AMARA HOLDINGS LIMITED ANNU AL REPORT 2018 CONTENTS 02 25 34 151 Amara Vision Property Investment Sustainability Additional Amara Brand and Development Report Information on Directors Seeking Re-Election 27 51 04 Specialty Restaurants Corporate CEO’s Message and Food Services Governance Report Proxy Form 10 28 67 Our Business Every Thread Financial Portfolio Counts Statements 16 29 Board of Awards and 144 Directors Accolades Corporate Data 20 32 145 Operations and Financial Statistics of Financial Review Highlights Shareholdings 22 33 147 Hotel Investment Corporate Notice of Annual and Management Structure General Meeting In surmounting life’s challenges, every thread of resilience counts. At Amara, we grow in the face of adversity, weaving diversity into a seamless and integrated lifestyle experience across our three core businesses to redefine living. 02 Amara Holdings Limited AMARA VISION AMARA BRAND Sharing a common vision and A homegrown integrated lifestyle an identical set of values, we strive group principally engaged in to deliver a brand experience unique three business areas, namely, to Amara in our three interrelated hotel investment and management, core businesses. property investment and The Amara vision is to be recognised development, and specialty as a leading Asian integrated lifestyle restaurants and food services. group, with premium brands that exude the value, quality and style of our product offerings, and a warm and personalised service that goes beyond the expectations of our customers. O U R allow us to embody the C O R E innovative and creative spirit, V ALUES daring to dream and constantly keeping up with trends. We are committed to providing a quality and superior integrated lifestyle product, delivered with the utmost professionalism and that special touch of Asian hospitality. O U R is to maintain excellence in GOAL all that we do, and offer long term benefits to our shareholders, our customers and our employees. O U R is our people. We value their GREATEST contributions and are dedicated ASSET to lifelong training and bringing out the best in our people. Annual Report 2018 03 AMARA HOTELS AMARA AMARA AMARA RESORTS HOTELS SIGNATURE SaNCTUARY Amara presents the Amara Hotels are Amara Signature Amara Sanctuary world with a fresh contemporary Asian Hotels boast stylish Resorts offer approach to luxury business hotels interiors and a guests an idyllic hotels and resorts. offering a friendly prestigious address. environment to relax We promise to environment in Our luxurious and rejuvenate. enrich, fulfill and which to relax or properties offer ideal Nestled in exotic inspire our guests do business. Amara accommodations for locations, our resorts with individual Hotels offer the modern travellers. blend traditional experiences that latest business local elements with Whether staying are cherished and hotel facilities in modern amenities. for work or memorable. We are a convenient city pleasure, guests Stunning the creator of special location, where will experience accommodations and moments and guests will find an unprecedented innovative dining unique memories. stylish interiors, access to destination concepts ensure that world class service Because this dining, state-of-the- our guests experience and an experience moment matters. art facilities, and sensory delights. as individual as you. world-class service. SILK ROAD ThaNYING 100 AM Experience first-hand At Thanying Redefining lifestyle, the cuisine of the Silk Restaurant, we offer our retail mall Road where Marco you a unique taste of brand 100 AM aims Polo first discovered rich, exquisite and to create a unique Asia and where the Royal Thai cuisine. shopping experience finest dishes from the Within a uniquely featuring a wide orient are created by Thai ambience, variety of retail, master chefs. and distinctly Thai lifestyle and dining service, Thanying concepts tailored to Showcasing the very Restaurant relives the changing lifestyle best of provincial the culinary past in each vibrant and Chinese cuisine, our when only the most dynamic location. show kitchen allows exquisite morsels you to be a part of were prepared and the action – a truly presented with the individual experience. pomp and richness deserving of royalty. 04 Amara Holdings Limited CEO’S MESSAGE FY2018 has been a challenging year but one where we continued to make our mark both locally and abroad. From a macro perspective, businesses felt the impact of the trade tension between US and China, two of the world’s largest economies, with spillover effects leading to a global slowdown. Business sentiments were further dampened by rapidly rising interest rate by the US Federal Reserve. Nonetheless, 2018 was a positive year for Amara as we successfully expanded into Shanghai, Asia’s leading financial and innovation powerhouse and a major tourist destination, with the opening of Amara Signature Shanghai, and exported our strong brand name into Shanghai. C HIEF EXECUTIVE The Singapore economy grew 3.2% year- HOTEL INVESTMENT O FFI C E R on-year in 20181, down from 3.6% in 2017. AND MANAGEMENT A lbert Teo The tourism sector ended on a strong note Hock Chuan Singapore’s tourism industry ended 2018 on in 2018, reaching a record high for the third a strong note. For 2019, the Singapore Tourism consecutive year, having received 18.5 million Board expects further growth for the tourism visitors in 2018, a 6.3% growth as compared to sector, forecasting visitor arrivals to grow between 17.4 million visitors in 2017. Similarly, tourism 1% and 4% to be in the range of 18.7 million to receipts rose 1.0% to S$27.1 billion in 2018, 19.2 million, while tourism receipts are expected from S$26.8 billion in 20172. to be in the range of S$27.3 billion to S$27.9 2 At Amara, revenue rose 16% to S$104.2 million billion, a growth of between 1% and 3% . in FY2018 from S$89.8 million in FY2017, Our Hotel Investment and Management with growth registered mainly from the Group’s segment recorded growth, with maiden revenue core Hotel Investment and Management contribution from Amara Signature Shanghai segment following the soft opening of Amara which soft opened in February 2018, and Signature Shanghai in February 2018. a resilient showing from our other three hotels Correspondingly, FY2018 net profit rose – Amara Singapore, Amara Sanctuary Resort, 35% to S$32.0 million, from S$23.7 million Sentosa, and Amara Bangkok. Overall, hotels in over the same period in FY2017. Singapore and Bangkok continued to experience some increase in hotel rates with intensified In FY2018, Net Assets Value per share grew marketing efforts. We are cautiously optimistic 5.4% to 69.46 Singapore cents from 65.88 that through refining our offerings in our two Singapore cents with the broadening of our Singapore hotel properties, we can grow at asset portfolio to include Amara Signature a faster rate than the industry benchmark. Shanghai. With a stable balance sheet and healthy gearing, we believe we are well- At Amara Singapore, we are in the process of positioned to explore the opportunities of transforming some guestrooms to premium securing suitable projects, to further enhance rooms, complete with an all-new non- our branding, both locally and in the region. traditional layout, one that caters towards the 1 Ministry of Trade and Industry Singapore, 15 February 2019 - MTI Maintains 2019 GDP Growth Forecast at “1.5 to 3.5 Per Cent” 2 STB, 13 February 2019 – Third consecutive year of growth for Singapore tourism sector in 2018 Annual Report 2018 05 well-travelled. The contemporary new design an office tower and a retail mall. This new will evoke a healthy lifestyle, well-suited for asset portfolio offers an exquisite integrated either business travellers or guests looking for lifestyle experience, one that will build a a brand new ‘staycation’ getaway. thriving community that brings hotel guests and local clientele together, with events Amara Sanctuary Resort, Sentosa, maintained to engage and build meaningful business good performance following the enhancement connections and friendship. With Shanghai’s of its MICE infrastructure and continued strategic role as an important financial and active marketing to travel agents and online innovation powerhouse in Asia, a major tourist travel agencies. For the third year running, destination, and a world-leading science and Amara Sanctuary served as a base for Deloitte technology innovation centre in the future, University Asia Pacific, catering to the training we are confident that these developments will needs of Deloitte employees in the region. bode well for Amara Signature Shanghai and With our enhanced position as a choice MICE 100 AM Shanghai. destination, we look forward to catering to more quality events going forward. Shanghai remains a major tourist destination, with expectations for the number of inbound We are delighted with the opening of the highly tourists to reach 10 million by 20203 from anticipated Amara Signature Shanghai, our very 8.5 million in 20164, as this city solidifies first luxury brand hotel. Soft opened in February its position as a core trading and financial 2018, Amara Signature Shanghai is the first hub. Corporate demand is a key driver for 5-star international hotel located in the historical Shanghai’s hotel market while the Shanghai Changshou Road commercial zone, within the Disney Resort and Shanghai Haichang Ocean inner core City Centre of Puxi, Shanghai. Park are expected to boost leisure demand in Shanghai. We have seen an encouraging response given the hotel’s stylish interiors and strategic Amara Bangkok experienced a growth in location in the Puxi vicinity. Adjacent to the performance year-on-year, despite a slight hotel is 100 AM Shanghai which comprises drop in Japanese and Chinese visitors following 3 Information Office of Shanghai Municipality, 7 September 2018 – Press Release for 6 September 2018 Media Briefing by the Shanghai Municipal People’s Government 4 JLL, May 2017 – Hotel Destinations – Asia Pacific 06 Amara Holdings Limited 10 Evelyn natural catastrophes in these respective In Property Development, we will continually countries during the year under review.