MANAGEMENT CONTRACT WITH MINIMUM GUARANTEED INCOME CLAS has one property under MCMGI. The 255-unit Sydney Central Hotel is located in the Sydney CBD, situated near well-known attractions such as the Sydney Darling Harbour, Chinatown, Hay Market and Paddy’s Market. MANAGEMENT CONTRACTS CLAS currently has six properties under management contracts. The 380-unit Citadines on Bourke Melbourne is situated in the heart of Melbourne’s CBD, close to the Parliament House and 101 Collins Street. The 378-unit Pullman and Mercure Melbourne Albert Park overlooks the scenic Albert Park where the annual Formula 1 Australian Grand Prix is held. The property is also located close to Melbourne’s CBD, the popular St Kilda Road precinct and the Royal Botanic Gardens. The 241-unit Pullman Sydney Hyde Park is located in Sydney’s CBD, overlooking the iconic Hyde Park. The 150-unit Citadines Connect Sydney Airport is within proximity to the Sydney Airport. The 438-unit Pullman and Mercure Brisbane King George Square is prominently situated in the Brisbane CBD and facing the Brisbane City Hall. The property is within walking distance to the city’s key attractions and landmarks. The 85-unit Citadines St Georges Terrace Perth is conveniently located in Perth’s CBD, along St Georges Terrace. The seven properties under MCMGI and management contracts have an average length of stay of less than one month. OPERATIONAL UPDATES The number of domestic overnight trips in Australia is forecasted to grow marginally by 1.2% YoY to 114.0 million in 2024, attributable to Australians reducing discretionary spending and opting to travel closer to home1. International travel to Australia has been slower to recover, with short-term international arrival numbers projected to reach 8.3 million in 2024, equivalent to 88% of pre-pandemic levels1. The Taylor Swift Eras Tour in February 2024 had a positive impact on Melbourne and Sydney, the host cities, primarily driven by an increase in ADR. Other notable events during the year included the 2024 Australian Open, Vivid Sydney 2024 and National Rugby League tournaments. In 2024, Perth, Brisbane, Sydney and Melbourne’s market revenue per available room (RevPAR) increased 7.6%, 6.2%, 4.6% and 2.8% YoY respectively2. In FY 2024, RevPAU of CLAS’ properties under MCMGI and management contracts reported a marginal increase of 1% in AUD terms, as the stronger performance was offset by the divestment of Courtyard by Marriott Sydney-North Ryde and Novotel Sydney Parramatta. On a same-store basis, excluding the divested properties, RevPAU increased 11% YoY mainly due to higher ADR. The master leases, which have fixed rent terms with annual indexation, continued to provide stable income for the portfolio. Revenue of the master leases rose 3% YoY in AUD terms in FY 2024. In 2025, domestic overnight trips are expected to increase 1.8% YoY, while international visitor arrivals are expected to surpass pre-pandemic levels only in 20261. Domestic travellers are expected to remain the primary source of guests at CLAS’ properties, with demand driven by events such as the British & Irish Lions’ Tour and Green Day concerts. In 2025, Sydney Central Hotel will undergo AEI, where 72 rooms across eight floors will be added in the airspace above the carpark podium, increasing the hotel’s inventory by 28% and gross floor area by 10%. Development approval has been obtained for this brownfield initiative. 1 Source: Tourism Research Australia (2024) 2 Source: Horwath HTL (2025) 27 Annual Report 2024
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