Annual Report 2017
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Annual Report 2017 Stock code : 1270 LANGHAM HOSPITALITY INVESTMENTS CORPORATE PROFILE Langham Hospitality Investments has been established primarily to own and invest in a portfolio of hotels, with an initial focus on completed hotels in Asia. The initial asset portfolio comprises of: The Langham, Hong Kong; Cordis, Hong Kong; and Eaton, Hong Kong. The Langham and Cordis are both High Tariff A hotels and Eaton is a High Tariff B hotel under the classification set out by Hong Kong Tourism Board, with High Tariff A being the highest category and High Tariff B being the second highest category. Each of the Hotels is located on the Kowloon peninsula in Hong Kong, a vibrant commercial and leisure hub which offers a variety of activities ranging from shopping, food and beverage, and entertainment to cultural attractions. The Hotels are also located near well- connected transportation hubs in Hong Kong allowing guests to enjoy access to other leisure and business districts in Hong Kong. CONTENTS 10 Corporate Information and Financial Calendar 12 Distribution Notice 13 Financial Highlights 14 Chairman’s Statement 17 CEO’s Review 25 Biographical Details of Directors and Senior Management 29 Corporate Social Responsibility Report 40 Corporate Governance Report 64 Report of the Directors 84 Financial Information 157 Schedule of Investment Properties 158 Five Years’ Financial Summary 159 Glossary of Terms THE LANGHAM HONG KONG The Langham seeks to provide a unique European-style refined service to its guests. The Langham is a luxury hotel located close to Canton Road, which has one of the largest concentrations of luxury retailers in Hong Kong and is located in the heart of Tsim Sha Tsui, one of the busiest shopping and leisure destinations in Hong Kong. Apart from the shopping opportunities offered, Tsim Sha Tsui is a cultural hub and The Langham is located near historical buildings, museums and other tourist attractions, such as the Hong Kong Clock Tower, the Avenue of Stars and the Star Ferry. Tsim Sha Tsui is also a growing commercial hub with large-scale office developments nearby, such as the International Commerce Centre in West Kowloon, underpinning growth in corporate accommodation in the area. The Langham seeks to provide a unique european-style refined service to its guests HKTB RATING High Tariff A ROOMS 498 GFA (’000 SQ.FT) 375 CORDIS HONG KONG Cordis Hotel is the only large-scale luxury hotel in the heart of Mongkok HKTB RATING High Tariff A ROOMS 669 GFA (’000 SQ.FT) 580 Cordis, Hong Kong provides a contemporary luxury hotel experience, with sleek and modern design inspired by contemporary Chinese art. Cordis hotel is a short walk away from famous street markets such as the night market on Temple Street, the Ladies Market and the Jade Market, and is directly connected to The Langham Place Shopping Mall and Office Tower. Cordis hotel is the only large scale luxury hotel in the heart of Mongkok and easily accessible by various modes of public transportation, including the MTR. Mongkok attracts many shoppers, both local and overseas, as the location has a plethora of shopping malls, street shops and open bazaar outlets. In addition to retail, Mongkok is an entertainment and commercial centre. EATON HONG KONG Located on Nathan Road, Eaton has a modern and simple design, furnished in warm earth tones and natural colours HKTB RATING High Tariff B ROOMS 465 GFA (’000 SQ.FT) Temple Street Night Market 339 Eaton hotel is located on Nathan Road, a popular street in Hong Kong in a famous shopping, entertainment and commercial district. Eaton is easily accessible by various modes of public transportation and is located between Tsim Sha Tsui and Mongkok. Eaton has a modern and simple design, furnished in warm earth tones and natural colours. The Hotel focuses on three fundamentals – comfort, convenience and connectivity – and is one of the most eco-friendly hotels in the district. Eaton’s lobby has floor to ceiling glass windows which allows the lobby area to be filled with natural light and along the lobby wall is a living green wall, which features over 3,000 plants and serves to purify the air in the lobby area. LANGHAM HOSPITALITY INVESTMENTS ANNUAL REPORT 2017 The Trust Group comprises a hotel portfolio of three Hong Kong hotels including The Langham, Hong Kong, Cordis, Hong Kong and Eaton, Hong Kong. These three Hong Kong hotels are managed by the Hotel Manager, Langham Hotels International Limited under Langham Hospitality Group, which is one of the world’s most outstanding hotel management companies. Langham Hospitality Group, a member of the Great Eagle Group, encompasses a family of distinctive hospitality brands which include hotels, restaurants and spas, located on four continents. Langham Hospitality Group currently manages 20 hotels under The Langham Hotels and Resorts, Cordis and Eaton brands, with more than 20 hotel projects currently confirmed and under construction or in a developed stage of negotiations in China, Southeast Asia, Middle East and North America. LANGHAM HOTELS AND RESORTS – THE LANGHAM AND LANGHAM PLACE Langham Hotels and Resorts, is the flagship brand of Langham Hospitality Group, and comprise of hotels committed to delivering exceptional experiences across the globe. The Langham name has come to represent hotels that are the epitome of luxury, displaying a passion for genuine service, innovation, captivation of the senses and design. Our hotels are defined by ‘The Art of the Stay’ through their impeccable service with poise, timeless art & design and by their eclectic sensory experiences. The Langham brand reflects classic luxury, grand and timeless, whereas Langham Place brand represents modern luxury and sophistication. CORDIS Cordis, meaning “heart” in latin, is a collection of elegant upscale hotels, with plenty of heart & soul, utterly devoted to your business, personal and family well-being. The service is seamless, devoted, genuine, reliable, thoughtful, anticipatory, passionate and intuitive. The Cordis portfolio will include new built designs, resorts and contemporary residences. The brand will be developed through a combination of new-build and conversion projects in key cities in Asia and North America, with the first hotel to fly the Cordis flag 2015 in Hong Kong. EATON Eaton is a modern high design hotel concept, at affordable prices, offering an honest, comfortable and effortless hotel experience for the smart traveller. Eaton is also about sustainable living through eco-friendly hospitality solutions to limit our footprint on the environment. It is the ideal hotel for the smart and responsible traveller interested in a fun and affordable stay. Each Eaton will be known for its modern and simple design in an environment that is fresh, young and vibrant, offering value and transparent pricing. Our guests will feel at ease as there will be no hidden charge. 008 LANGHAM HOSPITALITY INVESTMENTS ANNUAL REPORT 2017 2 0 5 12 7 4 8 13 17 6 15 16 3 2 1 14 18 19 10 9 11 1 The Langham, Hong Kong 8 The Langham, Fifth Avenue, 14 Langham Place Guangzhou New York 2 Cordis, Hong Kong 15 Langham Place Ningbo 9 The Langham, Melbourne 3 Eaton, Hong Kong 16 Langham Place, Xiamen 10 The Langham, Sydney 4 The Langham, London 17 Langham Place, Haining 11 Cordis, Auckland 5 The Langham, Boston 18 The Langham, Shenzhen 12 The Langham, Xintiandi, 6 The Langham, Shanghai 19 The Langham, Haikou Huntington Pasadena 13 Cordis, Beijing Capital Airport 20 Cordis, Hongqiao, Shanghai 7 The Langham, Chicago Note: The Langham, Hong Kong, Cordis, Hong Kong and Eaton, Hong Kong are existing hotel properties owned by the Trust Group. Apart from the said Hotels, the Trust Group does not own any other hotels in the above list. LANGHAM HOSPITALITY INVESTMENTS ANNUAL REPORT 2017 CORPORATE INFORMATION AND FINANCIAL CALENDAR TRUST NOMINATION COMMITTEE Langham Hospitality Investments LIN Syaru, Shirley (Chairman) (a fixed single investment trust constituted pursuant to LO Ka Shui the Trust Deed under the laws of Hong Kong) SO Yiu Wah, Eric WONG Kwai Lam COMPANY Langham Hospitality Investments Limited COMPANY SECRETARY (incorporated in the Cayman Islands with limited liability) WONG Mei Ling, Marina TRUSTEE-MANAGER AUDITOR LHIL Manager Limited Deloitte Touche Tohmatsu (as Trustee-Manager of the Trust) LEGAL ADVISORS BOARDS OF DIRECTORS Conyers Dill & Pearman (Cayman) Limited Non-executive Directors Mayer Brown JSM LO Ka Shui (Chairman) LO Chun Him, Alexander PRINCIPAL BANKERS China Construction Bank (Asia) Corporation Limited Executive Director Citibank, N.A. IP Yuk Keung, Albert (Chief Executive Officer) Hang Seng Bank Limited The Hongkong and Shanghai Banking Corporation Limited Independent Non-executive Directors LIN Syaru, Shirley SO Yiu Wah, Eric COMPANY REGISTERED OFFICE WONG Kwai Lam Cricket Square, Hutchins Drive P.O. Box 2681 AUDIT COMMITTEES Grand Cayman KY1-1111 Cayman Islands WONG Kwai Lam (Chairman) LIN Syaru, Shirley SO Yiu Wah, Eric COMPANY PRINCIPAL PLACE OF BUSINESS IN HONG KONG REMUNERATION COMMITTEE Suite 2702, 27th Floor Great Eagle Centre SO Yiu Wah, Eric (Chairman) 23 Harbour Road LO Ka Shui Wanchai, Hong Kong LIN Syaru, Shirley Tel: (852) 2186 2500 WONG Kwai Lam Fax: (852) 2186 9867 010 LANGHAM HOSPITALITY INVESTMENTS ANNUAL REPORT 2017 CORPORATE INFORMATION AND FINANCIAL CALENDAR COMPANY PRINCIPAL SHARE WEBSITE REGISTRAR www.langhamhospitality.com Conyers Trust Company (Cayman) Limited P.O. Box 2681 INVESTORS ENQUIRIES Grand Cayman KY1-1111 For enquiries from investors or Holders of Share Stapled Cayman