Hotels13in Asia PacificOWNED AND MANAGED

Hotels10UNDER DEVELOPMENT

Annual Report 2012 / The Wharf (Holdings) LimitedAnnual Report 2012 / The Wharf (Holdings) Limited 6160

Marco Polo HotelsThe Group currently operates 13 owned or managed hotels in the Asia Pacific region. Among them, the three in Harbour City, Hong Kong commands a spectacular Victoria Harbour view while the one in Wuhan is on the bund and overlooks the Yangtze River.

The Marco Polo Lingnan Tiandi in Foshan and Marco Polo Suzhou were added to the portfolio in 2012. A pipeline of 10 new hotels in the cities of Changsha, Changzhou, Chengdu, Chongqing, Guiyang, Suzhou, Tianjin and Wuxi in the Mainland, as well as Manila in the Philippines and Bangkok in Thailand will strengthen our hotel network upon their completion over the next five years.

In particular, six of the new hotels owned by the Group will be coming on stream and bring new attraction to the respective cities, among them, four being sky hotels, three are part of the Group's multi-use retail-office complexes; these hotels would take us to the next level of services and hospitality. The remaining hotel is a part of a State Guest House complex with vast garden space for major events and weddings.

The Gateway Hotel in Harbour City has been renovated. The new exciting lobby and the roof deck on the third floor which is ideal for alfresco dining and entertainment are attractive features that helped create a fresh oasis for guests and shoppers in the city on Canton Road.

A solid portfolio of its 10 owned hotels exceeding HK$10 billion will form the core platform of an expanding hotel network outside of Hong Kong over the next five years.

All Marco Polo hotels performed strongly in their respective locations. Total revenue for the hotels and club grew by 9% to HK$1,391 million. Operating profit increased by 5% to HK$391 million. Consolidated occupancy of the three Marco Polo hotels in Hong Kong was maintained at 85%, with an increase of 8% in average room rates. Marco Polo Wuhan On the Bund continued to achieve a dominant market position in the local market. The unrivaled positions of our hotels in Wuhan and Xiamen helped house coveted brands like Louis Vuitton in their lobbies. The new Marco Polo hotels in Foshan and Suzhou have met with a favourable initial response.

Grand Ballroom, Marco Polo Chongqing (under planning)

Annual Report 2012 / The Wharf (Holdings) LimitedAnnual Report 2012 / The Wharf (Holdings) Limited 6362

Business Review

Marco Polo Hotels

Six of the new hotels owned by the Group will be coming on stream and bring new attraction to the respective cities

The hotel group is poised for growth with a management change in mid 2012. Mr Eric Waldburger, a seasoned hotelier who formerly held management positions in various international hotel groups such as the Peninsula Group became President of Marco Polo Hotels. Mr Steve Kleinschmidt, the former president, has taken on a new role as Vice Chairman, providing good continuity after his five-year tenure as President.

Marco Polo Hotels is a member of Global Hotel Alliance, the world's largest alliance of independent hotel brands encompassing over 320 upscale and luxury hotels with over 75,000 rooms across 57 countries.

Marco Polo Hotels’ Network (existing)

Hong Kong Marco Polo Hongkong HotelGateway, Hong KongPrince, Hong Kong

China Marco Polo Parkside, BeijingMarco Polo Lingnan Tiandi, FoshanMarco Polo JinjiangMarco Polo ShenzhenMarco Polo SuzhouMarco Polo XiamenMarco Polo Wuhan

The Philippines Marco Polo DavaoMarco Polo Plaza, Cebu

Thailand The Panwa Beach Resort, Phuket