MCK 2025 ASM Speech Notes and Presentation Slides

Copthorne Hotel and Resort Bay of Islands
FY25 ANNUAL SHAREHOLDERS
MEETING
30 MAY 2025

Copthorne Hotel and Resort Bay of Islands
WELCOME

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M Social Auckland
OUR BOARD

Millennium Hotel Rotorua
6
•Chair and Managing Director’s Addresses
•Resolutions
•Shareholder Discussion
•General Business
•Close of the Meeting
AGENDA

FY24 Performance Snapshot
Significant uplift in results; material growth in revenue and earnings over past two years
TOTAL
REVENUE
NZ HOTEL
REVENUE
GROUP PROFIT
BEFORE TAX
$176.2m
+21.0%
$109.5m
+8.3%
$47.1m
+25.6%
EARNINGS PER
SHARE
PROPERTY
ASSETS
NTA PER SHARE
17.17
1
cents
+25.8%
BOOK VALUE
$694.1m
MARKET VALUE
2
$1.1b
BOOK VALUE
$3.46
MARKET VALUE
$5.39
3
•Hotels: Continuing positive
growth in hotel business
•CDL Investments: Solid
turnaround with the
cooldown in property sales
stabilising
•Use of capital: Continue to
invest in hotel property
refurbishments and network
expansion
1.Adjusted for one-off deferred tax adjustment, made as a result of government legislation change
2.Unaudited, assessed market valuation based on analysis by independent property experts as at 31 December 2024.Includes 100% of: NZ hotels, Zenith Apartments and CDI property assets; and 50% of:
Sofitel Brisbane Hotel
3.Unaudited, adjusted for MCK proportion of shareholding being 100% NZ hotels and Zenith Apartments, 65% of CDI and 50% Sofitel Brisbane and including an allowance for tax on the revaluation of property
assets

FY24 Summary Messages
Economic headwinds
•Reduced domestic and corporate travel spend
•Cooldown in property sales
•Recovery expected late 2025
•Well positioned to win when demand returns
Strategic execution
•Strong results proving resilience of business and
value of Revive and Thrive strategy
•Revive stage almost complete, moving to Thrive in
late 2025
•Robust balance sheet providing optionality, ready to
deploy
Valuable asset portfolio
•19
*
NZ hotel properties in attractive locations
•Fair value of NZ hotel properties of $512m
•Majority shareholding in CDI, joint venture in Sofitel
Brisbane, owner of 22 apartments in Zenith
Residences (Sydney)
Long term drivers are positive
•New Zealand is a top tourist destination and the
second highest export earner for NZ
•Domestic and international travel spend will
increase as economic headwinds ease
Strong execution on plan delivering results, supported by high value portfolio. Will benefit as travel
and property markets rebound driven by economic recovery
*incl The Mayfair Hotel settled post-FY24 year end

•The Board believes that MCK should remain listed – this will allow continued public trading of its shares;
•The Board will continue to function as it has – Graham McKenzie standing for re-election, this will allow MCK
to retain three independent directors;
•Dividend for 2024 declared today – 3 cents per share, payable to all ordinary and redeemable preference
shareholders on 19 June.
•Management strongly focused on delivering as profitable a result as it can in 2025.
Post-takeover offer update
Business as usual
9

MANAGING DIRECTOR’S
ADDRESS
Stuart Harrison
10

11
Our History
Celebrating 30 Years

Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Jul-22
Oct-22
Jan-23
Apr-23
Jul-23
Oct-23
Jan-24
Apr-24
Jul-24
Oct-24
12
New Zealand’s Tourism Market
Short term impact of economic headwinds, on track
for recovery. MCK well positioned for tourism uplift
Covid
•Tourism continues to recover and demand
from overseas continues to improve
•Softer domestic consumer and corporate
travel as fiscal conditions bite
•International visitor arrivals expected to
return to pre-covid levels by Q1
2027(TECNZ, Westpac)
Correlation between increasing international
visitor numbers and occupancy
2023 peaks reflect special events eg 2023 FIFA Women’s World Cup.
Limited events attracting international visitors to New Zealand in 2024

13
NZ Hotel Business
Focus on making sure we have the best product available
to capture existing demand as the tourism market recovers
Q1 2025: Another positive start to the year
•Average hotel occupancy up 1% on prior year to
80%, but average room rate up ~$17 (or 8%)
•Q1 2025 rooms revenue up 14% on prior year;
Up 44% in past two years (cf Q1 2023)
Subdued industry outlook for Q2 and Q3
MCK remains focused on customer relationships,
targeted marketing and clever management of
inventories and revenue
Q1
2024
Q2
2024
Q3
2024
Q4
2024
Q1
2025
NZ Hotels Quarterly Revenue

14

Millennium Hotel
Queenstown
Refurbishment
202 rooms completed
15 Suites in progress
Key Hotel Property Projects Underway
Over 30% (530) owned rooms refurbished FY22 – FY25
Copthorne Hotel &
Resort Bay of Islands
Refurbishment& repainting
90 Rooms completed
(incl 40 returned to use)
Millennium Hotel
Rotorua
Refurbishment
99 Rooms Completed
122 Rooms in Progress
Copthorne Hotel
Palmerston North
Recladding, reglazing & air-
conditioning
15

16
Brisbane Operations
Strong performance from Sofitel Brisbane
Sofitel Brisbane
•Acquisition settled December 2023 (50% JV)
•One of the more established and most
reputable luxury hotels in Brisbane
•Consistent demand following soft Q1 with
strong demand across all major segments
•Q1 2025 rooms revenue up 16% on prior
year – despite drop off in demand due to
Cyclone Alfred warnings
Sofitel Brisbane Joint VentureFY24 $m
Hotel Revenue 100%53.47
Hotel Operating profit6.07
Profit after tax for the year3.02
MCK’s share of: Profit after tax50%1.51
Interest Income1.18

Hotel presence in
Christchurch once again
The Mayfair
•Acquired for $31.9m (Freehold)
•67 Guest Rooms and Suites
•Restaurant, Café & kitchen
•Conference & Meeting facilities
The Mayfair Christchurch
Acquired January 2025
HDNZ Statistics
Quarter End4.5 – 5 star Christchurch Hotels
Occupancy Rate
Dec 2023
Dec 2024
81.37%
83.80%
Up 2.4bp
Average Daily Rate
Dec 2023
Dec 2024
$222.61
$231.26
Up 4%
17

Our Values
GENUINELY
CARE
We show genuine care and create delight for our guests and each other, every day. It’s more
than 'satisfaction' and it’s much more than 'trouble-free'. We’re here to elevate experiences
at every single point. We create something memorable because we absolutely care, backed
up by the attitude and skills to make a difference.
GO FURTHER
We aim high, taking pride in everything we do. We ask questions, find solutions, and
embrace responsibility so we’re stronger individually and better as a team. The more we
back ourselves and each other, the more effective we become, creating lasting loyalty with
our guests and sustainable success for us both today and into the future.
TRULY
CONNECTED
We believe in true connection – the sort that comes from real interest, respect and
appreciation for each other, sparking deeper conversations and stronger support. We walk
the talk, keep it honest and open, and care about our colleagues. We’re a diverse team with
a ton of talent and when we’re meaningfully connected, we’re simply unbeatable.
ENERGY
ON
We love what we do, and it shows. We’re always up for a challenge and aim to put our best
foot forward every time. It’s about good energy, the sort that inspires everyone around us
and pushes us to be better and better – individually, as a team and always for our guests.
18

19
CDL Investments
Subdued result
– trading conditions softer than envisaged
•Maintained a nationwide geographical spread
•Diverse portfolio across development and investment
Continually looking to grow the Portfolio
•Acquired 10.79ha residential land in Richmond, Nelson
•Acquired 10.08ha industrial zoned land in Harewood,
Christchurch
•R2 Growth Cell (Hamilton) 139Ha and Arataki Rd
(Havelock North) 11.2Ha projects included in Fast-track
Approvals legislation
•Total land holding 310.7 Ha (2019: 224 Ha)
Sydney Apartments
Positive progress on Zenith apartment sales
•Sale of nine apartments in 2024
•Remaining 22 apartments delivering good rental
income
•Transfer of several units from rental pool to vacant
to meet market demand as part of sell-down
Zenith Apartments –
100%
FY24FY23%
change
Unit sales95
Units Available2231
Rental & Sales Income17.6m13.8m27.5%
Profit before tax9.4m7.2m33.7%

20
Sustainability & climate reporting
Highlights for FY24
•Donated 32,500 kiwi ‘meals’ in 2024 to Save the Kiwi charity to
support the Napier Kiwi breeding programme through our guest
programme, to opt out of room serving, contributing to conserving
hotel water & energy use
•12 of our hotels maintained Qualmark Sustainable Business Silver
status
•Sustainability Manager appointed, leading our climate-related
reporting and Greenhouse Gas Inventory
•Second year of reporting NZ climate-related disclosure
regulations (FY24 Climate Statement issued in April 2025)
oGreenhouse Gas Inventory independently assured and Toitū
Carbon reduce certified
oHotel portfolio climate risk assessment completed, including
identifying climate-related physical and transition risks and
opportunities
2025 Priorities
•Develop a Sustainability Strategy and
operational policies
•Set emissions reduction targets
•Scope initiatives to reduce our emissions

•Whangarei – further developing feasibility of a hotel development; working through engineering, architectural
and planning requirements to establish viability to commence construction
•Surplus land adjacent to hotels - in Rotorua, Palmerston North and Queenstown – being considered for further
development or sale
•Downtown Carpark development in Auckland will have an impact on the adjoining M Social Hotel, with
consideration required on the impacts of the adjoining development and the opportunity available to consider
further development of the hotel site
•Seismic assessments to take place following upcoming changes to assessment criteria and work through any
requirements for seismic strengthening
•Development works advancing across CDI’s key sites, particularly two fast-track projects in Hamilton and the
Hawkes Bay
What’s Next: Further property growth opportunities
Optimising the opportunities of the hotel network and under-utilised land and
buildings
21

2025 Outlook
Confident in continued progress
under Revive and Thrive strategy
•Global and domestic economic recovery will
drive demand – expected from late-2025,
although timing and pace remains uncertain
•Varied regional demand – some areas, such as
Queenstown, remain extremely strong
•Central and local Government action and
support needed to promote NZ and attract
tourists, conferences and events
•Property markets in New Zealand are showing
signs of improvement and looking advance
development works across key sites
2025 Priorities
•Ongoing control over the controllables - strong
staffing levels and more room capacity
•Continue to increase the number of rooms
available to sell following refurbishments and
rooms being recommissioned
•Continued investment into refurbishment and
upgrades
•Grow My Millennium loyalty scheme to drive
bookings
•Identify and assess opportunities for surplus
land
22

•Clear strategy & clarity of purpose
•Valuable portfolio of property and assets
•Long term property improvement programme adding further value to
existing assets
•Strong hotel brand recognition and reputation
•Well positioned for uplift in performance and results when tourism and
property markets reignite
•Determined team, successfully executing on strategy
Strong fundamentals and clear strategy
2025 represents MCK’s 30
th
year of continuous operations in New Zealand
23

The Mayfair
THANK YOU FOR
YOUR ATTENDANCE

View from Copthorne Hotel & Apartments Queenstown Lakeview
BUSINESS OF THE MEETING

RESOLUTIONS
DIRECTOR RE-ELECTIONS:
•Resolution 1: Re-election of Graham McKenzie
AUDITORS’ REMUNERATION: Resolution 2: That the Board of Directors be authorised to fix the auditor’s
fees and expenses.
The Board unanimously recommends shareholders vote in favour of resolution 1.
The Board unanimously recommends shareholders vote in favour of resolution 2

Shareholder discussion
General business
Close of the Meeting

Our Business
NZ Hotel brands:
•Lifestyle – M Social
•Premium - Millennium Collection
•Comfortable - Copthorne incl Kingsgate
CDL Investments New Zealand:
•Land developments
•Investment properties
•Projects in progress across New Zealand
Australia:
•Zenith Residences – Exit Strategy
•JV - Sofitel Brisbane Central
•Own and operate hotels across New
Zealand; building beachhead in Australia
•Experienced executive team
•~1,200 team members across New
Zealand and Australia
•Own 65% shareholding in CDL
Investments NZ – residential and
commercial land development
•NZX-listed. Board with independent
Chairman, as well as representation from
majority shareholder
•MCK is 76% owned by CDL Hotels
Holdings, a 100% subsidiary of Hong
Leong Group

19 hotels in NZ
Opportunity to fill in the network
2,300 rooms per night owned and
managed
1 hotel in Australia
*
Beachhead established. Significant
opportunity to build footprint
Our Hotel Networks
As at 31 January 2025
*50/50 Joint Venture of Brisbane Central Hotel – with Hotel Management Agreement
The Mayfair acquired January 2025, post financial year end

CDL Investments NZ (NZX: CDI)
65.3% shareholding
Residential & commercial land development
4x Commercial Investment properties -
2x Warehouses (NLA 16,402 m2 WALE 5.1 years )
2x Retail (NLA 3,411 m2 WALE 5.52 years)
Projects across New Zealand
11x Residential Land Development
1x Commercial Land Development
Provides MCK with a diversified property portfolio and
revenue stream

EXPLORE OUR BRANDS
LIFESTYLE
Contemporary hotels for the curious, the
explorers and those who thrive on new
experiences. Functionally chic, the Lifestyle
brand of hotels are designed for all travellers.
Brands in the Lifestyle collection include:
M Social Hotels, The Mayfair
PREMIUM
The travellers’ choice in gateway cities.
The Millennium brand of hotels are created with
timeless elegance and famed for their
conference and banquet offerings, world-class
facilities and the ultimate in personalized,
gracious service. They are perfect for corporate,
leisure, meetings and conventions.
Brands in the Premium collection include:
Grand Millennium Hotels and Millennium Hotels.
COMFORTABLE
Comfortable hotels at a comfortable price. This
brand of hotels are firmly established as a
preferred choice for both business and leisure
travellers in providing comfortable service.
Brands in the Comfortable collection include:
Copthorne Hotels and Kingsgate Hotels.
MHR New Zealand reference

LIFESTYLE

PREMIUM

COMFROTABLE

This announcement has been prepared by Millennium & Copthorne Hotels New Zealand Limited ("M&C Hotels"). The details
in this announcement provide general information only. It is not intended as investment, legal, tax or financial advice or
recommendation to any person and must not be relied on as such. You should obtain independent professional advice prior
to making any decision relating to your investment or financial needs.
All references to $ are to New Zealand dollars unless otherwise indicated. Percentages may be subject to rounding.
This announcement may contain forward-looking statements. Forward-looking statements can include words such as
“expect”, “intend”, “plan”, “believe”, “continue” or similar words in connection with discussions of future operating or
financial performance or conditions. The forward-looking statements are based on management's and directors’ current
expectations and assumptions regarding the M&C Hotels business, assets and performance and other future conditions,
circumstances and results. As with any projection or forecast, forward-looking statements are inherently susceptible to
uncertainty and to any changes in circumstances. M&C Hotels actual results may vary materially from those expressed or
implied in the forward-looking statements. M&C Hotels and its directors, employees and/or shareholders have no liability
whatsoever to any person for any loss arising from this announcement or any information supplied in connection with it.
M&C Hotels are under no obligation to update this announcement or the information contained in it after it has been
released. Past performance is no indication of future performance.
DISCLAIMER

---

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MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED
STOCK EXCHANGE ANNOUNCEMENT
2025 ANNUAL SHAREHOLDER MEETING – REMARKS BY MCK’S CHAIRMAN

Growth in 2024 provides a platform for the future

After two years of hard work, it was really pleasing to report a significant uplift in revenue and a continued
improvement in profit. We were pleased with the 21 percent increase to $176.2 million which has come off
the back of a turnaround in our core hotels business as well as CDL Investments returning to stronger level of
sales from increased confidence in the residential property markets.

Taking out the effect of the one-off non-cash deferred tax adjustment, the increases in operating profit and
profit before tax of 32.1 percent and 25.6 percent respectively says a lot about how we have been able to
succeed with an intense focus on performance management throughout the business.

In addition to adding to our revenue and profit, we were pleased to complete the acquisition of The Mayfair
Hotel in Christchurch for $31.9 million earlier this year. Returning to Christchurch has been a key strategic
imperative for us and The Mayfair Hotel provides us with the ability to target new market segments and
customers which we have not had access to.

FY24 was the first full year of ownership in the 50% joint venture in Sofitel Brisbane. Overall, the hotel has
seen consistent demand following a soft Q1, and we expect an increased profit contribution this year despite
the impact of severe weather events earlier on. Stuart will provide more detail on its operations shortly.

We have also continued to build the value of our hotel and property portfolio, which when taking into account
the company ownership proportions, had an assessed fair market value of $911.0m as at 31 December 2024.

With all that, we believe that MCK continues to be in a strong position operationally and from an asset
perspective. It has strengthened its platform for future growth and despite recent global turmoil, we continue
to be positive on the medium to longer term prospects for MCK.

Takeover offer from CDL Hotels Holdings New Zealand Limited

I would now like to say a few (brief) words about the takeover offer from CDL Hotels Holdings New Zealand
Limited from the perspective of the company.

As you know, the offer put to shareholders from CDL Hotels Holdings New Zealand Limited expired on 8 May.
CDL HHNZ now holds approximately 84 percent of MCK’s ordinary shares which is below the 90 percent
threshold required under the Takeovers Code to undertake compulsory acquisition.

CDL HHNZ is therefore unable to put forward any new offer to shareholders until January 2026. Whether they
do so is a matter for them but is not something that is up for discussion today.

I would emphasise that this meeting is about MCK and not CDL HHNZ and therefore not the forum to discuss
the merits of the now-expired offer. Any questions about it are for CDL HHNZ and should be put to them
outside of this meeting.

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At our Board Meeting yesterday, all directors considered the immediate future of the company and what is in
the best interests of all shareholders. We reached a number of conclusions by consensus:

• As a Board, we still believe that MCK should remain listed on the NZX for the moment – this will allow
public trading of MCK shares which we believe is in the best interests of all shareholders;

• The Board will continue to function as it has. As stated in the amended Notice of Meeting, Graham
McKenzie is retiring by rotation and is standing for re-election. As we said in our announcement, after
the original Notice of Meeting was despatched, one of MCK’s larger minority shareholders requested
Graham reconsider his position and seek re-election. That shareholder believes that it will be
beneficial to minority shareholders for MCK to retain three independent directors (of a board of
directors of six) and also Mr McKenzie’s experience with the Company. As you know, Graham was
part of the Independent Directors’ Committee which led the Company’s response to the recent
takeover offer. Graham has therefore agreed to seek re-election today and if re-elected, his intention
would be to serve through until the Company’s 2026 annual meeting of shareholders.

This morning, the Board resolved to declare a dividend for 2024 of three (3) cents per share to all MCK
shareholders holding ordinary or redeemable preference shares. The dividend will be fully imputed and paid
to shareholders on 19 June. The Board felt that it was appropriate to declare a dividend for 2024 now that
there are no restrictions on doing so. We also took into account shareholder feedback in making our decision.

Management is strongly focused on delivering as profitable a result as it can in 2025. It is therefore very much
business as usual. On that note, I will now hand over to MCK’s Managing Director, Stuart Harrison.
.

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2025 ANNUAL SHAREHOLDER MEETING – REMARKS BY MCK’S MANAGING DIRECTOR

E ngā mana, E ngā waka, E ngā reo,
Ko Stuart Harrison ahau E rau Rangitira ma
Tēnā koutou Tēnā koutou Tēnā koutou katoa

Thank you all for joining our meeting today. We appreciate the time that you are giving to our team and our
business with your attendance. This year marks our 30
th
Anniversary – both as a Hotel Group and as a NZX
Listed entity – so for reference you will see some of the Annual Report covers spanning those years.
Colin has spoken about our 2024 annual results and I therefore want to look at some of the things that helped
us deliver those results as well as focusing on the current year, some of the challenges we are facing and how
we are dealing with them.
Market dynamics
I am often asked what I think of the uncertainty currently being generated from world markets and it is
something that we are monitoring closely.
We know that international tourism and accommodation generally have been a critical part of the New
Zealand economy for over forty years. As a country, we have seen tourism spending returning to pre-
pandemic levels and the official statistics from last year showed a 14.6 percent increase year-on-year to over
$44 billion. Anything that might impact the continued growth of visitor numbers, whether it be a global
economic downturn or another pandemic closing borders (hopefully not!) is something we keep a close eye on
and assess regularly.
Our sales force continues to do outreach to our global and local clients and they have met with positive
responses despite the current global uncertainty. I am encouraged that New Zealand’s reputation and
perception as a safe and attractive market for tourism and remains strong in the current volatile climate.
As a company, MCK remains committed to investing in its infrastructure and committed to growing our market
reach and market share. It was pleasing to see in last week’s Government Budget that there was some
recognition of tourism’s contribution to the country and some added resources to be applied to this sector.
We need an ongoing commitment from government – central and local – to work with us as an industry to
promote the country and to promote locations.

Current trading
Last year, I spoke about the international visitor numbers to New Zealand and the current state of the
markets. The good news is that the first quarter of this year saw a continuation of the growth we experienced
last year and has resulted in positive numbers.
What is now top of mind for us are the second and third quarters of this year. As an industry, the outlook is
subdued. Compared to the last two years, all market participants in tourism and accommodation are likely to
see the same patterns – weaker demand, increased competition for business and heavy pressure on margins
and profits due to continuing low domestic demand, a lack of any events to attract global parties to New
Zealand in our winter, and due to macro economic conditions.
As an industry we have the propensity to approach this by the cutting of room rates in an effort to obtain
access to the smaller pie on offer – but the reality is that this only weakens the operating performance with no

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increase in the quantity of people staying but a cheaper room rate. Great for the customer, not so good for the
investor!!
Our response to this is to up our game with more targeted marketing and clever management of our
inventories and revenue. Earlier this year, we welcomed our new Vice President of Sales & Partnerships Mel
Beattie to the company - Mel has been tasked with developing and implementing our sales strategies with a
particular focus to take us through this period and deepen our already strong relationships with our key clients
and customers.

My Millennium – fostering customer loyalty
An important element in attracting repeat visitors to our group, both in NZ and internationally, is our loyalty
programme, My Millennium. There has been a renewed effort to align and enhance our brand across the New
Zealand and global group landscape. This has seen in-room screens featuring videos with the MHR Global
brand video, along with hotel-specific videos. You may also have noticed in the hotel’s lobby as you came in, a
screen behind reception featuring the Global My Millennium Video.
For those guests – and shareholders - that sign up, there are various benefits such as complimentary Welcome
Gifts and discounts off Dining - whilst also accruing benefits for future stays here in New Zealand or across the
global network. Over the course of this year, our hotels will be encouraging guests to sign-up to My
Millennium at check-in so that they can start their journey of enjoying these benefits.

Product – completion of key refurbishments
Also top of my mind is the completion of our key refurbishment projects. You will recall that at previous
shareholder meetings I have said that we are in a Revive phase of our strategy and it was a priority to
complete projects at our key hotels in Queenstown, Rotorua and Bay of Islands to ensure that we could obtain
an uplift in revenue and to secure new clients.
As we have shown in our annual report, we are well on track with our plan. Over 390 rooms have been
refurbished in the last three years, and over 140 additional rooms are due to be completed in this financial
year – in total, this represents over 30% of our owned rooms in NZ.
A recent milestone was completion of the first stage of room refurbishments at Millennium Hotel Rotorua and
we are well advanced with the next stage. The difference has been reflected in very positive comments from
our clients and guests. Earlier this month there were ~1,200 delegates in Rotorua – with many of them visiting
our hotel - to attend TRENZ, a tourism event facilitating connections between New Zealand tourism operators
and international buyers, aiming to boost future tourism seasons.
We have also had similar positive feedback from our completed projects at Queenstown and the Bay of Islands
– where we have returned 40 rooms back into hotel operational inventory. Not only do these refurbishments
lift our standing in the market but it gives our employees a positive boost that they are working for a company
that is willing to invest in the hard product as well as our service.
As we continue to progress the refurbishment and upgrade of hotel properties, we are building the value of
our hotel and property portfolio, which grew to $1.1b last year.
Credit is due to our Director of Property Management Louise Borton and her team who have been looking
after a wide range of projects last year and into this year.

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Extending our boundary - Brisbane update
When considering our current trading, it is helpful to understand the comparison with the Brisbane market.
2024 saw us completing our first full year of operation at our 50% joint venture Sofitel Brisbane Hotel. The
landscape for hotel operations within Brisbane provides a contrast to what we encounter within New Zealand
and more specifically within Auckland.
Auckland has seen a significant increase in the quantity of hotel rooms (+35% in 4 years) as we saw a market
preparing for the opening of the NZ International Convention Centre and increased underlying demand. We
also see a seasonal drop in visitor arrivals over the winter months, hence the need to drive business and
attract visitors during this time.
Brisbane CBD, however, has consistent demand throughout the year – usually soft in Q1 during the holiday
season before settling into a consistency over the balance of the year and culminating in the hotel’s strong
conferencing facilities being fully utilised over the Q4 / Christmas lead up.
Earlier this year, the Sofitel Brisbane Hotel braced itself for Cyclone Alfred that was forecast to hit the
Queensland coastline. This saw a significant drop off in business as conferences and guests cancelled their
trips. Fortunately the storm didn’t hit the hotel or cause any significant property damage and many of the
conferences have rebooked.
One aspect the hotel (& Queensland Government) does well at is engagement with the multiple sporting
events that occur over the winter months with Super Rugby, A-League, NFL and AFL teams and supporters
frequenting the Hotel. This year is expected to be no different – and will have the heightened demand from
events such as NRL Magic Round, British & Irish Lions Rugby Tour and finishing with the England Cricket Ashes
Tour of Australia.

Expanding our footprint - The Mayfair Hotel, Christchurch
I do want to spend a bit of time talking about our acquisition of The Mayfair Hotel and how it fits into our
overall strategy.
Christchurch has always been an important market for us. At our peak before the Canterbury earthquakes, we
were obtaining around 20% of our overall revenue from our three Christchurch hotels, and, at one point, we
had five owned/ leased/ franchised hotels within the city. Not having a presence in Christchurch for a long
time was something that was affecting our business as a national chain.
Over the years, we had been exploring many options to return to Canterbury and The Mayfair is, in our view,
the right opportunity for us.
Already established in the luxury segment of the market and having a vibrant café in a sought-after location,
The Mayfair has already allowed us to talk to new clients who might not have considered MCK as their
preferred hotel partner previously but are keen to engage now.
We are very excited about the prospects and opportunities that this acquisition will give us. Work is being
done on rebranding the hotel to fit within our current brand portfolio and we are definitely looking forward to
showcasing the hotel in due course. Watch this space.

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Celebrating our people
Last year I spoke of improving and redesigning certain key elements of our employee experience. We have
since launched a vibrant set of key values that speak to what we are about, with this involving our staff in the
process of their development. Our Director of Human Resources, Lisa Maclean, and her team have succeeded
in expressing who we are and what is important to us as a hospitality business.
Our energy, passion and attention to detail are things that often make a difference to the guest experience
and in an exceptionally competitive market, these can be what makes and breaks a stay. The level of
employee engagement is pleasingly high and I hope you will take an opportunity to stay at one of our hotels to
see what makes MCK stand apart from the competition.

Australia update
Whilst I have already mentioned Brisbane, I would also like to mention Sydney. Long-time shareholders will be
pleased to note that we continue to sell down our interest at the Zenith Apartments in Sydney. During the
2024 year we sold 9 apartments leaving us with 22. These units are predominantly on the lower levels and 1-
bedroom units so more likely targeted toward first home buyers. Our remaining units are actively being
marketed and we expect to report 1 unit sold for the half year and are targeting a further 8 by the end of this
year.

OTHER
CDL Investments
CDL Investments New Zealand Limited (CDI), is 65% owned by MCK, and earlier today held its annual meeting
in which they outlined land acquisitions which have recently completed.
CDI have been carefully building up their development portfolio with work currently in progress with
subdivision consents, earthworks and titling of properties for sale which will provide a pipeline for future sales.
This includes 3 stages at Iona & Iona Terraces (Havelock North), Worsleys Road (Christchurch) and Highlands
Drive & Lucas Terrace (Nelson) – with these supplementing sections available in Prestons Park (Christchurch).
CDI is continuing to progress their work on the two Fast Track Projects at R2 Growth Cell in Hamilton and
Arataki Road in Havelock North.
The current environment continues to produce acquisition opportunities but the lack of infrastructure capacity
and new legislation impacts acquisition and development feasibilities.
Their update confirms that year to date the property market in New Zealand has been subdued and
management is implementing strategies to improve sales throughout the year.

Sustainability
Over a number of years we have made a concerted effort to focus on some base elements of sustainability
where guests can work with us in our sustainability initiatives. This has included encouraging guests to re-use
towels, removing single-use plastic bottles from conference facilities and hotel rooms. Increasingly there has
been a focus on replacing lightbulbs with LEDs and the providing of guest EV charging carparks.
Other highlights included our continued support of the Save the Kiwi Charity through our room servicing opt
out programme and 12 of our hotels maintaining their Qualmark Sustainable Business Silver status.

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These are all part of a transitional process and in 2023 we performed several measurements so as to
determine our emissions footprint with this forming our base year. Within 2024 we saw a 6% increase in
emissions across the business (compared to our 2023 base year), in part due to an increase in hotel occupancy
rates. Our direct emissions (from hotel gas and electricity use) are closely linked to our operations, so an
increase in guests corelates to an increase in emissions. This means we are tracking to continue to increase
emissions each year unless we scope and implement sustainability projects.
Following the appointment of our first Sustainability Manager in late 2024 we have put in place management
structures and groups to support internal decision-making and reporting, including a Sustainability Steering
group and Hotel Sustainability Champions network.
2025 will include further development of a Sustainability Strategy to set the direction and a road map for
delivering Sustainability across our business. Taking sustainability action within our business will not only
reduce our emissions, and minimise climate-related financial risk, it will respond to changing guest preferences
for brands who demonstrate that they care about the environment.

What’s next ?

We are continuing to accelerate growth initiatives – optimising our hotel network and exploring strategic
opportunities to expand our footprint in New Zealand and Australia. In addition, we will continue our
programme of refurbishments and upgrades to ensure our properties meet the expectations of our guests.

• Whangarei – we are currently refining the development proposition for a ~85 room hotel in
Whangarei. At this stage, the work has focused on the respective hotel amenity requirements as to
number/mix of rooms, restaurant and meeting areas, car-parking and structural requirements. We
have previously met with various local hapu representatives and Council and once we have settled on
some key elements we will be able to engage further.
• Surplus land for optionality – as we look across our portfolio, we are conscious that there are a
number of locations where we have unused buildings / hotel room blocks and surplus land. Work has
been carried out to assess the options available for the use of such areas and over the course of this
year we will continue to refine our thinking on these. This may lead to further development in
partnership with suitable parties or potential sale. We will keep you updated as we move forward
with any significant decisions.
• M Social Auckland and the Downtown Carpark – many people will be aware of details released by
both the Auckland City Council and Precinct Properties relating to the sale of the Downtown Carpark
and a pending development on that site by Precinct. Plans have been submitted to Council and are
going through the consenting process. There is no doubting that this will have an impact on our M
Social Hotel operations. Overall, we favour this redevelopment and believe it will have a positive
impact on this quarter of the Auckland CBD, but we have concerns in relation to the impact of the
project with aspects such as traffic management during development and final state, and how this
could adversely affect the hotel. We will continue to monitor this situation and look to work with
Precinct on the way forward.
• Acquisition strategy - hotels in general are increasingly being seen as an investment option. Recently
there has been the confirmed acquisition of a hotel located within one of Precinct’s buildings for
$180m – suggesting a value of ~$1.0m per hotel room. This has increased various expectations as to
respective hotels’ valuations and investment appetite for such. We have a careful and comprehensive
acquisition strategy and any hotel we add to our portfolio must meet a range of criteria including ROI,
location, business market mix – drawing on our Support Office resources - and brand fit within the
MHR branding.

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We continue to look for opportunities for appropriate hotels which would fit into our portfolio, noting
that within New Zealand there are several locations where we don’t have a hotel / brand presence, or
we should be looking to increase our presence.

Concluding remarks
I hope that this gives you some insights as to how we see our business and the world generally. We recognise
that there are still challenges in the market – and are not back to 2019 levels of business as a country or as a
business. As I highlighted earlier, the second and third quarters will be challenging for everyone in the tourism
and accommodation sectors. Everyone will be competing vigorously for business, and we will certainly be
doing what we can to defend our patch.
We have a clear strategy and clarity of purpose. Our focus is on ensuring that we have the best people and
product in place, for both the current market and as visitor numbers grow. This will drive our revenue, our
profit and value for our shareholders
My team and I remain determined to do what we need to do in order to keep our hotels front of mind and the
preferred choice in their markets. At the heart of all we do lies our unwavering commitment to delivering the
perfect guest experience. By investing for growth, our products and our people, we'll ensure our guests
continue to choose us as their preferred hotel provider. We know what we need to do and we are focused on
ensuring that we execute our plans to get the results we believe we can achieve.
Thanks to Ken Orr
Before I hand back to Colin, I would like to thank and acknowledge our Vice President Operations Ken Orr who
is standing down from that position having made the decision to relocate to the South Island for family
reasons.
Ken has been with MCK for over twenty years having started in Queenstown and became one of our most
experienced and knowledgeable General Managers having worked across our network including at Grand
Millennium Auckland at the height of the pandemic.
The Vice President Operations role is not an easy one and requires someone with an excellent knowledge of
hotel management and the ability to translate the intricacies of a lot of information into things people who
have no exposure to the sector need to understand.
Despite the Scottish accent, Ken has managed to corral, motivate and lead our diverse teams across the
country.
I would therefore like to acknowledge his contribution as the Vice President Operations. Luckily for us, he will
be staying with the group and has accepted the role of becoming the Hotel General Manager at Millennium
Hotel Queenstown so we will not lose his knowledge and expertise.
Thank you for your attention. I’ll now pass you back to Colin.