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Hotel Plaza Limited Annual Report 2008 H o te l P la z a L im ite

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Hotel Plaza Limited Annual Report 2008 H o te l P la z a L im ite Powered By Docstoc
					Dedicated
 hotelier

 Hotel Plaza Limited Annual Report 2008
Hotel Plaza’s
dedication & expertise
in managing hotels.
With a property portfolio spanning over 25 hotels, resorts and serviced
suites across Asia, Australia and North America, Hotel Plaza is the listed
hotel subsidiary of Singapore-listed UOL Group Limited, one of Asia’s
established hotel and property companies. We manage over 7,000 rooms
and our expertise makes us a truly dedicated hotelier with the required
knowledge to provide our guests with exceptional customer service.




01   Our Dedication to Deliver Shareholders’ Value
02   Our Two-Year Financial Highlights
03   Our Key Financial Trends
04   Our Performance Excellence
06   Our Strong Brands
08   Our Fortifying Partnership with Pan Pacific
10   Our Fortifying Partnership with Parkroyal
12   Our Chairman’s Statement
14   Our Board of Directors
18   Our Key Management Executives
20   Our Group Structure
22   Our Hotels – Singapore
24   Our Hotels – International
27   Our Hotel Management
28   Our Human Resources
30   Our Spa/Lifestyle-Related Operations
31   Our Corporate Information
32   Our Property Summary
35   Our Room Distribution
36   Our Performance Statistics
38   Our Financial Review
42   Our Milestones
43   Our Awards and Accolades 2008
44   Financial Contents



This report is printed on recycled paper
               Our Dedication
                 to Deliver
             Shareholders’ Value
                                            2004     2008                                 CAGR

   Revenue                               $255m       $315m	                              +	 5.42	%
   EBITDA                                $72m        $104m	                              +	 9.63	%
   RevPAR                                $84.53      $127.28		                           +	10.77	%
   EPS*                                  8.48¢       9.65¢	                              +	 3.28	%
   DPS                                   2.00¢       5.00¢	                              +	25.74	%
   * Before exceptional items, impairment
     charge and fair value adjustments




Hotel Plaza Limited Annual Report 2008             Our Dedication to Deliver Shareholders’ Value     
Our Two-Year Financial Highlights


                                                                                                 2008                2007    % Increase/
                                                                                                 $’000              $’000     (Decrease)

For	the	year
Revenue                                                                                      315,225           290,59                   9
Profit before impairment charge and fair value adjustments                                     78,091           59,928                  30
Profit before income tax                                                                       31,251	         09,95                 (7)
Net profit                                                                                     15,422           88,008                 (82)
Net cash from operating activities                                                             92,260           85,342                   8
Net cash used in investing activities                                                       (251,630)         (26,677)                 99
Net cash (used in)/from financing activities                                                  (21,677)         96,448               ()
Dividends paid                                                                                 30,000          3,200                 (77)
At	31	December
Share capital                                                                                557,333           557,333                    –
Reserves                                                                                       (9,079)          3,768               (29)
Retained earnings                                                                            195,554           22,736                   (8)
Interests of the equity holders of the Company                                               743,808           80,837                   (7)
Minority interests                                                                            23,463            27,949                 (6)
Net assets                                                                                   767,271           829,786                   (8)
Total assets                                                                               1,005,736         ,048,25                   (4)
Per	ordinary	share
Basic earnings (cents)
– before impairment charge and fair value adjustments                                            9.65               .3             (3)
– after impairment charge and fair value adjustments                                             2.14               2.22             (90)
Gross dividend paid (cents)                                                                      5.00               40.00             (88)
Dividend cover (times)                                                                           0.43                0.65             (34)
Net tangible asset backing ($)
– before accounting for surplus on revaluation of hotel properties                               1.19                .3               (9)
– after accounting for surplus on revaluation of hotel properties                                1.98                2.7               (9)



                                                      st Quarter    2nd Quarter        3rd Quarter        4th Quarter          Total
                                                      $’000    %     $’000    %         $’000    %         $’000    %        $’000    %

Revenue
2008                                            76,684	 24          79,935      25    77,724	      25    80,882       26 315,225	 100	
2007                                            66,23  23          69,207      24    76,260       26    78,479       27 290,59 00
Profit	before	impairment	charge	and	fair	value	adjustments
2008                                            19,712  25          21,242      27    17,785       23    19,352       25    78,091   100	
2007                                            2,624  2          4,552      24    8,789       32    3,963       23    59,928   00
Profit	before	income	tax
2008                                            19,712  63          21,242	     68    17,785       57    (27,488)    (88) 31,251     100	
2007                                            2,624  2          20,080      8    8,789       7     57,702      53 09,95     00
Net	profit
2008                                            15,354 100          16,917    110     14,071       91    (30,920) (201)     15,422   100	
2007                                            ,448  3          6,08     8     4,838       7     45,64    52      88,008   00
Profit	attributable	to	equity	holders	of	the	Company
2008                                            14,533 113          16,277    127     13,526     106     (31,518) (246)     12,818   100	
2007                                            0,549  2          5,545     8     4,069      7      44,84    53      84,977   00
Basic	earnings	per	ordinary	share	(in	cents)
– before impairment charge and fair value adjustments
2008                                              2.42  25            2.71      28       2.25      23       2.27      24      9.65   100	
2007                                              2.64  24            2.75      25       3.52      3       2.22      20     .3   00
– after impairment charge and fair value adjustments
2008                                              2.42 113            2.71    127        2.25    105      (5.24) (245)        2.14   100	
2007                                              2.64  2            3.89     8        3.52     7      .7    53        2.22   00



2            Hotel Plaza Limited Annual Report 2008                 Our Two-Year Financial Highlights
Our Key Financial
Trends




                                                       $315m
                                          $290m
                              $276m $287m                                            (%)
                $255m                                                                30

                                                                                     26

                                                                                     22

                                                                                     18

                                                                                     14

                                                                                     10

                                                                                      6

                                                                                     2

                                                                                    -2
                                                                                            04        05       06       07     08


               Group Revenue	                                                      Net Cash Flow
                   	    Hotel	Ownership	                                           Returns on Assets
                   	    Property	Investments                                         	 Singapore	Hotels	Average	
                  	    Hotel	Management	Service                                      	 Australia	Hotels	Average
                                                s	 	
                  	    Property	Development	                                         	 Vietnam	Hotels	Average	
                  	    Trading	Operations	                                          	 Myanmar	Hotel	Average
                  	    Investments                                                  	 China	Hotel	Average	
                                                                                    	 Malaysia	Hotels	Average
                                                                                    	 Hotel	Plaza	Group	Average

              (S$m)
                                                                   (%)                                       $934m
              800                                                                                                     $881m
                                                                   25
                                                                                 $760m

             650                                               20                          $742m


                                                               15
             500                                                                                    $645m

                                                               10
             350

                                                               5

            200
                                                               0
                         04      05      06      07      08

            Return on
            Shareholders’ Equity
             	 Average	shareholders'	fun                                        Sources of Finance
                                         d	 	             	
             	 Return	on	shareholders'	e                                          	 Minority	Interests
                                         quity
                                                                                  	 Borrowings
                                                                                  	 Interests	of	the	Equity	Hol
                                                                                                                ders	of	the	Company




Hotel Plaza Limited Annual Report 2008                                   Our Key Financial Trends                                     3
    Our Performance
    Excellence     reasing room reven
                                      ue and RevPAR
    Delivering inc
                                                                                    		
                                                         ing	hotels	–	and	we	do
                             e	 focused	solely	on	runn
     At	Hotel	Plaza,	we	ar
     it	very	well.
                                                                                    the		
                                                          ur	guests,	and	create	
                               de rstand	the	needs	of	o                 	last	five	years,		
     That’s	because	we	un                      in	and	again.	Over	the
                                o	stay	in,	aga                     ance	indicator	for		
      hotels	that	they	want	t             ts	in	every	key	per form
                              provemen                        f	rooms	and	food		
      we	have	delivered	im             nues,	profits,	sales	o
                               	–	reve
      hotels	in	our	por tfolio
      and	beverage.	
                                                                   	a	record	high	of		
       	
                              	to	boost	o  ur	average	RevPAR	to
       In	fact,	we	managed
       $127.28	for	F Y2008.
                                                                                 		
                                                        on	doing	all	the	right
                                will	continue	to	focus	
        To	keep	growing,	we	                         ye	on	ef ficiency	and	
                                                                              	
        things	–	better	–	w hile	keeping	a	sharp	e
        cost	effectiveness.
                                                         ue	is	our	priorit y.
                                 cing	shareholders’	val
         At	Hotel	Plaza,	enhan
                                             $297m




                                                                                     $63m
                                     $277m
                             $274m
                     $255m




                                                                              $53m
             $232m




                                                                       $41m
                                                                $37m
                                                         $29m




                                                                            g Profit*
                              e                        Total Hotel Operatin
           Total Hotel Revenu




4   Hotel Plaza Limited Annual Report 2008           Our Performance Excellence
                                                                                       $186m
                                                                     $170m
                                                   $163m
                                  $145m
                 $127m




                                 e
               Total Room Revenu
                                                           $94m




                                                                                               $91m
                                          $92m




                                                                             $89m
                         $87m




                   Total Food &
                   Beverage Revenue
                                                                                                      $127.28
                                                                                    $121.54
                                                                  $103.53
                                                 $94.95
                                $84.53




                           Average RevPAR




Hotel Plaza Limited Annual Report 2008                                                                          Our Performance Excellence   5
Our
                                                         With	the	addition	of	the	Pan	Pacific	
                                                         brand	to	Hotel	Plaza’s	portfolio,		
                                                         we	have	extended	our	reach	to	the	


Strong
                                                         world	and	are	set	to	secure	more	
                                                         management	contracts	with	these		
                                                         two	award-winning	brands.


Brands                                                   Pan	Pacific,	the	internationally	
                                                         renowned	brand	with	over	30	years		
                                                         of	track	record,	is	an	upper	upscale		
Extending our footprint                                  hotel	chain	with	operations	in	prime	
to the world                                             distinguished	cities	across	Asia	Pacific	
                                                         and	North	America.	The	brand	is	
                                                         synonymous	with	personalised	care	
                                                         and	caters	to	high-yield	corporate		
                                                         and	leisure	travellers.	

                                                         Pan	Pacific	now	operates	12	hotels,	
                                                         resorts	and	serviced	suites	located	
                                                         throughout	Asia,	America	and	Canada.	




                     Pan Pacific won
                    21 Awards in 2008.
                   Condé	Nast	Traveler	(USA),	Wo
                                                  rld	Travel	Awards	and		
              the	highly	prestigious	American	A
                                                utomobile	Association	(AA A)	
                     Diamond	Award	are	some	of	the	n
                                                        otable	names		
                             honouring	the	Pan	Pacific	br and
                                                              .



                                                         Our newly introduced central reservations and
                                                         distribution system – PANTHER – provides users
Our new central reservations and                         with instantaneous access to room inventory and
distribution system – PANTHER                            reservation rates. More significantly, PANTHER
It is vital for the Group to have an efficient central   is our proprietary system and allows the Group to
reservations and distribution system that reaches        reduce reservation delivery costs and helps us
out swiftly to over 700,000 travel agents worldwide.     to achieve higher topline revenues.



6           Hotel Plaza Limited Annual Report 2008       Our Strong Brands
Parkroyal	is	an	upscale	iconic	brand	in	
the	Asia	Pacific	region	with	a	46-year	
track	record.	The	brand	provides	high	
quality	accommodation	and	has	carved	
a	niche	for	delivering	the	memorable	
Parkroyal	experience	catered	to	the	
lifestyle	needs	of	both	business	and	
leisure	travellers.		

With	its	roots	tracing	back	to	1962,		
we	acquired	the	brand	in	2002	from	
Australia	and	since	then,	we	have	
progressively	introduced	more	
Parkroyal	hotels	in	key	Asian	business	
precincts.	Today,	there	are	seven	
Parkroyal	hotels,	resorts	and	serviced	
suites	located	in	Singapore,	Malaysia,	
Myanmar	and	Vietnam.




                                           Parkroya
                                         5 Award l won
                                                s in 20 0 8
                                           Singapore        .	
                                         portal	Wo 	Hotel	Associatio
                                                  tif.com	h            n	and	on
                                                            av                   lin
                                                 with	acco e	bestowed	Park e	travel		
                                                           lades	and            royal	hote
                                                                     	recognit             ls		
                                                                               ion.




Our comprehensive global sales network                         Global Sales Office in Sydney to promote the
In line with our efforts to integrate the brand                Pan Pacific and Parkroyal brands to Australasia
management framework of both Pan Pacific and                   travellers and to identify new business opportunities.
Parkroyal hotels under Hotel Plaza, we have embarked           This important milestone is core to Hotel Plaza as
on a strategic plan to develop and widen our sales             the presence of Global Sales Offices in key locations
network. In addition to the current five Global Sales          allows us to expand on the brands’ customer
Offices located in Hong Kong, London, San Francisco,           relationships across key source markets.
Singapore and Tokyo, we have also opened the sixth


Hotel Plaza Limited Annual Report 2008                         Our Strong Brands                                        7
Our
Fortifying
Partnership
with Pan Pacific


As	a	dedicated	hotelier,	Hotel	Plaza	has	
a	proven	record	of	delivering	the	best	
value	out	of	the	hotels	we	manage.	

The	acquisition	of	Pan	Pacific	is	a		
win-win	situation	to	create	and	deliver	
increased	value	to	our	stakeholders.	
We	have	the	expertise	to	add	value	to	
Pan	Pacific	by	steering	it	to	achieve	
higher	operational	efficiencies,	even		
as	Pan	Pacific	extends	its	coverage		
to	the	world	with	new	development		
of	hotels	and	serviced	suites	in		
the	pipeline.

With	the	addition	of	the	Pan	Pacific	
brand	to	Hotel	Plaza,	we	are		
now	able	to	capture	more	stay		
opportunities	and	meet	the		
diverse	needs	of	travellers	today.

Despite	a	year	filled	with		
uncertain	economic	activities		
that	resulted	in	fluctuating		
tourism	arrivals,	the	brand		
                                                                         12
                                                                  Total Numbe
still	managed	to	maintain	a		                                     of Propertie r
                                                                              s
steady	room	revenue	figure	
of	$203	million,	buoyed	largely		
by	a	consistent	average		
                                                                 3,567
                                                          Total Numbe
occupancy	rate	of	70%.	                                               r of Rooms



                                                            Total Numbe
                                                                           9
                                                           Geographic    r of
                                                                      al Cities




8       Hotel Plaza Limited Annual Report 2008   Our Fortifying Partnership with Pan Pacific
Pan	Pacific	is	a	member	of	Global		
Hotel	Alliance	(GHA),	the	world’s	
largest	alliance	of	independent		
hotel	groups.	This	alliance	allows		
the	Pan	Pacific	name	to	reach	out		
to	an	even	wider	audience	globally		
and	enjoy	increased	savings	from	
economies	of	scale.

Currently,	Pan	Pacific	operates	
12	hotels,	resorts	and	serviced		
suites	in	eight	countries	with		
3,567	rooms	serving	guests		
in	Asia,	America	and	Canada.




                  Pan Pa
                        cific
                                                                                           $308m




                                                                                                                                            $203m




                                            04
                                                      05
                                                              06
                                                                            07
                                            Total R                                   08
                                                    evenu               e
                                                                                                        04
                                                                                                             05
                                                                                                                     06
                                                                                                                              07
                                                                                                        Total R            08
                                                                                                                oom Re
                                                                                                                       venue
                                                       $222




                                                                                                               70%




                                                                                                                                                              $155




             04
                     05
                              06
                                       07
           Averag                                08
                          e Room                                   04
                                                                                 05
                                 Rates                                                     06
                                                                                                   07
                                                              Averag            08
        * All of                                                     e Occu                                             04
                 the a
         hotels o bove figures are                            Rates         pancy                                               05
                                                                                                                                       06
                                                                                                                                                    07
                   wn                     d
         attributa ed by third part erived from                                                                        Averag                            08
                   ble to H
                            otel Plaz
                                        ies and
                                                not                                                                                  e RevP
                                      a                                                                                                     AR


Hotel Plaza Limited Annual Report 2008                                                 Our Fortifying Partnership with Pan Pacific                             9
Our
Fortifying
Partnership
with Parkroyal


Having	achieved	an	enviable	track	
record	with	Parkroyal,	we	will	continue	
to	strengthen	its	image	as	a	regional	
iconic	brand	in	Asia	Pacific.

Parkroyal	hotels	managed	to	achieve	
excellent	financial	performance	amid		
a	backdrop	of	declining	tourism	arrivals	
brought	about	by	turbulent	economic	
activities	in	2008.	We	increased	our	
total	revenue	by	15.9%	year-on-year		
to	reach	$133	million	and	also	achieved		
an	increment	of	26.3%	year-on-year	for	
our	room	revenue	to	reach	$89	million.

Currently,	there	are	seven	Parkroyal		
hotels,	resorts	and	serviced	suites	in	
four	countries	with	2,162	rooms	serving	
guests	in	Asia.




                                                     7
                                          Total Number of Properties


                                     2,162                               5
                                      Total Number         Total Number of
                                        of Rooms          Geographical Cities




0      Hotel Plaza Limited Annual Report 2008       Our Fortifying Partnership with Parkroyal
          Parkroyal
                                                               $133m




                                                                                                                    $89m



                                   04      05   06   07   08
                                                                          04          05
                                  Total Reven                                              06       07
                                              ue                                                               08

                                                                          Total Room
                                                                                     Revenue
                                         $147




                                                                                                                                 $106
                                                                                68%




   04      05      06       07      08
                                                04
   Average Ro                                        05   06       07
              om Rates                                                     08
                                                                                           04      05
                                                Average Oc                                                     06      07
                                                           cupancy                                                          08

                                                Rates                                      Average Re
                                                                                                      vPAR




Hotel Plaza Limited Annual Report 2008                             Our Fortifying Partnership with Parkroyal                            
Our Chairman’s Statement


                                                 Profit Before Exceptional Items,
                                                 Impairment Charge, Fair Value




                                                                                                           $78m
                                                 Adjustments and Tax.




                                                                                                    $60m
                                                                                      $44m


                                                                                             $39m
                                                                               $34m
“On	31	October	2008,	the	Company	
acquired	the	Pan	Pacific	operations	
from	its	holding	company,	UOL	Group	


                                                                       $78.1m
Limited,	for	$21.3	million.	With	the	
acquisition,	the	Group	now	has	two	
brands	in	its	portfolio,	the	Pan	Pacific	
brand	for	5-star	hotels	and	Parkroyal	
brand	for	hotels	in	the	4-star	category.”
                                                                        +30%
                                                 2008 Review
                                                 Singapore Operations
                                                 The Singapore economy grew by a marginal 1.1%
                                                 in 2008, in sharp contrast to the impressive 7.8%
                                                 growth in 2007. Growth was affected by the global
                                                 financial turmoil and the sharp contraction in the
                                                 global economy especially in the second half of 2008.
                                                 The tourism sector in Singapore was also affected and
                                                 registered a 2% decline in international visitors from
                                                 the record 10.3 million visitors in 2007 to 10.1 million
                                                 visitors in 2008. The average occupancy for the hotel
                                                 industry decreased by 6 percentage points to 81%,
                                                 while average room rate increased by 21.9% to $246
                                                 in 2008 (2007: $202).

                                                 Overseas Operations
                                                 The Group’s hotels in Australia and Vietnam benefited
                                                 from high occupancy and improvements in average
                                                 room rates during the first half of the year but like all
                                                 others in the industry, were affected by the dramatic
                                                 slowdown in the global economy in the second half
                                                 of 2008. The performance of the Group’s hotel in
                                                 Suzhou, People’s Republic of China suffered further




2      Hotel Plaza Limited Annual Report 2008   Our Chairman’s Statement
decline in both occupancy and average room rates          Proposed Name Change
due to competition from new hotels. In Malaysia,          To position the Company to pursue the expansion
revenues were lower for the Parkroyal Penang while        through hotel management services, the Company
higher costs were incurred with the addition of new       proposes to change its name to “PAN PACIFIC
rooms at the Parkroyal Kuala Lumpur. Although             HOTELS GROUP LIMITED”. The circular for the
performance at the Parkroyal Yangon improved,             proposed name change has been sent to shareholders
the operating environment remained difficult.             for approval at the extraordinary general meeting to be
                                                          held on 28 April 2009.
2008 Performance and Dividend
For the year under review, the Group’s profit             Refurbishment of Hotels
before impairment charge, fair value adjustments          Construction work for the addition of 99 guest rooms
and tax increased by 30% to $78.1 million from            to the Sheraton Hotel in Suzhou was completed in
$59.9 million achieved in 2007 on the back of             December 2008 and the Sheraton Suzhou Hotel
the strong performance of the tourism sector in           now has a total of 484 rooms.
Singapore and the region.
                                                          Proposed Hotel and SOHO
With the weakening economic conditions,                   Development at Upper Pickering
the Group had to make an impairment provision             Planning Permission from the Urban and
on a hotel development project and suffered a fair        Redevelopment Authority for the proposed
value loss on its investment properties amounting to      development which will comprise a city hotel with
$37.0 million and $9.8 million respectively. Arising      approximately 365 rooms and an office block which
from the foregoing, the Group’s net profit attributable   may include 44 SOHO (small-office-home-office) units
to shareholders decreased by 85% from $85.0 million       has been obtained. Piling works have commenced
in 2007 to $12.8 million in 2008.                         in the second half of 2008 and the development is
                                                          expected to be completed in the first quarter of 2011.
In view of the significant decrease in net attributable
profit, your Board is recommending a first and final      Outlook for 2009
dividend of 4 cents per share (2007: first and final      The economic downturn and the decline in both
dividend of 5 cents) amounting to $24.0 million           consumer and business confidence are expected
(2007: $30.0 million) for the year ended                  to have an adverse effect on the tourism sector in
31 December 2008.                                         Singapore and the Asia Pacific region. Business
                                                          travel is expected to be curtailed or of shorter duration
Corporate Developments                                    while leisure travellers would be more cost conscious,
Appointment of President & CEO                            preferring short-haul and value-for-money destinations.
The Board of Directors appointed Mr Amedeo Patrick        In these challenging times, management will continue
Imbardelli as President & Chief Executive Officer         to focus on better cost efficiency through streamlining
(“CEO") with effect from 21 July 2008. Mr Imbardelli,     operations, and improving service quality.
who has more than 25 years of experience in the hotel
industry, will oversee the management and expansion       Acknowledgement
of the Group’s hotel business. Mr Gwee Lian Kheng,        On behalf of the Board, I wish to express my
who relinquished his current position as President &      appreciation and thanks to the management and
CEO was re-designated as Group Chief Executive.           staff for their hard work and sacrifice. I would like to
                                                          thank my colleagues on the Board for their invaluable
Acquisition of Pan Pacific Hotels and Resorts             counsel and guidance during the year under review.
On 31 October 2008, the Company acquired the
Pan Pacific operations from its holding company,
UOL Group Limited, for $21.3 million. With the            Wee Cho Yaw
acquisition, the Group now has two brands in its          Chairman
portfolio, the Pan Pacific brand for 5-star hotels and
Parkroyal brand for hotels in the 4-star category.        February 2009

In November 2008, the Group completed the
integration of both brands and is now positioned
to offer multiple hotel and extended stay brands.
The Group will embark on expansion by securing
management contracts for third-party owned hotels
in locations which it considers to be of long-term
strategic interest.




Hotel Plaza Limited Annual Report 2008                    Our Chairman’s Statement                                   3
Our Board of Directors


                                       Wee Cho Yaw
                                       Chairman

                                       Dr Wee is the Chairman of the Company (“Hotel Plaza”) and its holding
                                       company, UOL Group Limited (“UOL”). He was appointed to the Board
                                       on 25 May 1973 and was last re-appointed as Director on 23 April 2008.
                                       Dr Wee, who is a non-executive and non-independent Director of
                                       Hotel Plaza, is also the Chairman of the Executive Committee and
                                       Member of the Nominating and Remuneration Committees.

                                       Dr Wee is a career banker with more than 40 years of experience. He is
                                       the Chairman of United Overseas Bank Limited, Far Eastern Bank Limited,
                                       United Overseas Insurance Limited, United International Securities Ltd,
                                       Haw Par Corporation Limited, United Industrial Corporation Limited,
                                       Singapore Land Limited and its subsidiary, Marina Centre Holdings
                                       Private Limited. He was previously the Chairman of Overseas Union
                                       Enterprise Limited.

                                       Dr Wee is the President of the Singapore Federation of Chinese Clan
                                       Associations. He is also the Honorary President of Singapore Chinese
                                       Chamber of Commerce & Industry and a Pro-Chancellor of Nanyang
                                       Technological University.

                                       Dr Wee received Chinese high school education. In 2008, he was conferred
                                       an honorary Doctor of Letters by the National University of Singapore for his
                                       accomplishments in banking, education and community leadership.

                                       Dr Wee received the Credit Suisse-Ernst & Young Lifetime Achievement Award
                                       in 2006 and was named Businessman of the Year in 1990 and 2001.


                                       Gwee Lian Kheng
                                       Group Chief Executive

                                       Mr Gwee is the Group Chief Executive of Hotel Plaza and UOL and has
                                       been with the UOL Group since 1973. He was appointed to the Board on
                                       20 January 1987 and was last re-elected on 25 April 2007. Mr Gwee,
                                       who is an executive and non-independent Director, is also a member of
                                       the Executive Committee.

                                       Mr Gwee is a Director of various subsidiaries in the Hotel Plaza Group and
                                       UOL Group. He is also a Director of United Industrial Corporation Limited and
                                       Singapore Land Limited. He was previously a Director of Overseas Union
                                       Enterprise Limited.

                                       Mr Gwee holds a Bachelor of Accountancy (Honours) degree from
                                       the University of Singapore, and is a Fellow Member of the Chartered
                                       Institute of Management Accountants, Association of Chartered Certified
                                       Accountants in the United Kingdom, as well as a member of the
                                       Institute of Certified Public Accountants of Singapore.

                                       Mr Gwee was named Asia Pacific Hotelier of the Year in 2003.




4   Hotel Plaza Limited Annual Report 2008                Our Board of Directors
                                         Alan Choe Fook Cheong

                                         Mr Alan Choe was appointed to the Board on 2 May 1990 and was last
                                         re-appointed on 23 April 2008. An independent and non-executive Director,
                                         he chairs the Nominating Committee and is a Member of the Executive,
                                         Audit and Remuneration Committees. He is also a Director of UOL.

                                         An architect and town planner by profession, Mr Choe was the first General
                                         Manager of the Urban Redevelopment Authority and a Senior Partner of one
                                         of the largest architectural practices in Singapore. He was the Chairman of
                                         Sentosa Development Corporation, Sentosa Cove Pte Ltd, Pasir Ris Resort
                                         Pte Ltd, a Trustee of NTUC Income and a Member of the Singapore Tourism
                                         Board. He was previously a Director of Keppel Land Limited and Frasers
                                         Centrepoint Limited.

                                         Mr Choe holds a Bachelor of Architecture degree, a Diploma in Town &
                                         Regional Planning from University of Melbourne, and a Fellowship Diploma
                                         from the Royal Melbourne Institute of Technology. He is a Fellow Member
                                         of the Singapore Institute of Architects, Singapore Institute of Planners and
                                         Royal Australian Institute of Architects. He is also a member of the Royal
                                         Institute of British Architects, Royal Town Planning Institute, Royal Australian
                                         Planning Institute and American Planning Association.

                                         Mr Choe was awarded the Public Administration Medal (Gold) in 1967,
                                         the Meritorious Service Medal in 1990, and the Distinguished Service Order
                                         in 2001.


                                         Lim Kee Ming

                                         Mr Lim was appointed to the Board on 1 June 1995 and was last re-appointed
                                         on 23 April 2008. Mr Lim, who is an independent and non-executive Director,
                                         is also the Chairman of the Audit and Remuneration Committees and Member
                                         of the Nominating Committee. He is also a Director of UOL.

                                         Mr Lim is the Chairman of Lim Teck Lee Group of companies and Ngee Ann
                                         Development Pte Ltd. He is also a Director of Haw Par Corporation Limited.
                                         He is presently the Vice President of Ngee Ann Kongsi and an Honorary
                                         President of Singapore Chinese Chamber of Commerce & Industry and
                                         Teochew Poit Ip Huay Kuan and Advisor of Network China. He was previously
                                         the Chairman of the Preservation of Monuments Board.

                                         Mr Lim holds a Master of Science (International Trade & Finance)
                                         degree from Columbia University, New York, and a Bachelor of Science
                                         (Business Administration) degree from New York University, USA.




Hotel Plaza Limited Annual Report 2008                        Our Board of Directors                                        5
Our Board of Directors


                                       Wee Ee Chao

                                       Mr Wee Ee Chao was appointed to the Board on 9 May 2006 and was
                                       last re-elected on 25 April 2007. Mr Wee, who is a non-executive and
                                       non-independent Director, is also a member of the Executive Committee.
                                       He is also a Director of UOL.

                                       Mr Wee has led the management of UOB-Kay Hian Holdings Limited for
                                       more than 25 years. He is currently the Chairman and Managing Director of
                                       UOB-Kay Hian Holdings Limited and a Director of most of the UOB-Kay Hian
                                       Group of companies. Mr Wee also manages Kheng Leong Company (Private)
                                       Limited which is involved in regional real estate development and investments
                                       and is a non-executive Director of Haw Par Corporation Limited. He had
                                       previously served as Chairman of the Singapore Tourism Board between
                                       2002 to 2004.

                                       Mr Wee holds a Bachelor of Business Administration degree from
                                       The American University, Washington DC, USA.


                                       Low Weng Keong

                                       Mr Low was appointed to the Board on 23 November 2005 and was
                                       last re-elected on 23 April 2008. Mr Low, who is an independent and
                                       non-executive Director, is also a member of the Audit Committee.
                                       He is also a Director of UOL.

                                       Mr Low retired as a senior partner of Ernst & Young in June 2005 after
                                       19 years of practice with the firm. His appointments during his career with the
                                       firm included Head of Tax Practice, Member of the Management Committee
                                       and culminating in being the Country Managing Partner and head of the
                                       Singapore firm. Prior to joining Ernst & Young, he was the Far East Tax
                                       Manager in a US Fortune 500 oil and gas service company and had practised
                                       with a number of public accounting practices in London. He is also a Director
                                       and Deputy President of CPA Australia Limited and a Director of Riverstone
                                       Holdings Limited and Unionmet (Singapore) Limited.

                                       Mr Low is a Fellow of CPA Australia, Institute of Chartered Accountants in
                                       England & Wales, Institute of Certified Public Accountants of Singapore and
                                       an Associate Member of Chartered Institute of Taxation (UK).


                                       Wee Wei Ling

                                       Ms Wee was appointed to the Board on 24 March 1994 and was last
                                       re-elected on 19 April 2006. An executive and non-independent Director of
                                       Hotel Plaza, she also sits on the boards of some of the Group’s subsidiaries.

                                       As Executive Director of Asset Management, Ms Wee oversees the asset
                                       management of Hotel Plaza’s hotel properties. She is also responsible for the
                                       management of St Gregory Spa Pte Ltd and Dou Hua Restaurants Pte Ltd.
                                       She has been with the Hotel Plaza Group for over 20 years.

                                       Ms Wee holds a Bachelor of Arts degree from Nanyang University, Singapore.


6   Hotel Plaza Limited Annual Report 2008                Our Board of Directors
                                         James Koh Cher Siang

                                         Mr James Koh was appointed to the Board on 23 November 2005 and
                                         was last re-elected on 23 April 2008. Mr Koh is an independent and
                                         non-executive Director and is also a Director of UOL.

                                         Mr Koh joined the Housing & Development Board (“HDB”) in July 2005 after
                                         retiring from 35 years of distinguished service in the civil service. Currently,
                                         Mr Koh is the Chairman of HDB and its Audit Committee. His prior
                                         appointments included Permanent Secretary of the Ministry of National
                                         Development (1979), Ministry of Community Development (1987) and
                                         Ministry of Education (1994) as well as Commissioner of Inland Revenue
                                         and Chief Executive Officer of the Inland Revenue Authority of Singapore.

                                         Mr Koh is the Chairman of CapitaMall Trust Management Limited and
                                         Singapore Deposit Insurance Corporation Limited and a Director of
                                         CapitaLand Limited, Singapore Airlines Limited, Singapore Cooperation
                                         Enterprise and CapitaLand Hope Foundation. He is also an Adjunct Professor
                                         with the Lee Kuan Yew School of Public Policy.

                                         Mr Koh holds a Bachelor of Arts (Honours) degree in Philosophy,
                                         Political Science and Economics, Master of Arts degree from
                                         University of Oxford, UK, and holds a Master in Public Administration
                                         degree from Harvard University, USA.

                                         Mr Koh was awarded the Public Administration Medal (Gold) in 1983 and
                                         the Meritorious Service Medal in 2002.


                                         Wee Ee Lim

                                         Mr Wee Ee Lim was appointed to the Board on 9 May 2006 and was last
                                         re-elected on 25 April 2007. Mr Wee is a non-executive and non-independent
                                         Director. He is also a Director of UOL.

                                         Mr Wee joined Haw Par Corporation Limited (“Haw Par”) in 1986 and is
                                         currently the President and Chief Executive Officer of Haw Par. He is also
                                         a Director of Singapore Land Limited, United Industrial Corporation Limited,
                                         Hua Han Bio-Pharmaceutical Holdings Limited (a company listed on the
                                         Hong Kong Stock Exchange). Mr Wee was previously a Director of
                                         Transit-Mixed Concrete Limited and a Board Member of Sentosa
                                         Development Corporation.

                                         Mr Wee holds a Bachelor of Arts (Economics) degree from
                                         Clark University, USA.




Hotel Plaza Limited Annual Report 2008                        Our Board of Directors                                        7
Our Key Management Executives




Mr Gwee Lian Kheng                            Mr Amedeo Patrick Imbardelli               Mr Foo Thiam Fong Wellington
Information concerning Mr Gwee is             Mr Imbardelli was appointed                Mr Foo joined the UOL Group in
found in the “Board of Directors”             President & Chief Executive                1977 after graduating from the
section of this report.                       Officer of Hotel Plaza in July 2008,       University of Singapore with a
                                              bringing with him over 25 years of         Bachelor of Accountancy (Honours)
                                              experience in the hotel industry           degree. He is the Company
                                              including managing global multi-           Secretary of both the UOL Group
                                              brand organisations. Mr Imbardelli         and Hotel Plaza and a director of
                                              leads the strategic management             several of their subsidiaries. He is
                                              and expansion of Hotel Plaza’s             also the Chief Financial Officer of
                                              hotels and businesses, including           UOL Group Limited.
                                              both the Pan Pacific and Parkroyal
                                              brands, across the Asia Pacific            Mr Foo is a Fellow of the Institute
                                              region. Prior to joining Hotel Plaza,      of Certified Public Accountants of
                                              he held senior management                  Singapore, a Fellow of CPA
                                              positions at the InterContinental          Australia and an Associate of the
                                              Hotels Group, Southern Pacific             Institute of Chartered Secretaries
Ms Wee Wei Ling                               Hotel Corporation and                      and Administrators and the
Information concerning Ms Wee is              Hilton International.                      Chartered Institute of
found in the “Board of Directors”                                                        Management Accountants.
section of this report.                       Mr Imbardelli is a member
                                              of the Young Presidents’
                                              Organisation and its Singapore
                                              Executive Committee.




8         Hotel Plaza Limited Annual Report 2008                 Our Key Management Executives
Mr Neo Soon Hup                          Mr Kevin Croley                            Mr Scott Swank
Mr Neo is the Chief Financial            Mr Croley joined Pan Pacific               Mr Swank joined Pan Pacific
Officer and a director of several        Hotels and Resorts in 2005 and is          Hotels and Resorts in 2007 and is
Hotel Plaza subsidiaries. He             currently the Senior Vice President,       currently the Senior Vice President,
oversees the financial management        Marketing & Sales of Hotel Plaza.          Operations of Hotel Plaza. He is
of the Hotel Plaza Group and             He is responsible for developing           responsible for driving operational
focuses on improving efficiency          brand strategies and platforms of          excellence for all properties under
to drive business performances.          distribution, e-commerce and               the Pan Pacific and Parkroyal
Mr Neo was a Senior Audit Manager        revenue management for both the            brands. He has spent over
with PricewaterhouseCoopers prior        Pan Pacific and Parkroyal brands.          26 years in the hospitality industry,
to joining the UOL Group in 2003         He has over 27 years of experience         serving with the Mandarin Oriental
and has 13 years of experience           in sales and marketing, of which           Hotel Group and InterContinental
in auditing.                             20 years were spent in the                 Hotels Group, among others.
                                         Asia Pacific region.                       He was the General Manager
He is a non-practising member                                                       of Pan Pacific Singapore and
of the Institute of Certified            After starting his career with             Pan Pacific Sonargaon Dhaka.
Public Accountants of Singapore          First Hospitality Corporation of
and a member of the Singapore            America, Mr Croley worked with             Mr Swank holds a Bachelor of
Institute of Chartered Secretaries       Hilton International, InterContinental     Administration degree in history
and Administrators.                      Hotels Group and the Royal Garden          from George Washington University
                                         Resorts Hotel Group. He holds a            in Washington D.C.
                                         Diploma in Hotel Management and
                                         Operations from Belfast College of
                                         Business Studies, UK.




Hotel Plaza Limited Annual Report 2008                       Our Key Management Executives                             9
Our Group Structure
as at 9 March 2009




                                                    HPL	Overseas	Investments	Pte	Ltd			
                                                    (in	member’s	voluntary	liquidation)
                                                                                                       100%

                                                    Hotel	Investments		
                                                    (Suzhou)	Pte.	Ltd.
                                                                                                       100%

                                                    Hotel	Investments		
                                                    (Hanoi)	Pte.	Ltd.
                                                                                                       100%

                                                    YIPL	Investment		
                                                    Pte.	Ltd.
                                                                                                       100%

                                                    Hotel	Plaza	Property		
                                                    (Singapore)	Pte.	Ltd.
                                                                                                       100%




  Hotel
                                                    New	Park	Hotel	
                                                    (1989)	Pte	Ltd
                                                                                                       100%

                                                    Parkroyal	Hotels	&	Resorts		
                                                    Pte.	Ltd.
                                                                                                       100%

                                                    Parkroyal	International		




  Plaza
                                                    Pte.	Ltd.
                                                                                                       100%

                                                    Parkroyal	Marketing		
                                                    Services	Pte.	Ltd.
                                                                                                       100%

                                                    Parkroyal	Technical	Services		
                                                                                                       100%




Limited
                                                    Pte.	Ltd.

                                                    Parkroyal	Hospitality		                            100%
                                                    Group	Pte.	Ltd.

                                                    Pan	Pacific	Hospitality	Holdings		
                                                    Pte.	Ltd.	(formerly	known	as	UOL	Hospitality	Pte.	Ltd.)
                                                                                                            100%

                                                    Pan	Pacific	International		
                                                    Pte.	Ltd.	                                         100%

                                                    United	Lifestyle	
                                                    Holdings	Pte	Ltd
                                                                                                       100%

                                                    St	Gregory	Spa		
                                                    Pte	Ltd
                                                                                                       100%

                                                    Dou	Hua	Restaurants		
                                                    Pte	Ltd
                                                                                                       100%

                                                    HPL	Properties	(Malaysia)
                                                    Sdn.	Bhd.	[MY]
                                                                                                       100%

                                                    Garden	Plaza	
                                                    Company	Limited	[VN]
                                                                                                       100%

                                                     Pilkon	Development	Company		
                                                     Limited	[BVI]
                                                                                                      39.4%

                                                    Success	Venture	Investments		
                                                    (WA)	Limited	[BVI]
                                                                                                       100%

                                                    Success	City	
                                                    Pty	Limited	[AU]
                                                                                                         95%

                                                    Success	Venture	Investments		
                                                    (Australia)	Ltd	[BVI]
                                                                                                         60%



20         Hotel Plaza Limited Annual Report 2008   Our Group Structure
                   Suzhou	Wugong	Hotel		
                   Co.,	Ltd	[PRC]
                                                    100%      Principal Activities
                                                                	   Investment	Holding	and	Others
                                                                	   Hotelier
                   Westlake	International		                     	   Hotel	Management	Services
                   Company	[VN]
                                                     75%        	   Spa,	Lifestyle	and	Restaurant	Operations
                                                                	   Associated	Companies

                   Yangon	Hotel	Limited	[MN]         95%      Notes
                                                              [AU]		 Incorporated	in	Australia
                                                              [BVI]	 Incorporated	in	The	British	Virgin	Islands
                                                              [MY]	 Incorporated	in	Malaysia
                                                              [MN]	 Incorporated	in	Myanmar
                                                              [IN]	 	 Incorporated	in	Indonesia
                                                              [JP]		 Incorporated	in	Japan
                                                              [PRC]	 Incorporated	in	The	People’s		
                                                                    	 Republic	of	China
                                                              [TH]		 Incorporated	in	Thailand
                                                              [USA]	 Incorporated	in	United	States	of	America
                                                                    	
                                                              [VN]	 Incorporated	in	Vietnam




                                                            Pan	Pacific	Hotels	and		
                                                            Resorts	America,	Inc.	[USA]
                                                                                                          100%

                                                                                                                  1%
                   Pan	Pacific	Hotels	and		                 PT.	Pan	Pacific	Hotels	&		
                   Resorts	Pte.	Ltd.
                                                    100%    Resorts	Indonesia	[IN]
                                                                                                            99%

                   Pan	Pacific	Marketing		                  Pan	Pacific	Hotels	and		
                                                    100%                                                  100%
                   Services	Pte.	Ltd.                       Resorts	Japan	Co.,	Ltd	[JP]
                                                                                                                  100%
                   Pan	Pacific	Technical		                  Pan	Pacific	Hotels	and	Resorts		
                   Services	Pte.	Ltd.
                                                    100%    Seattle	Limited	Liability	Co	[USA]
                                                                                               100%

                   Pan	Pacific	Hospitality		                 PPHR	(Thailand)	Company		
                   Pte.	Ltd.
                                                    100%     Limited	[TH]                                  49%




                                                            Grand	Elite	
                                         33.3%              Sdn.	Bhd.	[MY]
                                                                                                          100%

                   President	Hotel	                         Grand	Elite	(Penang)	
                   Sdn	Berhad	[MY]
                                                    66.7%   Sdn.	Bhd.	[MY]
                                                                                                          100%

                   Plaza	Hotel	Company		
                   Limited	[VN]
                                                     65%

                   Success	Venture	(WA)	
                   Unit	Trust	[AU]
                                                    100%

                   Success	Venture	
                   Pty	Limited	[AU]
                                                    100%

                   Success	Venture	(Darling	Harbour)		
                   Unit	Trust	[AU]
                                                     100%

                   Success	Venture	(Parramatta)		
                   Unit	Trust	[AU]
                                                    100%



Hotel Plaza Limited Annual Report 2008                      Our Group Structure                                          2
Our Hotels Singapore


Parkroyal	on		                                           Singapore
Beach	Road                                               Singapore achieved 10.1 million visitor arrivals in 2008,
7500C Beach Road                                         a decrease of 2% from 2007. The average room rate
Number	of	Rooms
                                                         reached a record $246, or 22% higher than the year
343 including suites                                     before. The average occupancy rate was 81%
                                                         compared to 87% in 2007.
Food	&	Beverage	Facilities
Plaza Brasserie
Si Chuan Dou Hua Restaurant                              With record visitor arrivals from Indonesia, China,
Tian Fu Teahouse
Poolside Cafe & Bar                                      Australia, India and Malaysia, these markets accounted
Club 5                                                   for about 50% of total visitor arrivals in Singapore for
Meeting & Banquet Rooms
                                                         the year.
Others
Business Centre
Swimming Pool & Jacuzzi
                                                         Visitor days – the total number of days that
St. Gregory Spa                                          tourists spent in Singapore – also hit a record high.
Gym & Aerobics Studio
                                                         At 39.8 million days, this was an increase of 6.9%
                                                         from the previous year.
Parkroyal	on	
Kitchener	Road                                           Hotel Operations
8 Kitchener Road
                                                         Parkroyal	on	Beach	Road
Number	of	Rooms                                          Average occupancy of the 343-room Parkroyal on
534 including suites
                                                         Beach Road declined by 8 percentage points to 79%
Food	&	Beverage	Facilities                               in 2008, while the average room rate improved by
Spice Brasserie                                          34% to $221.
Hai Xiang Restaurant
Chances Lounge
Meeting & Banquet Rooms
                                                         Parkroyal	on	Kitchener	Road
Others                                                   The 534-room Parkroyal on Kitchener Road saw
Swimming Pool                                            average occupancy dip by 4 percentage points to
Spa & Fitness
                                                         75% in 2008. However, the average room rate
                                                         increased by 33% to $187.




22              Hotel Plaza Limited Annual Report 2008   Our Hotels Singapore
                                                 Upper	Pickering	Street	Site	(under	development)
 Occupancy Rates of                              The Urban Redevelopment Authority awarded the
 Investment Properties                           tender for the Land Parcel at Upper Pickering Street
 Singapore                                       to the Group in October 2007. The site has a land area
 (%)
 100
                                                 of approximately 6,959 sqm with a tenure of 99 years
  90
                                                 and a plot ratio of 4.2. The proposed development is
  80
                                                 intended to comprise a city hotel with approximately
                                                 365 rooms and an office block which may include
  70
                                                 44 SOHO (small-office-home-office) units.
  60

  50
                                                 Planning Permission from URA has been obtained
  40
                                                 and piling works have commenced in the second half
  30
                                                 of 2008. The development is expected to complete in
  20
                                                 1Q2011.
  10
           04        05         06     07   08
                                                 Properties
       Commercial
       Average occupancy rate                    Residential	
       Residential                               The Group owns Parkroyal Serviced Residences,
       Parkroyal Serviced Residences
       Average occupancy rate                    the 90 units of serviced apartments at The Plaza on
                                                 Beach Road. Upgrading of the air-conditioning system
                                                 for all 90 units began mid-October 2008. The Group
                                                 also commenced renovation of 40 apartments in
                                                 mid-November. Like the air-conditioning upgrading,
                                                 renovation was completed in February 2009.

                                                 Occupancy closed at 88%, down from 96% the year
                                                 before, due to the upgrading and renovation works
                                                 during 4Q2008.

                                                 Retail	and	Commercial
                                                 The Group’s retail and commercial properties
                                                 performed well during the year. The average
                                                 occupancy for the retained shop units and offices
                                                 at The Plaza improved to 97% in 2008.




Hotel Plaza Limited Annual Report 2008           Our Hotels Singapore                                23
Our Hotels International


Australia                                                 Australia
Crowne	Plaza		                                            The Group’s three hotels in Australia boast prime
Darling	Harbour                                           locations in major cities. The Sydney market saw
A 3-level hotel with 345 rooms
at 50 Day Street, Sydney,                                decreased demand as a result of the global economic
Australia                                                 turbulence. Consumer confidence has dropped and
Crowne	Plaza	Parramatta                                   the domestic leisure market in Western Australia
A 3-level hotel with 96 rooms
at 30 Phillip Street, Parramatta,
                                                          continues to decline. Corporate demand in Perth,
New South Wales, Australia                                while still currently unaffected, could see a contraction
Sheraton	Perth	Hotel                                      in 2009 if global demand for Western Australian
A 23-storey hotel tower with                              resources slows down considerably.
a 4-level extension wing,
comprising a total of 486 rooms
at the corner of Adelaide Terrace                         Crowne	Plaza	Darling	Harbour,	Sydney
and Hill Street, Perth, Australia
                                                          The Group has a 60% interest in the 345-room
                                                          Crowne Plaza Darling Harbour, located at Day Street
                                                          near the scenic waterfront. During the year, average
                                                          occupancy declined by 5 percentage points to 82%
                                                          while the average room rate was maintained at
                                                          AUD189. Renovations to upgrade 52 rooms
                                                          commenced in July 2008 and were completed by
                                                          October 2008.

                                                          Crowne	Plaza	Parramatta,	Sydney
                                                          The 196-room Crowne Plaza Parramatta, in which
                                                          the Group has a 60% interest, is located at Phillip
                                                          Street in the heart of the business district of Parramatta.
                                                          In 2008, average occupancy decreased by 5 percentage
                                                          points to 78%, while the average room rate improved
                                                          by 6% to AUD170.

                                                          Sheraton	Perth	Hotel,	Perth
                                                          With the addition of 99 guestrooms in December
                                                          2007, the Sheraton Perth Hotel, which is 100%-owned
                                                          by the Group, now has a total of 486 rooms. Average
                                                          occupancy decreased 1 percentage point to 75%,
                                                          with the average room rate rising by 16% to AUD222.




24               Hotel Plaza Limited Annual Report 2008   Our Hotels International
The	People’s	                            The People’s Republic of China
Republic	of	China                        Sheraton	Suzhou	Hotel	&	Towers,	Suzhou
Sheraton	Suzhou		                        The Group has a 100% interest in the Sheraton
Hotel	&	Towers
An establishment built in
                                         Suzhou Hotel & Towers, located at Xinshi Road within
the Ming Dynasty style with              the Suzhou city precinct. During the year, average
484 rooms within a cluster of
low-rise buildings at Xinshi             occupancy was 50%, down by 9 percentage points.
Road, Suzhou, Jiangsu,                   The average room rate also registered a 5% reduction
The People’s Republic of China
                                         to RMB841 as a result of increased competition and
                                         external issues such as natural disasters and visa
Vietnam                                  restrictions due to the Beijing Olympics.
Hotel	Sofitel	Plaza	Hanoi
A 20-storey hotel with
309 rooms and 36 serviced                In order to give the property a competitive edge,
apartments at Thanh Nien Road,
Hanoi, Vietnam                           the hotel refurbished 131 of its existing rooms from
                                         December 2007 to April 2008. Construction of a
Parkroyal	Saigon		
Comprising a 0-storey                   new wing with 99 luxury guestrooms was completed
hotel building with a 9-storey
extension wing comprising a
                                         in December 2008, increasing room inventory to
total of 93 rooms and a                 484 rooms. Upgrading of the hotel’s public area
4-storey annex office building
at Nguyen Van Troi Street,               commenced in November 2008 and was completed
Ho Chi Minh City, Vietnam                in February 2009.
Hotel	Sofitel	Plaza	Saigon	and	
Central	Plaza                            Vietnam
The 287-room Hotel Sofitel
Plaza Saigon at 7 Le Duan               The Group has interests in three premier hotels in
Boulevard, District ,                   Vietnam. These are located in the charming capital
is conveniently located
within the major commercial              of Hanoi and the bustling commercial centre of
and diplomatic precinct,
Ho Chi Minh City, Vietnam
                                         Ho Chi Minh City.

                                         Hotel	Sofitel	Plaza	Hanoi,	Hanoi
                                         Hotel Plaza has a 75% interest in the 309-room
                                         Hotel Sofitel Plaza Hanoi. The hotel commands a
                                         scenic view of the West Lake and Red River in Hanoi,
                                         with convenient access to the central business district.
                                         During the year, average occupancy declined by
                                         4 percentage points to 71%, while the average
                                         room rate increased by 35% to USD135.




Hotel Plaza Limited Annual Report 2008   Our Hotels International                               25
Our Hotels International


Malaysia                                                 Parkroyal	Saigon,	Ho	Chi	Minh	City
Parkroyal	Kuala	Lumpur                                   The 193-room Parkroyal Saigon is wholly-owned
A 23-storey tower and a 6-storey
podium, with the 426-room hotel                          by Hotel Plaza. Refurbishment of 124 guestrooms
occupying the tower and part                             commenced in December 2007 and was completed
of the podium at Jalan Sultan
Ismail, Kuala Lumpur, Malaysia                           in 1Q2008. Average occupancy for the year decreased
Parkroyal	Penang
                                                         by 11 percentage points to 70%. The average room
An 8-storey beachfront resort                            rate increased by 28% to USD102.
hotel with 309 rooms at
Batu Ferringhi Beach, Penang,
Malaysia                                                 Hotel	Sofitel	Plaza	Saigon	and	Central	Plaza,		
                                                         Ho	Chi	Minh	City
Myanmar                                                  The 287-room Hotel Sofitel Plaza Saigon, in which
Parkroyal	Yangon                                         the Group has a 26% interest, is conveniently located
A 8-storey V-shaped tower
comprising 267 rooms at the                              in the main commercial and diplomatic precinct.
corner of Alan Pya Phaya Road                            During the year, 80 deluxe rooms were refurbished.
and Yaw Min Gyi Road, Yangon,
Union of Myanmar                                         Average occupancy dropped by 13 percentage points
                                                         to 64% in 2008 while the average room rate rose by
                                                         32% to USD161.

                                                         Adjoining the hotel is the Central Plaza, a 16-storey
                                                         office block. Its total lettable area of 7,895 sqm was
                                                         fully let out during the year.

                                                         Malaysia
                                                         Our two hotels in Malaysia, in which Hotel Plaza has
                                                         a 100% interest, are located in the centre of tourism
                                                         and commerce.

                                                         Parkroyal	Kuala	Lumpur
                                                         The 426-room Parkroyal Kuala Lumpur, with the
                                                         adjoining President House, is strategically located in
                                                         the Golden Triangle, the capital’s main commercial
                                                         and retail district. Average occupancy of the hotel was
                                                         71%, a reduction of 9 percentage points year on year.
                                                         The average room rate grew by 8% to RM267.

                                                         Parkroyal	Penang
                                                         Works to convert 31 existing rooms into 16 larger
                                                         rooms commenced in November 2007 and were
                                                         completed in May 2008. The Parkroyal Penang now
                                                         has 309 rooms and maintained its average occupancy
                                                         at 67%. The average room rate declined by 2%
                                                         to RM329.

                                                         Myanmar
                                                         Parkroyal	Yangon
                                                         Hotel Plaza has a 95% interest in the 267-room hotel.
                                                         Average occupancy for the hotel saw a 7 percentage
                                                         point drop to 43% in 2008, while the average room
                                                         rate increased by 21% to USD34.




26              Hotel Plaza Limited Annual Report 2008   Our Hotels International
Our Hotel Management


Pan	Pacific	Hotels	and	Resorts                             Pan Pacific Hotels and Resorts has also enhanced
Hotel Plaza acquired from its holding company,             its distribution system, PANTHER, interfaced with
UOL Group Limited, all the Pan Pacific operations for      its award-winning panpacific.com, to drive greater
$21.3 million in October 2008. The assets comprise         revenue to its hotels. It continues to strive for
the entire issued share capital of Pan Pacific             excellence in hotel management to deliver enhanced
International Pte. Ltd. and the entire issued share        value to its stakeholders.
capital of UOL Hospitality Pte. Ltd., now known as
Pan Pacific Hospitality Holdings Pte. Ltd. and its         Parkroyal	Hotels	&	Resorts
wholly owned subsidiaries.                                 Parkroyal Hotels & Resorts Pte Ltd is a wholly owned
                                                           hotel management subsidiary of Hotel Plaza Limited,
Pan Pacific Hotels and Resorts manages                     which has a portfolio of seven hotels, resorts and
11 well-known hotels and resorts covering over             serviced suites in Asia Pacific. Each of the Parkroyal
3,400 rooms throughout Asia and North America.             hotels is situated in prime locations and offers deluxe
The latest addition to the portfolio is Pan Pacific        accommodation with a comprehensive range of
Orchard, a second hotel in Singapore which opened          up-to-date facilities. The brand promises a lifestyle
in February 2008. The 342-room Pan Pacific Tianjin         approach to hospitality that will leave guests with an
in China is next in the pipeline, scheduled to open        experience to remember.
in 2012.

Pan Pacific Hotels and Resorts will focus resources
to extend its brand footprint into key cities throughout
Asia, with predominant emphasis on China as well as
the West Coast of America. The brand broadened
its customer appeal with the launch of Pan Pacific
Serviced Suites – Your Local Connection. The first
of this extended stay brand opened in April 2008 on
Somerset Road in Singapore. A second such property
will open in Bangkok in 2009.

In 2008, Pan Pacific Hotels and Resorts continues
to set new benchmarks in operational excellence
and service quality. The chain won numerous global
accolades including the AAA Travel Guide’s Four
Diamond Award, and World’s Best Business Hotel
and World’s Best Airport Hotel at the prestigious
World Travel Awards.




Hotel Plaza Limited Annual Report 2008                     Our Hotel Management                                      27
Our Human Resources


The Group employed 683 employees in Singapore           Pan	Pacific	Hotels	and	Resorts	
at the end of 2008, compared to 711 employees a         Remaining committed to the communities in
year earlier. The Excellent Service Award 2008 was      which it operates, Pan Pacific Hotels and Resorts,
presented to 12 of the Group’s hotel employees,         in co-operation with the United Nations Children's
of whom one received the prestigious Star Award.        Fund (UNICEF), launched the Youth Development
Asiah binte Ismail, F&B Supervisor at Parkroyal on      Program (YCDP) in 1995 in Thailand. The programme,
Beach Road, was named Employee of the Year 2008         which has since expanded to include Pan Pacific
by the National Trades Union Congress (NTUC),           hotels in Dhaka, Manila and Jakarta, continues to
the Food Drinks and Allied Workers’ Union and the       gain momentum and support.
Singapore Hotel Association. NTUC also honoured
Helen Sng, Housekeeping Supervisor at Parkroyal on      The YCDP is designed to provide innovative
Beach Road, with the May Day Model Workers Award.       educational and vocational training to disadvantaged
At the Group level, an integrated Human Resource        youth throughout the world who may otherwise be
Information System (HIRIS) was implemented to           engaged in crime, prostitution, drugs, exploitation,
improve work processes and efficiency. Its successful   abuse, and deprivation. Youths who participate in the
implementation across the hotels in Singapore not       programme get to utilise their skills for employment
only resulted in more efficient workflows, but also     opportunities and embark on lifelong learning.
addressed our focus on moving towards a paperless
environment as seen in our e-leave application and      Associates at various levels within our hotels have
e-based personal data updates.                          consistently garnered awards and accolades. Most
                                                        recently, the Singapore Hotel Association (SHA)
The Group is also committed to be a good corporate      honoured the Pan Pacific Singapore for Leading HR
citizen. For example, Hotel Plaza made a corporate      Practices in Learning & Human Capital Development,
donation of $100,000 to victims of the Sichuan          and Leading HR Practices in Workplace Safety &
earthquake in China. This was in addition to            Health. These awards are an indication that our
contributions from our management and staff.            people innovation and education programmes are
                                                        being recognised.




28         Hotel Plaza Limited Annual Report 2008       Our Human Resources
Parkroyal	Hotels	&	Resorts	
Parkroyal Hotels & Resorts was conferred the
Patron of the Arts Award 2008 by the National Arts
Council in Singapore. Since 2006, Parkroyal has been
involved with the youth in performing arts, specifically
with JazzKids, a group of local performers. Our
fund-raising activities have provided these youths
with opportunities to showcase and improve their
talents. Their achievements were recognised when
JazzKids won four gold medals at the recent
World Championships of Performing Arts held
in the USA.

Receiving the Patron of the Arts Award affirms
our belief that through teamwork and collaboration,
great things are achievable. Parkroyal will continue
to support and make a lasting impression on the
Singapore arts scene.

This year, both the Parkroyal hotels in Singapore
obtained accreditation as an Approved Training
Organisation (ATO) from the Workforce Development
Agency. For a start, the Workforce Skills Qualifications
courses “Interact with Guest” and “Work Safely”
were conducted for all hotel staff. This underlines
our commitment to continuous staff training and
development to raise service standards.

In practising our core value of corporate social
responsibility, employees of Parkroyal donated more
than $24,000 to victims of the Sichuan earthquake in
China and cyclone Nargis in Yangon, Myanmar.




Hotel Plaza Limited Annual Report 2008                     Our Human Resources   29
Our Spa/Lifestyle-Related Operations


St. Gregory Spa                                              Besides the authentic cuisine, a unique aspect of
Established in Singapore in 1997, St. Gregory is a           dining at Si Chuan Dou Hua is the presence of the
premier holistic wellness sanctuary built on the four        traditional tea master who integrates Chinese martial
pillars of therapy, fitness, aesthetics and active-ageing.   arts, dance and gymnastics when pouring tea.
A pioneer and market leader in the spa industry,
St. Gregory continues to set the trend for excellent         Tian Fu Teahouse, by Si Chuan Dou Hua Restaurant
spa expertise offering specialised and traditional           was first introduced in 2005 at Parkroyal on Beach
healing therapies ranging from Chinese Tui Na to             Road. Boasting the first teahouse concept within a
Javanese massages and Ayurveda, coupled with                 Chinese restaurant in Singapore, Tian Fu Teahouse
advanced technologies and techniques from the                carries a wide selection of over 25 types of fine tea.
United States and Europe.
                                                             The teahouse is a perfect complement to
The Group now owns, franchises and/or manages                Si Chuan Dou Hua Restaurant as guests can
seven spas in the Asia Pacific region including              adjourn to the teahouse before or after their meals
Singapore, Malaysia and Japan.                               to enhance and/or complete their dining experience.

Si Chuan Dou Hua Restaurant                                  A second Tian Fu Teahouse was opened at
The Si Chuan Dou Hua chain of restaurants, designed          UOB Plaza in 2008.
to add value to Parkroyal hotels, is renowned for its
quality and authenticity of Sichuan dishes.

Driven by the desire of wanting to continue the fine
tradition of bringing authentic tastes of China to the
world, Si Chuan Dou Hua opened its first branch at
Parkroyal on Beach Road in 1996.

The success led to the second opening of the
concept restaurant in Singapore at UOB Plaza in
2002. A third Si Chuan Dou Hua restaurant followed
in 2003 at Parkroyal Kuala Lumpur. The latest
restaurant opened in Tokyo, Japan in 2007.




30          Hotel Plaza Limited Annual Report 2008           Our Spa/Lifestyle-Related Operations
Our Corporate Information


Board	Of	Directors                       Nominating	Committee                       Company	Secretary
Wee	Cho	Yaw                              Alan	Choe	Fook	Cheong	                     Foo	Thiam	Fong	Wellington
Chairman                                 Chairman
                                                                                    Deputy	Company	Secretary
Gwee	Lian	Kheng                          Wee	Cho	Yaw                                Yeong	Sien	Seu
Group Chief Executive
                                         Lim	Kee	Ming                               Auditors
Alan	Choe	Fook	Cheong                                                               PricewaterhouseCoopers	LLP
                                         Remuneration	Committee                     8 Cross Street
Lim	Kee	Ming                             Lim	Kee	Ming	                              #7-00 PWC Building
                                         Chairman                                   Singapore 048424
Wee	Ee	Chao	                                                                        Partner-in-charge:
                                         Wee	Cho	Yaw                                Mr Sim Hwee Cher
Low	Weng	Keong                                                                      Year of appointment: 2008
                                         Alan	Choe	Fook	Cheong
Wee	Wei	Ling                                                                        Principal	Bankers
                                         Management                                 United	Overseas	Bank	Limited		
James	Koh	Cher	Siang                     Gwee	Lian	Kheng	                           Far	Eastern	Bank	Limited		
                                         Group Chief Executive                      Public	Bank	Berhad		
Wee	Ee	Lim	                                                                         Malayan	Banking	Berhad		
                                         Amedeo	Patrick	Imbardelli	                 Australia	and	New	Zealand		
Executive	Committee                      President & CEO                            	 Banking	Group	Limited	
Wee	Cho	Yaw
Chairman                                 Wee	Wei	Ling	                              Registered	Office
                                         Executive Director,                        0 Thomson Road
Gwee	Lian	Kheng                          Asset Management                           #33-00 United Square
                                                                                    Singapore 30759
Alan	Choe	Fook	Cheong                    Foo	Thiam	Fong	Wellington	                 Telephone : (65) 6255 0233
                                         Company Secretary                          Facsimile : (65) 6252 9822
Wee	Ee	Chao	                                                                        Website : hpl.com.sg
                                         Neo	Soon	Hup	
Audit	Committee                          Chief Financial Officer                    Share	Registrar
Lim	Kee	Ming	                                                                       Boardroom	Corporate		
Chairman                                 Kevin	Croley                               &	Advisory	Services	Pte.	Ltd.	
                                         Senior Vice President,                     3 Church Street
Alan	Choe	Fook	Cheong                    Marketing & Sales                          #08-0 Samsung Hub
                                                                                    Singapore 049483
Low	Weng	Keong	                          Scott	Swank                                Telephone : (65) 6536 5355
                                         Senior Vice President,                     Facsimile : (65) 6536 360
                                         Operations

                                         Yeo	Bin	Hong
                                         Senior Manager,
                                         Internal Audit




Hotel Plaza Limited Annual Report 2008                      Our Corporate Information                                3
Our Property Summary


Hotels Owned and Managed by the Group

 Parkroyal on Beach Road S$113.5m                                   Present Capital Value
 A	7-storey	hotel	building	with	343	rooms	at		
 7500C	Beach	Road,	Singapore                                        Completed	                            1971	&	1979
                                                                    Tenure	of	Land		                      99-Year	Lease	from	1968
                                                                    Approximate	Gross	Floor	Area	(SqM)	   19,900
                                                                    Carpark	Facilities	                   47




 Parkroyal on                                                       S$193.0m
 Kitchener Road
                                                                    Present Capital Value
                                                                    Completed	                            1976	&	1981
                                                                    Purchased	                            1989
 Comprising	a	5-storey	podium	with	a	basement	and	a	16-storey		     Tenure	of	Land		                      Freehold
 Y-shaped	tower	with	534	rooms,	at	181	Kitchener	Road,	Singapore    Approximate	Gross	Floor	Area	(SqM)	   37,811
                                                                    Carpark	Facilities	                   273




 Parkroyal Saigon                                                   S$41.9m
                                                                    Present Capital Value
 Comprising	a	10-storey	hotel	building	with	a	9-storey		
 extension	wing,	with	a	total	of	193	rooms	and	a	4-storey		         Completed	                            1997
 annex	office	building	at	Nguyen	Van	Troi	Street,		                 Tenure	of	Land		                      49-Year	Lease	from	1994
 Ho	Chi	Minh	City,	Vietnam                                          Approximate	Gross	Floor	Area	(SqM)	   12,165
                                                                    Carpark	Facilities	                   25




 Parkroyal Yangon                                                   S$8.0m
                                                                    Present Capital Value
 An	8-storey	V-shaped	tower	comprising	267	rooms	at	the		
 corner	of	Alan	Pya	Phaya	Road	and	Yaw	Min	Gyi	Road,		              Completed	                            1997
 Yangon,	Union	of	Myanmar                                           Purchased	                            2001
                                                                    Tenure	of	Land		                      30-Year	Lease	from	1997
                                                                    Approximate	Gross	Floor	Area	(SqM)	   17,700
                                                                    Carpark	Facilities	                   140




 Parkroyal Kuala Lumpur                                             S$87.9m
                                                                    Present Capital Value
 A	23-storey	tower	with	a	6-storey	podium	together		
 with	an	annexed	8-storey	car	park	building,	with	the	426	room		    HOTEL
 hotel	occupying	the	tower	and	part	of	the	podium	at		              Completed	                            1974
 Jalan	Sultan	Ismail,	Kuala	Lumpur,	Malaysia                        Purchased	                            1999
                                                                    Tenure	of	Land		                      Freehold
                                                                    Approximate	Gross	Floor	Area	(SqM)	   56,707	
                                                                    CAR PARK ANNEXE
                                                                    Tenure	of	Land		                      Leasehold,	expiring	in	2080	
                                                                    Approximate	Gross	Floor	Area	(SqM)	   11,128	
                                                                    Carpark	Facilities	                   320




 Parkroyal Penang                                                   S$54.9m
                                                                    Present Capital Value
 A	309-room	8-storey	beachfront	resort	hotel	at		
 Batu	Ferringhi	Beach,	Penang,	Malaysia                             Completed	                            1990
                                                                    Purchased	                            1999
                                                                    Tenure	of	Land		                      Freehold
                                                                    Approximate	Gross	Floor	Area	(SqM)	   31,502
                                                                    Carpark	Facilities	                   147




32           Hotel Plaza Limited Annual Report 2008                Our Property Summary
Hotels Owned by the Group and Managed by Third Parties

 Crowne Plaza                                                          S$83.0m
 Darling Harbour
                                                                       Present Capital Value
                                                                       Completed	                            1991
                                                                       Purchased	                            1993
 A	13-level	hotel	with	345	rooms	at		                                  Tenure	of	Land		                      Freehold
 150	Day	Street,	Sydney,	Australia                                     Approximate	Gross	Floor	Area	(SqM)	   24,126
                                                                       Carpark	Facilities	                   58




 Crowne Plaza Parramatta S$36.1m                                       Present Capital Value
 A	13-level	hotel	with	196	rooms	at	30	Phillip	Street,	Parramatta,		
 New	South	Wales,	Australia                                            Completed	                            1986
                                                                       Purchased	                            1994
                                                                       Tenure	of	Land		                      Freehold
                                                                       Approximate	Gross	Floor	Area	(SqM)	   16,694
                                                                       Carpark	Facilities	                   176




 Sheraton Perth Hotel                                                  S$133.4m
                                                                       Present Capital Value
 A	23-storey	hotel	tower	with	a	4-level	extension	wing,	comprising	
 a	total	of	486	rooms	at	the	corner	of	Adelaide	Terrace	and		          Completed	                            1973
 Hill	Street,	Perth,	Australia                                         Purchased	                            1995
                                                                       Tenure	of	Land		                      Freehold
                                                                       Approximate	Gross	Floor	Area	(SqM)	   31,513
                                                                       Carpark	Facilities	                   220




 Sheraton Suzhou                                                       S$133.1m
 Hotel & Towers
                                                                       Present Capital Value
                                                                       Completed	                            1998
                                                                       Purchased	                            2001
 Comprising	an	establishment	built	in	the	Ming	Dynasty	style,		        Tenure	of	Land		                      50-Year	Lease	from	1994
 with	484	rooms	accommodated	within	a	cluster	of	low-rise		            Approximate	Gross	Floor	Area	(SqM)	   63,232
 buildings	at	Xinshi	Road,	Suzhou,	Jiangsu,	The	People's		             Carpark	Facilities	                   100
 Republic	of	China



 Hotel Sofitel Plaza Hanoi                                             S$108.4m
                                                                       Present Capital Value
 A	20-storey	hotel	with	309	rooms	and	36	serviced	apartments		
 at	Thanh	Nien	Road,	Hanoi,	Vietnam                                    Completed	                            1998
                                                                       Purchased	                            2001
                                                                       Tenure	of	Land		                      48-Year	Lease	from	1993
                                                                       Approximate	Gross	Floor	Area	(SqM)	   39,250
                                                                       Carpark	Facilities	                   30




Hotel Plaza Limited Annual Report 2008                                 Our Property Summary                                            33
Our Property Summary


Investment Property Owned by the Group

 The Plaza                                                                S$157.0m
                                                                          Present Capital Value
 Retained	interests	in	a	32-storey	tower	block	comprising		
 restaurants,	hotel	function	rooms,	shops,	offices	and	serviced		         SHOP & OFFICES
 suites,	two	adjacent	commercial	buildings	and	a	multi-storey		           Completed	                                1974	&	1979
 carpark	block	at	7500	Beach	Road,	Singapore                              Tenure	of	Land		                          99-Year	Lease	from	1968
                                                                          Approximate	Net	Lettable		
                                                                          Floor	Area	(SqM)	                         18,597
                                                                          Carpark	Facilities	                       641	
                                                                          90 SERVICED APARTMENTS AND  OWNER-OCCUPIED APARTMENT
                                                                          Completed	                      1979
                                                                          Tenure	of	Land		                99-Year	Lease	from	1968	
                                                                          Approximate	Net	Lettable		
                                                                          Floor	Area	(SqM)	               6,125	&	165	respectively	



Property Under Development

 Upper Pickering Street
                                                                          Expected	Completion	Date	                 1st	quarter	2011
                                                                          Tenure	of	Land		                          99-Year	Lease	from	2008
                                                                          Site	Area/Gross	Floor	Area	(SqM)	         6,959/29,227
 A	proposed	development	comprising	a	365-room	hotel	and		
 44	units	of	small	home	office	units	in	Singapore




Properties Owned by Third Parties and Managed by The Group
 PROPERTY                                                           ADDRESS	                              	                       NO.	OF	ROOMS

 Singapore
 Pan Pacific Singapore                                              7	Raffles	Boulevard,	Marina	Square,	Singapore	039595		                    778	
 Pan Pacific Orchard*                                               10	Claymore	Road,	Singapore	229540	                                       206
 Pan Pacific Serviced Suites                                        96	Somerset	Road,	Singapore	238163	                                       126

 Malaysia
 Pan Pacific Kuala Lumpur                                           Jalan	CTA	4B,	64000	KLIA,	Sepang	 	
                                                                    Selangor	Darul	Ehsan,	Malaysia
                                                                                                                                              441		

 International Airport
 Thailand                                                           952	Rama	IV	Road,	Suriyawongse,	      	                                   235		
                                                                    Bangrak,	Bangkok	10500,	Thailand
 Pan Pacific Bangkok
 Indonesia                                                          Jalan	M.H.	Thamrin	6	               	                                     400		
                                                                    P.O.Box	3138,	Jakarta	10340,	Indonesia
 Sari Pan Pacific Jakarta
 Philippines                                                        M.	Adriatico	Cor.	Gen.	Malvar	Sts.	,	Malate,	                             236		
                                                                    Manila	City	1009,	Philippines
 Pan Pacific Manila
 Bangladesh                                                         107	Kazi	Nazrul	Islam	Avenue	      	                                      277		
                                                                    G.P.O.	Box	3595,	Dhaka	1215,	Bangladesh
 Pan Pacific Sonargaon Dhaka
 North	America
 Pan Pacific Vancouver, Canada                                      300-999	Canada	Place,	Vancouver,	BC	V6C	3B5	                              504	
 Pan Pacific Whistler Mountainside, Canada                          4320	Sundial	Crescent,	Whistler,	British	Columbia	V0N1B4,	Canada		        121
 Pan Pacific Whistler Village Centre, Canada                        4299	Blackcomb	Way,	Whistler,	British	Columbia	V0N1B4,	Canada		            83
 Pan Pacific Seattle, USA                                           2125	Terry	AVE,	Seattle,	WA	98121	    	                                   160


* Franchise


34             Hotel Plaza Limited Annual Report 2008                   Our Property Summary
Our Room Distribution


By Brands
                                                              EXISTING                            PIPELINE


                                                   NO.	OF	HOTELS      NO.	OF	ROOMS     NO.	OF	HOTELS     NO.	OF	ROOMS


 Pan Pacific                                           2                 3,567             2                490
 Parkroyal                                              7                 2,62             2                652
 Others                                                 6*                2,07             –                  –
 Grand	Total                                           25                 7,836             4                1,142

By Ownership Type
                                                               EXISTING                           PIPELINE


                                                   NO.	OF	HOTELS      NO.	OF	ROOMS     NO.	OF	HOTELS     NO.	OF	ROOMS


 Owned                                                  3*               4,269                             365
 Managed                                                2                3,567             3                777
 Grand	Total                                           	25                7,836             4                1,142
* Including hotel owned by an associated company




Hotel Plaza Limited Annual Report 2008                         Our Room Distribution                                    35
Our Performance Statistics


 Hotel Average Daily Room Rates
 Singapore                                                Australia                                                    Vietnam
 (S$)                                                     (S$)                                                        (S$)
 450                                                      450                                                          450
 400                                                      400                                                          400
 350                                                      350                                                          350
 300                                                      300                                                          300
 250                                                      250                                                          250
 200                                                      200                                                          200
 150                                                      150                                                          150
 100                                                      100                                                          100
     50                                                       50                                                        50
      0                                                        0                                                            0
              04        05       06     07     08                      04        05       06      07     08                          04        05           06    07    08

          Parkroyal on Beach Road                                  Crowne Plaza Darling Harbour                                 Parkroyal Saigon
          Parkroyal on Kitchener Road                              Crowne Plaza Parramatta                                      Hotel Sofitel Plaza Hanoi
                                                                   Sheraton Perth Hotel




 Hotel Average Occupancy Rates
 Singapore                                                Australia                                               Vietnam
 (%)                                                      (%)                                                     (%)
 100                                                      100                                                     100
     90                                                       90                                                      90
     80                                                       80                                                      80
     70                                                       70                                                      70
     60                                                       60                                                      60
     50                                                       50                                                      50
     40                                                       40                                                      40
     30                                                       30                                                      30
     20                                                       20                                                      20
     10                                                       10                                                      10
      0                                                        0                                                       0
              04        05       06     07     08                      04        05       06      07     08                       04         05        06        07    08

          Parkroyal on Beach Road                                  Crowne Plaza Darling Harbour                            Parkroyal Saigon
          Parkroyal on Kitchener Road                              Crowne Plaza Parramatta                                 Hotel Sofitel Plaza Hanoi
                                                                   Sheraton Perth Hotel




 Total Revenue
     Singapore                                            Australia                                                   Vietnam
 (S$’m)                                                   (S$’m)                                                  (S$’m)
 120                                                      120                                                     120

 100                                                      100                                                     100

     80                                                       80                                                      80

     60                                                       60                                                      60

     40                                                       40                                                      40

     20                                                       20                                                      20

       0                                                        0                                                       0
               04       05        06    07      08                      04       05       06      07      08                       04        05        06        07    08

          Parkroyal on Beach Road                                  Crowne Plaza Darling Harbour                            Parkroyal Saigon
          Parkroyal on Kitchener Road                              Crowne Plaza Parramatta                                 (Rebranded to Parkroyal Saigon with
                                                                   Sheraton Perth Hotel                                    effect from 1 January 2008)




36                   Hotel Plaza Limited Annual Report 2008                              Our Performance Statistics
Malaysia                                       China                                                   Myanmar
(S$)                                           (S$)                                                    (S$)
450                                            450                                                     450
400                                            400                                                     400
350                                            350                                                     350
300                                            300                                                     300
250                                            250                                                     250
200                                            200                                                     200
150                                            150                                                     150
100                                            100                                                     100
 50                                             50                                                         50
   0                                              0                                                         0
           04       05          06   07   08              04       05       06         07    08                     04       05    06   07   08

       Parkroyal Kuala Lumpur                         Sheraton Suzhou Hotel & Towers                            Parkroyal Yangon
       Parkroyal Penang




Malaysia                                       China                                                   Myanmar
(%)                                            (%)                                                     (%)
100                                            100                                                     100
 90                                             90                                                         90
 80                                             80                                                         80
 70                                             70                                                         70
 60                                             60                                                         60
 50                                             50                                                         50
 40                                             40                                                         40
 30                                             30                                                         30
 20                                             20                                                         20
 10                                             10                                                         10
   0                                              0                                                         0
           04       05          06   07   08              04       05       06         07    08                     04       05    06   07   08

       Parkroyal Kuala Lumpur                         Sheraton Suzhou Hotel & Towers                            Parkroyal Yangon
       Parkroyal Penang




Malaysia                                       China                                                       Myanmar
(S$’m)                                         (S$’m)                                                  (S$’m)
120                                            120                                                     120

100                                            100                                                     100

 80                                             80                                                         80

 60                                             60                                                         60

 40                                             40                                                         40

 20                                             20                                                         20

      0                                              0                                                       0
           04        05         06   07   08              04        05       06        07    08                     04       05    06   07   08

       Parkroyal Kuala Lumpur                         Sheraton Suzhou Hotel & Towers                            Parkroyal Yangon
       Parkroyal Penang




Hotel Plaza Limited Annual Report 2008                                        Our Performance Statistics                                          37
Our Financial Review
Five-Year Financial Summary

                                                                2004             2005                2006            2007         							2008
                                                            $’000    %       $’000    %           $’000   %      $’000    %        $’000      %
Group	Revenue
Room sales                                               27,383     50 45,23       53 62,956        57 70,68         59 186,463	      59
Food & beverage sales                                     87,84     34 9,762        33 93,826         33 88,879          3 90,931	       29	
Other hotel services                                      7,288      7 7,788         7 6,925          6 8,55           7 19,162	        7	
Hotel ownership                                          23,855     9 254,673       93 273,707        96 277,202         97 296,556	      95	
Rental of commercial properties                           ,970      5    ,32       4     8,34      3      6,096       2     6,861	     2	
Rental of serviced apartments                              2,47           2,78            3,3            4,283            4,839	     2	
Other activities including revenue
   from car park rentals                                     987      –       953       –     ,044      –      ,32       –     1,435	     –	
Property investments                                      5,428      6    4,992       5    2,498      4     ,69       3    13,135	     4	
Hotel management services                                      –       –       –        –       –         –       –         –   4,268	   1	
Property development                                       2,256          5,65        2       –         –       –         –       –	   –	
Trading operations                                         4,497       2       –        –       –         –       –         –       –	   –	
Other investments                                            803       –   ,050        –   ,050         –   ,266         –   1,266	   –	
Total revenue                                            254,839     00 275,880      00 287,255       00 290,59       00 315,225	 100	
Group	Income	Statements
Hotel ownership                                           28,87           37,029            4,00            52,998            63,451
Property investments                                        8,746           8,963             6,590              7,4             8,741
Hotel management services                                       –               –                 –                  –             1,476
Property development                                        ,728           ,736                 –                  –                 –
Trading operations                                           (230)              –                 –                  –                 –
Other investments                                             803           ,05             ,050              ,266             1,266
Segment profits                                           39,864           48,833            48,650            6,675            74,934
Finance income                                              2,55           4,876             3,036              3,247             2,958
Finance expenses                                           (8,853)        (0,39)          (4,33)            (6,90)           (1,747)
Share of profit of associated companies                       696             842             ,4              ,907             1,946
Profit before exceptional items, impairment
    charge and fair value adjustments                     34,222           44,60            38,784            59,928            78,091
Gain on disposal of subsidiary companies                       –              307            86,77                 –                 –	
Impairment write-back/(charge) on hotel
    properties/property under development                  2,087                 –                 –                 –          (37,000)
Fair value gain/(loss) on investment properties                –                 –                 –            49,267            (9,840)
Profit before income tax                                  36,309           44,467           25,50           09,95            31,251
Income tax credit/(expense)                                2,233            (7,403)           (8,898)          (2,87)         (15,829)
Net profit                                                38,542           37,064           6,603             88,008           15,422
Attributable	to:
Equity holders of the Company                             36,024           33,89           4,2            84,977            12,818
Minority interests                                         2,58            3,245             2,392             3,03             2,604
                                                          38,542           37,064           6,603            88,008            15,422
Group	Balance	Sheets
Available-for-sale financial assets                        ,256           7,30            20,892            2,633            12,968
Associated companies                                       ,376           2,464            2,897            0,566            12,506
Investment properties                                    34,3          33,98           8,677           65,309           155,469
Property, plant and equipment                            569,905          555,094           464,757           502,644           478,171
Property under development                                      –                –                 –                 –          237,059
Intangibles                                                3,49*          4,55            4,45            4,35            28,026
Other assets                                                    –                –                 –            7,096                 –
Deferred income tax assets                                  6,500            8,02             8,395             4,353             2,014
Net current assets, excluding borrowings                   48,630           33,285            40,26          95,423              6,960
Non-current liabilities, excluding borrowings             (35,069)         (32,822)          (35,424)          (5,265)          (52,107)
Net assets employed                                      760,202          74,929           644,735           934,074           881,066
Share capital                                            27,623          27,623           27,623           557,333           557,333
Reserves                                                  48,570           48,800            47,546            3,768             (9,079)
Retained earnings                                        25,063          50,406           248,67           22,736           195,554
Interests of the equity holders of the Company           39,256          46,829           53,786           80,837           743,808
Minority interests                                        34,884           22,95            24,08            27,949            23,463
Borrowings                                               334,062          302,905           06,84           04,288           113,795
                                                         760,202          74,929           644,735           934,074           881,066
* Including negative goodwill


38              Hotel Plaza Limited Annual Report 2008                     Our Financial Review
                                                                        2004               2005                2006                2007                2008
Per	ordinary	share
Basic earnings (cents)
– before exceptional items, impairment
   charge and fair value adjustments                                    8.48               8.38                6.87              .3                 9.65	
– after exceptional items, impairment charge
   and fair value adjustments                                           9.0               8.45              28.55               2.22                 2.14	
Dividends	paid
– Gross (cents)                                                         2.00               3.00                5.00              40.00                 5.00	
– Cover (times)                                                         5.63               3.52                7.4               0.65                 0.43	
Net	tangible	asset	backing	per	share
– before accounting for surplus on revaluation
   of hotel properties                                                  0.94               .0                .25                .3                1.19	
– after accounting for surplus on revaluation
   of hotel properties                                                  .30               .68                2.4                2.7                1.98	
Ratio
Gearing ratio                                                           0.86               0.73                0.2                0.3                0.15	
Note: Basic earnings per ordinary share is calculated by reference to the weighted average number of ordinary shares in issue during the year.




 Simplified Group Financial Position




 Total	Assets	Owned                                                                Total	Liabilities	Owed	and	Capital	Invested
                                            								2008         2007                                                         								2008         2007
                                               $m        %     $m     %                                                          $m        %     $m     %

     Other assets and cash                     80       8     258    24               Other liabilities                         24       3        8     2
     Available-for-sale                                                               Deferred income tax liabilities           49       5        47     4
     financial assets                         13       1       22     2               Trade and other payables                  52       5        49     4
     Associated companies                     13       1       0                    Borrowings                               114      11       04    0
     Investment properties                   155      15      65    6               Minority interests                        23       2        28     3
     Property, plant and equipment           478      48      503    48               Interests of the shareholders            744      74       802    77
     Property under development              237      24        –     –                                                      1,006     100     ,048   00
     Other non-current assets                  –       –       7     7
     Intangibles & deferred income
     tax assets                               30       3        9     2
                                           1,006     100     ,048   00




Hotel Plaza Limited Annual Report 2008                                          Our Financial Review                                                         39
Our Financial Review
Segmental Performance Analysis

Total Revenue by Business Segment
                                   											2008                2007
                                                                                  Segmental Performance
                                       $’000         %        $’000       %       Analysis 2008
Hotel ownership                   296,556         94.0     277,202     95.6
Property investments               13,135          4.2      ,69      4.0
                                                                                                Total Revenue by
Hotel management services           4,268          1.4           –        –                     Business Segment
Investments                         1,266          0.4       ,266      0.4                     	
                                                                                                 	 Hotel	Ownership
                                  315,225        100.0     290,59    00.0                      	 Property	Investments	
                                                                                                 	 Hotel	Management		
                                                                                                	 Services	
                                                                                                 		 Investments	
Total Assets by Business Segment
                                   											2008                2007
                                       $’000         %        $'000       %

Hotel ownership                   764,481         76.0      703,508    67.
                                                                                                Total Assets by
Property investments              157,862         15.7      68,42    6.
                                                                                                Business Segment
Hotel management services          25,545          2.5            –       –                     	
Investments                        12,968          1.3       2,633     2.                      	 Hotel	Ownership
                                                                                                 	 Property	Investments
Associated companies               12,506          1.2       0,566     .0                      	 Hotel	Management		
Unallocated assets                 32,374          3.3      44,006    3.7                     	 Services
                                                                                                 	 Investments	     	
                                1,005,736        100.0    ,048,25   00.0                      	 Associated	Companies
                                                                                                 	 Unallocated	Assets


Total Revenue by Geographical Segment
                                   											2008                2007                          Total Revenue by
                                       $’000         %        $'000       %                     Geographical Segment
                                                                                                	
Singapore                          99,980         31.7      83,848     28.8                         	   Singapore	
                                                                                                    	   Australia
Australia                         104,025         33.0      96,643     33.3                         	   Vietnam
Vietnam                            41,198         13.1      37,068     2.8                         	   Malaysia
Malaysia                           40,176         12.7      4,352     4.3                         	   China	 	
                                                                                                    	   Myanmar
China                              22,966          7.3      25,682      8.9                         	   Others
Myanmar                             5,986          1.9       5,566      .9
Others                                894          0.3           –        –
                                  315,225        100.0     290,59    00.0
                                                                                                Total Assets by
                                                                                                Geographical Segment
                                                                                                	
Total Assets by Geographical Segment                                                                	   Singapore	
                                                                                                    	   Australia
                                   											2008                2007                              	   Vietnam
                                       $’000         %        $'000       %                         	   Malaysia
                                                                                                    	   China	 	
                                                                                                    	   Myanmar
Singapore                         559,657         55.6	     568,93    54.4                         	   Others
Australia                         161,581         16.1      205,899    9.6
Vietnam                            67,002          6.7       67,46     6.4
Malaysia                          108,841         10.8      5,25    .0
China                              92,377          9.2       80,862     7.7
Myanmar                            10,255          1.0        9,90     0.9
Others                              6,023          0.6            –       –
                                1,005,736        100.0    ,048,25   00.0




40          Hotel Plaza Limited Annual Report 2008                    Our Financial Review
Our Financial Review
Group Value-added Statement
for the year ended 3 December 2008




                                                                                            2008	       2007
                                                                                           $'000       $'000

Sale of goods and services                                                               313,959	    288,893
Purchases of materials and services                                                     (118,118)   (06,728)
Gross	value	added                                                                       195,841	    82,65
Share of profit of associated companies                                                    1,946	     ,907
Income from investments, interest and others                                               4,323	     3,974
Impairment charge on property under development                                          (37,000)         –
Fair value (loss)/gain on investment properties                                           (9,840)    49,267
Exchange gain                                                                                959        539
Total	value	added                                                                       156,229	    237,852
Distribution	of	value	added:
To	employees	and	directors	–
Employees' salaries, wages and benefits                                                  89,826	     86,402
Directors' remuneration                                                                   1,315       ,245
                                                                                         91,141	     87,647
To	government	–
Corporate and property taxes                                                             20,903	     9,940
To	providers	of	capital	–
Interest paid                                                                             1,747	      6,90
Net dividend to shareholders                                                             30,000	    3,200
Net dividend attributable to minority shareholders                                          406	        40
                                                                                         32,153	    38,5
Total	value-added	distributed                                                           144,197	    246,098
Retained	in	the	business:
Depreciation                                                                             29,214	      29,09
Retained earnings                                                                        24,269      (9,524)
                                                                                         53,483	     (62,45)
Non-production	cost	and	income
Bad debts                                                                                    107	       389
Income from investments, interest and others                                               4,323      3,974
Impairment charge on property under development                                          (37,000)         –
Fair value (loss)/gain on investment properties                                           (9,840)    49,267
Exchange gain                                                                                959        539
                                                                                         (41,451)    54,69
                                                                                        156,229	    237,852

Productivity	ratios:                                                                           $           $
Value added per employee                                                                 53,450      5,387
Value added per $ employment costs                                                         2.15        2.08
Value added per $ investment in fixed assets (before depreciation)
– at cost                                                                                   0.25        0.23
– at valuation                                                                              0.21        0.9
Value added per $ net sales                                                                 0.62        0.63




Hotel Plaza Limited Annual Report 2008                           Our Financial Review                      4
Our Milestones



     April                         + Unveiling of Orchid Club floors comprising 78 new rooms and
                                     suites on three special elevator-access only executive floors
                                     in the new wing with a spacious Orchid Club Lounge and
                                     Zen-inspired Atrium Courtyard at Parkroyal Kuala Lumpur,
                                     Malaysia.




     July                          + Appointment of Amedeo Patrick Imbardelli as
                                     President & CEO for Hotel Plaza Limited.




     October                       + Acquisition of Pan Pacific operations from UOL Group.




     December                      + Extension work to add 99 guest rooms at Sheraton Suzhou
                                     Hotel & Towers was completed.




42           Hotel Plaza Limited Annual Report 2008       Our Milestones
Our Awards & Accolades 2008


 January	                                August	                                     December	
 + Pan Pacific Singapore was             + Sari Pan Pacific Jakarta was              + Pan Pacific Kuala Lumpur
   awarded one of Singapore’s Top          awarded 1st Runner-up at the                International Airport won World’s
   Hotels by Condé Nast Traveler           Indonesian Culinary Festival.               Leading Airport Hotel awarded by
   Annual Gold List.                                                                   World Travel Awards.
                                                                                     + Pan Pacific Singapore won World’s
                                         September	                                    Leading Business Hotel awarded
 March	                                  + Keyaki Japanese Restaurant at               by World Travel Awards.
 + Keyaki Japanese Restaurant at           Sari Pan Pacific Jakarta was              + Keyaki Japanese Restaurant
   Pan Pacific Bangkok was named           named Jakarta’s Best Dining                 and Hai Tien Lo at Pan Pacific
   Thailand’s Best Restaurant by           Restaurant by Indonesia Tatler.             Singapore were rated
   Thailand Tatler Magazine.                                                           Singapore’s Best Restaurants
                                         + Parkroyal Kuala Lumpur, Malaysia
                                           won the Customer’s Preferred                by SingaporeTatler.
                                           Choice Award from leading                 + Si Chuan Dou Hua at Parkroyal
 April                                     online accommodation website,               Kuala Lumpur, Malaysia received
 + Pan Pacific Kuala Lumpur                Wotif.com.                                  the Award of Excellence for
   International Airport won Asia’s                                                    Best Value Menu category at
   Best Airport Hotel awarded by                                                       the Malaysia International
   Business Asia Magazine, and           October	                                      Gourmet Festival.
   Asia’s Leading Airport Hotel
                                         + Pan Pacific Vancouver won
   awarded by World Travel Awards.
                                           Condé Nast Traveler’s Award in
                                           the Annual Gold List of World’s
                                           Best Places to Stay, and Top 10
 May	                                      Hotels in Canada.
 + Keyaki Japanese Restaurant            + Pan Pacific Manila was awarded
   at Pan Pacific Singapore was            Top 100 Hotels Reader’s
   ranked one of Singapore’s top           Choice Awards (ranked 44th)
   50 restaurants by Singapore             by Condé Nast Traveler.
   Business Review.
                                         + Pan Pacific Singapore and
                                           Parkroyal Hotels & Resorts
                                           received a Patron of the
 June	                                     Arts Award from the National
 + Pan Pacific Manila won Philippines’     Arts Council in Singapore.
   Leading Business Hotel awarded
                                         + Pan Pacific Seattle received the
   by World Travel Awards.
                                           Four Diamond Award from the
 + Pan Pacific Singapore won Asia’s        American Automobile Association.
   Leading Business Hotel awarded
   by World Travel Awards.
 + Hai Tien Lo, Keyaki Japanese          November	
   Restaurant and Global Kitchen at      + Parkroyal on Beach Road and
   Pan Pacific Singapore were rated        Parkroyal on Kitchener Road won
   Singapore’s Top Restaurants by          the Excellent Service Awards given
   Wine & Dine Magazine.                   by the Singapore Hotel Association.




Hotel Plaza Limited Annual Report 2008                       Our Awards & Accolades 2008                                   43
Financial Contents




45  Report of the Directors
48  Statement by Directors
49  Independent Auditor’s Report
50  Income Statements
5  Balance Sheets
52  Consolidated Statement of Changes in Equity
53  Statement of Changes in Equity
54  Consolidated Cash Flow Statement
55  Notes to the Financial Statements
06 Corporate Governance Report
4 Interested Person Transactions and
    Material Contracts
5 Shareholding Statistics
6 Share Price and Turnover
7 Notice of Annual General Meeting
    Proxy Form



44           Hotel Plaza Limited Annual Report 2008
Report of the Directors
for the financial year ended 31 December 2008




The directors have pleasure in submitting this report to the members together with the audited financial statements of the
Company and of the Group for the financial year ended 31 December 2008.

Directors
The directors of the Company in office at the date of this report are as follows:
Wee Cho Yaw                       –    Chairman
Gwee Lian Kheng                   –    Group Chief Executive
Alan Choe Fook Cheong
Lim Kee Ming
Wee Ee Chao
Low Weng Keong
Wee Wei Ling
James Koh Cher Siang
Wee Ee Lim

Arrangements to enable directors to acquire shares and debentures
Neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose object was to
enable the directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company
or any other body corporate.

Directors’ interests in shares or debentures
(a) The directors holding office at 31 December 2008 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, as recorded in
    the register of directors’ shareholdings, were as follows:

                                                                     Holdings registered in           Holdings in which a director
                                                                       name of director              is deemed to have an interest
                                                                At 31.12.2008        At 1.1.2008    At 31.12.2008      At 1.1.2008

    Hotel Plaza Limited (“HPL”)
    – Ordinary Shares
      Wee Cho Yaw                                                          –                  –     489,440,652* 489,440,652*
      Gwee Lian Kheng                                                171,000            171,000         225,000      225,000
      Lim Kee Ming                                                    15,000             15,000               –            –
      Wee Ee Chao                                                          –                  –         892,500      892,500
      Wee Wei Ling                                                    27,000             27,000          67,500       67,500
    UOL Group Limited (“UOL”)
    – Ordinary Shares
       Wee Cho Yaw                                                 3,388,151*        3,388,151*     228,818,442* 227,768,442*
      Gwee Lian Kheng                                                388,000           388,000                –            –
      Lim Kee Ming                                                   348,477           138,557          532,277      322,357
      Wee Ee Chao                                                     30,748*           30,748*      82,820,597* 80,820,597*
      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                                                600,000            500,000                 –                –
      Wee Wei Ling                                                   126,000            126,000                 –                –

    *   Includes shares registered in the name of nominees.




Hotel Plaza Limited Annual Report 2008                             Report of the Directors                                       45
Report of the Directors
for the financial year ended 31 December 2008




(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 2009, were the same as those at
    31 December 2008.
(c) Messrs Wee Cho Yaw, Wee Ee Chao and Wee Ee Lim are each deemed to have an interest in all the shares held by
    Kheng Leong Company (HK) Limited in the following partially owned subsidiaries of the Group, by virtue of their having an
    interest of not less than 20% each in the issued share capital of Kheng Leong Company (HK) Limited:

                                                                                                     Holdings in which a director
                                                                                                    is deemed to have an interest
                                                                                                   At 31.12.2008      At 1.1.2008

     Success Venture Investments (Australia) Ltd
     – Ordinary Shares of US$1 each                                                                   2,059,500       2,059,500
     Success City Pty Limited
     – Ordinary Shares                                                                                1,720,834       1,720,834

(d) Save as disclosed above, none of the other directors holding office at 31 December 2008 has any interest in the ordinary
    shares of the Company, the ordinary shares and Executives’ Share Options of UOL and the ordinary shares of any other
    related corporations of the Company, as recorded in the register of directors’ shareholdings.

Directors’ contractual benefits
Since the end of the previous financial year, no director has received or become entitled to receive a benefit by reason of a
contract made by the Company or a related corporation with the director or with a firm of which he is a member or with a
company in which he has a substantial financial interest, except as disclosed in the accompanying financial statements and in
this report, and except that Mr Gwee Lian Kheng has an employment relationship with the holding company and has received
remuneration in that capacity.

Share options
There were no options granted in respect of unissued ordinary shares of the Company or any subsidiary during the financial year.
No shares have been issued during the financial year by virtue of the exercise of options to take up unissued ordinary shares of
the Company or any subsidiary.
There were no unissued ordinary shares of the Company or any subsidiary under option at the end of the financial year.

Audit committee
The Audit Committee comprises three members, all of whom are independent and non-executive Directors. The Audit Committee
members are:
     Lim Kee Ming                  –    Chairman
     Alan Choe Fook Cheong
     Low Weng Keong
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 internal audit
procedures and proposals for improvements in internal controls, the independent auditor’s report on the weaknesses of internal
accounting controls arising from the statutory audit, the cost effectiveness, independence and objectivity of the external auditors
and interested persons transactions.
In performing the functions, the Audit Committee has met with the internal and external auditors and reviewed the overall scope
of the internal and external audits and the assistance given by Management to the auditors.
The Audit Committee has nominated PricewaterhouseCoopers LLP for re-appointment as independent auditor of the Company
at the forthcoming Annual General Meeting.




46           Hotel Plaza Limited Annual Report 2008                Report of the Directors
Report of the Directors
for the financial year ended 31 December 2008




Independent auditor
The independent auditor, PricewaterhouseCoopers LLP, has expressed its willingness to accept re-appointment.


On behalf of the directors




Wee Cho Yaw                                                   Gwee Lian Kheng
Chairman                                                      Director

24 February 2009




Hotel Plaza Limited Annual Report 2008                        Report of the Directors                          47
Statement by Directors
for the financial year ended 31 December 2008




In the opinion of the directors,
(a) the income statements, balance sheets and statements of changes in equity of the Company and of the Group and the
    consolidated cash flow statement of the Group as set out on pages 50 to 105 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 2008, of the results of the business and the
    changes in equity 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.


On behalf of the directors




Wee Cho Yaw                                                      Gwee Lian Kheng
Chairman                                                         Director

24 February 2009




48           Hotel Plaza Limited Annual Report 2008              Statement by Directors
Independent Auditor’s Report
to the members of Hotel Plaza Limited




We have audited the accompanying financial statements of Hotel Plaza Limited (the “Company”) and its subsidiaries (the “Group”)
set out on pages 50 to 105 for the financial year ended 31 December 2008, which comprise the income statements, balance
sheets and statement of changes in equity of the Company and of the Group and the consolidated cash flow statement of the
Group, and a summary of the significant accounting policies and other explanatory notes.

Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with the
provisions of the Singapore Companies Act (Cap. 50) (the “Act”) and Singapore Financial Reporting Standards. This responsibility
includes:
(a) devising and maintaining a system of internal accounting control sufficient to provide a reasonable assurance that assets are
    safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are
    recorded as necessary to permit the preparation of true and fair profit and loss accounts and balance sheets and to maintain
    accountability of assets;
(b) selecting and applying appropriate accounting policies; and
(c) making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our 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 as to whether the financial statements are free from material misstatement.
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 material misstatement of
the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion,
(a) the income statements, balance sheets and statements of changes in equity of the Company and of the Group and the
    consolidated cash flow statement of the Group are properly drawn up in accordance 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 2008, the results and the changes in equity of the Company and of the Group, and the cash flows
    of the Group for the financial year ended on that date; and
(b) the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated in
    Singapore of which we are the auditor, have been properly kept in accordance with the provisions of the Act.




PricewaterhouseCoopers LLP
Public Accountants and Certified Public Accountants

Singapore, 24 February 2009




Hotel Plaza Limited Annual Report 2008                            Independent Auditor’s Report                                 49
Income Statements
for the financial year ended 31 December 2008




                                                                             The Group                 The Company
                                                                          2008          2007         2008           2007
                                                         Notes           $’000         $’000        $’000          $’000

Revenue                                                     4         315,225         290,159      56,994        56,293
Cost of sales                                                        (153,970)       (149,040)    (22,363)      (23,257)
Gross profit                                                           161,255         141,119      34,631        33,036
Other income
– Finance income                                            4           2,958           3,247      8,771          9,457
– Miscellaneous income                                      4           1,058           1,137        558            700
Expenses
– Marketing and distribution                                          (14,364)        (12,793)     (1,345)       (1,215)
– Administrative                                                      (28,415)        (23,895)     (6,788)       (5,924)
– Finance                                                   8          (1,747)          (6,901)    (2,489)       (7,191)
– Other operating                                                     (44,600)        (43,893)     (6,438)       (6,311)
Share of profit of associated companies                     16           1,946           1,907           –             –
                                                                       78,091         59,928      26,900         22,552
Impairment charge on property under development            20         (37,000)               –          –             –
Other losses – net                                          7                –               –    (33,400)         (204)
Fair value (loss)/gain on investment properties            18           (9,840)       49,267       (9,840)       49,267
Profit/(loss) before income tax                                         31,251        109,195      (16,340)       71,615
Income tax expense                                          9         (15,829)        (21,187)     (3,260)      (13,915)
Net profit/(loss)                                                       15,422         88,008      (19,600)       57,700
Attributable to:
Equity holders of the Company                                          12,818         84,977      (19,600)       57,700
Minority interests                                                      2,604          3,031            –             –
                                                                       15,422         88,008      (19,600)       57,700
Earnings per share attributable to equity holders
  of the Company (expressed in cents per share)
– Basic and diluted                                        10             2.14          21.22




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

50              Hotel Plaza Limited Annual Report 2008           Income Statements
Balance Sheets
as at 31 December 2008




                                                                             The Group               The Company
                                                                        2008              2007      2008            2007
                                                       Notes           $’000             $’000     $’000           $’000

Assets
Current assets
Cash and bank balances                                    11         49,085         230,518        1,124     190,022
Trade and other receivables                               12         23,330          19,989       25,579       4,082
Inventories                                               13          2,839           2,969          354         362
Other assets                                              14          4,269           4,733          282         232
                                                                     79,523         258,209       27,339     194,698
Non-current assets
Trade and other receivables                               12          4,264           4,283      354,622     243,668
Available-for-sale financial assets                        15         12,968          21,633       12,968      21,614
Associated companies                                      16          8,242           6,283        9,820       6,220
Subsidiaries                                              17              –               –      197,952     136,727
Investment properties                                     18        155,469         165,309      155,469     165,309
Property, plant and equipment                             19        478,171         502,644       39,785      41,829
Property under development                                20        237,059               –            –           –
Intangibles                                               21         28,026          14,315          304         404
Other assets                                              14              –          71,096            –      71,096
Deferred income tax assets                                28          2,014           4,353            –           –
                                                                    926,213         789,916      770,920     686,867
Total assets                                                      1,005,736       1,048,125      798,259     881,565
Liabilities
Current liabilities
Trade and other payables                                  22         54,755          50,050       10,950      10,619
Current income tax liabilities                             9         17,808          12,736        8,490       5,793
Borrowings                                                23         12,778          27,783        9,275           –
                                                                     85,341          90,569       28,715      16,412
Non-current liabilities
Derivative financial instruments                           24            316               –            –           –
Borrowings                                                23        101,017          75,605            –      72,558
Advances from holding company                             25              –             900            –         900
Loans from subsidiaries                                   26              –               –      117,477      79,395
Rental deposits                                                         820           2,070          530       1,927
Provision for retirement benefits                          27          2,112           2,035            –           –
Deferred income tax liabilities                           28         48,859          47,160       32,882      33,472
                                                                    153,124         127,770      150,889     188,252
Total liabilities                                                   238,465         218,339      179,604     204,664
Net Assets                                                          767,271         829,786      618,655     676,901
Equity
Capital and reserves attributable
  to the equity holders of Company
Share capital                                             29        557,333         557,333      557,333     557,333
Reserves                                                  30         (9,079)         31,768       26,817      35,463
Retained earnings                                                   195,554         212,736       34,505      84,105
                                                                    743,808         801,837      618,655     676,901
Minority interests                                                   23,463          27,949            –           –
Total Equity                                                        767,271         829,786      618,655     676,901

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

Hotel Plaza Limited Annual Report 2008                         Balance Sheets                                          51
Consolidated Statement of Changes in Equity
for the financial year ended 31 December 2008




                                                       Attributable to equity holders of the Company
                                                         Share                    Retained                        Minority       Total
                                                        capital     Reserves       earnings        Total         interests     equity
                                               Notes      $’000         $’000         $’000       $’000              $’000      $’000

Balance at 1 January 2008                              557,333       31,768       212,736        801,837          27,949     829,786

Fair value loss on available-for-sale
   financial assets                             30(a)         –       (8,646)             –         (8,646)             –       (8,646)
Fair value loss on cash flow hedge              30(d)         –         (259)             –           (259)             –         (259)
Currency translation differences               30(c)         –      (31,942)             –        (31,942)        (6,684)     (38,626)
Net loss recognised directly in equity                       –      (40,847)             –        (40,847)        (6,684)     (47,531)
Net profit for the financial year                              –            –         12,818         12,818          2,604       15,422
Total recognised (losses)/gains
   for the financial year                                     –      (40,847)        12,818        (28,029)        (4,080)     (32,109)
Dividends                                         31         –            –       (30,000)       (30,000)           (406)    (30,406)
Balance at 31 December 2008                            557,333       (9,079)      195,554        743,808          23,463     767,271

Balance at 1 January 2007                              217,623       27,876       258,959        504,458          24,108     528,566

Fair value gains on available-for-sale
   financial assets                             30(a)         –          741               –           741               –        741
Effects of changes in tax rate
– Singapore                                    30(b)         –          313               –           313               –        313
– Malaysia                                     30(b)         –          524               –           524               –        524
Net fair value gain arising from the
   transfer of owner-occupied
   property to investment property             30(b)         –          545              –           545               –         545
Currency translation differences               30(c)         –        1,769              –         1,769           1,220       2,989
Net gain recognised directly in equity                       –        3,892              –         3,892           1,220       5,112
Net profit for the financial year                              –            –         84,977        84,977           3,031      88,008
Total recognised gains
   for the financial year                                     –        3,892         84,977        88,869           4,251      93,120
Issue of shares                                   29   340,000            –             –        340,000               –      340,000
Share issue expenses                              29      (290)           –             –           (290)              –         (290)
Dividends                                         31         –            –      (131,200)      (131,200)           (410)    (131,610)
Balance at 31 December 2007                            557,333       31,768       212,736        801,837          27,949      829,786

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.

52           Hotel Plaza Limited Annual Report 2008                Consolidated Statement of Changes in Equity
Statement of Changes in Equity
for the financial year ended 31 December 2008




                                                                         Share                      Retained        Total
                                                                        capital        Reserves     earnings      equity
                                                        Notes            $’000            $’000        $’000       $’000

Balance at 1 January 2008                                            557,333             35,463      84,105     676,901

Fair value loss on available-for-sale financial assets   30(a)                –            (8,646)          –      (8,646)
Net loss recognised directly in equity                                       –            (8,646)          –      (8,646)
Net loss for the financial year                                               –                 –     (19,600)    (19,600)
Total recognised losses for the financial year                                –            (8,646)    (19,600)    (28,246)
Dividends                                                 31               –                  –      (30,000)   (30,000)
Balance at 31 December 2008                                          557,333             26,817       34,505    618,655

Balance at 1 January 2007                                            217,623             33,864     157,605     409,092

Fair value gain on available-for-sale financial assets   30(a)                 –              741           –        741
Effect of change in Singapore tax rate                  30(b)                 –              313           –        313
Net fair value gain arising from the transfer of
   owner-occupied property to investment property       30(b)                –              545           –         545
Net gain recognised directly in equity                                       –            1,599           –       1,599
Net profit for the financial year                                              –                –      57,700      57,700
Total recognised gains for the financial year                                 –            1,599      57,700      59,299
Issue of shares                                           29         340,000                  –            –     340,000
Share issue expenses                                      29            (290)                 –            –        (290)
Dividends                                                 31               –                  –     (131,200)   (131,200)
Balance at 31 December 2007                                          557,333             35,463       84,105     676,901

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.

Hotel Plaza Limited Annual Report 2008                          Statement of Changes in Equity                         53
Consolidated Cash Flow Statement
for the financial year ended 31 December 2008




                                                                                                            2008         2007
                                                                                              Notes        $’000        $’000

Cash flows from operating activities
Net profit                                                                                                15,422       88,008
Adjustments for:
– Income tax expense                                                                                     15,829       21,187
– Depreciation and amortisation                                                                          29,214       29,209
– Property, plant and equipment written off and net loss on disposals                                     1,053         2,170
– Fair value loss/(gain) on investment properties                                                         9,840      (49,267)
– Interest income                                                                                        (1,999)       (2,708)
– Dividend income                                                                                        (1,266)       (1,266)
– Interest expense                                                                                        1,747         6,901
– Net provision for retirement benefits                                                                      308           238
– Share of profit of associated companies                                                                 (1,946)       (1,907)
– Unrealised translation (gain)/loss                                                                     (9,641)        1,373
– Impairment charge on property under development                                                        37,000             –
– Loss on disposal of available-for-sale financial assets                                                      4             –
Operating cash flow before working capital changes                                                        95,565       93,938
Change in operating assets and liabilities, net of effects from acquisition of subsidiaries
– Inventories                                                                                               130            (46)
– Receivables                                                                                             6,740        (5,364)
– Payables                                                                                               (1,078)        1,701
– Rental deposits                                                                                           576           397
Cash generated from operations                                                                          101,933       90,626
Income tax paid                                                                                          (9,537)       (8,048)
Retirement benefits paid                                                                                    (136)           (73)
Release of fixed deposits pledged as security                                                                  –         2,837
Net cash from operating activities                                                                       92,260       85,342
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired                                                        (15,161)           –
Repayment of loans from associated companies                                                                   –        3,426
Net proceeds from sale of available-for-sale financial assets                                                  15            –
Net proceeds from disposal of property, plant and equipment                                                   63        1,060
Purchase of investment property and property, plant and equipment                                        (38,629)     (64,041)
Payment for purchase of land parcel                                                                     (189,695)     (71,096)
Expenditure on property under development                                                                (11,488)           –
Interest received                                                                                          1,999        2,708
Dividend received                                                                                          1,266        1,266
Net cash used in investing activities                                                                   (251,630)   (126,677)
Cash flows from financing activities
Proceeds from issue of shares, net of expenses                                                                 –     339,710
Proceeds from borrowings                                                                                 177,128       76,034
Repayment of borrowings                                                                                 (163,518)     (71,260)
Advances from holding company                                                                                  –     200,003
Repayments to holding company                                                                               (900)   (208,364)
Expenditure on long term borrowings                                                                         (675)            –
Interest paid                                                                                             (3,306)       (8,065)
Dividends paid to shareholders of Hotel Plaza Limited                                                    (30,000)   (131,200)
Dividends paid to minority shareholders of subsidiaries                                                     (406)         (410)
Net cash (used in)/from financing activities                                                              (21,677)    196,448
Net (decrease)/increase in cash and cash equivalents                                                    (181,047)   155,113
Cash and cash equivalents at the beginning of the financial year                                          229,995     74,882
Cash and cash equivalents at the end of the financial year                                      11(a)      48,948    229,995

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

54           Hotel Plaza Limited Annual Report 2008                  Consolidated Cash Flow Statement
Notes to the Financial Statements
for the financial year ended 31 December 2008




These notes form an integral part of and should be read in conjunction with the accompanying financial statements.

1 General information
    Hotel Plaza Limited (the “Company”) is incorporated and domiciled in Singapore and its shares are publicly traded on the
    Singapore Exchange. The address of its registered office is as follows:
       101 Thomson Road
       #33-00 United Square
       Singapore 307591
    The principal activities of the Company are those of an hotelier, property owner and the holding of investments. The principal
    activities of its subsidiaries are set out in Note 17.

2 Significant accounting policies
    2.1    Basis of preparation
           These financial statements have been prepared in accordance with Singapore Financial Reporting Standards (“FRS”).
           The financial statements have been prepared under the historical cost convention, except as disclosed in the accounting
           policies below.
           The preparation of financial statements in conformity with FRS requires management to exercise its judgement in the
           process of applying the Group’s accounting policies. It also requires the use of certain key accounting estimates and
           assumptions. Areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates
           are significant to the financial statements, are disclosed in Note 3.

           Interpretations and amendments to published standards effective in 2008
           On 1 January 2008, the Group adopted the new or amended FRS and Interpretations to FRS (“INT FRS”) that are
           mandatory for application from that date. Changes to the Group’s accounting policies have been made as required, in
           accordance with the transitional provisions in the respective FRS and INT FRS.
           The following are the new or amended FRS and INT FRS that are relevant to the Group:
           INT FRS 111         Group and Treasury Share Transactions
           The adoption of the above INT FRS did not result in any substantial changes to the Group’s accounting policies nor
           any significant impact on these financial statements.

    2.2    Revenue recognition
           Revenue for the Group comprises the fair value of the consideration received or receivable for the sale of 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.
           The Group recognises revenue when the amount of revenue and related cost can be reliably measured, when it is
           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) Revenue from hotel ownership, hotel management services and other services rendered
               Revenue from the rental of hotel rooms and other facilities is recognised when the services are rendered. Revenue
               from the sale of food and beverage is recognised when the goods are delivered to the customer. Revenue from
               management services and other services rendered is recognised when the services are rendered.

           (b) Interest income
               Interest income is recognised using the effective interest method.

           (c) Dividend income
               Dividend income is recognised when the right to receive payment is established.

           (d) Rental income
               Rental income from operating leases (net of any incentives given to the lessees) on investment properties and
               property, plant and equipment is recognised on a straight-line basis over the lease term.




Hotel Plaza Limited Annual Report 2008                             Notes to the Financial Statements                            55
Notes to the Financial Statements
for the financial year ended 31 December 2008




2 Significant accounting policies (continued)
     2.3   Group accounting
           (a) Subsidiaries
              Subsidiaries are entities over which the Group has power to govern the financial and operating 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.
              The purchase method of accounting is used to account for the acquisition of subsidiaries. The cost of an acquisition
              is measured as the fair value of the assets given, equity instruments issued or liabilities incurred or assumed at
              the dates of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities
              and contingent liabilities assumed in a business combination are measured initially at their fair value on the date of
              acquisition, irrespective of the extent of minority interest. Please refer to the paragraph “Intangibles - Goodwill” for
              the accounting policy on goodwill on acquisition of subsidiaries.
              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.
              In preparing the consolidated financial statements, transactions, balances and unrealised gains on transactions
              between group companies are eliminated. Unrealised losses are also eliminated but are considered an impairment
              indicator of the assets transferred. Accounting policies of subsidiaries have been changed where necessary to
              ensure consistency with the policies adopted by the Group.
              Minority interests are that part of the net results of operations and of net assets of a subsidiary attributable to the
              interests which are not owned directly or indirectly by the Group. They are measured at the minorities’ share of fair
              value of the subsidiaries’ identifiable assets and liabilities at the date of acquisition by the Group and the minorities’
              share of changes in equity since the date of acquisition, except when the minorities’ share of losses in a subsidiary
              exceeds its interests in the equity of that subsidiary. In such cases, the excess and further losses applicable to the
              minorities are attributed to the equity holders of the Company, unless the minorities have a binding obligation to,
              and are able to, make good the losses. When that subsidiary subsequently reports profits, the profits applicable
              to the minority interests are attributed to the equity holders of the Company until the minorities’ share of losses
              previously absorbed by the equity holders of the Company are fully recovered.
              Please refer to the paragraph “Investments in subsidiaries and associated companies” for the accounting policy on
              investments in subsidiaries in the separate financial statements of the Company.

           (b) Transactions with minority interests
              The Group applies a policy of treating transactions with minority interests as transactions with parties external to
              the Group. Disposals to minority interests result in gains and losses for the Group that are recognised in the income
              statement. Purchases from minority interests result in goodwill, being the difference between any consideration
              paid and the Group’s incremental share of the carrying value of identifiable net assets of the subsidiary.

           (c) Associated companies
              Associated companies are entities over which the Group has significant influence, but not control, and 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 statements using the equity method of
              accounting less impairment losses.
              Investments in associated companies are initially recognised at cost. The cost of an acquisition is measured at the
              fair value of the assets given, equity instruments issued or liabilities incurred or assumed at the date of exchange,
              plus costs directly attributable to the acquisition.
              In applying the equity method of accounting, the Group’s share of its associated companies’ post-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 are adjusted against the carrying amount of
              the investment. When the Group’s share of losses in an associated company equals or exceeds its interest in
              the associated company, including any other 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.




56           Hotel Plaza Limited Annual Report 2008                  Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




2 Significant accounting policies (continued)
    2.3    Group accounting (continued)
           (c) Associated companies (continued)
               Unrealised gains on transactions between the Group and its associated companies are eliminated to the extent
               of the Group’s interest in the associated companies. Unrealised losses are also eliminated 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 policies adopted by the Group.
               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.

    2.4    Property, plant and equipment
           (a) Measurement
               (i) Land and buildings
                   Land and buildings are initially recognised at cost. Certain leasehold land and buildings comprising hotel
                   properties are subsequently stated at valuation carried out 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 be recognised in the financial statements but would be disclosed for information.
                   Freehold land is subsequently carried at cost less accumulated impairment losses. Leasehold land and buildings
                   are subsequently carried at cost or valuation less accumulated depreciation and accumulated impairment losses.
               (ii) Properties under development
                    Property under development is carried at cost less accumulated impairment losses until construction is
                    completed at which time depreciation will commence over its estimated useful life.
               (iii) Other property, plant and equipment
                     Plant, equipment, furniture and fittings and motor vehicles are initially recognised at cost and subsequently
                     carried at cost less accumulated depreciation and accumulated impairment losses.
               (iv) Components of costs
                    The cost of an item of property, plant and equipment initially recognised includes its purchase price and any cost
                    that is directly attributable to bringing the asset to the location and condition 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 dismantlement, removal or restoration is also recognised as part of the cost
                    of property, plant and equipment if the obligation for the dismantlement, removal or restoration is incurred as a
                    consequence of either acquiring the asset or using the asset for purpose other than to produce inventories.

           (b) Depreciation
               Freehold land, property under development 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 each property.)
               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:
                                                           Useful lives
               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 each balance sheet date. The effects of any revision are recognised in the income
               statement when the changes arise.

           (c) Subsequent expenditure
               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 associated with the item
               will flow to the Group and the cost of the item can be measured reliably. All other repair and maintenance expenses
               are recognised in the income statement when incurred.

           (d) Disposal
               On disposal of an item of property, plant and equipment, the difference between the disposal proceeds and its
               carrying amount is recognised in the income statement. Any amount in revaluation reserve relating to that asset is
               transferred to retained earnings directly.



Hotel Plaza Limited Annual Report 2008                               Notes to the Financial Statements                              57
Notes to the Financial Statements
for the financial year ended 31 December 2008




2 Significant accounting policies (continued)
     2.5   Intangibles
           (a) Goodwill on acquisitions
              Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the identifiable
              assets, liabilities and contingent liabilities of the acquired subsidiaries and associated companies at the date of
              acquisition.
              Goodwill on subsidiaries is recognised separately as intangible assets and carried at cost less accumulated
              impairment losses.
              Gains and losses on the disposal of the subsidiaries and associated companies include the carrying amount of
              goodwill relating to the entity sold.

           (b) Trademark
              Acquired trademarks are initially recognised at cost and are subsequently carried at cost less accumulated
              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.
              The amortisation period and amortisation method of intangible assets other than goodwill are reviewed at least at
              each balance sheet date. The effects of any revision are recognised in the income statement when the changes
              arise.

     2.6   Borrowing costs
           Borrowing costs are recognised in the income statement using the effective interest method except for those costs
           that are directly attributable to borrowings acquired specifically for the construction or development of properties. The
           actual borrowing costs incurred during the period up to the issuance of the temporary occupation permit less any
           investment income on temporary investments of these borrowings, are capitalised in the cost of the property under
           development.

     2.7   Investment properties
           Investment properties include those land and buildings or portions of buildings that are held for long-term rental yields
           and/or for capital appreciation and land under operating leases that are held for long-term capital appreciation or for
           a currently indeterminate use.
           Investment properties are initially recognised at cost and subsequently carried at fair value, determined annually by
           independent professional valuers on the highest-and-best-use basis. Changes in fair values are recognised in the
           income statement.
           Investment properties are subject to renovations or improvements at regular intervals. The cost of major renovations
           and improvements is capitalised and the carrying amounts of the replaced components are written off to the income
           statement. The cost of maintenance, repairs and minor improvements is charged to the income statement when
           incurred.
           On disposal of an investment property, the difference between the disposal proceeds and the carrying amount is
           recognised in the income statement.

     2.8   Investments in subsidiaries and associated companies
           Investments in subsidiaries and associated companies are carried at cost less accumulated impairment losses in
           the Company’s balance sheet. On disposal of investments in subsidiaries and associated companies, the difference
           between disposal proceeds and the carrying amounts of the investments are recognised in the income statement.




58            Hotel Plaza Limited Annual Report 2008                Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




2 Significant accounting policies (continued)
    2.9    Impairment of non-financial assets
           (a) Goodwill
               Goodwill is tested for impairment annually, and whenever there is indication that the goodwill may be impaired.
               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.
               An impairment loss is recognised when the carrying amount of a CGU, including the goodwill, exceeds the
               recoverable amount of the CGU. Recoverable amount of a CGU is the higher of the CGU’s fair value less cost to
               sell and value-in-use.
               The total impairment loss of a CGU is allocated first to reduce the carrying amount of goodwill allocated to the CGU
               and then to the other assets of the CGU pro rata on the basis of the carrying amount of each asset in the CGU.
               An impairment loss on goodwill is recognised in the income statement and is not reversed in a subsequent
               period.

           (b) Intangibles
               Property, plant and equipment
               Investments in subsidiaries and associated companies
               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 be impaired.
               For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less 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 recoverable amount is determined for the
               CGU to which the asset belongs.
               If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying
               amount of the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount
               and recoverable amount is recognised as an impairment loss in the income statement.
               An impairment loss for an asset other than goodwill is reversed if, and only if, there has been a 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 recoverable amount, provided that
               this amount does not exceed the carrying amount that would have been determined (net of any accumulated
               amortisation or depreciation) had no impairment loss been recognised for the asset in prior years.
               A reversal of impairment loss for an asset other than goodwill is recognised in the income statement.

    2.10 Financial assets
           (a) Classification
               The Group classifies its financial assets in the following categories: loans and receivables and available-for-sale.
               The classification depends on the purpose for which the assets were acquired. Management determines the
               classification of its financial assets at initial recognition.
               (i) Loans and receivables
                   Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
                   quoted in an active market. They are presented as current assets, except for those maturing later than twelve
                   months after the balance sheet date which are presented as non-current assets. Loans and receivables are
                   presented as “trade and other receivables” and “cash and bank balances” and deposits within “other assets”
                   on the balance sheet.
               (ii) Available-for-sale financial assets
                    Available-for-sale financial assets are non-derivatives that are either designated in this category 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 balance sheet date.




Hotel Plaza Limited Annual Report 2008                               Notes to the Financial Statements                              59
Notes to the Financial Statements
for the financial year ended 31 December 2008




2 Significant accounting policies (continued)
     2.10 Financial assets (continued)
          (b) Recognition and derecognition
             Purchases and sales of financial assets are recognised on trade-date – the date on which the Group commits to
             purchase or sell the asset.
             Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or
             have been transferred and the Group has transferred substantially all risks and rewards of ownership.
             On disposal of a financial asset, the difference between the carrying amount and the sale proceeds is recognised
             in the income statement. Any amount in the fair value reserve relating to that asset is transferred to the income
             statement.

          (c) Measurement
             Financial assets are initially recognised at fair value plus transaction costs.
             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.
             Dividend income on available-for-sale financial assets is recognised separately in the income statement. Changes
             in fair values of available-for-sale equity securities (i.e. non-monetary items) are recognised in the fair value reserve
             within equity.

          (d) Impairment
             The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a
             group of financial assets is impaired and recognises an allowance for impairment when such evidence exists.
             (i) Loans and receivables
                 Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy, and default or
                 significant delay in payments are objective evidence that these financial assets are impaired.
                 The carrying amount of these assets is reduced through the use of an impairment allowance 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 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 income statement.
                 The allowance for impairment loss account is reduced through the income statement in a 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 the extent that the new carrying amount does
                 not exceed the amortised cost, had no impairment been recognised in prior periods.
             (ii) Available-for-sale financial assets
                 Significant or prolonged declines in the fair value of the security below its cost and the disappearance of an
                 active trading market for the security are objective evidence that the security is impaired.
                 The cumulative loss that was recognised in the fair value reserve is transferred to the income statement. The
                 cumulative loss is measured 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 in the income
                 statement on debt securities. The impairment losses recognised in the income statement on equity securities
                 are not reversed through the income statement.

     2.11 Financial guarantees
          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 the subsidiaries
          or associated companies fail to make principal or interest payments when due in accordance with the terms of their
          borrowings.
          Financial guarantees are initially recognised at their fair values plus transaction costs, in the Company’s balance sheet
          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 balance sheet.
          Intragroup transactions are eliminated on consolidation.


60           Hotel Plaza Limited Annual Report 2008                 Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




2 Significant accounting policies (continued)
    2.12 Borrowings
           Borrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement for at
           least twelve months after the balance sheet date.
           Borrowings are initially recognised at fair value (net of transaction costs) and subsequently carried at amortised cost.
           Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income
           statement over the period of the borrowings using the effective interest method.

    2.13 Trade and other payables
           Trade and other payables are initially recognised at fair value, and subsequently carried at amortised cost using the
           effective interest method.

    2.14 Derivative financial instruments and hedging activities
           A derivative financial instrument is initially recognised at its fair value on the date the contract is entered into 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 hedged.
           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 transactions.
           The Group also documents its assessment, both at hedge inception and on an ongoing basis, on whether the
           derivatives designated as hedging instruments are highly effective in offsetting changes in fair value or cash flows of
           the hedged items.
           The Group has designated its derivative financial instrument as a cash flow hedge. Fair value changes on derivatives
           that are not designated or do not qualify for hedge accounting are recognised in the income statement when the
           changes arise.

           Cash flow hedge – Interest rate swaps
           The Group has entered into interest rate swaps that are cash flow hedges for the Group’s exposure to interest 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, thus allowing the Group to
           raise borrowings at floating rates and swap them into fixed rates.
           The fair value changes on the effective portion of interest rate swaps designated as cash flow hedges are recognised
           in the hedging reserve and transferred to the income statement when the interest expense on the borrowings is
           recognised in the income statement.
           The carrying amount of a derivative designated as a hedge is presented as a non-current asset or liability if the
           remaining expected life of the hedged item is more than 12 months, and as a current asset or liability if the remaining
           expected life of the hedged item is less than twelve months.

    2.15 Fair value estimation of financial assets and liabilities
           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 balance sheet date. The quoted market prices
           used for financial assets are the current bid prices; the appropriate quoted market prices for financial liabilities are the
           current asking prices.
           The fair values of financial instruments that are not traded in an active market are determined by using valuation
           techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions
           existing at each balance sheet date. Where appropriate, quoted market prices or dealer quotes for similar instruments
           are used. Valuation techniques, such as estimated discounted cash flow analyses, are also used to determine the fair
           values of the financial instruments.
           The fair values of interest rate swaps are calculated as the present value of the estimated future cash flows discounted
           at actively quoted interest rates.
           The fair values of current financial assets and liabilities carried at amortised cost approximate their carrying amounts.




Hotel Plaza Limited Annual Report 2008                              Notes to the Financial Statements                             61
Notes to the Financial Statements
for the financial year ended 31 December 2008




2 Significant accounting policies (continued)
     2.16 Leases
          Operating leases
          (a) When the Group is the lessee:
             The Group leases certain property, plant and equipment from non-related parties.
             Leases of property, plant and equipment where substantially all risks and rewards incidental to ownership are
             retained by the lessors are classified as operating leases. Payments made under operating leases (net of any
             incentives received from the lessors) are recognised in the income statement on a straight-line basis over the
             period of the lease.

          (b) When the Group is the lessor:
             The Group leases out certain investment properties to non-related parties.
             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 given to the lessees)
             is recognised in the income statement on a straight-line basis over the lease term.
             Initial direct costs incurred by the Group in negotiating and arranging operating leases are added to the 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.
             Contingent rents are recognised as income in the income statement when earned.

     2.17 Inventories
          Inventories are carried at the lower of cost and net realisable value. Cost is determined using the first-in, first-out
          method and includes all costs in bringing the inventories to their present location and condition. Net realisable value is
          the estimated selling price in the ordinary course of business, less the cost of completion and selling expenses.

     2.18 Income taxes
          Current income tax for current and prior periods is recognised at the amount expected to be paid to or recovered from
          the tax authorities, using the tax rates and tax laws that have been enacted or substantially enacted by the balance
          sheet date.
          Deferred income tax is recognised for all temporary differences arising between the tax bases of assets and 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 affects neither
          accounting nor taxable profit or loss at the time of the transaction.
          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 difference
          and it is probable that the temporary difference will not reverse in the foreseeable future.
          A deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be available
          against which the deductible temporary differences and tax losses can be utilised.
          Deferred income tax is measured:
          (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 substantially enacted by
              the balance sheet date; and
          (ii) based on the tax consequence that will follow from the manner in which the Group expects, at the balance sheet
               date, to recover or settle the carrying amounts of its assets and liabilities.
          Current and deferred income taxes are recognised as income or expense in the income statement, except to the
          extent that the tax arises from a business combination or a transaction which is recognised directly in equity. Deferred
          tax arising from a business combination is adjusted against goodwill on acquisition.




62           Hotel Plaza Limited Annual Report 2008                Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




2 Significant accounting policies (continued)
    2.19 Provisions
           Provisions for asset dismantlement, removal or restoration are recognised when the Group has a present legal or
           constructive obligation as a result of past events, when it is more likely than not that an outflow of resources will be
           required to settle the obligation, and when the amounts have been reliably estimated.
           The Group recognises the estimated costs of dismantlement, removal or restoration of items of property, plant and
           equipment arising from the acquisition or use of assets. This provision is estimated based on the best estimate of the
           expenditure required to settle the obligation, taking into consideration time value.
           Other provisions are measured at the present value of the expenditure expected to be required to settle the obligation
           using a pre-tax discount rate that reflects the current market assessment of the time value of money and the risks
           specific to the obligation. The increase in the provision due to the passage of time is recognised in the income
           statement as finance expense.
           Changes in the estimated timing or amount of the expenditure or discount rate are recognised in the income statement
           when the changes arise, except for changes in the estimated timing or amount of the expenditure or discount rate
           for asset dismantlement, removal and restoration costs, which are adjusted against the 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.

    2.20 Employee benefits
           (a) Post-employment benefits
               The Group has various post-employment benefit schemes in accordance with local conditions and practices in the
               country in which it operates. These benefit plans are either defined contribution or defined benefit plans.

               Defined contribution plan
               Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions
               into separate entities such as the Central Provident Fund on a mandatory, contractual or 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.
               Defined benefit plan
               Defined benefit plans are a post-employment benefit plans other than defined contribution plans. 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 compensation.
               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
               the length of service and earnings over the employees’ period of employment; that benefit is discounted to determine
               the present value. The discount rate is the market yield at the balance sheet date on high quality corporate bonds or
               government bonds. Provision 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
               conducted by a qualified independent actuary once in every three years as the directors are of the opinion that yearly
               movements in provision for the defined benefit plan is not likely to be significant. The most recent valuation was at
               31 December 2007.
               When the benefits of a plan are improved, the portion of the increased benefit relating to past service by employees
               is recognised as an expense in the income statement on a straight-line basis over the average period until the
               benefits become vested. To the extent that the benefits vest immediately, the expense is recognised immediately
               in the income statement.
               In calculating the Group’s obligation in respect of a plan, to the extent that any cumulative unrecognised actuarial
               gain or loss exceeds ten percent of the present value of the defined benefit obligation, that portion is recognised
               in the income statement over the expected average remaining working lives of the employees participating in the
               plan. Otherwise, the actuarial gain or loss is not recognised.
               Where the calculation results in a benefit to the Group, the recognised asset is limited to the net total of any
               unrecognised actuarial losses and past service costs and the present value of any future refunds from the plan or
               reductions in future contributions to the plan.




Hotel Plaza Limited Annual Report 2008                               Notes to the Financial Statements                              63
Notes to the Financial Statements
for the financial year ended 31 December 2008




2 Significant accounting policies (continued)
     2.20 Employee benefits (continued)
          (b) Share-based compensation
             The holding company operates an equity-settled, share-based compensation plan and grants share options to
             executives of the Group. The fair value of the employee services received in exchange for the grant of options is
             recognised as an expense in the income statement. The total amount to be recognised over the vesting period
             is determined by reference to the fair value of the options granted 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 each balance sheet date, 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 estimates in the income statement.

     2.21 Currency translation
          (a) Functional and presentation currency
             Items included in the financial statements of each entity in the Group are measured using the currency of the
             primary economic environment in which the entity operates (“functional currency”). The financial statements are
             presented in Singapore Dollars.

          (b) Transactions and balances
             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 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 balance sheet date are 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 operations. Those currency translation differences are recognised in the
             currency translation reserve in the consolidated financial statements and transferred to the income statement as
             part of the gain or loss on disposal of the foreign operation.
             Non-monetary items measured at fair values in foreign currencies are translated using the exchange rates at the
             date when the fair values are determined.

          (c) Translation of Group entities’ financial statements
             The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary
             economy) that have a functional currency different from the presentation currency are translated into the presentation
             currency as follows:
             (i) Assets and liabilities are translated at the closing exchange rates at the date of the balance sheet;
             (ii) Income and expenses are translated at average exchange rates (unless the average is not a reasonable
                  approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income
                  and expenses are translated using the exchange rates at the dates of the transactions); and
             (iii) All resulting currency translation differences are recognised in the currency translation reserve.
                 Goodwill and fair value adjustments arising on the acquisition of foreign operations on or after 1 January 2005
                 are treated as assets and liabilities of the foreign operations and translated at the closing rates at the date of
                 the balance sheet. For acquisitions prior to 1 January 2005, the exchange rates at the dates of acquisition are
                 used.

     2.22 Segment reporting
          A business segment is a distinguishable component of the Group engaged in providing products or services that
          are subject to risks and returns that are different from those of other business segments. A geographical segment is
          a distinguishable component of the Group engaged in providing products or services within a particular economic
          environment that is subject to risks and returns that are different from those of segments operating in other economic
          environments.

     2.23 Cash and cash equivalents
          For the purpose of presentation in the consolidated cash flow statement, cash and cash equivalents include cash and
          bank balances, short-term deposits with financial institutions, and bank overdrafts.




64           Hotel Plaza Limited Annual Report 2008                Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




2 Significant accounting policies (continued)
    2.24 Share capital
            Incremental costs directly attributable to the issuance of new ordinary shares are deducted against the share capital
            account.

    2.25 Dividends
            Dividends to Company’s shareholders are recognised when the dividends are approved for payments.

3 Key accounting estimates and judgements
    Estimates, assumptions and judgements are continually evaluated and are based on historical experience and other factors,
    including expectations of future events that are believed to be reasonable under the circumstances.

    (a) Classification of the Group’s serviced apartments as investment property
       Management applies judgement in determining the classification of its serviced apartments owned by the Group.
       The key criteria used to distinguish the Group’s serviced apartments which are classified as investment properties,
       and its other properties classified as property, plant and equipment, is the level of services provided to tenants of the
       serviced apartment.

    (b) Other estimates and judgements applied
       The Group, on its own or in reliance on third party experts, also applies estimates and judgements in the following areas:
       (i) the determination of investment property values by independent professional valuers;
       (ii) the assessment of adequacy of provision for income taxes; and
       (iii) the level of impairment of goodwill.
       These estimates 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 year.

4 Revenue, finance income and miscellaneous income
                                                                                    The Group                  The Company
                                                                             2008                2007       2008          2007
                                                                            $’000               $’000      $’000         $’000

    Gross revenue from hotel ownership                                  296,556            277,202       37,571          37,780
    Revenue from property investments                                    13,135             11,691       13,176          11,732
    Revenue from hotel management services                                4,268                  –            –               –
    Dividend income                                                       1,266              1,266        6,247           6,781
    Total revenue                                                       315,225            290,159       56,994          56,293
    Interest income
    – advances to holding company                                             11                  –           11               –
    – loans to subsidiaries                                                    –                  –        8,617           8,965
    – fixed deposits with financial institutions                             1,720              2,363          118             466
    – others                                                                 268                345           25              26
                                                                           1,999              2,708        8,771           9,457
    Currency exchange gain – net                                             959                539            –               –
    Finance income                                                         2,958              3,247        8,771           9,457
    Miscellaneous income                                                   1,058              1,137          558             700
    Total                                                               319,241            294,543       66,323          66,450




Hotel Plaza Limited Annual Report 2008                             Notes to the Financial Statements                            65
Notes to the Financial Statements
for the financial year ended 31 December 2008




5 Expenses by nature
                                                                                     The Group                 The Company
                                                                              2008                2007      2008          2007
                                                            Notes            $’000               $’000     $’000         $’000

     Cost of inventory sold                                                26,571             26,102      3,813           4,580
     Depreciation of property, plant and equipment            19           28,932             29,109      3,940           4,760
     Amortisation of trademark                                21              282                100        100             100
     Total depreciation and amortisation                                   29,214             29,209      4,040           4,860
     Employees compensation                                    6           90,627             87,104     13,725          12,464
     Rent paid to third parties                                               983                653          –               –
     Auditors’ remuneration paid/payable to:
     – auditors of the Company                                                 303                233        175             138
     – other auditors                                                          391                342          –               –
     Other fees paid/payable to:
     – auditors of the Company                                                 11                 13           8              11
     – other auditors                                                         170                140           –               –
     Repairs and maintenance                                                6,973              7,009         956             950
     Currency exchange loss – net                                              79                 28           –               –
     Heat, light and power                                                 14,476             13,919       1,387           1,311
     Property, plant and equipment written off and
        net loss on disposals                                               1,053              2,170          63             184
     Advertising and promotion                                              9,255              8,582         879             798
     Management fee to hotel operators                                      6,183              5,916       1,352             977
     Property tax                                                           5,073              4,702       1,519           1,588
     Other expenses                                                        49,987             43,499       9,017           8,846
     Total cost of sales, marketing and distribution,
        administrative and other operating expenses                      241,349            229,621      36,934          36,707

6 Employee compensation
                                                                                     The Group                 The Company
                                                                              2008                2007      2008          2007
                                                                             $’000               $’000     $’000         $’000

     Wages and salaries                                                    83,794             80,988     12,395          11,179
     Employer’s contribution to defined contribution plans
       including Central Provident Fund                                     6,327              5,518      1,132             925
     Retirement benefits                                                       308                238          –               –
     Share options granted to employees                                       198                360        198             360
                                                                           90,627             87,104     13,725          12,464

     During the financial year, the Company was charged share option expenses amounting to $198,000 (2007: $360,000)
     by the holding company for share options granted to executives of the Group under the UOL Group Executives’ Share
     Option Scheme.
     The UOL Group Executives’ Share Option Scheme is equity settled, share-based compensation plan. The 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 350,000 (2007: 466,000) options granted to executives of the Company
     on the grant date, 7 March 2008 (2007: 16 March 2007), determined using the Trinomial Tree model. The significant inputs
     into the model were share price of $3.64 (2007: $4.80), at the grant date, exercise price of $3.68 (2007: $4.91), standard
     deviation of expected share price returns of 26.76% (2007: 22.47%), option life from 7 March 2009 to 6 March 2018
     (2007: 16 March 2008 to 15 March 2017) and annual risk-free interest rate of 1.51% (2007: 2.73%). The volatility measured at
     the standard deviation of expected share price returns is based on statistical analysis of daily share prices of UOL over the
     last three years.




66            Hotel Plaza Limited Annual Report 2008                Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




7 Other losses – net
                                                                                       The Group                   The Company
                                                                               2008                 2007        2008          2007
                                                             Notes            $’000                $’000       $’000         $’000

    Write-back of impairment charge on
       an associated company                                   16                  –                     –    3,600         1,636
    (Impairment charge)/write-back of impairment
       charge on a subsidiary                                  17                  –                     –   (37,000)          660
    Allowance for impairment of loan to a subsidiary           12                  –                     –         –        (2,500)
                                                                                   –                     –   (33,400)         (204)

8 Finance expenses
                                                                                       The Group                   The Company
                                                                               2008                 2007        2008          2007
                                                                              $’000                $’000       $’000         $’000

    Interest expense:
    – advances from holding company                                             21              4,033            16         4,033
    – loans from subsidiaries                                                    –                  –           286            83
    – bank loans and overdrafts                                              3,544              2,868         1,380           572
                                                                             3,565              6,901         1,682         4,688
    Currency exchange loss – net                                                 –                  –           807         2,503
    Less: Amount capitalised to property
      under development                                                      (1,818)                –             –             –
                                                                              1,747             6,901         2,489         7,191

9 Income taxes
    (a) Income tax expense
                                                                                       The Group                   The Company
                                                                               2008                 2007        2008          2007
                                                             Notes            $’000                $’000       $’000         $’000

       Tax expense attributable to profit is made up of:
       Current income tax
       – Singapore (Note (b) below)                                          7,171              6,336          3,850        5,370
       – Foreign (Note (b) below)                                            6,994              5,226              –            –
       Deferred income tax                                     28            1,656             12,544         (1,326)       9,100
                                                                            15,821             24,106          2,524       14,470
       Effect of changes in tax rate on deferred taxation:
       – Singapore                                             28                 –            (1,485)             –          (555)
       – Foreign                                               28              (733)            1,267              –             –
       (Over)/under provision in the preceding
          financial years
       – Singapore current income tax (Note (b) below)                        (123)               (289)           –             –
       – Deferred income tax                                   28              864              (2,412)         736             –
                                                                            15,829             21,187         3,260        13,915




Hotel Plaza Limited Annual Report 2008                               Notes to the Financial Statements                           67
Notes to the Financial Statements
for the financial year ended 31 December 2008




9 Income taxes (continued)
     (a) Income tax expense (continued)
       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:
                                                                                      The Group                 The Company
                                                                               2008                2007      2008          2007
                                                                              $’000               $’000     $’000         $’000

       Profit/(loss) before income tax                                       31,251           109,195      (16,340)        71,615
       Tax calculated at a tax rate of 18% (2007: 18%)                       5,625             19,655      (2,941)        12,891
       Effects of:
       – Singapore statutory stepped income exemption                          (274)             (150)        (27)            (27)
       – Different tax rate in other countries                                3,942             2,933           –               –
       – Income not subject to tax                                           (3,275)           (1,185)     (2,382)          (243)
       – Expenses not deductible for tax purposes                             9,605             3,146       7,874          1,849
       – Utilisation of previously unrecognised tax losses                      (40)             (922)          –               –
       – Deferred tax asset not recognised in the current
          financial year                                                        588                972          –               –
       – Share of tax of associated companies                                 (350)              (343)         –               –
       Tax charge                                                           15,821             24,106      2,524          14,470

       The Company’s deferred tax liabilities have been computed based on the corporate tax rate and tax laws prevailing
       at balance sheet date. On 22 January 2009, the Singapore Minister of Finance announced a reduction in corporate
       tax rate from 18% to 17% with effect from the year of assessment 2010. The Company’s deferred tax expense for the
       current financial year have not taken into consideration the effect of the reduction on the corporate tax rate, which will be
       accounted for in the Company’s deferred tax expense in the financial year ending 31 December 2009. The Group and the
       Company’s deferred tax liabilities as of 31 December 2008 will be reduced by approximately $2,603,000 and $1,827,000
       respectively when the new corporate tax rate of 17% is applied.

     (b) Movements in current income tax (assets)/liabilities
                                                                                      The Group                 The Company
                                                                               2008                2007      2008          2007
                                                             Notes            $’000               $’000     $’000         $’000

       At the beginning of the financial year                                12,449              9,061       5,793           4,074
       Currency translation differences                                     (2,009)               163           –               –
       Income tax paid                                                     (11,216)            (8,743)     (3,681)         (3,651)
       Tax refund received                                                   1,643                695         949               –
       Tax expense on profit (Note (a) above)
       – current financial year                                              14,165             11,562      3,850           5,370
       – (over)/under provision in preceding
          financial years                                                      (123)              (289)         –               –
       Acquisition of subsidiaries                                             450                  –          –               –
       At the end of the financial year                                      15,359             12,449      6,911           5,793
       Comprise:
       Current income tax assets                               12            (2,449)              (287)    (1,579)              –
       Current income tax liabilities (included under
         current liabilities)                                               17,808             12,736      8,490           5,793
                                                                            15,359             12,449      6,911           5,793




68           Hotel Plaza Limited Annual Report 2008                  Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




10 Earnings per share
    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.
                                                                                                             2008                2007

    Net profit attributable to equity holders of the Company ($’000)                                        12,818           84,977
    Weighted average number of ordinary shares in issue for basic earnings per share (’000)              600,000           400,548
    Basic earnings per share (cents per share)                                                               2.14            21.22

    Diluted earnings per share is the same as basic earnings per share as there were no potential dilutive ordinary shares.

11 Cash and bank balances
                                                                                     The Group                   The Company
                                                                              2008                2007        2008          2007
                                                                             $’000               $’000       $’000         $’000

    Cash at bank and on hand                                               21,174            91,152           948           75,056
    Fixed deposits with financial institutions                              27,911           139,366           176          114,966
                                                                           49,085           230,518         1,124          190,022

    (a) For the purposes of the consolidated cash flow statement, the consolidated cash and cash equivalents comprised the following:
                                                                                                                     The Group
                                                                                                              2008                2007
                                                                                                 Note        $’000               $’000

       Cash and bank balances (as above)                                                                   49,085          230,518
       Less: Bank overdrafts                                                                       23        (137)            (523)
       Cash and cash equivalents per consolidated cash flow statement                                       48,948          229,995

       The currency denominations of cash and bank balances are disclosed in Note 34(a)(i).

    (b) The fixed deposits with financial institutions for the Group and Company mature on varying dates within twelve months
        (2007: twelve months) from the end of the financial year and have the following weighted average effective interest rates
        as at the balance sheet date:
                                                                                     The Group                  The Company
                                                                              2008               2007        2008         2007
                                                                                %                  %           %            %

       Singapore Dollar                                                          –               1.13           –                1.13
       United States Dollar                                                   1.04               3.94        1.55                3.94
       Australian Dollar                                                      4.20               6.79        2.91                4.77
       Malaysian Ringgit                                                      3.17               3.63           –                   –




Hotel Plaza Limited Annual Report 2008                              Notes to the Financial Statements                                69
Notes to the Financial Statements
for the financial year ended 31 December 2008




11 Cash and bank balances (continued)
     (c) Acquisition of subsidiaries
       In the financial year ended 31 December 2008, the Company acquired a 100% interest in UOL Hospitality Pte. Ltd. (“UH”)
       and Pan Pacific International Pte. Ltd. (“PPIPL”). The aggregate effects of the acquisition of UH and PPIPL on the cash
       flows of the Group were as follows:
                                                                                                      Notes            $’000

       Identifiable assets and liabilities
       Cash and cash equivalents                                                                                      2,423
       Trade and other receivables                                                                                   11,217
       Property, plant and equipment                                                                     19             467
       Intangibles                                                                                                   13,993
       Total assets                                                                                                  28,100
       Trade and other payables                                                                                      (3,866)
       Current income tax liabilities                                                                     9            (450)
       Deferred income tax liabilities                                                                   28          (2,438)
       Total liabilities                                                                                             (6,754)
       Identifiable net assets acquired                                                                               21,346
       Cash consideration paid                                                                                       21,346
       Repayment of shareholder’s loans                                                                               (3,762)
       Less: Cash and cash equivalents in subsidiaries acquired                                                       (2,423)
       Net cash flow on acquisition net of cash acquired                                                              15,161




70           Hotel Plaza Limited Annual Report 2008               Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




12 Trade and other receivables
                                                                                   The Group                             The Company
                                                         Note               2008               2007               2008             2007

    Current
    Trade receivables:
    – non-related parties                                               15,815             18,527                1,300            1,643
    – holding company                                                      524                  –                    –                –
    – fellow subsidiaries                                                  324                325                  289              274
    – associated companies                                                  10                  –                    –                –
    Less: Allowance for impairment of receivables –
           non-related parties                                            (527)              (256)                   –               (53)
    Trade receivables – net                                             16,146             18,596                1,589            1,864
    Other receivables:
    – loans to subsidiaries                                                    –                     –         14,979                  –
    Less: Allowance for impairment of loan to
          a subsidiary                                                         –                 –             (2,500)                –
                                                                               –                 –             12,479                 –
    – subsidiaries (non-trade)                                                 –                 –              9,600             1,958
    – sundry debtors                                                       4,735             1,106                332               260
    – tax recoverable                                     9(b)             2,449               287              1,579                 –
                                                                           7,184             1,393             23,990             2,218
                                                                        23,330             19,989              25,579             4,082
    Non-current
    Loans to:
    – subsidiaries                                                             –                 –            350,358           241,885
    – an associated company                                                4,264             4,283              4,264             4,283
    Less: Allowance for impairment of loan to
          a subsidiary                                                         –                 –                  –             (2,500)
                                                                           4,264             4,283            354,622           243,668
    Total trade and other receivables                                   27,594             24,272             380,201           247,750

    (a) Impairment loss on trade and other receivables for the Group recognised as an expense and included in ‘Administrative
        expenses’ amounted to $339,000 (2007: $115,000).

    (b) The non-trade amounts due from subsidiaries are unsecured, interest-free and repayable on demand.

    (c) The non-current loans to subsidiaries and an associated company have no fixed terms of repayment and are not expected
        to be repaid within twelve months from the balance sheet date. The loan to an associated company is interest free. The
        loans to subsidiaries are categorised by the earlier of repricing or expected maturity dates as follows:
                                                                                        The Company
                                                          Floating rates           Fixed rates           Interest free              Total
                                                        Less than 1 year           1 to 5 years
                                                                   $’000                  $’000                 $’000              $’000

       2008
       Loans to subsidiaries                                     242,315                1,590               121,432             365,337
       2007
       Loans to subsidiaries                                     226,318                8,046                  7,521            241,885




Hotel Plaza Limited Annual Report 2008                           Notes to the Financial Statements                                     71
Notes to the Financial Statements
for the financial year ended 31 December 2008




12 Trade and other receivables (continued)
     (d) The currency denominations of loans to subsidiaries are disclosed in Note 34(a)(i). The weighted average effective interest
         rates for the loans to subsidiaries at the balance sheet date were as follows:
                                                                                                                        The Company
                                                                                                                     2008              2007
                                                                                                                       %                 %

       Loans to subsidiaries
       Singapore Dollar                                                                                             1.40               3.10
       United States Dollar                                                                                         4.12               6.25
       Australian Dollar                                                                                               –               4.00
       Malaysian Ringgit                                                                                   Interest-free       Interest-free

     (e) The fair value of non-current trade and other receivables are computed based on cash flows discounted using market
         borrowing rates. The fair values and the market borrowing rates used are as follows:
                                                                          The Group              The Company                Borrowing rates
                                                                       2008       2007          2008      2007              2008       2007
                                                                      $’000      $’000         $’000     $’000                %          %

       Loans to subsidiaries
       – AUD fixed-rate loan                                                –             –         –         5,495             –       8.30
       – USD fixed-rate loan                                                –             –     1,574         2,238          3.03       5.87
       – SGD interest-free loan                                            –             –         –         5,793          1.86       3.57
       – MYR interest-free loan                                            –             –     1,387         1,446          4.70       5.18
       Loan to an associated company
       – USD interest-free loan                                      4,128         4,036       4,128         4,036          3.28       6.12
                                                                     4,128         4,036       7,089        19,008

     (f) Loans to subsidiaries of $nil (2007: $14,091,000) have been subordinated to the secured bank loans of the subsidiaries.

13 Inventories
                                                                                       The Group                         The Company
                                                                                2008                2007              2008          2007
                                                                               $’000               $’000             $’000         $’000

     Trading stock                                                                44              62                   39               59
     Food and beverages                                                        1,665           1,710                  205              181
     Spares for maintenance                                                    1,130           1,197                  110              122
                                                                               2,839           2,969                  354              362

     The cost of inventories recognised as expense and included in ‘cost of sales’ amounted to $26,571,000 (2007: $26,102,000)
     and $3,813,000 (2007: $4,580,000) respectively for the Group and the Company.




72            Hotel Plaza Limited Annual Report 2008                Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




14 Other assets
                                                                                    The Group                The Company
                                                                             2008                2007     2008          2007
                                                                            $’000               $’000    $’000         $’000

    Current
    Deposits                                                                 619                327         –               –
    Prepayments                                                            3,650              4,406       282             232
                                                                           4,269              4,733       282             232
    Non-current
    Payment for purchase of land parcel                                        –             71,096         –         71,096
                                                                           4,269             75,829       282         71,328

15 Available-for-sale financial assets
                                                                                    The Group                The Company
                                                                             2008                2007     2008          2007
                                                           Note             $’000               $’000    $’000         $’000

    At the beginning of the financial year                                 21,633             20,892     21,614        20,873
    Disposals                                                                (19)                 –          –             –
    Fair value (losses)/gains recognised in equity         30(a)          (8,646)               741     (8,646)          741
    At the end of the financial year                                       12,968             21,633     12,968        21,614

    At the balance sheet date, available-for-sale financial assets included the following:
                                                                                    The Group                The Company
                                                                             2008                2007     2008          2007
                                                                            $’000               $’000    $’000         $’000

    Listed securities:
    – Equity shares – Singapore                                           12,968             21,614     12,968        21,614
    Unlisted securities:
    – Equity shares – Singapore                                                –                 19          –             –
                                                                          12,968             21,633     12,968        21,614

    Subsequent to the financial year end, the fair value of the listed equity shares of both the Group and the Company, based on
    the closing bid prices at the latest practical date on 19 February 2009, decreased by $494,000.

16 Associated companies
                                                                                    The Group                The Company
                                                                             2008                2007     2008          2007
                                                                            $’000               $’000    $’000         $’000

    Equity investments at cost                                                                           9,820          9,820
    Less: accumulated impairment charge:
      At the beginning of the financial year                                                             (3,600)        (5,236)
      Write-back of impairment charge                                                                    3,600          1,636
      At the end of the financial year                                                                        –         (3,600)
    Equity investments at cost less accumulated impairment
      charge at the end of the financial year                                                             9,820          6,220
    At the beginning of the financial year                                  6,283              4,713
    Share of profits                                                        1,946              1,907
    Currency translation differences                                          13               (337)
    At the end of the financial year                                        8,242              6,283




Hotel Plaza Limited Annual Report 2008                             Notes to the Financial Statements                         73
Notes to the Financial Statements
for the financial year ended 31 December 2008




16 Associated companies (continued)

     (a) The write-back of impairment charge of $3,600,000 (2007: $1,636,000) was recognised for the Company’s investment
         in an associated company, being the difference between the carrying amount of the investment and its recoverable
         amount.

     (b) The summarised financial information of associated companies were as follows:
                                                                                                                                    The Group
                                                                                                                             2008                2007
                                                                                                                            $’000               $’000

       –   Assets                                                                                                      77,563              77,945
       –   Liabilities                                                                                                 47,194              55,094
       –   Revenues                                                                                                    23,076              22,937
       –   Net profit after tax                                                                                          4,945               4,846

     (c) Contingent liabilities of the associated company in which the Group is severally liable (Note 32) amounted to $16,914,000
         (2007: $16,990,000).

     (d) The associated companies are:
                                                                                      Country of
                                                         Principal                    business/                                      Accounting
       Name of companies                                 activities                   incorporation        Equity holding            year end
                                                                                                         2008        2007
                                                                                                         %           %

       Pilkon Development Company Limited*               Investment holding           The British        39.35      39.35            31 December
                                                                                      Virgin Islands     by HPL     by HPL
       PPHR (Thailand) Company Limited**                 Marketing agent              Thailand           48.97      48.97            31 December
                                                                                                         by PHR     by PHR

       * Not required to be audited under the laws of the country of incorporation.
       ** Audited by Thana-Ake Advisory Limited.

17 Subsidiaries
                                                                                                                                The Company
                                                                                                                             2008          2007
                                                                                                                            $’000         $’000

     Equity investments at cost                                                                                      235,992              137,767
     Less: accumulated impairment charge:
       At the beginning of the financial year                                                                            (1,040)             (1,700)
       Write-back of impairment charge                                                                                       –                 660
       Impairment charge for the financial year                                                                        (37,000)                   –
       At the end of the financial year                                                                                (38,040)              (1,040)
     Equity investments at cost less accumulated impairment charge
       at the end of the financial year                                                                               197,952              136,727
     At the beginning of the financial year                                                                           136,727              129,044
     Additional investment                                                                                           100,225                7,023
     Disposal arising from liquidation of a subsidiary                                                                (2,000)                   –
     Write-back of impairment charge for the financial year                                                                 –                  660
     Impairment charge for the financial year                                                                         (37,000)                   –
     At the end of the financial year                                                                                 197,952              136,727

     (a) The impairment charge (2007: write-back of impairment charge) of $37,000,000 (2007: $660,000) was recognised for the
         Company’s investment in certain subsidiaries, being the difference between the carrying amount of the investment and its
         recoverable amount.



74             Hotel Plaza Limited Annual Report 2008                         Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




17 Subsidiaries (continued)
    (b) The subsidiaries are:
                                                                               Country of
                                                                               business/                Cost of
       Name of companies                        Principal activities           incorporation          investment         Equity holding
                                                                                                      2008       2007     2008       2007
                                                                                                     $’000      $’000        %          %

       Held by the Company
       New Park Hotel (1989) Pte Ltd            Hotelier                       Singapore            5,000       5,000      100       100
       Parkroyal Hotels & Resorts Pte. Ltd.     Hotel manager and              Singapore               10          10      100       100
       (“PHR”)                                  operator
       United Lifestyle Holdings Pte Ltd        Investment holding             Singapore            3,500        3,500     100       100
       (“ULH”)
       HPL Overseas Investments Pte Ltd         In the process of              Singapore                    –    2,000       –       100
       (“HOI”)                                  liquidation
       HPL Properties (Malaysia) Sdn. Bhd.      Investment holding             Malaysia            50,172       50,172     100       100
       (“HPM”) *
       President Hotel Sdn Berhad               Hotelier                       Malaysia            25,130       25,130   33.33     33.33
       (“PHSB”) @ *
       Success Venture Investments              Investment holding             The British          6,353        6,353      60        60
       (Australia) Ltd (“SVIA”)                                                Virgin Islands
       Success Venture Investments (WA)         Investment holding             The British         21,279       21,279     100       100
       Limited (“SVIWA”)                                                       Virgin Islands
       Success City Pty Limited *               Dormant                        Australia          20,052        20,052      95        95
       Garden Plaza Company Limited *           Hotelier                       Vietnam             1,748         1,748     100       100
       Dou Hua Restaurants Pte Ltd #            Operator of restaurants        Singapore             875           873     100       100
       St Gregory Spa Pte Ltd #                 Manage and operate             Singapore           1,654         1,650     100       100
                                                health and beauty
                                                retreats and facilities
       Hotel Investments (Suzhou) Pte. Ltd.     Investment holding             Singapore               131          ~      100       100
       (“HIS”) #
       Hotel Investments (Hanoi) Pte. Ltd.      Investment holding             Singapore                   98       ~      100       100
       (“HIH”) #
       YIPL Investment Pte. Ltd. (“YIPL”) #     Investment holding             Singapore                ~           ~      100       100
       Hotel Plaza Property (Singapore)         Property development           Singapore           75,000           ~      100       100
       Pte. Ltd.                                and hotelier
       Parkroyal Hospitality Group Pte. Ltd.    Manage and operate             Singapore                   ~        ~      100       100
                                                serviced apartments
       Parkroyal International Pte. Ltd.        Managing and licensing         Singapore               100           –     100       100
                                                of trademarks
       Parkroyal Marketing Services Pte. Ltd.   Provision of marketing         Singapore                   ~        ~      100       100
                                                and related services
                                                to hotels and serviced
                                                apartments
       Parkroyal Technical Services Pte. Ltd.   Provision of                   Singapore                   ~        ~      100       100
                                                consultancy and
                                                technical services to
                                                hotels and serviced
                                                apartments
       UOL Hospitality Pte. Ltd. (“UH”)         Investment holding             Singapore           21,800            –     100         –
       [Note (d) below]
       Pan Pacific International Pte.            Managing and licensing         Singapore            3,090            –     100         –
       Ltd. (previously known as PPHR           of trademarks
       International Pte. Ltd.)(“PPIPL”)
       [Note (d) below]
                                                                                                 235,992 137,767


Hotel Plaza Limited Annual Report 2008                                 Notes to the Financial Statements                               75
Notes to the Financial Statements
for the financial year ended 31 December 2008




17 Subsidiaries (continued)
     (b) The subsidiaries are: (continued)
                                                                                  Country of
                                                       Principal                  business/
       Name of companies                               activities                 incorporation                   Equity holding
                                                                                                               2008            2007
                                                                                                                 %               %

       Held by subsidiaries
       Success Venture Pty Limited *                   Trustee company            Australia                     100            100
                                                                                                            by SVIA        by SVIA
       Yangon Hotel Limited (“YHL”) **                 Hotelier                   Myanmar                        95             95
                                                                                                            by YIPL        by YIPL
       Westlake International Company *                Hotelier                   Vietnam                        75             75
                                                                                                             by HIH         by HIH
       Suzhou Wugong Hotel Co., Ltd *                  Hotelier                   The People’s                  100            100
                                                                                  Republic of China          by HIS         by HIS
       President Hotel Sdn Berhad (“PHSB”) @ *         Hotelier                   Malaysia                    66.67         66.67
                                                                                                            by HPM        by HPM
       Grand Elite Sdn. Bhd. *                         Dormant                    Malaysia                      100          100
                                                                                                           by PHSB       by PHSB
       Grand Elite (Penang) Sdn. Bhd. *                Dormant                    Malaysia                      100          100
                                                                                                           by PHSB       by PHSB
       Pan Pacific Hotels and Resorts Pte. Ltd.         Hotel manager and          Singapore                    100            100
       (“PPHR”) [Note (d) below]                       operator                                              by UH          by UH
       Pan Pacific Hotels and Resorts America,          Hotel manager and          United States of              100              –
       Inc. (“PPHRA”) ^                                operator                   America                  by PPHR
       Pan Pacific Hotels and Resorts Seattle           Hotel manager and          United States of              100              –
       Limited Liability Co (“PPHRS) ^                 operator                   America                 by PPHRA
       Pan Pacific Hotels and Resorts Japan             Hotel manager and          Japan                         100              –
       Co., Ltd ^                                      operator                                            by PPHR
       PT. Pan Pacific Hotels & Resorts Indonesia       Hotel manager and          Indonesia                      99              –
       (“PPHRI”) ***                                   operator                                         by PPHR and
                                                                                                         1 by PPHRA
       Pan Pacific Hospitality Pte. Ltd.                Manage and operate         Singapore                    100            100
       [Note (d) below]                                serviced apartments                                   by UH          by UH
       Pan Pacific Technical Services Pte. Ltd.         Provision of technical     Singapore                    100            100
       (previously known as PPHR Technical             services to hotels and                                by UH          by UH
       Services Pte. Ltd.) [Note (d) below]            serviced apartments
       Pan Pacific Marketing Services Pte. Ltd.         Provision of marketing     Singapore                    100            100
       (previously known as PPHR Marketing             and related services                                  by UH          by UH
       Services Pte. Ltd.) [Note (d) below]            to hotels and serviced
                                                       apartments




76            Hotel Plaza Limited Annual Report 2008                Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




17 Subsidiaries (continued)
    (c) The following unit trusts are held by:
                                                                                  Country of
                                                       Principal                  business/
       Name of unit trusts                             activities                 constitution                       Units held
                                                                                                              2008                2007
                                                                                                                %                   %

       SVIA
       Success Venture (Darling Harbour)               Hotelier                   Australia                    100                100
       Unit Trust *
       Success Venture (Parramatta) Unit Trust *       Hotelier                   Australia                    100                100

       SVIWA
       Success Venture (WA) Unit Trust *               Hotelier                   Australia                    100                100

       PricewaterhouseCoopers LLP Singapore is the auditor of all subsidiaries of the Group unless otherwise indicated.
       ~ Less than $1,000.
       @
           The Group’s effective interest in PHSB is 100% (2007: 100%) of which 33.33% (2007: 33.33%) is held directly by the
           Company and the remainder interest held through HPM.
       * Companies audited by PricewaterhouseCoopers firms outside Singapore.
       ** Company audited by Myanmar Vigour Company Limited. +
       *** Company audited by Kanaka Puradiredja, Robert Yogi dan Suhartono. +
       #
           In 2007, arising from a reorganisation of the Group, the equity holding of these companies were transferred to the
           Company.
       ^
           Not required to be audited under the laws of the country of incorporation.
       +
           YHL and PPHRI are not significant subsidiaries as defined under Rule 718 of the Listing Manual of the Singapore
           Exchange Securities Trading Limited.

    (d) Acquisition of subsidiaries
       On 31 October 2008, the Company acquired 100% of the issued share capital of UH and PPIPL from UOL for cash
       consideration of $21,256,000 and $90,000 respectively.
       UH and its subsidiaries contributed revenue of $4,036,000 and net loss of $653,000 to the Group for the period
       from 31 October 2008 to 31 December 2008. The consolidated assets and liabilities of UH and its subsidiaries at
       31 December 2008 were $29,119,000 and $8,016,000 respectively. If the acquisition had occurred on 1 January 2008,
       Group revenue would have been increased by $17,264,000 and net profit increased by $1,178,000 for the financial year
       ended 31 December 2008.
       PPIPL contributed revenue of $nil and net profit of $290,000 to the Group for the period from 31 October 2008 to
       31 December 2008. PPIPL’s assets and liabilities at 31 December 2008 were $10,866,000 and $7,486,000 respectively. If
       the acquisition had occurred on 1 January 2008, Group revenue would have been increased by $32,000 and total profit
       increased by $390,000 for the financial year ended 31 December 2008.
       The cash consideration for the acquisition was determined based on the net book values of the consolidated assets and
       liabilities of UH and its subsidiaries and the assets and liabilities of PPIPL and no goodwill was recognised. Details of net
       assets acquired are disclosed in Note 11(c).




Hotel Plaza Limited Annual Report 2008                              Notes to the Financial Statements                                77
Notes to the Financial Statements
for the financial year ended 31 December 2008




18 Investment properties
                                                                                      The Group                   The Company
                                                                               2008                2007        2008          2007
                                                             Note             $’000               $’000       $’000         $’000

     At the beginning of the financial year                                165,309            118,679      165,309          118,679
     Additions                                                                  –               3,502           –             3,502
     Disposals to a subsidiary                                                  –                   –           –            (8,825)
     Transfer (to)/from property, plant and equipment          19               –              (6,139)          –             2,686
     Fair value (loss)/gain recognised in income statement                 (9,840)            49,267       (9,840)          49,267
     At the end of the financial year                                      155,469            165,309      155,469          165,309

     (a) Investment properties are carried at fair values at the balance sheet date as determined by independent professional
         valuers. Valuations are made semi-annually based on the properties’ highest-and-best use using various valuation
         methods such as Direct Market Comparison Method and Income Method.

     (b) The investment properties are leased to non-related parties under operating leases (Note 33(c)).

     (c) The details of the Group’s investment properties at 31 December 2008 were:
                                                                                                          Tenure of land

        The Plaza           –    retained interests in a 32-storey tower block comprising restaurants,    99-year lease from 1968
                                 function rooms, shops, offices and serviced apartments,
                                 two adjacent commercial buildings and a 510-lot car park at
                                 Beach Road, Singapore




78            Hotel Plaza Limited Annual Report 2008                 Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




19 Property, plant and equipment

                                                                                  Plant,
                                                   Land and building         equipment,
                                                                               furniture          Motor    Renovation
                                                  Freehold      Leasehold    and fittings        vehicles   in progress      Total
                                          Notes     $’000           $’000         $’000          $’000          $’000      $’000

    The Group
    Cost or valuation
    At 1 January 2008
    Cost                                          308,345       117,028        325,399           1,503        6,186      758,461
    Valuation                                      20,125        39,167              –               –            –       59,292
                                                  328,470       156,195        325,399           1,503        6,186      817,753
    Currency translation differences              (33,525)        3,183        (21,282)            (32)         359      (51,297)
    Acquisition of subsidiaries           11(c)         –             –          1,038               –            –        1,038
    Additions                                         233         6,376         10,912             137       20,971       38,629
    Reclassification                                     –           318          3,534               –       (3,852)           –
    Disposals                                        (827)          (62)       (17,924)           (268)         (59)     (19,140)
    At 31 December 2008
    Cost                                          274,738       126,843        301,677           1,340       23,605      728,203
    Valuation                                      19,613        39,167              –               –            –       58,780
                                                  294,351       166,010        301,677           1,340       23,605      786,983
    Accumulated depreciation
    At 1 January 2008                              53,547         55,196       205,125           1,241              –    315,109
    Currency translation differences               (5,405)         1,218       (13,566)            (23)             –    (17,776)
    Acquisition of subsidiaries           11(c)         –              –           571               –              –        571
    Charge for the financial year                    4,426          3,953        20,469              84              –     28,932
    Reclassification                                     –            378          (378)              –              –          –
    Disposals                                        (295)           (57)      (17,404)           (268)             –    (18,024)
    At 31 December 2008                            52,273         60,688       194,817           1,034              –    308,812
    Net book value
    At 31 December 2008                           242,078       105,322        106,860             306       23,605      478,171




Hotel Plaza Limited Annual Report 2008                      Notes to the Financial Statements                                  79
Notes to the Financial Statements
for the financial year ended 31 December 2008




19 Property, plant and equipment (continued)

                                                                                               Plant,
                                                                Land and building         equipment,
                                                                                            furniture          Motor    Renovation
                                                               Freehold      Leasehold    and fittings        vehicles   in progress       Total
                                                       Notes     $’000           $’000         $’000          $’000          $’000       $’000

     The Group
     Cost or valuation
     At 1 January 2007
     Cost                                                      286,806       121,020        297,725           1,590         7,076     714,217
     Valuation                                                  11,320        42,587              –                –            –      53,907
                                                               298,126       163,607        297,725           1,590         7,076     768,124
     Currency translation differences                            5,358         (3,178)          234              (45)         140       2,509
     Additions                                                   3,553            722        17,475               80       38,709      60,539
     Reclassification                                            14,681              –        25,058                –      (39,739)          –
     Fair value gain arising from transfer of
        property to investment property                30(b)         –            665             –               –              –        665
     Transfer from/(to) investment properties            18      8,825         (4,085)            –               –              –      4,740
     Disposals                                                  (2,073)        (1,536)      (15,093)           (122)             –    (18,824)
     At 31 December 2007
     Cost                                                      308,345       117,028        325,399           1,503         6,186     758,461
     Valuation                                                  20,125        39,167              –               –             –      59,292
                                                               328,470       156,195        325,399           1,503         6,186     817,753
     Accumulated depreciation
     At 1 January 2007                                          49,678         54,412       197,980           1,297              –    303,367
     Currency translation differences                              759            (943)         (152)            (38)            –         (374)
     Charge for the financial year                                4,107           3,796        21,113              93             –      29,109
     Transfer to investment properties                   18          –          (1,399)            –               –             –       (1,399)
     Disposals                                                    (997)           (670)      (13,816)          (111)             –     (15,594)
     At 31 December 2007                                        53,547         55,196       205,125           1,241              –    315,109
     Net book value
     At 31 December 2007                                       274,923       100,999        120,274             262         6,186     502,644




80            Hotel Plaza Limited Annual Report 2008                     Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




19 Property, plant and equipment (continued)
                                                                                    Plant,
                                                                 Leasehold     equipment,
                                                                  land and       furniture     Motor
                                                                   building    and fittings   vehicles      Total
                                                                     $’000           $’000    $’000       $’000

    The Company
    Cost or valuation
    At 1 January 2008
    Cost                                                            4,317          35,683       164     40,164
    Valuation                                                      39,167               –         –     39,167
                                                                   43,484          35,683       164     79,331
    Additions                                                           –           1,899        65      1,964
    Disposals                                                           –            (275)      (66)      (341)
    At 31 December 2008
    Cost                                                            4,317          37,307       163     41,787
    Valuation                                                      39,167               –         –     39,167
                                                                   43,484          37,307       163     80,954
    Accumulated depreciation
    At 1 January 2008                                              19,407          17,931       164     37,502
    Charge for the financial year                                    1,272           2,660         8      3,940
    Disposals                                                           –            (207)      (66)      (273)
    At 31 December 2008                                            20,679          20,384       106     41,169
    Net book value
    At 31 December 2008                                            22,805          16,923        57     39,785




Hotel Plaza Limited Annual Report 2008         Notes to the Financial Statements                              81
Notes to the Financial Statements
for the financial year ended 31 December 2008




19 Property, plant and equipment (continued)

                                                                                                           Plant,
                                                                             Land and building        equipment,
                                                                                                        furniture       Motor
                                                                           Freehold     Leasehold     and fittings     vehicles       Total
                                                              Notes           $’000         $’000            $’000     $’000        $’000

     The Company
     Cost or valuation
     At 1 January 2007
     Cost                                                                  79,526          5,206          55,272         164     140,168
     Valuation                                                                  –         42,587               –           –      42,587
                                                                           79,526         47,793          55,272         164     182,755
     Additions                                                                  –              –           4,300           –       4,300
     Fair value gain arising from transfer of property
        to investment property                                30(b)              –            665                –          –         665
     Transfer to investment properties                          18               –         (4,085)               –          –      (4,085)
     Disposal of property to a subsidiary                                  (79,526)             –         (16,639)          –    (96,165)
     Other disposals                                                             –           (889)          (7,250)         –      (8,139)
     At 31 December 2007
     Cost                                                                         –        4,317          35,683         164      40,164
     Valuation                                                                    –       39,167               –           –      39,167
                                                                                  –       43,484          35,683         164      79,331
     Accumulated depreciation
     At 1 January 2007                                                      15,261        20,091           38,379        155      73,886
     Charge for the financial year                                              927          1,223            2,601         9        4,760
     Transfer to investment properties                           18              –         (1,399)               –         –       (1,399)
     Disposal of property to a subsidiary                                  (16,188)             –         (16,090)         –     (32,278)
     Other disposals                                                             –           (508)          (6,959)        –       (7,467)
     At 31 December 2007                                                         –        19,407           17,931        164      37,502
     Net book value
     At 31 December 2007                                                          –       24,077          17,752            –     41,829

     (a) The valuation of leasehold land and building of the Company (which comprise a hotel property), was carried out by a
         firm of professional valuers on 31 December 1985 on an open market existing use basis, with subsequent additions
         at cost. The valuation done in 1985 was incorporated in the financial statements. However, a decision was then made
         subsequently by the Board of Directors that future valuations of hotel properties would not be incorporated in the financial
         statements but would be disclosed for information.
        In accordance with paragraph 77(e) of FRS 16 (revised 2006), the Company is required to disclose the carrying amount
        of the leasehold land and buildings in the financial statements had the assets been carried at cost less depreciation at the
        balance sheet date. The valuation of the leasehold land and buildings was carried out in 1985, and hence it is not possible
        to obtain the relevant information for such disclosure to be made in the financial statements.

     (b) At 31 December 2008, the open market value of the hotel property of the Company (including plant, equipment, furniture
         and fittings) was $113,500,000 (2007: $111,000,000) and the net book value was $38,177,000 (2007: $39,858,000). The
         valuation of the hotel properties was carried out by a firm of independent professional valuers on an open market existing
         use basis. The surplus on valuation amounting to $75,323,000 (2007: $71,142,000) has not been incorporated in the
         financial statements.
        The open market value of hotel properties of the Group (including plant, equipment, furniture and fittings) was $993,033,000
        (2007: $1,086,605,000) and the net book value at 31 December 2008 was $468,385,000 (2007: $498,593,000). The
        valuations were carried out by firms of independent professional valuers on an open market existing use basis. The surplus
        on valuation of these hotel properties amounting to $524,648,000 (2007: $588,012,000) has not been incorporated in the
        financial statements.




82             Hotel Plaza Limited Annual Report 2008                 Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




19 Property, plant and equipment (continued)
    (c) Bank borrowings and other banking facilities are secured on certain hotel properties of the Group amounting to
        $302,339,000 (2007: $254,988,000) (Note 23(a)).

    (d) The details of the Group’s hotel properties at 31 December 2008 were:
                                                                                                       Tenure of land

       Parkroyal on Kitchener Road       – a 534-room hotel at Kitchener Road, Singapore               Freehold
       Parkroyal on Beach Road           – a 343-room hotel at Beach Road, Singapore                   99-year lease from 1968
       Crowne Plaza Darling Harbour      – a 345-room hotel at Darling Harbour,                        Freehold
                                           Sydney, Australia
       Crowne Plaza Parramatta           – a 196-room hotel at Parramatta, Australia                   Freehold
       Sheraton Perth Hotel              – a 486-room hotel and carpark at Adelaide Terrace,           Freehold
                                           Perth, Australia
       Parkroyal Kuala Lumpur and        – a 426-room hotel and a 6-storey podium block                Freehold
         President House                   at Jalan Sultan Ismail, Kuala Lumpur, Malaysia
                                         – a 320-lot carpark at Jalan Sultan Ismail,                   Leasehold expiring in 2080
                                           Kuala Lumpur, Malaysia
       Parkroyal Penang                  – a 309-room resort hotel at Jalan Batu Ferringhi,            Freehold
                                           Penang, Malaysia
       Parkroyal Saigon                  – a 193-room hotel and 4-storey annex block at                49-year lease from 1994
                                           Nguyen Van Troi Street, Ho Chi Minh City, Vietnam
       Hotel Sofitel Plaza Hanoi          – a 309-room hotel and 36-unit serviced apartment             48-year lease from 1993
                                           at Thanh Nien Road, Hanoi, Vietnam
       Sheraton Suzhou Hotel             – a 484-room hotel at Xinshi Road, Suzhou, Jiangsu,           50-year lease from 1994
         & Towers                          The People’s Republic of China
       Parkroyal Yangon                  – a 267-room hotel at the corner of Alan Pya                  30-year lease from 1997
                                           Phaya Road and Yaw Min Gyi Road, Yangon,
                                           Union of Myanmar

20 Property under development

                                                                                                                      The Group
                                                                                                               2008                2007
                                                                                                              $’000               $’000

    Costs of land                                                                                         253,200                    –
    Development costs                                                                                      17,816                    –
    Property taxes, interest and other overheads                                                            3,043                    –
                                                                                                          274,059                    –
    Less: Impairment charge                                                                               (37,000)                   –
    Property under development                                                                            237,059                    –

    (a) Borrowing costs of $1,818,000 (2007: nil) arising on financing specifically entered into for the development of the property
        were capitalised during the financial year and are included in property under development. A capitalisation rate of
        approximately 1.97% (2007: nil) per annum was used, representing the borrowing cost of the loan used to finance the
        development.




Hotel Plaza Limited Annual Report 2008                             Notes to the Financial Statements                                  83
Notes to the Financial Statements
for the financial year ended 31 December 2008




20 Property under development (continued)
     (b) Details of the property under development as at 31 December 2008 are as follows:
                                                                                                       Expected       Site area/
                                                                       Tenure           Stage of       completion     gross floor
       Properties                                                      of land          completion     date           area (sq m)

       Upper Pickering Street
       A proposed development comprising 365-room hotel                99 year          –              1st Quarter    6,959/
          and 44 units of small home office units (“SOHO”)              leasehold                       2011           29,227
                                                                       from 2008

     (c) An impairment charge of $37,000,000 (2007: nil) was recognised for the property under development, being the difference
         between the carrying amount of the property under development and its recoverable amount. The recoverable amount is
         based on the market value of the development upon completion as assessed by independent professional valuer, net of
         estimated construction costs.

21 Intangibles
                                                                                   The Group                     The Company
                                                                            2008                2007          2008          2007
                                                                           $’000               $’000         $’000         $’000

     Trademark (Note (a) below)                                          14,115                404            304              404
     Goodwill arising on consolidation (Note (b) below)                  13,911             13,911              –                –
                                                                         28,026             14,315            304              404

     (a) Trademark
                                                                                   The Group                     The Company
                                                                            2008                2007          2008          2007
                                                                           $’000               $’000         $’000         $’000

       At the beginning of the financial year                                404                 504            404              504
       Acquisition of subsidiaries                                       13,993                   –              –                –
       Amortisation for the financial year                                  (282)               (100)          (100)            (100)
       At the end of the financial year                                   14,115                 404            304              404
       Cost                                                              14,938                 946            946              946
       Accumulated amortisation                                            (823)               (542)          (642)            (542)
       Net book value                                                    14,115                 404            304              404

     (b) Goodwill arising on consolidation
       There were no movements in goodwill arising on consolidation for the current and previous financial year.
       Impairment tests for goodwill
       Goodwill is allocated to the Group’s cash-generating units (“CGUs”) identified according to countries of operation and
       business segment. A segment-level summary of the goodwill allocation is analysed as follows:
                                                                                                               Hotel operations
                                                                                                              2008             2007
                                                                                                             $’000            $’000

       The People’s Republic of China                                                                      13,080           13,080
       Malaysia                                                                                               831              831
                                                                                                           13,911           13,911

       The recoverable amount of a CGU was determined based on value-in-use calculations. The calculations of the value-in-use
       were prepared by independent firms of professional valuers using the future expected cash flows of the CGUs.




84            Hotel Plaza Limited Annual Report 2008              Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




21 Intangibles (continued)
    (b) Goodwill arising on consolidation (continued)
       Key assumptions used for value-in-use calculations:
                                                                                                         The People’s
                                                                                                          Republic of
                                                                                                               China      Malaysia

       2008
       Growth rate                                                                                            11.6%          5.4%
       Discount rate                                                                                          12.0%          7.3%
       2007
       Growth rate                                                                                            10.7%          3.2%
       Discount rate                                                                                          11.0%          7.5%

22 Trade and other payables
                                                                                     The Group                     The Company
                                                                              2008                2007          2008          2007
                                                                             $’000               $’000         $’000         $’000

    Trade payables:
    – non-related parties                                                  13,297             13,326           3,533        5,065
    – fellow subsidiaries                                                     237                313             168          266
    – holding company                                                         167                408             166          387
    – associated company                                                       20                 14               –            –
    – subsidiaries                                                              –                  –             245           93
                                                                           13,721             14,061           4,112        5,811
    Other payables:
    – accrued operating expenses                                           19,473             17,012           1,386        1,254
    – sundry creditors                                                     16,959             16,141           3,556        3,148
    – retention monies                                                      1,009              1,161              16          133
    – accrued interest payable                                                408                316              39          132
    – rental deposits                                                       3,185              1,359           1,841          141
                                                                           41,034             35,989           6,838        4,808
                                                                           54,755             50,050         10,950        10,619

    At the balance sheet date, the Company has given guarantees in respect of banking facilities granted to certain subsidiaries and
    an associated company (Note 32). The Directors are of the view that there is no significant value to the guarantees issued.




Hotel Plaza Limited Annual Report 2008                              Notes to the Financial Statements                            85
Notes to the Financial Statements
for the financial year ended 31 December 2008




23 Borrowings
                                                                                      The Group                      The Company
                                                                               2008                2007           2008          2007
                                                                              $’000               $’000          $’000         $’000

     Current
     Bank overdrafts (secured)                                                    –               523            –                  –
     Bank overdrafts (unsecured)                                                137                 –           36                  –
     Bank loans (secured)                                                     3,402            15,004            –                  –
     Bank loans (unsecured)                                                   9,239            12,256        9,239                  –
                                                                             12,778            27,783        9,275                  –
     Non-current
     Bank loans (secured)                                                   101,017                 –               –               –
     Bank loans (unsecured)                                                       –            75,605               –          72,558
                                                                            101,017            75,605               –          72,558
     Total borrowings                                                       113,795          103,388         9,275             72,558

     (a) Securities granted
       The bank overdrafts and loans are secured by mortgages on certain subsidiaries’ hotel properties; and/or 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 $302,339,000 (2007: $254,988,000).

     (b) Repricing analysis
       Interest on the bank loans of the Group and of the Company is on floating-rate basis and all the loans are due for repricing
       between one to six months (2007: three months) from the balance sheet date.

     (c) Interest rate risks
       The weighted average effective interest rates of total borrowings at the balance sheet date were as follows:
                                                              2008                                               2007
                                                 SGD   USD           AUD         MYR              SGD     USD           AUD      MYR
                                                   %     %             %           %                %       %             %        %

       The Group
       Bank loans (secured)                     3.24      –             –        4.55                –       –          8.26     5.62
       Bank loans (unsecured)                   1.70      –             –           –             3.14    6.56             –     3.89
       Bank overdrafts (unsecured)              5.00      –             –           –                –       –             –     7.75

                                                                                                                        2008     2007
                                                                                                                        SGD      SGD
                                                                                                                          %        %

       The Company
       Bank loans (unsecured)                                                                                           1.70     3.14




86            Hotel Plaza Limited Annual Report 2008                 Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




24 Derivative financial instruments
                                                                                                                    The Group
                                                                                                         Contract
                                                                                                         notional        Fair value
                                                                                                          amount           liability
                                                                                                           $’000              $’000

    2008
    Cash-flow hedges
    – Interest rate swaps                                                                                 40,000                 316

    During the financial year, a subsidiary entered into Singapore dollar interest rate swap to hedge floating semi-annual interest
    payments on borrowings that will mature on 5 October 2011. The interest rate swap terminates on 5 October 2011.
    Fair value gains and losses on the interest rate swaps recognised in the hedging reserve are transferred to the income
    statement as part of interest expense over the period of the borrowings.

25 Holding company
    The Company’s immediate and ultimate holding company is UOL Group Limited (“UOL”).
    The advances from the holding company are unsecured with interest charged at the higher of the lending bank’s one-month
    swap rate or 0.25% above UOL’s average cost of funds, capped at 0.75% above swap rate. The effective interest rate at the
    balance sheet date was nil% (2007: 2.95%) per annum.

26 Loans from subsidiaries
    Details of the loans from subsidiaries are as follows:
    (i) Loans of $29,480,000 (2007: $6,820,000) with interest charged on a floating-rate basis, subject to monthly repricing.
        The weighted average effective interest rate at the balance sheet date ranged from 0.80% to 3.50% (2007: 2.20%) per
        annum.
    (ii) Loans of $87,997,000 (2007: $72,575,000) are interest-free. The fair value of the interest-free loans from subsidiaries is
         $85,794,000 (2007: $70,075,000). The fair value is computed based on the present value of the cash flows on the loans
         discounted at a rate of 2.57% (2007: 3.57%), which is the borrowing rate that the directors expect would be available to
         the Company at the balance sheet date.

27 Provision for retirement benefits
                                                                                                                    The Group
                                                                                                             2008                2007
                                                                                                            $’000               $’000

    Non-current                                                                                            2,112            2,035

    (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 balance sheet date. An actuarial valuation, based on
        the projected unit credit method, of the fund is conducted by a qualified independent actuary once every three years. The
        most recent revaluation was at 31 December 2007.




Hotel Plaza Limited Annual Report 2008                             Notes to the Financial Statements                                87
Notes to the Financial Statements
for the financial year ended 31 December 2008




27 Provision for retirement benefits (continued)
     (b) The movements during the year recognised in the balance sheets were as follows:
                                                                                                                  The Group
                                                                                                           2008                2007
                                                                                                          $’000               $’000

       At the beginning of the financial year                                                             2,035            1,875
       Benefits paid                                                                                       (136)              (73)
       Charged to income statement                                                                         308              238
       Exchange differences                                                                                (95)                (5)
       At the end of the financial year                                                                   2,112            2,035

     (c) The expense recognised in the income statement may be analysed as follows:
                                                                                                                  The Group
                                                                                                           2008                2007
                                                                                                          $’000               $’000

       Current service cost                                                                                193                 130
       Interest on obligation                                                                              115                 108
       Expense recognised in the income statement                                                          308                 238

       The charge to the income statement was included under administrative expenses in the income statement.

     (d) The principal actuarial assumptions used in respect of the Group’s defined benefit plan were as follows:
                                                                                                                  The Group
                                                                                                          2008                2007
                                                                                                            %                   %

       Discount interest rate                                                                              6.0                 6.0
       Future salary increase                                                                              5.5                 5.5
       Inflation rate                                                                                       3.5                 3.5
       Normal retirement age (years)
       – Male                                                                                               55                  55
       – Female                                                                                             50                  50




88            Hotel Plaza Limited Annual Report 2008              Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




28 Deferred income taxes
    Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set off current income tax
    assets against current income tax liabilities and when the deferred income taxes relate to the same fiscal authority. The
    amounts, determined after appropriate offsetting, are shown on the balance sheets as follows:
                                                                                   The Group                  The Company
                                                                            2008                2007       2008          2007
                                                                           $’000               $’000      $’000         $’000

    Deferred income tax assets:
    – to be recovered within one year                                       (484)           (1,414)           –               –
    – to be recovered after more than one year                            (1,530)           (2,939)           –               –
                                                                          (2,014)           (4,353)           –               –
    Deferred income tax liabilities:
    – to be settled within one year                                       5,130              4,188       1,608             888
    – to be settled after more than one year                             43,729             42,972      31,274          32,584
                                                                         48,859             47,160      32,882          33,472
                                                                         46,845             42,807      32,882          33,472

    The movements in the deferred income tax account are as follows:
                                                                                   The Group                  The Company
                                                                            2008                2007       2008          2007
                                                         Notes             $’000               $’000      $’000         $’000

    At the beginning of the financial year                                42,807             33,709      33,472          26,261
    Currency translation differences                                       (130)                (99)         –               –
    Effects of change in tax rate:
    – income statement                                     9(a)             (733)              (218)          –            (555)
    – equity                                              30(b)                –               (837)          –            (313)
    Tax charge/(credit) to:
    – income statement                                     9(a)           2,520             10,132         (590)          9,100
    – equity                                              30(d)             (57)                 –            –               –
    Acquisition of subsidiaries                                           2,438                  –            –               –
    Fair value gain on transfer from property, plant
       and equipment to investment property               30(b)               –                120           –              120
    On disposal of property to a subsidiary                                   –                  –           –           (1,141)
    At the end of the financial year                                      46,845             42,807      32,882          33,472

    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 $447,000
    (2007: $800,000) at the balance sheet date 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.




Hotel Plaza Limited Annual Report 2008                            Notes to the Financial Statements                           89
Notes to the Financial Statements
for the financial year ended 31 December 2008




28 Deferred income taxes (continued)
     The movements in the deferred income tax assets and liabilities (prior to offsetting of balances within the same tax jurisdiction)
     during the financial year are as follows:

     The Group
     Deferred income tax liabilities
                                                                          Fair value
                                                                      adjustments
                                                                     on investment
                                                                      property and      Unremitted
                                                                         surplus on          foreign
                                                        Accelerated revaluation of          income,                           Other
                                                                 tax certain hotel     interest and Amortisation         temporary
                                                        depreciation     properties       dividends of intangibles      differences      Total
                                                Notes         $’000           $’000          $’000            $’000          $’000      $’000

     2008
     At the beginning of the financial year                  12,357         30,615           5,144                  –         (956)    47,160
     Currency translation differences                         (316)           (55)              –                  –           37       (334)
     Effects of changes in tax rate:
     – income statement                                        (712)            (88)              –                –            67      (733)
     Charged/(credited) to income
        statement                                            1,194         (1,771)            720               30            155        328
     Acquisition of subsidiaries                                20              –               –            2,455            (37)     2,438
     At the end of the financial year                        12,543         28,701           5,864            2,485           (734)    48,859
     2007
     At the beginning of the financial year                  11,524         22,466           9,465                  –       (1,351)    42,104
     Currency translation differences                           (26)            (2)             2                  –            –         (26)
     Effects of changes in tax rate:
     – income statement                                        (897)             –            (947)                –            50    (1,794)
     – equity                                                     –           (837)              –                 –             –      (837)
     Charged/(credited) to income
        statement                                            1,756           8,868          (3,376)                –          345      7,593
     Fair value gain on transfer from
         property, plant and equipment
         to investment property                 30(b)            –            120               –                  –            –        120
     At the end of the financial year                        12,357         30,615           5,144                  –         (956)    47,160

     Deferred income tax assets
                                                                                          Excess of                Fair value loss
                                                                                       depreciation                 on derivative
                                                                                        over capital                     financial
                                                                                        allowances      Tax losses   instruments         Total
                                                                                             $’000            $’000          $’000      $’000

     2008
     At the beginning of the financial year                                                 (2,183)           (2,170)             –    (4,353)
     Currency translation differences                                                           –               203              –       203
     Charged to income statement                                                              710             1,483              –     2,193
     Credited to equity                                                                         –                 –            (57)      (57)
     At end of the financial year                                                           (1,473)             (484)           (57)   (2,014)
     2007
     At the beginning of the financial year                                                    (996)          (7,399)             –    (8,395)
     Currency translation differences                                                            –               (73)            –        (73)
     Effects of changes in tax rate – income statement                                         242            1,334              –     1,576
     (Credited)/charged to income statement                                                 (1,429)           3,968              –     2,539
     At end of the financial year                                                            (2,183)          (2,170)             –    (4,353)



90            Hotel Plaza Limited Annual Report 2008                     Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




28 Deferred income taxes (continued)
    The Company
    Deferred income tax liabilities
                                                                                                     Fair value
                                                                                                 adjustments
                                                                                                on investment
                                                                                                 property and        Unremitted
                                                                                                    surplus on            foreign
                                                                                   Accelerated revaluation of            income,
                                                                                            tax certain hotel       interest and
                                                                                   depreciation     properties         dividends        Total
                                                                       Notes             $’000           $’000            $’000        $’000

    2008
    At the beginning of the financial year                                               3,193           29,391             888       33,472
    Charged/(credited) to income statement                                                461           (1,771)            720         (590)
    At the end of the financial year                                                     3,654           27,620           1,608       32,882
    2007
    At the beginning of the financial year                                               4,444           20,716           1,101       26,261
    Effects of change in Singapore tax rate
    – equity                                                                                 –            (313)               –        (313)
    – income statement                                                                    (445)              -             (110)       (555)
    Charged/(credited) to income statement                                                 335           8,868             (103)      9,100
    Fair value gain on transfer from property, plant and
       equipment to investment property                                    30(b)            –              120                –          120
    On disposal of property to subsidiary                                              (1,141)               –                –       (1,141)
    At the end of the financial year                                                     3,193           29,391              888      33,472

29 Share capital and share premium of Hotel Plaza Limited
                                                                                                                  Number of
                                                                                                                     shares         Amount
                                                                                                                       ’000          $’000

    2008
    At the beginning and end of the financial year                                                                  600,000          557,333
    2007
    At the beginning of the financial year                                                                          400,000          217,623
    Issue of shares                                                                                                200,000          340,000
    Share issue expenses                                                                                                 –             (290)
    At the end of the financial year                                                                                600,000          557,333

    (a) All issued ordinary shares have no par value and are fully paid.

    (b) In 2007, the Company issued 200,000,000 ordinary shares pursuant to a rights issue with one rights share for every two
        existing shares at an issue price of $1.70 for each rights share, for a total consideration of $340,000,000. The newly issued
        shares rank pari passu in all respects with the previously issued shares.




Hotel Plaza Limited Annual Report 2008                              Notes to the Financial Statements                                      91
Notes to the Financial Statements
for the financial year ended 31 December 2008




30 Reserves
                                                                                     The Group                The Company
                                                                             2008                 2007     2008          2007
                                                                            $’000                $’000    $’000         $’000

     Fair value reserve (Note (a) below)                                   2,392             11,038       2,392        11,038
     Asset revaluation reserve (Note (b) below)                           22,905             22,905      24,425        24,425
     Currency translation reserve (Note (c) below)                       (34,117)             (2,175)         –             –
     Hedging reserve (Note (d) below)                                       (259)                  –          –             –
                                                                          (9,079)            31,768      26,817        35,463

     All the reserves are non-distributable.

     (a) Fair value reserve
                                                                                     The Group                The Company
                                                                             2008                 2007     2008          2007
                                                          Note              $’000                $’000    $’000         $’000

       At the beginning of the financial year                              11,038             10,297      11,038        10,297
       Fair value (losses)/gains on available-for-sale
          financial assets                                     15           (8,646)              741      (8,646)          741
       At the end of the financial year                                      2,392            11,038       2,392        11,038

     (b) Asset revaluation reserve
                                                                                     The Group                The Company
                                                                             2008                 2007     2008          2007
                                                          Notes             $’000                $’000    $’000         $’000

       At the beginning of the financial year                              22,905             21,523      24,425        23,567
       Effect of change in Singapore tax rate                                  –                313           –           313
       Effect of change in Malaysia tax rate                                   –                524           –             –
       Fair value gain arising from the transfer
          of owner-occupied property to
          investment property                                 19                 –                665         –           665
       Deferred tax on fair value gain arising from the
          transfer of owner-occupied property to
          investment property                                 28               –               (120)          –          (120)
                                                                               –              1,382           –           858
       At the end of the financial year                                    22,905             22,905      24,425        24,425

       The asset revaluation reserve does not take into account the surplus of $75,323,000 (2007: $71,142,000) and $524,648,000
       (2007: $588,012,000), arising from the revaluation of the hotel properties of the Company and of the Group respectively
       as stated in Note 19.

     (c) Currency translation reserve
                                                                                   The Group                  The Company
                                                                            2008                2007       2008          2007
                                                                           $’000               $’000      $’000         $’000

       At the beginning of the financial year                              (2,175)            (3,944)         –              –
       Net currency translation differences of financial
          statements of foreign subsidiaries and borrowings
          designated as hedges against foreign subsidiaries             (38,626)              2,989          –              –
       Amount attributable to minority interests                          6,684              (1,220)         –              –
                                                                        (31,942)              1,769          –              –
       At the end of the financial year                                  (34,117)             (2,175)         –              –




92            Hotel Plaza Limited Annual Report 2008               Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




30 Reserves (continued)
    (d) Hedging reserve
                                                                                                                   The Group
                                                                                                            2008                2007
                                                                                                           $’000               $’000

       At the beginning of the financial year                                                                  –                   –
       Fair value loss                                                                                      316                   –
       Deferred tax on fair value loss                                                                      (57)                  –
                                                                                                            259                   –
       Amount attributable to minority interests                                                              –                   –
                                                                                                            259                   –
       At the end of the financial year                                                                      259                   –

       The hedging reserve comprises the effective portion of the cumulated net change in the fair value of interest rate swaps
       for hedged transactions that have not occurred.

31 Dividends
                                                                                                              The Group and
                                                                                                               the Company
                                                                                                            2008           2007
                                                                                                           $’000          $’000

    Final one-tier dividend paid in respect of the previous financial year of 5 cents
        (2007: taxable dividend of 5 cents) per share                                                     30,000          16,400
    Special dividend paid in respect of the previous financial year of nil
        (2007: taxable dividend of 35 cents) per share                                                         –         114,800
                                                                                                          30,000         131,200

    At the Annual General Meeting on 28 April 2009, a final dividend of 4 cents per share amounting to $24,000,000 will be
    recommended. These financial statements do not reflect this dividend, which will be accounted for in the shareholders’
    equity as an appropriation of retained earnings in the financial year ending 31 December 2009.

32 Contingent liabilities
    At the balance sheet date, the Company has given guarantees of $1,300,000 (2007: $31,854,000) and $16,914,000
    (2007: $16,990,000) in respect of banking facilities granted to certain subsidiaries and an associated company respectively.
    The guarantees granted are unsecured.
    The directors are of the view that no material losses will arise from these contingent liabilities.
    The Company has also given undertakings to provide financial support to certain subsidiaries.

33 Commitments
    (a) Capital commitments
       Capital expenditure contracted for at the balance sheet date but not recognised in the financial statements are as follows:
                                                                                      The Group                The Company
                                                                               2008                2007     2008          2007
                                                                              $’000               $’000    $’000         $’000

       Expenditure contracted for
       – property, plant and equipment                                    203,348            210,255       2,861         189,905




Hotel Plaza Limited Annual Report 2008                               Notes to the Financial Statements                            93
Notes to the Financial Statements
for the financial year ended 31 December 2008




33 Commitments (continued)
     (b) Operating lease commitments – where a group company is a lessee
        The Group leases various premises under non-cancellable operating lease agreements. The leases have varying terms,
        escalation clauses and renewal rights.
        The future aggregate minimum lease payable under non-cancellable operating leases contracted for at the balance sheet
        date but not recognised as liabilities, are analysed as follows:
                                                                                                                            The Group
                                                                                                                     2008                2007
                                                                                                                    $’000               $’000

        Not later than one year                                                                                   3,000             1,362
        Later than one year but not later than five years                                                          5,798             3,820
        Later than five years                                                                                      7,802             8,417
                                                                                                                 16,600            13,599

     (c) Operating lease commitments – where a group company is a lessor
        The future minimum lease receivable under non-cancellable operating leases contracted for at the balance sheet date but
        not recognised as receivables, are analysed as follows:
                                                                                         The Group                     The Company
                                                                                  2008                2007          2008          2007
                                                                                 $’000               $’000         $’000         $’000

        Not later than one year                                                 7,923              9,194           4,849            6,783
        Later than one year but not later than five years                        3,240              5,570           1,365            4,067
                                                                               11,163             14,764           6,214           10,850

34 Financial risk management
     Financial risk factors
     The Board of Directors provides guidance for overall risk management. The management continually monitors the Group’s
     risk management process to ensure that an appropriate balance between risk and control is achieved. Risk management
     policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities.
     The Group’s activities expose it to market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity
     risk. The Group’s overall risk management strategy seeks to minimise adverse effects from the unpredictability of financial
     markets on the Group’s financial performance. When necessary, the Group uses financial instruments such as currency
     forwards and foreign currency borrowings to hedge certain financial risk exposures.

     (a) Market risk
        (i) Currency risk
            The Group operates in the Asia Pacific region and is exposed to foreign exchange risk arising from various currency
            exposures primarily with respect to Australian Dollar (“AUD”), Malaysian Ringgit (“MYR”), Renminbi (“RMB”) and
            United States Dollar (“USD”). As the entities in the Group transact substantially in their functional currency, the Group’s
            exposure to currency risk is not significant.
            The Group has a number of investments in foreign subsidiaries whose net assets are exposed to currency translation
            risk. Currency exposures to the net assets of the Group’s subsidiaries in Australia, Malaysia, Myanmar, The People’s
            Republic of China and Vietnam are managed through borrowings, as far as are reasonably practical, in foreign currencies
            which broadly match those in which the net assets are denominated or in currencies that are freely convertible.




94             Hotel Plaza Limited Annual Report 2008                   Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




34 Financial risk management (continued)
    (a) Market risk (continued)
       (i) Currency risk (continued)
           The Group’s currency exposure based on the information provided to key management is as follows:
                                                         SGD         USD          AUD         MYR          RMB      Others       Total
                                                        $’000       $’000        $’000        $’000        $’000     $’000      $’000

           The Group
           At 31 December 2008
           Financial assets
           Cash and cash equivalents                    5,645       3,099      29,328         4,263       3,677     3,073      49,085
           Trade and other receivables and
              other assets                            11,042      11,009        4,451         3,226         993     1,142      31,863
           Available-for-sale financial assets         12,968           –            –             –           –         –      12,968
                                                      29,655      14,108       33,779         7,489       4,670     4,215      93,916
           Financial liabilities
           Trade and other payables                   (21,111)     (8,700)     (7,915)      (5,077)       (7,430)   (4,522) (54,755)
           Borrowings                                 (94,232)          –           –      (19,563)            –         – (113,795)
           Rental deposits                               (529)       (131)          –         (160)            –         –      (820)
           Derivative financial instruments               (316)          –           –            –             –         –      (316)
                                                     (116,188)     (8,831)     (7,915)     (24,800)       (7,430)   (4,522) (169,686)
           Net financial assets/(liabilities)          (86,533)      5,277      25,864      (17,311)       (2,760)    (307)    (75,770)
           Less: Net financial assets/(liabilities)
             denominated in the respective
             entities’ functional currencies          86,489          964     (25,746)      17,311        2,760     (1,692)    80,086
           Currency exposure                             (44)       6,241         118            –            –     (1,999)     4,316

           The Group
           At 31 December 2007
           Financial assets
           Cash and cash equivalents                 183,965      10,350       27,595         2,387       4,807     1,414     230,518
           Trade and other receivables and
              other assets                            10,084       8,465        5,622         3,521         594       719      29,005
           Available-for-sale financial assets         21,633           –            –             –           –         –      21,633
                                                     215,682      18,815       33,217         5,908       5,401     2,133     281,156
           Financial liabilities
           Trade and other payables                   (17,632)    (10,943)    (10,203)        (6,428)     (3,636)   (1,208) (50,050)
           Borrowings                                 (72,572)      (3,033)     (5,964)     (21,819)           –         – (103,388)
           Advances from holding company                  (900)          –           –             –           –         –       (900)
           Rental deposits                              (1,927)       (143)          –             –           –         –     (2,070)
                                                      (93,031)    (14,119)    (16,167)      (28,247)      (3,636)   (1,208) (156,408)
           Net financial assets/(liabilities)         122,651        4,696      17,050       (22,339)      1,765       925     124,748
           Less: Net financial assets/(liabilities)
             denominated in the respective
             entities’ functional currencies         (122,661)      3,329     (16,903)      22,420        (1,765)     (481) (116,061)
           Currency exposure                               (10)     8,025         147           81             –       444     8,687




Hotel Plaza Limited Annual Report 2008                                Notes to the Financial Statements                             95
Notes to the Financial Statements
for the financial year ended 31 December 2008




34 Financial risk management (continued)
     (a) Market risk (continued)
       (i) Currency risk (continued)
           The Group does not have significant exposure to currency risk other than USD. Assuming that the USD changes against
           the SGD by 5% (2007: 3%) 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)
                                                                                                                 2008            2007
                                                                                                                $’000           $’000

           The Group
           USD against SGD
           – strengthened                                                                                        312             240
           – weakened                                                                                           (312)           (240)

           The Company’s currency exposure based on the information provided to key management is as follows:
                                                                                                        USD         AUD         MYR
                                                                                                       $’000       $’000        $’000

           The Company
           At 31 December 2008
           Financial assets
           Cash and cash equivalents                                                                     108          68           –
           Trade and other receivables and other assets                                                4,869         170           –
           Loans to subsidiaries                                                                      85,398           –       1,452
           Loan to an associated company                                                               4,264           –           –
                                                                                                      94,639         238       1,452
           Financial liabilities
           Loans from subsidiaries                                                                   (63,734)           –           –
                                                                                                     (63,734)           –           –
           Currency exposure                                                                          30,905         238       1,452

           The Company
           At 31 December 2007
           Financial assets
           Cash and cash equivalents                                                                   6,883          83           –
           Trade and other receivables and other assets                                                  459         213           –
           Loans to subsidiaries                                                                      98,882       5,723       1,521
           Loan to an associated company                                                               4,283           –           –
                                                                                                     110,507       6,019       1,521
           Financial liabilities
           Loans from subsidiaries                                                                   (64,021)           –           –
                                                                                                     (64,021)           –           –
           Currency exposure                                                                          46,486       6,019       1,521




96            Hotel Plaza Limited Annual Report 2008             Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




34 Financial risk management (continued)
    (a) Market risk (continued)
       (i) Currency risk (continued)
           Assuming that the USD, AUD and MYR change by a respective 5% (2007: 3%, 1% and nil respectively) against the
           SGD with all other variables including tax rate being held constant, the effects on the Company’s profit after tax will be
           as follows:
                                                                                                                  Increase/(Decrease)
                                                                                                                 2008             2007
                                                                                                                $’000            $’000

           The Company
           USD against SGD
           – strengthened                                                                                       1,545            1,395
           – weakened                                                                                          (1,545)          (1,395)
           AUD against SGD
           – strengthened                                                                                          12               60
           – weakened                                                                                             (12)             (60)
           MYR against SGD
           – strengthened                                                                                          73                –
           – weakened                                                                                             (73)               –

       (ii) Price risk
           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 balance sheet 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.
       (iii) Cash flow and fair value interest rate risks
           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 a financial instrument will
           fluctuate due to changes in market interest rates.
           The Group’s exposure to cash flow interest rate risks arises mainly from variable-rate borrowings. 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 interest rates and when appropriate, manages
           their exposure to changes in interest rates by entering into fixed rate arrangements where necessary.
           The Group’s and Company’s variable-rate financial assets and liabilities on which effective hedges have not been
           entered into, are denominated mainly in Singapore Dollar, United States Dollar, Malaysian Ringgit and Australian Dollar.
           Assuming that the interest-rates change by 1% with all other variables including tax rate being held constant, the
           effects on the profit after tax will be as follows:
                                                                                     The Group                    The Company
                                                                              2008                2007         2008          2007
                                                                             $’000               $’000        $’000         $’000

           SGD                                                                 444                602        (1,224)            (462)
           USD                                                                   –                 23          (687)            (792)
           MYR                                                                 147                 42             –                –
           AUD                                                                   –                155             –                –




Hotel Plaza Limited Annual Report 2008                                Notes to the Financial Statements                              97
Notes to the Financial Statements
for the financial year ended 31 December 2008




34 Financial risk management (continued)
     (b) Credit risk
       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 receivables. For trade
       receivables, the Group adopts the policy of dealing only with customers of appropriate credit history, and obtaining
       sufficient security such as deposits and bankers’ guarantees where appropriate to mitigate credit risk. Bank deposits were
       mainly placed with financial institutions which have 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 approved by the
       respective management at the entity level based on ongoing credit evaluation. The customer’s or counterparty’s payment
       profile and credit exposure are continuously monitored at the entity level by the respective management and at Group
       management.
       The Group’s and Company’s maximum exposure to credit risk on corporate guarantees provided to banks on subsidiaries’
       and an associated company’s loans are disclosed in Note 32.
       The credit risk of trade receivables based on the information provided to key management is as follows:
                                                                                      The Group                    The Company
                                                                               2008                2007         2008          2007
                                                                              $’000               $’000        $’000         $’000

       By geographical areas
       Singapore                                                             6,320              8,845         1,589            1,917
       Australia                                                             3,730              4,151             –                –
       The People’s Republic of China                                          427                456             –                –
       Malaysia                                                              2,385              3,151             –                –
       Vietnam                                                               2,226              1,858             –                –
       Myanmar                                                                 331                376             –                –
       Others                                                                1,254                 15             –                –
                                                                            16,673             18,852         1,589            1,917
       By operating segments
       Property investments                                                    655                596           655              595
       Hotel ownership                                                      12,170             18,256           934            1,322
       Hotel management services                                             3,848                  –             –                –
                                                                            16,673             18,852         1,589            1,917

       (i) Financial assets that are neither past due nor impaired
           Bank deposits that are neither past due nor impaired are mainly deposits with banks with high credit-ratings assigned
           by international credit rating agencies. Trade receivables that are neither past due nor impaired are substantially
           companies with a good collection track record with the Group.

       (ii) Financial assets that are past due and/or impaired
           There is no other class of financial assets that is past due and/or impaired except for trade receivables and loans to
           subsidiaries and an associated company. The age analysis of trade and other receivables past due but not impaired
           is as follows:
                                                                                      The Group                    The Company
                                                                               2008                2007         2008          2007
                                                                              $’000               $’000        $’000         $’000

           Past due 0 to 3 months                                            4,271              5,292            112             133
           Past due 3 to 6 months                                              550                957              –               –
           Past due over 6 months                                              194                177              –               –
                                                                             5,015              6,426            112             133




98            Hotel Plaza Limited Annual Report 2008                 Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




34 Financial risk management (continued)
    (b) Credit risk (continued)
       (ii) Financial assets that are past due and/or impaired (continued)
           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 are as follows:
                                                                                  The Group                      The Company
                                                                           2008                2007           2008          2007
                                                                          $’000               $’000          $’000         $’000

           Gross amount                                                     564                274           6,035          6,053
           Less: Allowance for impairment                                  (527)              (256)         (2,500)        (2,553)
                                                                             37                 18           3,535          3,500
           Beginning of financial year                                       256                644              53             33
           Acquisition of subsidiaries                                      378                  –               –              –
           Allowance made                                                   339                166               –         2,532
           Allowance utilised                                              (446)              (554)            (53)           (12)
           End of financial year                                             527                256               –         2,553

    (c) Liquidity risk
       The table below analyses the maturity profile of the Group’s and the Company’s financial liabilities based on contractual
       undiscounted cash flows:
                                                                                        Less than         Between        Between
                                                                                           1 year     1 and 2 years   2 to 5 years
                                                                                            $’000             $’000          $’000

       The Group
       At 31 December 2008
       Trade and other payables                                                            51,570               –              –
       Borrowings                                                                          16,384          10,811         97,608
       Net settled interest rate swaps                                                         93              93             71
       Rental deposits                                                                      3,185             763             57
                                                                                           71,232          11,667         97,736
       At 31 December 2007
       Trade and other payables                                                            50,050               –              –
       Borrowings                                                                          29,080          76,511          3,533
       Advances from holding company                                                            –             936              –
       Rental deposits                                                                        140           1,954            116
                                                                                           79,270          79,401          3,649




Hotel Plaza Limited Annual Report 2008                           Notes to the Financial Statements                              99
Notes to the Financial Statements
for the financial year ended 31 December 2008




34 Financial risk management (continued)
      (c) Liquidity risk (continued)
                                                                                            Less than        Between           Between
                                                                                               1 year    1 and 2 years      2 to 5 years
                                                                                                $’000            $’000             $’000

         The Company
         At 31 December 2008
         Trade and other payables                                                               9,109              –                    –
         Borrowings                                                                             9,447              –                    –
         Loans from subsidiaries                                                                  851        118,328                    –
         Rental deposits                                                                        1,841            473                   57
                                                                                               21,248        118,801                   57
         At 31 December 2007
         Trade and other payables                                                              10,619              –                    –
         Borrowings                                                                                 –         76,511                    –
         Advances from holding company                                                              –            936                    –
         Loans from subsidiaries                                                                    –         79,667                    –
         Rental deposits                                                                          140          1,810                  116
                                                                                               10,759        158,924                  116

         The Group and the Company manage the liquidity risk by maintaining sufficient cash to enable them to meet their normal
         operating commitments, having an adequate amount of committed credit facilities.

      (d) Capital risk
         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 or achieve an
         optimal capital structure, the Group may, subject to the necessary approvals from the shareholders and/or the regulatory
         authorities, adjust the amount of dividend payment, return capital to shareholders, issue 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 borrowings to
         shareholders’ equity not exceeding 150%.
                                                                                                                         The Group
                                                                                                                 2008                 2007
                                                                                                                $’000                $’000

         Total borrowings                                                                                    113,795           104,288
         Shareholders’ equity                                                                                743,808           801,837
         Total borrowings to shareholders’ equity ratio                                                         15%               13%

         The Group and the Company are in compliance with the banks’ imposed capital requirements for the financial years
         ended 31 December 2008 and 2007.

35 Fair values
      Other than as disclosed in Note 12(d) and Note 26, the carrying values of the financial assets and liabilities approximate their
      fair values.




100            Hotel Plaza Limited Annual Report 2008                Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




36 Related party transactions
    (a) In addition to the related party information disclosed elsewhere in the financial statements, there were the following
        significant transactions between the Group and related companies during the financial year on terms agreed between the
        parties concerned:
                                                                                 The Group                   The Company
                                                                          2008                2007        2008          2007
                                                                         $’000               $’000       $’000         $’000

       Transactions with UOL and its subsidiaries
       Acquisition of Pan Pacific operations                            21,346                       –   21,346                  –
       Staff costs recharges for corporate management and
          property maintenance services received                        3,328              3,809         3,328           3,809
       Purchases of furniture                                               –                597             –               –
       Fees received for management of hotels and
          serviced suites                                                  407                      –        –                  –
       Transactions with banks and insurance companies
          in which certain directors have interests
       Interest earned from fixed deposits                               1,630              2,293           118                466
       Rental and maintenance fees received                               255                245            42                 24
       Interest paid on bank loans                                      1,461              1,591         1,267                459
       Commitment and facility fee paid                                   171                305           152                240
       Bankers’ guarantee commission                                        6                  5             2                  2
       Rental paid                                                        781                653             –                  –
       Insurance premium paid                                             377                285            88                112

    (b) Key management personnel compensation is analysed as follows:
                                                                                                                 The Group
                                                                                                          2008                2007
                                                                                                         $’000               $’000

       Salaries and other short-term employee benefits                                                    1,591           1,094
       Directors’ fees                                                                                     432             448
       Post-employment benefits – contribution to CPF                                                        61              27
       Share options granted                                                                                29              66
                                                                                                         2,113           1,635

       Total compensation to directors of the Company included in above amounted to $792,000 (2007: $841,000).




Hotel Plaza Limited Annual Report 2008                          Notes to the Financial Statements                               101
Notes to the Financial Statements
for the financial year ended 31 December 2008




37 Group segmental information
      (a) Primary reporting format – business segments
                                                                                        Hotel
                                                           Hotel         Property management
                                                       ownership     investments     services     Investments   Eliminations         Total
                                                           $’000            $’000       $’000           $’000          $’000        $’000

        Financial year ended
        31 December 2008
        Revenue:
        – External                                     296,556          13,135          4,268           1,266           –       315,225
        – Inter-segment                                      –              41          6,517           4,981     (11,539)            –
                                                       296,556          13,176         10,785           6,247     (11,539)      315,225
        Segment results                                 62,647            8,735         1,228           1,266             –       73,876
        Miscellaneous income                               804                6           248               –             –        1,058
        Other losses                                   (37,000)          (9,840)            –               –             –      (46,840)
        Operating profits                                26,451           (1,099)        1,476           1,266             –       28,094
        Finance income                                                                                                             2,958
        Finance expenses                                                                                                          (1,747)
        Share of profit of associated companies                                                                                     1,946
        Profit before income tax                                                                                                   31,251
        Income tax expense                                                                                                       (15,829)
        Net profit                                                                                                                 15,422
        Other segment items
        Capital expenditure
        – property, plant and equipment                 38,461               59            109              –             –      38,629
        – property under development                   201,183                –              –              –             –     201,183
        Depreciation                                    28,305              470            157              –             –      28,932
        Amortisation                                         –                –            282              –             –         282
        Segment assets                                 764,481         157,862         25,545          12,968             –      960,856
        Associated companies                                                                                                       8,242
        Loan to an associated company                                                                                              4,264
        Unallocated assets                                                                                                        32,374
        Consolidated total assets                                                                                              1,005,736
        Segment liabilities                             50,418            2,955         4,767               –             –      58,140
        Unallocated liabilities                                                                                                 180,325
        Consolidated total liabilities                                                                                          238,465




102           Hotel Plaza Limited Annual Report 2008               Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




37 Group segmental information (continued)
    (a) Primary reporting format – business segments (continued)
                                                                           Hotel       Property
                                                                       ownership   investments    Investments   Eliminations         Total
                                                                           $’000          $’000         $’000          $’000        $’000

       Financial year ended 31 December 2007
       Revenue:
       – External                                                      277,202         11,691           1,266           –       290,159
       – Inter-segment                                                   7,808             41           5,515     (13,364)            –
                                                                       285,010         11,732           6,781     (13,364)      290,159
       Segment results                                                  51,892          7,380           1,266             –       60,538
       Miscellaneous income                                              1,106             31               –             –         1,137
       Other gains                                                           –         49,267               –             –       49,267
       Operating profits                                                 52,998         56,678           1,266             –     110,942
       Finance income                                                                                                               3,247
       Finance expenses                                                                                                            (6,901)
       Share of profit of associated companies                                                                                       1,907
       Profit before income tax                                                                                                  109,195
       Income tax expense                                                                                                        (21,187)
       Net profit                                                                                                                  88,008
       Other segment items
       Capital expenditure
       – property, plant and equipment                                  60,399            140               –             –      60,539
       – investment property                                                 –          3,502               –             –       3,502
       Depreciation                                                     28,595            514               –             –      29,109
       Amortisation                                                        100              –               –             –         100
       Segment assets                                                  703,508       168,412           21,633             –      893,553
       Associated companies                                                                                                        6,283
       Loan to an associated company                                                                                               4,283
       Unallocated assets                                                                                                        144,006
       Consolidated total assets                                                                                               1,048,125
       Segment liabilities                                              49,504          4,651               –             –      54,155
       Unallocated liabilities                                                                                                  164,184
       Consolidated total liabilities                                                                                           218,339

       With the acquisition of the Pan Pacific operations (see note 11(c)) during the financial year, the Group is now organised into
       four main business segments:
       (i) Hotel ownership             – operation of hotels in Singapore, Australia, Vietnam, Malaysia, The People’s Republic
                                         of China (“PRC”) and Myanmar.
       (ii) Property investments       – rental income received from commercial properties and serviced apartments.
       (iii) Hotel management services – provision of management services to hotels.
       (iv) Investments                – dividend income from equity investments.
       The division of the Group’s results and assets into business segments and geographical segments has been ascertained
       by reference to direct identification of assets and revenue/cost centres.
       Inter-segment transactions are recorded at their transacted price which is generally at fair value.
       Segment assets consist primarily of property, plant and equipment, investment properties, available-for-sale financial
       assets, intangibles, inventories, receivables and operating cash, and exclude investments in associated companies, loan
       to an associated company, fixed deposits, tax recoverable and deferred income tax assets.
       Segment liabilities comprise operating liabilities and exclude tax and corporate borrowings.
       Capital expenditure comprises additions to property, plant and equipment and investment properties, and expenditure for
       property under development.


Hotel Plaza Limited Annual Report 2008                             Notes to the Financial Statements                                   103
Notes to the Financial Statements
for the financial year ended 31 December 2008




37 Group segmental information (continued)
      (b) Secondary reporting format – geographical segments
        The Group’s four business segments operate in six main geographical areas. In Singapore, where the Company is
        domiciled, the areas of operation of the Company are principally hotel ownership, hotel management services, property
        owner and investment holdings.
        The main activities in Australia, Vietnam, Malaysia, China and Myanmar consist of hotel operations.
        Revenue, segment results, total assets and capital expenditure are shown by the geographical areas where the assets
        are located.
                                                                      Operating                        Total                 Capital
                                             Revenue                profits/(losses)             consolidated assets        expenditure
                                          2008           2007      2008            2007          2008          2007      2008         2007
                                         $’000          $’000     $’000           $’000         $’000         $’000     $’000        $’000

        Singapore                     99,980        83,848      (15,197)       70,985   559,657   568,913             210,330      21,964
        Australia                    104,025        96,643       22,465        17,342   161,581   205,899               3,713      24,271
        Vietnam                       41,198        37,068       16,219        12,754    67,002    67,416               3,135       1,854
        Malaysia                      40,176        41,352        2,249          5,990  108,841   115,125               3,218      11,016
        China                         22,966        25,682        3,202          5,020   92,377    80,862              18,855       4,703
        Myanmar                        5,986         5,566         (134)        (1,149)  10,255     9,910                 561         233
        Others                           894             –         (710)             –    6,023         –                   –           –
                                     315,225       290,159       28,094       110,942 1,005,736 1,048,125             239,812      64,041

38 New or revised accounting standards and interpretations
      Certain new standards, amendments and interpretations to existing standards have been published and are mandatory for
      the Group’s accounting periods beginning on or after 1 January 2009 or later periods and which the Group has not early
      adopted. The Group’s assessment of the impact of adopting those standards, amendments and interpretations that are
      relevant to the Group is set out below:

      (a) FRS 1(R) Presentation of Financial Statements
        The revised standard requires:
        • All changes in equity arising from transactions with owners in their capacity as owners to be presented separately from
           components of comprehensive income;
        • Components of comprehensive income not to be included in statement of changes in equity;
        • Items of income and expenses and components of other comprehensive income to be presented either in a single
           statement of comprehensive income with subtotals, or in two separate statements (a separate statement of profit and
           loss followed by a statement of comprehensive income);
        • Presentation of restated balance sheet as at the beginning of the comparative period when entities make restatements
           or reclassifications of comparative information.
        The revisions also include changes in the titles of some of the financial statements primary statements.
        The Group will apply the revised standard from 1 January 2009 and provide comparative information that conforms to the
        requirements of the revised standard. The key impact of the application of the revised standard is the presentation of an
        additional primary statement, that is, the statement of comprehensive income.

      (b) FRS 108 Operating Segments
        FRS 108 supersedes FRS 14 Segment Reporting and requires the Group to report the financial performance of its
        operating segments based on the information used internally by management for evaluating segment performance and
        deciding on allocation of resources. Such information may be different from the information included in the financial
        statements, and the basis of its preparation and reconciliation to the amounts recognised in the financial statements shall
        be disclosed.
        The Group will assess the impact of FRS 108 from 1 January 2009 and where necessary, will provide comparative
        information that conforms to the requirements of FRS 108.




104            Hotel Plaza Limited Annual Report 2008                     Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 31 December 2008




38 New or revised accounting standards and interpretations (continued)
    (c) Revised FRS 23 Borrowing Costs
       The revised standard removes the option to recognise immediately as an expense borrowing costs that are attributable to
       qualifying assets, except for those borrowing costs on qualifying assets that are measured at fair value or inventories that
       are manufactured or produced in large quantities on a repetitive basis.
       The Group will apply the revised FRS 23 from 1 January 2009. As the Group has been capitalising the relevant borrowing
       costs, the revised standard is not expected to have any impact to the Group.

39 Authorisation of financial statements
    These financial statements were authorised for issue in accordance with a resolution of the Board of Directors of Hotel Plaza
    Limited on 24 February 2009.




Hotel Plaza Limited Annual Report 2008                             Notes to the Financial Statements                           105
Corporate Governance Report
for the year ended 31 December 2008




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 a framework
of corporate governance policies and practices in line with the principles and guidelines set out in the Code of Corporate
Governance 2005 (“Code”).

Principle 1: The Board’s Conduct of its Affairs
The principal responsibilities of the Board are:
1. reviewing and approving the corporate policies, strategies, budgets and financial plans of the Company;
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, financial
   reporting and compliance;
4. approving major funding proposals, investments, acquisitions and divestment proposals;
5. planning board and senior management succession and the remuneration policies; and
6. assuming responsibility for corporate governance.
To facilitate effective management, certain functions of the Board have been delegated to various Board Committees, which
review and make recommendations to the Board on specific areas. There are currently four standing board committees appointed
by the Board, namely:
      Executive Committee
      Nominating Committee
      Remuneration Committee
      Audit Committee
The membership and attendance of the Directors for the four standing board committees are set out on page 110.
The Board has conferred upon the Executive Committee (“EXCO”) and Group Chief Executive (“GCE”) certain discretionary
limits and powers for capital expenditure, budgeting, treasury and investment activities and human resource management. The
levels of authorisation required for specified transactions are specified in a Charter adopted by the Board during the financial
year 2006.
The EXCO and GCE 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 GCE in turn issues a chart of authority
and limits for capital expenditure, budgets, investment and other activities for Management’s compliance.
In addition to the GCE, the key personnel leading the management team are the President & Chief Executive Officer (“President
& CEO”), Executive Director, Asset Management (“ED, Asset Management”) and Chief Financial Officer (“CFO”). Save for the ED
Asset Management, the President & CEO and CFO have no familial relationship with each other or with the Chairman.
The EXCO currently comprises four members, namely:
      Wee Cho Yaw, Chairman
      Gwee Lian Kheng
      Alan Choe Fook Cheong
      Wee Ee Chao
The EXCO is chaired by the Chairman of the Board and has been given certain authority and functions such as the formulation
and review of policies, overall planning and review of strategy as well as dealing with business of an urgent, important or
extraordinary nature whilst the GCE is responsible for the day-to-day operations and administration of the Group.
The Board conducts regular scheduled meetings on a quarterly basis. Ad-hoc meetings are convened when circumstances
require. The Company’s Articles of Association (“Articles”) allow a board meeting to be conducted 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 110.
New directors are provided with information on the corporate background, the key personnel, the core businesses, the group
structure and financial statements of the Group. Guidance is also given to all Directors on regulatory requirements concerning
disclosure of interests and restrictions on dealings in securities and training is made available to Directors on updates/
developments in the regulatory framework and environment affecting the Company including those organised by the Singapore
Exchange Securities Trading Limited (“SGX-ST”) and the Singapore Institute of Directors.




106           Hotel Plaza Limited Annual Report 2008               Corporate Governance Report
Corporate Governance Report
for the year ended 31 December 2008




Principle 2: Board Composition and Balance
Currently, the Board comprises nine Directors, four of whom are independent.
With four Board members being independent directors constituting more than one-third of the Board, and such independent
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.
The Articles allow for the maximum of ten Directors. The Board considers the current board size is appropriate, taking into
account the nature and scope of the Group’s operations.
The current Board comprises persons who possess diverse corporate experiences and as a group, the relevant qualifications
and experience and core competencies necessary to manage the Group.

Principle 3: Chairman and Group Chief Executive (“GCE”)
The Company has a separate Chairman and GCE. The Chairman and GCE have no familial relationship with each other. The GCE
has the executive responsibility for the day-to-day operations of the Group. On the other hand, the Chairman provides leadership
to the Board. He sets the meeting agenda in consultation with the GCE and ensures that Directors are provided with accurate,
timely and clear information.

Principle 4: Board Membership
The Nominating Committee (“NC”), currently comprises three non-executive Directors of whom two are independent. The NC
members are:
    Alan Choe Fook Cheong, Chairman
    Lim Kee Ming
    Wee Cho Yaw
The NC is also responsible for re-nomination of Directors at regular intervals and at least every three years. In recommending 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.
The independence of the Board is also reviewed annually by the NC. The NC adopts the Code’s definition of what constitutes an
independent director in its review. As a result of the NC’s review of the independence of each Director for this financial year, the
NC is of the view that, save for Wee Cho Yaw, Gwee Lian Kheng, Wee Ee Chao, Wee Wei Ling and Wee Ee Lim, all Directors are
independent Directors. Each NC member has abstained from deliberations in respect of his own assessment.
Alan Choe Fook Cheong is a non-executive director of The LearningLab Education Centre Pte Ltd, which is a tenant of
United Square (owned by UOL Property Investments Pte Ltd, a wholly-owned subsidiary of the Company’s holding company,
UOL Group Limited (“UOL”)) from whom rental proceeds exceeding S$200,000 in the year 2008 were received. The NC, with
Alan Choe abstaining, regards Alan Choe as an independent Director because he is able to maintain his objectivity and
independence at all times in the discharge of his duties as Director of the Company.
Directors of or over 70 years of age are required to be re-appointed every year at the Annual General Meeting (“AGM”) under
Section 153(6) of the Companies Act before they can continue to act as a Director. The NC, with each member abstaining
in respect of his own re-appointment, has recommended to the Board that Wee Cho Yaw, Alan Choe Fook Cheong and
Lim Kee Ming, who are over 70 years of age, be nominated for re-appointment at the forthcoming AGM.
Article 94 of the Articles also require all Directors except a Managing Director to retire from office once at least in each three
years. These Directors may offer themselves for re-election if eligible. The NC has recommended that Gwee Lian Kheng and
Wee Wei Ling, who retire by rotation pursuant to this Article, be nominated for re-election as well.
The NC recommends all appointments and re-appointments of Directors to the Board. New directors are appointed by way of
a board resolution after the NC recommends their appointment for approval of the Board. New directors thus appointed must
submit themselves for re-election at the next AGM pursuant to Article 99 of the Articles.
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 process, to ensure the
search for the right candidates is as objective and comprehensive as possible.
Details of the Directors’ academic qualifications and other appointments are set out on pages 14 to 17.

Principle 5: Board Performance
The NC has assessed the contributions of each Director to the effectiveness of the Board and evaluated the performance of the
Board as a whole. In evaluating the performance of the Board as a whole, the NC has adopted certain quantitative indicators
which include return on equity, return on assets and the Company’s share price performance.




Hotel Plaza Limited Annual Report 2008                             Corporate Governance Report                                 107
Corporate Governance Report
for the year ended 31 December 2008




Principle 6: Access to Information
Currently, Directors receive regular financial and operational reports on the Group’s businesses and briefings during its quarterly
Board meetings, together with management reports comparing actual performance with budget, highlighting key performance
indicators. During the quarterly Board meetings, key Management staff who are able to explain and provide insights to the
matters to be discussed at the Board meetings are invited to make the appropriate presentations and answer any queries from
Directors. Directors who require additional information may approach senior Management directly and independently.
Under the direction of the Chairman, the Company Secretary is responsible for ensuring good information flow 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.
Directors have separate and independent access to the advice and services of the Company Secretary and may, either individually
or as a group, in the furtherance of their duties and where necessary, obtain independent professional advice at the Company’s
expense.
The Company Secretary and/or the Deputy Company Secretary attends all Board meetings and ensures that all Board procedures
are followed. The Company Secretary, together with Management, ensures that the Company complies with the requirements
of the Companies Act and the Listing Manual of the SGX-ST.

Principle 7: Procedures for Developing Remuneration Policies
The Remuneration Committee (“RC”) currently comprises three non-executive Directors of whom two are independent. The RC
members are:
      Lim Kee Ming, Chairman
      Wee Cho Yaw
      Alan Choe Fook Cheong
The RC is currently chaired by an independent Director. The RC is responsible for ensuring a formal procedure for 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 of remuneration, including
without limitation, directors’ fees, salaries, allowances, bonuses, options and benefits-in-kind.

Principle 8: Level and Mix of Remuneration
In determining remuneration packages, the RC takes into consideration industry practices and norms in compensation.
In relation to Directors, the performance-linked elements of the remuneration package for executive Directors are designed to
align their interests with those of shareholders. For non-executive Directors, their remuneration is appropriate to their level of
contribution, taking into account factors such as effort and time spent as well as their respective responsibilities.
Gwee Lian Kheng, an executive Director of the Company, has an employment contract with UOL, which may be terminated by
either party giving 3 months’ notice. His remuneration package includes a variable bonus element (which is substantially linked
to the performance of UOL) and share options of UOL.
Wee Wei Ling, an executive Director of the Company, has an employment contract with the Company which may be terminated
by either party giving 2 months’ notice. Her remuneration package includes a variable bonus element (which is substantially
linked to the performance of the Company).
The RC makes recommendations to the Board on directors’ fees and allowances. RC members abstain from deliberations in
respect of their own remuneration. Details of the total fees and other remuneration of the Directors are set out in the Remuneration
Report on page 113. The GCE’s remuneration package is reviewed by the Remuneration Committee of UOL.

Principle 9: Disclosure on Remuneration
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, retain and motivate
employees. The typical remuneration package comprises both fixed and variable components, with a base salary making up
the fixed component and a variable component in the form of a performance bonus 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 113.

Principle 10: Accountability
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 required. Management
provides to members of the Board for their endorsement, annual budgets and targets, and management accounts which present
a balanced and understandable assessment of the Company’s performance, position and prospects.




108           Hotel Plaza Limited Annual Report 2008               Corporate Governance Report
Corporate Governance Report
for the year ended 31 December 2008




Principle 11: Audit Committee (“AC”)
The AC comprises three members, with the members having many years of related accounting and financial management
expertise and experience, and all of whom are independent and non-executive Directors. The AC members are:
    Lim Kee Ming, Chairman
    Alan Choe Fook Cheong
    Low Weng Keong
The AC carries out the functions set out in the Code and 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 internal audit
procedures and proposals for improvements in internal controls, the independent auditor’s report on the weaknesses of internal
accounting controls arising from the statutory audit, the cost effectiveness, independence and objectivity of the external auditors
and interested persons transactions.
In performing the functions, the AC has met with the internal and external auditors, without the presence of Management,
at least annually and reviewed the overall scope of the internal and external audits and the assistance given by Management to
the auditors.
The AC has explicit authority to investigate any matter within its terms of reference. It has full access to, and the co-operation of
Management, and full discretion to invite any Director or executive officer to attend its meetings. It has reasonable resources to
enable it to discharge its functions properly.
The AC has reviewed and is satisfied with the independence and objectivity of the external auditors and recommends to the
Board the nomination of PricewaterhouseCoopers LLP for re-appointment.
During the year, the AC has reviewed the Code of Business Conduct, (“CBC”) which was adopted in 2006. 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 matters. The objective of such arrangement is to
ensure independent investigation of such matters and for appropriate follow-up action.

Principle 12: Internal Controls
The Board recognises the importance of sound internal controls and risk management practices as part of good corporate
governance. The Board is responsible for ensuring that Management maintains a sound system of internal controls to safeguard
shareholders’ investments and the assets of the Group. 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.
As the Group continues to expand its business portfolio, it is exposed to a variety of risks. It has put in place guidelines and
strategies to manage these risks and to safeguard its business. The key types of risks include operational risks, financial risks
and investment risks.

Operational Risks
The Group’s operational risk framework is designed to ensure that operational risks are continually identified, managed and
mitigated. This framework is implemented at each operating unit and in the case of the Group’s hotels, 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 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 to transfer and/or mitigate certain portions of risks, the Group also maintains
insurance covers at levels determined to be appropriate taking into account the cost of cover and risk profiles of the businesses
in which it operates. Complementing the Management’s role is the internal audit which provides an independent perspective on
the controls that help to mitigate major operational risks.

Financial Risks
The Group is exposed to a variety of financial risks, including interest rates, foreign currency, credit and liquidity risks.
The management of financial risks is outlined under Note 34 of the Notes to the Financial Statements.

Investment Risks
The Board and EXCO have overall responsibility for determining the level and type of business risk the Group undertakes.
All major investment proposals are submitted to the EXCO and the Board for approval. Ongoing performance monitoring and
asset management of new and existing investments are performed by the Group.




Hotel Plaza Limited Annual Report 2008                              Corporate Governance Report                                  109
Corporate Governance Report
for the year ended 31 December 2008




Principle 13: Internal Audit

The Internal Audit Department of the Group is independent of the activities it audits.
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 Senior Manager (Internal Audit) has a direct reporting line to the AC, with administrative
reporting to the GCE.
The Internal Audit Department aims to meet or exceed the Standards for the Professional Practice of Internal Auditing set by the
Institute of Internal Auditors. As part of its audit activities, the Internal Audit Department reviews all interested party transactions
and ensure that the necessary controls are in place and are complied with.
The Internal Audit function is adequately resourced and has appropriate standing within the Group. The Senior Manager (Internal
Audit), who is employed by UOL, joined UOL in October 1997 and holds a Bachelor 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.

Principle 14: Communication with Shareholders
Principle 15: Greater Shareholder Participation
The Group engages in regular, effective and fair communication with its shareholders through the quarterly release of the
Group’s results, the timely release of material information through the SGXNET of SGX-ST and the publication of the Annual
Report. Shareholders and investors can also visit the Company’s website at www.hpl.com.sg.
The Company also encourages greater shareholder participation at its annual general meetings and allows shareholders the
opportunity to communicate their views on various matters affecting the Company. The Chairpersons of the EXCO, NC, RC and
AC are present and available 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.

Dealings in Securities
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 securities of the Group from two
weeks to one month, as the case may be, before the announcement of the Group’s quarterly and full-year financial results and
ending on the date of announcement of the results, or at any time they are in possession of unpublished material price sensitive
information.

Attendance at Board and Board Committee Meetings
                                                                                 Number of meetings attended in 2008
Name of Directors                                                     Board        EXCO          AC           RC              NC
Wee Cho Yaw                                                             4             1                          1             2
Gwee Lian Kheng                                                         4             1
Alan Choe Fook Cheong                                                   4             1             4            1             2
Lim Kee Ming                                                            4                           4            1             2
Wee Ee Chao                                                             3             1
Low Weng Keong                                                          4                           4
Wee Wei Ling                                                            4
James Koh Cher Siang                                                    4
Wee Ee Lim                                                              4
Number of meetings held in 2008                                         4             1             4            1             2




110          Hotel Plaza Limited Annual Report 2008                  Corporate Governance Report
Corporate Governance Report
for the year ended 31 December 2008




Particulars of Directors

                                                                          Directorship:         Board appointment
                                                                          Date first appointed   Executive/
Name of Director/                                   Board Committees      Date last             Non-executive
Academic & Professional                             as Chairman           re-appointed/         Independent/
Qualifications                                 Age   or Member             re-elected            Non-independent

Wee Cho Yaw                                   79    EXCO – Chairman       25.05.1973            Non-executive
Chinese high school;                                RC – Member           23.04.2008            Non-independent
Honorary Doctor of Letters,                         NC – Member
National University of Singapore
Gwee Lian Kheng                               68    EXCO – Member         20.01.1987            Executive
Bachelor of Accountancy (Hons),                                           25.04.2007            Non-independent
University of Singapore;
Fellow of Chartered Institute of
Management Accountants,
Chartered Certified Accountants,
and Institute of Chartered
Secretaries and Administrators;
Member of Institute of Certified
Public Accountants of Singapore
Alan Choe Fook Cheong                         77    EXCO – Member         02.05.1990            Non-executive
Bachelor of Architecture,                           AC – Member           23.04.2008            Independent
University of Melbourne;                            RC – Member
Diploma in Town & Regional Planning,                NC – Chairman
University of Melbourne;
Fellowship Diploma, Royal Melbourne
Institute of Technology;
Fellow of Singapore Institute of
Architects, Singapore Institute of
Planners, and Royal Australian
Institute of Architects;
Member of Royal Institute of
British Architects, Royal Town
Planning Institute, Royal Australian
Planning Institute and American
Planning Association
Lim Kee Ming                                  81    AC – Chairman         01.06.1995            Non-executive
Master of Science                                   RC – Chairman         23.04.2008            Independent
(International Trade & Finance),                    NC – Member
Columbia University, New York;
Bachelor of Science
(Business Administration),
New York University, USA
Wee Ee Chao                                   54    EXCO – Member         09.05.2006            Non-executive
Bachelor of Business Administration,                                      25.04.2007            Non-independent
The American University, Washington DC, USA




Hotel Plaza Limited Annual Report 2008                Corporate Governance Report                                   111
Corporate Governance Report
for the year ended 31 December 2008




Particulars of Directors (continued)
                                                                                                        Directorship:              Board appointment
                                                                                                        Date first appointed        Executive/
Name of Director/                                                             Board Committees          Date last                  Non-executive
Academic & Professional                                                       as Chairman               re-appointed/              Independent/
Qualifications                                                        Age      or Member                 re-elected                 Non-independent

Low Weng Keong                                                       56       AC – Member               23.11.2005                 Non-executive
Fellow of CPA Australia,                                                                                23.04.2008                 Independent
Institute of Chartered Accountants
in England & Wales and Institute of
Certified Public Accountants
of Singapore;
Associate Member of Chartered
Institute of Taxation (UK)
Wee Wei Ling                                                         56       Nil                       24.03.1994                 Executive
Bachelor of Arts, Nanyang University                                                                    19.04.2006                 Non-independent
James Koh Cher Siang                                                 62       Nil                       23.11.2005                 Non-executive
Bachelor of Arts (Hons) in Philosophy,                                                                  23.04.2008                 Independent
Political Science and Economics
and Master of Arts from
University of Oxford, UK;
Master in Public Administration,
Harvard University, USA
Wee Ee Lim                                                           47       Nil                       09.05.2006                 Non-executive
Bachelor of Arts (Economics),                                                                           25.04.2007                 Non-independent
Clark University, USA

Notes:
1) Directors’ shareholdings in the Company and related corporations, please refer to pages 45 and 46.
2) Directorships or Chairmanships in other listed companies and other major appointments, both present and over the preceding 3 years, please refer to pages 14
   to 17.




112             Hotel Plaza Limited Annual Report 2008                              Corporate Governance Report
Corporate Governance Report
for the year ended 31 December 2008




Remuneration Report
Remuneration of Directors
The following table shows a breakdown (in percentage terms) of the remuneration of Directors for the year ended 31 December 2008:
                                                                                                     Defined
                                                                                 Directors’        Contribution                             Total
Remuneration Bands                           Salary            Bonuses              fees              Plans               Others         Remuneration
                                               %                 %                   %                 %                    %                %

$250,000 to $500,000
Wee Wei Ling 1                                 54                 27                  9                  1                   9                 100
Below $250,000
Wee Cho Yaw, Chairman                           –                  –                 100                  –                  –                100
Gwee Lian Kheng                                 –                  –                 100                  –                  –                100
Alan Choe Fook Cheong                           –                  –                 100                  –                  –                100
Lim Kee Ming                                    –                  –                 100                  –                  –                100
Wee Ee Chao                                     –                  –                 100                  –                  –                100
Low Weng Keong                                  –                  –                 100                  –                  –                100
James Koh Cher Siang                            –                  –                 100                  –                  –                100
Wee Ee Lim                                      –                  –                 100                  –                  –                100
1   Wee Wei Ling is the daughter of Wee Cho Yaw and sister of Wee Ee Chao and Wee Ee Lim.

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).
Gwee Lian Kheng, the other executive Director of the Company, has an employment contract with UOL.

Remuneration of key employees
The remuneration 1 of the top five key employees of the Group (who are not directors) is analysed into the respective remuneration
bands as follows:
$500,000 to $750,000
President & Chief Executive Officer (Joined on 21 July 2008)

$250,000 to $500,000
Chief Financial Officer
Below $250,000
Senior Vice President, Performance Management 2
Senior Vice President, Marketing & Sales 2
Senior Vice President, Operations 2
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.
2   The disclosure relates to the post-acquisition remuneration of these employees of the Pan Pacific operation which was acquired by the Company in
    October 2008.




Hotel Plaza Limited Annual Report 2008                                         Corporate Governance Report                                             113
Interested Person Transactions


                                                               Aggregate value of all interested
                                                               person transactions during
                                                               the financial year under review
                                                               (excluding transactions less          Aggregate value of all interested
                                                               than $100,000 and transactions        person transactions conducted
                                                               conducted under shareholders’         under shareholders’ mandate
                                                               mandate pursuant to Rule 920          pursuant to Rule 920 (excluding
Name of interested person                                      of the Listing Manual)                transactions less than $100,000)
                                                                               $’000                                $’000

UOL Group Limited (“UOL”)
For interest on borrowings                                                         –                                        21
For management and corporate support services
provided to the Hotel Plaza Limited Group:
– Share of payroll                                                                 –                                 1,618
– Administrative fee                                                               –                                    77
For the acquisition of Pan Pacific operations                                 21,346                                          –

UOL’s subsidiary –
UOL Management Services Pte Ltd
For property management and security
services provided to the Hotel Plaza Limited Group:
– Payroll                                                                          –                                 1,553
– Retainer fee                                                                     –                                    80
For the lease of office premises to the Company for
a term of 44.5 months                                                              –                                   149

UOL’s subsidiary –
UOL Property Investments Pte Ltd
For the lease of office premises to the Company for
a term of 44.5 months                                                              –                                        81

UOL’s subsidiary –
Novena Square Investments Ltd
For the lease of office premises to the Company for
a term of three years                                                              –                                 2,972




Material Contracts


Except as disclosed under the section on Interested Person Transactions above and in Note 36 (Related Party Transactions) of
the Notes to the Financial Statements, there were no other material contracts of the Company or its subsidiaries involving the
interests of the Chief Executive Officer (as defined in the SGX-ST Listing Manual), each director or controlling shareholder, either
still subsisting at the end of the financial year or if not then subsisting, entered into since the end of the previous financial year.




114          Hotel Plaza Limited Annual Report 2008                 Interested Person Transactions and Material Contracts
Shareholding Statistics
as at 9 March 2009




Size of Shareholdings
                                                                             No. of
Range                                                                  shareholders                 %              No. of Shares              %

1 – 999                                                                           39          0.54                       6,716            0.00
1,000 – 10,000                                                                 6,407         88.04                  19,553,954            3.26
10,001 – 1,000,000                                                               819         11.25                  33,365,816            5.56
1,000,001 and above                                                               12          0.17                 547,073,514           91.18
Total                                                                          7,277        100.00                 600,000,000          100.00

Location of shareholders
                                                                             No. of
Country                                                                shareholders                 %               No. of Shares             %

Singapore                                                                      7,157         98.35                 597,689,484           99.61
Malaysia                                                                          73          1.00                     635,501            0.11
Others                                                                            47          0.65                   1,675,015            0.28
Total                                                                          7,277        100.00                 600,000,000          100.00

Twenty Largest Shareholders
Name                                                                                                           No. of Shares                  %

1. UOL Group Limited                                                                                           435,000,000               72.50
2. DBS Nominees Pte Ltd                                                                                         64,105,505               10.68
3. Tye Hua Nominees (Pte) Ltd                                                                                   29,616,000                4.94
4. United Overseas Bank Nominees Pte Ltd                                                                         4,554,159                0.76
5. Citibank Nominees Singapore Pte Ltd                                                                           3,608,000                0.60
6. HSBC (Singapore) Nominees Pte Ltd                                                                             2,038,500                0.34
7. DBSN Services Pte Ltd                                                                                         1,844,000                0.31
8. OCBC Nominees Singapore Pte Ltd                                                                               1,683,350                0.28
9. Morph Investments Ltd                                                                                         1,454,000                0.24
10. Phillip Securities Pte Ltd                                                                                   1,120,000                0.19
11. Oversea-Chinese Bank Nominees Pte Ltd                                                                        1,030,000                0.17
12. Ong Kian Kok                                                                                                 1,020,000                0.17
13. UOB Kay Hian Pte Ltd                                                                                           991,000                0.17
14. Teo Kok Kheng                                                                                                  800,000                0.13
15. Kim Eng Securities Pte. Ltd.                                                                                   750,000                0.13
16. NTUC Thrift & Loan Co-operative Limited                                                                        703,000                0.12
17. Wee Aik Koon Pte Ltd                                                                                           580,000                0.10
18. Citibank Consumer Nominees Pte Ltd                                                                             560,000                0.09
19. Goh Geok Ling                                                                                                  513,000                0.09
20. Mayban Nominees (S) Pte Ltd                                                                                    477,000                0.08
Total                                                                                                          552,447,514               92.09

Based on information available to the Company as at 9 March 2009, approximately 18.2% 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

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 DBS Nominees Pte Ltd (“DBS Nominees”).
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 DBS Nominees for the benefit of UOL.


Hotel Plaza Limited Annual Report 2008                                    Shareholding Statistics                                             115
116
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         ($)




                                                                                                                                                                                                                                                                                                                                                                       0.2
                                                                                                                                                                                                                                                                                                                                                                                      0.6
                                                                                                                                                                                                                                                                                                                                                                                                      1.0
                                                                                                                                                                                                                                                                                                                                                                                                                      1.4
                                                                                                                                                                                                                                                                                                                                                                                                                                       1.8
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       2.6
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 3.0




                                                                                                                                                                                                                                                                                                                                                                                                                                                       2.2




                                                                                                                                                                                          8




                                                                                                                                                                                  4
                                                                                                                                                                                      6
                                                                                                                                                                                              10
                                                                                                                                                                                                   12
                                                                                                                                                                                                        14




                                                                                                                                                                          0
                                                                                                                                                                              2
                                                                                                                                                                                                                                                                                                                                                                             0.520 0.540




                                                                                                                                                                                                               (Million)
                                                                                                                                                                                                                                                                                                                                                                             0.520 0.565
                                                                                                                                                                                                                                                                                                                                                                              0.530 0.555
                                                                                                                                                                                                                                                                                                                                                                             0.520 0.570
                                                                                                                                                                                                                                                                                                                                                                             0.515     0.570




                                                                                                                                                                                                                           Turnover
                                                                                                                                                                                                                                                                                                                                                                               0.550      0.620
                                                                                                                                                                                                                                                                                                                                                                               0.560 0.600




                                         2004
                                                                                                                                                                                                                                      2004
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Share Price
                                                                                                                                                                                                                                                                                                                                                                               0.555        0.660
                                                                                                                                                                                                                                                                                                                                                                                 0.610 0.640
                                                                                                                                                                                                                                                                                                                                                                                 0.605 0.630
                                                                                                                                                                                                                                                                                                                                                                                  0.620          0.795
                                                                                                                                                                                                                                                                                                                                                                                      0.740      0.795
                                                                                                                                                                                                                                                                                                                                                                                       0.765      0.825
                                                                                                                                                                                                                                                                                                                                                                                        0.770 0.795
                                                                                                                                                                                                                                                                                                                                                                                         0.805     0.855
                                                                                                                                                                                                                                                                                                                                                                                           0.840 0.875
                                                                                                                                                                                                                                                                                                                                                                                           0.845     0.895
                                                                                                                                                                                                                                                                                                                                                                                             0.900      0.960
                                                                                                                                                                                                                                                                                                                                                                                               0.940      1.000




                                                                                                                                                                                                                                      2005




                                         2005
                                                                                                                                                                                                                                                                                                                                                                                                0.980       1.040




Hotel Plaza Limited Annual Report 2008
                                                                                                                                                                                                                                                                                                                                                                                                 1.000 1.020
                                                                                                                                                                                                                                                                                                                                                                                                 0.995      1.050
                                                                                                                                                                                                                                                                                                                                                                                                 1.000 1.030
                                                                                                                                                                                                                                                                                                                                                                                                  1.020      1.070
                                                                                                                                                                                                                                                                                                                                                                                                    1.060        1.170
                                                                                                                                                                                                                                                                                                                                                                                                      1.120 1.160
                                                                                                                                                                                                                                                                                                                                                                                                        1.150             1.380
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             for the period from 1 January 2004 to 31 December 2008




                                                                                                                                                                                                                                                                                                                                                                                                             1.280        1.390
                                                                                                                                                                                                                                                                                                                                                                                                       1.130           1.310
                                                                                                                                                                                                                                                                                                                                                                                                      1.110         1.240
                                                                                                                                                                                                                                                                                                                                                                                                         1.180       1.260




                                                                                                                                                                                                                                      2006




                                         2006
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Share Price and Turnover




                                                                                                                                                                                                                                                                                                                                                                                                         1.170 1.210
                                                                                                                                                                                                                                                                                                                                                                                                          1.200         1.330
                                                                                                                                                                                                                                                                                                                                                                                                               1.320           1.520
                                                                                                                                                                                                                                                                                                                                                                                                                    1.440     1.490
                                                                                                                                                                                                                                                                                                                                                                                                                    1.450         1.590
                                                                                                                                                                                                                                                                                                                                                                                                                        1.530       1.650
                                                                                                                                                                                                                                                                                                                                                                                                                            1.630                 2.020
                                                                                                                                                                                                                                                                                                                                                                                                                                      1.910                   2.340
                                                                                                                                                                                                                                                                                                                                                                                                                                                      2.300              2.600




Share Price and Turnover
                                                                                                                                                                                                                                                                                                                                                                                                                                         1.990                          2.570
                                                                                                                                                                                                                                                                                                                                                                                                                                          2.010                2.380
                                                                                                                                                                                                                                                                                                                                                                                                                                             2.100            2.350




                                                                                                                                                                                                                                      2007




                                         2007
                                                                                                                                                                                                                                                                                                                                                                                                                               1.780                   2.170
                                                                                                                                                                                                                                                                                                                                                                                                                                             2.040       2.200
                                                                                                                                                                                                                                                                                                                                                                                                                                              2.100       2.240
                                                                                                                                                                                                                                                                                                                                                                                                                              1.800                   2.130
                                                                                                                                                                                                                                                                                                                                                                                                                          1.690        1.840
                                                                                                                                                                                                                                                                                                                                                                                                                       1.620         1.780
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Low
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    High




                                                                                                                                                                                                                                                                                                                                                                                                                           1.730        1.870
                                                                                                                                                                                                                                                                                                                                                                                                                              1.810       1.910
                                                                                                                                                                                                                                                                                                                                                                                                                                 1.890         2.020
                                                                                                                                                                                                                                                                                                                                                                                                                               1.830        1.950
                                                                                                                                                                                                             Turnover
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Prices for
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       2004-2007




                                                                                                                                                                                                             2004-2007
                                                                                                                                                                                                                                                                                                                                                                                                                          1.690            1.930
                                                                                                                                                                                                                                                                                                                                                                                                                    1.560        1.680
                                                                                                                                                                                                                                      2008




                                         2008
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Low
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    High




                                                                                                                                                                                                                                                                                                                                                                                                              1.390           1.600
                                                                                                                                                                                                                                                                                                                                                                                                           1.300         1.460
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       2008




                                                                                                                                                                                                             2008


                                                                                                                                                                                                                                                                                                                                                                                                   1.090             1.360
                                                                                                                                                                                                                                                                                                                                                                                                        1.230      1.320
                                                                                                                                                                                                             Turnover
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Prices for




                                                                                                                                                                                                                                                                                                                                                                                                1.010             1.290
                                                                                                                                                                                                                                             J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D




                                                J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
Notice of Annual General Meeting


Notice is hereby given that the 40th Annual General Meeting of the Company will be held at Pan Pacific Singapore, Ocean 3-5,
Level 2, 7 Raffles Boulevard, Marina Square, Singapore 039595, on Tuesday, 28 April 2009, at 3.00 p.m. to transact the following
business:

As Ordinary Business
Resolution 1        To receive the Financial Statements and the Reports of the Directors and the Auditors for the year ended
                    31 December 2008.

Resolution 2        To declare a first and final tax-exempt (one-tier) dividend of 4 cents per ordinary share for the year ended
                    31 December 2008.

Resolution 3        To approve Directors’ fees of S$442,500 for 2008 (2007: S$465,000).

Resolution 4        To re-appoint Dr Wee Cho Yaw, who retires pursuant to Section 153(6) 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 5        To re-appoint Mr Alan Choe Fook Cheong, who retires pursuant to Section 153(6) 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 6        To re-appoint Mr Lim Kee Ming, who retires pursuant to Section 153(6) 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 Gwee Lian Kheng, who retires by rotation pursuant to Article 94 of the Company’s Articles
                    of Association, as Director of the Company.

Resolution 8        To re-elect Ms Wee Wei Ling, who retires by rotation pursuant to Article 94 of the Company’s Articles of
                    Association, as Director of the Company.

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

As Special Business
To consider and, if thought fit, to pass with or without amendments, the following resolutions as Ordinary Resolutions:

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
                        (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;
                        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 while this Resolution was in force,
                    provided that:
                    (1) the aggregate number of shares to be issued pursuant to this Resolution (including shares to be issued
                        in pursuance of Instruments made or granted pursuant to this 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 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);




Hotel Plaza Limited Annual Report 2008                              Notice of Annual General Meeting                             117
Notice of Annual General Meeting


                     (2) (subject to such manner of calculation as may be prescribed by the Singapore Exchange 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 issued shares shall be based on the total number of issued
                         shares (excluding treasury 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.”



BY ORDER OF THE BOARD

Foo Thiam Fong Wellington

Secretary
Singapore, 3 April 2009

Notes
A member entitled to attend and vote at the Meeting is entitled to appoint not more than two proxies to attend and vote in his stead. A proxy need not be a
member of the Company.
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.




Notes to Resolutions
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.
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 is considered an
   independent director.
3. In relation to Resolution 6, Mr Lim Kee Ming will, upon re-appointment, continue as the Chairman of the Audit and
   Remuneration Committees, and as a member of the Nominating Committee. He is considered an independent director.
4. In relation to Resolution 7, Mr Gwee Lian Kheng will, upon re-election, continue as a Member of the Executive Committee.
   He is considered an executive non-independent director.
5. In relation to Resolution 8, Ms Wee Wei Ling is considered an executive non-independent director.
6. Resolution 10 is to empower the Directors from the date of that meeting until the next Annual General Meeting to issue, or
   agree to issue shares and/or grant instruments that might require shares to be issued, 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 issued other than on a pro rata basis to shareholders of the Company
   does not exceed twenty per cent (20%) of the total number of issued shares (excluding treasury shares) in the capital of the
   Company (calculated as described).




118            Hotel Plaza Limited Annual Report 2008                          Notice of Annual General Meeting
Proxy Form                                                                                 Important: For CPF investors only
                                                                                           1. For investors who have used their CPF monies to buy Hotel Plaza
                                                                                              Limited’s shares, this Report is sent to them at the request of their CPF


Annual General Meeting                                                                        Approved Nominee and is sent solely FOR INFORMATION ONLY.
                                                                                           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.
                                                                                           3. CPF Investors who wish to attend the Meeting as OBSERVERS have to
HOTEL PLAZA LIMITED                                                                           submit their requests through their respective Agent Banks so that their
(incorporated in the Republic of Singapore)                                                   Agent Banks may register with the Company’s Registrar (Please see
Company Registration No. 196800248D                                                           Note No. 9 on the reverse).




I/We,                                                                                                                                                        (Name)
of                                                                                                                                                       (Address)
being a member/members of HOTEL PLAZA LIMITED (the “Company”), hereby appoint:

 Name                                    Address                                           NRIC/Passport No.                   Proportion of Shareholdings
                                                                                                                                   No. of Shares                %



and/or (please delete as appropriate)

                                                                                                                                   No. of Shares                %



or failing him/her, the Chairman of the Meeting as my/our proxy/proxies to attend and vote for me/us on my/our behalf
and, if necessary, to demand a poll, at the 40th Annual General Meeting of the Company (the “AGM”) to be held at Pan
Pacific Singapore, Ocean 3-5, Level 2, 7 Raffles Boulevard, Marina Square, Singapore 039595 on Tuesday, 28 April 2009
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/proxies will vote or abstain from
voting at his/their discretion, as he/they will on any other matter arising at the AGM. The authority herein includes the right to
demand or to join in demanding a poll and to vote on a poll.

                                                                                                   To be used                              To be used
                                                                                               on a show of hands                     in the event of a poll
 Resolution                                                                                                                       No. of Votes No. of Votes
  Number Ordinary Resolutions                                                                   For*             Against*            For**      Against**
        1      Adoption of Financial Statements and Reports of the
               Directors and the Auditors
        2      Declaration of First and Final Dividend
        3      Approval of Directors’ Fees
        4      Re-appointment (Dr Wee Cho Yaw)
        5      Re-appointment (Mr Alan Choe Fook Cheong)
        6      Re-appointment (Mr Lim Kee Ming)
        7      Re-election (Mr Gwee Lian Kheng)
        8      Re-election (Ms Wee Wei Ling)
        9      Re-appointment of Auditors and Authority for Directors to
               Fix Their Remuneration
      10       Authority for Directors to Issue Shares

*    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                              2009

 Shares in:                                Total No. of Shares Held
 (a) Depository Register
 (b) Register of Members
 Total
                                                                                          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
   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 all the Shares held by you.
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.
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’
   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 3 Church Street, #08-01 Samsung Hub, Singapore 049483, at least 48 hours before the time fixed
   for holding the AGM.

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   PROXY FORM


                                                                                                                                                      Please affix
                                                                                                                                                     postage stamp


                                                                 THE COMPANY SECRETARY
                                                              HOTEL PLAZA LIMITED
                                                                     101 THOMSON ROAD
                                                                    #33-00 UNITED SQUARE
                                                                      SINGAPORE 307591




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   3RD FOLD HERE
designed and produced by
greymatter williams and phoa (asia)
Hotel Plaza Limited
101 Thomson Road
#33-00 United Square
Singapore 307591

Tel: (65) 6255 0233
Fax: (65) 6252 9822

Company Registration No. 196800248D




hpl.com.sg                            This report is printed on recycled paper

				
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