RESULTS PRESENTATION 2015

2

2

DISSAPOINTING GLOBAL GROWTH

• Global economy showing sluggish growth at 0.1% to 2.6% in 2014 and 2.7% for Q1 2015

• Recent global market turmoil as a result of China economic slowdown and currency devaluation

• Commodity linked emerging markets have been particularly hard hit through global de-risking

and evaporation of global carry trade

ECONOMIC OVERVIEW

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2012 2013 2014 2015F 2016F 2017F

GDP Growth*

World High Income Developing* World Bank Forecasts July 2015

3

3

OUTLOOK ON DOMESTIC ECONOMIC CONDITIONS

• GDP slowed to 1.5% in 2014; GDP growth flat for H1 2015. Downside risks:

› Increased pressure on output and exports due to continued structural constraints

› Protracted structural challenges limiting growth capacity

• Rand depreciation and consequent inflationary effects versus contracting economic growth

have brought into question the likelihood and timing of future interest rate hikes

ECONOMIC OVERVIEW

3.0% 3.2%

2.2% 2.2%1.5%

2.0% 1.8%2.4%

4.3%5.0%

5.7% 5.8% 6.1%

4.8%

6.2%5.4%

0.00%

2.00%

4.00%

6.00%

8.00%

2010 2011 2012 2013 2014 2015e 2016e 2017e

Real GDP CPISource: Nedbank August 2015

4

4

GLOBAL TOURISM

• International tourist arrivals grew by 4.4% in 2014 (1,1billion)

• International tourist receipts, strongly correlated to arrivals, grew by 3.7% to $1 245 billion

• Top long haul source markets in 2014 were USA, UK, China, Canada, Japan and Germany

• Arrivals to Africa grew by 2% to 56 million and are forecast to grow by 3% - 5% in 2015

• European outbound travel is expected to rise 3% in 2015

• MICE market share continues to rise as traditional business trip segment declines due to

technological solutions

GLOBAL TOURISM

› lead by strong growth in the Americas (+8%),

Asia and the Pacific (+5%) and the Middle

East (+5%)

5

5

AFRICAN HOTEL MARKET

• Africa showed 2% increase in arrivals to 56 million while receipts showed growth at 3% to

$36 billion

• Fear of Ebola outbreak in North Africa impacted arrivals to the entire African continent

• With African markets maturing, global hotel chains are shifting towards the multi-brand

approach

SOUTH AFRICAN HOTEL MARKET

• SA tourism contributes 9.4% to GDP employing around 1,7 million people

• Domestic tourists down by 4% to 12 million (2014) contributing about 57% to total tourism

expenditure

• New visa regulations and biometric requirements suggested to have caused 7% decline in

foreign arrivals in Q1 2015

AFRICAN & SA HOTEL MARKET

6

6

SA HOTEL DEVELOPMENT PIPELINE – SHORT TO MEDIUM TERM

• High-end hotels trading at a discount to replacement costs reducing supply risk

• Long-lead time needed to develop competitive products, up to 36 months

• Development Pipeline:

› Upscale:

– Radisson Residence CT (214 keys)

– The Houghton Hotel (143 keys of which 55 rentable)

› Midscale:

– City Lodge Johannesburg CBD (148 keys)

– Radisson Red CT (V&A) (235 keys)

– SunSquare CT (200 keys)

› Economy:

– Road Lodge Pietermaritzburg (90 keys)

– CTICC Expansion

– StayEasy CT (300 keys)

SA HOTEL PIPELINE

7

7

RISKS FACING SA HOTEL MARKET

• Stringent visa requirements

• Deterioration of infrastructure

• Airline capacity issues

• Reduced government spending

• Labour unrest – strikes

• Security concerns

• Xenophobia

• Competition from unregulated accommodation businesses such as AirBnB

• Terror impact on African markets

• African disease outbreak such as Ebola

8

8

SOUTH AFRICAN TOURISM MARKET

• International tourist arrivals showed meagre growth of 0.1% to 9,5 million in 2014

SA TOURISM MARKET

2.1%-3.8%

6.4%4.6% 4.0%

5.0% 4.4%5.7%

3.8%

15.1%

3.3%

10.2%

4.7%

0.1%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

2008 2009 2010 2011 2012 2013 2014

International Tourist Arrivals (growth %)

Global South Africa

Sources: Stats SA & UNWTO

9

9

MAY 2014 – APRIL 2015: SOURCE MARKET OVERSEAS ARRIVALS

SA TOURISM MARKET

-

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

500 000

2014 2015 Sources: Stats SA

Immigration & Biometric requirements

10

10

MAY 2014 – APRIL 2015: SOURCE MARKET OVERSEAS & AFRICA ARRIVALS

SA TOURISM MARKET

-

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

7 000 000

8 000 000

Overseas Africa

2014 2015 Sources: Stats SA

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11

NOMINAL GDP AND REVPAR GROWTH RATES

NOMINAL GDP & REVPAR GROWTH

-20%

-10%

0%

10%

20%

30%

40%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Q1

% C

han

ge

GDP Growth RevPAR

FIFA World

Cup 2010

Global Recession

ZAR depreciation

12

12

13

13

TRADING FIGURES OUTPERFORM THE OVERALL MARKET (JULY 2014 – JUNE 2015)

THE YEAR IN REVIEW

61.4% 62.3% 62.0% 62.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

HPF'14 STR'14 HPF'15 STR'15

Occupancy HPF* vs STR

R 1 162

R 992

R 1 237

R 1 051

R 0

R 200

R 400

R 600

R 800

R 1 000

R 1 200

R 1 400

HPF'14 STR'14 HPF'15 STR'15

ADR HPF* vs STR

* HPF YE June 2015 data for traditional F&V and Variable hotels (i.e. excluding conference hotels)

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14

HPF’S OCCUPANCY CYCLE*

THE YEAR IN REVIEW

66.3% 66.0% 68.3%

55.6%

53.4%51.4%

57.5% 60.1%61.4% 62.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Peak Occupancy

* HPF YE June 2015 data for traditional F&V and Variable hotels excluding conference hotels.

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15

YEAR END 30 JUNE 2015

THE YEAR IN REVIEW

YE2014 YE2015

Gross Rental Income

R 426 million 1.8% R 434 million

Portfolio Value

R 4,83 billion

6.8%R 5,16billion

Weighted Average Cost of Debt

9.14% -0.2% 9.12%

Total Debt

R 1,77 billion 5.1% R1,86 billion

YE2014 YE2015

Net Asset Value per Linked Unit

1 140cents

3.0%1 174cents

Distributable Debenture Interest

R240 million -2.8% R 233 million

Gearing (% of asset value)

36.7% -1.9% 36.0%

Interest Cover Ratio

2.64x -7.2% 2.45x

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16

YEAR END 30 JUNE 2015

THE YEAR IN REVIEW

-87%

129%

83%

-61%

-100%

-50%

0%

50%

100%

150%Y-on-Y Growth

-7%

19%

5% 5%

-20%

-10%

0%

10%

20%Y-on-Y Growth

7.91c18.08c

33.45c

13.15c

-

50

100

150

200

2012 2013 2014 2015

B Linked Unit Distribution

113.08c134.63c 141.35c 148.43c

-

50

100

150

200

2012 2013 2014 2015

A Linked Unit Distribution

17

17

Q2 AND Q3 ARE THE STRONGEST PERFORMING MONTHS IN TERMS OF EBITDA

THE YEAR IN REVIEW

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

Q1 (Jul-Sep) Q2 (Oct-Dec) Q3 (Jan-Mar) Q4 (Apr-Jun)’12 ‘13 ‘14 ‘15 ’12 ‘13 ‘14 ‘15 ’12 ‘13 ‘14 ‘15 ’12 ‘13 ‘14 ‘15

EBIT

DA

R’m

illion

18

18

LEASE EXPIRY PROFILE (CY) –WEIGHTED AVERAGE EXPIRY 12.1 YEARS

THE YEAR IN REVIEW

14 16 18 20 22 24 26 28 30 32 34 36 38

Protea Hotel - The Winkler

Protea Hotel - The Richards

The Bayshore Inn

Protea Hotel Imperial

Protea Hotel Hazyview

Protea Hotel Hluhluwe & Safaris

Premier Hotel King David

Holiday Inn Sandton - Rivonia Road

Kopanong Hotel & Conference Centre

Crowne Plaza Johannesburg - The Rosebank

Inn on the Square

Protea Hotel Edward

Champagne Sports Resort

Protea Hotel Marine

Protea Hotel Richards Bay

Arabella Hotel and Spa

Birchwood Executive Hotel & OR Tambo…

Mount Grace Country House & Spa

Protea Hotel Victoria Junction

Radisson Blu Gautrain Hotel

Radisson Blu Waterfront

Westin Cape Town

Initial Period Option Period(s)

Non-core

Non-core

Non-core

Sold

Sold

Under Offer

Under Offer

19

19

DEBT MATURITY PROFILE AS AT 30 JUNE 2015 (R’MILLION)

STRATEGIC PLAN

-

100

200

300

400

500

600

700

Nedbank Secured Note Unsecured Note

20

20

CAPEX SPENT IN 2015 (R53 MILLION)

• Birchwood - Soft refurbishment of 167 rooms relaunched as “The Silverbirch Hotel”; Capex

spent: R20,7 million

• Mount Grace Country House & Spa - Development of a Mountain Bike and a Kids Club

and Replacement of all thatched roofing across the resort; Capex spent R13,2 million

• Radisson Blu Gautrain Hotel - Refurbishment of the reception level including; Capex spent

R3 million

• Radisson BluWaterfront - Refurbishment of public and reception areas including the

conference rooms and business centre; Capex spent R9,0 million

• Westin Cape Town - Construction of outside swimming pool; Capex spent R7,3 million

PROPERTY PORTFOLIO

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21

ACQUISITIONS

• 25 additional units at Radisson BluWaterfront (R76 million)

• 4 additional units and 25 parking bays at Radisson Blu Gautrain Hotel (R12,4 million)

• 35% undivided share in 215 rooms at Birchwood (R60 million)

PROPERTY PORTFOLIO

Radisson BluWaterfront

22

22

DISPOSALS

• Interests in 4 Courtyard properties (sold R80 million)

• PH The Richards (sold R46 million)

• PH Hluhluwe & Safaris (sold R14,5 million)

• Premier King David (under offer)

• PH Imperial (under offer)

• PH Richards Bay (under negotiation)

• Kopanong Hotel & Conference Centre (3 sold to date)

• Bayshore Inn

• PH Hazyview

• PH The Winkler

PROPERTY PORTFOLIO

PH Hluhluwe & Safaris

PH Imperial

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23

SA HOSPITALITY OUTLOOK

• Pessimistic market outlook driven by concerns relating to new visa regulations negatively

affecting the foreign leisure and foreign business segments

• International source markets to continue to decline amid visa regulation ‘crisis’ somewhat

offset by weaker Rand

• Government conferencing rate ceiling expected to be relaxed in the next 12 months

• Minimal occupancy growth expectation, RevPAR growth driven by inflationary rate growth

• SA hotel development pipeline focused on Cape Town, 4-5 new developments by 2018

• Continued above inflation pressure on salaries & wages and utility costs

• Weaker Rand lead to South African leisure traveller to remain local

MARKET OUTLOOK

24

24

• Tough trading conditions to continue until the economy picks up

• Focus on:

› Driving revenues

› Operational efficiencies

› Value extraction

• Capital restructure

• Tsogo potential transaction

› Issue of shares for property

› Conversion to single share class

• REIT conversion

THE YEAR AHEAD

Mount Grace Country House & Spa – Kids Club

25

25

DISTRIBUTION TIMEFRAME

November

S M T W T F S

1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30

September

S M T W T F S

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30

Last day to trade cum interest 11 September

Linked units trade ex-interest 14 September

Record date 18 September

Payment date 21 September

Annual general meeting 13 November

RESULTS PRESENTATION 2015