CDL HTrust (J85) Annual Reports

CDL Hospitality Trusts is a stapled group comprising CDL Hospitality Real

Estate Investment Trust (“H-REIT”), a real estate investment trust and CDL

Hospitality Business Trust (“HBT”), a business trust.

H-REIT, the first hotel real estate investment trust (“REIT”) in Singapore, is

established with the principal investment strategy of investing, directly or

indirectly, in a diversified portfolio of income-producing real estate which is

primarily used for hospitality and/or hospitality-related purposes, whether

wholly or partially, and real estate-related assets in relation to the

foregoing.

The initial asset portfolio of H-REIT, as at the Listing Date, comprises

Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel and Copthorne King’s

Hotel, all of which are located in Singapore and marketed as “superior” hotels,

with a total of over 1,900 rooms as at 9 June 2006, as well as Orchard Hotel

Shopping Arcade, the shopping arcade adjoining Orchard Hotel. Orchard Hotel

Shopping Arcade is included in H-REIT’s portfolio as it is complementary to the

guest facilities at the Orchard Hotel, providing shopping and leisure

facilities to hotel guests.

HBT is a business trust which will be dormant at at Listing Date. It exists

primarily as “a master lessee of last resort” and will become active if H-REIT

is unable to appoint a master lessee for any of the Hotels in its portfolio at

the expiry of the relevant master lease agreement or for a newly acquired

hotel. HBT may also become active if it undertakes certain hospitality and

hospitality-related development projects, acquisitions and investments which

may not be suitable for H-REIT.