Peppers Docklands, Melbourne

Mantra Group Overview

Mantra Group

Australian Market

Contents

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24

18

State of Market 8

Mantra Salt, Kingscliff

Peppers Noosa, Noosa

Mantra Group*

4

• Largest Australia-based hotel and resort operator

• 20,500+ rooms under management in 125+ properties

across Australia, New Zealand, Bali – Indonesia and

Hawaii

• Successfully listed on the Australian Securities

Exchange in June 2014

• Quality, diversified property portfolio with long tenure—

average remaining agreement tenure of 18 years

• 5,000+ employees

Operating segment

CBD 47%

Resorts 23%

Central distribution

30%

CBD - RevPAR (A$)

134 140 144 147 149 151

76.9% 78.7%

81.7%

84.1% 84.5% 85.9%

65%

70%

75%

80%

85%

90%

100

120

140

160

180

FY11 FY12 FY13 FY14 FY15 1H16

RevPAR % occupancy

Resorts – RevPAR (A$)

85 90

94 99

105

126 58.8%

62.5% 64.0%

65.6%

69.5%

75.3%

50%

55%

60%

65%

70%

75%

80%

70

85

100

115

130

FY11 FY12 FY13 FY14 FY15 1H16

RevPAR % occupancy

*Includes Ala Moana, Honolulu which settles in July 16

Peppers Soul, Surfers Paradise

Source: STR, December 2015

Supply & Demand % Change, December 2015 YTD

9

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

North America Central & SouthAmerica

Europe Middle East Africa Asia Australia &Oceania

Supply Demand

Source: 100 Years of Commercial Flight, IATA & Global Market Forecast, Flying by Numbers, 2015-2034 10

Source: UNWTO Tourism Highlights, 2015 Edition 11

Source: Global Market Forecast 2015 12

Source: Flight Centre, The Golden Age of Travel, 21 April 2015 13

Source: McKinsey Global Institute, Urban world: Cities and the rise of the consuming class, June 2012 14

Source: PWC, Australia’s Jobs Future 15

0

5

10

15

20

25

0

20

40

60

80

100

120

140

160

180

200

220

05A 07A 09A 11A 13A 15CL 17CL 19CL

Outbound tourists Growth (RHS) (%)

Cagr 15%

Cagr 11%

(m)

•

•Source: CLSA, ‘The next wave’, December 2014 16

Total of 528,094 rooms in the pipeline for the listed regions

Source: STR, April 2016

0 100,000 200,000 300,000

China | 316,915 | 60.0%

Indonesia | 60,717 | 11.5%

India | 46,700 | 8.8%

Malaysia | 29,680 | 5.6%

Australia | 22,116 | 4.2%

Thailand | 18,192 | 3.4%

South Korea | 10,832 | 2.1%

Vietnam | 16,751 | 3.2%

Singapore | 6,191 | 1.2%

17

Peppers Beach Club & Spa, Palm Cove

Source: Tourism Research Australia, Tourism Forecasts 2015 19

Source: ABS

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

10 Year International Short-term (less than one year)

International Arrivals

20

Source: Tourism Research Australia

21.00%

22.00%

23.00%

24.00%

25.00%

26.00%

10 Year - International Room Nights % for Hotel/Resort/Motel or Motor Inn

International

73.00%

74.00%

75.00%

76.00%

77.00%

78.00%

10 Year - Domestic Room Nights % for Hotel/Resort/Motel or Motor Inn

Domestic

21

0

20,000

40,000

60,000

80,000

100,000

120,000

FY

00

FY

01

FY

02

FY

03

FY

04

FY

05

FY

06

FY

07

FY

08

FY

09

FY

10

FY

11

FY

12

FY

13

FY

14

FY

15

F

FY

16

F

FY

17

F

FY

18

F

FY

19

F

FY

20

F

FY

21

F

FY

22

F

(rooms) Hotel rooms

Source: Dransfield (CLSA, The next wave, December 2014) 22

Source: Tourism Research Australia, Tourism Forecasts 2015 (Deloitte Access Economics, Tourism & Hotel Market Outlook August 2015)

$40

$80

$120

$160

$200

55%

57%

59%

61%

63%

65%

67%

69%

71%

73%

75%

ROOM OCC% ROOM RATE REVPARPoly. (ROOM OCC%) Poly. (ROOM RATE) Poly. (REVPAR)

23

Peppers Cradle Mountain, Tasmania

25

26

Mantra Group has demonstrated a flexibility in its approach to operating agreements

27

Revenue (A$mm)

EBITDA (A$mm)

396 414 424 455 499

307

4.5% 2.5% 7.2%

9.7% 21.7%

0%

5%

10%

15%

20%

25%

200

300

400

500

600

FY11 FY12 FY13 FY14 FY15 1H16

Revenue % growth

49 54 58 61 73

53

12.2% 13.0% 13.6% 13.5% 14.7%

17.3%

0%

4%

8%

12%

16%

20%

0

20

40

60

80

100

120

FY11 FY12 FY13 FY14 FY15 1H16

EBITDA % margin

28

Largest category marketer

in Australia

• A$20mm+ annual sales &

marketing spend

• 25,000+ online hits per day

A$7bn+ assets under

management

• Large hotel leasing portfolio

• Significant bargaining power

Best-in-class structures

• Centralised low-cost

group operating model

• 50%+ gross margins

3 high awareness brands

Market leading sales

support

• 60 sales specialists

• Cater to corporate,

leisure & property-based

divisions

Flexible & tailored operating

models

• Caters to the requirements

of all kinds of stakeholders

#1 Australia based hotel

& resort operator

• 19,500+ rooms under

management

Complete investor offering

• Real estate sales &

branding

• In house design &

renovation

29 Map is not to scale

Australia

New Zealand

Indonesia

Malaysia

Singapore

Thailand

Hawaii

30

31

32

33

34

Jun-14

Jul-14

Dec-14

Oct-14

Jun-15

Jan-15

Apr-15

Jan-16

Jul-15

Dec-15

• IPO in Jun-14:

• Peppers: 30 properties / 2,271 rooms

• Mantra: 58 properties / 7,591 rooms

• BreakFree: 26 properties / 1,919 rooms

• Launched Peppers brand

in Canberra with an 80

room CBD hotel

• Dec-14:

• Peppers: 29 properties / 2,245 rooms

• Mantra: 60 properties / 7,704 rooms

• BreakFree: 25 properties / 1,848 rooms

• Acquired Outrigger Hotels

& Resorts for $29.5mm

• Launched BreakFree on

Clarence, a 52 room hotel

in Sydney CBD

• Launched Mantra Bell City

(383 rooms) and

BreakFree Bell City (461

rooms) in Melbourne

• Secured a hotel management

agreement for a 261-room

resort on the Nusa Dua

Peninsular, Bali

• Reached an aggregate

of 119 properties and

13,000+ rooms

• Reached an aggregate of

125+ properties and

19,500+ rooms

• Launched Pepper Docklands

in Melbourne CBD

Jul-16

• Settle Ala Moana Hotel,

Hawaii (1,176 rooms)

35

Income statement

(A$mm) FY15 1H16

Revenue 499 307

Total operating expenses (426) (259)

EBITDAI1 73 48

%margin 14.7% 15.7%

Depreciation, amortisation (excluding

amortisation of lease rights) and impairment (15) (9)

EBITA 59 39

Amortisation of lease rights (4) (2)

EBIT 55 37

%margin 11.0% 12.1%

Net interest (4) (3)

Pretax income 51 35

Tax (15) (11)

Net income 36 24

%margin 7.3% 7.9%

(A$mm) Dec-15

Cash and cash equivalents 42

Trade and other receivables 69

Other current assets 6

Current assets 117

PPE 121

Intangible assets 475

Other non-current assets 1

Total non-current assets 596

Total assets 713

Trade and other payables 45

Other 61

Total current liabilities 106

Borrowings 160

Deferred tax liabilities 93

Other non-current liabilities 3

Total non-current liabilities 257

Total liabilities 363

Net assets 350

Balance sheet

Note: Financial year ends in June 1 EBITDAI – Earnings Before Interest, Taxation, Depreciation, Amortisation and Impairment

Mantra South Bank, Brisbane