as needed, on the progress of the ERM Programme including the key risks and risk management            General Manager (Group Internal Audit), who is employed by UOL, joined UOL in October 1997 and holds a Bachelor
controls and treatment plans by Management.                                                                               of Accountancy (Honours) Degree from the Nanyang Technological University. He is also a non-practising member
                                                                                                                          of the Institute of Certified Public Accountants of Singapore and a Member of the Institute of Internal Auditors
                                                                                                                          (Singapore).

                                                                                                                          The AC has reviewed and is satisfied with the adequacy of the Internal Audit function.

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                              ANNUAL REPORT 2010
                                                                                                 A bRANd
148                                                                                              NEw ERA                                                                                                                      149



corporate governance report                                                                                             corporate governance report
For the year ended 31 december 2010                                                                                     For the year ended 31 december 2010



communicAtion With shAreholDers                                                                                         pArticulArs of Directors
Principle 14: Communication with Shareholders                                                                                                                                               Directorship:     board
Principle 15: Greater Shareholder Participation                                                                                                                                             Date first        appointment
                                                                                                                                                                          board             appointed         executive/
The Group engages in regular, effective and fair communication with its shareholders through the quarterly              name of Director/                                 committees as     Date last         non-executive
release of the Group’s results, the timely release of material information through the SGXNET of SGX-ST and the         Academic & professional                           chairman or       re-appointed/     independent/
publication of the Annual Report. Shareholders and investors can also access information on the Company at its          qualifications                                Age member            re-elected        non-independent
website at www.pphg.com.

The Company also encourages greater shareholder participation at its annual general meetings and allows                 Wee Cho Yaw                                   81   EXCO – Chairman 25.05.1973         Non-executive
shareholders the opportunity to communicate their views on various matters affecting the Company. The Articles          Chinese high school; Honorary                      RC – Member     21.04.2010         Non-independent
allow a shareholder of the Company to appoint up to two proxies to attend and vote in his or her place at general       Doctor of Letters, National University             NC – Member
meetings. The Chairpersons of the EXCO, NC, RC and AC, as well as senior management, are present and available          of Singapore
to address questions at general meetings. The external auditors are also present to address any shareholders’ queries
on the conduct of audit and the preparation of the Auditors’ Report.
                                                                                                                        Gwee Lian Kheng                               70   EXCO – Member    20.01.1987        Executive
The Board notes that there should be separate resolutions at general meetings on each substantially separate issue      Bachelor of Accountancy (Hons),                                     28.04.2009        Non-independent
and supports the Code’s principle as regards “bundling” of resolutions. In the event that there are resolutions which   University of Singapore;
are interlinked, the Board will explain the reasons and material implications.                                          Fellow Member of Chartered
                                                                                                                        Institute of Management Accountants,
In line with its communications with shareholders, as and when briefings on the Company’s performance and financial     Association of Chartered
results are conducted for analysts and the media, the Company will also disclose the presentation materials on
SGXNET.                                                                                                                 Certified Accountants and
                                                                                                                        Institute of Certified Public
DeAlings in securities                                                                                                  Accountants of Singapore
In line with Listing Rule 1207 (18) on Dealings in Securities, the Company issues annually, with such updates as may
be necessary from time to time, a circular to its Directors, officers and employees prohibiting dealings in listed      Alan Choe Fook Cheong                         79   EXCO – Member    02.05.1990        Non-executive
securities of the Group from two weeks to one month, as the case may be, before the announcement of the Group’s         Bachelor of Architecture,                          AC – Member      21.04.2010        Independent
quarterly and full-year financial results and ending on the date of announcement of the results, or at any time they    University of Melbourne;                           RC – Member
are in possession of unpublished material price sensitive information.                                                  Diploma in Town & Regional                         NC – Chairman
                                                                                                                        Planning, University
Directors and officers are required to comply with and observe the laws on insider trading even if they trade in the
Company’s securities outside the prohibited periods. They are discouraged from dealing in the Company’s securities      of Melbourne;
on short-term considerations and should be mindful of the law on insider trading.                                       Fellowship Diploma,
                                                                                                                        Royal Melbourne Institute
AttenDAnce At boArD AnD boArD committee meetings                                                                        of Technology;
                                                                                                                        Fellow of Singapore Institute of
                                                                    Number of meetings attended in 2010                 Architects, Singapore Institute of
Name of Directors                                                                                                       Planners, and Royal Australian
                                                                BOARD       EXCO        AC       RC        NC           Institute of Architects;
Wee Cho Yaw                                                        4           2                  1         1           Member of Royal
Gwee Lian Kheng                                                    4           2                                        Institute of British Architects,
Alan Choe Fook Cheong                                              4           2         4        1         1           Royal Town Planning Institute,
Lim Kee Ming                                                       4                     4        1         1           Royal Australian Planning
                                                                                                                        Institute and American
Wee Ee Chao                                                        2           2
                                                                                                                        Planning Association
Low Weng Keong                                                     3                     3
Wee Wei Ling                                                       4
                                                                                                                        Lim Kee Ming (who retires on 19 April 2011)   83   AC – Chairman    01.06.1995        Non-executive
James Koh Cher Siang                                               4
                                                                                                                        Master of Science (International                   RC – Chairman    21.04.2010        Independent
Wee Ee Lim                                                         4
                                                                                                                        Trade & Finance) Columbia                          NC – Member
Amedeo Patrick Imbardelli                                          4                                                    University, New York;
Number of meetings held in 2010                                    4           2         4        1         1           Bachelor of Science
                                                                                                                        (Business Administration)
                                                                                                                        New York University, USA
                                                                                                                        Degree of Doctor of the
                                                                                                                        University of Adelaide honoris causa

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                            ANNUAL REPORT 2010
                                                                                                                            A bRANd
150                                                                                                                         NEw ERA                                                                                                                                                                              151



corporate governance report                                                                                                                              corporate governance report
For the year ended 31 december 2010                                                                                                                      For the year ended 31 december 2010



pArticulArs of Directors (continueD)                                                                                                                     remunerAtion report

                                                                                                 Directorship:              board
                                                                                                 Date first                 appointment                  REMUNERATION OF DIRECTORS
                                                                   board                         appointed                  executive/
name of Director/                                                  committees as                 Date last                  non-executive                The following table shows a breakdown (in percentage terms) of the remuneration of Directors for the year ended
                                                                                                                                                         31 December 2010 :
Academic & professional                                            chairman or                   re-appointed/              independent/
qualifications                                                 Age member                        re-elected                 non-independent
                                                                                                                                                                                                                       share     Defined                       share
                                                                                                                                                                                                           Directors’ option contribution              total option
Wee Ee Chao                                                     56     EXCO – Member             09.05.2006                 Non-executive                                                   salary bonuses      fees granta         plans others remuneration grantsb
Bachelor of Business Administration,                                                             21.04.2010                 Non-independent              remuneration bands                     %       %          %      %            %      %            % number
The American University,
Washington DC, USA                                                                                                                                       $1,750,000 to
                                                                                                                                                         $2,000,000
Low Weng Keong                                                  58     AC – Member               23.11.2005                 Non-executive                Amedeo Patrick
Fellow of CPA Australia, Institute                                                               23.04.2008                 Independent                  Imbardelli (1)                           48            22                3           2                    5          20                 100        34,000
of Chartered Accountants in
                                                                                                                                                         $250,000 to $500,000
England & Wales and Institute                                                                                                                            Wee Wei Lingc (2)                        64            16               10                                1           9                 100               –
of Certified Public Accountants
of Singapore;                                                                                                                                            Below $250,000
Associate Member of Chartered                                                                                                                            Wee Cho Yaw, Chairman                                    –            100                                 –           –                 100               –
Institute of Taxation (UK)                                                                                                                               Gwee Lian Kheng (3)                                      –            100                                 –           –                 100               –
                                                                                                                                                         Alan Choe Fook Cheong                                    –            100                                 –           –                 100               –
Wee Wei Ling                                                    58     Nil                        24.03.1994                Executive                    Lim Kee Ming                                             –            100                                 –           –                 100               –
Bachelor of Arts, Nanyang University                                                             28.04.2009                 Non-independent              Wee Ee Chao                                              –            100                                 –           –                 100               –
                                                                                                                                                         Low Weng Keong                                           –            100                                 –           –                 100               –
                                                                                                                                                         James Koh Cher Siang                                     –            100                                 –           –                 100               –
James Koh Cher Siang                                            64     Nil                       23.11.2005                 Non-executive
                                                                                                                                                         Wee Ee Lim                                               –            100                                 –           –                 100               –
Bachelor of Arts (Hons) in Philosophy,                                                           23.04.2008                 Independent
                                                                                                                                                         a     Fair value of share options is estimated using the Trinomial Tree model at date of grant.
Political Science and Economics;                                                                                                                         b     Refers to options granted on 5 March 2010 under the UOL 2000 Share Option Scheme to subscribe for ordinary shares in the capital of the holding
Master of Arts from                                                                                                                                            company, UOL Group Limited (“UOL”). The options may be exercised at any time during the option period from 5 March 2011 to 4 March 2020 at the
University of Oxford, UK;                                                                                                                                      offer price of S$3.95 per ordinary share.
                                                                                                                                                         c     Wee Wei Ling is the daughter of Wee Cho Yaw and sister of Wee Ee Chao and Wee Ee Lim.
Master in Public Administration,
Harvard University, USA                                                                                                                                  (1)
                                                                                                                                                               Amedeo Patrick Imbardelli, an executive director of the Company, has an employment contract with the Company
                                                                                                                                                               which may be terminated by either party giving three months’ notice. His remuneration package includes a
                                                                                                                                                               performance bonus of a minimum of three months base salary subject to the achievement of key performance
Wee Ee Lim                                                      49     Nil                       09.05.2006                 Non-executive                      indicators and financial targets set by the Company.
Bachelor of Arts (Economics),                                                                    21.04.2010                 Non-independent
Clark University, USA
                                                                                                                                                         (2)
                                                                                                                                                               Wee Wei Ling, an executive director of the Company, has an employment contract with the Company which may
                                                                                                                                                               be terminated by either party giving two months’ notice. Her remuneration package includes a variable bonus
                                                                                                                                                               element (which is substantially linked to the performance of the Company).
Amedeo Patrick Imbardelli                                       50     Nil                       21.04.2010                 Executive
Master of Science (Honours) in Finance,                                                                                     Non-independent              (3)
                                                                                                                                                               Gwee Lian Kheng, another executive director of the Company, has an employment contract with UOL.
The City University of New York, USA;
Fellow of the American Academy of                                                                                                                        REMUNERATION OF KEY EMPLOYEES
Financial Management, USA                                                                                                                                The remuneration1 of the top five key employees of the Group (who are not directors) is analysed into the respective
                                                                                                                                                         remuneration bands as follows :
Notes :
1) Directors’ shareholdings in the Company and related corporations, please refer to pages 66 and 67.
2) Directorships or Chairmanships in other listed companies and other major appointments, both present and over the preceding 3 years, please refer to   $500,000 to $750,000
   pages 12 to 15.                                                                                                                                       Senior Vice President, Hotel Operations (Joined on 16 March 2010)
                                                                                                                                                         Senior Vice President, Growth & Development
                                                                                                                                                         Senior Vice President, Marketing & Sales

                                                                                                                                                         $250,000 to $500,000
                                                                                                                                                         Chief Financial Officer
                                                                                                                                                         Senior Vice President, Human Capital & Development

                                                                                                                                                         1     Included in the remuneration is the value of share options granted during the year (if any) under the UOL 2000 Share Option Scheme. Fair value of share
                                                                                                                                                               options is estimated using the Trinomial Tree model.


PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                                                                                       ANNUAL REPORT 2010
                                                                                                            A bRANd
152                                                                                                         NEw ERA                                                                                                                                                                     153



interested person transactions                                                                                                   shareholdings statistics
                                                                                                                                 As at 2 March 2011



                                                              Aggregate value of all                                             size of shAreholDings
                                                              interested person transactions
                                                              during the financial year under                                    range                                                        no. of shareholders                          %         no. of shares                       %
                                                              review (excluding transactions    Aggregate value of all
                                                              less than $100,000 and            interested person transactions   1 - 999                                                                               46             0.67                   11,884                    0.00
                                                              transactions conducted            conducted under shareholders’    1,000 - 10,000                                                                     6,043            87.80               18,390,003                    3.06
                                                              under shareholders’ mandate       mandate pursuant to rule 920     10,001 - 1,000,000                                                                   782            11.36               33,942,049                    5.66
                                                              pursuant to rule 920 of the       (excluding transactions less     1,000,001 and above                                                                   12             0.17              547,656,064                   91.28
name of interested person                                     listing manual)                   than $100,000)                   total                                                                             6,883           100.00              600,000,000                  100.00
                                                                          $’000                             $’000                locAtion of shAreholDers

UOL Group Limited (“UOL”)                                                                                                        country                                                      no. of shareholders                          %         no. of shares                       %
Advance to UOL                                                                –                            49,630
                                                                                                                                 Singapore                                                                          6,766            98.30              597,736,484                   99.62
Interest received on advance to UOL                                           –                             1,185                Malaysia                                                                              67             0.97                  576,501                    0.10
                                                                                                                                 Others                                                                                50             0.73                1,687,015                    0.28
Management and corporate support services
                                                                                                                                 total                                                                             6,883           100.00              600,000,000                  100.00
  provided to the Pan Pacific Hotels Group
  by UOL                                                                                                                         tWentY lArgest shAreholDers
– Share of payroll                                                            –                             2,297
– Administrative fee                                                          –                                81                 no.        name                                                                                                    no. of shares                       %

                                                                                                                                    1        UOL Group Limited                                                                                          435,000,000                   72.50
UOL Claymore Investment Pte. Ltd.*
                                                                                                                                    2        UOB Kay Hian Pte Ltd                                                                                        55,447,652                    9.24
Fees received for the franchise of hotel                                      –                              809                    3        Tye Hua Nominees (Pte) Ltd                                                                                  38,380,000                    6.40
                                                                                                                                    4        United Overseas Bank Nominees Pte Ltd                                                                        3,845,659                    0.64
UOL Somerset Investments Pte. Ltd.*                                                                                                 5        Citibank Nominees Singapore Pte Ltd                                                                          3,751,500                    0.63
Fees received for the management of                                                                                                 6        DBS Nominees Pte Ltd                                                                                         3,368,403                    0.56
  serviced suites                                                             –                              900                    7        HSBC (Singapore) Nominees Pte Ltd                                                                            1,810,500                    0.30
                                                                                                                                    8        Morph Investments Ltd                                                                                        1,454,000                    0.24
Hua Ye xiamen Hotel Limited*                                                                                                        9        OCBC Nominees Singapore Pte Ltd                                                                              1,430,350                    0.24
Fees received for the management of hotel                                     –                              748                    10       Kor Beng Shien                                                                                               1,118,000                    0.19
                                                                                                                                    11       Oversea-Chinese Bank Nominees Pte Ltd                                                                        1,030,000                    0.17
UOL Serviced Residences Sdn Bhd*                                                                                                    12       Ong Kian Kok                                                                                                 1,020,000                    0.17
                                                                                                                                    13       Morgan Stanley Asia (Singapore) Securities Pte Ltd                                                           1,000,000                    0.17
Fees received for the management of
                                                                                                                                    14       Phillip Securities Pte Ltd                                                                                     918,000                    0.15
  serviced suites                                                             –                                64
                                                                                                                                    15       Citibank Consumer Nominees Pte Ltd                                                                             837,000                    0.14
                                                                                                                                    16       Kim Eng Securities Pte. Ltd.                                                                                   802,000                    0.13
Hotel Marina City Pte Ltd**                                                                                                         17       Teo Kok Kheng                                                                                                  800,000                    0.13
Fees received for the management of hotel                                     –                             6,782                   18       Ng Soo Giap                                                                                                    586,000                    0.10
                                                                                                                                    19       Wee Aik Koon Pte Ltd                                                                                           580,000                    0.10
                                                                                                                                    20       Goh Geok Ling                                                                                                  513,000                    0.09
* These companies are subsidiaries of UOL, a controlling shareholder.
** This is an associated company of UOL.                                                                                                     Total                                                                                                     553,692,064                   92.29

                                                                                                                                 Based on information available to the Company as at 2 March 2011, approximately 11.8% of the issued shares of the
                                                                                                                                 Company is held by the public and therefore, Rule 723 of the SGX-ST Listing Manual is complied with.
                                                                                                                                 Substantial Shareholders as shown in the Register of Substantial Shareholders

                                                                                                                                                                                                                no. of shares fully paid
                                                                                                                                 name                                                        Direct interest Deemed interest                                      total                 %1

                                                                                                                                 UOL Group Limited (“UOL”)                                        489,440,652 2                         –                489,440,652                 81.57
                                                                                                                                 Wee Cho Yaw                                                                –                 489,440,652 3              489,440,652                 81.57
                                                                                                                                 United Overseas Bank Limited 4                                             –                  38,380,000                 38,380,000                  6.40
                                                                                                                                 Notes
                                                                                                                                 1
                                                                                                                                    As a percentage of the issued share capital of the Company, comprising 600,000,000 shares.
                                                                                                                                 2
                                                                                                                                    Includes 54,440,652 shares held in the name of UOB Kay Hian Pte Ltd (“UOB Kay Hian”).
                                                                                                                                 3
                                                                                                                                    Dr Wee is deemed to have an interest in the 435,000,000 shares held by UOL and 54,440,652 shares held by UOB Kay Hian for the benefit of UOL.
                                                                                                                                 4
                                                                                                                                    Held in the name of Tye Hua Nominees (Pte) Ltd.

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                                                               ANNUAL REPORT 2010
                                                                                                                                       A bRANd
154                                                                                                                                    NEw ERA                                                                                                                                155



share price and turnover                                                                                                                                    notice oF annual general meeting
For the period from 1 January 2006 to 31 December 2010



      share price ($)                                                                                                                                       Notice is hereby given that the 42nd Annual General Meeting of the Company will be held at Pan Pacific Singapore,
3.0                                                                                                                                                         Ocean 1-3, Level 2, 7 Raffles Boulevard, Marina Square, Singapore 039595, on Tuesday, 19 April 2011, at 3.00 p.m. to
                                                                                                                                       HigH                 transact the following business:
                                                                                                                                        Low
                                                                                                                                              Prices
                                                        2.600
                                                       2.570
                                                                                                                                       HigH
                                                                                                                                              2010 Prices   As orDinArY business
                                                                                                                                        Low
2.5                                                                2.380                                                                                    Resolution 1        To receive and adopt the Audited Financial Statements and the Reports of the Directors and the
                                                                  2.350
                                               2.340




                                                                                                                                                                                Auditors for the year ended 31 December 2010.

                                                                               2.240
                                                                              2.200
                                                                            2.170



                                                                           2.130
                                                       2.300




                                                                                                                                                            Resolution 2        To declare a first and final tax exempt (one-tier) dividend of 4 cents per ordinary share for the



                                                                                                                                                  2.020
                                       2.020




                                                                                                                                               1.950
                                                                                                                                              1.930
                                                                                                                                              1.910
                                                                                                                                                                                year ended 31 December 2010.
                                                                   2.100



                                                                                     2.100




                                                                                                                                            1.870
2.0                                                                                                                                        1.840
                                                                                   2.040
                                                               2.010




                                                                                                                                         1.780
                                                               1.990




                                                                                                                                      1.690
                                       1.910




                                                                                                                                     1.680
                                                                                                                                                            Resolution 3        To approve Directors’ fees of S$472,500 for 2010 (2009: S$457,500).




                                                                                                                                     1.670
                                                                                                                                     1.890




                                                                                                                                    1.660
                                      1.650




                                                                                                                                   1.630




                                                                                                                                   1.620
                                                                                                                                  1.610




                                                                                                                                  1.610
                                                                                                                                  1.610
                                                                                                                                  1.830




                                                                                                                                  1.600
                                                                                                                                  1.600




                                                                                                                                 1.590
                                    1.590




                                                                                                                                 1.590
                                                                                                                                 1.590
                                                                                                                                 1.810
                                                                                                                                 1.800
                                                                           1.780




                                                                                                                                1.550
                                 1.520




                                                                                                                              1.730




                                                                                                                              1.500
                                1.490




                                                                                                                             1.480



                                                                                                                             1.470
                                                                                                                             1.690
                                                                                                                             1.690




                                                                                                                            1.460




                                                                                                                            1.460
                                                                                                                                                            Resolution 4        To re-appoint Dr Wee Cho Yaw, pursuant to Section 153(6) of the Companies Act, Cap. 50,




                                                                                                                           1.420
                             1.630




                                                                                                                          1.620
                                                                                                                          1.620




                                                                                                                         1.610
                            1.390
                           1.380




                                                                                                                         1.600
                                                                                                                        1.360




                                                                                                                        1.580
1.5




                                                                                                                       1.570




                                                                                                                       1.570
                                                                                                                       1.560
                                                                                                                                                                                as Director of the Company to hold such office until the next Annual General Meeting of the
                         1.330




                                                                                                                      1.320




                                                                                                                      1.540
                         1.310




                         1.530




                                                                                                                      1.530
                                                                                                                     1.290




                                                                                                                     1.510
                                                                                                                    1.500
                       1.260




                                                                                                                   1.480
                      1.240




                     1.450




                                                                                                                  1.450
                     1.440




                                                                                                                  1.440
                                                                                                                                                                                Company.
                    1.210




                                                                                                                 1.190




                                                                                                                 1.410
                                                                                                                1.180
                   1.170




                                                                                                                1.390
                                                                                                                1.390




                                                                                                               1.160
                  1.160




                                                                                                              1.340
                1.320




                                                                                                            1.300




                                                                                                            1.300
               1.280




                                                                                                           1.040
                                                                                                         1.230
                                                                                                                                                            Resolution 5        To re-appoint Mr Alan Choe Fook Cheong, pursuant to Section 153(6) of the Companies Act,
            1.200




                                                                                                        0.970
                                                                                                       0.960
           1.180




                                                                                                       1.180
           1.170
          1.150

         1.130
         1.120




         1.110




                                                                                                    1.100
                                                                                                    1.090

1.0                                                                                                                                                                             Cap. 50, as Director of the Company to hold such office until the next Annual General Meeting
       1.060




                                                                                                  1.030
                                                                                                 1.010
                                                                                                                                                                                of the Company.



                                                                                             0.905
                                                                                             0.900
                                                                                             0.900
                                                                                             0.890
                                                                                                                                                            Resolution 6        To re-appoint Mr Gwee Lian Kheng, who attains the age of 70 years, pursuant to Section 153(6)
0.5                                                                                                                                                                             of the Companies Act, Cap. 50, as Director of the Company to hold such office until the next
                                                                                                                                                                                Annual General Meeting of the Company.

                                                                                                                                                            Resolution 7        To re-elect Mr Low Weng Keong, who retires by rotation pursuant to Article 94 of the Company’s
0.0
                                                                                                                                                                                Articles of Association, as Director of the Company.
       JAN
        FEB
       MAR
       APR
       MAY
       JUN
        JUL
       AUg
        SEP
       oCT
       NoV
       DEC
       JAN
        FEB
       MAR
       APR
       MAY
       JUN
        JUL
       AUg
        SEP
       oCT
       NoV
       DEC
       JAN
        FEB
       MAR
       APR
       MAY
       JUN
        JUL
       AUg
        SEP
       oCT
       NoV
       DEC
       JAN
        FEB
       MAR
       APR
       MAY
       JUN
        JUL
       AUg
        SEP
       oCT
       NoV
       DEC
       JAN
        FEB
       MAR
       APR
       MAY
       JUN
        JUL
       AUg
        SEP
       oCT
       NoV
       DEC
                                                                                                                                                            Resolution 8        To re-elect Mr James Koh Cher Siang, who retires by rotation pursuant to Article 94 of the
                   2006                                           2007                                 2008               2009                  2010                            Company’s Articles of Association, as Director of the Company.

      turnover (million)                                                                                                                                    Resolution 9        To re-appoint Messrs PricewaterhouseCoopers LLP as Auditors of the Company and authorise
15
                                                                                                                                                                                the Directors to fix their remuneration.

                                                                                                                                         Turnover           As speciAl business
                                                                                                                                         2010 Turnover      To consider and, if thought fit, to pass with or without amendments, the following resolutions as Ordinary Resolutions:

12                                                                                                                                                          Resolution 10       “That authority be and is hereby given to the Directors of the Company to:

                                                                                                                                                                                (a)    (i)    issue shares in the capital of the Company (“shares”) whether by way of rights,
                                                                                                                                                                                              bonus or otherwise; and/or
 9                                                                                                                                                                                     (ii)   make or grant offers, agreements or options (collectively, “Instruments”) that might
                                                                                                                                                                                              or would require shares to be issued, including but not limited to the creation
                                                                                                                                                                                              and issue of (as well as adjustments to) warrants, debentures or other instruments
                                                                                                                                                                                              convertible into shares;
 6                                                                                                                                                                                     at any time and upon such terms and conditions and for such purposes and to such
                                                                                                                                                                                       persons as the Directors may in their absolute discretion deem fit; and

                                                                                                                                                                                (b)    (notwithstanding the authority conferred by this Resolution may have ceased to be in
                                                                                                                                                                                       force) issue shares in pursuance of any Instrument made or granted by the Directors
 3
                                                                                                                                                                                       while this Resolution was in force,




 0
      JAN
       FEB
      MAR
      APR
      MAY
      JUN
       JUL
      AUg
       SEP
      oCT
      NoV
      DEC
      JAN
       FEB
      MAR
      APR
      MAY
      JUN
       JUL
      AUg
       SEP
      oCT
      NoV
      DEC
      JAN
       FEB
      MAR
      APR
      MAY
      JUN
       JUL
      AUg
       SEP
      oCT
      NoV
      DEC
      JAN
       FEB
      MAR
      APR
      MAY
      JUN
       JUL
      AUg
       SEP
      oCT
      NoV
      DEC
      JAN
       FEB
      MAR
      APR
      MAY
      JUN
       JUL
      AUg
       SEP
      oCT
      NoV
      DEC




                  2006                                           2007                                  2008              2009                   2010

PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                                                           ANNUAL REPORT 2010
156                                                                                                                                                                                                                                  157



notice oF annual general meeting                                                                                       notice oF annual general meeting

                 provided that:                                                                                                          (4)      the Directors of the Company and each of them be hereby authorised to complete and
                                                                                                                                                  do all such acts and things (including executing all such documents as may be required)
                 (1)      the aggregate number of shares to be issued pursuant to this Resolution (including                                      as they or he may consider expedient or necessary or in the interests of the Company to
                          shares to be issued in pursuance of Instruments made or granted pursuant to this                                        give effect to the Shareholders’ IPT Mandate and/or this Resolution.”
                          Resolution) does not exceed fifty per cent (50%) of the total number of issued shares
                          (excluding treasury shares) in the capital of the Company (as calculated in accordance
                          with paragraph (2) below), of which the aggregate number of shares to be issued other
                          than on a pro rata basis to shareholders of the Company (including shares to be issued in    BY ORDER OF THE BOARD
                          pursuance of Instruments made or granted pursuant to this Resolution) does not exceed
                          twenty per cent (20%) of the total number of issued shares (excluding treasury shares) in
                          the capital of the Company (as calculated in accordance with paragraph (2) below);
                                                                                                                       Foo Thiam Fong Wellington
                 (2)      (subject to such manner of calculation as may be prescribed by the Singapore Exchange        Yeong Sien Seu
                          Securities Trading Limited (“SGX-ST”)) for the purpose of determining the aggregate
                          number of shares that may be issued under paragraph (1) above, the percentage of             Secretaries
                          issued shares shall be based on the total number of issued shares (excluding treasury        Singapore, 28 March 2011
                          shares) in the capital of the Company at the time this Resolution is passed, after
                          adjusting for:

                          (i)    new shares arising from the conversion or exercise of any convertible securities or
                                 share options or vesting of share awards which are outstanding or subsisting at
                                 the time this Resolution is passed; and

                          (ii)   any subsequent consolidation or subdivision of shares;

                 (3)      in exercising the authority conferred by this Resolution, the Company shall comply with
                          the provisions of the Listing Manual of the SGX-ST for the time being in force (unless
                          such compliance has been waived by the SGX-ST) and the Articles of Association for the
                          time being of the Company; and

                 (4)      (unless revoked or varied by the Company in general meeting) the authority conferred
                          by this Resolution shall continue in force until the conclusion of the next Annual General
                          Meeting of the Company or the date by which the next Annual General Meeting of the
                          Company is required by law to be held, whichever is the earlier.”

Resolution 11    “That:

                 (1)      approval be and is hereby given for the purposes of Chapter 9 of the Listing Manual
                          (the “Listing Manual”) of the SGX-ST for the Company and its entities at risk (as defined
                          in Chapter 9 of the Listing Manual) or any of them to enter into any of the transactions
                          falling within the types of interested person transactions set out in the Appendix to the
                          Company’s Letter to Shareholders dated 28 March 2011 (the “Letter”), with any party
                          who is of the classes of interested persons described in the Letter, provided that such
                          interested person transactions are carried out on normal commercial terms and will not
                          be prejudicial to the interests of the Company and its minority Shareholders and are
                          carried out in accordance with the review procedures for interested persons transactions
                          as set out in the Appendix to the Letter (the “Shareholders’ IPT Mandate”);

                 (2)      the Shareholders’ IPT Mandate shall, unless revoked or varied by the Company in general
                          meeting, continue in force until the conclusion of the next Annual General Meeting of the
                          Company or until the date on which the next Annual General Meeting of the Company
                          is required by law to be held, whichever is the earlier;

                 (3)      the Audit Committee of the Company be and is hereby authorised to take such action
                          as it deems proper in respect of the procedures and/or to modify or implement such
                          procedures as may be necessary to take into consideration any amendment to Chapter
                          9 of the Listing Manual which may be prescribed by the SGX-ST from time to time; and




PAN PACIFIC HOTELS GROUP LIMITED                                                                                                                                                                                  ANNUAL REPORT 2010
158                                                                                                                     proXy Form                                             IMPORTANT: FOR CPF INVESTORS ONLY
                                                                                                                                                                               1.   For investors who have used their CPF monies to buy Pan Pacific Hotels Group
                                                                                                                        Annual General Meeting                                      Limited’s shares, this Report is sent to them at the request of the CPF Approved
                                                                                                                                                                                    Nominee and is sent solely FOR INFORMATION ONLY.


notice oF annual general meeting                                                                                        pAn pAcific hotels group limiteD                       2.   This Proxy Form is not valid for use by CPF Investors and shall be ineffective for all
                                                                                                                                                                                    intents and purposes if used or purported to be used by them.
                                                                                                                        (Incorporated in the Republic of Singapore)
                                                                                                                                                                               3.   CPF investors who wish to attend the Meeting as OBSERVERS have to submit
                                                                                                                        (Company Registration No. 196800248D)                       their requests through their respective Agent Banks so that their Agent Banks may
                                                                                                                                                                                    register with the Company’s Registrar (Please see Note. 9 on the reverse).



notes                                                                                                                   I/We,                                                                                                                                   (Name)
A member entitled to attend and vote at the Meeting is entitled to appoint not more than two proxies to attend and      of                                                                                                                                   (Address)
vote in his stead. A proxy need not be a member of the Company.
                                                                                                                        being a member/members of PAN PACIFIC HOTELS GROUP LIMITED (the “Company”), hereby appoint:
The instrument appointing a proxy must be deposited at the Registered Office of the Company at 101 Thomson
Road, #33-00 United Square, Singapore 307591 not less than 48 hours before the time for holding the Meeting.            Name                                                        NRIC/Passport No.                     Proportion of Shareholdings

notes to resolutions                                                                                                                                                                                                      No. of Shares                      %
                                                                                                                        Address
1.    In relation to Resolution 4, Dr Wee Cho Yaw will, upon re-appointment, continue as the Chairman of the
      Board of Directors and the Executive Committee, and as a member of the Remuneration and Nominating
      Committees. He is considered a non-independent director.                                                          and/or (delete as appropriate)
2.    In relation to Resolution 5, Mr Alan Choe Fook Cheong will, upon re-appointment, continue as the Chairman
      of the Nominating Committee and as a member of the Executive, Audit and Remuneration Committees. He               Name                                                        NRIC/Passport No.                     Proportion of Shareholdings
      is considered an independent director.                                                                                                                                                                              No. of Shares                      %
3.    In relation to Resolution 6, Mr Gwee Lian Kheng will, upon re-appointment, continue as a Member of the            Address
      Executive Committee. He is considered a non-independent director.

      Note: Dr Lim Kee Ming who retires at the conclusion of this AGM pursuant to Section 153(6) of the Companies       or failing him/her, the Chairman of the Meeting as my/our proxy/proxies to attend and vote for me/us on my/our
      Act, Cap. 50, and although eligible, has indicated that he is not offering himself for re-appointment. Dr Lim     behalf and, if necessary, to demand a poll, at the 42nd Annual General Meeting of the Company (the “AGM”) to be
      Kee Ming will step down as the Chairman of the Audit and Remuneration Committees, and as a member of              held at Pan Pacific Singapore, Ocean 1-3, Level 2, 7 Raffles Boulevard, Marina Square, Singapore 039595 on Tuesday,
      the Nominating Committee.                                                                                         19 April 2011 at 3.00 p.m. and at any adjournment thereof. I/We direct my/our proxy/proxies to vote for or against the
                                                                                                                        Resolutions to be proposed at the AGM as indicated below. If no specific direction as to voting is given, the proxy/
4.    In relation to Resolution 7, Mr Low Weng Keong will, upon re-election, continue as a Member of the Audit          proxies will vote or abstain from voting at his/their discretion, as he/they will on any other matter arising at the AGM.
      Committee. He is considered an independent director.                                                              The authority herein includes the right to demand or to join in demanding a poll and to vote on a poll.

5.    In relation to Resolution 8, Mr James Koh Cher Siang is considered an independent director.                       No. Resolutions                                      To be used on a show of hands To be used in the event of a poll
                                                                                                                                                                                                            No. of Votes     No. of Votes
6.    Resolution 10 is to empower the Directors from the date of that meeting until the next Annual General              Ordinary Business
                                                                                                                                                                                  For*          Against*       For**           Against**
      Meeting to issue, or agree to issue shares and/or grant instruments that might require shares to be issued,
                                                                                                                        1 Adoption of Financial Statements and
      up to an amount not exceeding fifty per cent (50%) of the total number of issued shares (excluding treasury
      shares) in the capital of the Company (calculated as described) of which the total number of shares to be            Reports of the Directors and the Auditors
      issued other than on a pro rata basis to shareholders of the Company does not exceed twenty per cent (20%)        2 Declaration of First and Final Dividend
      of the total number of issued shares (excluding treasury shares) in the capital of the Company (calculated as     3 Approval of Directors’ Fees
      described).                                                                                                       4 Re-appointment (Dr Wee Cho Yaw)
                                                                                                                        5 Re-appointment (Mr Alan Choe Fook Cheong)
7.    Resolution 11 is to renew the Shareholders’ IPT Mandate to allow the Company and its entities at risk (as
      defined in Chapter 9 of the Listing Manual) or any of them to enter into any of the transactions falling within   6 Re-appointment (Mr Gwee Lian Kheng)
      the types of interested person transactions set out in the Appendix to the Letter.                                7 Re-election (Mr Low Weng Keong)
                                                                                                                        8 Re-election (Mr James Koh Cher Siang)
                                                                                                                        9 Re-appointment of PricewaterhouseCoopers
                                                                                                                           LLP as Auditors
                                                                                                                         Special Business
                                                                                                                        10 Authority for Directors to Issue Shares
                                                                                                                        11 Renewal of Shareholders’ IPT Mandate

                                                                                                                        *       Please indicate your vote “For” or “Against” with a tick within the box provided.
                                                                                                                        **      If you wish to exercise all your votes “For” or “Against”, please tick within the box provided. Otherwise, please
                                                                                                                                indicate the number of votes as appropriate.


                                                                                                                        Dated this                    day of                   2011


                                                                                                                                                                                    Shares in:                                      Total No. of Shares Held
                                                                                                                                                                                    (a) Depository Register
                                                                                                                                                                                    (b) Register of Members

PAN PACIFIC HOTELS GROUP LIMITED                                                                                        Signature(s) or Common Seal of Member(s)

                                                                                                                        IMPORTANT: PLEASE READ NOTES ON THE REVERSE
Notes :
1.    Save for members which are nominee companies, a member of the Company entitled to attend and vote at the AGM is entitled to appoint not more than two proxies
      to attend and vote in his/her stead. A proxy need not be a member of the Company. Where a member appoints two proxies, the appointments shall be invalid unless
      he/she specifies the proportion of his/her shareholdings (expressed as a percentage of the whole) to be represented by each proxy.
2.    This instrument of proxy must be signed by the appointor or his/her duly authorised attorney or, if the appointor is a body corporate, signed by its duly authorised
      officer or attorney or executed under its common seal.
3.    A body corporate which is a member may also appoint by resolution of its directors or other governing body, an authorised representative or representatives in accordance
      with its Articles of Association and Section 179 of the Companies Act, Chapter 50 of Singapore, to attend and vote on behalf of such body corporate.
4.    Please insert the total number of shares held by you. If you have Shares entered against your name in the Depository Register (as defined in Section 130A of the
      Companies Act, Chapter 50 of Singapore), you should insert that number of Shares. If you have Shares registered in your name in the Register of Members, you should


                                                                                                                                                                                   Corporate
      insert that number of Shares. If you have Shares entered against your name in the Depository Register and Shares registered in your name in the Register of Members,
      you should insert the aggregate number of Shares entered against your name in the Depository Register and registered in your name in the Register of Members. If no
      number is inserted, the instrument appointing a proxy or proxies shall be deemed to relate to all the Shares held by you.




                                                                                                                                                                                   InformatIon
5.    Completion and return of this instrument appointing a proxy shall not preclude a member from attending and voting at the AGM. Any appointment of a proxy or proxies
      shall be deemed to be revoked if a member attends the AGM in person, and in such event, the Company reserves the right to refuse to admit any person or persons
      appointed under this instrument of proxy, to the AGM.
6.    This instrument appointing a proxy or proxies (together with the power of attorney (if any) under which it is signed or a certified copy thereof) must be deposited at the
      registered office of the Company at 101 Thomson Road, #33-00 United Square, Singapore 307591, not less than 48 hours before the time fixed for holding the AGM.
7.    Any alteration made in this form must be initialed by the person who signs it.
8.    The Company shall be entitled to reject this instrument of proxy if it is incomplete, improperly completed or illegible or where the true intentions of the appointor are
      not ascertainable from the instructions of the appointor specified in this instrument of proxy. In addition, in the case of a member whose Shares are entered against his/
      her name in the Depository Register, the Company shall be entitled to reject any instrument of proxy lodged if such member, being the appointor, is not shown to have
      Shares entered against his/her name in the Depository Register as at 48 hours before the time appointed for holding the AGM, as certified by The Central Depository
      (Pte) Limited to the Company.                                                                                                                                                BoarD of DIreCtorS                 manaGement                    aUDItorS
9.    Agent Banks acting on the request of the CPF Investors who wish to attend the AGM as Observers are requested to submit in writing, a list with details of the investors’     Chairman                           Group Chief Executive         pricewaterhouseCoopers LLp
      names, NRIC/passport numbers, addresses and number of shares held. The list, signed by an authorised signatory of the Agent Bank, should reach the Company’s
      Registrar, Boardroom Corporate & Advisory Services Pte. Ltd. at 50 Raffles Place, Singapore Land Tower, #32-01, Singapore 048623, at least 48 hours before the time          Dr Wee Cho Yaw                     mr Gwee Lian Kheng            8 Cross Street, #17-00
      fixed for holding the AGM.
                                                                                                                                                                                   Group Chief Executive              President &
                                                                                                                                                                                                                                                    PWC Building
                                                                                                                                                                                   mr Gwee Lian Kheng                 Chief Executive Officer       Singapore 048424
1st fold here
                                                                                                                                                                                                                      mr amedeo patrick
                                                                                                                                                                                   mr alan Choe fook Cheong            Imbardelli                   partner-In-CHarGe:
                                                                                                                                                                                   Dr Lim Kee ming                                                  mr Sim Hwee Cher
                                                                                                                                                                                   mr Wee ee Chao                     Executive Director,           Year of appointment: 2008
                                                                                                                                                                                                                      Asset Management
PROxy FORM                                                                                                                                                                         mr Low Weng Keong
                                                                                                                                                        Please affix                                                  ms Wee Wei Ling               prInCIpaL BanKerS
                                                                                                                                                                                   ms Wee Wei Ling
                                                                                                                                                         postage                   mr James Koh Cher Siang            Company Secretary             United overseas Bank Limited
                                                                                                                                                          stamp                    mr Wee ee Lim                      mr foo thiam fong             far eastern Bank Limited
                                                                                                                                                                                   mr amedeo patrick Imbardelli        Wellington                   public Bank Berhad
                                                                                                                                                                                                                                                    malayan Banking Berhad
                                                                                                                                                                                                                      Chief Financial Officer       australia and new Zealand
                                                                                                                                                                                   eXeCUtIVe CommIttee
                                                                                                                                                                                   Chairman                           mr neo Soon Hup                Banking Group Limited
                                                                    The Company Secretary
                                                                                                                                                                                   Dr Wee Cho Yaw
                                              Pan Pacific Hotels GrouP limited                                                                                                                                        Senior Vice President,
                                                                                                                                                                                                                      Marketing & Sales             reGIStereD offICe
                                                                    101 THOMSON ROAD                                                                                               mr Gwee Lian Kheng                                               101 Thomson Road
                                                                                                                                                                                                                      mr Kevin Croley
                                                                   #33-00 UNITED SQUARE                                                                                            mr alan Choe fook Cheong                                         #33-00 United Square
                                                                      Singapore 307591                                                                                             mr Wee ee Chao                     Senior Vice President,
                                                                                                                                                                                                                                                    Singapore 307591
                                                                                                                                                                                                                      Hotel Operations
                                                                                                                                                                                                                                                    t (65) 6255 0233
                                                                                                                                                                                   aUDIt CommIttee                    mr Dean Schreiber
                                                                                                                                                                                                                                                    f (65) 6252 9822
                                                                                                                                                                                   Chairman
                                                                                                                                                                                                                      Senior Vice President,
                                                                                                                                                                                   Dr Lim Kee ming                    Growth & Development          prInCIpaL pLaCe
                                                                                                                                                                                                                      mr eric Levy                  of BUSIneSS
                                                                                                                                                                                   mr alan Choe fook Cheong
                                                                                                                                                                                   mr Low Weng Keong                  Senior Vice President,
                                                                                                                                                                                                                                                    238A Thomson Road
                                                                                                                                                                                                                      Human Capital & Development   #08-00 Novena Square
2nd fold here                                                                                                                                                                      nomInatInG CommIttee               mrs melody King               Office Tower A
                                                                                                                                                                                   Chairman                                                         Singapore 307684
                                                                                                                                                                                   mr alan Choe fook Cheong           InternaL aUDIt                t (65) 6808 1180
                                                                                                                                                                                                                      Deputy General Manager,       f (65) 6821 8001
                                                                                                                                                                                   Dr Wee Cho Yaw                     Internal Audit                W pphg.com
                                                                                                                                                                                   Dr Lim Kee ming                    mr Yeo Bin Hong
                                                                                                                                                                                                                                                    SHare reGIStrar
                                                                                                                                                                                   remUneratIon                       CompanY SeCretarIeS           Boardroom Corporate &
                                                                                                                                                                                   CommIttee                          mr foo thiam fong               advisory Services pte. Ltd.
                                                                                                                                                                                   Chairman                            Wellington                   50 Raffles Place, #32-01
                                                                                                                                                                                   Dr Lim Kee ming                    mr Yeong Sien Seu             Singapore Land Tower
                                                                                                                                                                                                                                                    Singapore 048623
                                                                                                                                                                                   Dr Wee Cho Yaw                     GeneraL CoUnSeL               t (65) 6536 5355
                                                                                                                                                                                   mr alan Choe fook Cheong           mr Yeong Sien Seu             f (65) 6536 1360




                                                                                                                                                                                   This report is printed on recycled paper.



3rd fold here and seal
    Pan PaCiFiC HOteLs GrOUP LiMited
         Company Registration No. 196800248D

                     reGistered OFFiCe
   101 Thomson Road #33-00 United Square
                        Singapore 307591
       T (65) 6255 0233 F (65) 6252 9822

         PrinCiPaL PLaCe OF BUsiness
238A Thomson Road #08-00 Novena Square
         office Tower A, Singapore 307684
       T (65) 6808 1180 F (65) 6821 8001
                                pphg.com

								
To top