On behalf of the Board of Directors of the H-REIT Manager and the HBT Trustee-Manager (collectively the "Managers"), I am pleased to present our Annual Report for the financial year ended 31 December 2024 ("FY 2024").

RESILIENT PERFORMANCE

In a year marked by persistent inflation, elevated interest rates and heightened geopolitical uncertainties, CDL Hospitality Trusts demonstrated resilience by delivering stable performance amid macroeconomic headwinds. Normalisation of demand across some markets was observable after a period of extraordinary post-pandemic growth. Against this backdrop, it was encouraging that RevPAR growth was achieved in most of the portfolio markets with the exception of Singapore and New Zealand. Net property income ("NPI") declined by 2.2% (or S$3.1 million) yoy to S$135.2 million for the year.

Total distribution for FY 2024 declined to S$66.9 million, representing a 5.8% yoy decrease. This was partly due to The Castings (newly opened residential Build-to-Rent (BTR) asset) still being in its gestation phase, which resulted in its NPI contribution being insufficient to compensate for the one-off pre-opening expenses and associated interest costs. Additionally, the overall decline in NPI and higher interest cost across the rest of the portfolio, as well as the absence of a one-off liquidation proceeds of S$0.9 million from an Australian subsidiary, contributed to the decrease. Consequently, the distribution per stapled security fell 6.7% yoy to 5.32 cents for FY 2024. Excluding the one-off liquidation proceeds recognised in FY 2023, the yoy reduction in Distribution per Stapled Security ("DPS") would have been 5.5%.

As at 31 December 2024, total portfolio value increased by 4.6% (S$146.3 million) yoy to S$3.3 billion. On a same store basis, excluding new acquisitions - Hotel Indigo Exeter and Benson Yard, the increase would have been 1.3% (S$42.2 million) yoy, mainly driven by the higher valuation of the UK, Japan and Australia portfolio.

PIVOTING FOR LONG-TERM GROWTH AND INCOME STABILITY

2024 marked a pivotal year of progress for CDLHT in the execution of the expanded mandate into living asset classes to secure stable, long-term growth. By complementing our core hotel portfolio with longer-stay accommodation assets, we have enhanced CDLHT's resilience and created additional avenues for value creation.

Despite broader economic headwinds, the UK real estate market has shown resilience: capital values have largely stabilised and the living asset segment remains attractive. These macro conditions validate our strategic pivot.

The Castings, our residential BTR asset in Manchester, opened on 16 July 2024 and has ramped up quickly. The property achieved a commendable physical occupancy of 59.1% as at 31 December 2024 and is expected to stabilise by the third quarter of 2025.

On 19 December 2024, we made our second investment in the living asset class, by acquiring Benson Yard, a Purpose- Built Student Accommodation (PBSA) asset in Liverpool. Benson Yard was newly opened in February 2023 and stands out from the competition as a best-in-class PBSA. As at 31 December 2024, committed occupancy for the current Academic Year 2024/2025 stood at 95.5% with leasing for the next Academic Year 2025/2026 currently outpacing that of the previous year. Benson Yard is well positioned to benefit from the favourable UK and Liverpool PBSA demand and supply dynamics.

Our UK investments-in both the BTR and PBSA categories-have tapped into favourable long-term demographic trends, and we are confident they will deliver steady income growth as they ramp up to full occupancy. Notably, the addition of these longer-stay assets will enhance our income resilience, reinforcing the benefits of a diversified lodging portfolio.

In addition, on 6 November 2024, CDLHT further expanded its hotel footprint in the UK with the acquisition of Hotel Indigo Exeter and two retail units. The freehold hotel, which fully opened in October 2023, is newly converted featuring modern design elements and high-quality finishes. The hotel benefits from its excellent location, being in the heart of Exeter city centre and right next to the main retail high street. The hotel serves the wider South West England region and visitors to the University of Exeter.

The inorganic contribution from these three high-quality assets, which are virtually brand new-The Castings, Benson Yard and Hotel Indigo Exeter-is expected to support earnings in 2025.

MARKET REVIEW AND OUTLOOK

In our core market of Singapore, a robust event and concert calendar, coupled with the commencement of visa-free travel between China and Singapore, provided strong momentum in the early part of the year. As the market transitioned towards a more normalised demand environment following the sharp post-pandemic rebound, performance moderated in the second half. Consequently, the Singapore Hotels reported a 2.1% yoy decline in RevPAR for FY 2024. For context, this remained 15.4% above FY 2019 levels, reflecting the sector's continued strength relative to pre-pandemic benchmarks.

Singapore's tourism sector continued on a steady recovery trajectory in 2024, welcoming 16.5 million visitors- equivalent to 86.5% of the peak pre-pandemic level in 2019⁽¹⁾. The growth in visitor arrivals contributed to a 14.0% yoy increase in visitor days⁽¹⁾. However, the expansion of new hotel supply, which rose nearly 5% over the past 18 months (as at 31 December 2024), absorbed the demand and heightened competition in the hospitality market. Key source markets-including China, Indonesia and India- have yet to fully rebound, with collective arrivals at 83.0% of 2019 levels⁽¹⁾. This presents further upside potential, which could serve as an additional catalyst for the sector's sustained recovery in the future, though the competitive environment may further intensify in 2025.

Looking ahead, Singapore's position as a premier global destination is set to be further reinforced by an expanding array of world-class attractions. Following the successful debut of the new Bird Paradise in 2023, the launch of Minion Land at Universal Studios Singapore-the first in Southeast Asia-and Rainforest Wild Asia, Singapore's fifth wildlife park, have enriched the city's family-friendly offerings. In 2025, the opening of the Singapore Oceanarium, three times the size of its predecessor, will further enhance its tourism landscape. Additionally, Disney Adventure, Walt Disney's first Asia-based cruise ship and its largest, with a capacity of 6,700 passengers, will be homeported in Singapore and is scheduled to set sail in December 2025.

These developments, coupled with a S$300 million boost to Singapore's Tourism Development Fund⁽²⁾, underscore the nation's proactive approach to sustaining its attractiveness as a key travel destination.

CDLHT is poised to strengthen its footprint in Singapore with the expected completion of the forward purchase of Moxy Singapore Clarke Quay in end 2026. By securing a stronger foothold in the lifestyle hotel segment, CDLHT will diversify its Singapore offerings and enhance its appeal to new customer segments. This 475-key lifestyle hotel will expand our Singapore portfolio to 3,030 rooms, further solidifying our presence in one of the world's most sought- after hospitality markets.

In New Zealand, Grand Millennium Auckland recorded a 5.9% lower RevPAR yoy for FY 2024, due to ongoing refurbishment works from April to November 2024. The Auckland hotel market remains in a prolonged recovery phase, adjusting to an influx of significant new supply in recent years while contending with a sluggish economy and uncertainty surrounding Chinese inbound tourism. In 2024, arrivals from China, the second largest pre-pandemic source market, stood at just 61.0% of 2019 arrival levels⁽³⁾.

In Australia, the Perth Hotels delivered a strong 9.4% yoy RevPAR growth in FY 2024, driven by occupancy gains due to a robust lineup of events in the city, particularly during the traditionally weaker winter months. Ongoing room renovations at Ibis Perth, which began in May 2024, took 14.9% of the hotel's inventory out of order during the year. Recovery momentum remains intact, with 2024 international arrivals at Perth Airport exceeding 2019 levels by 8.2%⁽⁴⁾. Further upside potential remains, as 2024 Chinese visitor arrivals-Australia's top pre-pandemic market-were still at only 62.0% of 2019 levels⁽⁵⁾, indicating room for additional growth.

In Japan, momentum continued in FY 2024, supported by substantial inbound travel demand, with visitor arrivals reaching 36.9 million, an increase of 47.1% yoy and surpassing 2019 arrivals by 15.6%⁽⁶⁾. The Japan Hotels achieved an impressive 20.8% yoy increase in RevPAR and registered their highest full-year average rate and RevPAR of ¥11,537 and ¥10,681 respectively, since their acquisition in 2014. Inbound travel to Japan is expected to reach new highs in 2025, supported by the country's popularity and the weak yen. CDLHT's Tokyo hotels are well-positioned to capitalise on the rising demand. Further, visitor numbers will continue to thrive as the Japanese government aims to attract 60 million visitors annually by 2030⁽⁷⁾.

In the Maldives, the two resorts collectively recorded a 4.3% yoy increase in RevPAR, largely supported by occupancy growth resulting from the yoy growth in tourist arrivals. However, the resorts' overall performance continues to face some headwinds due to the rising luxury resort supply and competition, coupled with the strong currency and increase in visitor taxes.

In the UK, Hilton Cambridge City Centre and The Lowry Hotel recorded a 3.9% yoy growth in RevPAR for FY 2024, primarily driven by improved corporate demand in Cambridge, which offset the shortfall in Manchester due to a weaker event calendar and the absence of several large non-repeat groups from 2023. Remarkably, Hilton Cambridge City Centre achieved record average rate and RevPAR since acquisition, at £187 and £142 respectively. The fixed rent from voco Manchester - City Centre, which follows an annual inflation-adjusted fixed rent structure, increased 4.5% to £2.65 million for the rental period from 7 May 2024 to 6 May 2025. Despite uncertainties in the UK economy, high-profile events like the Women's Rugby World Cup, with matches scheduled in Exeter and Manchester during August and September 2025, could benefit the UK hotels. Hotel Indigo Exeter, acquired in November 2024, will make its first full year NPI contribution in 2025.

In Munich, the recovery of corporate travel demand along with a healthier sporting and concert calendar, drove RevPAR up by 12.1% yoy. Notably, the FY 2024 RevPAR of €110 was the highest since the acquisition in 2017. International arrivals to Munich are anticipated to remain strong owing to a vibrant event calendar.

In Florence, Hotel Cerretani Firenze recorded a 5.1% improvement in RevPAR and achieved record full year average rate and RevPAR of €316 and €234 respectively since its acquisition. Following an exceptional period of growth, demand is expected to stabilise at a more normalised level in the near term.

The performance of our overseas portfolio hotels is expected to vary in the near term, as some markets have stabilised, while others are in the process of recovery.

VALUE CREATION THROUGH PROACTIVE ASSET ENHANCEMENTS

The Managers consistently assess CDLHT's portfolio to identify opportunities for asset optimisation and value creation. We pursue asset enhancement initiatives and actively manage lessees and operators to enhance the value and competitiveness of our assets, enabling CDLHT to harness the growth potential of the properties.

After almost a year, Ibis Perth has completed its extensive renovation, which included an upgrade of all 192 rooms, as well as the lobby, public areas, bar, restaurant and the addition of a new gym. With a more contemporary and lifestyle-orientated positioning, the hotel will be well- placed to attract higher-rated business and fully capitalise on its excellent central location.

Grand Millennium Auckland has completed the first phase of rooms refurbishment and has substantially finished renovation works at the atrium bar. These initiatives complement the previous enhancements to the ballroom, all-day dining restaurant and lobby lounge. Renovation works at the public areas and the second phase of rooms refurbishment, scheduled from April to November 2025, will boost the competitiveness of the asset ahead of the opening of the nearby New Zealand International Convention Centre in early 2026.

W Singapore - Sentosa Cove has embarked on a comprehensive renovation of all its rooms in February 2025, with completion slated for end November 2025. The renovation has been planned in phases to minimise disruption during peak demand periods. This room rejuvenation will reinforce the hotel's competitive position in the luxury lifestyle segment amid increasing competition and will complement enhancements made to the lobby, ballroom and restaurant in 2023.

PRUDENT CAPITAL MANAGEMENT

Maintaining a robust financial position remains a key priority for CDLHT, ensuring both stability and agility in navigating evolving market conditions. As at 31 December 2024, our gearing ratio stood at 40.7%⁽⁸⁾, with a debt headroom of S$610.1 million⁽⁹⁾.

In line with our commitment to sustainable financing, approximately S$310.8 million or 82% of maturing loans were refinanced as sustainability-linked loans in FY 2024, bringing our total sustainability-linked facilities to S$666.0 million at year-end. This reinforces the focus on responsible capital management while aligning the financing strategy with global sustainability goals.

Recognising the ongoing volatility in interest rates, four interest rate swaps were entered into during the year to hedge exposures on SGD and JPY borrowings. Additionally, our low fixed to floating borrowings profile positions us well to benefit from prospective interest rate declines in the near to medium term.

With a disciplined approach to capital management, CDLHT maintains a strong unencumbered asset position of 95.6% of property value, providing financial flexibility and enhances our ability to secure favourable financing terms. This prudent and forward-looking stance ensures that CDLHT remains well-positioned for sustainable growth, balancing risk management with the ability to capitalise on accretive acquisitions and portfolio-enhancing initiatives.

ADVANCING TOWARDS A SUSTAINABLE FUTURE

CDLHT continues to advance its sustainability agenda, reinforcing our commitment to responsible investing, governance excellence, and stakeholder engagement. In a significant step forward, we established the Board Sustainability Committee on 5 April 2024 to provide dedicated oversight and strategic direction for our ESG initiatives, ensuring sustainability remains embedded in our long-term business strategy.

On the governance front, we strengthened our leadership in corporate transparency, advancing 22 places to secure second place in the Singapore Governance and Transparency Index 2024 - REIT and Business Trust Category. This recognition underscores our commitment to best-in-class governance practices. Additionally, CDLHT was honoured with the Shareholder Communications Excellence Awards (REITs & Business Trusts Category) at the Securities Investors Association (Singapore) Investors' Choice Awards 2024, reflecting our continuous efforts to enhance transparency and investor engagement.

Further milestones and initiatives are detailed in the Board Statement within the Sustainability Report, highlighting our ongoing progress towards a resilient and sustainable future.

CONCLUDING REMARKS

Looking ahead, we remain focused on prudent capital management and disciplined growth amid elevated interest rates, geopolitical uncertainties, and economic volatility driven by tariff threats and trade tensions. While international travel continues to recover, hospitality growth is expected to moderate as post-pandemic pent-up demand stabilises.

CDLHT will continue to enhance its portfolio through asset rejuvenation, diversification into longer-stay lodging, and selective acquisitions, ensuring we remain well-positioned to navigate uncertainties and deliver long-term value to Stapled Security Holders.

APPRECIATION

On behalf of the Boards and management team, I extend my heartfelt gratitude to our Stapled Security Holders for their continued trust and support. I am also deeply appreciative of our stakeholders-including lessees, operators, business partners, and service providers worldwide-whose collaboration and expertise have been instrumental in CDLHT's continued success.

I would also like to thank my fellow members of the Boards for their insightful leadership, and the management team and staff of the Managers and the H-REIT Trustee for their commitment and invaluable contributions in steering CDLHT forward.

I look forward to engaging with our Stapled Security Holders at our Annual General Meetings on 24 April 2025.

Chan Soon Hee, Eric
Chairman
Dated as of 21 March 2025