notes to the financial statements - Pphg.com

a Brand
neW era
UnLeasHinG OUr
Brand POtentiaL
A new look for “Pan Pacific”
and “PARkRoyAl”
G’day, aUstraLia!
Upping our ante Down Under
ridinG Waves in BaLi
Relax and rejuvenate
at our newest resort
Pan Pacific Hotels Group Limited
Annual Report 2010

a nOte FrOm
Pan PaciFic
HOtels GrOuP
Pan Pacific Hotels Group owns and/or manages
over 30 hotels, resorts and serviced suites across
Asia, Oceania and North America, including those
under development. Headquartered in Singapore,
it is a listed subsidiary of UOL Group Limited,
an established property company in Asia with a
diversified portfolio.
As an international hotel management company with more
than 11,000 rooms including those under development,
Pan Pacific Hotels Group is dedicated to creating memorable
hotel experiences. Its hospitality offerings are grouped
under two acclaimed brands: “Pan Pacific” features luxurious
accommodations and refreshing experiences that entice
the senses; while “PARKROYAL” reflects stylish comfort and
authentic local encounters inspired by the interesting locales
of its hotels.
Pan Pacific Hotels Group builds brands that resonate with
guests, customers and associates. It enhances shareholders’
value by driving greater innovation, customer focus and
partner engagement. Complementing its hospitality brands,
the Group also owns and operates the award-winning
“St Gregory” spas and “Si Chuan Dou Hua” restaurants.
Our
VisiOn
Creating memorable
hotel experiences…
Our
PurPOse
Great Brands, Great
Hotels, Great People,
Great Relationships!
Our
Values
• We work better
together because
we collaborate,
share, care about
each other and
communicate openly
with everyone.
• We keep our
processes as simple
and as uncomplicated
as possible and take
full responsibility for
our actions.
• We have an “internal
debate, external
cohesion” culture
with a can-do
attitude and always
try to have fun.
• We enhance our
performance by
always aiming higher
and are not afraid
of making the tough
decisions.
• We respect and
care for our wider
community through
being connected
and sharing, we also
recognise and value
diversity in every way.
On tHe cOVer
a Brand
neW era
unleasHinG Our
Brand POtential
A new look for “Pan Pacific”
and “PARKROYAL”
G’day, australia!
Upping our ante Down Under
ridinG WaVes in Bali
Relax and rejuvenate
at our newest resort
Pan Pacific Hotels Group limited
Annual Report 2010
Pan Pacific Hotels
Group ushers in
A Brand New Era,
marked by the
refreshment of our
“Pan Pacific” and
“PARKROYAL” brand
identities.
Primed for growth,
our brands are geared
for expansion in Asia,
Greater China, North
America and Australia.
Page 22
OUr LeAderSHiP
12 Board of directors
16 Key Management
executives
18 Group Structure
OUr BrANdS
22 embracing A
Brand New era
24 Pan Pacific Hotels
and resorts
28 PArKrOYAL Hotels
& resorts
32 Lifestyle Brands
OUr HOteLS
36 Operations Overview
38 Portfolio Summary
42 Southeast Asia
taBle OF
cOntents
Snapshot
Milestones
2010/11
Chairman’s
Message
45 People’s republic of China
46 Australia
48 North America
49 Our Awards 2010
50 Our Pipeline Projects
52 Human Capital
and development
54 Sustainability and Corporate
Social responsibility
OUr PerfOrMANCe
58 five-Year financial
Summary
61 financial review
64 Group Value-Added
Statement
65 financial Contents
65 financial Calendar
1

A BRAND
2 new era
snAPsHOT
KEy FinAnciAL TREnds
2006 2010 CAGR
Revenue $287m $324m 3.10%
RevPAR $105.97 $125.03 4.22%
EBITDA $80m $97m 4.94%
Earnings per share* 6.87 cents 7.53 cents 2.32%
Total assets $740m $1,129m 11.13%
Shareholders' funds $514m $802m 11.75%
* before other gains/(losses)
and fair value adjustments
350
300
250
200
GROUP REVEnUE $’M
2006 2007 2008 2009 2010
LEGEnd
hOteL
Ownership
hOteL
ManaGeMent
serViCes
pan paCifiC hOteLs GrOup LiMited
prOpertY
inVestMents
inVestMents
900
800
700
600
500
400
300
200
100
RETURn On sHAREHOLdERs’ EQUiTy $’M
0 0
2006 2007 2008 2009 2010
LEGEnd
return
On eQuitY
aVeraGe
sharehOLders’
fund
30%
25%
20%
15%
10%
5%
30
25
20
15
10
5
0
-5
dELiVERinG sHAREHOLdER VALUE
Each year, embracing the challenge to drive operational
excellence – ensuring profitability, continued growth and
superior brand performance – has enabled Pan Pacific Hotels
Group to deliver solid financial results.
2010 was no exception. Continued efforts to grow our portfolio,
strengthen our brands, nurture stakeholder relationships and
develop our human capital have stood us in good stead.
With these endeavours working together to create memorable
hotel experiences, we are confident in our ability to deliver
greater shareholder returns for years to come.
nET cAsH FLOW RETURns On AssETs
2006 2007 2008 2009 2010
LEGEnd
sinGapOre
hOteLs
aVeraGe
MYanMar
hOteLs
aVeraGe
pan paCifiC
hOteLs GrOup
aVeraGe
austraLia
hOteLs
aVeraGe
China
hOteLs
aVeraGe
VietnaM
hOteLs
aVeraGe
MaLaYsia
hOteLs
aVeraGe
1,200
1,000
800
600
400
200
0
sOURcEs OF FinAncE $’M
2006 2007 2008 2009 2010
LEGEnd
nOn-
COntrOLLinG
interests
interests Of
the eQuitY
hOLders Of
the COMpanY
BOrrOwinGs
3
ANNUAL REPORT 2010

A BRAND
4 new era
miLEsTOnEs
2010/11
smOOTH sTRidEs
January
inTO sUzHOU
The opening of Pan Pacific Suzhou
marked our second hotel in China.
Fusing traditional landscapes and
ancient aesthetics with modern
comforts and luxury, this 481-room
hotel welcomed its first guests with
premier facilities and unrivalled
personalised service.
cEmEnTinG cOnnEcTiOns
in cHinA
To reinforce our China presence
and deliver on our global expansion
strategy, our seventh Global Sales
Office was established in Shanghai.
pan paCifiC hOteLs GrOup LiMited
February may
RidinG WAVEs cOmmOn PLATFORm FOR
in BALi sEAmLEss inTEGRATiOn
A hotel management agreement for an integrated resort,
to be rebranded Pan Pacific Nirwana Bali Resort, was
inked. Featuring 278 luxurious suites and villas, world-class
amenities and an award-winning golf course designed
by Greg Norman, this 103-ha development in Tanah
Lot overlooks Bali’s magnificent coast and the island’s
spectacular volcanic mountains.
On 1 April, the rebranded Pan Pacific Nirwana Bali Resort
was launched amidst champagne celebrations and colourful
ceremonies. As part of our Vision to create memorable
hotel experiences, the resort is undergoing enhancements
to improve its integrated and holistic appeal.
march
BUiLdinG OUR BRAnd
in BAnGKOK
Setting industry standards
in Thailand with round-theclock
personal assistance
is the newly opened Pan
Pacific Serviced Suites
Bangkok. The 148-suite
luxury accommodation
offers easy access to the
city’s business district and
trendiest nightspots while
providing all the comforts
of home.
SAP was adopted Group-wide as the enterprise
resource-planning solution across our owned
hotels. A common platform for our operating
June
sETTinG OUR
siGHTs On ninGBO
The signing of a hotel management agreement
for the 430-room Pan Pacific Ningbo and the
200-room Pan Pacific Serviced Suites Ningbo
was a highlight for our expansion in China. The
A PARTnERsHiP
ABOVE PAR
The Group teamed up
with Asian Tour as
official hotel partner for
its highly anticipated
golf tournaments in the
region. Collaboration with
Asia’s official sanctioning
body for professional
golf underscores our
mission to reach out to
new customer segments
across Asia.
mEmBERsHiP HAs
iTs PRiViLEGEs
and accounting systems enables quicker and
more efficient decisions as we streamline
business processes.
brand-defining additions, coupled with their
location in Ningbo’s up and coming industrial and
economic zone, are important stepping-stones
towards our growth in Greater Shanghai.
“Pan Pacific” and “PARKROYAL” launched
a new guest loyalty programme, GHA
Discovery, founded on the Global Hotel
Alliance platform, the world’s largest
alliance of 12 independent upscale and
luxury hotel brands. Rewarding members
with ‘Amazing Local Experiences’ unique
to wherever they travel, the programme
extends more benefits for loyal guests
and customers of “Pan Pacific” and
“PARKROYAL”, thus enhancing their
appeal to customers.
5
ANNUAL REPORT 2010

A BRAND
6 new era
July
UPPinG OUR AnTE
dOWn UndER
The Group announced its entry into
Australia with three hotels: PARKROYAL
Darling Harbour, Sydney, PARKROYAL
Parramatta and Pan Pacific Perth. To
nurture our presence in Australia and
New Zealand and launch our journey
into an exciting growth market, an
Oceania Area Team was appointed to
synergise efforts across our Operations,
Human Capital & Development and
Marketing & Sales functions.
TOP HOTELiERs
cOnVERGE
Mr Patrick Imbardelli (third from
left), our President and CEO, shared
insights on “Global Issues, Local
Impacts” together with industry
experts at the 2010 Australia, New
Zealand & Pacific Hotel Industry
Conference held in Sydney. Mr Eric
Levy, Senior Vice President for Growth
& Development, was a panel member
at the discussion on “Hot New Brands,
Hotels & Players Take Centre Stage”.
pan paCifiC hOteLs GrOup LiMited
september
nEW PERsPEcTiVEs On
PEOPLE mAnAGEmEnT
Sharing global best practices with HR professionals, our
Senior Vice President for Human Capital & Development,
Mrs Melody King, spoke on “Harnessing Human Capital
for Successful Regionalisation in Asia” at the Singapore
Human Capital Summit.
October
sHARinG sTRATEGic UnLEAsHinG OUR BRAnd
insiGHTs POTEnTiAL
Demonstrating the Group’s
thought leadership among
industry peers, Mr Patrick
Imbardelli was a panellist
speaker on “Future Trends/
Bold Predictions” at the
Hotel Investment Conference
held in Hong Kong.
sTyLisH REsidEncEs in
KUALA LUmPUR
Global branding agency, The
Brand Union was appointed
to refresh the “Pan Pacific”
and “PARKROYAL” brands.
The exercise was aimed at
strengthening our brands’
identities and offerings so
that they resonate more
strongly with the modern
consumer.
The opening of the 287-room PARKROYAL Serviced
Suites Kuala Lumpur marked the first “PARKROYAL”
extended-stay product outside Singapore. Exuding
stylish comfort replete with modern amenities, the
property offers full access to business and leisure
facilities in the heart of Kuala Lumpur.
G’dAy, AWAKEninG in
AUsTRALiA! WEsTERn AUsTRALiA
“PARKROYAL” marked its homecoming
to Australia with the 345-room
PARKROYAL Darling Harbour, Sydney
and the 196-room PARKROYAL
Parramatta. After a 10-year absence
from where the “PARKROYAL” brand
was conceived, the newly rebranded
properties put us back on the map
with prime locations in downtown
Sydney and Parramatta.
TOUcHdOWn in
november January 2011
december
mELBOURnE
The Group invested further in
Australia with an agreement to
acquire the Hilton Melbourne Airport
Hotel. The 276-room landmark
property is sited at Australia’s second
busiest aviation hub.
The opening of the 486room
Pan Pacific Perth
signaled the brand’s debut
in Australia. Impressing
the market with signature
hospitality and elegant
accommodations, the hotel
also features spacious
function rooms, indulgent
dining options and great
views of the Swan River.
cLicKinG-in
OnLinE
The refreshed “Pan Pacific” and “PARKROYAL” brand
websites were launched. With easy navigation and onestop
reservation just a click away, the new look reflects our
rejuvenated brands captured through their new visual and
verbal identities.
“PARKROyAL” VEnTUREs
inTO cHinA
The Group entered into two hotel management agreements
that will launch the “PARKROYAL” brand in China. The 325room
PARKROYAL Serviced Suites, Green City, Shanghai
will open its doors in 2012, followed by the 200-room
PARKROYAL Suzhou Taihu Resort, Suzhou in 2014.
7
ANNUAL REPORT 2010

A BRAND
8 new era
cHAiRmAn’s
mEssAGE
dR WEE cHO yAW
Chairman, Pan Pacific Hotels Group
the Group’s hotel management
division continued its expansion
during the year with the addition
of six new properties to its brands.
2010 Performance And dividend
2010 saw a strong rebound from the global
economic slowdown in 2009. In line with the
improvements in the global economy, Singapore
achieved a strong GDP growth of 14.5% in 2010.
International travel and tourism which is driven
by the global economy gained momentum in
2010 with the Asia Pacific region leading the
recovery.
For the year under review, Group’s pre-tax profit
before impairment charge and fair value losses
increased by 19% to $60.2 million from the $50.8
million achieved in 2009. In 2010, the Group also
recognised a fair value gain of $10.0 million on
its investment properties (2009: fair value loss
of $1.6 million). As a result, the Group’s profit
before tax increased by $21.2 million or 43% to
$70.4 million (2009: $49.2 million). The Group’s
net profit attributable to shareholders increased
by 36% to $53.6 million from $39.3 million
achieved in 2009.
Your Board is recommending a first and final
dividend of 4 cents per share (2009: first and
final dividend of 3.5 cents) amounting to $24
million (2009: $21 million) for the year ended 31
December 2010.
Operations
singapore Operations
Benefiting from the opening of the two
integrated resorts and the pickup in business
travel, visitor arrivals to Singapore increased
by 20% to reach a record high of 11.6 million in
2010. Average occupancy for the hotel industry
increased by 9.8 percentage points to 86% while
average room rate increased by 12% to $212
in 2010 (2009: $190). The Group’s hotels and
pan paCifiC hOteLs GrOup LiMited
serviced suites in Singapore benefited from the
increase in visitor arrivals and achieved higher
revenue and profit.
Overseas Operations
Outside Singapore, the Group’s hotels in Australia
and Myanmar benefited from improvements in
occupancy and average room rates while the
Vietnam hotels, despite enjoying improved
occupancy still lagged in average room rates
when compared to 2009. In Malaysia, while
the Kuala Lumpur hotel showed improvements
in occupancy and average room rates, the
average occupancy rate of the hotel in Penang
was affected by the re-opening of a competitor
hotel previously under renovation. Our hotel
in Suzhou, China continues to be affected by
increased competition.
Hotel management division
The Group’s hotel management division
continued its expansion during the year with the
addition of six new properties to its brands. Three
of the Group owned hotels were rebranded to
“Pan Pacific” or “PARKROYAL” during the course
of 2010 when the management contracts with
third party operators expired. The Pan Pacific
Suzhou was rebranded in January 2010 while
PARKROYAL Darling Harbour and PARKROYAL
Parramatta were rebranded in November 2010.
The Group saw the opening of two new serviced
suites, namely the 148-unit Pan Pacific Serviced
Suites Bangkok in March 2010 and the 287-unit
PARKROYAL Serviced Suites Kuala Lumpur in
October 2010. The Group also expanded its
profile in Indonesia with the rebranding of the
278-room Pan Pacific Nirwana Bali Resort in
April 2010.
During the year, the Group also secured the
management rights to two new developments
in China, namely the Pan Pacific Ningbo
(comprising 430 hotel guestrooms and 200
serviced suites) and the PARKROYAL Serviced
Suites Green City, Shanghai (325 serviced
suites). The two properties are expected to open
in the first quarter of 2012.
In January 2011, the Group rebranded the 486room
Pan Pacific Perth when the management
contract with a third party operator expired.
The Group also secured the management rights
to a resort development in Suzhou, China. The
200-room PARKROYAL Taihu Resort, Suzhou is
scheduled to open in 2014.
corporate developments
incorporation of new subsidiary in china
To enhance the management and operations
of hotels and serviced suites in China, the
Group incorporated a new wholly owned
subsidiary named Pan Pacific (Shanghai) Hotel
Management Co., Ltd. in Shanghai to support
the development of our two brands.
Acquisition of shares in subsidiaries
In May 2010, the Company acquired the remaining
5% interest in Success City Pty Limited (“SCPL”)
further to the exercise of the put options by the
two minority shareholders. Total consideration
of A$2.0 million (S$2.5 million) was paid for the
2,151,042 ordinary shares.
The Company also acquired from the same
parties the remaining 40% interest in Success
Venture Investments (Australia) Ltd (“SVIA”)
in November 2010 for a total consideration of
A$34.0 million (approximately S$43.5 million).
SVIA is an investment company with its principal
assets being two hotels in Sydney, Australia,
namely PARKROYAL Darling Harbour and
PARKROYAL Parramatta.
Following the acquisitions, SCPL and SVIA
became wholly owned subsidiaries.
Hotel / serviced suites development
Hotel & commercial development at
Upper Pickering street, singapore
Construction works are in progress for the
development of the 363-room hotel and
approximately 7,300 square metres of office
space. The project is expected to be completed
in mid-2012.
Redevelopment at The Plaza,
Beach Road, singapore
Works for the redevelopment of the existing
Furniture Mall located at The Plaza into a 184unit
serviced suites, with a column-free ballroom
and meeting rooms, commenced in September
2010. Piling works are in progress and the
project is scheduled to be completed in the
fourth quarter of 2012.
Acquisition of Hotel in melbourne, Australia
The Group entered into a conditional agreement
for the acquisition of the Hilton Melbourne
Airport Hotel for an aggregate cash consideration
of A$108.9 million (or approximately S$141.6
million). The Hilton Melbourne Airport Hotel
comprises a 276-room hotel with three food and
beverage outlets and extensive convention and
meeting facilities. The acquisition is scheduled
to be completed on 31 March 2011 and the hotel
will be rebranded as PARKROYAL Melbourne
Airport.
Outlook for 2011
The economies of Singapore and the region
should continue to grow in 2011, albeit at a more
moderate pace. The Asia Pacific is expected to
be the most dynamic region for tourism with
strong growth in intra-regional travel. Against
this background of robust outlook, the Group
expects to see improved occupancy and/or
room rates for its hotels.
Acknowledgement
Dr Lim Kee Ming who has served as a director
since 1995, has indicated that he would not be
standing for re-appointment at the forthcoming
Annual General Meeting. On behalf of the Board,
I would like to thank Dr Lim for his invaluable
contributions in the past 16 years.
On behalf of the Board, I wish to express my
appreciation and thanks to the management and
staff for their hard work and to our shareholders
and business associates for their continuing
support. My appreciation goes to my colleagues
on the Board for their counsel and guidance
during the past year.
dR WEE cHO yAW
Chairman
February 2011
9
ANNUAL REPORT 2010

A BRAND
10 new era
pan paCifiC hOteLs GrOup LiMited
OUR
LEAdERsHiP
in THis sEcTiOn
Board of directors
Key Management executives
Group structure
11
ANNUAL REPORT 2010

A BRAND
12 new era
1 2 3 4 5
BOARd OF diREcTORs
1. dR WEE cHO yAW
ChairMan
Dr Wee is the Chairman of the Company
(“PPHG”) and its holding company, UOL
Group Limited (“UOL”). He was appointed
to the Board since 25 May 1973 and was last
re-appointed as Director at PPHG’s Annual
General Meeting on 21 April 2010.
Dr Wee, who is a non-executive and nonindependent
Director of PPHG, is also the
Chairman of the Executive Committee
and a Member of the Nominating and
Remuneration Committees.
Dr Wee received Chinese high school
education and he is a career banker with
more than 50 years of experience. He is the
Chairman of United Overseas Bank Limited,
Far Eastern Bank Limited, United Overseas
Insurance Limited, United International
Securities Ltd, Haw Par Corporation Limited,
United Industrial Corporation Limited,
Singapore Land Limited and Marina Centre
Holdings Private Limited. He is also the
Chairman of Wee Foundation.
Dr Wee is the Honorary President of the
Singapore Federation of Chinese Clan
Associations, Singapore Hokkien Huay
Kuan and Singapore Chinese Chamber of
Commerce & Industry and a Pro-Chancellor
of Nanyang Technological University.
In 2008, he was conferred an honorary
Doctor of Letters by the National University
of Singapore for his accomplishments
in banking, education and community
leadership. He was a recipient of the Credit
Suisse Ernst & Young Lifetime Achievement
Award in 2006 and named Singapore
pan paCifiC hOteLs GrOup LiMited
Businessman of the Year in 1990 and
2001. In 2009, he was conferred a Lifetime
Achievement Award by The Asian Banker.
2. mR GWEE LiAn KHEnG
GrOup Chief exeCutiVe
Mr Gwee is the Group Chief Executive of
PPHG and UOL and has been with the
UOL Group since 1973. He was appointed
to the Board since 20 January 1987 and
was last re-elected as Director at PPHG’s
Annual General Meeting on 28 April 2009.
Mr Gwee, who is an executive and nonindependent
Director, is also a Member of
the Executive Committee.
Mr Gwee is a Director of various subsidiaries
in the PPHG Group and UOL Group. He
is also a Director of United Industrial
Corporation Limited and Singapore Land
Limited and was previously a Director of
Overseas Union Enterprise Limited.
He holds a Bachelor of Accountancy
(Honours) degree from the University
of Singapore and is a Fellow Member of
the Chartered Institute of Management
Accountants and Association of Chartered
Certified Accountants in the United
Kingdom and the Institute of Certified
Public Accountants of Singapore.
Mr Gwee was awarded the Pingat Bakti
Masyarakat (PBM) Public Service Medal and
the Bintang Bakti Masyarakat (BBM) Public
Service Star in 1994 and 2002 respectively
by the President of Singapore.
3. mR ALAn cHOE FOOK cHEOnG
Mr Alan Choe was appointed to the Board
since 2 May 1990 and was last re-appointed
as Director at PPHG’s Annual General
Meeting on 21 April 2010. Mr Choe, who is
an independent and non-executive Director,
is also the Chairman of the Nominating
Committee and a Member of the Executive,
Audit and Remuneration Committees. He is
also a Director of UOL.
An architect and town planner by
profession, Mr Choe was the first General
Manager of the Urban Redevelopment
Authority and a Senior Partner of one
of the largest architectural practices in
Singapore. He was the Chairman of Sentosa
Development Corporation, Sentosa Cove
Pte Ltd, Pasir Ris Resort Pte Ltd, a Trustee
of NTUC Income and Member of Singapore
Tourism Board.
Mr Choe holds a Bachelor of Architecture
degree, a Diploma in Town & Regional
Planning from University of Melbourne
and a Fellowship Diploma from the Royal
Melbourne Institute of Technology. He is a
Fellow Member of the Singapore Institute of
Architects, Singapore Institute of Planners
and Royal Australian Institute of Architects.
He is also a Member of the Royal Institute
of British Architects, Royal Town Planning
Institute, Royal Australian Planning Institute
and American Planning Association.
He was awarded the Public Administration
Medal (Gold) in 1967, the Meritorious Service
Medal in 1990, and the Distinguished
Service Order in 2001.
4. dR Lim KEE minG
Dr Lim Kee Ming was appointed to the
Board since 1 June 1995 and was last
re–appointed as Director at PPHG’s Annual
13
General Meeting on 21 April 2010. Dr Lim,
who is an independent and non-executive
Director, is also the Chairman of the Audit
and Remuneration Committees and a
Member of the Nominating Committee. He
is also a Director of UOL.
Dr Lim is the Chairman of Lim Teck Lee
Group of companies. He is also a Director
of Haw Par Corporation Limited and is
presently the President of Ngee Ann Kongsi
and Chairman of Ngee Ann Development.
He is an Honorary President of Singapore
Chinese Chamber of Commerce & Industry,
Teochew Poit Ip Huay Kuan and Advisor of
Network China.
He was awarded the Pingat Bakti
Masyarakat (PBM) Public Service Medal and
the Bintang Bakti Masyarakat (BBM) Public
Service Star in 1995 and 2004 respectively
by the President of Singapore and also
The Royal Order of the Polar Star “Class of
Commander” by his Excellency, the King of
Sweden in 1982.
Dr Lim holds a Master of Science
(International Trade & Finance) degree
from Columbia University, New York,
and a Bachelor of Science (Business
Administration) degree from New York
University, USA.
In 2009, Dr Lim was conferred the degree
of Doctor of the University of Adelaide
honoris causa, for his distinguished service
to the community.
5. mR WEE EE cHAO
Mr Wee was appointed to the Board since
9 May 2006 and was last re-elected as
ANNUAL REPORT 2010

A BRAND
14 new era
Director at PPHG’s Annual General Meeting
on 21 April 2010. Mr Wee, who is a nonexecutive
and non-independent Director, is
a Member of the Executive Committee and
also a Director of UOL.
Mr Wee has led the management of UOB-
Kay Hian Holdings Limited for more than
25 years. He is currently the Chairman
and Managing Director of UOB-Kay Hian
Holdings Limited and a Director of most of
the UOB-Kay Hian Group of companies. Mr
Wee also manages Kheng Leong Company
(Private) Limited which is involved in real
estate development and investments and
is a non-executive director of Haw Par
Corporation Limited. He had previously
served as Chairman of the Singapore
Tourism Board between 2002 to 2004.
Mr Wee holds a Bachelor of Business
Administration degree from The American
University Washington DC, USA.
6. mR JAmEs KOH cHER siAnG
Mr James Koh was appointed to the Board
since 23 November 2005 and was last
re-elected as Director at PPHG’s Annual
General Meeting on 23 April 2008. Mr Koh,
who is an independent and non-executive
Director, is also a Director of UOL.
Mr Koh joined the Housing & Development
Board (“HDB”) in July 2005 after retiring
from 35 years of distinguished service in the
civil service. He is currently the Chairman of
the HDB. His prior appointments included
Permanent Secretary, Ministry of National
Development (1979), Ministry of Community
Development (1987) and Ministry of
Education (1994) as well as Commissioner of
pan paCifiC hOteLs GrOup LiMited
6 7 8 9 10
Inland Revenue and Chief Executive Officer
of Inland Revenue Authority of Singapore.
Mr Koh is also the Chairman of CapitaMall
Trust Management Limited, Singapore
Deposit Insurance Corporation Limited
and Singapore Island Country Club. He
is also a Director of CapitaLand Limited,
Singapore Airlines Limited, Singapore
Cooperation Enterprise and CapitaLand
Hope Foundation. He is also a Member
of the Presidential Council for Religious
Harmony and an Adjunct Professor of the
Lee Kuan Yew School of Public Policy.
Mr Koh holds a Bachelor of Arts (Honours)
degree in Philosophy, Political Science
and Economics, Master of Arts degree
from University of Oxford, UK and holds
a Master in Public Administration degree
from Harvard University, USA.
He was awarded the Public Administration
Medal (Gold) in 1983 and the Meritorious
Service Medal in 2002.
7. mR LOW WEnG KEOnG
Mr Low was appointed to the Board since
23 November 2005. He was last re-elected
as Director at PPHG’s Annual General
Meeting on 23 April 2008. Mr Low, who is
an independent and non-executive Director,
is a Member of the Audit Committee and
also a Director of UOL.
Mr Low is also an independent Director
of listed companies Riverstone Holdings
Limited and Unionmet (Singapore) Limited.
He is also a director of Singapore Institute
of Accredited Tax Professionals Limited. He
was a former Country Managing Partner of
Ernst & Young, Singapore and is currently
the President and Chairman of the Board
of Directors of CPA Australia Limited.
Mr Low is a Fellow Member of CPA Australia,
Institute of Chartered Accountants in
England & Wales, Institute of Certified
Public Accountants of Singapore and an
Associate Member of Chartered Institute
of Taxation (UK).
8. mR WEE EE Lim
Mr Wee was appointed to the Board since
9 May 2006. He was last re-elected as
Director at PPHG’s Annual General Meeting
on 21 April 2010. Mr Wee, who is a nonexecutive
and non-independent Director,
is also a Director of UOL.
He joined Haw Par Corporation Limited
(“Haw Par”) in 1986 and is currently the
President and Chief Executive Officer of
Haw Par. He is also a Director of United
Industrial Corporation Limited, Singapore
Land Limited, Hua Han Bio-Pharmaceutical
Holdings Limited (a company listed on
the Hong Kong Stock Exchange) and
Wee Foundation. He was previously a
board member of Sentosa Development
Corporation.
Mr Wee holds a Bachelor of Arts (Economics)
degree from Clark University, USA.
9. ms WEE WEi LinG
Ms Wee was appointed to the Board since
24 March 1994 and has been with the PPHG
Group for over 20 years.
She was last re-elected as Director at
PPHG’s Annual General Meeting on 28 April
2009. Ms Wee, who is an executive and
15
non–independent Director, is also a director
of various subsidiaries in PPHG.
She oversees the asset management
of PPHG’s hotel properties and is also
responsible for the management of the
chain of St Gregory Spa and Si Chuan Dou
Hua Restaurants.
Ms Wee holds a Bachelor of Arts degree
from Nanyang University, Singapore.
10. mR AmEdEO PATRicK imBARdELLi
Mr Imbardelli is the President and Chief
Executive Officer and was appointed
to the Board since 21 August 2009. He
was last re-elected as Director at PPHG’s
Annual General Meeting on 21 April 2010.
Mr Imbardelli, who is an executive and nonindependent
Director, is also a director of
various subsidiaries in PPHG.
Prior to joining PPHG, Mr Imbardelli
held senior management positions at
InterContinental Hotels Group, Southern
Pacific Hotel Corporation and Hilton
International. He has over 25 years of
experience in the hotel industry including
managing global multibrand organisations.
He leads the strategic management
and expansion of PPHG’s hotels and
businesses, including both “Pan Pacific”
and “PARKROYAL” brands across the Asia
Pacific region.
Mr Imbardelli holds a Master of Science
(Honours) degree in Finance from The City
University of New York, USA. He is a Fellow
of the American Academy of Financial
Management, USA and a Member of the
Young Presidents’ Organisation and its
Singapore Executive Committee.
ANNUAL REPORT 2010

A BRAND
16 new era
KEy mAnAGEmEnT
ExEcUTiVEs
5 6
1 2
pan paCifiC hOteLs GrOup LiMited
7
3
8
4
9
1. mR GWEE LiAn KHEnG
2. ms WEE WEi LinG
3. mR AmEdEO PATRicK imBARdELLi
The profiles of Mr Gwee, Ms Wee and
Mr Imbardelli are in the Board of Directors
section of this report.
4. mR FOO THiAm FOnG WELLinGTOn
Mr Foo joined UOL in 1977 after graduating
from University of Singapore with
a Bachelor of Accountancy (Honours)
degree. He is Company Secretary of both
UOL and PPHG, and a director of several of
their subsidiaries. He is also Chief Financial
Officer of UOL.
Mr Foo is a Fellow of the Institute of
Certified Public Accountants of Singapore
and CPA Australia, and an Associate of
both the Institute of Chartered Secretaries
and Administrators and the Chartered
Institute of Management Accountants.
5. mR nEO sOOn HUP
Mr Neo is Chief Financial Officer of PPHG
and a director of several of its subsidiaries.
He oversees the financial management
of PPHG and focuses on improving
efficiency to drive business performances.
Mr Neo was a Senior Audit Manager with
PricewaterhouseCoopers prior to joining
UOL in 2003 and has 14 years of experience
in auditing.
He is a Fellow of the Institute of Certified
Public Accountants of Singapore and
a member of the Singapore Institute of
Chartered Secretaries and Administrators.
6. mR KEVin cROLEy
Mr Croley joined Pan Pacific Hotels and
Resorts in 2005 and is currently Senior Vice
President, Marketing & Sales of PPHG. He is
responsible for the development of brand
strategies and platforms for distribution,
e-commerce and revenue management. He
has over 29 years of experience in sales and
marketing, of which 22 years were spent in
the Asia Pacific region.
After starting his career with First
Hospitality Corporation of America, Mr
Croley worked with Hilton International,
InterContinental Hotels Group and the
Royal Garden Resorts Hotel Group. He
holds a Diploma in Hotel Management
and Operations from Belfast College of
Business Studies, UK.
7. mR dEAn scHREiBER
Mr Schreiber was appointed PPHG’s Senior
Vice President, Operations in 2010. His
responsibilities include the development
of operational systems and management
of service quality standards across all “Pan
Pacific” and “PARKROYAL” properties.
17
Mr Schreiber’s 24-year career in hospitality
management has spanned nine countries
and five continents. Prior to PPHG, he
was Group Managing Director with KOP
Group, where he was instrumental in the
development and operation of premium
hospitality brands including Franklyn Hotels
& Resorts and Montigo Resorts. He was also
Group Operations Leader with Pan Pacific
Hotels and Resorts from 2004 to 2007
before joining luxury hospitality group,
Essque, as Vice President Operations.
8. mR ERic LEVy
Mr Levy joined PPHG in 2009 and is currently
Senior Vice President, Growth & Development.
He leads the Group’s global development
efforts to expand its hotel portfolio.
He has over 31 years of experience in hotel
operations, development advisory and
private equity, having previously established
his own hospitality investment and
advisory firms, Octagon Capital Partners
and Tourism Solutions International. His
previous appointments include senior roles
at Horwath Asia Pacific and Colony Capital
in Asia Pacific.
Mr Levy holds a Bachelor of Science
degree in hotel administration from Cornell
University in Ithaca, New York.
9. mRs mELOdy KinG
Mrs King joined PPHG in 2009 and is
currently Senior Vice President, Human
Capital & Development. She leads the
Group’s efforts in building capability and
developing talent.
A veteran with over 21 years of experience in
human resource management, she has held
senior Human Resources leadership roles
with multi-national companies including
Siebe Intelligent Automation, Asea Brown
Broveri (ABB) and Herbalife International.
Mrs King graduated from Les Roches Hotel
and Tourism School in Bluche-Montana,
Switzerland.
ANNUAL REPORT 2010

A BRAND
18 new era
GROUP
sTRUcTURE
As at 2 March 2011
pan paCifiC hOteLs GrOup LiMited
au Incorporated in Australia
BVi Incorporated in The British
Virgin Islands
MY Incorporated in Malaysia
Mn Incorporated in Myanmar
in Incorporated in Indonesia
Jp Incorporated in Japan
prC Incorporated in The People’s
Republic of China
th Incorporated in Thailand
usa Incorporated in United States
of America
Vn Incorporated in Vietnam
PRinciPAL AcTiViTiEs
Investment holding and others
Hotelier
Hotel management services
Spa, lifestyle and restaurant operations
Associated companies
pan paCifiC hOteLs GrOup LiMited
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
39.4%
100%
100%
100%
hOteL inVestMents (suzhOu) pte. Ltd.
hOteL inVestMents (hanOi) pte. Ltd.
YipL inVestMent pte. Ltd.
hOteL pLaza prOpertY
(sinGapOre) pte. Ltd.
new parK hOteL (1989) pte Ltd
parKrOYaL hOteLs & resOrts pte. Ltd.
parKrOYaL serViCed residenCes pte. Ltd.
parKrOYaL internatiOnaL pte. Ltd.
pan paCifiC hOspitaLitY hOLdinGs pte. Ltd.
pan paCifiC internatiOnaL pte. Ltd.
united LifestYLe hOLdinGs pte Ltd
st GreGOrY spa pte Ltd
dOu hua restaurants pte Ltd
hpL prOperties (MaLaYsia) sdn. Bhd. [MY]
Garden pLaza COMpanY LiMited [Vn]
piLKOn deVeLOpMent COMpanY
LiMited [BVi]
suCCess Venture inVestMents
(wa) LiMited [BVi]
suCCess CitY ptY LiMited [au]
suCCess Venture inVestMents
(austraLia) Ltd [BVi]
100%
75%
95%
100%
100%
100%
100%
66.7% president hOteL
sdn Berhad [MY]
65%
100%
100%
100%
100%
suzhOu wuGOnG
hOteL CO., Ltd [prC]
westLaKe internatiOnaL
COMpanY [Vn]
YanGOn hOteL
LiMited [Mn]
pan paCifiC hOteLs and
resOrts pte. Ltd.
pan paCifiC MarKetinG
serViCes pte. Ltd.
pan paCifiC teChniCaL
serViCes pte. Ltd.
pan paCifiC
hOspitaLitY pte. Ltd.
33.3%
pLaza hOteL
COMpanY LiMited [Vn]
suCCess Venture (wa)
unit trust [au]
suCCess Venture ptY
LiMited [au]
suCCess Venture (darLinG
harBOur) unit trust [au]
suCCess Venture
(parraMatta) unit trust [au]
100%
99%
100%
100%
48.9%
100%
100%
pan paCifiC hOteLs and
resOrts aMeriCa, inC. [usa]
pt pan paCifiC hOteLs &
resOrts indOnesia [in]
pan paCifiC hOteLs and
resOrts Japan CO., Ltd [Jp]
pan paCifiC (shanGhai) hOteL
ManaGeMent CO., Ltd. [prC]
pphr (thaiLand)
COMpanY LiMited [th]
Grand eLite sdn. Bhd. [MY]
Grand eLite (penanG)
sdn. Bhd. [MY]
100%
19
pan paCifiC hOteLs and
resOrts seattLe, LLC [usa]
1%
ANNUAL REPORT 2010

A BRAND
20 new era
OUR
BRAnds
in THis sEcTiOn
embracing a Brand new era
pan pacific hotels and resorts
parKrOYaL hotels & resorts
Lifestyle Brands
pan paCifiC hOteLs GrOup LiMited
21
ANNUAL REPORT 2010

A BRAND
22 new era
pan paCifiC hOteLs GrOup LiMited
EmBRAcinG
A BRAnd
nEW ERA
the “pan pacific” and “parKrOYaL” identities
have always been associated with distinctive
accommodations and high service standards.
Over time, as the industry and consumer
preferences evolve and change, so too do brands
to address these changes.
01
The drive to connect with our guests at a level
that is meaningful and relevant was the reason
for an 18-month initiative that resulted with
fresh interpretations of our “Pan Pacific” and
“PARKROYAL” brands.
Quite clearly, the rebranding of two acclaimed
and well-established identities was not carried
out in isolation. We appointed established
international brand consultancy Interbrand,
and through a series of focus groups involving
qualitative interviews with hundreds of guests
and customers, we were able to determine the
nuances and unique elements that defined “Pan
Pacific” and “PARKROYAL”. We also worked
with experts at The Brand Union, another global
branding agency, to articulate the refreshed
brands’ positioning with new visual and verbal
elements.
Associate engagement workshops are a
quintessential element of the programme, so
that the right values and brand behaviours may
be imparted to each and every associate from
back office to front desk, and greater consistency
is achieved through our service delivery.
Ultimately, great brands offer unique experiences
that are valued and preferred over others. The
rebranding initiative we have embarked on will
continue to evolve in tandem with industry
benchmarks and global standards.
we also worked with experts
at the Brand union, another
global branding agency,
to articulate the refreshed
brands’ positioning with new
visual and verbal elements.
01: New “Pan Pacific” visual identity as
expressed in in-room compendium
and key cards.
02: New “PARKROYAL” visual identity as
expressed in hotel brochures, outdoor
advertising and key cards.
23
02
ANNUAL REPORT 2010

A BRAND
24 25
24 new era
19
hotels, resorts
and serviced suites
11 countries
OVER
20
industry honours and
top awards in 2010/2011
OVER
35 years of global
recognition
A Unique Pacific Ocean Blend
The “Pan Pacific” portfolio features
19 premium hotels, resorts and
serviced suites across Asia, North
America and Oceania. For over
35 years, these properties have
delighted guests with sensory
voyages, offering an invigorating
blend of the best that the Pacific
region has to offer.
Our Pacific Touch is the key to
enriching experiences that enliven
the senses and reinvigorate the
soul. Each property delivers a
sense of modern vibrancy and the
warmth of Pacific Rim hospitality.
This year, our outstanding brand of
hospitality was backed by various
accolades. Pan Pacific Hotels and
Resorts garnered World Travel
Awards in various categories with
Pan Pacific Singapore (‘Leading
Business Hotel in the World’),
Pan Pacific Nirwana Bali Resort
(‘Indonesia’s Leading Golf Resort’),
Pan Pacific Vancouver (‘Leading
Hotel in Canada’) and Pan Pacific
Serviced Suites Singapore
(‘Singapore’s Leading Serviced
Apartments’).
We also received the World Luxury
Hotel Award for ‘Luxury Airport
Hotel’ and APBF BrandLaureate
Award for ‘Best Airport Hotel Brand’
with Pan Pacific Kuala Lumpur
International Airport, as well as
coveted rankings on Travel+Leisure,
Condé Nast and other prestigious
magazines.
In 2010, the “Pan Pacific” footprint
was augmented with more great
hotels: Pan Pacific Suzhou, the
integrated Pan Pacific Nirwana Bali
Resort, and in January 2011, Pan
Pacific Perth. In its ever-expanding
pipeline are also Pan Pacific Ningbo
and Pan Pacific Serviced Suites
Ningbo in China, which are set to
open in 2012.
pan paCifiC hOteLs GrOup LiMited ANNUAL REPORT 2010

A BRAND
26 new era
OUR
PROmisE
the “pan pacific” brand provides refreshing
pacific experiences inspired by an invigorating
blend of its pacific rim locations. it is focussed
on enriching experiences that draw on a diversity
of landscapes and cultures; and relevant choices
that convey freedom and individuality.
The brand is delivered through an unmistakable “Pacific Touch” –
welcoming environments where easy efficiency is met by warm
hospitality, and contemporary styles reflect their local surrounds.
In line with its expansion strategy to grow the Pan Pacific Hotels
and Resorts portfolio in Asia, Greater China, North America and
Oceania, “Pan Pacific” debuted in Australia with the launch of Pan
Pacific Perth in 2011.
The opening of Pan Pacific Ningbo and Pan Pacific Serviced Suites
Ningbo, scheduled for 2012, will strengthen the brand’s presence
in China.
pan paCifiC hOteLs GrOup LiMited
Visually engaging collateral
highlight the play of light, warmth
and the expanse of the Pacific Rim.
OUR
idEnTiTy
As part of the “Pan Pacific”
brand refreshment, refinements
to the logo and typography
were introduced to symbolise
the sensory enhancements to
the “Pan Pacific” experience.
A soothing colour palette,
together with refreshed
designs for marketing materials
and hotel amenities were
also created to highlight the
moods and physical sensations
associated with ‘discovery’.
Visually, the brand essence
is redefined through a
photography style in advertising
and marketing collateral that
captures the sensual appeal
of the Pacific, the human
touch that conveys intuitive
yet unobtrusive service, and
emotive textures inspired by
each hotel’s location.
Locally sourced ingredients and
innovative visual presentations are
at the heart of the Pacific palate.
THE PAciFic
cUisinE
ExPERiEncE
Gastronomically, the “Pan
Pacific” brand is evoked through
culinary experiences that
appeal to the five senses. From
locally sourced ingredients to
innovative visual presentations,
the Pacific Cuisine experience
features menus that boast the
best food the Pacific Rim has
to offer.
It also offers a range of
unique settings and dining
environments to complement
each experience.
To further enhance the Pacific
Cuisine experience, a list of
signature Pacific Cocktails was
also created, showcasing the
choicest local ingredients –
from Californian pomegranates
to Thai calamansi – and
some of the latest mixology
techniques.
27
Offering enriching experiences and
relevant choices to guests define
our service philosophy.
i Am
PAn PAciFic
The “Pan Pacific” brand is
dedicated to a way of doing
things that is different from its
competitors. “I am Pan Pacific”
is an attitude that empowers
all associates to act as brand
ambassadors, infusing service
with a personal touch.
Every associate is actively
involved in the “Pan Pacific”
brand through a variety
of touch points ranging
from guests’ arrivals and
departures, to the Pacific
Cuisine, guestrooms and
spa experience. The brand
advocates going the extra
mile to meet guests’ needs
according to their time
zones.
ANNUAL REPORT 2010

A BRAND
28 29
28 new era
cLOsE TO
5decades
of trusted
hospitality
10
destinations across
Asia Pacific
2010
PARKROyAL comes
home to Australia
15
hotels, resorts
and serviced suites
A Trusted Local companion
The “PARKROYAL” portfolio comprises
15 hotels, resorts and serviced suites
in gateway cities across Australia,
China, Malaysia, Myanmar, Singapore
and Vietnam, including those under
development.
Exuding the spirit and individuality
of their location, each “PARKROYAL”
provides a connection to authentic
local experiences. A trusted provider
of hospitality that is consistently
supportive, modern and uncomplicated,
“PARKROYAL” leverages a strong
heritage that has flourished into
a reputable, upscale brand in the
Asia-Pacific.
In 2010, the brand opened its first
extended-stay property outside
Singapore with PARKROYAL Serviced
Suites Kuala Lumpur. It also marked
its homecoming to Australia, a market
where the brand was conceived, with
the launch of PARKROYAL Darling
Harbour, Sydney and PARKROYAL
Parramatta.
The brand continues to chart its
journey in Australia with the upcoming
PARKROYAL Melbourne Airport in
April 2011. Strengthening its footprint
in Singapore, the brand’s flagship
hotel in the city’s Central Business
District, PARKROYAL on Pickering,
is scheduled to open in 2012.
In addition, “PARKROYAL” is set to
debut in China with PARKROYAL
Serviced Suites Green City, Shanghai
and PARKROYAL Taihu Resort,
Suzhou.
pan paCifiC hOteLs GrOup LiMited ANNUAL REPORT 2010

A BRAND
30
new era
OUR
PROmisE
the “parKrOYaL” brand is centred on the idea
of being a trusted local companion for guests
and customers. it is focussed on providing
travellers with the best local knowledge and
connections in modern, comfortable and
welcoming environments through which they
can explore their surrounds.
Energised by the sights, sounds and flavours of their respective
unique locales, each “PARKROYAL” hotel weaves a tapestry
of personable charm fused with thoughtful creative touches,
local tastes and authentic encounters that connect guests to
the local environment.
Above all, “PARKROYAL” values a standard of service that is
consistent, genuine and uncomplicated. It caters to travellers’
needs by providing accommodations that are hospitable,
contemporary and comfortable.
pan paCifiC hOteLs GrOup LiMited
What to see, where to go, what to
do – the best local tips presented
through vivid photography and a
vibrant palette.
OUR
idEnTiTy
The refreshed “PARKROYAL”
brand is captured visually
through key enhancements
to its logo, the introduction
of a vivid colour palette and
a series of stylised motifs that
symbolise the vibrant cultures
of its respective regions.
These are carried through in
the brand’s print collaterals,
we b s i t e a n d g u e s t ro o m
amenities. Visually, the allure
and unobtrusive service at
each “PARKROYAL” destination
is conveyed in a photography
style that reflects spontaneity,
movement and friendly faces.
Personable charm, friendly support
and uncomplicated service are
exemplified by our PARKROYAL
People.
OUR
PARKROyAL
PEOPLE
PARKROYAL People are unified
by “PARKROYAL’s” objective
o f b e i n g a t r u ste d l o c a l
companion. Wherever they are,
our PARKROYAL People are
important touch points for the
brand, channelling their skills,
talents and local knowledge
to create a unique experience
that is consistently supportive,
authentic and personable.
As brand ambassadors,
PARKROYAL People bring a
caring human touch to every
aspect of the brand experience.
They also lend personality
and character to the rich
diversity of customs, cultures
and languages that define
the authenticity of every local
experience.
31
Authentic local encounters, through
expert advice and knowledge,
connect guests to each destination.
TRULy LOcAL
ExPERiEncEs
Every “PARKROYAL” property
is enlivened by the spirit and
individuality of its location.
Through locally inspired
accents, cuisines and truly
authentic encounters, the brand
invites travellers to discover
a personal connection to the
local destination and culture.
By involving every touch point
available from the moment
of arrival, the “PARKROYAL”
brand is an experience greater
than the sum of its parts, going
above and beyond to inject
extraordinary encounters with
local life and culture that bring
a genuine and unforgettable
dimension to the wonder of
travel.
ANNUAL REPORT 2010

A BRAND
32 new era
01: The ‘Mu Tong’ Milk Bath
treatment performed in
traditional cedar wood hot
tubs imported from the
United States.
02: 功夫茶 (Gong Fu Cha)
– an exacting ritual of
tea preparation by a Tea
Connoisseur.
03: A skilled Tea Master in action.
04: Chong Qing Diced Chicken
with Dried Chilli – a
signature Sichuan dish.
pan paCifiC hOteLs GrOup LiMited
LiFEsTyLE
BRAnds
Complementing our
hospitality services are
three lifestyle brands that
extend our philosophy
of creating memorable
experiences to the domains
of fine dining and premium
spas. each brand offers
complete indulgence for
the senses – exemplifying
our aspiration to provide
unforgettable destinations
for dining and relaxation.
01 02
03 04
05: Si Chuan Dou Hua Restaurant
at TOP of UOB Plaza, with
breathtaking views of the city
skyline.
06: The Thai Herbal Compress,
a signature treatment at St.
Gregory at Pan Pacific Singapore.
st. Gregory
Established in Singapore in 1997, “St. Gregory”
is a pioneer and leader in the spa and wellness
industry, offering an integrated lifestyle
management concept built on four unique
pillars: therapy, fitness, aesthetics and activeageing.
“St. Gregory” continues to set benchmarks in
a unique brand of spa expertise that combines
traditional therapies from China, India, Indonesia
and Thailand with advanced technology and
techniques from Europe and Asia.
As a one-stop centre for health and wellness,
“St. Gregory” offers state-of-the-art equipment
and workout systems, complete with personal
training programmes and fitness classes.
To enhance wellbeing, “St. Gregory” also
partners with a team of aesthetic and wellness
professionals to provide specialised treatments
and health management programmes.
In 2010, St. Gregory at PARKROYAL Penang
Resort was awarded the “Best Body Loving
Treatment” for its Signature Traditional Spa
Treatment in Harper’s Bazaar Spa Awards.
“St. Gregory’s” Tui Na Massage was also named
“Best Muscle-Relief Massage” in The Singapore
Women’s Weekly Best of Beauty Salons, Spas
and Services ranking.
“St. Gregory” owns and/or manages seven spas
in the Asia Pacific region including Singapore,
Malaysia and Japan.
05
33
si chuan dou Hua
The “Si Chuan Dou Hua” dining brand was
introduced with its flagship restaurant at
PARKROYAL on Beach Road in 1996. This
was followed by a second restaurant on the
60th floor of UOB Plaza 1 in 2002, a third at
PARKROYAL Kuala Lumpur in 2003 and a fourth
in Tokyo in 2007.
Over the years, “Si Chuan Dou Hua” has
impressed food connoisseurs with its delivery
of excellent culinary experiences, bringing the
delectable tastes of authentic Sichuan and
Cantonese cuisine to the world.
Amidst its elegant and contemporary interiors,
master chefs gratify astute palates with an
extensive menu of delicacies that truly showcase
the diverse flavours of Chinese food. At the same
time, diners are treated to premium Chinese teas
brewed by skillful Tea Masters who combine
martial arts, dance and gymnastics in the
traditional art of tea-pouring.
Tian Fu Tea Room
The first “Tian Fu Tea Room” was introduced in
2005 at PARKROYAL on Beach Road, followed
by a second outlet at UOB Plaza 1 in 2008. It is
the first fully dedicated tearoom in Singapore,
offering over 25 types of premium Chinese teas.
06
ANNUAL REPORT 2010

A BRAND
34 new era
OUR
HOTELs
in THis sEcTiOn
Operations Overview
- portfolio summary
- southeast asia
- people’s republic of China
- australia
- north america
Our awards 2010
Our pipeline projects
human Capital and development
sustainability and
Corporate social responsibility
pan paCifiC hOteLs GrOup LiMited
35
ANNUAL REPORT 2010

A BRAND
36 new era
OPERATiOns
OVERViEW
Growing from strength to strength
2010 presented Pan Pacific Hotels Group
with opportunities to strengthen its
portfolio and intensify its expansion
efforts.
Continuing on its growth strategy, the
Group concluded two landmark hotel
management agreements: the first for
an integrated resort in Bali, and the
second, for two properties in Ningbo,
China. It also commenced its expansion
in Oceania, beginning with three hotels
in Australia.
Cementing its international presence,
the Group made seven brand-defining
additions to its “Pan Pacific” and
“PARKROYAL” portfolios. These included:
Pan Pacific Suzhou, Pan Pacific Serviced
Suites Bangkok, Pan Pacific Nirwana Bali
Resort, PARKROYAL Serviced Suites
Kuala Lumpur, PARKROYAL Darling
EXISTING CONFIRMED PIPELINE
NO. OF HOTELS NO. OF ROOMS NO. OF HOTELS NO. OF ROOMS
BY BRANDS
Pan Pacific 16 5,111 3 964
PARKROYAL 10 2,990 5 1,348
Others 2 595 – –
TOTAL 28 * 8,696 8 2,312
BY OwNERSHIP TYPE
Owned 13 4,265 3 823
Managed 15 4,431 5 1,489
TOTAL 28 8,696 8 2,312
* As at 31/1/2011
pan paCifiC hOteLs GrOup LiMited
18
17
16
Harbour, Sydney, PARKROYAL Parramatta
and in January 2011, Pan Pacific Perth.
During the year, the Group made further
headway with its brands refreshment
work to engage its customers. Its work
with international brand agency The
Brand Union resulted in rejuvenated
brand strategies for “Pan Pacific” and
“PARKROYAL”, executed through
new visual and verbal identities in
multiple channels and enhanced guest
experiences.
The Group currently manages and/
or owns over 30 hotels, resorts and
serviced suites in 12 countries. Including
pipeline developments, the “Pan Pacific”
portfolio comprises 19 hotels, resorts
and serviced suites in Asia, Oceania and
North America, while “PARKROYAL” is
represented by 15 hotels, resorts and
serviced suites in Asia Pacific.
1 sinGAPORE
the plaza
parKrOYaL on Beach road
parKrOYaL on Kitchener road
parKrOYaL serviced suites singapore
pan pacific singapore
pan pacific Orchard
pan pacific serviced suites singapore
2 KUALA LUmPUR
parKrOYaL Kuala Lumpur
pan pacific Kuala Lumpur
international airport
parKrOYaL serviced suites
Kuala Lumpur
3 PEnAnG
parKrOYaL penang resort
4 BAnGKOK
pan pacific serviced suites Bangkok
5 BALi
pan pacific nirwana Bali resort
6 JAKARTA
sari pan pacific Jakarta
9 11 13 12
10 4 3
7 mAniLA
pan pacific Manila
6 5
8 HO cHi minH ciTy
parKrOYaL saigon
sofitel saigon plaza
9 HAnOi
sofitel plaza hanoi
10 yAnGOn
parKrOYaL Yangon
11 dHAKA
pan pacific sonargaon dhaka
12 sUzHOU
pan pacific suzhou
13 xiAmEn
pan pacific xiamen
14 PERTH
pan pacific perth
15 sydnEy
LEGEnd
37
investment property Owned
by the Group
properties Owned and Managed
by the Group
properties Owned by the Group and
Managed by third parties
properties Owned by third parties and
Managed by the Group
ANNUAL REPORT 2010
8
7
2
1
14
parKrOYaL darling harbour, sydney
parKrOYaL parramatta
16 sEATTLE
pan pacific seattle
17 VAncOUVER
pan pacific Vancouver
18 WHisTLER
15
pan pacific whistler Mountainside
pan pacific whistler Village Centre

A BRAND
38 new era
PORTFOLiO
sUmmARy
investment Properties Owned by The Group
The Plaza
Retained interests in a 32-storey tower block comprising restaurants, hotel function rooms, shops,
offices and serviced suites, two adjacent commercial buildings and a multi-storey carpark block at
7500 Beach Road, Singapore
shops & Offices
completed 1974 & 1979
Tenure of Land 99-Year Lease from 1968
Approximate net
Lettable Area (sqm) 18,597
car Park Facilities 385 (portion of multi-storey
carpark under construction)
s$101.7m
Present Capital Value
pan paCifiC hOteLs GrOup LiMited
PARKROyAL serviced suites singapore
90 serviced suites and
1 owner-occupied apartment
completed 1979
Tenure of Land 99-Year Lease from 1968
Approximate net
Lettable Area (sqm) 6,125 & 165 respectively
s$70.0m
Present Capital Value
Hotels Owned and managed by The Group
PARKROyAL on Beach Road
A 7-storey hotel building with 343 rooms at
7500C Beach Road, Singapore
s$122.0m
Present Capital Value
PARKROyAL on Kitchener Road
Comprising a 5-storey podium with a basement
and a 16-storey Y-shaped tower with 534 rooms,
at 181 Kitchener Road, Singapore
s$210.0m
Present Capital Value
completed 1971 & 1979
Tenure of Land 99-Year Lease from 1968
Approximate Gross
Floor Area (sqm) 19,900
car Park Facilities 41
completed 1976 & 1981
Purchased 1989
Tenure of Land Freehold
Approximate Gross
Floor Area (sqm) 37,811
car Park Facilities 273
PARKROyAL Kuala Lumpur and President House
Comprising a 23-storey tower with a 6-storey podium and an annexed 8-storey car park building,
the 426-room hotel occupies the tower and part of the podium at Jalan Sultan Ismail, Kuala Lumpur,
Malaysia
Hotel and President House
completed 1974
Purchased 1999
Tenure of Land Freehold
Approximate Gross
Floor Area (sqm) 56,707
s$99.1m
Present Capital Value
car Park Annex
Tenure of Land Leasehold, expiring in 2080
Approximate Gross
Floor Area (sqm) 11,128
car Park Facilities 320
PARKROyAL Penang Resort
A 309-room 8-storey beachfront resort hotel at
Batu Ferringhi Beach, Penang, Malaysia
s$60.0m
Present Capital Value
PARKROyAL yangon
An 8-storey V-shaped tower comprising 267
rooms at the corner of Alan Pya Phaya Road and
Yaw Min Gyi Road, Yangon, Union of Myanmar
s$13.0m
Present Capital Value
PARKROyAL saigon
Comprising 193 rooms in a 10-storey hotel
building with a 9- storey extension wing, and a
4-storey annex office building at Nguyen Van
Troi Street, Ho Chi Minh City, Vietnam
s$36.3m
Present Capital Value
Pan Pacific suzhou
A hotel built in the Ming Dynasty style, with 481
rooms accommodated within a low-rise cluster
at Xinshi Road, Suzhou, Jiangsu, The People’s
Republic of China
s$84.5m
Present Capital Value
PARKROyAL darling Harbour, sydney
A 13-level hotel with 345 rooms at 150 Day
Street, Sydney, Australia
s$104.6m
Present Capital Value
completed 1990
Purchased 1999
Tenure of Land Freehold
Approximate Gross
Floor Area (sqm) 31,502
car Park Facilities 147
completed 1997
Purchased 2001
Tenure of Land 30-Year Lease from 1997
Approximate Gross
Floor Area (sqm) 17,700
car Park Facilities 140
completed 1997
Tenure of Land 49-Year Lease from 1994
Approximate Gross
Floor Area (sqm) 12,165
car Park Facilities 25
completed 1998
Purchased 2001
Tenure of Land 50-Year Lease from 1994
Approximate Gross
Floor Area (sqm) 63,232
car Park Facilities 100
completed 1991
Purchased 1993
Tenure of Land Freehold
Approximate Gross
Floor Area (sqm) 24,126
car Park Facilities 53
39
ANNUAL REPORT 2010

A BRAND
40 new era
Hotels Owned and managed by The Group
PARKROyAL Parramatta
A 13-level hotel with 196 rooms at 30 Phillip
Street, Parramatta, New South Wales, Australia
s$39.2m
Present Capital Value
Pan Pacific Perth
Comprising 486 rooms in a 23-storey hotel tower
and a 4-level extension wing, at the corner of
Adelaide Terrace and Hill Street, Perth, Australia
s$196.1m
Present Capital Value
pan paCifiC hOteLs GrOup LiMited
completed 1986
Purchased 1994
Tenure of Land Freehold
Approximate Gross
Floor Area (sqm) 16,694
car Park Facilities 176
completed 1973
Purchased 1995
Tenure of Land Freehold
Approximate Gross
Floor Area (sqm) 31,513
car Park Facilities 220
Hotel Owned by the Group and managed by Third Parties
sofitel Plaza Hanoi
A 20-storey hotel with 309 rooms and 36
serviced apartments at Thanh Nien Road, Hanoi,
Vietnam
s$93.5m
Present Capital Value
Properties Under construction
Upper Pickering street
A development comprising a 363-room hotel
and approximately 7,300 square metres of
office space
Beach Road
Redevelopment of existing Furniture Mall
located at The Plaza into a 184-unit serviced
suites and approximately 1,900 square metres
constructed into a column-free ballroom and
meeting rooms
completed 1998
Purchased 2001
Tenure of Land 48-Year Lease from 1993
Approximate Gross
Floor Area (sqm) 39,250
car Park Facilities 40
Expected
completion Mid-2012
Tenure of Land 99-Year Lease from 2008
site Area (sqm) 6,959
Gross Floor
Area (sqm) 29,812
Expected
completion 4Q 2012
Tenure of Land 99-Year Lease from 1968
Gross Floor
Area (sqm) 17,844
Properties Owned by Third Parties and
managed by The Group
PROPERTy AddREss
sinGAPORE
Pan Pacific Singapore
Pan Pacific Orchard
Pan Pacific Serviced Suites Singapore
mALAysiA
Pan Pacific Kuala Lumpur
International Airport
PARKROYAL Serviced Suites
Kuala Lumpur
(Opened in October 2010)
THAiLAnd
Pan Pacific Serviced Suites Bangkok
(Opened in March 2010)
indOnEsiA
Sari Pan Pacific Jakarta
Pan Pacific Nirwana Bali Resort
(Opened in April 2010)
7 Raffles Boulevard, Marina Square,
Singapore 039595
10 Claymore Road, Singapore 229540
96 Somerset Road, Singapore 238163
Jalan CTA 4B, 64000 KLIA, Sepang
Selangor Darul Ehsan, Malaysia
No. 1, Jalan Nagasari, Off Jalan Raja
Chulan, Kuala Lumpur 50200, Malaysia
88/333 Sukhumvit Soi 55, North
Klongton, Wattana District, Bangkok
10110, Thailand
Jalan M.H.Thamrin 6, P.O. Box 3138,
Jakarta 10340, Indonesia
Jalan Raya Tanah Lot, P.O. Box 158
Tabanan 82171, Bali- Indonesia
THE PHiLiPPinEs
Pan Pacific Manila M. Adriatico Cor. Gen Malvar Streets,
Malate, Manila City 1004, Philippines
BAnGLAdEsH
Pan Pacific Sonargaon Dhaka 107 Kazi Nazrul Islam Avenue. G.P.O. Box
3595, Dhaka 1215, Bangladesh
cHinA
Pan Pacific Xiamen 19 Hubin Bei Road, Xiamen 361012,
Fujian, China
nORTH AmERicA
Pan Pacific Seattle, USA
2125 Terry Ave, Seattle. WA 98121, USA
Pan Pacific Vancouver, Canada
Suite 300 - 999 Canada Place,
Vancouver, BC, V6C 3B5, Canada
Pan Pacific Whistler Mountainside, Canada 4320 Sundial Crescent, Whistler, BC,
V0N 1B4, Canada
Pan Pacific Whistler Village Centre, Canada 4299 Blackcomb Way, Whistler,
BC, V0N 1B4, Canada
41
nO. OF
ROOms
778
205
126
441
287
148
400
278
236
277
387
160
504
121
83
ANNUAL REPORT 2010

A BRAND
42 new era
sOUTHEAsT
AsiA
Tourism Landscape
The 13% recovery in visitor arrivals by the Asia
region was the fastest and strongest compared
to other regions around the world. Southeast
Asia saw strong growth of 12% with 69.6 million
international visitors in 2010. Industry occupancy
for Southeast Asia grew by 5 percentage points
to 66% while average room rate (ARR) increased
by 15% to US$125 and revenue per available
room (RevPAR) increased by 24% to US$82.
Visitor arrivals to Singapore was at 11.6 million,
an increase of 2.0 million or 20% against
2009. Overall hotel occupancy increased by 10
percentage points and ARR increased by 12%.
Overall, RevPAR increased by 26% versus 2009.
Malaysia saw a total of 24.6 million visitors or a
4% increase in visitor arrivals compared to 2009,
above the Ministry of Tourism’s target of 24.0
million visitor arrivals in 2010. Hotel occupancy
in Malaysia increased by 4 percentage points
with Kuala Lumpur and Penang enjoying 4 and 5
percentage points increase respectively. ARR grew
by 6% in Malaysia with Kuala Lumpur increasing by
4% and Penang improving by 9% over 2009.
The total number of international arrivals to
Vietnam in 2010 was at 5.0 million, up by 34%
over the 3.8 million arrivals achieved in 2009
and above the original goal of 4.2 million.
International visitor arrivals to Hanoi and Ho Chi
Minh increased by 20% and 19% respectively.
Vietnam hotel occupancy improved by 10
percentage points although ARR remained flat
against 2009. Ho Chi Minh experienced a similar
trend with occupancy growth of 11 percentage
points while ARR declined by 5%.
pan paCifiC hOteLs GrOup LiMited
Other countries in the region also enjoyed good
visitor growth with Myanmar increasing 28%
year on year, Indonesia seeing 11% growth to 7.0
million, Philippines, 3.5 million or 17% increase,
and Thailand, 15.8 million or 12% increase.
Indonesia hotel occupancy grew by 4 percentage
points with Jakarta occupancy growing by 5
percentage points and Bali by 4 percentage
points. However, ARR was flat against 2009.
Hotel occupancy in Philippines grew by 5
percentage points with marginal ARR increase of
2%. Bangladesh saw good occupancy increase by
12 percentage points and ARR increasing by 6%.
Overall RevPAR increased by 27% over 2009.
Bangkok, Thailand was the only city which
ended the year with occupancy decline (by 3%
to 53%) and a flat RevPAR in 2010.
Group Performance
The Group has operations in eight countries in
the region including cities such as Bali, Bangkok,
Dhaka, Hanoi, Ho Chi Minh, Jakarta, Kuala Lumpur,
Manila, Penang, Singapore and Yangon.
Revenue improved by 22% to $426 million during
the year, driven by improvements in RevPAR.
Occupancy grew by 4 percentage points to 73%
and ARR improved by 5%.
Myanmar and Bangladesh had the best
improvement in performance with RevPAR
improving by more than 40% compared against
2009. Singapore hotels and serviced suites
also saw strong growth with average RevPAR
increases of 28%, in line with the hotels’ overall
RevPAR growth of 26%.
Other properties in Jakarta and Manila saw
marginal improvements in RevPAR. Despite ARR
continuing to fall below 2009 levels, Vietnam
100%
90%
80%
70%
60%
50%
40%
30%
0%
sinGAPORE
PARKROyAL sERVicEd
sUiTEs sinGAPORE
Functionality meets
contemporary style in 90 newly
upgraded apartments. Further
to the renovations of 40 units
in 2009, the remaining 50 units
were completed in February
2010. The refurbished suites
offer a spacious living area
with panoramic views of the
sea or city skyline, a stylish
home away from home just
minutes away from the Central
Business District.
AVERAGE
OccUPAncy: +20%
points
AVERAGE
ROOm RATE:
REVEnUE PER
AVAiLABLE
ROOm:
OccUPAncy REVPAR (s$)
REVEnUE (s$’m)
+21%
+56%
150 250
140 220
130 190
120 160
110 130
100 100
90 70
80 40
0 0
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Owned and ManaGed
Owned and ManaGed BY third partY
ManaGed
* All figures are compared year on year over 2009.
Owned and ManaGed
Owned and ManaGed BY third partY
ManaGed
PARKROyAL On
BEAcH ROAd
This 343-room hotel offers
spacious accommodations
in an ethnic enclave fringed
by bustling shopping, dining,
business and convention
facilities, conveniently located
w i t h i n t h e c i t y ’s ce n t ra l
business district.
AVERAGE
OccUPAncy:
AVERAGE
ROOm RATE:
REVEnUE PER
AVAiLABLE
ROOm:
+13%
points
+10%
+29%
43
hotels still managed good RevPAR growth of
9%. Kuala Lumpur hotels also saw good RevPAR
growth of 12% while Penang RevPAR declined
by 3% with the re-opening of a fully renovated
competitor hotel.
Owned and ManaGed
Owned and ManaGed BY third partY
ManaGed
PARKROyAL On
KiTcHEnER ROAd
Exuding stylish comfort, this
elegant 534-room hotel at
Little India is situated in a
neighbourhood brimming with
colours, culture and vibrancy.
AVERAGE
OccUPAncy:
AVERAGE
ROOm RATE:
REVEnUE PER
AVAiLABLE
ROOm:
+10%
points
+22%
+38%
ANNUAL REPORT 2010

A BRAND
44 new era
sOUTHEAsT AsiA
mALAysiA
PARKROyAL
KUALA LUmPUR
Discover an authentic mix of
tradition and modernity at this
426-room hotel in the heart of
Kuala Lumpur’s trendy Golden
Triangle, the capital’s main
commercial and retail district.
AVERAGE
OccUPAncy:
AVERAGE
ROOm RATE:
REVEnUE PER
AVAiLABLE
ROOm:
remained flat
against 2009
+17%
+17%
ViETnAm
PARKROyAL sAiGOn
This 193-room hotel, offers easy
access to Ho Chi Minh City,
and is minutes from the Tan
Son Nhat International Airport
and Exhibition and Convention
Centre. Renovation for the
hotel will be carried out in 2011,
including refurbishments to the
guestrooms, expansion of the
event spaces and enhancements
to guest facilities.
AVERAGE
OccUPAncy: +10%
points
AVERAGE
ROOm RATE:
REVEnUE PER
AVAiLABLE
ROOm:
* All figures are compared year on year over 2009.
pan paCifiC hOteLs GrOup LiMited
PARKROyAL
PEnAnG REsORT
An idyllic 309-room resort
hotel overlooking lush greenery
and the Batu Ferringhi beach.
Occupancy and room rates were
marginally affected by the reopening
of a competitor hotel
previously under renovation.
AVERAGE
OccUPAncy:
AVERAGE
ROOm RATE:
REVEnUE PER
AVAiLABLE
ROOm:
-3%
points
+1%
-3%
sOFiTEL PLAzA HAnOi
Pan Pacific Hotels Group holds
a 75% interest in this luxurious
hotel. It features 309 well-
appointed rooms showcasing
scenic views of the West Lake
and Red River in Hanoi, and
convenient access to the city.
myAnmAR
PARKROyAL
yAnGOn
Old-world charm and stately
elegance feature at this 267room
property surrounded by
Yangon’s cultural landmarks
in the heart of the city. Pan
Pacific Hotels Group holds a
95% interest in the hotel.
AVERAGE
OccUPAncy:
AVERAGE
ROOm RATE:
REVEnUE PER
AVAiLABLE
ROOm:
+12%
points
+17%
+41%
sOFiTEL sAiGOn PLAzA
And cEnTRAL PLAzA
With 287 rooms and 11 spacious
suites, this hotel in which Pan
Pacific Hotels Group has a
26% interest, is enlivened by
breathtaking city views and
a historic address on LeDuan
Boulevard, the main commercial
and diplomatic precinct. As part
of its repositioning to the new
Sofitel brand standard, the hotel
renovated 18 club guestrooms
and 10 suites and will be
refurbishing its bar in 2011.
AVERAGE
OccUPAncy: +11%
points
AVERAGE
OccUPAncy: +9%
points
AVERAGE
ROOm RATE: -4%
AVERAGE
ROOm RATE: -12%
-2%
+14%
REVEnUE PER
AVAiLABLE +13%
REVEnUE PER
AVAiLABLE +2%
ROOm:
ROOm:
PEOPLE’s
REPUBLic
OF cHinA
75%
70%
65%
60%
55%
50%
45%
40%
0%
Tourism Landscape
Arrivals into China in 2010 increased by 6% compared to the same
period in 2009. Overall China’s hotel occupancy improved by 14
percentage points with ARR increasing by 13%. In the East China
region which includes Fujian and Jiangsu, occupancy and ARR
also improved but at a lower rate of 7 percentage points and 4%
respectively.
Group Performance
During the year, occupancy decreased by 3 percentage points
while ARR declined by average of 9%. The weak performance in
both occupancy and ARR was due to increased competition.
REVEnUE PER
AVAiLABLE
ROOm:
45
PAn PAciFic sUzHOU
This 481-room hotel is set in
magnificent Suzhou gardens
and intricate landscapes, fusing
traditional architecture with
modern luxuries.
AVERAGE
OccUPAncy: -9%
points
AVERAGE
ROOm RATE:
OccUPAncy REVPAR (s$)
REVEnUE (s$’m)
160
140
120
100
80
60
40
20
0
40
35
30
25
20
15
10
5
0
-9%
-25%
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Owned and ManaGed
Owned and ManaGed BY third partY
ManaGed
Owned and ManaGed
Owned and ManaGed BY third partY
ManaGed
* All figures are compared year on year over 2009.
Owned and ManaGed
Owned and ManaGed BY third partY
ManaGed
ANNUAL REPORT 2010

A BRAND
46 new era
AUsTRALiA
Tourism Landscape
The Oceania region saw international tourist
arrivals increase by 6% to 11.6 million in 2010.
In Australia, visitor arrivals hit a record high
of 5.9 million, 5% above the same period
in 2009. This was above Australia’s 2010
forecast of 5.5 million visitor arrivals.
Industry occupancy for Australia saw
growth by 2 percentage points to 64%
while ARR improved by 2% to A$139 and
RevPAR grew by 5% to A$89. Sydney saw
strong growth with occupancy increase
by 5 percentage points, ARR increased
by 4% to A$176 and RevPAR grew by 11%
to A$151. Perth CBD occupancy grew by 3
percentage points versus 2009 while ARR
increased by 1% and RevPAR by 5%.
Group Performance
The three hotels saw a 6% increase in
revenue to $104 million during 2010. This
was the result of a 4 percentage points
increase in occupancy and 4% increase
in ARR. The increase in occupancy was in
spite of the renovations carried out in the
Parramatta hotel during the year.
The two Sydney hotels were rebranded and
managed under the “PARKROYAL” brand
from November 2010. The Perth hotel was
rebranded and managed under the “Pan
Pacific” brand from January 2011.
pan paCifiC hOteLs GrOup LiMited
100%
95%
90%
85%
80%
75%
70%
65%
0%
OccUPAncy REVPAR (s$)
REVEnUE (s$’m)
220
210
200
190
180
170
160
150
0
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Owned and ManaGed BY third partY Owned and ManaGed BY third partY Owned and ManaGed BY third partY
PARKROyAL dARLinG
HARBOUR, sydnEy
(FORMERLY CROWNE PLAZA
DARLING HARBOUR)
T h i s s c e n i c 3 4 5 - r o o m
accommodation, surrounded
by Sydney’s famous attractions
and located near the
waterfront, is the ideal base
for shopping, sightseeing and
sheer relaxation. In 2010, Pan
Pacific Hotels Group bought
over the remaining 40% stake
from minority shareholders and
now wholly owns the hotel,
rebranded to the “PARKROYAL”
brand on 1 November 2010.
REVEnUE PER
AVAiLABLE
ROOm:
+5%
+9%
PARKROyAL PARRAmATTA
(FORMERLY CROWNE
PLAZA PARRAMATTA)
This 196-room hotel is situated
on Phillip Street, in Parramatta’s
fashionable business and
shopping district. In 2010, Pan
Pacific Hotels Group bought
over the remaining 40% stake
from minority shareholders and
now wholly owns the hotel,
rebranded to the “PARKROYAL”
brand on 1 November 2010.
Renovation of all 196 guestrooms
was completed in August 2010
and further refurbishments for
the public areas, restaurants
and bars will continue in the first
quarter of 2011. The reduction
in occupancy was mainly due
to the renovations of rooms
carried out during the year.
AVERAGE
AVERAGE
OccUPAncy: +4% -1%
points
REVEnUE PER
AVAiLABLE
ROOm:
+5%
120
110
100
90
80
70
60
50
0
47
PAn PAciFic PERTH
(FORMERLY SHERATON
PERTH HOTEL)
This 486-room hotel is flanked
by scenic vistas of the Swan
River and its surrounding
parks. The Group commenced
renovations of the ballrooms in
August 2010 to be completed
by early 2011. The hotel was
rebranded to the “Pan Pacific”
brand on 6 January 2011.
OccUPAncy:
AVERAGE
OccUPAncy: +6%
points
points
AVERAGE
AVERAGE
AVERAGE
ROOm RATE: ROOm RATE: +6% ROOm RATE: +2%
* All figures are compared year on year over 2009.
REVEnUE PER
AVAiLABLE
ROOm:
+11%
ANNUAL REPORT 2010

A BRAND
48 new era
nORTH
AmERicA
Tourism Landscape
International visitors to North America
increased by 8% to 99.2 million in 2010.
The United States (“US”) saw visitor
arrivals increase by 11% to 60.9 million
while Canada registered a marginal
increase of 2% against 2009.
Industry occupancy for US increased
3 percentage points to 58% while
ARR was flat at US$98 and RevPAR
was up 6% to US$56. Canadian hotel
occupancy increased by 2 percentage
points to 61%. ARR increased by 2%
to C$129 while RevPAR was at C$78,
a 5% improvement over the same
period in 2009.
Group Performance
Performance of the hotels improved
in line with the market trend.
Managed revenue increased by 10%
to $88 million during 2010 boosted
by a 13% improvement in RevPAR.
The increase in RevPAR comprised
of a 3 percentage points increase in
occupancy and 7% increase in ARR.
80%
75%
70%
65%
60%
55%
50%
45%
0%
OccUPAncy REVPAR (s$)
REVEnUE (s$’m)
pan paCifiC hOteLs GrOup LiMited
300
280
260
240
220
200
180
160
0
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
ManaGed ManaGed ManaGed
200
180
160
140
120
100
80
60
0
A FEATHER in OUR cAP
FOR A BRAnd nEW ERA
OUR
AWARds
2010
WORLd TRAVEL
AWARds 2010
• World’s Leading
Business Hotel
Pan Pacific Singapore
• Asia’s Leading
Business Hotel
Pan Pacific Singapore
• canada’s Leading Hotel
Pan Pacific Vancouver
• canada’s Leading
Business Hotel
Pan Pacific Vancouver
• indonesia’s Leading
Golf Resort
Pan Pacific Nirwana
Bali Resort
• singapore’s Leading
serviced Apartments
Pan Pacific Serviced
Suites Singapore
cOndé nAsT TRAVELER
REAdERs’ cHOicE
AWARds 2010
• Top Hotels (canada)
Pan Pacific Vancouver
• Top Resorts (canada)
Pan Pacific Whistler
Village Centre
Awards and global recognition are testaments to the brand
experience and distinctive service standards that separate us
from our competition. We are motivated by our accolades,
and inspired to create many more memorable hotel
experiences so that you, our valued guests, have compelling
reasons to return to us, year after year.
TRiPAdVisOR’s
TRAVELERs’ cHOicE
AWARds 2010
• Top 25 Hotels in
United states
Pan Pacific Seattle
• Top 25 Hotels in china
Pan Pacific Xiamen
GOLdEn PiLLOW
AWARds 2010
• china’s Top 10 most
Popular Resort Hotels
Pan Pacific Suzhou
TRAVEL+LEisURE
cHinA’s cHinA
TRAVEL AWARds 2010
• china’s Top 100 Hotels
Pan Pacific Suzhou
TRAVEL & LEisURE’s
AnnUAL TRAVEL
AWARds 2010
• Top 25 Best Business
Hotels in Greater china
Pan Pacific Xiamen
BcA cOnsTRUcTiOn
ExcELLEncE
AWARds 2010
• commercial/mixed
development Buildings
category
Pan Pacific Serviced
Suites Singapore
FiABci PRix
d’ExcELLEncE
AWARds 2010
• Hotel category
Pan Pacific Suzhou
49
AsEAn GREEn HOTEL
AWARd 2010-2011
• sari Pan Pacific Jakarta
AssOciATiOn OF ROOms
diVisiOn ExEcUTiVEs
(sinGAPORE)
AWARds 2010
• Best Front Office
department
(superior Hotel)
PARKROYAL on
Beach Road
THE AsiA PAciFic
BRAnds FOUndATiOn
(APBF) BRAndLAUREATE
AWARd 2009/2010
• Best Brand in
Airport Hotels
Pan Pacific Kuala Lumpur
International Airport
WORLd LUxURy HOTEL
AWARds 2010
• Luxury Airport Hotel
category
Pan Pacific Kuala Lumpur
International Airport
ANNUAL REPORT 2010

A BRAND
50 new era
OUR PiPELinE
PROJEcTs
PARKROyAL
mELBOURnE AiRPORT
Featuring 276 guest rooms complete with
dining, meeting, business and fitness facilities,
this is the only airport hotel in Australia with
direct connectivity to the terminal building. Its
location at one of Australia’s busiest airports
offers superb visibility for brand building.
OPEninG On 1 APRiL 2011
PAn PAciFic
ninGBO
This 430-room luxury hotel is part of a mixeduse
development and located at the gateway
to Ningbo’s upcoming industrial and economic
zone. It is also the focal point of a commercial
and up-market residential district evolving in
the area.
pan paCifiC hOteLs GrOup LiMited
Committed to steady expansion, pan
pacific hotels Group continues to
extend its presence in Greater China,
asia and Oceania.
PAn PAciFic sERVicEd
sUiTEs ninGBO
Providing a contemporary home away from home
is this 200-room property situated in the mixeduse
development housing Pan Pacific Ningbo.
An ideal base for extended-stay travellers,
it is located next to Ningbo’s International
Conference and Exhibition Centre.
OPEninG in 2012 OPEninG in 2012
PARKROyAL
On PicKERinG
Redefining conventions with its
‘hotel-in-a-garden’ concept is this
363-room property showcasing
sustainable features in elegant and
contemporary settings. Located at
the crossroad of Singapore’s central
business district and Chinatown, it is
close to the waterfront entertainment
along Singapore River.
OPEninG in 2012
THE PLAzA
BEAcH ROAd ExTEnsiOn
The Plaza Beach Road Extension features 184
serviced suites, with a column-free ballroom
and function rooms for meetings and events,
in a vibrant enclave bordering downtown
Singapore. Piling and redevelopment works,
which commenced in 2010, are expected to
be completed by end-2012.
OPEninG in 2012
PAn PAciFic
TiAnJin
Commanding panoramic views
of Haihe River is this 334room
hotel strategically sited
in the bustling harbour city
of Tianjin. Home to luxurious
accommodations and part of
a mixed-use development, it
offers convenient access to
the central business district
and airport.
OPEninG in 2013
51
PARKROyAL
sERVicEd sUiTEs
GREEn ciTy,
sHAnGHAi
Marking “PARKROYAL’s”
debut in China is this 325room
property located in a
prestigious district catering
to Shanghai’s burgeoning
expatriate community. Its
exclusive amenities include
an indoor swimming pool and
private clubhouse, while a
three-story annex houses a
café and restaurant.
OPEninG in 2012
PARKROyAL TAiHU REsORT, sUzHOU
This elegant 200-room hotel is located at Taihu, one of Suzhou’s
most popular resort destinations. Overlooking the beautiful Taihu
Lake, it features authentic restaurants, spacious ballrooms, lush
garden landscapes and a stunning lakeside spa among other
well-appointed amenities.
OPEninG in 2014
ANNUAL REPORT 2010

A BRAND
52 new era
HUmAn
cAPiTAL
And
dEVELOPmEnT
pan pacific hotels Group
believes that human Capital and
development plays a crucial role
when it comes to driving the
company forward.
Guided by a purpose for Great
Brands, Great hotels, Great people
and Great relationships, our
associates embraced a renewed
commitment to supporting the
Group’s expansion plans and
delivering on its brand promises.
A Great Future driven by Great People
We recognised that inculcating a passionate
confidence for the Group’s Vision and Purpose
was the cornerstone from which the “Pan
Pacific” and “PARKROYAL” brands would grow.
During the year, the Group rolled out its new
Vision, Purpose and Values across all of its hotels
and helped associates translate them into action
in day-to-day operations. This was inculcated
through a year-long Vision, Purpose and Values
programme that included creative competitions,
associate engagement programmes and even a
‘Doing Good’ month.
Constant employee engagement remained a key
priority for the Group. The improved scores from
this year’s “Our People, Voices & Views Associate
Satisfaction Survey” attest to the fact that
clarity in management direction and a sense of
ownership and work empowerment are essential
ingredients for organisational growth.
strengthening Our Talent
management strategies
Furthering our efforts to build Human Capital
capabilities in strategic functions such as Brand
Development, Operations, Strategic Planning
pan paCifiC hOteLs GrOup LiMited
and Human Capital & Development, a systematic
Talent Management Programme was instituted
to track the contributions and performance
of our talents. Through the programme, we
identified a strong pool of high potential
candidates whom we can groom for leadership
roles in the course of succession planning and
future expansion.
As part of the Talent Development process, a
robust Performance Management System was
also introduced to provide greater transparency
and objectivity in our appraisal systems, and
to foster stronger links between employee
performance, business goals and company
values. The system encouraged a greater
ownership of roles as we work hand-in-hand
with our associates to hone their strengths for
future growth.
sharing Our Best Practices
Sharing strategic insights with professionals
from the industry, our Senior Vice President
for Human Capital & Development, Mrs Melody
King, was a speaker at a panel on “Harnessing
Human Capital for Successful Regionalisation
in Asia” during the Singapore Human Capital
Summit held in September.
The Group was also invited to be a member of
the Future of Work (FOW) Consortium, to share
perspectives on talent management and HR
practices that will shape the future. Working in
tandem with academia and global professionals,
our participation will provide a voice for the
hospitality industry and help in the development
of useful benchmarks that will reveal how “future
proofed” today’s businesses are for evolving
global trends.
Encouraging meaningful Work
During the year, the Group appointed several
internal teams to spearhead a series of work
improvement measures. These have enhanced
our associates’ abilities to function efficiently
across geographies and operations. In particular,
red tape and complex processes were simplified
so that front-liners could focus on what they do
best – creating memorable hotel experiences.
With a growing family of over 7,500 global
associates and an ever-expanding property
portfolio, the sustained ability to support and
complement one another will take the Group to
new heights.
...clarity in management
direction and a sense
of ownership and work
empowerment are
essential ingredients for
organisational growth...
53
ANNUAL REPORT 2010

A BRAND
54 new era
sUsTAinABiLiTy
And cORPORATE
sOciAL
REsPOnsiBiLiTy
it’s not about duty, it’s about being
there for people at a time when they
need us most. [the flight disruptions
caused by the volcanic eruption in
iceland] gave us a real chance to
put our vision into practice, bringing
heartfelt gestures to the travellers
whom we managed to help.
sundra Kulendra
Director, Restaurants, Bars & Events
PARKROYAL Kuala Lumpur
pan paCifiC hOteLs GrOup LiMited
pan pacific hotels Group
supports numerous social
and environmental causes –
transforming lives, forging
relationships and giving
back to local communities
– with the view that
environmental, social and
governance considerations
impact on the long term
performance of a company.
Helping the Less Privileged
In Singapore, the “Pan Pacific” and
“PARKROYAL” hotels co-hosted the
Assisi Hospice Charity Fun Day 2010
at St. Joseph Institution International
School with games and food stalls.
Through combined efforts, we doubled
our contributions from last year.
At the Singapore corporate office,
the Group organised an in-house
sale of art and crafts designed by
youths from the Muscular Dystrophy
Association.
doing Good month
December was designated “Doing
Good Month”. Group-wide, our hotels
supported local charities with activities
demonstrating our respect and care
for the wider community and our
recognition and value for diversity.
Spreading yuletide cheer, associates at Pan
Pacific Serviced Suites Singapore shared
food and presents with children from a local
orphanage, while PARKROYAL on Beach Road
supported the Boys’ Brigade Share-A-Gift
project for the needy.
The Annual Christmas Wish Breakfast project
by Pan Pacific Vancouver collected over 11
tonnes of gifts and US$14,000 in cash donations
for underprivileged children. Special festive
programmes by Pan Pacific Suzhou, Pan Pacific
Serviced Suites Bangkok, Pan Pacific Kuala Lumpur
International Airport, PARKROYAL Kuala Lumpur,
PARKROYAL Saigon and PARKROYAL Penang
Resort brought Christmas cheer to children and
the elderly in their respective communities.
supporting Local communities
Volunteers from Pan Pacific Nirwana Bali Resort
extended a helping hand to neighbouring villages
through cleaning and maintenance projects. The
hotel also supported local Beraban businesses
by buying local produce and supplies, providing
employment, financial support and internships
for the local community in doing so.
Providing solace in Times of need
PARKROYAL Kuala Lumpur rose to the occasion
when UK-bound passengers were stranded
in Kuala Lumpur due to flight cancellations
caused by the eruption of Mount Eyjafallajökull
in Iceland. The hotel provided several guest
rooms to affected passengers for rest – an
initiative commended by both KLM Airlines and
the British High Commission.
55
For families devastated by the 7.0-magnitude
earthquake in Haiti, our associates at Pan Pacific
Seattle dug into their pockets for the Haitian
Earthquake Relief Fund. At PARKROYAL Saigon,
associates rallied to donate food and money to
families who lost their homes to massive storms
in Vietnam.
Going Green
In North America, Pan Pacific Whistler Village
Centre and Pan Pacific Whistler Mountainside
introduced hybrid heating power to reduce
greenhouse gas emissions; while the latter,
together with Pan Pacific Vancouver, were rated
3 and 4 Green Keys respectively in the Green
Key ECO-ratings awarded by the Canadian
Hotel Association.
Pan Pacific Seattle embarked on a PanEarth
Sustainability Programme, where eco-initiatives
are continually reviewed and improved upon by a
designated Green Team. It is also an active member
of the Seattle Climate Partnership dedicated to
sustainable strategies for the environment.
To offset its carbon footprint, Pan Pacific
Sonargaon Dhaka planted over 300 trees, which
also served to provide shade for a new parking
area.
Currently under development is PARKROYAL on
Pickering in Singapore, which features a hotelin-a-garden
concept and sustainable features
that have earned it a Green Mark Platinum
certification.
Amongst its green features are a smart water
management system, rainwater harvesting and
automatic sensors to regulate energy and water
usage. Greenery also features prominently in
the hotel’s design concept; lofty four-storey tall
skygardens, spread throughout the building’s
façade, bring lush greenery to the rooms and
internal spaces.
Enterprise-wide Risk management
We have put in place our Enterprise-wide Risk
Management Programme (“ERM Programme”)
in 2009. In 2010, we continued to cascade the
ERM Programme down to our businesses and
operations. This allows the Group to have a
system to deal with current and evolving risks in
the business and regulatory environment which
it operates in, and enables the Group to stay on
a sustainable growth path in the long term. The
details on the ERM Programme can be found
in pages 146 to 147 of the Annual Report (the
Corporate Governance Report).
ANNUAL REPORT 2010

OUR
PERFORmAncE
in THis sEcTiOn
five-Year financial summary
financial review
Group Value-added statement

A BRAND
58 new era
FiVE-yEAR
FinAnciAL sUmmARy
ConsoLiDAteD inCome stAtements ReVenUe by seGments
2006 2007 2008 2009 2010
In $’000
Revenue 287,255 290,159 315,225 287,806 324,242
Cost of sales (156,420) (149,040) (153,970) (147,347) (160,649)
Gross profits 130,835 141,119 161,255 140,459 163,593
Other miscellanous gains 2,520 1,137 1,058 1,440 1,987
Expenses
- Marketing & distribution (13,247) (12,793) (14,364) (14,343) (15,805)
- Administrative (26,717) (23,895) (28,415) (31,059) (36,482)
- Other operating (44,741) (43,893) (44,600) (45,610) (50,998)
Profit from operations 48,650 61,675 74,934 50,887 62,295
Finance income 3,036 2,708 1,999 2,505 3,368
Exchange (loss)/gain (1,040) 539 959 (621) (3,450)
Finance expense (13,273) (6,901) (1,747) (3,034) (3,124)
Share of profit of
associated companies 1,411 1,907 1,946 1,067 1,127
Profit before other gains/(losses)
and fair value adjustments 38,784 59,928 78,091 50,804 60,216
Gain on disposal of subsidiaries 86,717 – – – 156
Impairment charge on property
under construction – – (37,000) – –
Fair value gains/(losses) on
investment properties – 49,267 (9,840) (1,620) 9,979
Profit before income tax 125,501 109,195 31,251 49,184 70,351
Income tax expense (8,898) (21,187) (15,829) (9,109) (15,131)
Net profit 116,603 88,008 15,422 40,075 55,220
Attributable to:
Equity holders of the Company 114,211 84,977 12,818 39,312 53,640
Non-controlling interests 2,392 3,031 2,604 763 1,580
pan paCifiC hOteLs GrOup LiMited
116,603 88,008 15,422 40,075 55,220
Basic earnings per ordinary
shares (cents)
- before other gains/(losses) and
fair value adjustments 6.87 11.13 9.65 6.78 7.53
- after other gains/(losses) and
fair value adjustments 28.55 21.22 2.14 6.55 8.94
Gross dividend declared
- Final (cents) 5.00 5.00 4.00 3.50 4.00
- Special (cents) 35.00 – – – –
- Cover (times) 0.87 2.83 0.53 1.87 2.24
In $’000 2006 2007 2008 2009 2010
Business
Hotel ownership 273,707 277,202 296,556 260,877 288,561
Hotel management – – 4,268 13,760 17,611
Total segment sales – – 10,928 19,895 27,535
Inter-segment sales – – (6,660) (6,135) (9,924)
Property investments 12,498 11,691 13,135 13,027 17,329
Investments 1,050 1,266 1,266 142 741
Total 287,255 290,159 315,225 287,806 324,242
Hotel ownership Hotel management Property investments
Geographical
Singapore 99,676 83,848 99,980 87,432 111,104
Australia 82,047 96,643 104,025 90,316 103,531
Vietnam 31,015 37,068 41,198 32,822 33,847
Malaysia 38,366 41,352 40,176 41,887 44,943
China 30,539 25,682 22,966 22,738 17,273
Myanmar 5,612 5,566 5,986 7,829 9,664
Others – – 894 4,782 3,880
Total 287,255 290,159 315,225 287,806 324,242
Singapore Australia Vietnam Malaysia China Myanmar Other
PRofit fRom oPeRAtions by seGments
In $’000
Business
Hotel ownership 41,010 52,998 63,451 42,050 48,491
Hotel management – – 1,476 673 2,728
Property investments 6,590 7,411 8,741 8,022 10,335
Investments 1,050 1,266 1,266 142 741
Total 48,650 61,675 74,934 50,887 62,295
Hotel ownership Hotel management Property investments
Geographical
Singapore 16,793 21,718 31,643 18,815 29,824
Australia 11,214 17,342 22,465 16,829 19,725
Vietnam 8,091 12,754 16,219 10,429 11,423
Malaysia 5,755 5,990 2,249 4,866 4,665
China *
7,840 5,020 3,202 (920) (5,389)
Myanmar (1,043) (1,149) (134) 296 1,722
Others – – (710) 572 325
Total 48,650 61,675 74,934 50,887 62,295
Singapore Australia Vietnam Malaysia China Myanmar Other
* Pie chart does not show China segment losses.
Investments
Investments
5%
6%
3%
5%
4%
3%
14%
11%
18%
17%
7%
32%
2010
89%
89%
2010
32%
2010
78%
2010
34%
48%
59
0%
1%
1%
1%
ANNUAL REPORT 2010

A BRAND
60 new era
FiVE-yEAR
FinAnciAL sUmmARy
ConsoLiDAteD stAtements of finAnCiAL Position
pan paCifiC hOteLs GrOup LiMited
31.12.06 31.12.07 31.12.08 31.12.09 31.12.10
In $’000
Net assets employed
Available-for-sale financial assets 20,892 21,633 12,968 18,032 17,167
Investment in associated companies 12,897 10,566 12,506 6,954 7,394
Investment properties 118,677 165,309 155,469 155,481 165,460
Property, plant and equipment 464,757 502,644 478,171 491,716 480,544
Property under construction – – 237,059 248,122 273,778
Intangibles 14,415 14,315 28,026 27,200 30,772
Other assets – 71,096 – – –
Deferred income tax assets 8,395 4,353 2,014 3,330 2,783
Advances to holding company
Net current assets, excluding
– – – 55,662 49,630
borrowings
Non-current liabilities, excluding
40,126 195,423 6,960 49,899 22,777
borrowings (35,424) (51,265) (52,107) (53,859) (57,395)
644,735 934,074 881,066 1,002,537 992,910
Capital employed
Share capital 217,623 557,333 557,333 557,333 557,333
Reserves 47,546 31,768 (9,079) 22,278 25,715
Retained earnings 248,617 212,736 195,554 210,866 218,635
Interests of the shareholders 513,786 801,837 743,808 790,477 801,683
Non-controlling interests 24,108 27,949 23,463 29,942 –
Borrowings 106,841 104,288 113,795 182,118 191,227
Net tangible asset backing
per ordinary share ($)
644,735 934,074 881,066 1,002,537 992,910
- before accounting for surplus on
revaluation of hotel properties 1.25 1.31 1.19 1.27 1.28
- after accounting for surplus on
revaluation of hotel properties 2.14 2.17 1.98 2.05 2.20
Gearing ratio
Debt : equity ratio 0.21 0.13 0.15 0.16 0.18
FinAnciAL
REViEW
year ended 31 December
2010 2009
increase/
(Decrease)
$’000 $’000 $’000
61
%
Change
Revenue
Gross revenue from hotel ownership 288,561 260,877 27,684 11
Revenue from hotel management services 17,611 13,760 3,851 28
Revenue from property investments 17,329 13,027 4,302 33
Dividend income 741 142 599 422
Total revenue 324,242 287,806 36,436 13
Group revenue for the year ended 31 December 2010 increased by 13% or $36.4 million to $324.2 million from
$287.8 million achieved in the previous year. The increase was due to better performance in all the business
segments.
Revenue from the hotels owned by the Group increased by 11% from $260.9 million in 2009 to $288.6 million
in 2010. With the exception of the hotels in Penang and Suzhou, all the Group’s hotels registered increase in
revenue per available room (“RevPAR”).
Revenue from hotel management services for the year ended 31 December 2010 increased by $3.9 million or
28% to $17.6 million on the back of better performance from hotels under management.
Revenue from property investments of $17.3 million for the year ended 31 December 2010 was 33% higher
than the previous year due to higher rental from the commercial properties and better performance of the
Group’s serviced suites at The Plaza.
year ended 31 December
increase/
%
2010 2009 (Decrease) Change
$’000 $’000 $’000
Expenses
Cost of sales 160,649 147,347 13,302 9
The increase in cost of sales was due mainly to higher payroll cost as a result of annual increments and the
lifting of hiring freeze; higher depreciation charge arising largely from the completion of extension works and
refurbishment works at Pan Pacific Suzhou and PARKROYAL Serviced Suites Singapore respectively in 2009;
and increase in other operating costs in line with the increase in revenue.
ANNUAL REPORT 2010

A BRAND
62 new era
FinAnciAL
REViEW
pan paCifiC hOteLs GrOup LiMited
year ended 31 December
increase/
%
2010 2009 (Decrease) Change
$’000 $’000 $’000
Expenses
- Marketing and distribution 15,805 14,343 1,462 10
- Administrative 36,482 31,059 5,423 17
- Other operating 50,998 45,610 5,388 12
The increase in administrative expenses by $5.4 million or 17% from $31.1 million in 2009 to $36.5 million in
2010 was in line with higher revenue and higher payroll costs as a result of annual increments and the lifting
of hiring freeze.
Other operating expenses increased by 12% or $5.4 million from $45.6 million in 2009 to $51.0 million in 2010
due mainly to increases in property tax; repairs and maintenance expenses; heat, light and power; write-off of
property, plant and equipment; and rebranding expenses for the Suzhou and Australian hotels.
year ended 31 December
2010 2009
increase/
(Decrease)
%
Change
$’000 $’000 $’000
Finance expenses
Interest expenses, net of capitalisation 3,124 3,034 90 3
Foreign exchange loss – net 3,450 621 2,829 456
6,574 3,655 2,919 80
The exchange loss in 2010 arose mainly from the repayment of USD-denominated shareholder loans by
subsidiaries. These loans are deemed to be part of the Company’s investments in the subsidiaries and movement
in currency translation are taken to equity. These exchange differences are transferred from equity and recognised
in the Group’s income statement upon realisation, i.e. when repayments are made by the subsidiaries.
year ended 31 December
2010 2009
increase/
(Decrease)
%
Change
$’000 $’000 $’000
Fair value adjustments
Fair value gains/(losses) on investment properties 9,979 (1,620) 11,599 716
Investment properties are carried at fair values as determined by independent professional valuers. It is the
practice of the Group to revalue its investment properties on a half yearly basis on 30 June and 31 December.
In 2010, the Group recognised a fair value gain of $10.0 million on its investment properties compared to a
fair value loss of $1.6 million in 2009.
FinAnciAL
REViEW
year ended 31 December
increase/
%
2010 2009 (Decrease) Change
$’000 $’000 $’000
Income tax expenses
Tax expense on profit for the financial year 16,985 10,904 6,081 56
Effect of changes in tax rate – (2,160) 2,160 100
(Over)/under provision in preceding financial years (1,854) 365 (2,219) (608)
15,131 9,109 6,022 66
Effective tax rate (1) 24% 22% 2% 9
In line with higher profits, the Group’s tax charge for the year ended 31 December 2010 increased from $9.1
million in 2009 to $15.1 million in 2010. Included in the tax charge was a write-back of overprovision of income
tax of $1.9 million (2009: write-back of deferred tax amounting to $2.2 million due to change in tax rate). The
effective tax rate is higher than the Singapore statutory rate of 17% due mainly to certain overseas profits being
subject to statutory rates higher than the Singapore statutory rate and disallowable expenses.
(1) Based on tax expense on profit for the financial year over profit before income tax
As at 31 December
increase/
%
2010 2009 (Decrease) Change
$’000 $’000 $’000
Borrowings and capital management
Gross borrowings 192,294 183,796 8,498 5
Less: Advances to holding company (49,630) (55,662) 6,032 11
Net borrowings 142,664 128,134 14,530 11
Debt : equity ratio (based on net borrowings) 18% 16% 2% 10
Average interest rate on borrowings 2.50% 2.69% -0.19% (7)
Maturity of borrowings
Within one year 70,833 6,087 64,746 nm
One to two years 119,348 80,994 38,354 47
Two to five years 2,113 96,715 (94,602) (98)
nm: not meaningful
192,294 183,796 8,498 5
The bank borrowings are secured by mortgages on the borrowing subsidiaries’ hotel properties or property
under development and/or assignment of all rights and benefits with respect to the properties.
The debt-equity ratio after taking into account capital commitments for the Upper Pickering development, Beach
Road extension and the purchase of Melbourne Airport Hotel will increase from the current 18% to 59%.
63
ANNUAL REPORT 2010

A BRAND
64 new era
GROUP VALUE-AddEd
sTATEmEnT
2010 2009
In $’000
Sale of goods and services 323,501 287,664
Purchases of materials and services (120,626) (111,834)
Gross value added 202,875 175,830
Share of profit of associated companies 1,127 1,067
Income from investments, interest and others 6,096 4,087
Gain on liquidation of a subsidiary 156 –
Fair value gains/(losses) on investment properties 9,979 (1,620)
Exchange loss (3,450) (621)
Total value added 216,783 178,743
Distribution of value added :
To employees and directors -
Employees’ salaries, wages and benefits 100,271 86,413
Directors’ remuneration 2,779 2,425
103,050 88,838
To government -
Corporate and property taxes 21,797 14,465
To providers of capital -
Interest paid 3,124 3,034
Net dividend to shareholders 21,000 24,000
Net dividend attributable to non-controlling interests 11,272 398
35,396 27,432
Total value-added distributed 160,243 130,735
Retained in the business:
Depreciation 33,592 32,331
Retained earnings 19,784 13,294
Non-controlling interests (9,692) 365
43,684 45,990
Non-production cost and income
Bad debts 75 172
Income from investments, interest and others 6,096 4,087
Gain on liquidation of a subsidiary 156 –
Fair value gains/(losses) on investment properties 9,979 (1,620)
Exchange loss (3,450) (621)
12,856 2,018
pan paCifiC hOteLs GrOup LiMited
216,783 178,743
Productivity ratios : $ $
Value added per employee 54,042 49,895
Value added per $ employment costs 1.97 1.98
Value added per $ investment in fixed assets (before depreciation)
- at cost 0.26 0.21
- at valuation 0.22 0.18
Value added per $ net sales 0.63 0.61

Financial
calendar
Financial
contents
66 Report of the Directors
69 Statement by Directors
70 Independent
Auditor’s Report
71 Income Statements
72 Statements of
Comprehensive Income
73 Statements of
Financial Position
74 Consolidated Statement
of Changes in Equity
75 Statement of Changes
in Equity
76 Consolidated Statement
of Cash Flows
77 Notes to the
Financial Statements
141 Corporate
Governance Report
152 Interested Person
Transactions
153 Shareholding Statistics
154 Share Price and Turnover
155 Notice of Annual
General Meeting
Proxy Form
2010 2009
Announcement of first-quarter results 12.05.10 12.05.09
Announcement of second-quarter results 06.08.10 12.08.09
Announcement of third-quarter results 10.11.10 13.11.09
Announcement of unaudited full-year results 22.02.11 23.02.10
Annual General Meeting 19.04.11 21.04.10
Books closure dates 04.05.11 to 05.05.11 03.05.10 to 04.05.10
First and final dividend payment date 18.05.11 13.05.10
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report oF the directors
For the financial year ended 31 december 2010
The directors have pleasure in submitting this report to the members together with the audited financial statements
of the Company and of the Group for the financial year ended 31 December 2010.
Directors
The directors of the Company in office at the date of this report are as follows:
Wee Cho Yaw - Chairman
Gwee Lian Kheng - Group Chief Executive
Alan Choe Fook Cheong
Lim Kee Ming
Wee Ee Chao
Low Weng Keong
Wee Wei Ling
James Koh Cher Siang
Wee Ee Lim
Amedeo Patrick Imbardelli
ArrAngements to enAble Directors to Acquire shAres AnD Debentures
Neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose
object was to enable the directors of the Company to acquire benefits by means of the acquisition of shares in, or
debentures of, the Company or any other body corporate.
Directors’ interests in shAres or Debentures
(a) The directors holding office at 31 December 2010 are also the directors holding office at the date of this report. Their
interests in the share capital of and options to subscribe for ordinary shares of the Company and related corporations,
as recorded in the register of directors’ shareholdings, were as follows:
PAN PACIFIC HOTELS GROUP LIMITED
holdings registered
in name of director
At
At
31.12.2010 1.1.2010
holdings in which a
director is deemed to
have an interest
At
31.12.2010
At
1.1.2010
Pan Pacific Hotels Group Limited (“PPHG”)
– Ordinary Shares
Wee Cho Yaw – – 489,440,652* 489,440,652*
Gwee Lian Kheng 171,000 171,000 315,000 315,000
Lim Kee Ming 15,000 15,000 – –
Wee Ee Chao – – 892,500 892,500
Wee Wei Ling 27,000 27,000 67,500 67,500
Immediate holding company –
UOL Group Limited (“UOL”)
– Ordinary Shares
Wee Cho Yaw 3,388,151* 3,388,151* 228,818,442* 228,818,442*
Gwee Lian Kheng 388,000 388,000 – –
Lim Kee Ming 348,477 348,477 532,277 532,277
Wee Ee Chao 30,748* 30,748* 82,820,597* 82,820,597*
Wee Wei Ling 941,493* 941,493* 30,603* 30,603*
James Koh Cher Siang 385 385 – –
Wee Ee Lim 241,489 241,489 80,553,452* 80,553,452*
– Executives’ Share Options
Gwee Lian Kheng 580,000 680,000 – –
Wee Wei Ling 126,000 126,000 – –
Amedeo Patrick Imbardelli 34,000 – – –
* Includes shares registered in the name of nominees.
report oF the directors
For the financial year ended 31 december 2010
Directors’ interests in shAres or Debentures (continueD)
(b) The directors’ interests in the share capital of and options to subscribe for ordinary shares of the Company
and related corporations, as recorded in the register of directors’ shareholdings at 21 January 2011, were the
same as those at 31 December 2010.
(c) Save as disclosed above, none of the other directors holding office at 31 December 2010 has any interest
in the ordinary shares of the Company, the ordinary shares and Executives’ Share Options of UOL and the
ordinary shares of any other related corporations of the Company, as recorded in the register of directors’
shareholdings.
Directors’ contrActuAl benefits
Since the end of the previous financial year, no director has received or become entitled to receive a benefit by
reason of a contract made by the Company or a related corporation with the director or with a firm of which he is a
member or with a company in which he has a substantial financial interest, except as disclosed in the accompanying
financial statements and in this report, and except that Mr Gwee Lian Kheng has an employment relationship with
the holding company and has received remuneration in that capacity.
shAre options
There were no options granted in respect of unissued ordinary shares of the Company or any subsidiary during the
financial year.
No shares have been issued during the financial year by virtue of the exercise of options to take up unissued ordinary
shares of the Company or any subsidiary.
There were no unissued ordinary shares of the Company or any subsidiary under option at the end of the
financial year.
AuDit committee
The Audit Committee comprises three members, all of whom are independent and non-executive Directors. The
Audit Committee members are:
Lim Kee Ming - Chairman
Alan Choe Fook Cheong
Low Weng Keong
The Audit Committee carries out the functions set out in the Companies Act (Cap. 50). The terms of reference include
reviewing the financial statements, the internal and external audit plans and audit reports, the scope and results of the
internal audit procedures and proposals for improvements in internal controls, the independent auditor’s report on
the weaknesses of internal accounting controls arising from the statutory audit, the cost effectiveness, independence
and objectivity of the independent auditor and interested persons transactions.
In performing the functions, the Audit Committee has met with the internal and independent auditors and reviewed
the overall scope of the internal and external audits and the assistance given by Management to the auditors.
The Audit Committee has nominated PricewaterhouseCoopers LLP for re-appointment as independent auditor of
the Company at the forthcoming Annual General Meeting.
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report oF the directors
For the financial year ended 31 december 2010
inDepenDent AuDitor
The independent auditor, PricewaterhouseCoopers LLP, has expressed its willingness to accept re-appointment.
On behalf of the directors
Wee cho YAW
Chairman
22 February 2011
PAN PACIFIC HOTELS GROUP LIMITED
gWee liAn Kheng
Director
statement by directors
For the financial year ended 31 december 2010
In the opinion of the directors,
(a) the income statements, statements of comprehensive income, statements of financial position and statements
of changes in equity of the Company and of the Group and the consolidated statement of cash flows of the
Group as set out on pages 71 to 140 are drawn up so as to give a true and fair view of the state of affairs of the
Company and of the Group as at 31 December 2010, of the results of the business and the changes in equity
of the Company and of the Group for the financial year then ended; and the cash flows of the Group for the
financial year then ended; and
(b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay
its debts as and when they fall due.
On behalf of the directors
Wee cho YAW
Chairman
22 February 2011
gWee liAn Kheng
Director
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independent auditor’s report
To the Members of Pan Pacific Hotels Group Limited
report on the finAnciAl stAtements
We have audited the accompanying financial statements of Pan Pacific Hotels Group Limited (the “Company”)
and its subsidiaries (the “Group”) set out on pages 71 to 140, which comprise the consolidated statement of
financial position of the Group and the statement of financial position of the Company as at 31 December 2010, the
consolidated income statement of the Group, the income statement of the Company, the consolidated statement
of comprehensive income of the Group, the statement of comprehensive income of the Company, the consolidated
statement of changes in equity of the Group and the statement of changes in equity of the Company and the
consolidated statement of cash flows of the Group for the financial year then ended, and a summary of significant
accounting policies and other explanatory information.
mAnAgement’s responsibilitY for the finAnciAl stAtements
Management is responsible for the preparation and fair presentation of financial statements that give a true and
fair view in accordance with the provisions of the Singapore Companies Act (the “Act”) and Singapore Financial
Reporting Standards and for devising and maintaining a system of internal accounting controls sufficient to provide a
reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition, that transactions
are properly authorised and that they are recorded as necessary to permit the preparation of true and fair profit and
loss accounts and balance sheets and to maintain accountability of assets.
AuDitor’s responsibilitY
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with Singapore Standards on Auditing. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal controls relevant to the entity’s preparation of financial statements that give a true
and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
opinion
In our opinion, the consolidated income statement of the Group, the income statement of the Company, the
consolidated statement of comprehensive income of the Group, the statement of comprehensive income of the
Company, the consolidated statement of changes in equity of the Group and the statement of changes in equity of
the Company, the consolidated statement of financial position of the Group and the statement of financial position
of the Company and the consolidated statement of cash flows of the Group are properly drawn up in accordance
with the provisions of the Act and Singapore Financial Reporting Standards so as to give a true and fair view of the
state of affairs of the Company and of the Group as at 31 December 2010, and the results, changes in equity of the
Company and of the Group, and cash flows of the Group for the financial year ended on that date.
Report on Other Legal and Regulatory Requirements
In our opinion, the accounting and other records required by the Act to be kept by the Company and by those
subsidiaries incorporated in Singapore of which we are the auditors, have been properly kept in accordance with
the provisions of the Act.
PricewaterhouseCoopers LLP
Public Accountants and Certified Public Accountants
Singapore, 22 February 2011
PAN PACIFIC HOTELS GROUP LIMITED
income statements
For the financial year ended 31 december 2010
note
2010
$’000
the group the company
2009
$’000
2010
$’000
71
2009
$’000
Revenue 4 324,242 287,806 66,347 57,602
Cost of sales (160,649) (147,347) (20,692) (19,672)
Gross profit 163,593 140,459 45,655 37,930
Other income
– Finance income 4 3,368 2,505 3,501 4,786
– Miscellaneous income 4 1,987 1,440 619 542
Expenses
– Marketing and distribution (15,805) (14,343) (1,423) (1,063)
– Administrative (36,482) (31,059) (7,815) (6,936)
– Finance 8 (6,574) (3,655) (2,688) (1,227)
– Other operating (50,998) (45,610) (7,096) (5,960)
Share of profits of associated companies 16 1,127 1,067 – –
60,216 50,804 30,753 28,072
Other gains – net 7 156 – 4,108 –
Fair value gains/(losses) on investment
properties 18 9,979 (1,620) 9,979 (1,620)
Profit before income tax 70,351 49,184 44,840 26,452
Income tax expense 9 (15,131) (9,109) (2,586) (505)
Net profit 55,220 40,075 42,254 25,947
Attributable to:
Equity holders of the Company 53,640 39,312 42,254 25,947
Non-controlling interests 1,580 763 – –
55,220 40,075 42,254 25,947
Earnings per share attributable to equity
holders of the Company (expressed in cents
per share)
– Basic and diluted 10 8.94 6.55
The accompanying notes form an integral part of these financial statements.
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statements oF comprehensive income
For the financial year ended 31 december 2010
PAN PACIFIC HOTELS GROUP LIMITED
note
2010
$’000
the group the company
2009
$’000
2010
$’000
2009
$’000
Net profit 55,220 40,075 42,254 25,947
Other comprehensive (loss)/income:
Fair value (losses)/gains on available for sale
financial assets 15 (865) 5,064 (865) 5,064
Cash-flow hedges
– Fair value losses 30(d) (436) (296) – –
– Transfer to income statement 30(d) 421 194 – –
Currency translation differences arising from
consolidation 30(c) 5,262 32,347 – –
Change in tax rate 28 – 162 – 165
Other comprehensive income/(loss),
net of tax 4,382 37,471 (865) 5,229
Total comprehensive income 59,602 77,546 41,389 31,176
Attributable to:
Equity holders of the Company 57,077 70,669 41,389 31,176
Non-controlling interests 2,525 6,877 – –
59,602 77,546 41,389 31,176
The accompanying notes form an integral part of these financial statements.
statements oF Financial position
As at 31 december 2010
note
2010
$’000
the group the company
2009
$’000
2010
$’000
73
2009
$’000
ASSETS
Current assets
Cash and bank balances 11 57,904 93,117 2,089 9,632
Trade and other receivables 12 24,619 19,991 16,263 36,505
Advances to holding company 25 49,630 55,662 49,630 55,662
Inventories 13 1,531 2,580 103 280
Other assets 14 17,153 3,332 237 221
150,837 174,682 68,322 102,300
Non-current assets
Trade and other receivables 12 – – 149,154 257,102
Available-for-sale financial assets 15 17,167 18,032 17,167 18,032
Investment in associated companies 16 7,394 6,954 9,820 9,820
Investment in subsidiaries 17 – – 369,666 201,819
Investment properties 18 165,460 155,481 165,460 155,481
Property, plant and equipment 19 480,544 491,716 43,786 41,484
Property under construction 20 273,778 248,122 – –
Intangibles 21 30,772 27,200 589 204
Deferred income tax assets 28 2,783 3,330 – –
977,898 950,835 755,642 683,942
Total assets 1,128,735 1,125,517 823,964 786,242
LIABILITIES
Current liabilities
Trade and other payables 22 61,933 54,273 9,230 9,255
Derivative financial instruments 24 457 – – –
Current income tax liabilities 9(b) 16,040 14,848 4,308 6,553
Borrowings 23 70,663 6,087 – –
Loans from a subsidiary 26 – – – 4,653
149,093 75,208 13,538 20,461
Non-current liabilities
Trade and other payables 22 5,125 2,882 2,928 2,715
Derivative financial instruments 24 – 439 – –
Borrowings 23 120,564 176,031 28,609 –
Loans from subsidiaries 26 – – 100,857 106,663
Provision for retirement benefits 27 2,539 2,316 – –
Deferred income tax liabilities 28 49,731 48,222 31,812 30,572
177,959 229,890 164,206 139,950
Total liabilities 327,052 305,098 177,744 160,411
NET ASSETS 801,683 820,419 646,220 625,831
EQUITY
Capital and reserves attributable to equity
holders of the Company
Share capital 29 557,333 557,333 557,333 557,333
Reserves 30 25,715 22,278 31,181 32,046
Retained earnings 218,635 210,866 57,706 36,452
801,683 790,477 646,220 625,831
Non-controlling interests – 29,942 – –
Total equity 801,683 820,419 646,220 625,831
The accompanying notes form an integral part of these financial statements.
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consolidated statement
oF changes in equity
For the financial year ended 31 december 2010
PAN PACIFIC HOTELS GROUP LIMITED
Attributable to
equity holders of the company
share
retained
non–
controlling total
capital reserves earnings total interests equity
note $’000 $’000 $’000 $’000 $’000 $’000
2010
Beginning of
financial year 557,333 22,278 210,866 790,477 29,942 820,419
Dividends relating
to 2009 31 – – (21,000) (21,000) (11,271) (32,271)
Purchase of shares in
subsidiaries from
non-controlling
interests – – (24,871) (24,871) (21,196) (46,067)
Total comprehensive
income for the year – 3,437 53,640 57,077 2,525 59,602
End of financial year 557,333 25,715 218,635 801,683 – 801,683
2009
Beginning of
financial year 557,333 (9,079) 195,554 743,808 23,463 767,271
Dividends relating
to 2008 31 – – (24,000) (24,000) (398) (24,398)
Total comprehensive
income for the year – 31,357 39,312 70,669 6,877 77,546
End of financial year 557,333 22,278 210,866 790,477 29,942 820,419
An analysis of movements in each category within “Reserves” is presented in Note 30.
The accompanying notes form an integral part of these financial statements.
statement oF changes in equity
For the financial year ended 31 december 2010
share
retained total
capital reserves earnings equity
note $’000 $’000 $’000 $’000
2010
Beginning of financial year 557,333 32,046 36,452 625,831
Dividends relating to 2009 31 – – (21,000) (21,000)
Total comprehensive (loss)/income for the year – (865) 42,254 41,389
End of financial year 557,333 31,181 57,706 646,220
2009
Beginning of financial year 557,333 26,817 34,505 618,655
Dividends relating to 2008 31 – – (24,000) (24,000)
Total comprehensive income for the year – 5,229 25,947 31,176
End of financial year 557,333 32,046 36,452 625,831
An analysis of movements in each category within “Reserves” is presented in Note 30.
The accompanying notes form an integral part of these financial statements.
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consolidated statement oF cash Flows
For the financial year ended 31 december 2010
PAN PACIFIC HOTELS GROUP LIMITED
note
2010
$’000
2009
$’000
Cash flows from operating activities
Net profit 55,220 40,075
Adjustments for:
– Income tax expense 15,131 9,109
– Depreciation and amortisation 33,592 32,331
– Property, plant and equipment written off and net loss on disposals 1,992 1,166
– Fair value (gain)/loss on investment properties (9,979) 1,620
– Interest income (3,368) (2,505)
– Dividend income (741) (142)
– Interest expense 3,124 3,034
– Net provision for retirement benefits 343 290
– Share of profit of associated companies (1,127) (1,067)
– Unrealised translation gain 3,406 2,298
– Gain on liquidation of investment in a subsidiary (156) –
Operating cash flow before working capital changes 97,437 86,209
Change in operating assets and liabilities, net of effects from acquisition of
subsidiaries
– Inventories 1,049 259
– Receivables (18,583) 989
– Payables 10,009 1,158
Cash generated from operations 89,912 88,615
Income tax paid – net (12,739) (13,979)
Retirement benefits paid (179) (61)
Net cash from operating activities 76,994 74,575
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired 11(c) – 69
Repayment of loans from an associated company – 4,155
Advances to holding company 5,025 (55,555)
Payment for intangible assets (4,474) –
Net proceeds from disposal of property, plant and equipment 139 178
Purchase of investment property and property, plant and equipment (21,398) (21,314)
Expenditure on property under construction (23,505) (8,802)
Interest received 4,375 2,398
Dividend received 873 2,246
Net cash used in investing activities (38,965) (76,625)
Cash flows from financing activities
Proceeds from borrowings 30,522 114,173
Repayment of borrowings (22,253) (44,495)
Expenditure on long term borrowings (239) (1,680)
Interest paid (4,376) (4,733)
Dividends paid to shareholders of the Company (21,000) (24,000)
Dividends paid to non-controlling interests of subsidiaries (11,272) (398)
Purchase of shares in subsidiaries from non-controlling interests (46,067) –
Net cash (used in)/from financing activities (74,685) 38,867
Net (decrease)/increase in cash and cash equivalents (36,656) 36,817
Cash and cash equivalents at the beginning of the financial year 93,117 48,948
Effects of currency translation on cash and cash equivalents 1,434 7,352
Cash and cash equivalents at the end of the financial year 11(a) 57,895 93,117
The accompanying notes form an integral part of these financial statements.
notes to the Financial statements
For the financial year ended 31 december 2010
These notes form an integral part of and should be read in conjunction with the accompanying financial statements.
1. generAl informAtion
Pan Pacific Hotels Group Limited (the “Company”) is incorporated and domiciled in Singapore and its shares
are publicly traded on the Singapore Exchange. The address of its registered office is 101 Thomson Road,
#33-00, United Square, Singapore 307591. The principal place of business of the Company is 238A Thomson
Road, #08-00, Novena Square Office Tower A, Singapore 307684.
The principal activities of the Company are those of an hotelier, property owner and the holding of investments.
The principal activities of its subsidiaries are set out in Note 17.
2. significAnt Accounting policies
2.1 Basis of preparation
These financial statements have been prepared in accordance with Singapore Financial Reporting Standards
(“FRS”). The financial statements have been prepared under the historical cost convention, except as disclosed
in the accounting policies below.
The preparation of financial statements in conformity with FRS requires management to exercise its judgement
in the process of applying the Group’s accounting policies. It also requires the use of certain critical accounting
estimates and assumptions. The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial statements, are disclosed in Note 3.
Interpretations and amendments to published standards effective in 2010
On 1 January 2010, the Group adopted the new or amended FRS that are mandatory for application from
that date. Changes to the Group’s accounting policies have been made as required, in accordance with the
transitional provisions in the respective FRS.
The adoption of these new or amended FRS did not result in substantial changes to the Group’s and Company’s
accounting policies and had no material effect on the amounts reported for the current or prior financial years,
except for the following:
(a) FRS 103 (revised) Business Combinations (effective for annual periods beginning on or after 1 July 2009)
Please refer to note 2.3(a)(ii) for the revised accounting policy on business combinations which the Group
has adopted.
As the changes have been implemented prospectively, no adjustments were necessary to any of the
amounts previously recognised in the financial statements. These changes do not have any material
impact on the financial statements for the current financial year.
(b) FRS 27 (revised) Consolidated and Separate Financial Statements (effective for annual periods beginning
on or after 1 July 2009)
The revisions to FRS 27 principally change the accounting for transactions with non-controlling interests.
Please refer to Notes 2.3(a)(iii) for the revised accounting policy on changes in ownership interest that
results in a lost of control and 2.3(b) for that on changes in ownership interests that do not result in lost
of control.
As the changes have been implemented prospectively, no adjustments were necessary to any of the
amounts previously recognised in the financial statements.
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notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.1 Basis of preparation (continued)
(b) FRS 27 (revised) Consolidated and Separate Financial Statements (effective for annual periods beginning
on or after 1 July 2009) (continued)
In the current financial year, the Group purchased the remaining 40% interest in a subsidiary, Success
Venture Investments (Australia) Ltd and 5% interest in a subsidiary, Success City Pty Limited from noncontrolling
interests. The revised accounting policy was applied to account for these transactions. The
difference between the change in the carrying amounts of the non-controlling interests and the fair
value of the considerations paid, relating to the purchase of interest in Success City Pty Limited was not
significant, while that relating to the purchase of interest in Success Venture Investments (Australia) Ltd,
amounting to $24,871,000 was recognised in retained profits. Previously, such difference would have
been recognised as intangible assets – goodwill.
(c) Amendment to FRS 28 Investments in Associates (effective for annual periods beginning on or after
1 July 2009)
On partial disposal of an associated company associated with the loss of significant influence, the
amendment requires the retained investment in associated companies to be measured at fair value. The
difference between the carrying amount of the retained investment and its fair value is recognised in the
income statement.
As the changes have been implemented prospectively, no adjustments were necessary to any of the
amounts previously recognised in the financial statements. These changes do not have any material
impact on the financial statements for the current financial year.
(d) Amendment to FRS 38 Intangible Assets (effective for annual periods beginning on or after 1 July 2009)
Under the amendment, it includes specific references to the more commonly used methods of valuing
intangible assets: market comparisons using multiples, discounted cash flow (including the relief from
royalty method) and the replacement cost approach. This change has been applied prospectively. It
had no material effect on the financial statements for the current or prior year
2.2 Revenue recognition
Revenue for the Group comprises the fair value of the consideration received or receivable for the sale of
goods and rendering of services in the ordinary course of the Group’s activities. Revenue is presented, net of
goods and services tax, rebates and discounts, and after eliminating sales within the Group.
The Group recognises revenue when the amount of revenue and related cost can be reliably measured, it is
probable that the collectability of the related receivables is reasonably assured and when the specific criteria for
each of the Group’s activities are met as follows:
(a) Revenue from hotel ownership and operation
Revenue from the ownership and operation of hotels is recognised at the point at which the
accommodation and related services are provided.
PAN PACIFIC HOTELS GROUP LIMITED
notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.2 Revenue recognition (continued)
(b) Revenue from hotel management services
Revenue from hotel management services includes property and project management fees, hotel
management fees, franchise fees and other hotel management related fees.
(i) Management fees
Management fees earned from hotels managed by the Group, usually under long-term contracts
with the hotel owner, are recognised when services are rendered under the terms of the contract.
The fees include a base fee, which is generally a percentage of hotel revenue, and/or an incentive
fee, which is generally based on the hotel’s profitability.
(ii) Franchise fees
Franchise fees received in connection with licensing of the Group’s brand names, usually under
long-term contracts with the hotel owner, are recognised when services are rendered under the
terms of the agreement. The Group generally charges franchise fees as a percentage of hotel
revenue.
(iii) Other hotel management related fees
Other related fees earned from hotels managed by the Group are recognised when services are
rendered under the terms of the contract.
(c) Revenue from property investments - rental income
Rental income from operating leases (net of any incentives given to the lessees) on investment properties
is recognised on a straight-line basis over the lease term.
(d) Dividend income
Dividend income is recognised when the right to receive payment is established.
(e) Interest income
2.3 Group accounting
Interest income is recognised using the effective interest method.
(a) Subsidiaries
(i) Consolidation
Subsidiaries are entities over which the Group has power to govern the financial and operating
policies, generally accompanied by a shareholding giving rise to a majority of the voting rights.
The existence and effect of potential voting rights that are currently exercisable or convertible
are considered when assessing whether the Group controls another entity.
Subsidiaries are consolidated from the date on which control is transferred to the Group. They
are de-consolidated from the date on which control ceases.
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notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.3 Group accounting (continued)
(a) Subsidiaries (continued)
(i) Consolidation (continued)
PAN PACIFIC HOTELS GROUP LIMITED
In preparing the consolidated financial statements, transactions, balances and unrealised gains
on transactions between group companies are eliminated. Unrealised losses are also eliminated
but are considered an impairment indicator of the asset transferred. Accounting policies of
subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the Group.
Non-controlling interests are that part of the net results of operations and of net assets of a
subsidiary attributable to the interests which are not owned directly or indirectly by the equity
holders of the Company. They are shown separately in the consolidated income statement,
consolidated statement of comprehensive income, consolidated statement of changes in equity
and the consolidated statement of financial position of the Group. Total comprehensive income
is attributed to the non-controlling interests based on their respective interests in a subsidiary,
even if this results in the non-controlling interests having a deficit balance.
(ii) Acquisition of businesses
The acquisition method of accounting is used to account for business combinations (including
business combinations under common control) by the Group.
The consideration transferred for the acquisition of a subsidiary comprises the fair value of the
assets transferred, the liabilities incurred and the equity interests issued by the Group. The
consideration transferred also includes the fair value of any contingent consideration arrangement
and the fair value of any pre-existing equity interest in the subsidiary.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business
combination are, with limited exceptions, measured initially at their fair values at the acquisition
date.
On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in
the acquiree at the date of acquisition either at fair value or at the non-controlling interest’s
proportionate share of the acquiree’s net identifiable assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the
acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over
the fair value of the net identifiable assets acquired is recorded as goodwill. Please refer to the
paragraph “Intangible assets - Goodwill” for the subsequent accounting policy on goodwill.
(iii) Disposals of subsidiaries or businesses
When a change in the Company’s ownership interest in a subsidiary results in a loss of control
over the subsidiary, the assets and liabilities of the subsidiary including any goodwill are
derecognised. Amounts recognised in other comprehensive income in respect of that entity are
also reclassified to the income statement or transferred directly to retained earnings if required
by a specific Standard.
Any retained interest in the entity is remeasured at fair value. The difference between the carrying
amount of the retained investment at the date when control is lost and its fair value is recognised
in the income statement.
notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.3 Group accounting (continued)
(a) Subsidiaries (continued)
(iii) Disposals of subsidiaries or businesses (continued)
Please refer to the paragraph “Investments in subsidiaries and associated companies” for
the accounting policy on investments in subsidiaries in the separate financial statements of
the Company.
(b) Transactions with non-controlling interests
Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control
over the subsidiary are accounted for as transactions with equity owners of the Group. Any difference
between the change in the carrying amounts of the non-controlling interest and the fair value of the
consideration paid or received is recognised in retained profits.
(c) Associated companies
Associated companies are entities over which the Group has significant influence, but not control, and
generally accompanied by a shareholding giving rise to between and including 20% and 50% of the
voting rights. Investments in associated companies are accounted for in the consolidated financial
statements using the equity method of accounting less impairment losses.
Investments in associated companies are initially recognised at cost. The cost of an acquisition is
measured at the fair value of the assets given, equity instruments issued or liabilities incurred or assumed
at the date of exchange, plus costs directly attributable to the acquisition. Goodwill on associated
companies represents the excess to the cost of acquisition of the associate over the Group’s share of
the fair value of the identifiable net assets of the associate and is included in the carrying amount of
the investments.
In applying the equity method of accounting, the Group’s share of its associated companies’ postacquisition
profits or losses is recognised in the income statement and its share of post-acquisition
movements in reserves is recognised in equity directly. These post-acquisition movements and dividends
are adjusted against the carrying amount of the investment. When the Group’s share of losses in an
associated company equals or exceeds its interest in the associated company, including any other
unsecured non-current receivables, the Group does not recognise further losses, unless it has obligations
or has made payments on behalf of the associated company.
Unrealised gains on transactions between the Group and its associated companies are eliminated to
the extent of the Group’s interest in the associated companies. Unrealised losses are also eliminated
unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies
of associated companies have been changed where necessary to ensure consistency with the accounting
policies adopted by the Group.
Gains and losses arising from partial disposals or dilutions in investments in associated companies are
recognised in the income statement.
Investments in associated companies are derecognised when the Group loses significant influence. Any
retained interest in the entity is remeasured at its fair value. The difference between the carrying amount
of the retained investment at the date when significant influence is lost and its fair value is recognised
in the income statement.
Please refer to the paragraph “Investments in subsidiaries and associated companies” for the accounting
policy on investments in associated companies in the separate financial statements of the Company.
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notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.4 Property, plant and equipment
(a) Measurement
(i) Land and buildings
PAN PACIFIC HOTELS GROUP LIMITED
Land and buildings are initially recognised at cost. Certain leasehold land and buildings
comprising hotel properties were subsequently revalued in 1985, in accordance with a valuation
by an independent professional firm of valuers on their existing use basis. The valuation was done
in 1985. However, a decision was then made that future valuations of hotel properties would not
be recognised in the financial statements.
Freehold land is subsequently carried at cost less accumulated impairment losses. Leasehold
land and buildings are subsequently carried at cost or valuation less accumulated depreciation
and accumulated impairment losses.
(ii) Property under construction
Property under construction is carried at cost less accumulated impairment losses until
construction is completed at which time depreciation will commence over its estimated useful
life.
(iii) Other property, plant and equipment
Plant, equipment, furniture and fittings and motor vehicles are initially recognised at cost and
subsequently carried at cost less accumulated depreciation and accumulated impairment
losses.
(iv) Components of costs
(b) Depreciation
The cost of an item of property, plant and equipment initially recognised includes its purchase
price and any cost that is directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by management, including
borrowing costs incurred for the properties under development. The projected cost of
dismantlement, removal or restoration is also recognised as part of the cost of property, plant
and equipment if the obligation for the dismantlement, removal or restoration is incurred as a
consequence of either acquiring the asset or using the asset for purpose other than to produce
inventories.
Freehold land, property under construction and renovation in progress are not depreciated. Leasehold
land is amortised evenly over the term of the lease. (Please refer to Note 19(d) for the lease period of
each property.)
Depreciation on other items of property, plant and equipment is calculated using the straight-line
method to allocate their depreciable amounts over their estimated useful lives as follows:
Useful lives
Buildings 50 years or period of the lease,
whichever is shorter
Plant, equipment, furniture and fittings 3 to 20 years
Motor vehicles 7 years
The residual values, estimated useful lives and depreciation method of property, plant and equipment
are reviewed, and adjusted as appropriate, at the end of each reporting period. The effects of any
revision are recognised in the income statement when the changes arise.
notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.4 Property, plant and equipment (continued)
(c) Subsequent expenditure
Subsequent expenditure relating to property, plant and equipment that has already been recognised
is added to the carrying amount of the asset only when it is probable that future economic benefits
associated with the item will flow to the Group and the cost of the item can be measured reliably. All
other repair and maintenance expenses are recognised in the income statement when incurred.
(d) Disposal
2.5 Intangibles
On disposal of an item of property, plant and equipment, the difference between the disposal proceeds
and its carrying amount is recognised in the income statement. Any amount in revaluation reserve
relating to that asset is transferred to retained earnings directly.
(a) Goodwill on acquisitions
Goodwill on acquisitions of subsidiaries on or after 1 January 2010 represents the excess of the
consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisitiondate
fair value of any previous equity interest in the acquiree over the fair value of the net identifiable
assets acquired.
If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired and
the measurement of all amounts has been reviewed, the difference (“negative goodwill”) is recognised
directly in the income statement as a bargain purchase.
Goodwill on acquisitions of subsidiaries prior to 1 January 2010 and on acquisition of associated
companies represents the excess of the cost of an acquisition over the fair value of the Group’s share
of the identifiable assets, liabilities and contingent liabilities of the acquired subsidiaries and associated
companies at the date of acquisition.
Goodwill on subsidiaries is recognised separately as intangible assets and carried at cost less
accumulated impairment losses. Goodwill on associated companies is included in the carrying amount
of the investments.
Gains and losses on the disposal of the subsidiaries and associated companies include the carrying
amount of goodwill relating to the entity sold.
(b) Trademark
Acquired trademarks are initially recognised at cost and are subsequently carried at cost less accumulated
amortisation and accumulated impairment losses. These costs are amortised to the income statement
using the straight-line method over their estimated useful lives of 10 to 20 years.
The amortisation period and amortisation method of intangible assets other than goodwill are reviewed
at least at the end of each reporting period. The effects of any revision are recognised in the income
statement when the changes arise.
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notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.5 Intangibles (continued)
(c) Acquired computer software costs
Acquired computer software costs are initially capitalised at cost which includes the purchase price
(net of any discounts and rebates) and other directly attributable cost of preparing the asset for its
intended use. Direct expenditure includes employee costs, which enhances or extends the performance
of computer software beyond its specifications and which can be reliably measured, is added to the
original cost of the software. Costs associated with maintaining the computer software are recognised
as an expense when incurred.
Computer software is subsequently carried at cost less accumulated amortisation and accumulated
impairment losses. Computer software that is under development is not amortised. These costs are
amortised to profit or loss using the straight-line method over their estimated useful lives of three to
five years.
(d) Contract acquisition costs
2.6 Borrowing costs
Directly attributable costs incurred in the securing of management contracts or franchise agreements
are capitalised as intangibles. These costs do not represent a physical asset which the Group has legal
title to. They represent costs incurred to obtain a legal contractual right.
The directly attributable costs are amortised to the income statement using the straight-line method
over the number of years of the management contract or franchise agreement they relate to. They are
also reviewed for impairment when events or changes in circumstances indicate that the carrying value
may not be recoverable.
Borrowing costs are recognised in the income statement using the effective interest method except for those
costs that are directly attributable to the construction or development of properties. This includes those costs
on borrowings acquired specifically for the construction or development of properties, as well as those in
relation to general borrowings used to finance the construction or development of properties.
The actual borrowing costs incurred during the period up to the issuance of the temporary occupation permit
less any investment income on temporary investments of these borrowings are capitalised in the cost of the
property under construction. Borrowing costs on general borrowings are capitalised by applying a capitalisation
rate to construction or development expenditures that are financed by general borrowings.
2.7 Investment properties
Investment properties include those land and buildings or portions of buildings that are held for long-term
rental yields and/or for capital appreciation and land under operating leases that are held for long-term capital
appreciation or for a currently indeterminate use.
Investment properties are initially recognised at cost and subsequently carried at fair value, determined semiannually
by independent professional valuers on the highest-and-best-use basis. Changes in fair values are
recognised in the income statement.
Investment properties are subject to renovations or improvements at regular intervals. The cost of major
renovations and improvements is capitalised and the carrying amounts of the replaced components are
recognised in the income statement. The cost of maintenance, repairs and minor improvements is charged
to the income statement when incurred.
On disposal of an investment property, the difference between the disposal proceeds and the carrying amount
is recognised in the income statement.
PAN PACIFIC HOTELS GROUP LIMITED
notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.8 Investments in subsidiaries and associated companies
Investments in subsidiaries and associated companies are carried at cost less accumulated impairment losses
in the Company’s statement of financial position. On disposal of investments in subsidiaries and associated
companies, the difference between disposal proceeds and the carrying amounts of the investments are
recognised in the income statement.
2.9 Impairment of non-financial assets
(a) Goodwill
Goodwill is tested for impairment annually, and whenever there is indication that the goodwill may
be impaired.
For the purpose of impairment testing of goodwill, goodwill is allocated to each of the Group’s cashgenerating
units (“CGU”) expected to benefit from synergies arising from the business combination.
An impairment loss is recognised when the carrying amount of a CGU, including the goodwill, exceeds
the recoverable amount of the CGU. The recoverable amount of a CGU is the higher of the CGU’s fair
value less cost to sell and value-in-use.
The total impairment loss of a CGU is allocated first to reduce the carrying amount of goodwill allocated
to the CGU and then to the other assets of the CGU pro-rata on the basis of the carrying amount of
each asset in the CGU.
An impairment loss on goodwill is recognised in the income statement and is not reversed in a
subsequent period.
(b) Intangibles
Property, plant and equipment
Investments in subsidiaries and associated companies
Intangibles, property, plant and equipment and investments in subsidiaries and associated companies
are tested for impairment whenever there is any objective evidence or indication that these assets may
be impaired.
For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less
cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not
generate cash flows that are largely independent of those from other assets. If this is the case, the
recoverable amount is determined for the CGU to which the asset belongs.
If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between
the carrying amount and recoverable amount is recognised as an impairment loss in the income
statement.
An impairment loss for an asset other than goodwill is reversed if, and only if, there has been a
change in the estimates used to determine the assets’ recoverable amount since the last impairment
loss was recognised. The carrying amount of an asset other than goodwill is increased to its revised
recoverable amount, provided that this amount does not exceed the carrying amount that would have
been determined (net of any accumulated amortisation or depreciation) had no impairment loss been
recognised for the asset in prior years.
A reversal of impairment loss for an asset other than goodwill is recognised in the income statement.
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notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.10 Financial assets
(a) Classification
The Group classifies its financial assets in the following categories: loans and receivables and availablefor-sale.
The classification depends on the nature of the asset and the purpose for which the assets were
acquired. Management determines the classification of its financial assets at initial recognition.
(i) Loans and receivables
PAN PACIFIC HOTELS GROUP LIMITED
Loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. They are presented as current assets, except for those
maturing later than twelve months after the end of the reporting period which are presented as
non-current assets. Loans and receivables are presented as “trade and other receivables” and
“cash and bank balances”, “advances to holding company” and deposits within “other assets”
on the statement of financial position.
(ii) Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category
or not classified in any of the other categories. They are presented as non-current assets unless
management intends to dispose of the assets within twelve months after the end of the reporting
period.
(b) Recognition and derecognition
Purchases and sales of financial assets are recognised on trade-date – the date on which the Group
commits to purchase or sell the asset.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have
expired or have been transferred and the Group has transferred substantially all risks and rewards of
ownership.
On disposal of a financial asset, the difference between the carrying amount and the sale proceeds
is recognised in the income statement. Any amount in the fair value reserve relating to that asset is
transferred to the income statement.
(c) Measurement
Financial assets are initially recognised at fair value plus transaction costs.
Available-for-sale financial assets are subsequently carried at fair value. Loans and receivables are
subsequently carried at amortised cost using the effective interest method.
Dividend income on available-for-sale financial assets is recognised separately in the income statement.
Changes in fair values of available-for-sale equity securities (i.e. non-monetary items) are recognised in
other comprehensive income.
notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.10 Financial assets (continued)
(d) Impairment
The Group assesses at the end of each reporting period whether there is objective evidence that a
financial asset or a group of financial assets is impaired and recognises an allowance for impairment
when such evidence exists.
(i) Loans and receivables
Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy,
and default or significant delay in payments are objective evidence that these financial assets
are impaired.
The carrying amount of these assets is reduced through the use of an impairment allowance
account which is calculated as the difference between the carrying amount and the present
value of estimated future cash flows, discounted at the original effective interest rate. When
the asset becomes uncollectible, it is written off against the allowance account. Subsequent
recoveries of amounts previously written off are recognised against the same line item in the
income statement.
The allowance for impairment loss account is reduced through the income statement in a
subsequent period when the amount of impairment loss decreases and the related decrease can
be objectively measured. The carrying amount of the asset previously impaired is increased to
the extent that the new carrying amount does not exceed the amortised cost had no impairment
been recognised in prior periods.
(ii) Available-for-sale financial assets
2.11 Financial guarantees
In addition to the objective evidence of impairment described in Note 2.10(d)(i), a significant
or prolonged decline in the fair value of an equity security below its cost is considered as an
indicator that the available-for-sale financial asset is impaired.
If any evidence of impairment exists, the cumulative loss that was recognised in other
comprehensive income is reclassified to the income statement. The cumulative loss is measured
as the difference between the acquisition cost (net of any principal repayments and amortisation)
and the current fair value, less any impairment loss previously recognised as an expense. The
impairment losses recognised as an expense on equity securities are not reversed through the
income statement.
The Company has issued corporate guarantees to banks for borrowings of its subsidiaries and associated
companies. These guarantees are financial guarantees as they require the Company to reimburse the banks if
the subsidiaries or associated companies fail to make principal or interest payments when due in accordance
with the terms of their borrowings.
Financial guarantees are initially recognised at their fair values plus transaction costs in the Company’s
statement of financial position except when the fair value is determined to be insignificant.
Financial guarantees are subsequently amortised to the income statement over the period of the subsidiaries’
or associated companies’ borrowings, unless it is probable that the Company will reimburse the bank for an
amount higher than the unamortised amount. In this case, the financial guarantees shall be carried at the
expected amount payable to the bank in the Company’s statement of financial position.
Intra-group transactions are eliminated on consolidation.
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notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.12 Borrowings
Borrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement
for at least twelve months after the end of the reporting period.
Borrowings are initially recognised at fair value (net of transaction costs) and subsequently carried at amortised
cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised
in the income statement over the period of the borrowings using the effective interest method.
2.13 Trade and other payables
Trade and other payables are initially recognised at fair value, and subsequently carried at amortised cost
using the effective interest method.
2.14 Derivative financial instruments and hedging activities
A derivative financial instrument is initially recognised at its fair value on the date the contract is entered into
and is subsequently carried at its fair value. The method of recognising the resulting gain or loss depends
on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being
hedged.
The Group documents at the inception of the transaction the relationship between the hedging instruments
and hedged items, as well as its risk management objective and strategies for undertaking various hedge
transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis,
of whether the derivatives designated as hedging instruments are highly effective in offsetting changes in fair
value or cash flows of the hedged items.
The Group has designated its derivative financial instrument as a cash flow hedge. Fair value changes on
derivatives that are not designated or do not qualify for hedge accounting are recognised in the income
statement when the changes arise.
Cash flow hedge - Interest rate swaps
The Group has entered into interest rate swaps that are cash flow hedges for the Group’s exposure to interest
rate risk on its borrowings. These contracts entitle the Group to receive interest at floating rates on notional
principal amounts and oblige the Group to pay interest at fixed rates on the same notional principal amounts,
thus allowing the Group to raise borrowings at floating rates and swap them into fixed rates.
The fair value changes on the effective portion of interest rate swaps designated as cash flow hedges are
recognised in other comprehensive income and transferred to the income statement when the interest expense
on the borrowings is recognised in the income statement. The fair value changes on the ineffective portion of
interest rate swaps are recognised immediately in the income statement.
The carrying amount of a derivative designated as a hedge is presented as a non-current asset or liability if
the remaining expected life of the hedged item is more than twelve months, and as a current asset or liability
if the remaining expected life of the hedged item is less than twelve months.
2.15 Fair value estimation of financial assets and liabilities
The fair values of financial instruments traded in active markets (such as exchange-traded and over-the-counter
securities and derivatives) are based on quoted market prices at the end of the reporting period. The quoted
market prices used for financial assets are the current bid prices; the appropriate quoted market prices for
financial liabilities are the current asking prices.
PAN PACIFIC HOTELS GROUP LIMITED
notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.15 Fair value estimation of financial assets and liabilities (continued)
The fair values of financial instruments that are not traded in an active market are determined by using valuation
techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions
existing at the end of each reporting period. Where appropriate, quoted market prices or dealer quotes for
similar instruments are used. Valuation techniques, such as estimated discounted cash flow analyses, are also
used to determine the fair values of the financial instruments.
The fair values of interest rate swaps are calculated as the present value of the estimated future cash flows
discounted at actively quoted interest rates.
The fair values of current financial assets and liabilities carried at amortised cost approximate their
carrying amounts.
2.16 Leases
Operating leases
(a) When the Group is the lessee:
The Group leases certain property, plant and equipment from non-related parties.
Leases of property, plant and equipment where substantially all risks and rewards incidental to ownership
are retained by the lessors are classified as operating leases. Payments made under operating leases (net
of any incentives received from the lessors) are recognised in the income statement on a straight-line basis
over the period of the lease.
(b) When the Group is the lessor:
2.17 Inventories
The Group leases out certain investment properties to non-related parties.
Leases of investment properties where the Group retains substantially all risks and rewards incidental to
ownership are classified as operating leases. Rental income from operating leases (net of any incentives
given to the lessees) is recognised in the income statement on a straight-line basis over the lease term.
Initial direct costs incurred by the Group in negotiating and arranging operating leases are added to the
carrying amount of the leased assets and recognised as an expense in the income statement over the
lease term on the same basis as the lease income.
Contingent rents are recognised as income in the income statement when earned.
Inventories are carried at the lower of cost and net realisable value. Cost is determined using the first-in,
first-out method and includes all costs in bringing the inventories to their present location and condition. Net
realisable value is the estimated selling price in the ordinary course of business, less the cost of completion
and selling expenses.
2.18 Income taxes
Current income tax for current and prior periods is recognised at the amount expected to be paid to or
recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantially
enacted by the end of the reporting period.
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notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.18 Income taxes (continued)
Deferred income tax is recognised for all temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements except when the deferred income tax arises from
the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and
affects neither accounting nor taxable profit or loss at the time of the transaction.
A deferred income tax liability is recognised on temporary differences arising on investments in subsidiaries and
associated companies, except where the Group is able to control the timing of the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future.
A deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be
available against which the deductible temporary differences and tax losses can be utilised.
Deferred income tax is measured:
(i) at the tax rates that are expected to apply when the related deferred income tax asset is realised or
the deferred income tax liability is settled, based on tax rates and tax laws that have been enacted or
substantially enacted by the end of the reporting period; and
(ii) based on the tax consequence that will follow from the manner in which the Group expects, at the end
of the reporting period, to recover or settle the carrying amounts of its assets and liabilities.
Current and deferred income taxes are recognised as income or expense in the income statement, except
to the extent that the tax arises from a business combination or a transaction which is recognised directly in
equity. Deferred tax arising from a business combination is adjusted against goodwill on acquisition.
2.19 Provisions
Provisions for legal claims, asset dismantlement, removal or restoration are recognised when the Group has a
present legal or constructive obligation as a result of past events, when it is more likely than not that an outflow
of resources will be required to settle the obligation, and when the amounts have been reliably estimated.
The Group recognises the estimated costs of dismantlement, removal or restoration of items of property, plant
and equipment arising from the acquisition or use of assets. This provision is estimated based on the best
estimate of the expenditure required to settle the obligation, taking into consideration time value.
Other provisions are measured at the present value of the expenditure expected to be required to settle the
obligation using a pre-tax discount rate that reflects the current market assessment of the time value of money
and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised
in the income statement as finance expense.
Changes in the estimated timing or amount of the expenditure or discount rate are recognised in the income
statement when the changes arise, except for changes in the estimated timing or amount of the expenditure
or discount rate for asset dismantlement, removal and restoration costs, which are adjusted against the
cost of the related property, plant and equipment unless the decrease in the liability exceeds the carrying
amount of the asset or the asset has reached the end of its useful life. In such cases, the excess of the
decrease over the carrying amount of the asset or the changes in the liability is recognised in the income
statement immediately.
PAN PACIFIC HOTELS GROUP LIMITED
notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.20 Employee benefits
(a) Post-employment benefits
The Group has various post-employment benefit schemes in accordance with local conditions and
practices in the country in which it operates. These benefit plans are either defined contribution or
defined benefit plans.
Defined contribution plan
Defined contribution plans are post-employment benefit plans under which the Group pays fixed
contributions into separate entities such as the Central Provident Fund on a mandatory, contractual or
voluntary basis. The Group has no further payment obligations once the contributions have been paid.
The Group’s contributions are recognised as employee compensation expense when they are due.
Defined benefit plan
Defined benefit plans are a post-employment benefit plans other than defined contribution plans.
Defined benefit plans typically define the amount of benefit that an employee will receive on
or after retirement, usually dependent on one or more factors such as age, years of service and
compensation.
A subsidiary in Malaysia operates an unfunded defined benefit scheme under the Collective Union
Agreement for unionised employees and certain management staff. Benefits payable on retirement
are calculated by reference to the length of service and earnings over the employees’ period of
employment; that benefit is discounted to determine the present value. The discount rate is the market
yield at the end of the reporting period on high quality corporate bonds or government bonds. Provision
for employee retirement benefits is made in the financial statements so as to provide for the accrued
liability at year end. An actuarial valuation, based on the projected credit unit method, of the fund is
conducted by a qualified independent actuary once in every three years as the directors are of the
opinion that yearly movements in provision for the defined benefit plan is not likely to be significant.
When the benefits of a plan are improved, the portion of the increased benefit relating to past service
by employees is recognised as an expense in the income statement on a straight-line basis over the
average period until the benefits become vested. To the extent that the benefits vest immediately, the
expense is recognised immediately in the income statement.
In calculating the Group’s obligation in respect of a plan, to the extent that any cumulative unrecognised
actuarial gain or loss exceeds ten percent of the present value of the defined benefit obligation, that
portion is recognised in the income statement over the expected average remaining working lives of
the employees participating in the plan. Otherwise, the actuarial gain or loss is not recognised.
Where the calculation results in a benefit to the Group, the recognised asset is limited to the net total
of any unrecognised actuarial losses and past service costs and the present value of any future refunds
from the plan or reductions in future contributions to the plan.
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notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.20 Employee benefits (continued)
(b) Share-based compensation
The holding company operates an equity-settled, share-based compensation plan and grants share
options to executives of the Group. The fair value of the employee services received in exchange for
the grant of options is recognised as an expense in the income statement. The total amount to be
recognised over the vesting period is determined by reference to the fair value of the options granted
on the date of the grant. Non-market vesting conditions are included in the estimation of the number
of shares under options that are expected to become exercisable on the vesting date. At the end of
each reporting period, the Group revises its estimates of the number of shares under options that are
expected to become exercisable on the vesting date and recognises the impact of the revision of the
estimates in the income statement.
2.21 Currency translation
(a) Functional and presentation currency
Items included in the financial statements of each entity in the Group are measured using the currency
of the primary economic environment in which the entity operates (“functional currency”). The financial
statements are presented in Singapore Dollars, which is the functional currency of the Company.
(b) Transactions and balances
Transactions in a currency other than the functional currency (“foreign currency”) are translated into
the functional currency using the exchange rates at the dates of the transactions. Currency translation
differences from the settlement of such transactions and from the translation of monetary assets and
liabilities denominated in foreign currencies at the closing rates at the end of the reporting period are
recognised in the income statement, unless they arise from borrowings in foreign currencies, other
currency instruments designated and qualifying as net investment hedges and net investment in foreign
operations. Those currency translation differences are recognised in other comprehensive income in
the consolidated financial statements and transferred to the income statement as part of the gain or
loss on disposal of the foreign operation.
Non-monetary items measured at fair values in foreign currencies are translated using the exchange
rates at the date when the fair values are determined.
(c) Translation of Group entities’ financial statements
The results and financial position of all the Group entities (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency are
translated into the presentation currency as follows:
(i) Assets and liabilities are translated at the closing exchange rates at the end of the
reporting period;
(ii) Income and expenses are translated at average exchange rates (unless the average is not a
reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates,
in which case income and expenses are translated using the exchange rates at the dates of the
transactions); and
(iii) All resulting currency translation differences are recognised in the currency translation reserve.
PAN PACIFIC HOTELS GROUP LIMITED
notes to the Financial statements
For the financial year ended 31 december 2010
2. significAnt Accounting policies (continueD)
2.21 Currency translation (continued)
(c) Translation of Group entities’ financial statements (continued)
2.22 Segment reporting
Goodwill and fair value adjustments arising on the acquisition of foreign operations on or after
1 January 2005 are treated as assets and liabilities of the foreign operations and translated at the closing
rates at the end of the reporting period. For acquisitions prior to 1 January 2005, the exchange rates
at the dates of acquisition are used.
Operating segments are reported in a manner consistent with the internal reporting provided to the Executive
Committee whose members are responsible for allocating resources and assessing performance of the
operating segments.
2.23 Cash and cash equivalents
For the purpose of presentation in the consolidated cash flow statement, cash and cash equivalents include
cash and bank balances, short-term deposits with financial institutions, and bank overdrafts.
2.24 Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary
shares are deducted against the share capital account.
2.25 Dividends
Dividends to Company’s shareholders are recognised when the dividends are approved for payments.
2.26 Government grants
Grants from the government are recognised as a receivable at their fair value when there is reasonable
assurance that the grant will be received and the Group will comply with all the attached conditions.
Government grants receivable are recognised as income over the periods necessary to match them with the
related costs which they are intended to compensate, on a systematic basis. Government grants relating to
expenses are deducted in reporting the related expenses.
3. criticAl Accounting estimAtes, Assumptions AnD juDgements
Estimates, assumptions and judgements are continually evaluated and are based on historical experience
and other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
(a) Classification of the Group’s serviced apartments as investment property
Management applies judgement in determining the classification of all its serviced apartments owned
by the Group. The key criteria used to distinguish the Group’s serviced apartments which are classified
as investment properties, and its other properties classified as property, plant and equipment, is the
level of services provided to tenants of the serviced apartments.
The Group’s serviced apartments have been classified as investment properties and the carrying amount
was $64,030,000 (2009: $53,206,000).
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notes to the Financial statements
For the financial year ended 31 december 2010
3. criticAl Accounting estimAtes, Assumptions AnD juDgements (continueD)
(b) Other estimates and judgements applied
The Group, on its own or in reliance on third party experts, also applies estimates and judgements in
the following areas:
(i) the determination of investment property values by independent professional valuers;
(ii) the assessment of adequacy of provision for income taxes; and
(iii) the level of impairment of goodwill.
These estimates, assumptions and judgements are however not expected to have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year. The carrying amounts of the above assets and liabilities are disclosed in the respective notes to
the financial statements.
4. revenue, finAnce income AnD miscellAneous income
PAN PACIFIC HOTELS GROUP LIMITED
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Gross revenue from hotel ownership and
operations 288,561 260,877 34,295 29,153
Revenue from property investments – rental
income 17,329 13,027 14,362 12,247
Revenue from hotel management services 17,611 13,760 – –
Dividend income 741 142 17,690 16,202
Total revenue 324,242 287,806 66,347 57,602
Interest income
– advances to holding company 1,185 996 1,185 996
– loans to subsidiaries – – 2,218 3,766
– fixed deposits with financial institutions 2,018 1,254 53 –
– others 165 255 45 24
Finance income 3,368 2,505 3,501 4,786
Miscellaneous income 1,987 1,440 619 542
Total 329,597 291,751 70,467 62,930
notes to the Financial statements
For the financial year ended 31 december 2010
5. expenses bY nAture
2010
$’000
the group the company
2009
$’000
2010
$’000
95
2009
$’000
Cost of inventory sold 26,157 24,633 3,834 3,596
Depreciation of property, plant and equipment
(Note 19) 32,690 31,505 4,799 4,493
Amortisation of intangibles (Note 21) 902 826 42 100
Total depreciation and amortisation 33,592 32,331 4,841 4,593
Employees compensation (Note 6) 102,407 88,311 13,573 11,825
Staff cost recharges by related companies for
corporate management and maintenance
services 2,494 3,542 1,420 1,843
Rental expense on operating leases 2,196 1,859 61 53
Auditors’ remuneration paid/payable to:
– auditors of the Company 268 262 124 139
– other auditors 437 474 – –
Other fees paid/payable to:
– auditors of the Company 26 56 3 32
– other auditors 176 93 – –
Repairs and maintenance 8,311 6,942 972 953
Currency exchange loss – net 232 212 – 42
Heat, light and power 16,436 14,509 1,511 1,243
Property, plant and equipment written off and net
loss on disposals 1,992 1,166 227 339
Group marketing expenses 2,405 2,580 – –
Advertising and promotion 9,616 9,203 1,015 698
Management fee to hotel operators 5,059 4,714 1,417 1,145
Property tax 6,666 5,356 1,890 1,007
Other hospitality related expenses 45,464 42,116 6,138 6,123
Total cost of sales, marketing and distribution,
administrative and other operating expenses 263,934 238,359 37,026 33,631
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notes to the Financial statements
For the financial year ended 31 december 2010
6. emploYee compensAtion
PAN PACIFIC HOTELS GROUP LIMITED
the group The company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Wages and salaries 95,252 82,475 12,249 10,639
Employer’s contribution to defined contribution
plans including Central Provident Fund 6,594 5,396 1,106 1,036
Retirement benefits 343 290 – –
Share options granted to employees 218 150 218 150
102,407 88,311 13,573 11,825
The wages and salaries for the financial year ended 31 December 2010 are stated after netting off the Jobs
Credit Scheme – government grant of $238,000 (2009: $1,261,000). The Jobs Credit Scheme is a cash grant
introduced in the Singapore Budget 2009 to help businesses preserve jobs in the economic downturn. The
Jobs Credit will be paid to eligible employers in 2009 in four payments and the amount an employer can
receive would depend on the fulfilment of the conditions as stated in the scheme. On 13 October 2009, the
Government has announced that the Jobs Credit Scheme will be extended for six months with another two
payouts in March and June 2010 at stepped down rates.
During the financial year, the Company was charged share option expenses amounting to $218,000
(2009: $150,000) by the holding company for share options granted to executives of the Group under
the UOL Group Executives’ Share Option Scheme.
The UOL Group Executives’ Share Option Scheme is an equity settled, share-based compensation plan. The
vesting of the granted options is conditional upon the completion of one year of service from the grant date.
The amount recharged by the holding company relates to the fair value of 220,000 (2009: 481,000) options
granted to executives of the Company on the grant date, 5 March 2010 (2009: 6 March 2009), determined using
the Trinomial Tree model. The significant inputs into the model were share price of $3.91 (2009: $1.63) at the
grant date exercise price of $3.95 (2009: $1.65), standard deviation of expected share price returns of 36.73%
(2009: 32.51%), option life from 5 March 2011 to 4 March 2020 (2009: 6 March 2010 to 5 March 2019) and annual
risk-free interest rate of 1.68% (2009: 1.24%) and total expected dividends payout of $0.389 per share (2009
$0.375 per share). The volatility measured at the standard deviation of expected share price returns is based
on statistical analysis of daily share prices of UOL over the last three years.
7. other gAins - net
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Gain on liquidation of investment in a subsidiary 156 – 2,662 –
Gain on capital reduction – – 46 –
Write-back of impairment charge on a subsidiary – – 1,400 –
156 – 4,108 –
notes to the Financial statements
For the financial year ended 31 december 2010
8. finAnce expenses
the group The company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Interest expense:
– loans from subsidiaries – – 660 743
– bank loans and overdrafts 4,768 5,061 268 83
– cash flow hedges, transfer from hedging reserve
(Note 30(d)) 507 234 – –
5,275 5,295 928 826
Amount capitalised to property under construction
(Note 20(a)) (2,151) (2,261) – –
3,124 3,034 928 826
Currency exchange loss – net 3,450 621 1,760 401
6,574 3,655 2,688 1,227
9. income tAxes
(a) Income tax expense
Tax expense attributable to profit is made up of:
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Current income tax
– Singapore (Note (b) below) 6,132 4,627 3,208 2,624
– Foreign (Note (b) below) 9,853 6,665 – –
Deferred income tax (Note 28) 1,000 (388) 1,240 (488)
16,985 10,904 4,448 2,136
Effect of changes in tax rate on deferred taxation:
– Singapore (Note 28) – (2,160) – (1,657)
16,985 8,744 4,448 479
(Over)/under provision in the preceding financial
years
– Singapore current income tax (Note (b) below) (2,349) (48) (1,862) 26
– Deferred income tax (Note 28) 495 413 – –
15,131 9,109 2,586 505
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notes to the Financial statements
For the financial year ended 31 december 2010
9. INCOME TAxES (continueD)
(a) Income tax expense (continued)
The tax expense on profit for the financial year differs from the amount that would arise using the Singapore
standard rate of income tax due to the following:
PAN PACIFIC HOTELS GROUP LIMITED
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Profit before income tax 70,351 49,184 44,840 26,452
Share of profit of associated companies, net of tax (1,127) (1,067) – –
Profit before tax and share of profit of associated
companies 69,224 48,117 44,840 26,452
Tax calculated at a tax rate of 17% 11,768 8,180 7,623 4,497
Effects of:
– Singapore statutory stepped income exemption (226) (224) (26) (26)
– Different tax rate in other countries 2,920 2,360 – –
– Income not subject to tax (903) (1,182) (3,784) (2,908)
– Expenses not deductible for tax purposes 2,712 1,783 635 573
– Foreign tax expense not recoverable 137 139 – –
– Utilisation of previously unrecognised tax losses (170) (212) – –
– Deferred tax asset not recognised in the current
financial year 747 60 – –
– Effect of changes in tax rate – (2,160) – (1,657)
Tax charge 16,985 8,744 4,448 479
(b) Movements in current income tax (assets)/liabilities
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
At the beginning of the financial year 14,207 15,359 5,916 6,911
Currency translation differences 936 1,521 – –
Income tax paid (12,997) (15,759) (2,954) (4,212)
Tax refund received 258 1,780 – 567
Tax expense on profit (Note (a) above)
– current financial year 15,985 11,292 3,208 2,624
– (over)/under provision in preceding financial years (2,349) (48) (1,862) 26
Acquisition of subsidiaries – 62 – –
At the end of the financial year 16,040 14,207 4,308 5,916
Comprise:
Tax recoverable (Note 12) – (641) – (637)
Current income tax liabilities (included under
current liabilities) 16,040 14,848 4,308 6,553
16,040 14,207 4,308 5,916
notes to the Financial statements
For the financial year ended 31 december 2010
10. eArnings per shAre
Basic earnings per share is calculated by dividing the net profit attributable to equity holders of the Company
by the weighted average number of ordinary shares outstanding during the financial year.
99
2010 2009
Net profit attributable to equity holders of the Company ($’000) 53,640 39,312
Weighted average number of ordinary shares in issue for basic earnings per
share (‘000) 600,000 600,000
Basic earnings per share (cents per share) 8.94 6.55
Diluted earnings per share is the same as basic earnings per share as there were no potential dilutive
ordinary shares.
11. cAsh AnD bAnK bAlAnces
The group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Cash at bank and on hand 43,256 28,060 1,898 3,181
Fixed deposits with financial institutions 14,648 65,057 191 6,451
57,904 93,117 2,089 9,632
(a) For the purposes of the consolidated cash flow statement, the consolidated cash and cash equivalents
comprised the following:
the group
2010 2009
$’000 $’000
Cash and bank balances (as above) 57,904 93,117
Less : Bank overdrafts (Note 23) (9) –
Cash and cash equivalents per consolidated cash flow statement 57,895 93,117
(b) The fixed deposits with financial institutions for the Group and Company mature on varying dates within twelve
months (2009: twelve months) from the end of the financial year and have the following weighted average
effective interest rates as at the end of the reporting period:
the group the company
2010 2009 2010 2009
% % % %
Singapore Dollar – 0.20 – –
United States Dollar 0.95 0.72 0.01 0.01
Australian Dollar 2.81 3.76 3.36 2.47
Malaysian Ringgit 2.80 1.95 – –
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notes to the Financial statements
For the financial year ended 31 december 2010
11. cAsh AnD bAnK bAlAnces (continueD)
(c) Acquisition of subsidiaries
During the financial year ended 31 December 2009, the Company acquired a 100% interest in Parkroyal Serviced
Residences Pte Ltd (“PSR”) from UOL Group Limited, the holding company of the Company. The effects of
the acquisition of PSR on the cash flows of the Group are as follows:
Identifiable assets and liabilities
Cash and cash equivalents 51
Trade and other receivables 86
Property, plant and equipment (Note 19) 454
Shareholder’s loan 599
Total assets 1,190
Trade and other payables (545)
Current income tax liabilities (Note 9) (62)
Deferred income tax liabilities (Note 28) (2)
Total liabilities (609)
Identifiable net assets acquired 581
Cash consideration paid 581
Repayment of shareholder’s loan (599)
Less: Cash and cash equivalents in subsidiaries acquired (51)
Net cash flow on acquisition net of cash acquired (69)
12. trADe AnD other receivAbles
PAN PACIFIC HOTELS GROUP LIMITED
$’000
the group The company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Current
Trade receivables:
– non-related parties 17,337 15,047 1,332 1,309
– fellow subsidiaries 117 370 4 11
– associated companies – 46 – –
Less: Allowance for impairment of receivables –
non-related parties (280) (355) – (1)
Trade receivables – net 17,174 15,108 1,336 1,319
Other receivables:
– loans to subsidiaries – – 11,356 21,343
– subsidiaries (non-trade) – – 3,019 12,583
– sundry debtors 7,445 4,242 552 623
– tax recoverable (Note 9(b)) – 641 – 637
7,445 4,883 14,927 35,186
24,619 19,991 16,263 36,505
Non-current
Loans to:
– subsidiaries – – 149,154 257,102
– – 149,154 257,102
Total trade and other receivables 24,619 19,991 165,417 293,607
notes to the Financial statements
For the financial year ended 31 december 2010
12. trADe AnD other receivAbles (continueD)
(a) Impairment loss on trade and other receivables for the Group recognised as an expense and included in
‘Administrative expenses’ amounted to $112,000 (2009: $94,000).
(b) The non-trade amounts due from subsidiaries are unsecured, interest-free and repayable on demand.
(c) The non-current loans to subsidiaries with interest charged on a floating-rate basis is subjected to monthly
repricing. The carrying values of the loans approximate their fair values. The loans have no fixed terms of
repayment and are not expected to be repaid within twelve months from the end of the reporting period.
(d) Loans to subsidiaries of $22,468,000 (2009: $127,523,000) have been subordinated to the secured bank loans
of the subsidiaries.
13. inventories
101
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Trading stock 272 61 52 43
Food and beverages 872 1,554 51 163
Spares for maintenance 387 965 – 74
1,531 2,580 103 280
The cost of inventories recognised as expense and included in ‘cost of sales’ amounted to $26,157,000 (2009:
$24,633,000) and $3,834,000 (2009: $3,596,000) respectively for the Group and the Company.
14. other Assets
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Deposits 14,802 544 45 –
Prepayments 2,351 2,788 192 221
17,153 3,332 237 221
15. AvAilAble-for-sAle finAnciAl Assets
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
At the beginning of the financial year 18,032 12,968 18,032 12,968
Fair value (losses)/gains recognised in other
comprehensive income (Note 30(a)) (865) 5,064 (865) 5,064
At the end of the financial year 17,167 18,032 17,167 18,032
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notes to the Financial statements
For the financial year ended 31 december 2010
15. AvAilAble-for-sAle finAnciAl Assets (continueD)
At the end of the reporting period, available-for-sale financial assets included the following:
PAN PACIFIC HOTELS GROUP LIMITED
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Listed securities:
– Equity shares - Singapore 17,167 18,032 17,167 18,032
16. investment in AssociAteD compAnies
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Equity investments at cost 9,820 9,820
At the beginning of the financial year 6,954 8,242
Share of profits 1,127 1,067
Currency translation differences (555) (251)
Dividend paid during the year (132) (2,104)
At the end of the financial year 7,394 6,954
(a) The summarised financial information of associated companies, not adjusted for the proportion ownership
interest held by the group were as follows:
the group
2010 2009
$’000 $’000
– Assets 52,102 58,057
– Liabilities 24,412 31,179
– Revenues 16,971 17,055
– Net profit after tax 2,854 2,710
(b) Contingent liabilities of the associated company in which the Group is severally liable (Note 32) amounted to
$7,557,000 (2009: $9,834,000).
(c) The associated companies are:
name of companies
Pilkon Development Company
Limited*
PPHR (Thailand) Company
Limited**
principal
activities
Investment
holding
Country of business/
incorporation equity holding
2010 2009
% %
The British Virgin
Islands
Marketing
agent Thailand
* Not required to be audited under the laws of the country of incorporation.
** Audited by Thana-Ake Advisory Limited.
39.35
by PPHG
48.97
by PPH
39.35
by PPHG
48.97
by PPH
notes to the Financial statements
For the financial year ended 31 december 2010
17. investment in subsiDiAries
103
the company
2010 2009
$’000 $’000
Equity investments at cost 408,806 242,359
Less: accumulated impairment charge:
At the beginning of the financial year (40,540) (38,040)
Impairment reversal/(charge) for the financial year 1,400 (2,500)
At the end of the financial year (39,140) (40,540)
Equity investments at cost less accumulated impairment charge
at the end of the financial year 369,666 201,819
At the beginning of the financial year 201,819 197,952
Additional investment 171,100 6,367
Capital reduction in subsidiaries (4,653) –
Impairment reversal/(charge) for the financial year 1,400 (2,500)
At the end of the financial year 369,666 201,819
(a) The impairment write-back of $1,400,000 (2009: impairment charge of $2,500,000) was recognised for the
Company’s investment in certain subsidiaries, being the difference between the carrying amount of the
investment and its recoverable amount. This is to reduce the carrying value of investments to the recoverable
amounts, taking into account the general economic and operating environment in which the relevant
subsidiaries operate in.
The recoverable amount for the relevant subsidiaries was mainly estimated based on the fair value less cost to
sell of the net assets as at balance sheet date. The carrying amount of the net assets of the relevant subsidiaries
approximates their fair values.
(b) The subsidiaries are:
name of companies
Held by the Company
New Park Hotel (1989)
Pte Ltd
Parkroyal Hotels & Resorts
Pte. Ltd.
United Lifestyle Holdings
Pte Ltd
HPL Properties (Malaysia)
Sdn. Bhd. (“HPM”) *
President Hotel Sdn Berhad
(“PHSB”) @ *
Success Venture Investments
(Australia) Ltd (“SVIA”)
principal
activities
country of
business/
incorporation
cost of
investment equity holding
2010 2009 2010 2009
$’000 $’000 % %
Hotelier Singapore 5,000 5,000 100 100
Hotel manager and
operator
Investment
holding
Investment
holding
Singapore 10 10 100 100
Singapore 1,200 3,500 100 100
Malaysia 50,172 50,172 100 100
Hotelier Malaysia 25,130 25,130 33.33 33.33
Investment holding The British
Virgin Islands
49,978 6,353 100 60
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notes to the Financial statements
For the financial year ended 31 december 2010
17. investment in subsiDiAries (continueD)
(b) The subsidiaries are: (continued)
name of companies principal activities
Held by the Company
Success Venture Investments
(WA) Limited (“SVIWA”)
PAN PACIFIC HOTELS GROUP LIMITED
country of
business/
incorporation
Investment holding The British
Virgin Islands
cost of
investment equity holding
2010 2009 2010 2009
$’000 $’000 % %
21,279 21,279 100 100
Success City Pty Limited * Dormant Australia 22,528 20,052 100 95
Garden Plaza Company
Limited *
Dou Hua Restaurants
Pte Ltd
Hotelier Vietnam 1,748 1,748 100 100
Operator of
restaurants
St Gregory Spa Pte Ltd Manage and operate
health and beauty
retreats and facilities
Hotel Investments (Suzhou)
Pte. Ltd. (“HIS”)
Hotel Investments (Hanoi)
Pte. Ltd. (“HIH”)
YIPL Investment Pte. Ltd.
(“YIPL”)
Hotel Plaza Property
(Singapore) Pte Ltd
Parkroyal International
Pte. Ltd.
Pan Pacific Hospitality
Holdings Pte Ltd
Pan Pacific International
Pte. Ltd.
Parkroyal Serviced
Residences Pte. Ltd.
[Note (d) below]
Singapore 175 875 100 100
Singapore – 1,654 100 100
Investment holding Singapore 7 7 100 100
Investment holding Singapore 6 6 100 100
Investment holding Singapore 6,045 6,045 100 100
Property development
and hotelier
Managing and licensing
of trademarks
Singapore 200,000 75,000 100 100
Singapore 100 100 100 100
Investment holding Singapore 21,757 21,757 100 100
Managing and licensing
of trademarks
Management of
serviced suites
Singapore 3,090 3,090 100 100
Singapore 581 581 100 100
408,806 242,359
notes to the Financial statements
For the financial year ended 31 december 2010
17. investment in subsiDiAries (continueD)
(b) The subsidiaries are: (continued)
name of companies principal activities
Held by subsidiaries
country of
business/
incorporation equity holding
2010
%
Success Venture Pty Limited * Trustee company Australia 100
by sviA
Yangon Hotel Limited ** Hotelier Myanmar 95
by Yipl
Westlake International Company * Hotelier Vietnam 75
by hih
Suzhou Wugong Hotel Co., Ltd * Hotelier The People’s
Republic of
China
100
by his
President Hotel Sdn Berhad (“PHSB”) @ * Hotelier Malaysia 66.67
by hpm
Grand Elite Sdn. Bhd. * Dormant Malaysia 100
by phsb
Grand Elite (Penang) Sdn. Bhd. * Dormant Malaysia 100
by phsb
Pan Pacific Hotels and Resorts Pte. Ltd.
(“PPHR”)
Pan Pacific Hotels and Resorts America,
Inc. (“PPHRA”) ^
Pan Pacific Hotels and Resorts Seattle
Limited Liability Co (“PPHRS”) ^
Pan Pacific Hotels and Resorts Japan
Co., Ltd ^
PT. Pan Pacific Hotels & Resorts Indonesia
(“PPHRI”) ***
Hotel manager and
operator
Hotel manager and
operator
Hotel manager and
operator
Hotel manager and
operator
Hotel manager and
operator
Pan Pacific Hospitality Pte. Ltd. (“PPH”) Manage and operate
serviced suites
Pan Pacific Technical Services Pte. Ltd. Provision of technical
services to hotels and
serviced suites
Singapore 100
by pphh
United States
of America
United States
of America
100
by pphr
100
by pphrA
Japan 100
by pphr
Indonesia 99
by pphr
and 1
by pphrA
Singapore 100
by pphh
Singapore 100
by pphh
105
2009
%
100
by SVIA
95
by YIPL
75
by HIH
100
by HIS
66.67
by HPM
100
by PHSB
100
by PHSB
100
by PPHH
100
by PPHR
100
by PPHRA
100
by PPHR
99
by PPHR
and 1
by PPHRA
100
by PPHH
100
by PPHH
ANNUAL REPORT 2010

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notes to the Financial statements
For the financial year ended 31 december 2010
17. investment in subsiDiAries (continueD)
(b) The subsidiaries are: (continued)
name of companies principal activities
Held by subsidiaries
Pan Pacific Marketing Services Pte. Ltd. Provision of
marketing and related
services to hotels and
serviced suites
Pan Pacific (Shanghai) Hotels
Management Co., Ltd****
(c) The following unit trusts are held by:
PAN PACIFIC HOTELS GROUP LIMITED
Hotel manager and
operator
name of unit trusts principal activities
SVIA
Success Venture (Darling Harbour) Unit
Trust*
country of
business/
incorporation equity holding
2010
%
Singapore 100
by pphh
The People’s
Republic of
China
100
by pphr
2009
%
100
by PPHH
country of
business/
constitution units held
2010 2009
% %
Hotelier Australia 100 100
Success Venture (Parramatta) Unit Trust* Hotelier Australia 100 100
SVIWA
Success Venture (WA) Unit Trust* Hotelier Australia 100 100
PricewaterhouseCoopers LLP Singapore is the auditor of all subsidiaries of the Group unless
otherwise indicated.
~ Less than $1,000.
@ The Group’s effective interest in PHSB is 100% (2009: 100%) of which 33.33% (2009: 33.33%) is held directly by the Company and the remainder
interest held through HPM.
* Companies audited by PricewaterhouseCoopers firms outside Singapore.
** Company audited by Myanmar Vigour Company Limited. +
*** Company audited by Kanaka Puradiredja, Robert Yogi Dan Suhartono. +
**** Company audited by Shanghai LSC Certified Public Accountants Co., Ltd. +
^ Not required to be audited under the laws of the country of incorporation. +
+ The subsidiaries not audited by PricewaterhouseCoopers LLP Singapore or PricewaterhouseCoopers firms outside Singapore are not significant
subsidiaries as defined under Rule 718 of the Listing Manual of the Singapore Exchange Securities Trading Limited.
–
notes to the Financial statements
For the financial year ended 31 december 2010
17. investment in subsiDiAries (continueD)
(d) Acquisition of subsidiaries
On 13 July 2009, the Company acquired a 100% interest in Parkroyal Serviced Residences Pte Ltd (“PSR”) from
UOL for cash consideration of $581,000.
PSR contributed revenue of $780,000 and net profit after tax of $205,000 to the Group for the period
from 13 July 2009 to 31 December 2009. The assets and liabilities of PSR as at 31 December 2009 were
$1,239,000 and $618,000 respectively. If the acquisition had occurred on 1 January 2009, Group revenue
would have been increased by $592,000 and net profit after tax increased by $20,000 for the financial year
ended 31 December 2009.
The cash consideration for the acquisition was determined based on the net book values of the assets and
liabilities of PSR and no goodwill was recognised. Details of net assets acquired are disclosed in Note 11(c).
18. investment properties
107
the group and
the company
2010 2009
$’000 $’000
At the beginning of the financial year 155,481 155,469
Additions – 1,632
Fair value gains/(losses) recognised in income statement 9,979 (1,620)
At the end of the financial year 165,460 155,481
(a) Investment properties are carried at fair values at the end of the reporting period as determined by independent
professional valuers. Valuations are made semi-annually based on the properties’ highest-and-best use using
various valuation methods such as Direct Market Comparison Method and Income Method.
(b) The investment properties are leased to non-related parties under operating leases (Note 33(c)).
(c) The details of the Group’s investment properties at 31 December 2010 were:
The Plaza – retained interests in a 32-storey tower block comprising restaurants,
function rooms, shops, offices and serviced suites, two adjacent
commercial buildings and a multi-storey car park block at Beach
Road, Singapore
(d) The following amounts are recognised in profit or loss:
tenure of land
99-year lease
from 1968
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Rental income (Note 4) 17,329 13,027 14,362 12,247
Direct operating expenses arising from investment
properties that generated rental income (6,917) (4,686) (6,893) (4,676)
10,412 8,341 7,469 7,571
ANNUAL REPORT 2010

A bRANd
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notes to the Financial statements
For the financial year ended 31 december 2010
19. propertY, plAnt AnD equipment
PAN PACIFIC HOTELS GROUP LIMITED
plant,
equipment,
land and building furniture motor renovation
freehold leasehold and fittings vehicles in progress total
$’000 $’000 $’000 $’000 $’000 $’000
The Group
Cost
At 1 January 2010 298,703 178,436 366,393 1,878 1,432 846,842
Currency translation differences 9,207 (7,579) (1,469) (76) (10) 73
Additions 4,767 236 6,868 201 9,326 21,398
Reclassification 371 122 2,828 – (3,321) –
Disposals (1,642) (716) (88,324) (405) – (91,087)
At 31 December 2010 311,406 170,499 286,296 1,598 7,427 777,226
Accumulated depreciation
At 1 January 2010 50,243 62,692 240,663 1,528 – 355,126
Currency translation differences 1,762 (2,649) (1,224) (67) – (2,178)
Charge for the financial year 4,542 4,146 23,840 162 – 32,690
Reclassification 114 – (114) – – –
Disposals (1,230) (681) (86,640) (405) – (88,956)
At 31 December 2010 55,431 63,508 176,525 1,218 – 296,682
Net book value
At 31 December 2010 255,975 106,991 109,771 380 7,427 480,544
plant,
equipment,
land and building furniture motor renovation
freehold leasehold and fittings vehicles in progress total
$’000 $’000 $’000 $’000 $’000 $’000
The Group
Cost
At 1 January 2009 271,387 166,010 333,127 1,340 23,605 795,469
Currency translation differences 24,658 (2,829) 17,350 (24) (533) 38,622
Acquisition of subsidiary
(Note 11(c)) – 475 95 – – 570
Additions 52 206 12,033 92 7,299 19,682
Reclassification 2,609 13,519 12,067 744 (28,939) –
Transfer from other assets – 2,072 – 17 – 2,089
Disposals (3) (1,017) (8,279) (291) – (9,590)
At 31 December 2009 298,703 178,436 366,393 1,878 1,432 846,842
Accumulated depreciation
At 1 January 2009 42,247 60,688 213,329 1,034 – 317,298
Currency translation differences 4,063 (1,094) 10,982 (22) – 13,929
Acquisition of subsidiary
(Note 11(c)) – 35 81 – – 116
Charge for the financial year 4,081 4,254 23,011 159 – 31,505
Reclassification (146) (1,471) 987 630 – –
Transfer from other assets – 507 – 17 – 524
Disposals (2) (227) (7,727) (290) – (8,246)
At 31 December 2009 50,243 62,692 240,663 1,528 – 355,126
Net book value
At 31 December 2009 248,460 115,744 125,730 350 1,432 491,716
notes to the Financial statements
For the financial year ended 31 december 2010
19. propertY, plAnt AnD equipment (continueD)
leasehold
land and
building
plant,
equipment,
furniture
109
motor renovation
and fittings vehicles in progress total
$’000 $’000 $’000 $’000 $’000
The Company
Cost
At 1 January 2010 43,484 38,152 163 1,290 83,089
Additions – 718 16 6,678 7,412
Disposals (524) (9,942) (99) – (10,565)
Reclassification – 3,167 – (3,167) –
At 31 December 2010 42,960 32,095 80 4,801 79,936
Accumulated depreciation
At 1 January 2010 21,769 19,721 115 – 41,605
Charge for the financial year 996 3,792 11 – 4,799
Disposals (504) (9,651) (99) – (10,254)
At 31 December 2010 22,261 13,862 27 – 36,150
Net book value
At 31 December 2010 20,699 18,233 53 4,801 43,786
leasehold
land and
building
plant,
equipment,
furniture
motor renovation
and fittings vehicles in progress total
$’000 $’000 $’000 $’000 $’000
The Company
Cost
At 1 January 2009 43,484 36,208 163 1,099 80,954
Additions – 5,326 – 1,233 6,559
Disposals – (4,424) – (4,424)
Reclassification – 1,042 – (1,042) –
At 31 December 2009 43,484 38,152 163 1,290 83,089
Accumulated depreciation
At 1 January 2009 20,679 20,384 106 – 41,169
Charge for the financial year 1,090 3,394 9 – 4,493
Disposals – (4,057) – – (4,057)
At 31 December 2009 21,769 19,721 115 – 41,605
Net book value
At 31 December 2009 21,715 18,431 48 1,290 41,484
(a) The leasehold land and building of the Company comprise a hotel property which was revalued by a firm of
professional valuers on 31 December 1985 on an open market existing use basis, with subsequent additions
at cost. The valuation done in 1985 was incorporated in the financial statements. However, a decision was
then made subsequently by the Board of Directors that future valuations of hotel properties would not be
incorporated in the financial statements.
ANNUAL REPORT 2010

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notes to the Financial statements
For the financial year ended 31 december 2010
19. propertY, plAnt AnD equipment (continueD)
(b) At 31 December 2010, the open market value of the hotel property of the Company (including plant, equipment,
furniture and fittings) was $122,000,000 (2009: $112,000,000) and the net book value was $37,493,000 (2009:
$36,017,000). The valuation of the hotel properties was carried out by a firm of independent professional valuers
on an open market existing use basis. The surplus on valuation amounting to $84,507,000 (2009: $75,983,000)
has not been incorporated in the financial statements.
The open market value of hotel properties of the Group (including plant, equipment, furniture and fittings)
was $1,058,261,000 (2009: $992,240,000) and the net book value at 31 December 2010 was $465,623,000
(2009: $477,901,000). The valuations were carried out by firms of independent professional valuers on an open
market existing use basis. The surplus on valuation of these hotel properties amounting to $592,638,000 (2009:
$514,339,000) has not been incorporated in the financial statements.
(c) Bank borrowings and other banking facilities are secured on certain hotel properties of the Group amounting
to $327,739,000 (2009: $324,159,000) (Note 23(a)).
(d) The details of the Group’s hotel properties at 31 December 2010 were:
PARKROYAL on
Kitchener Road
PARKROYAL on
Beach Road
PARKROYAL Darling
Harbour, Sydney
PAN PACIFIC HOTELS GROUP LIMITED
– a 534-room hotel at Kitchener Road,
Singapore
tenure
of land
– a 343-room hotel at Beach Road, Singapore 99-year lease
from 1968
– a 345-room hotel at Darling Harbour, Sydney,
Australia
remaining
lease
term
Freehold –
57 years
Freehold –
PARKROYAL Parramatta – a 196-room hotel at Parramatta, Australia Freehold –
Sheraton Perth Hotel – a 486-room hotel and carpark at Adelaide
Terrace, Perth, Australia
PARKROYAL Kuala Lumpur
and President House
PARKROYAL Penang
Resort
– a 426-room hotel and a 6-storey podium block
at Jalan Sultan Ismail, Kuala Lumpur, Malaysia
– a 320-lot carpark at Jalan Sultan Ismail, Kuala
Lumpur, Malaysia
– a 309-room resort hotel at Jalan Batu
Ferringhi, Penang, Malaysia
PARKROYAL Saigon – a 193-room hotel and 4-storey annex block
at Nguyen Van Troi Street, Ho Chi Minh City,
Vietnam
Sofitel Plaza Hanoi – a 309-room hotel and 36-unit serviced
apartment at Thanh Nien Road, Hanoi,
Vietnam
Pan Pacific Suzhou – a 481-room hotel at Xinshi Road, Suzhou,
Jiangsu, The People’s Republic of China
PARKROYAL Yangon – a 267-room hotel at the corner of Alan Pya
Phaya Road and Yaw Min Gyi Road, Yangon,
Union of Myanmar
Freehold –
Freehold –
Leasehold
expiring in
2080
70 years
Freehold –
49-year lease
from 1994
48-year lease
from 1993
50-year lease
from 1994
30-year lease
from 1997
33 years
31 years
34 years
17 years
notes to the Financial statements
For the financial year ended 31 december 2010
20. propertY unDer construction
111
the group
2010 2009
$’000 $’000
Costs of land 253,200 253,200
Development costs 48,514 25,813
Property taxes, interest and other overheads 9,064 6,109
310,778 285,122
Less: Impairment charge (37,000) (37,000)
Property under construction 273,778 248,122
(a) Borrowing costs of $2,151,000 (2009: $2,261,000) (Note 8) arising on financing specifically entered into for
the development of the property were capitalised during the financial year and are included in property
under construction.
(b) Details of the property under construction as at 31 December 2010 are as follows:
property
Upper Pickering Street
A proposed development comprising 363-room hotel
and approximately 7,300 square metres of office
space
tenure
of land
99 year
leasehold
from 2008
stage of
completion
expected
completion
date
site area/
gross
floor area
(sq m)
19% Mid-2012 6,959/
29,812
(c) Bank borrowings of a subsidiary of $88,480,000 (2009: $88,480,000) (Note 23(a)) is secured by a legal mortgage
on the land and proposed developments and all present and future rights and interests arising from the lease,
sale and other agreements in respect of the development.
21. intAngibles
2010
$’000
the group the company
2009
$’000
2010
$’000
2009
$’000
Trademark (Note (a) below) 12,524 13,289 – 204
Goodwill arising on consolidation
(Note (b) below) 13,911 13,911 – –
Computer software costs – under development
(Note (c) below) 2,932 – 589 –
Contract acquisition costs (Note (d) below) 1,405 – – –
30,772 27,200 589 204
ANNUAL REPORT 2010

A bRANd
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notes to the Financial statements
For the financial year ended 31 december 2010
21. intAngibles (continueD)
(a) Trademark
PAN PACIFIC HOTELS GROUP LIMITED
2010
$’000
the group the company
2009
$’000
2010
$’000
2009
$’000
At the beginning of the financial year 13,289 14,115 204 304
Addition 107 – 107 –
Transfer – – (269) –
Amortisation for the financial year (872) (826) (42) (100)
At the end of the financial year 12,524 13,289 – 204
Cost 15,045 14,938 784 946
Accumulated amortisation (2,521) (1,649) (784) (742)
Net book value 12,524 13,289 – 204
(b) Goodwill arising on consolidation
There were no movements in goodwill arising on consolidation for the current and previous financial year.
Impairment tests for goodwill
Goodwill is allocated to the Group’s cash-generating units (“CGUs”) identified according to countries
of operation and business segment. A segment-level summary of the goodwill allocation is analysed as
follows:
hotel ownership
2010
$’000
2009
$’000
China 13,080 13,080
Malaysia 831 831
13,911 13,911
The recoverable amount of the above CGU was determined based on fair value less cost to sell calculations.
The fair value less cost to sell reflect the best estimate of the amount obtainable from the sale of a CGU
in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal. The fair
values were determined by independent professional valuers using the cash flows projections of 5 and 9
years (2009: 5 and 9 years) which were prepared based on the expected future market trend.
notes to the Financial statements
For the financial year ended 31 december 2010
21. intAngibles (continueD)
(b) Goodwill arising on consolidation (continued)
Key assumptions used for fair value less cost to sell calculations:
113
china malaysia
2010
Growth rate 9.8% 1.6%
Discount rate 12.3% 6.2%
2009
Growth rate 14.0% 2.4%
Discount rate 12.3% 7.3%
(c) Computer software costs – under development
2010
$’000
the group the company
2009
$’000
2010
$’000
2009
$’000
At the beginning of the financial year – – – –
Additions 2,932 – 589 –
At the end of the financial year 2,932 – 589 –
(d) Contract acquisition costs
2010
$’000
the group
2009
$’000
Cost
At the beginning of the financial year – –
Additions 1,435 –
At the end of the financial year 1,435 –
Accumulated amortisation
At the beginning of the financial year – –
Amortisation charge 30 –
At the end of the financial year 30 –
Net book value 1,405 –
In 2010, the Group incurred costs in the securing of management contracts. These costs have been capitalised
as intangible assets in accordance with the group policy in Note 2.5(d).
ANNUAL REPORT 2010

A bRANd
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notes to the Financial statements
For the financial year ended 31 december 2010
22. trADe AnD other pAYAbles
PAN PACIFIC HOTELS GROUP LIMITED
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Current
Trade payables:
– non-related parties 15,149 16,199 2,382 3,660
– fellow subsidiaries 300 268 – 254
– holding company 1,309 279 – 272
– associated company – 5 – –
– subsidiaries – – 48 140
16,758 16,751 2,430 4,326
Other payables:
– accrued operating expenses 31,410 27,073 4,303 2,743
– sundry creditors 8,861 4,761 1,805 1,478
– retention monies 388 675 353 288
– accrued interest payable 335 285 43 –
– rental deposits 1,129 1,845 203 326
– other deposits 3,052 2,883 93 94
45,175 37,522 6,800 4,929
61,933 54,273 9,230 9,255
Non-current
Rental deposits 3,057 2,882 2,928 2,715
Retention monies 2,068 – – –
5,125 2,882 2,928 2,715
Total trade and other payables 67,058 57,155 12,158 11,970
The carrying amount of rental deposits and retention monies approximate their fair values.
23. borroWings
2010
$’000
the group the company
2009
$’000
2010
$’000
2009
$’000
Current
Bank overdrafts (unsecured) 9 – – –
Bank loans (secured) 70,654 6,087 – –
70,663 6,087 – –
Non-current
Bank loans (secured) 120,564 176,031 28,609 –
Total borrowings 191,227 182,118 28,609 –
notes to the Financial statements
For the financial year ended 31 december 2010
23. borroWings (continueD)
(a) Securities granted
The bank overdrafts and loans are secured by mortgages on certain subsidiaries’ hotel properties; and/or
assignment of all rights and benefits with respect to the properties. The net book value of hotel properties
which have been pledged as securities amounted to $327,739,000 (2009: $324,159,000) (Note 19(c)).
Bank borrowings of a subsidiary of $88,480,000 (2009: $88,480,000) is secured by a legal mortgage on the land
and proposed developments and all present and future rights and interests arising from the lease, sale and
other agreements in respect of the development (Note 20(c)).
(b) Repricing analysis
Interest on the bank loans of the Group and of the Company is on floating-rate basis and all the loans are due
for repricing between one to twelve months (2009: between one to six months) from the end of the reporting
period. The carrying values of the loans approximate their fair values.
24. DerivAtive finAnciAl instruments
115
the group
contract
notional fair value
amount liability
$’000 $’000
2010
Cash-flow hedges
– Interest rate swaps 40,000 457
Less: Current portion 457
Non-current portion –
2009
Cash-flow hedges
– Interest rate swaps 40,000 439
Less: Current portion –
Non-current portion 439
A subsidiary entered into Singapore dollar interest rate swap to hedge floating semi-annual interest payments
on borrowings that will mature on 5 October 2011. The interest rate swap terminates on 5 October 2011.
Fair value gains and losses on the interest rate swaps recognised in the hedging reserve are transferred to
income statement as part of interest expense over the period of the borrowings.
25. holDing compAnY
The Company’s immediate and ultimate holding company is UOL Group Limited (“UOL”).
In 2010, the advances to the holding company are unsecured with interest charged at 0.40% above a subsidiary’s
average costs of funds and is repayable on demand. The effective interest rate at the end of the reporting
period was 1.99% (2009: 2.18%) per annum. The carrying values of the advances to the holding company
approximate their fair values.
ANNUAL REPORT 2010

A bRANd
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notes to the Financial statements
For the financial year ended 31 december 2010
26. loAns from subsiDiAries
Details of the loans from subsidiaries are as follows:
Current
(a) Interest-free loans
Non-current
Loans from a subsidiary of $nil (2009: $4,653,000) are interest-free. The loans have no fixed terms of
repayment and are expected to be repaid within 12 months from the end of the reporting period.
(a) Interest-free loans
Loans of $78,222,000 (2009: $81,216,000) are interest-free. The fair value of the interest-free loans from
subsidiaries is $76,307,000 (2009: $79,021,000). The fair value is computed based on the present value
of the cash flows on the loans discounted at a rate of 2.43% (2009: 2.78%), which is the borrowing rate
that the directors expect would be available to the Company at the end of the reporting period. The
loans have no fixed terms of repayment but are not expected to be repaid within 12 months from the
end of the reporting period.
(b) Floating rate loans
Loans from subsidiaries of $4,090,000 (2009: $7,380,000) with interest charged on a floating-rate basis,
subject to monthly repricing. The carrying values of the loans approximate their fair values. The loans
have no fixed terms of repayment but are not expected to be repaid within 12 months from the end of
the reporting period.
(c) Fixed rate loans
Loans of $18,545,000 (2009: $18,067,000) with interest charged at fixed rate of 3.50% (2009: 3.50%) per
annum. The carrying values of the loans approximate their fair values. The loans have no fixed terms of
repayment but are not expected to be repaid within 12 months from the end of the reporting period.
27. provision for retirement benefits
PAN PACIFIC HOTELS GROUP LIMITED
the group
2010 2009
$’000 $’000
Non-current 2,539 2,316
(a) A subsidiary in Malaysia operates an unfunded defined benefit scheme under the Collective Union Agreement
for unionised employees and certain management staff. Benefits payable on retirement are calculated by
reference to length of service and earnings over the employees’ years of employment. Provision for postemployment
benefit obligations is made in the financial statements so as to provide for the accrued liability
at the end of the reporting period. An actuarial valuation, based on the projected unit credit method, of
the fund is conducted by a qualified independent actuary once every three years as the directors are of the
opinion that yearly movement in provision is not likely to be significant. The most recent revaluation was at
31 December 2009.
notes to the Financial statements
For the financial year ended 31 december 2010
27. provision for retirement benefits (continueD)
(b) The movements during the year recognised in the statements of financial position were as follows:
117
the group
2010 2009
$’000 $’000
At the beginning of the financial year 2,316 2,112
Benefits paid (179) (61)
Charged to income statement (Note 6) 343 290
Exchange differences 59 (25)
At the end of the financial year 2,539 2,316
(c) The expense recognised in the income statement may be analysed as follows:
the group
2010 2009
$’000 $’000
Current service cost 203 178
Interest on obligation 140 112
Expense recognised in the income statement 343 290
The charge to the income statement was included under ‘administrative expenses’ in the income statement.
(d) The principal actuarial assumptions used in respect of the Group’s defined benefit plan were as follows:
the group
2010 2009
% %
Discount interest rate 6.2 6.2
Future salary increase 6.5 6.5
Inflation rate 3.5 3.5
Normal retirement age (years)
– Male 55 55
– Female 50 50
ANNUAL REPORT 2010

A bRANd
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notes to the Financial statements
For the financial year ended 31 december 2010
28. DeferreD income tAxes
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set off current
income tax assets against current income tax liabilities and when the deferred income taxes relate to the
same fiscal authority. The amounts, determined after appropriate offsetting, are shown on the statements of
financial position as follows:
PAN PACIFIC HOTELS GROUP LIMITED
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Deferred income tax assets:
– to be recovered within one year (78) (625) – –
– to be recovered after more than one year (2,705) (2,705) – –
(2,783) (3,330) – –
Deferred income tax liabilities:
– to be settled within one year 513 1,448 717 1,519
– to be settled after more than one year 49,218 46,774 31,095 29,053
49,731 48,222 31,812 30,572
The movements in the deferred income tax account are as follows:
46,948 44,892 31,812 30,572
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
At the beginning of the financial year 44,892 46,845 30,572 32,882
Currency translation differences 564 363 – –
Effects of change in tax rate:
– income statement (Note 9(a)) – (2,160) – (1,657)
– equity (Note 30(b),(d)) – (162) – (165)
Tax charge/(credit) to:
– income statement (Note 9(a)) 1,495 25 1,240 (488)
– equity (Note 30(d)) (3) (21) – –
Acquisition of subsidiaries – 2 – –
At the end of the financial year 46,948 44,892 31,812 30,572
Deferred income tax assets are recognised for tax losses carried forward to the extent that realisation of the
related tax benefits through future taxable profits is probable. The Group has unrecognised tax losses of
approximately $15,000 (2009: $15,000) at the end of the reporting period which can be carried forward and
used to offset against future taxable income subject to those subsidiary companies meeting certain statutory
requirements in their respective countries of incorporation. These tax losses have no expiry date.
notes to the Financial statements
For the financial year ended 31 december 2010
28. DeferreD income tAxes (continueD)
The movements in the deferred income tax assets and liabilities (prior to offsetting of balances within the same
tax jurisdiction) during the financial year are as follows:
The Group
Deferred income tax liabilities
Accelerated
tax
depreciation
fair value
adjustments
on investment
property and
surplus on
revaluation of
certain hotel
unremitted
foreign
income,
other
interest and Amortisation temporary
properties dividends of intangibles differences total
$’000 $’000 $’000 $’000 $’000 $’000
2010
At the beginning of the
financial year 18,737 25,813 1,519 2,224 (71) 48,222
Currency translation differences 522 – – – (1) 521
Charged/(credited) to
income statement 350 1,696 (802) (124) (132) 988
At the end of the financial year 19,609 27,509 717 2,100 (204) 49,731
2009
At the beginning of the
financial year 12,543 28,701 5,864 2,485 (734) 48,859
Currency translation differences 443 (7) – – 5 441
Effects of changes in tax rate:
– income statement (333) (1,365) (326) (138) 2 (2,160)
– equity – (165) – – – (165)
Charged/(credited) to
income statement 6,082 (1,351) (4,019) (123) 656 1,245
Acquisition of subsidiaries 2 – – – – 2
At the end of the financial year 18,737 25,813 1,519 2,224 (71) 48,222
119
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notes to the Financial statements
For the financial year ended 31 december 2010
28. DeferreD income tAxes (continueD)
The Group (continued)
Deferred income tax assets
PAN PACIFIC HOTELS GROUP LIMITED
excess of
depreciation
over capital
allowances tax losses
fair value
loss on
derivative
financial
instruments total
$’000 $’000 $’000 $’000
2010
At the beginning of the financial year (2,003) (1,252) (75) (3,330)
Currency translation differences 43 – – 43
Charged to income statement – 507 – 507
Credited to equity – – (3) (3)
At end of the financial year (1,960) (745) (78) (2,783)
2009
At the beginning of the financial year (1,473) (484) (57) (2,014)
Currency translation differences 1 (79) – (78)
Effects of changes in tax rate:
– equity – – 3 3
Credited to income statement (531) (689) – (1,220)
Credited to equity – – (21) (21)
At end of the financial year (2,003) (1,252) (75) (3,330)
The Company
Deferred income tax liabilities
fair value
adjustments
on investment
property and unremitted
surplus on foreign
Accelerated revaluation of income,
tax certain hotel interest and
depreciation properties dividends total
$’000 $’000 $’000 $’000
2010
At the beginning of the financial year 3,239 25,814 1,519 30,572
Charged/(credited) to income statement 346 1,696 (802) 1,240
At the end of the financial year 3,585 27,510 717 31,812
2009
At the beginning of the financial year 3,654 27,620 1,608 32,882
Effect of changes in tax rate
– income statement (203) (1,365) (89) (1,657)
– equity – (165) – (165)
Credited to income statement (212) (276) – (488)
At the end of the financial year 3,239 25,814 1,519 30,572
notes to the Financial statements
For the financial year ended 31 december 2010
29. shAre cApitAl of pAn pAcific hotels group limiteD
121
number
of shares Amount
‘000 $’000
2010 and 2009
At the beginning and end of the financial year 600,000 557,333
All issued ordinary shares have no par value and are fully paid.
30. reserves
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Fair value reserve (Note (a) below) 6,591 7,456 6,591 7,456
Asset revaluation reserve (Note (b) below) 23,070 23,070 24,590 24,590
Currency translation reserve (Note (c) below) (3,567) (7,884) – –
Hedging reserve (Note (d) below) (379) (364) – –
25,715 22,278 31,181 32,046
All the reserves are non-distributable.
(a) Fair value reserve
2010
$’000
the group the company
2009
$’000
2010
$’000
2009
$’000
At the beginning of the financial year 7,456 2,392 7,456 2,392
Fair value (losses)/gains on available-for-sale
financial assets (Note 15) (865) 5,064 (865) 5,064
At the end of the financial year 6,591 7,456 6,591 7,456
(b) Asset revaluation reserve
2010
$’000
the group the company
2009
$’000
2010
$’000
2009
$’000
At the beginning of the financial year 23,070 22,905 24,590 24,425
Effect of change in Singapore tax rate – 165 – 165
At the end of the financial year 23,070 23,070 24,590 24,590
The asset revaluation reserve does not take into account the surplus of $84,507,000 (2009: $75,983,000) and
$592,638,000 (2009: $514,339,000), arising from the revaluation of the hotel properties of the Company and of
the Group respectively as stated in Note 19.
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notes to the Financial statements
For the financial year ended 31 december 2010
30. reserves (continueD)
(c) Currency translation reserve
PAN PACIFIC HOTELS GROUP LIMITED
2010
$’000
the group
2009
$’000
At the beginning of the financial year (7,884) (34,117)
Net currency translation differences of financial statements of foreign
subsidiaries and borrowings designated as hedges against foreign
subsidiaries 5,262 32,347
Less: Amount attributable to non-controlling interests (945) (6,114)
4,317 26,233
At the end of the financial year (3,567) (7,884)
(d) Hedging reserve
2010
$’000
the group
2009
$’000
At the beginning of the financial year (364) (259)
Effect of change in Singapore tax rate – (3)
Fair value loss (525) (357)
Deferred tax on fair value loss 89 61
(436) (296)
Transfer to income statement (Note 8) 507 234
Tax on transfer adjustments (86) (40)
421 194
At the end of the financial year (379) (364)
The hedging reserve comprises the effective portion of the cumulated net change in the fair value of interest
rate swaps for hedged transactions that have not occurred.
31. DiviDenDs
the group and the
company
2010 2009
$’000 $’000
Final one-tier dividend paid in respect of the previous financial year of 3.5 cents
(2009: one-tier dividend of 4 cents) per share 21,000 24,000
At the forthcoming Annual General Meeting on 19 April 2011, a final dividend of 4 cents per share
amounting to $24,000,000 will be recommended. These financial statements do not reflect this dividend,
which will be accounted for in shareholders’ equity as an appropriation of retained profits in the financial
year ending 31 December 2011.
notes to the Financial statements
For the financial year ended 31 december 2010
32. contingent liAbilities
The Company has guaranteed the borrowings of a subsidiary amounting to $4,714,000 (2009: $3,093,000). The
borrowings were denominated in United States Dollar.
At the end of the reporting period, the Group has given guarantees of $7,557,000 (2009: $9,834,000) in respect
of banking facilities granted to an associated company. The guarantees granted are unsecured.
The directors are of the view that no material losses will arise from these contingent liabilities.
The Company has also given undertakings to provide financial support to certain subsidiaries.
33. commitments
(a) Capital commitments
Capital expenditure contracted for at the end of the reporting period but not recognised in the financial
statements are as follows:
123
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Expenditure contracted for
– property, plant and equipment 200,149 7,424 64,427 2,182
– property under construction 137,687 163,344 – –
337,836 170,768 64,427 2,182
On 21 December 2010, the Group entered into a conditional sale and purchase agreement to acquire the
Hilton Melbourne Airport hotel in Australia for a cash consideration of $141,544,000. The capital commitment
(included above) relating to the acquisition amounted to $128,085,000 at the end of the reporting period.
(b) Operating lease commitments – where a group company is a lessee
The Group leases various premises under non-cancellable operating lease agreements. The leases have varying
terms, escalation clauses and renewal rights.
The future aggregate minimum lease payable under non-cancellable operating leases contracted for at the
end of the reporting period but not recognised as liabilities, are analysed as follows:
the group
2010 2009
$’000 $’000
Not later than one year 3,619 2,495
Later than one year but not later than five years 5,639 3,344
Later than five years 5,989 7,040
15,247 12,879
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notes to the Financial statements
For the financial year ended 31 december 2010
33. commitments (continueD)
(c) Operating lease commitments – where a group company is a lessor
The Group leases various premises under non-cancellable operating lease agreements. The leases have varying
terms, escalation clauses and renewal rights.
The Group and Company lease out its investment properties to non-related parties under non-cancellable
operating leases (Note 18). The future minimum lease receivable under non-cancellable operating leases
contracted for at the end of the reporting period but not recognised as receivables, are analysed as follows:
PAN PACIFIC HOTELS GROUP LIMITED
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Not later than one year 13,463 11,854 9,547 9,297
Later than one year but not later than five years 2,503 14,873 1,211 13,684
15,966 26,727 10,758 22,981
34. finAnciAl risK mAnAgement
Financial risk factors
The Board of Directors provides guidance for overall risk management. The management continually monitors
the Group’s risk management process to ensure that an appropriate balance between risk and control is
achieved. Risk management policies and systems are reviewed regularly to reflect changes in market conditions
and the Group’s activities.
The Group’s activities expose it to market risk (including currency risk, interest rate risk and price risk), credit
risk and liquidity risk. The Group’s overall risk management strategy seeks to minimise adverse effects from
the unpredictability of financial markets on the Group’s financial performance. When necessary, the Group
uses financial instruments such as interest rate swaps, currency forwards and foreign currency borrowings to
hedge certain financial risk exposures.
(a) Market risk
(i) Currency risk
The Group operates in the Asia Pacific region and is exposed to foreign exchange risk arising from
various currency exposures primarily with respect to Australian Dollar (“AUD”), Malaysian Ringgit
(“MYR”), Renminbi (“RMB”) and United States Dollar (“USD”). As the entities in the Group transact
substantially in their functional currency, the Group’s exposure to currency risk is not significant.
The Group has a number of investments in foreign subsidiaries whose net assets are exposed to currency
translation risk. Currency exposures to the net assets of the Group’s subsidiaries in Australia, Malaysia,
Myanmar, China and Vietnam are managed through borrowings, as far as are reasonably practical, in
foreign currencies which broadly match those in which the net assets are denominated or in currencies
that are freely convertible.
notes to the Financial statements
For the financial year ended 31 december 2010
34. finAnciAl risK mAnAgement (continueD)
(a) Market risk (continued)
(i) Currency risk (continued)
The Group’s currency exposure based on the information provided to key management is
as follows:
sgD usD AuD mYr rmb others total
$’000 $’000 $’000 $’000 $’000 $’000 $’000
The Group
At 31 December 2010
Financial assets
Cash and bank balances 5,185 14,369 23,725 6,214 2,548 5,863 57,904
Trade and other
receivables and other
assets 11,880 3,666 21,645 2,209 449 1,923 41,772
Advances to holding
company 49,630 – – – – – 49,630
Available-for-sale
financial assets 17,167 – – – – – 17,167
83,862 18,035 45,370 8,423 2,997 7,786 166,473
Financial liabilities
Trade and other payables (33,647) (10,494) (11,032) (5,678) (2,993) (3,214) (67,058)
Borrowings (180,172) – – (6,341) (4,714) – (191,227)
Derivative financial
instruments (457) – – – – – (457)
(214,276) (10,494) (11,032) (12,019) (7,707) (3,214) (258,742)
Net financial assets/
(liabilities) (130,414) 7,541 34,338 (3,596) (4,710) 4,572 (92,269)
Less: Net financial
assets/(liabilities)
denominated in the
respective entities’
functional currencies 128,582 (1,550) (34,633) 3,633 4,710 (3,062) 97,680
Add: Firm commitments
and highly probable
forecast transactions in
foreign currencies – – 128,085 – – – 128,085
Less: Firm commitments
and highly probable
forecast transactions
denominated in the
respective entities
functional currencies – – (115,015) – – – (115,015)
Currency exposure (1,832) 5,991 12,775 37 – 1,510 18,481
125
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notes to the Financial statements
For the financial year ended 31 december 2010
34. finAnciAl risK mAnAgement (continueD)
(a) Market risk (continued)
(i) Currency risk (continued)
PAN PACIFIC HOTELS GROUP LIMITED
sgD usD AuD mYr rmb others total
$’000 $’000 $’000 $’000 $’000 $’000 $’000
The Group
At 31 December 2009
Financial assets
Cash and bank balances 7,322 16,670 53,184 7,176 5,028 3,737 93,117
Trade and other
receivables and other
assets 8,546 4,408 5,827 2,417 829 1,296 23,323
Advances to holding
company 55,662 – – – – – 55,662
Available-for-sale
financial assets 18,032 – – – – – 18,032
89,562 21,078 59,011 9,593 5,857 5,033 190,134
Financial liabilities
Trade and other payables (20,358) (10,944) (9,755) (5,312) (9,318) (1,468) (57,155)
Borrowings (164,801) – – (14,224) (3,093) – (182,118)
Derivative financial
instruments (439) – – – – – (439)
(185,598) (10,944) (9,755) (19,536) (12,411) (1,468) (239,712)
Net financial assets/
(liabilities) (96,036) 10,134 49,256 (9,943) (6,554) 3,565 (49,578)
Less: Net financial
assets/(liabilities)
denominated in the
respective entities’
functional currencies 96,089 337 (49,285) 9,968 6,554 (3,179) 60,484
Currency exposure 53 10,471 (29) 25 – 386 10,906
The Group does not have significant exposure to currency risk other than USD and AUD. Assuming that
the USD and AUD change against the SGD by 5% (2009: 5%) with all other variables including tax rate
being held constant, the effects on the Group’s profit after tax will be as follows:
increase/(Decrease)
2010 2009
$’000 $’000
The Group
USD against SGD
– strengthened 300 524
– weakened
AUD against SGD
(300) (524)
– strengthened 639 –
– weakened (639) –
notes to the Financial statements
For the financial year ended 31 december 2010
34. finAnciAl risK mAnAgement (continueD)
(a) Market risk (continued)
(i) Currency risk (continued)
The Company’s currency exposure based on the information provided to key management is as follows:
127
sgD usD AuD mYr total
$’000 $’000 $’000 $’000 $’000
The Company
At 31 December 2010
Financial assets
Cash and bank balances 1,899 97 93 – 2,089
Trade and other receivables and other
assets 99,586 66,006 47 15 165,654
Advance to holding company 49,630 – – – 49,630
Available-for-sale financial assets 17,167 – – – 17,167
168,282 66,103 140 15 234,540
Financial liabilities
Trade and other payables (12,158) – – – (12,158)
Borrowings (28,609) – – – (28,609)
Loans from subsidiaries (43,422) (57,435) – – (100,857)
(84,189) (57,435) – – (141,624)
Net financial assets 84,093 8,668 140 15 92,916
Less: Net financial assets/(liabilities)
denominated in the Company’s
functional currency (84,093) – – – (84,093)
Currency exposure – 8,668 140 15 8,823
ANNUAL REPORT 2010

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notes to the Financial statements
For the financial year ended 31 december 2010
34. finAnciAl risK mAnAgement (continueD)
(a) Market risk (continued)
(i) Currency risk (continued)
PAN PACIFIC HOTELS GROUP LIMITED
sgD usD AuD mYr total
$’000 $’000 $’000 $’000 $’000
The Company
At 31 December 2009
Financial assets
Cash and bank balances 3,181 6,365 86 – 9,632
Trade and other receivables and
other assets 205,610 87,444 192 582 293,828
Advance to holding company 55,662 – – – 55,662
Available-for-sale financial assets 18,032 – – – 18,032
282,485 93,809 278 582 377,154
Financial liabilities
Trade and other payables (11,970) – – – (11,970)
Loans from subsidiaries (49,205) (62,111) – – (111,316)
(61,175) (62,111) – – (123,286)
Net financial assets 221,310 31,698 278 582 253,868
Less: Net financial assets/(liabilities)
denominated in the Company’s
functional currency (221,310) – – – (221,310)
Currency exposure – 31,698 278 582 32,558
Assuming that the USD change by a respective 5% against the SGD (2009: 5%), with all other variables
including tax rate being held constant, the effects on the Company’s profit after tax will be as follows:
Increase/(Decrease)
2010 2009
$’000 $’000
The Company
USD against SGD
– strengthened 433 1,585
– weakened (433) (1,585)
(ii) Price risk
The Group and Company are exposed to equity securities price risk due to its quoted investment
in securities listed in Singapore, which has been classified in the consolidated statement of financial
position as available-for-sale financial assets. Management does not consider the exposure to be
significant as the quoted investment is intended to be held for long-term and the value of the quoted
investment is not significant to the Group’s and the Company’s financial statements.
notes to the Financial statements
For the financial year ended 31 december 2010
34. finAnciAl risK mAnAgement (continueD)
(a) Market risk (continued)
(iii) Cash flow and fair value interest rate risks
(b) Credit risk
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Fair value interest rate risk is the risk that the fair value of
a financial instrument will fluctuate due to changes in market interest rates.
The Group’s exposure to cash flow interest rate risks arises mainly from variable-rate borrowings.
The Company’s exposure to cash flow interest rate risks arises mainly from borrowings and loans to
subsidiaries at variable rates. The management of Group and Company monitor closely the changes in
interest rates and when appropriate, manages their exposure to changes in interest rates by entering
into fixed rate arrangements where necessary.
The Group’s and Company’s variable-rate financial assets and liabilities on which effective hedges
have not been entered into, are denominated mainly in SGD, USD, MYR and RMB. Assuming that the
interest-rates increase/decrease by 1% with all other variables including tax rate being held constant,
the effects on the profit after tax will be lower/higher as follows:
129
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
SGD 1,163 1,036 691 690
USD – – 547 667
MYR 48 107 – –
RMB 35 23 – –
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Group. The Group’s and Company’s major classes of financial assets are bank deposits and trade
and other receivables. For trade receivables, the Group adopts the policy of dealing only with customers of
appropriate credit history, and obtaining sufficient security such as deposits and bankers’ guarantees where
appropriate to mitigate credit risk. Bank deposits were mainly placed with financial institutions which have
high credit ratings. There are no significant credit risks arising from other receivables.
Credit exposure to an individual customer or counterparty is generally restricted by credit limits that are
approved by the respective management at the entity level based on ongoing credit evaluation. The customer’s
or counterparty’s payment profile and credit exposure are continuously monitored at the entity level by the
respective management and at Group management.
The Group’s and Company’s maximum exposure to credit risk on corporate guarantees provided to banks on
subsidiaries’ and an associated company’s loans are disclosed in Note 32.
ANNUAL REPORT 2010

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notes to the Financial statements
For the financial year ended 31 december 2010
34. finAnciAl risK mAnAgement (continueD)
(b) Credit risk (continued)
The credit risk of trade and other receivables based on the information provided to key management is
as follows:
PAN PACIFIC HOTELS GROUP LIMITED
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
By geographical areas
Singapore 13,030 9,873 165,417 293,607
Australia 6,309 4,592 – –
China 553 699 – –
Malaysia 1,846 2,042 – –
Vietnam 1,503 1,203 – –
Myanmar 263 348 – –
Others 1,115 1,234 – –
24,619 19,991 165,417 293,607
By operating segments
Property investments 914 676 353 612
Hotel ownership 10,830 11,585 165,064 292,995
Hotel management services 12,875 7,730 – –
24,619 19,991 165,417 293,607
(i) Financial assets that are neither past due nor impaired
Bank deposits that are neither past due nor impaired are mainly deposits with banks with high creditratings
assigned by international credit rating agencies. Trade receivables that are neither past due nor
impaired are substantially companies with a good collection track record with the Group.
(ii) Financial assets that are past due and/or impaired
There is no other class of financial assets that is past due and/or impaired except for trade receivables
and loans to subsidiaries and an associated company. The aged analysis of trade and other receivables
past due but not impaired is as follows:
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Past due 0 to 3 months 4,268 3,522 95 106
Past due 3 to 6 months 108 113 – –
Past due over 6 months 38 105 – –
4,414 3,740 95 106
The carrying amount of trade and other receivables and loans to subsidiaries and an associated company
individually determined to be impaired and the movements in the related allowance for impairment
are as follows:
notes to the Financial statements
For the financial year ended 31 december 2010
34. finAnciAl risK mAnAgement (continueD)
(b) Credit risk (continued)
(ii) Financial assets that are past due and/or impaired (continued)
(c) Liquidity risk
131
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Gross amount 289 382 – 1
Less: Allowance for impairment (280) (355) – (1)
9 27 – –
Beginning of financial year 355 527 1 –
Allowance made 112 94 – 1
Allowance utilised (187) (266) (1) –
End of financial year 280 355 – 1
The table below analyses the maturity profile of the Group’s and the Company’s financial liabilities based on
contractual undiscounted cash flows:
less than between between
1 year 1 and 2 years 2 to 5 years
$’000 $’000 $’000
The Group
At 31 December 2010
Trade and other payables 61,933 4,783 342
Borrowings 74,204 120,446 2,170
Net settled interest rate swaps 421 – –
Financial guarantee contracts 7,557 – –
144,115 125,229 2,512
At 31 December 2009
Trade and other payables 54,273 547 2,335
Borrowings 8,440 88,811 98,430
Net settled interest rate swaps 187 143 –
Financial guarantee contracts – 9,834 –
62,900 99,335 100,765
The Company
At 31 December 2010
Trade and other payables 9,231 2,585 342
Borrowings – 28,754 –
Loans from subsidiaries 680 40,857 60,681
Financial guarantee contracts 7,557 4,714 –
17,468 76,910 61,023
At 31 December 2009
Trade and other payables 9,255 380 2,335
Loans from subsidiaries 5,395 41,998 65,407
Financial guarantee contracts 3,093 9,834 –
17,743 52,212 67,742
ANNUAL REPORT 2010

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notes to the Financial statements
For the financial year ended 31 december 2010
34. finAnciAl risK mAnAgement (continueD)
(c) Liquidity risk (continued)
The Group and the Company manage the liquidity risk by maintaining sufficient cash to enable them to meet
their normal operating commitments, having an adequate amount of committed credit facilities.
(d) Capital risk
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
concern and to maintain an optimal capital structure so as to maximise shareholders’ value. In order to maintain
or achieve an optimal capital structure, the Group may, subject to the necessary approvals from the shareholders
and/or the regulatory authorities, adjust the amount of dividend payment, return capital to shareholders, issue
new shares, buy back issued shares, obtain new borrowings or sell assets to reduce borrowings.
Management monitors capital based on gearing ratio. The Group will strive to manage a ratio of total
borrowings to shareholders’ equity not exceeding 150%.
PAN PACIFIC HOTELS GROUP LIMITED
the group
2010 2009
$’000 $’000
Total borrowings 191,227 182,118
Shareholders’ equity 801,683 790,477
Total borrowings to shareholders’ equity ratio 24% 23%
The Group’s bank borrowing facilities require it to meet certain ratios based on consolidated capital and
reserves attributable to the Company’s equity holders and consolidated total equity. The Group has satisfactory
complied with all covenants under its borrowing agreements.
The Group and the Company are in compliance with the banks’ imposed capital requirements for the financial
years ended 31 December 2010 and 2009.
(e) Fair value measurements
The following table presents assets and liabilities measure at fair value and classified by level of the following
fair value measurement hierarchy:
(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
(b) inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (ie as prices) or indirectly (ie derived from prices) (Level 2); and
(c) inputs for the asset or liability that are not based on observable market data (unobservable inputs)
(Level 3).
notes to the Financial statements
For the financial year ended 31 december 2010
34. finAnciAl risK mAnAgement (continueD)
(e) Fair value measurements (continued)
133
level 1 level 2 total
$’000 $’000 $’000
Group
2010
Assets
Available-for-sale financial assets
– Equity securities 17,167 – –
Liabilities
Derivatives used for hedging – 457 –
Company
2010
Assets
Available-for-sale financial assets
– Equity securities 17,167 – –
level 1 level 2 total
$’000 $’000 $’000
Group
2009
Assets
Available-for-sale financial assets
– Equity securities 18,032 – 18,032
Liabilities
Derivatives used for hedging – 439 439
Company
2009
Assets
Available-for-sale financial assets
– Equity securities 18,032 – 18,032
The fair value of financial instruments traded in active markets (such as available-for-sale securities) is based
on quoted market prices at the end of the reporting period. The quoted market price used for financial assets
held by the Group is the current bid price. These instruments are included in Level 1.
The fair value of financial instruments that are not traded in an active market is determined by using valuation
techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions
existing at the end of each reporting period. Quoted market prices or dealer quotes for similar instruments are
used to estimate fair value for long-term debt for disclosure purposes. Other techniques, such as estimated
discounted cash flows, are used to determine fair value for the remaining financial instruments. The fair value
of interest rate swaps is calculated as the present value of the estimated future cash flows. These investments
are included in Level 2. The Group has no investments in Level 3 where valuation techniques were used based
on significant unobservable inputs.
ANNUAL REPORT 2010

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notes to the Financial statements
For the financial year ended 31 december 2010
34. finAnciAl risK mAnAgement (continueD)
(e) Fair value measurements (continued)
The carrying value less impairment provision of trade receivables and payables are assumed to approximate
their fair values. The fair value of financial assets and financial liabilities for disclosure purposes is estimated
based on quoted market prices or dealer quotes for similar instruments by discounting the future contractual
cash flows at the current market interest rate that is available to the Group for similar financial instruments.
The fair value of current borrowings approximates their carrying amount.
There are no transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy for the financial years
ended 31 December 2010 and 2009.
35. relAteD pArtY trAnsActions
(a) In addition to the related party information disclosed elsewhere in the financial statements, there were the
following significant transactions between the Group and related companies during the financial year on terms
agreed between the parties concerned:
PAN PACIFIC HOTELS GROUP LIMITED
the group the company
2010 2009 2010 2009
$’000 $’000 $’000 $’000
Transactions with UOL and its subsidiaries
Acquisition of Parkroyal Serviced Residences
Pte Ltd – 581 – 581
Staff costs recharges for corporate management
and property maintenance services received 2,382 3,542 1,420 1,843
Fees received for management of hotels and
serviced suites 2,599 1,489 78 78
Rental paid 991 826 991 826
Transactions with UOL’s associated companies
Fees received for management of hotel 6,782 5,628 – –
Fees received for operation of spas 493 339 47 34
Transactions with banks and insurance companies
in which certain directors have interests
Interest earned from fixed deposits 1,878 1,213 53 –
Rental and maintenance fees received 264 279 25 55
Interest paid on bank loans 1,746 1,405 189 22
Commitment and facility fee paid 126 1,761 79 42
Bankers’ guarantee commission 175 106 162 101
Rental paid 594 769 – –
Insurance premium paid 420 419 79 101
(b) The borrowings (Note 23) of the Group and the Company amounting to $117,234,000 (2009: $88,480,000) and
$28,754,000 (2009: $nil) respectively were extended by a bank in which certain directors have interests.
(c) Cash at bank and fixed deposits with financial institutions (Note 11) of the Group and the Company amounting
to $35,521,000 (2009: $68,878,000) and $2,047,000 (2009: $9,632,000) respectively were placed with a bank in
which certain directors have interests.
notes to the Financial statements
For the financial year ended 31 december 2010
35. relAteD pArtY trAnsActions (continueD)
(d) Key management personnel compensation is analysed as follows:
135
the group
2010 2009
$’000 $’000
Salaries and other short-term employee benefits 4,341 3,438
Directors’ fees 598 486
Post-employment benefits – contribution to CPF and pension fund 173 138
Share options granted 116 22
5,228 4,084
Total compensation to directors of the Company included in above amounted to $2,722,000
(2009: $ 2,376,000).
36. group segmentAl informAtion
Management has determined the operating segments based on the reports reviewed by the Executive
Committee (“Exco”) that are used to make strategic decisions. The Exco comprises the Chairman, the Group
Chief Executive and two other Board members of the Group.
The Exco considers the business from both a business and geographic segment perspective. The Group’s four
key business segments operate in various geographical areas.
The hotels owned by the Group are located in Singapore, Australia, Vietnam, Malaysia, China and Myanmar
and key asset and profit contributions are from the hotels in Singapore and Australia.
The property investment activities of the Group are concentrated in Singapore.
The Group’s investment segment relates to the investments in equity shares in Singapore.
The Group also provides hotel management services to companies and hotels in Singapore and overseas.
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notes to the Financial statements
For the financial year ended 31 december 2010
36. group segmentAl informAtion (continueD)
The segment information provided to the Exco for the reportable segments for the year ended
31 December 2010 is as follows:
PAN PACIFIC HOTELS GROUP LIMITED
hotel
hotel ownership property management
Australia singapore vietnam malaysia china myanmar investments services investments total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Group
2010
Revenue
Total segment sales 103,531 79,803 33,847 44,943 16,773 9,664 21,529 27,535 17,691 355,316
Inter-segment sales – – – – – – (4,200) (9,924) (16,950) (31,074)
Sales to external parties 103,531 79,803 33,847 44,943 16,773 9,664 17,329 17,611 741 324,242
Adjusted EBITDA 26,817 24,159 17,478 10,652 (568) 2,543 11,453 3,739 741 97,014
Depreciation 7,092 7,444 4,948 5,987 5,046 821 1,118 234 – 32,690
Amortisation
Fair value gain on
– 145 – – – – – 757 – 902
investment properties – – – – – – 9,979 – – 9,979
Other gains – net – 156 – – – – – – – 156
Total segment assets
Total segement assets
includes:
Investment in associated
187,618 419,207 48,398 98,794 82,715 8,916 167,609 31,250 17,167 1,061,674
companies
Additions during the
financial year to:
– property, plant and
– – 7,328 – – – – 66 – 7,394
equipment
– property under
7,171 1,428 1,037 2,354 1,751 567 6,632 458 – 21,398
construction – 25,656 – – – – – – – 25,656
Total segment
liabilities 11,143 20,625 5,145 9,031 5,432 5,910 4,402 7,909 – 69,597
notes to the Financial statements
For the financial year ended 31 december 2010
36. group segmentAl informAtion (continueD)
The segment information provided to the Exco for the reportable segments for the year ended
31 December 2009 is as follows:
hotel
hotel ownership property management
Australia singapore vietnam malaysia china myanmar investments services investments total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Group
2009
Revenue
Total segment sales 90,316 65,284 32,822 41,888 22,738 7,829 13,027 19,895 16,202 310,001
Inter-segment sales – – – – – – – (6,135) (16,060) (22,195)
Sales to external parties 90,316 65,284 32,822 41,888 22,738 7,829 13,027 13,760 142 287,806
Adjusted EBITDA 23,173 18,223 16,660 10,995 3,497 1,100 8,825 1,670 142 84,285
Depreciation 6,344 7,572 5,165 6,129 4,417 804 803 271 – 31,505
Amortisation
Fair value loss on
– 100 – – – – – 726 – 826
investment properties – – – – – – 1,620 – – 1,620
Total segment assets
Total segment assets
includes:
Investment in associated
149,532 388,670 53,579 102,276 92,929 9,806 161,365 24,638 18,032 1,000,827
companies
Additions during the
financial year to:
– property, plant and
– – 6,909 – – – – 45 – 6,954
equipment 2,258 3,717 732 849 7,466 322 3,872 466 – 19,682
– investment property
– property under
– – – – – – 1,632 – – 1,632
construction – 11,063 – – – – – – – 11,063
Total segment
liabilities 9,777 15,567 5,413 7,825 8,354 4,915 3,965 3,655 – 59,471
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notes to the Financial statements
For the financial year ended 31 december 2010
36. group segmentAl informAtion (continueD)
Sales between segments are carried out at arm’s length. The revenue from external parties reported to the
Exco is measured in a manner consistent with that in the statement of comprehensive income.
The Exco assesses the performance of the operating segments based on a measure of Earnings before
interest, tax, depreciation and amortisation (“adjusted EBITDA”). This measurement basis excludes the effects
of expenditure from the operating segments such as restructuring costs and goodwill impairment that are
not expected to recur regularly in every period. Finance income and finance expenses are not allocated to
segments, as this type of activity is driven by the Group Treasury, which manages the cash position of the
Group. Since the Exco reviews adjusted EBITDA, the results of discontinued operations are not included in
the measure of adjusted EBITDA.
A reconciliation of adjusted EBITDA to profit before tax and discontinued operations is provided as follows:
PAN PACIFIC HOTELS GROUP LIMITED
2010 2009
$’000 $’000
Adjusted EBITDA for reportable segments 97,014 84,285
Depreciation (32,690) (31,505)
Amortisation (902) (826)
Fair value gain/(loss) on investment properties 9,979 (1,620)
Gain of liquidation of investment in a subsidiary 156 –
Finance income 3,368 2,505
Finance expenses (6,574) (3,655)
Profit before tax 70,351 49,184
Reportable segments’ assets are reconciled to total assets as follows:
The amounts provided to the Exco with respect to total assets are measured in a manner consistent with that
of the financial statements. For the purposes of monitoring segment performance and allocating resources
between segments, the Exco monitors the property, plant and equipment, intangible assets, inventories,
receivables, operating cash and investment properties attributable to each segment. All assets are allocated
to reportable segments other than fixed deposits, tax recoverable, deferred income tax assets and advances
to holding company.
2010 2009
$’000 $’000
Segment assets for reportable segments 1,061,674 1,000,827
Unallocated:
Fixed deposits 14,648 65,057
Tax recoverable – 641
Deferred income tax assets 2,783 3,330
Advances to holding company 49,630 55,662
Total assets 1,128,735 1,125,517
notes to the Financial statements
For the financial year ended 31 december 2010
36. group segmentAl informAtion (continueD)
Reportable segments’ liabilities are reconciled to total liabilities as follows:
The amounts provided to the Exco with respect to total liabilities are measured in a manner consistent with
that of the financial statements. These liabilities are allocated based on the operations of the segment. All
liabilities are allocated to the reportable segments other than current income tax liabilities, deferred income
tax liabilities, borrowings and derivative financial instruments.
2010 2009
$’000 $’000
Segment liabilities for reportable segments 69,597 59,471
Unallocated:
Current income tax liabilities 16,040 14,848
Deferred income tax liabilities 49,731 48,222
Borrowings 191,227 182,118
Derivative financial instruments 457 439
Total liabilities 327,052 305,098
Geographical information
The Group’s four business segments operate in six main geographical areas. In Singapore, where the Company
is domiciled, the areas of operation of the Company are principally hotel ownership, hotel management
services, property investments and investment holdings.
The main activities in Australia, Vietnam, Malaysia, China and Myanmar consist of hotel ownership.
Revenue and non-current assets are shown by the geographical areas where the assets are located.
revenue
2010 2009
$’000 $’000
Singapore 111,104 87,432
Australia 103,531 90,316
Vietnam 33,847 32,822
Malaysia 44,943 41,887
China 17,273 22,738
Myanmar 9,664 7,829
Others 3,880 4,782
324,242 287,806
non-current assets
2010 2009
$’000 $’000
Singapore 601,556 566,770
Australia 145,213 138,260
Vietnam 43,530 49,878
Malaysia 92,998 94,182
China 82,578 89,469
Myanmar 6,959 7,760
Others 5,064 4,516
977,898 950,835
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notes to the Financial statements
For the financial year ended 31 december 2010
36. group segmentAl informAtion (continueD)
Geographical segments (continued)
There is no single external customer that contributes 10% or more to the Group’s or the Company’s revenues.
Revenue from major products and services
Revenue from external customers are derived mainly from the Group’s hotel ownership, property investment
and hotel management services. Revenue from investment holdings are included in “Others” below. Breakdown
of the revenue is as follows:
PAN PACIFIC HOTELS GROUP LIMITED
2010 2009
$’000 $’000
Hotel ownership 288,561 260,877
Hotel management services 17,611 13,760
Property investments 17,329 13,027
Others 741 142
324,242 287,806
37. neW or reviseD Accounting stAnDArDs AnD interpretAtions
Below are the mandatory standards, amendments and interpretations to existing standards that have been
published, and are relevant for the Group’s accounting periods beginning on or after 1 January 2011 or later
periods and which the Group has not early adopted:
• Amendments to FRS 24 – Related party disclosures (effective for annual periods beginning on or after
1 January 2011)
• Amendments to FRS 32 Financial Instruments: Presentation – Classification of rights issues (effective
for annual periods beginning on or after 1 February 2010)
• Amendments to INT FRS 114 – Prepayments of a minimum funding requirement (effective for annual
periods commencing on or after 1 January 2011)
• INT FRS 119 Extinguishing financial liabilities with equity instruments (effective for annual periods
commencing on or after 1 July 2010).
The management anticipates that the adoption of the above FRSs, INT FRSs and amendments to FRS in the
future periods will not have a material impact on the financial statements of the Group and of the Company
in the period of their initial adoption, except for the amendments to FRS 24 – related party disclosures.
The amendment removes the requirement for government-related entities to disclose details of all transactions
with the government and other government-related entities. It also clarifies and simplifies the definition of a
related party. However, the revised definition of a related party will mean that some entities will have more
related parties and will be required to make additional disclosures.
Management is currently considering the revised definition to determine whether any additional disclosures
will be required and has yet to put systems in place to capture the necessary information. It is therefore not
possible to disclose the financial impact, if any, of the amendment on the related party disclosures.
38. AuthorisAtion of finAnciAl stAtements
These financial statements were authorised for issue in accordance with a resolution of the Board of Directors
of Pan Pacific Hotels Group Limited on 22 February 2011.
corporate governance report
For the year ended 31 december 2010
The Company is committed in its continuing efforts to achieve high standards of corporate governance and business
conduct so as to enhance long-term shareholder value and safeguard the interests of its stakeholders. It has adopted
a framework of corporate governance policies and practices in line with the principles and guidelines set out in the
Code of Corporate Governance 2005 (“Code”).
This report sets out the corporate governance practices that have been adopted by the Company with specific
reference to the principles of the Code, as well as any deviation from any guideline of the Code together with an
explanation for such deviation.
stAtement of compliAnce
The Board of Directors (the “Board”) of the Company confirms that for the financial year ended 31 December 2010,
the Company has generally adhered to the principles and guidelines as set out in the Code.
boArD mAtters
Principle 1: The Board’s Conduct of its Affairs
The principal responsibilities of the Board are:
1. reviewing and approving the corporate policies, strategies, budgets and financial plans of the Company;
2. monitoring financial performance including approval of the annual and interim financial reports;
3. overseeing and reviewing the processes for evaluating the adequacy of internal controls, risk management,
financial reporting and compliance;
4. approving major funding proposals, investments, acquisitions and divestment proposals;
5. planning board and senior management succession and the remuneration policies; and
6. assuming responsibility for corporate governance.
To facilitate effective management, certain functions of the Board have been delegated to various board committees,
which review and make recommendations to the Board on specific areas. There are currently four standing board
committees appointed by the Board, namely:
Executive Committee
Nominating Committee
Remuneration Committee
Audit Committee
The membership and attendance of the Directors for the four standing board committees are set out on page 148.
The Board has conferred upon the Executive Committee (“EXCO”) and the Group Chief Executive (“GCE”) and the
President & CEO (“CEO”) certain discretionary limits and powers for capital expenditure, budgeting, treasury and
investment activities and human resource management. The levels of authorisation required for specified transactions
are specified in a Charter adopted by the Board.
The EXCO, GCE and CEO are assisted by the management team (“Management”) in the daily operations and
administration of the Group’s business activities and the effective implementation of the Group’s strategies. The
GCE sets the major strategies and policies for the Group. The CEO is responsible for leading the implementation of
strategies and the day-to-day operations and businesses of the Group. Management is issued with a chart of authority
and limits for capital expenditure, budgets, investment and other activities for their compliance.
In addition to the GCE and the CEO, the key personnel leading the management team are Executive Director, Asset
Management (“ED Asset Management”), Chief Financial Officer (“CFO”), Senior Vice President, Human Capital &
Development (“SVP Human Capital”), Senior Vice President, Operations (“SVP Operations”), Senior Vice President,
Marketing & Sales (“SVP Marketing”) and Senior Vice President, Growth & Development (“SVP Development”).
Save for the ED Asset Management, the CFO, SVP Human Resources, SVP Operations, SVP Marketing and SVP
Development have no familial relationship with each other, the Chairman, the GCE and the CEO.
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corporate governance report
For the year ended 31 december 2010
The EXCO currently comprises four members, namely:
Wee Cho Yaw, Chairman
Gwee Lian Kheng
Alan Choe Fook Cheong
Wee Ee Chao
The EXCO is chaired by the Chairman of the Board and has been given certain authority and functions such as
the formulation and review of policies, approval of investments, overall planning and review of strategy as well as
dealing with business of an urgent, important or extraordinary nature whilst the CEO is responsible for the day-to-day
operations and administration of the Group.
At the Board meetings, the Directors not only review the financial performance of the Company, but also participate
in discussions of matters relating to corporate governance, business operations, risks and transactions undertaken
by the Company.
The Board conducts regular scheduled meetings on a quarterly basis. Ad-hoc meetings are convened when
circumstances require. The Company’s Articles of Association (“Articles”) allow a board meeting to be conducted
by way of telephonic and video-conferencing. The attendance of Directors at meetings of the Board and board
committees, as well as the frequency of such meetings, is disclosed on page 148.
New Directors are provided with information on the corporate background, the key personnel, the core businesses,
the group structure, financial statements of the Group and their scope of duties and responsibilities. All Directors are
appointed to the Board by way of a formal letter of appointment. Guidance is also given to all Directors on regulatory
requirements concerning disclosure of interests and restrictions on dealings in securities. Training is made available to
Directors on the Company’s business and governance practices, updates/developments in the regulatory framework
and environment affecting the Company including those organised by the Singapore Exchange Securities Trading
Limited (“SGX-ST”) and the Singapore Institute of Directors. This aims to give Directors better understanding of the
Group’s businesses and allows them to integrate into their roles and duties.
Principle 2: Board Composition and Guidance
Currently, four of the ten-member Board are independent. As Lim Kee Ming is retiring and hence, does not wish
to be considered for re-appointment at the annual general meeting (“AGM”) on 19 April 2011, there will be three
independent directors.
With three Board members being independent directors constituting one-third of the Board, and such independent
directors having the requisite experience, expertise and standing, the Board is able to exercise objective judgment
independently, and no individual or small group of individuals dominate the Board’s decision-making process.
The Articles allow for the maximum of ten Directors. The Board considers the current board size to be appropriate,
taking into account the nature and scope of the Group’s operations.
The current Board comprises persons who possess diverse corporate experiences and as a group, the relevant
qualifications and experience and core competencies necessary to manage the Group and contribute effectively to
the Group.
Principle 3: Chairman and GCE/CEO
The Company has a separate Chairman, GCE and CEO as it believes that a distinctive separation of responsibilities
between the Chairman, GCE and CEO will ensure an appropriate balance of power, increased accountability and
greater capacity of the Board for independent decision-making in the best interest of the Company and shareholders.
The Chairman, GCE and CEO have no familial relationship with each other. The GCE has, working together with
the CEO, the executive responsibility for the overall administration of the Group. On the other hand, the Chairman
provides leadership to the Board. He sets the meeting agenda in consultation with the GCE and ensures that Directors
are provided with accurate, timely and clear information.
PAN PACIFIC HOTELS GROUP LIMITED
corporate governance report
For the year ended 31 december 2010
Principle 4: Board Membership
The Nominating Committee (“NC”) currently comprises three non-executive Directors of whom two are independent.
The NC members are:
Alan Choe Fook Cheong, Chairman
Lim Kee Ming
Wee Cho Yaw
The NC is responsible for re-nomination of Directors at regular intervals and at least every three years. In recommending
to the Board any re-nomination and re-election of existing Directors, the NC takes into consideration the Directors’
contribution and performance at Board meetings, including attendance, preparedness, participation and candour.
The independence of the Board is also reviewed annually by the NC. The NC adopts the Code’s definition of
what constitutes an independent director in its review. The independent non-executive Directors are Alan Choe
Fook Cheong, Lim Kee Ming, Low Weng Keong and James Koh Cher Siang. Each NC member has abstained from
deliberations in respect of his own assessment. Lim Kee Ming will not be seeking re-appointment at the AGM on
19 April 2011.
Where a Director has multiple board representations, the NC also considers whether or not the Director is able to
and has adequately carried out his duties as a Director of the Company. The NC is satisfied that sufficient time and
attention are being given by the Directors to the affairs of the Company, notwithstanding that some of the Directors
have multiple board representations.
Directors of or over 70 years of age are required to be re-appointed every year at the AGM under Section 153(6) of
the Companies Act before they can continue to act as a Director. The NC, with each member abstaining in respect
of his own re-appointment, has recommended to the Board that Wee Cho Yaw, Gwee Lian Kheng and Alan Choe
Fook Cheong, who are over 70 years of age, be nominated for re-appointment at the forthcoming AGM.
Article 94 of the Articles also require all Directors except a Managing Director to retire from office once at least in each
three years. These Directors may offer themselves for re-election if eligible. The NC has recommended that Wee Ee
Chao and Wee Ee Lim who retire by rotation pursuant to this Article, be nominated for re-election as well.
The NC recommends all appointments and re-appointments of Directors to the Board. New directors are appointed
by way of a board resolution after the NC recommends their appointment for approval of the Board. New directors
thus appointed by way of board resolution must submit themselves for re-election at the next AGM pursuant to
Article 99 of the Articles.
The NC makes recommendations to the Board on all board appointments. The search and nomination process for
new directors (if any) will be conducted through contacts and recommendations that go through the normal selection
process, to ensure the search for the right candidates is as objective and comprehensive as possible.
Key information regarding the Directors’ academic qualifications and other appointments are set out on pages 149
to 150. In addition, information on shareholdings in the Company held by each Director is set out in the “Report of
the Directors” section of this Annual Report.
Principle 5: Board Performance
The NC has assessed the contributions of each Director to the effectiveness of the Board and evaluated the
performance of the Board as a whole. In evaluating the performance of the Board as a whole, the NC has adopted
certain quantitative indicators which include return on equity, return on assets and the Company’s share price
performance. These performance criteria allow the Company to make comparisons with its industry peers and are
linked to long-term shareholder value. For consistency in assessment, the selected performance criteria are not
changed from year to year and where circumstances deem it necessary for any of the criteria to be changed, the NC,
in its consultation with the Board will justify such changes.
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corporate governance report
For the year ended 31 december 2010
Principle 6: Access to Information
Currently, Directors receive regular financial and operational reports on the Group’s businesses and briefings
during its quarterly Board meetings. In addition, management reports comparing actual performance with budget,
highlighting key performance indicators, as well as accounts and reports on the financial performance of the Group
are also provided. During the quarterly Board meetings, key Management staff who are able to explain and provide
insights to the matters to be discussed at the Board meetings are invited to make the appropriate presentations and
answer any queries from Directors. Directors who require additional information may approach senior management
directly and independently.
Under the direction of the Chairman, the Company Secretaries are responsible for ensuring good information flow
within the Board and its committees and between senior management and non-executive Directors, as well as
facilitating orientation and assisting with professional development as required.
Directors have separate and independent access to the advice and services of the Company Secretaries and
may, either individually or as a group, in the furtherance of their duties and where necessary, obtain independent
professional advice at the Company’s expense.
The Company Secretaries attend all Board meetings and ensure that all Board procedures are followed. The
Company Secretaries, together with Management, ensure that the Company complies with all applicable statutory
and regulatory rules. The minutes of all Board and Committee meetings are circulated to the Board.
remunerAtion mAtters
Principle 7: Procedures for Developing Remuneration Policies
The Remuneration Committee (“RC”) currently comprises three non-executive Directors of whom two are independent.
The RC members are:
Lim Kee Ming, Chairman
Wee Cho Yaw
Alan Choe Fook Cheong
The RC is currently chaired by an independent Director. The RC is responsible for ensuring a formal procedure for
developing policy on executive remuneration and for fixing the remuneration packages for Directors and senior
management. The RC recommends for the Board’s endorsement a framework of remuneration which covers all aspects
of remuneration, including without limitation, directors’ fees, salaries, allowances, bonuses, options and benefits-inkind.
None of the RC members or Director is involved in deliberations in respect of any remuneration, compensation
or any form of benefit to be granted to him.
The RC members are familiar with remuneration / compensation matters as they manage their own businesses and/
or are holding other directorships in the boards of other listed companies. The RC has access to appropriate expert
advice if necessary.
Principle 8: Level and Mix of Remuneration
In determining remuneration packages, the RC takes into consideration industry practices and norms in
compensation.
In relation to Directors, the performance-linked elements of the remuneration package for executive Directors
are designed to align their interests with those of shareholders. For non-executive Directors, their remuneration is
appropriate to their level of contribution, taking into account factors such as effort and time spent as well as their
respective responsibilities.
The Board recommends the fees to be paid to Directors for shareholders’ approval annually. The fees are divided on
the basis that Directors with additional duties as members or chairmen of board committees would receive a higher
portion of the total fees.
Gwee Lian Kheng, an executive Director of the Company, has an employment contract with UOL, which may be
terminated by either party giving 3 months’ notice. His remuneration package includes a variable bonus element
(which is substantially linked to the performance of UOL) and share options of UOL.
PAN PACIFIC HOTELS GROUP LIMITED
corporate governance report
For the year ended 31 december 2010
Wee Wei Ling and Amedeo Patrick Imbardelli, executive Directors of the Company, each have an employment contract
with the Company which may be terminated by the giving of 2 months’ notice and 3 months’ notice respectively. Their
individual remuneration package includes a variable bonus element (which is substantially linked to the performance
of the Company).
The RC reviews and makes recommendations to the Board on directors’ fees and allowances. RC members abstain
from deliberations in respect of their own remuneration. Details of the total fees and other remuneration of the
Directors are set out in the Remuneration Report on page 151. The GCE’s remuneration package is reviewed by the
Remuneration Committee of UOL.
Principle 9: Disclosure on Remuneration
In relation to employees of the Group, the remuneration policy of the Company seeks to align the interests of such
employees with those of the Company as well as to ensure that remuneration is commercially attractive to attract,
retain and motivate employees. The typical remuneration package comprises both fixed and variable components,
with a base salary making up the fixed component and a variable component in the form of a performance bonus
and/or share options. The report on the remuneration of the top 5 key executives (who are not directors) of the
Company is disclosed on page 151.
Save for Wee Wei Ling who is an immediate family member of three Directors of the Company, namely Wee Cho
Yaw, Wee Ee Chao and Wee Ee Lim, no other employee who is an immediate family member of a Director was paid
more than $150,000 during FY2010. “Immediate family member” means spouse, child, adopted child, step-child,
brother, sister and parent.
AccountAbilitY AnD AuDit
Principle 10: Accountability
The Company announces in advance when quarterly and annual financial results will be released and ensures the
financial results are released to its shareholders in a timely manner.
The Board is responsible for providing a balanced and understandable assessment of the Company’s performance,
position and prospects, including interim and other price sensitive public reports and reports to regulators, if
required.
Management provides to members of the Board for their endorsement, annual budgets and targets, and management
accounts which present a balanced and understandable assessment of the Company’s performance, position and
prospects on a regular basis.
Principle 11: Audit Committee (“AC”)
The AC comprises three members, with the members having many years of related accounting and financial
management expertise and experience, and all of whom are independent and non-executive Directors. The AC
members are:
Lim Kee Ming, Chairman
Alan Choe Fook Cheong
Low Weng Keong
The AC carries out the functions set out in the Code and the Companies Act. The terms of reference include reviewing
the financial statements, the internal and external audit plans and audit reports, the external auditors’ evaluation of the
system of internal accounting controls, the scope and results of the internal audit procedures, the cost effectiveness,
independence and objectivity of the external auditors and interested person transactions.
In performing the functions, the AC has met with the internal and external auditors, without the presence of the GCE,
CEO and Management, at least annually and reviewed the overall scope of the internal and external audits and the
assistance given by Management to the auditors.
The AC has explicit authority to investigate any matter within its terms of reference. It has full access to, and the cooperation
of Management, and full discretion to invite any Director or executive officer to attend its meetings. It has
reasonable resources to enable it to discharge its functions properly.
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corporate governance report
For the year ended 31 december 2010
The AC has reviewed and is satisfied with the independence and objectivity of the external auditors and recommends
to the Board the nomination of PricewaterhouseCoopers LLP for re-appointment.
The Audit Committee Guideline Committee issued the Guidebook for Audit Committees in Singapore in October 2008
(“AC Guidebook”) and the AC Guidebook had been disseminated to the members of the AC for their reference.
The Company has in place a Code of Business Conduct (“CBC”) which was adopted in 2006. The CBC is reviewed
by the AC regularly and is also disseminated to the employees who are required to affirm their compliance with the
CBC. The CBC contains, inter alia, a whistle-blowing policy to encourage and provide a channel to employees to
report, in good faith and in confidence, concerns about possible fraud, improprieties in financial reporting or other
matters. The objective of such arrangement is to ensure independent investigation of such matters and for appropriate
follow-up action.
Principle 12: Internal Controls
The Board recognises the importance of sound internal controls and risk management practices as part of good
corporate governance. The Board is responsible for ensuring that Management maintains a sound system of internal
controls to safeguard shareholders’ investments and the assets of the Group.
The Group has in place various guidelines and strategies to manage risks and safeguard its businesses.
This includes the enterprise-wide risk management programme (“ERM Programme”) for the Group which was
introduced in 2009 in consultation with KPMG LLP and which the Group is continually cascading down to its business
and operations. The ERM Programme which consolidates the Group’s risk management practices in an enterprise-wide
framework would enable Management to have a formal structure to continually:-
(i) establish and evaluate the risk appetite of the Group,
(ii) identify the key risks which the Group faces and the current controls and strategies for the Group to manage
and/or mitigate these risks,
(iii) assess the effectiveness of the current controls and strategies and determine if further risk treatment plans are
needed in line with best practices, and
(iv) set up and monitor key risk indicators (“KRIs”) so that Management can evaluate and respond to risks that
have a material impact on the Group’s businesses and operations as and when they arise and take mitigating steps
as necessary.
This ERM Programme is in line with the best practices highlighted in the AC Guidebook.
Key management staff had actively participated in the ERM Programme and they have acquired an adequate
understanding of ERM concepts, methodologies and tools to enable them to perform risk management functions in
their respective areas of work. Further, the Group has set up a Group ERM Committee comprising senior members
of the Management team to oversee the direction, implementation and running of the ERM Programme and the
Group ERM Committee reports to the AC on the ERM Programme.
It is intended that Management will continually review the key risks, both existing and emerging, current controls and
the KRIs on a regular basis and take necessary measures to address and mitigate any new key risks that may have
arisen. Management will continue to reinforce the “risk-aware” culture within the Group. The AC will be updated
half-yearly or more frequently as needed, on the progress of the ERM Programme by Management.
Further, as PPHG is part of the UOL Group, its key risks and registers are consolidated and reviewed at the UOL
Group level.
Management will continually review the key risks, both existing and emerging, current controls and the KRIs on
a regular basis and take necessary measures to address and mitigate any new key risks that may have arisen.
Management will continue to reinforce the “risk-aware” culture within the Group and to progressively cascade the
ERM Programme down to all levels of the Group’s businesses and hotel operations. The AC will be updated half-yearly
or more frequently as needed, on the progress of the ERM Programme including the key risks and risk management
controls and treatment plans by Management.
PAN PACIFIC HOTELS GROUP LIMITED
corporate governance report
For the year ended 31 december 2010
Management believes the above measures will ensure that the ERM Programme is a cohesive and comprehensive
one which employees of the Group will collectively participate in and contribute to in order to enhance the Group’s
internal controls. The ERM Programme is intended to ensure that the Group has a system to deal with current and
evolving risks so that the Group will stay on a sustainable growth path in the long term.
The key risks identified can be broadly grouped as operational risks, financial risks and investment risks.
Operational Risks
The Group’s operational risk framework is designed to ensure that operational risks are continually identified,
managed and mitigated. This framework is implemented at each operating unit and in the case of the Group’s hotels,
is monitored at the Group level by the Group’s asset management team. In the case of the Group’s investment and
hotel properties, these are subject to operating risks that are common to the property and hotel industries and to
the particular countries in which the investment and hotel properties are situated. It is recognised that risks can
never be entirely eliminated and the Group must always weigh the cost and benefit in managing the risks. As a tool
to transfer and/or mitigate certain portions of risks, the Group also maintains insurance covers at levels determined
to be appropriate taking into account the cost of cover and risk profiles of the businesses in which it operates.
Complementing the Management’s role is the internal audit which provides an independent perspective on the
controls that help to mitigate major operational risks.
Management will continuously review and implement further improvements to the current measures as and when these
improvements are identified from the ERM Programme. To further enhance the existing operational risk framework,
Management will be taking steps to progressively cascade the ERM Programme down to the individual investment
and hotel property and reinforce a “risk-aware” culture amongst the employees.
Financial Risks
The Group is exposed to a variety of financial risks, including interest rates, foreign currency, credit and liquidity risks.
The management of financial risks is outlined under Note 34 of the Notes to the Financial Statements.
Investment Risks
The Board and EXCO have overall responsibility for determining the level and type of business risk the Group
undertakes. The Group has a dedicated Development and Growth department that evaluates all new investment
opportunites on the bases and investment criteria set out by the Board and EXCO. All major investment proposals
are submitted to the EXCO and the Board, as the case may be, for approval. Ongoing performance monitoring and
asset management of new and existing investments are performed by the Group. In addition, Management will
continually determine under the ERM Programme, if further measures could be implemented to monitor, analyse
and to the extent possible, mitigate the respective country risks in respect of which current and future investment
projects are located.
The AC, with the assistance of internal and external auditors, has reviewed, and the Board is satisfied with, the
adequacy of such controls, including financial, operational and compliance controls established by Management.
Principle 13: Internal Audit
The Internal Audit function of the Group is supported by the Internal Audit Department of UOL, its holding company,
and it is independent of the activities it audits. The Deputy General Manager (Group Internal Audit) has a direct
reporting line to the AC, with administrative reporting to the GCE.
The Internal Audit Department aims to meet or exceed the Standards for the Professional Practice of Internal
Auditing set by the Institute of Internal Auditors. As part of its audit activities, the Internal Audit Department reviews
all interested party transactions and ensure that the necessary controls are in place and are complied with.
The Internal Audit function is adequately resourced and has appropriate standing within the Group. The Deputy
General Manager (Group Internal Audit), who is employed by UOL, joined UOL in October 1997 and holds a Bachelor
of Accountancy (Honours) Degree from the Nanyang Technological University. He is also a non-practising member
of the Institute of Certified Public Accountants of Singapore and a Member of the Institute of Internal Auditors
(Singapore).
The AC has reviewed and is satisfied with the adequacy of the Internal Audit function.
147
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corporate governance report
For the year ended 31 december 2010
communicAtion With shAreholDers
Principle 14: Communication with Shareholders
Principle 15: Greater Shareholder Participation
The Group engages in regular, effective and fair communication with its shareholders through the quarterly
release of the Group’s results, the timely release of material information through the SGXNET of SGX-ST and the
publication of the Annual Report. Shareholders and investors can also access information on the Company at its
website at www.pphg.com.
The Company also encourages greater shareholder participation at its annual general meetings and allows
shareholders the opportunity to communicate their views on various matters affecting the Company. The Articles
allow a shareholder of the Company to appoint up to two proxies to attend and vote in his or her place at general
meetings. The Chairpersons of the EXCO, NC, RC and AC, as well as senior management, are present and available
to address questions at general meetings. The external auditors are also present to address any shareholders’ queries
on the conduct of audit and the preparation of the Auditors’ Report.
The Board notes that there should be separate resolutions at general meetings on each substantially separate issue
and supports the Code’s principle as regards “bundling” of resolutions. In the event that there are resolutions which
are interlinked, the Board will explain the reasons and material implications.
In line with its communications with shareholders, as and when briefings on the Company’s performance and financial
results are conducted for analysts and the media, the Company will also disclose the presentation materials on
SGXNET.
DeAlings in securities
In line with Listing Rule 1207 (18) on Dealings in Securities, the Company issues annually, with such updates as may
be necessary from time to time, a circular to its Directors, officers and employees prohibiting dealings in listed
securities of the Group from two weeks to one month, as the case may be, before the announcement of the Group’s
quarterly and full-year financial results and ending on the date of announcement of the results, or at any time they
are in possession of unpublished material price sensitive information.
Directors and officers are required to comply with and observe the laws on insider trading even if they trade in the
Company’s securities outside the prohibited periods. They are discouraged from dealing in the Company’s securities
on short-term considerations and should be mindful of the law on insider trading.
AttenDAnce At boArD AnD boArD committee meetings
Name of Directors
PAN PACIFIC HOTELS GROUP LIMITED
Number of meetings attended in 2010
BOARD EXCO AC RC NC
Wee Cho Yaw 4 2 1 1
Gwee Lian Kheng 4 2
Alan Choe Fook Cheong 4 2 4 1 1
Lim Kee Ming 4 4 1 1
Wee Ee Chao 2 2
Low Weng Keong 3 3
Wee Wei Ling 4
James Koh Cher Siang 4
Wee Ee Lim 4
Amedeo Patrick Imbardelli 4
Number of meetings held in 2010 4 2 4 1 1
corporate governance report
For the year ended 31 december 2010
pArticulArs of Directors
name of Director/
Academic & professional
qualifications Age
board
committees as
chairman or
member
Directorship:
Date first
appointed
Date last
re-appointed/
re-elected
149
board
appointment
executive/
non-executive
independent/
non-independent
Wee Cho Yaw 81 EXCO – Chairman 25.05.1973 Non-executive
Chinese high school; Honorary RC – Member 21.04.2010 Non-independent
Doctor of Letters, National University NC – Member
of Singapore
Gwee Lian Kheng 70 EXCO – Member 20.01.1987 Executive
Bachelor of Accountancy (Hons), 28.04.2009 Non-independent
University of Singapore;
Fellow Member of Chartered
Institute of Management Accountants,
Association of Chartered
Certified Accountants and
Institute of Certified Public
Accountants of Singapore
Alan Choe Fook Cheong 79 EXCO – Member 02.05.1990 Non-executive
Bachelor of Architecture, AC – Member 21.04.2010 Independent
University of Melbourne; RC – Member
Diploma in Town & Regional NC – Chairman
Planning, University
of Melbourne;
Fellowship Diploma,
Royal Melbourne Institute
of Technology;
Fellow of Singapore Institute of
Architects, Singapore Institute of
Planners, and Royal Australian
Institute of Architects;
Member of Royal
Institute of British Architects,
Royal Town Planning Institute,
Royal Australian Planning
Institute and American
Planning Association
Lim Kee Ming (who retires on 19 April 2011) 83 AC – Chairman 01.06.1995 Non-executive
Master of Science (International RC – Chairman 21.04.2010 Independent
Trade & Finance) Columbia NC – Member
University, New York;
Bachelor of Science
(Business Administration)
New York University, USA
Degree of Doctor of the
University of Adelaide honoris causa
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corporate governance report
For the year ended 31 december 2010
pArticulArs of Directors (continueD)
name of Director/
Academic & professional
qualifications Age
PAN PACIFIC HOTELS GROUP LIMITED
board
committees as
chairman or
member
Directorship:
Date first
appointed
Date last
re-appointed/
re-elected
board
appointment
executive/
non-executive
independent/
non-independent
Wee Ee Chao 56 EXCO – Member 09.05.2006 Non-executive
Bachelor of Business Administration, 21.04.2010 Non-independent
The American University,
Washington DC, USA
Low Weng Keong 58 AC – Member 23.11.2005 Non-executive
Fellow of CPA Australia, Institute 23.04.2008 Independent
of Chartered Accountants in
England & Wales and Institute
of Certified Public Accountants
of Singapore;
Associate Member of Chartered
Institute of Taxation (UK)
Wee Wei Ling 58 Nil 24.03.1994 Executive
Bachelor of Arts, Nanyang University 28.04.2009 Non-independent
James Koh Cher Siang 64 Nil 23.11.2005 Non-executive
Bachelor of Arts (Hons) in Philosophy, 23.04.2008 Independent
Political Science and Economics;
Master of Arts from
University of Oxford, UK;
Master in Public Administration,
Harvard University, USA
Wee Ee Lim 49 Nil 09.05.2006 Non-executive
Bachelor of Arts (Economics), 21.04.2010 Non-independent
Clark University, USA
Amedeo Patrick Imbardelli 50 Nil 21.04.2010 Executive
Master of Science (Honours) in Finance, Non-independent
The City University of New York, USA;
Fellow of the American Academy of
Financial Management, USA
Notes :
1) Directors’ shareholdings in the Company and related corporations, please refer to pages 66 and 67.
2) Directorships or Chairmanships in other listed companies and other major appointments, both present and over the preceding 3 years, please refer to
pages 12 to 15.
corporate governance report
For the year ended 31 december 2010
remunerAtion report
REMUNERATION OF DIRECTORS
The following table shows a breakdown (in percentage terms) of the remuneration of Directors for the year ended
31 December 2010 :
remuneration bands
salary
%
bonuses
%
Directors’
fees
%
share
option
grant a
%
Defined
contribution
plans
%
others
%
total
remuneration
%
151
share
option
grants b
number
$1,750,000 to
$2,000,000
Amedeo Patrick
Imbardelli (1) 48 22 3 2 5 20 100 34,000
$250,000 to $500,000
Wee Wei Ling c (2) 64 16 10 1 9 100 –
Below $250,000
Wee Cho Yaw, Chairman – 100 – – 100 –
Gwee Lian Kheng (3) – 100 – – 100 –
Alan Choe Fook Cheong – 100 – – 100 –
Lim Kee Ming – 100 – – 100 –
Wee Ee Chao – 100 – – 100 –
Low Weng Keong – 100 – – 100 –
James Koh Cher Siang – 100 – – 100 –
Wee Ee Lim – 100 – – 100 –
a Fair value of share options is estimated using the Trinomial Tree model at date of grant.
b Refers to options granted on 5 March 2010 under the UOL 2000 Share Option Scheme to subscribe for ordinary shares in the capital of the holding
company, UOL Group Limited (“UOL”). The options may be exercised at any time during the option period from 5 March 2011 to 4 March 2020 at the
offer price of S$3.95 per ordinary share.
c Wee Wei Ling is the daughter of Wee Cho Yaw and sister of Wee Ee Chao and Wee Ee Lim.
(1) Amedeo Patrick Imbardelli, an executive director of the Company, has an employment contract with the Company
which may be terminated by either party giving three months’ notice. His remuneration package includes a
performance bonus of a minimum of three months base salary subject to the achievement of key performance
indicators and financial targets set by the Company.
(2) Wee Wei Ling, an executive director of the Company, has an employment contract with the Company which may
be terminated by either party giving two months’ notice. Her remuneration package includes a variable bonus
element (which is substantially linked to the performance of the Company).
(3) Gwee Lian Kheng, another executive director of the Company, has an employment contract with UOL.
REMUNERATION OF KEY EMPLOYEES
The remuneration 1 of the top five key employees of the Group (who are not directors) is analysed into the respective
remuneration bands as follows :
$500,000 to $750,000
Senior Vice President, Hotel Operations (Joined on 16 March 2010)
Senior Vice President, Growth & Development
Senior Vice President, Marketing & Sales
$250,000 to $500,000
Chief Financial Officer
Senior Vice President, Human Capital & Development
1 Included in the remuneration is the value of share options granted during the year (if any) under the UOL 2000 Share Option Scheme. Fair value of share
options is estimated using the Trinomial Tree model.
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interested person transactions
name of interested person
PAN PACIFIC HOTELS GROUP LIMITED
Aggregate value of all
interested person transactions
during the financial year under
review (excluding transactions Aggregate value of all
less than $100,000 and interested person transactions
transactions conducted conducted under shareholders’
under shareholders’ mandate mandate pursuant to rule 920
pursuant to rule 920 of the (excluding transactions less
listing manual)
than $100,000)
$’000 $’000
UOL Group Limited (“UOL”)
Advance to UOL – 49,630
Interest received on advance to UOL – 1,185
Management and corporate support services
provided to the Pan Pacific Hotels Group
by UOL
– Share of payroll – 2,297
– Administrative fee – 81
UOL Claymore Investment Pte. Ltd.*
Fees received for the franchise of hotel – 809
UOL Somerset Investments Pte. Ltd.*
Fees received for the management of
serviced suites – 900
Hua Ye xiamen Hotel Limited*
Fees received for the management of hotel – 748
UOL Serviced Residences Sdn Bhd*
Fees received for the management of
serviced suites – 64
Hotel Marina City Pte Ltd**
Fees received for the management of hotel – 6,782
* These companies are subsidiaries of UOL, a controlling shareholder.
** This is an associated company of UOL.
shareholdings statistics
As at 2 March 2011
size of shAreholDings
range no. of shareholders % no. of shares %
1 - 999 46 0.67 11,884 0.00
1,000 - 10,000 6,043 87.80 18,390,003 3.06
10,001 - 1,000,000 782 11.36 33,942,049 5.66
1,000,001 and above 12 0.17 547,656,064 91.28
total 6,883 100.00 600,000,000 100.00
locAtion of shAreholDers
country no. of shareholders % no. of shares %
Singapore 6,766 98.30 597,736,484 99.62
Malaysia 67 0.97 576,501 0.10
Others 50 0.73 1,687,015 0.28
total 6,883 100.00 600,000,000 100.00
tWentY lArgest shAreholDers
no. name no. of shares %
1 UOL Group Limited 435,000,000 72.50
2 UOB Kay Hian Pte Ltd 55,447,652 9.24
3 Tye Hua Nominees (Pte) Ltd 38,380,000 6.40
4 United Overseas Bank Nominees Pte Ltd 3,845,659 0.64
5 Citibank Nominees Singapore Pte Ltd 3,751,500 0.63
6 DBS Nominees Pte Ltd 3,368,403 0.56
7 HSBC (Singapore) Nominees Pte Ltd 1,810,500 0.30
8 Morph Investments Ltd 1,454,000 0.24
9 OCBC Nominees Singapore Pte Ltd 1,430,350 0.24
10 Kor Beng Shien 1,118,000 0.19
11 Oversea-Chinese Bank Nominees Pte Ltd 1,030,000 0.17
12 Ong Kian Kok 1,020,000 0.17
13 Morgan Stanley Asia (Singapore) Securities Pte Ltd 1,000,000 0.17
14 Phillip Securities Pte Ltd 918,000 0.15
15 Citibank Consumer Nominees Pte Ltd 837,000 0.14
16 Kim Eng Securities Pte. Ltd. 802,000 0.13
17 Teo Kok Kheng 800,000 0.13
18 Ng Soo Giap 586,000 0.10
19 Wee Aik Koon Pte Ltd 580,000 0.10
20 Goh Geok Ling 513,000 0.09
Total 553,692,064 92.29
Based on information available to the Company as at 2 March 2011, approximately 11.8% of the issued shares of the
Company is held by the public and therefore, Rule 723 of the SGX-ST Listing Manual is complied with.
Substantial Shareholders as shown in the Register of Substantial Shareholders
no. of shares fully paid
name Direct interest Deemed interest total % 1
UOL Group Limited (“UOL”) 489,440,652 2 – 489,440,652 81.57
Wee Cho Yaw – 489,440,652 3 489,440,652 81.57
United Overseas Bank Limited 4 – 38,380,000 38,380,000 6.40
Notes
1 As a percentage of the issued share capital of the Company, comprising 600,000,000 shares.
2 Includes 54,440,652 shares held in the name of UOB Kay Hian Pte Ltd (“UOB Kay Hian”).
3 Dr Wee is deemed to have an interest in the 435,000,000 shares held by UOL and 54,440,652 shares held by UOB Kay Hian for the benefit of UOL.
4 Held in the name of Tye Hua Nominees (Pte) Ltd.
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share price and turnover
For the period from 1 January 2006 to 31 December 2010
3.0
2.5
2.0
1.5
1.0
0.5
0.0
15
12
9
6
3
0
share price ($)
1.170
1.160
1.380
1.280 1.390
1.310
1.060
1.120
1.150
PAN PACIFIC HOTELS GROUP LIMITED
HigH
Prices
Low
HigH
Low
2010 Prices
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUg
SEP
oCT
NoV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUg
SEP
oCT
NoV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUg
SEP
oCT
NoV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUg
SEP
oCT
NoV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUg
SEP
oCT
NoV
DEC
turnover (million)
JAN
FEB
MAR
APR
MAY
1.240
1.260
1.210
1.130
1.110
1.180
1.170
1.200
1.320
1.330
1.520
1.490
1.590
1.650
1.440
1.450
1.530
1.630
2.020
2.340
2.300 2.600
2.570
2.380
2.350
2.170
2.200
2.240
2.130
1.910
1.990
2.010
2.100
1.780
2.040
2.100
1.840
1.780
1.870
1.910
2.020
1.800
1.690
1.620
1.730
1.810
1.890
1.830
1.950
1.930
2006 2007 2008 2009 2010
JUN
JUL
AUg
SEP
oCT
NoV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUg
SEP
oCT
NoV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUg
SEP
oCT
NoV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUg
SEP
oCT
NoV
2006 2007 2008 2009
1.690
1.680
1.560
1.600
1.460
1.360
1.390
1.300
1.320
1.290
1.090
1.230
1.180
1.160
1.010
1.100
1.030
1.040
0.970
0.960
0.900
0.900
0.890
0.905 1.190
1.180 1.460
1.440 1.480
1.390
1.500
1.300 1.420
1.340 1.470
1.450 1.600
1.630
DEC
1.590
1.590
1.610
1.500
1.480
1.530
1.510
JAN
FEB
MAR
APR
MAY
1.410 1.550
1.540 1.590
1.570 1.620
1.580 1.610
1.600 1.670
1.620 1.690
1.610 1.660
1.570 1.610
Turnover
2010 Turnover
JUN
JUL
AUg
SEP
oCT
NoV
DEC
2010
notice oF annual general meeting
Notice is hereby given that the 42nd Annual General Meeting of the Company will be held at Pan Pacific Singapore,
Ocean 1-3, Level 2, 7 Raffles Boulevard, Marina Square, Singapore 039595, on Tuesday, 19 April 2011, at 3.00 p.m. to
transact the following business:
As orDinArY business
Resolution 1 To receive and adopt the Audited Financial Statements and the Reports of the Directors and the
Auditors for the year ended 31 December 2010.
Resolution 2 To declare a first and final tax exempt (one-tier) dividend of 4 cents per ordinary share for the
year ended 31 December 2010.
Resolution 3 To approve Directors’ fees of S$472,500 for 2010 (2009: S$457,500).
Resolution 4 To re-appoint Dr Wee Cho Yaw, pursuant to Section 153(6) of the Companies Act, Cap. 50,
as Director of the Company to hold such office until the next Annual General Meeting of the
Company.
Resolution 5 To re-appoint Mr Alan Choe Fook Cheong, pursuant to Section 153(6) of the Companies Act,
Cap. 50, as Director of the Company to hold such office until the next Annual General Meeting
of the Company.
Resolution 6 To re-appoint Mr Gwee Lian Kheng, who attains the age of 70 years, pursuant to Section 153(6)
of the Companies Act, Cap. 50, as Director of the Company to hold such office until the next
Annual General Meeting of the Company.
Resolution 7 To re-elect Mr Low Weng Keong, who retires by rotation pursuant to Article 94 of the Company’s
Articles of Association, as Director of the Company.
Resolution 8 To re-elect Mr James Koh Cher Siang, who retires by rotation pursuant to Article 94 of the
Company’s Articles of Association, as Director of the Company.
Resolution 9 To re-appoint Messrs PricewaterhouseCoopers LLP as Auditors of the Company and authorise
the Directors to fix their remuneration.
As speciAl business
To consider and, if thought fit, to pass with or without amendments, the following resolutions as Ordinary Resolutions:
Resolution 10 “That authority be and is hereby given to the Directors of the Company to:
(a) (i) issue shares in the capital of the Company (“shares”) whether by way of rights,
bonus or otherwise; and/or
(ii) make or grant offers, agreements or options (collectively, “Instruments”) that might
or would require shares to be issued, including but not limited to the creation
and issue of (as well as adjustments to) warrants, debentures or other instruments
convertible into shares;
at any time and upon such terms and conditions and for such purposes and to such
persons as the Directors may in their absolute discretion deem fit; and
(b) (notwithstanding the authority conferred by this Resolution may have ceased to be in
force) issue shares in pursuance of any Instrument made or granted by the Directors
while this Resolution was in force,
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ANNUAL REPORT 2010

156
notice oF annual general meeting
Resolution 11 “That:
provided that:
PAN PACIFIC HOTELS GROUP LIMITED
(1) the aggregate number of shares to be issued pursuant to this Resolution (including
shares to be issued in pursuance of Instruments made or granted pursuant to this
Resolution) does not exceed fifty per cent (50%) of the total number of issued shares
(excluding treasury shares) in the capital of the Company (as calculated in accordance
with paragraph (2) below), of which the aggregate number of shares to be issued other
than on a pro rata basis to shareholders of the Company (including shares to be issued in
pursuance of Instruments made or granted pursuant to this Resolution) does not exceed
twenty per cent (20%) of the total number of issued shares (excluding treasury shares) in
the capital of the Company (as calculated in accordance with paragraph (2) below);
(2) (subject to such manner of calculation as may be prescribed by the Singapore Exchange
Securities Trading Limited (“SGX-ST”)) for the purpose of determining the aggregate
number of shares that may be issued under paragraph (1) above, the percentage of
issued shares shall be based on the total number of issued shares (excluding treasury
shares) in the capital of the Company at the time this Resolution is passed, after
adjusting for:
(i) new shares arising from the conversion or exercise of any convertible securities or
share options or vesting of share awards which are outstanding or subsisting at
the time this Resolution is passed; and
(ii) any subsequent consolidation or subdivision of shares;
(3) in exercising the authority conferred by this Resolution, the Company shall comply with
the provisions of the Listing Manual of the SGX-ST for the time being in force (unless
such compliance has been waived by the SGX-ST) and the Articles of Association for the
time being of the Company; and
(4) (unless revoked or varied by the Company in general meeting) the authority conferred
by this Resolution shall continue in force until the conclusion of the next Annual General
Meeting of the Company or the date by which the next Annual General Meeting of the
Company is required by law to be held, whichever is the earlier.”
(1) approval be and is hereby given for the purposes of Chapter 9 of the Listing Manual
(the “Listing Manual”) of the SGX-ST for the Company and its entities at risk (as defined
in Chapter 9 of the Listing Manual) or any of them to enter into any of the transactions
falling within the types of interested person transactions set out in the Appendix to the
Company’s Letter to Shareholders dated 28 March 2011 (the “Letter”), with any party
who is of the classes of interested persons described in the Letter, provided that such
interested person transactions are carried out on normal commercial terms and will not
be prejudicial to the interests of the Company and its minority Shareholders and are
carried out in accordance with the review procedures for interested persons transactions
as set out in the Appendix to the Letter (the “Shareholders’ IPT Mandate”);
(2) the Shareholders’ IPT Mandate shall, unless revoked or varied by the Company in general
meeting, continue in force until the conclusion of the next Annual General Meeting of the
Company or until the date on which the next Annual General Meeting of the Company
is required by law to be held, whichever is the earlier;
(3) the Audit Committee of the Company be and is hereby authorised to take such action
as it deems proper in respect of the procedures and/or to modify or implement such
procedures as may be necessary to take into consideration any amendment to Chapter
9 of the Listing Manual which may be prescribed by the SGX-ST from time to time; and
notice oF annual general meeting
BY ORDER OF THE BOARD
Foo Thiam Fong Wellington
Yeong Sien Seu
Secretaries
Singapore, 28 March 2011
(4) the Directors of the Company and each of them be hereby authorised to complete and
do all such acts and things (including executing all such documents as may be required)
as they or he may consider expedient or necessary or in the interests of the Company to
give effect to the Shareholders’ IPT Mandate and/or this Resolution.”
157
ANNUAL REPORT 2010

158
notice oF annual general meeting
notes
A member entitled to attend and vote at the Meeting is entitled to appoint not more than two proxies to attend and
vote in his stead. A proxy need not be a member of the Company.
The instrument appointing a proxy must be deposited at the Registered Office of the Company at 101 Thomson
Road, #33-00 United Square, Singapore 307591 not less than 48 hours before the time for holding the Meeting.
notes to resolutions
1. In relation to Resolution 4, Dr Wee Cho Yaw will, upon re-appointment, continue as the Chairman of the
Board of Directors and the Executive Committee, and as a member of the Remuneration and Nominating
Committees. He is considered a non-independent director.
2. In relation to Resolution 5, Mr Alan Choe Fook Cheong will, upon re-appointment, continue as the Chairman
of the Nominating Committee and as a member of the Executive, Audit and Remuneration Committees. He
is considered an independent director.
3. In relation to Resolution 6, Mr Gwee Lian Kheng will, upon re-appointment, continue as a Member of the
Executive Committee. He is considered a non-independent director.
Note: Dr Lim Kee Ming who retires at the conclusion of this AGM pursuant to Section 153(6) of the Companies
Act, Cap. 50, and although eligible, has indicated that he is not offering himself for re-appointment. Dr Lim
Kee Ming will step down as the Chairman of the Audit and Remuneration Committees, and as a member of
the Nominating Committee.
4. In relation to Resolution 7, Mr Low Weng Keong will, upon re-election, continue as a Member of the Audit
Committee. He is considered an independent director.
5. In relation to Resolution 8, Mr James Koh Cher Siang is considered an independent director.
6. Resolution 10 is to empower the Directors from the date of that meeting until the next Annual General
Meeting to issue, or agree to issue shares and/or grant instruments that might require shares to be issued,
up to an amount not exceeding fifty per cent (50%) of the total number of issued shares (excluding treasury
shares) in the capital of the Company (calculated as described) of which the total number of shares to be
issued other than on a pro rata basis to shareholders of the Company does not exceed twenty per cent (20%)
of the total number of issued shares (excluding treasury shares) in the capital of the Company (calculated as
described).
7. Resolution 11 is to renew the Shareholders’ IPT Mandate to allow the Company and its entities at risk (as
defined in Chapter 9 of the Listing Manual) or any of them to enter into any of the transactions falling within
the types of interested person transactions set out in the Appendix to the Letter.
PAN PACIFIC HOTELS GROUP LIMITED
proXy Form
Annual General Meeting
pAn pAcific hotels group limiteD
(Incorporated in the Republic of Singapore)
(Company Registration No. 196800248D)
I/We, (Name)
of
being a member/members of PAN PACIFIC HOTELS GROUP LIMITED (the “Company”), hereby appoint:
(Address)
Name NRIC/Passport No. Proportion of Shareholdings
Address
and/or (delete as appropriate)
No. of Shares %
Name NRIC/Passport No. Proportion of Shareholdings
Address
No. of Shares %
or failing him/her, the Chairman of the Meeting as my/our proxy/proxies to attend and vote for me/us on my/our
behalf and, if necessary, to demand a poll, at the 42nd Annual General Meeting of the Company (the “AGM”) to be
held at Pan Pacific Singapore, Ocean 1-3, Level 2, 7 Raffles Boulevard, Marina Square, Singapore 039595 on Tuesday,
19 April 2011 at 3.00 p.m. and at any adjournment thereof. I/We direct my/our proxy/proxies to vote for or against the
Resolutions to be proposed at the AGM as indicated below. If no specific direction as to voting is given, the proxy/
proxies will vote or abstain from voting at his/their discretion, as he/they will on any other matter arising at the AGM.
The authority herein includes the right to demand or to join in demanding a poll and to vote on a poll.
No. Resolutions To be used on a show of hands To be used in the event of a poll
Ordinary Business
1 Adoption of Financial Statements and
Reports of the Directors and the Auditors
2 Declaration of First and Final Dividend
3 Approval of Directors’ Fees
4 Re-appointment (Dr Wee Cho Yaw)
5 Re-appointment (Mr Alan Choe Fook Cheong)
6 Re-appointment (Mr Gwee Lian Kheng)
7 Re-election (Mr Low Weng Keong)
8 Re-election (Mr James Koh Cher Siang)
9 Re-appointment of PricewaterhouseCoopers
LLP as Auditors
Special Business
10 Authority for Directors to Issue Shares
11 Renewal of Shareholders’ IPT Mandate
For* Against*
No. of Votes
For**
No. of Votes
Against**
* Please indicate your vote “For” or “Against” with a tick within the box provided.
** If you wish to exercise all your votes “For” or “Against”, please tick within the box provided. Otherwise, please
indicate the number of votes as appropriate.
Dated this day of 2011
Signature(s) or Common Seal of Member(s)
IMPORTANT: PLEASE READ NOTES ON THE REVERSE
IMPORTANT: FOR CPF INVESTORS ONLY
1. For investors who have used their CPF monies to buy Pan Pacific Hotels Group
Limited’s shares, this Report is sent to them at the request of the CPF Approved
Nominee and is sent solely FOR INFORMATION ONLY.
2. This Proxy Form is not valid for use by CPF Investors and shall be ineffective for all
intents and purposes if used or purported to be used by them.
3. CPF investors who wish to attend the Meeting as OBSERVERS have to submit
their requests through their respective Agent Banks so that their Agent Banks may
register with the Company’s Registrar (Please see Note. 9 on the reverse).
Shares in: Total No. of Shares Held
(a) Depository Register
(b) Register of Members

Notes :
1. Save for members which are nominee companies, a member of the Company entitled to attend and vote at the AGM is entitled to appoint not more than two proxies
to attend and vote in his/her stead. A proxy need not be a member of the Company. Where a member appoints two proxies, the appointments shall be invalid unless
he/she specifies the proportion of his/her shareholdings (expressed as a percentage of the whole) to be represented by each proxy.
2. This instrument of proxy must be signed by the appointor or his/her duly authorised attorney or, if the appointor is a body corporate, signed by its duly authorised
officer or attorney or executed under its common seal.
3. A body corporate which is a member may also appoint by resolution of its directors or other governing body, an authorised representative or representatives in accordance
with its Articles of Association and Section 179 of the Companies Act, Chapter 50 of Singapore, to attend and vote on behalf of such body corporate.
4. Please insert the total number of shares held by you. If you have Shares entered against your name in the Depository Register (as defined in Section 130A of the
Companies Act, Chapter 50 of Singapore), you should insert that number of Shares. If you have Shares registered in your name in the Register of Members, you should
insert that number of Shares. If you have Shares entered against your name in the Depository Register and Shares registered in your name in the Register of Members,
you should insert the aggregate number of Shares entered against your name in the Depository Register and registered in your name in the Register of Members. If no
number is inserted, the instrument appointing a proxy or proxies shall be deemed to relate to all the Shares held by you.
5. Completion and return of this instrument appointing a proxy shall not preclude a member from attending and voting at the AGM. Any appointment of a proxy or proxies
shall be deemed to be revoked if a member attends the AGM in person, and in such event, the Company reserves the right to refuse to admit any person or persons
appointed under this instrument of proxy, to the AGM.
6. This instrument appointing a proxy or proxies (together with the power of attorney (if any) under which it is signed or a certified copy thereof) must be deposited at the
registered office of the Company at 101 Thomson Road, #33-00 United Square, Singapore 307591, not less than 48 hours before the time fixed for holding the AGM.
7. Any alteration made in this form must be initialed by the person who signs it.
8. The Company shall be entitled to reject this instrument of proxy if it is incomplete, improperly completed or illegible or where the true intentions of the appointor are
not ascertainable from the instructions of the appointor specified in this instrument of proxy. In addition, in the case of a member whose Shares are entered against his/
her name in the Depository Register, the Company shall be entitled to reject any instrument of proxy lodged if such member, being the appointor, is not shown to have
Shares entered against his/her name in the Depository Register as at 48 hours before the time appointed for holding the AGM, as certified by The Central Depository
(Pte) Limited to the Company.
9. Agent Banks acting on the request of the CPF Investors who wish to attend the AGM as Observers are requested to submit in writing, a list with details of the investors’
names, NRIC/passport numbers, addresses and number of shares held. The list, signed by an authorised signatory of the Agent Bank, should reach the Company’s
Registrar, Boardroom Corporate & Advisory Services Pte. Ltd. at 50 Raffles Place, Singapore Land Tower, #32-01, Singapore 048623, at least 48 hours before the time
fixed for holding the AGM.
1st fold here
PROxy FORM
2nd fold here
3rd fold here and seal
The Company Secretary
Pan Pacific Hotels GrouP limited
101 THOMSON ROAD
#33-00 UNITED SQUARE
Singapore 307591
Please affix
postage
stamp
Corporate
InformatIon
BoarD of DIreCtorS
Chairman
Dr Wee Cho Yaw
Group Chief Executive
mr Gwee Lian Kheng
mr alan Choe fook Cheong
Dr Lim Kee ming
mr Wee ee Chao
mr Low Weng Keong
ms Wee Wei Ling
mr James Koh Cher Siang
mr Wee ee Lim
mr amedeo patrick Imbardelli
eXeCUtIVe CommIttee
Chairman
Dr Wee Cho Yaw
mr Gwee Lian Kheng
mr alan Choe fook Cheong
mr Wee ee Chao
aUDIt CommIttee
Chairman
Dr Lim Kee ming
mr alan Choe fook Cheong
mr Low Weng Keong
nomInatInG CommIttee
Chairman
mr alan Choe fook Cheong
Dr Wee Cho Yaw
Dr Lim Kee ming
remUneratIon
CommIttee
Chairman
Dr Lim Kee ming
Dr Wee Cho Yaw
mr alan Choe fook Cheong
This report is printed on recycled paper.
manaGement
Group Chief Executive
mr Gwee Lian Kheng
President &
Chief Executive Officer
mr amedeo patrick
Imbardelli
Executive Director,
Asset Management
ms Wee Wei Ling
Company Secretary
mr foo thiam fong
Wellington
Chief Financial Officer
mr neo Soon Hup
Senior Vice President,
Marketing & Sales
mr Kevin Croley
Senior Vice President,
Hotel Operations
mr Dean Schreiber
Senior Vice President,
Growth & Development
mr eric Levy
Senior Vice President,
Human Capital & Development
mrs melody King
InternaL aUDIt
Deputy General Manager,
Internal Audit
mr Yeo Bin Hong
CompanY SeCretarIeS
mr foo thiam fong
Wellington
mr Yeong Sien Seu
GeneraL CoUnSeL
mr Yeong Sien Seu
aUDItorS
pricewaterhouseCoopers LLp
8 Cross Street, #17-00
PWC Building
Singapore 048424
partner-In-CHarGe:
mr Sim Hwee Cher
Year of appointment: 2008
prInCIpaL BanKerS
United overseas Bank Limited
far eastern Bank Limited
public Bank Berhad
malayan Banking Berhad
australia and new Zealand
Banking Group Limited
reGIStereD offICe
101 Thomson Road
#33-00 United Square
Singapore 307591
t (65) 6255 0233
f (65) 6252 9822
prInCIpaL pLaCe
of BUSIneSS
238A Thomson Road
#08-00 Novena Square
Office Tower A
Singapore 307684
t (65) 6808 1180
f (65) 6821 8001
W pphg.com
SHare reGIStrar
Boardroom Corporate &
advisory Services pte. Ltd.
50 Raffles Place, #32-01
Singapore Land Tower
Singapore 048623
t (65) 6536 5355
f (65) 6536 1360

Pan PaCiFiC HOteLs GrOUP LiMited
Company Registration No. 196800248D
reGistered OFFiCe
101 Thomson Road #33-00 United Square
Singapore 307591
T (65) 6255 0233 F (65) 6252 9822
PrinCiPaL PLaCe OF BUsiness
238A Thomson Road #08-00 Novena Square
office Tower A, Singapore 307684
T (65) 6808 1180 F (65) 6821 8001
pphg.com