Certain statements in this document may constitute ’forward looking statements’. Such forward looking statements reflect the company’s beliefs and expectations and involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Hospitality Property Fund Limited and its subsidiaries to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. The company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document, or to reflect the occurrence of anticipated events. Past performance of the company cannot be relied on as a guide to future performance. Forward-looking statements speak only as at the date of this document. You are cautioned not to place any undue reliance on such forward looking statements. No statement in this document is intended to be a profit forecast.

This document is being supplied to you for informational purposes only. This document is not a prospectus or an offer or invitation or inducement to subscribe for or purchase any securities, and nothing contained herein shall form the basis of any contract or commitment whatsoever. This document does not constitute a recommendation regarding the securities of the company.

No representation or warranty, express or implied, is given by the company, its subsidiaries or any of their respective directors, officers, employees and affiliates or any other person as to the fairness, accuracy or completeness of the information (including data obtained from external sources) or opinions contained in this document, nor have they independently verified such information, and any reliance you place thereon will be at your sole risk. Without prejudice to the foregoing, no liability whatsoever for any loss howsoever arising, directly or indirectly, from any use of information contained in this document, or otherwise arising in connection therewith is accepted by any such person in relation to such information. None of the data in this document has been reviewed or reported on by the group’s auditors and no guarantee or warranty as to the data’s accuracy, expressed or implied, is given.

2

DISCLAIMER

3

SHAREHOLDING STRUCTURE

40.8%59.2%

Public

4

MANAGEMENT AND BOARD

Board of Directors

• Executive Directors

• Rob Nicolella – CEO

• Mara de Lima – FD

• Non-Executive Directors

• John Copelyn – Chairman

• Gerald Nelson – Lead Independent

• Mac Gani – Audit and Risk Chairman

• Don Bowden – RemCo Chairman

• Zuko Kubukeli – Social and Ethics Chairman

• Syd Halliday

• Jacques Booysen

• Laurelle McDonald

• Zibusiso Kganyago

• Mohamed Ahmed

Executive Committee• Rob Nicolella - CEO

• Keith Randall – COO

• Mara de Lima – FD

• Rosa van Onselen – Company Secretary

• Natalie Moodley – Financial Manager

• Mario Monica – Group Development & Facilities Manager

• Charlene Haripersad – HR & Training Manager

• James Nathan – Investment & Asset Manager

5

MANAGEMENT AND BOARD

HOTEL BRAND PORTFOLIO

Luxury Upscale Midscale Economy

6

HOTEL PORTFOLIO

Geographic locations

9

13

12

19

Western Cape

Gauteng

Rest of South Africa

Sun1 Hotels

Eastern Cape

Northern Cape

Western Cape

KwaZulu-Natal

Limpopo

North West

Free State

MpumalangaGauteng

Polokwane

HazyviewTshwane

Johannesburg

Drakensburg

Durban

Nelspruit Richards Bay

Bloemfontein

Kimberley

Cape Town Port Elizabeth

Rustenberg

9

13

1

3

1

1

10

2

1

1

1

1

6

1

1

1

7

8

HOTEL PORTFOLIO

OPERATING SEGMENTS BY ROOMS HOTEL GRADE BY ROOMS

26%

34%

23%

17% Western Cape

Gauteng

Rest of SA

Sun1

8%

31%

44%

17% Luxury

Upscale

Midscale

Economy

9

INCOME STATEMENT

Rm

6 Months to

Sept 2018

6 Months to

Sept 2017

Change on

Prior year %

Rental Income 345 314 10%

Net operating costs (28) (27) (4%)

EBITDAR 317 287 10%

Net finance costs (80) (83) 4%

Profit before tax & adjustments 237 204 16%

Fair value on interest rate swops 23 (3) -

Fair value (decrease) / increase on investment property (431) 0 (100%)

Adjusted Earnings (171) 201 (185%)

Less adjustments noted above (408) (3) -

Distributable Earnings 237 204 16%

No. of shares (excluding appraisal right shares) 576 576 0%

Dividend per share (cents) 41.2 41.8 (1%)

10

CASH FLOW STATEMENT

Rm

6 Months to

Sept 2018

6 Months to

Sept 2017

EBITDAR per income statement 317 287

Working capital adjusted for non-cash and exceptional items 38 (103)

Cash generated from operations 355 184

Net finance costs (80) (83)

Maintenance capex (100) (33)

Free cash flow 175 68

Distributions to shareholders (451) (196)

Investment activities (net of transaction costs) 0 (1 301)

Rights issue 0 994

Move in net IBD (276) (435)

Opening net IBD (1 545) (1 508)

Acquired with acquisitions 0 203

Closing net IBD (1 821) (1 740)

Rm

as at

Sept 2018

as at

Sept 2017

Bank Facilities 1 047 1 238

Corporate Bonds (notes) 890 890

Gross Interest bearing debt 1 937 2 128

Cash on hand (116) (388)

Net Interest bearing debt 1 821 1 740

Loan to Value 15.8% 16.3%

Weighted average cost of debt 9.5% 10.8%

11

INTEREST BEARING DEBT

12

HOTELS PORTFOLIO AND STATISTICS

30 September 2018

Hotels Keys

Luxury 3 749

Upscale 12 3 227

Midscale 19 3 517

Economy 19 1 508

Total 53 9 001

13

HOTELS PORTFOLIO AND STATISTICS

Including Sun 1 :

Statistics 6 Months

Sept 2018

6 Months

Sept 2017

Change

%

Occupancy (%) 59.7% 61.4% (2.8%)

Average room rate (R) 988 990 (0.1%)

RevPar (R) 590 608 (3.0%)

All trading is shown for the full portfolio on a like-for-like 6 month basis

Excluding Sun 1 :

Statistics 6 Months

Sept 2018

6 Months

Sept 2017

Change

%

Occupancy (%) 60.6% 62.3% (2.6%)

Average room rate (R) 1 078 1 088 (0.9%)

RevPar (R) 654 677 (3.5%)

14

HOTELS PORTFOLIO AND STATISTICS

HPF: Trading Information – April to September (6 Months)

Occupancy Average Room Rate RevPAR

F2019

Actual

F2018

Actual

%

on PY

Relative

GI

F2019

Actual

F2018

Actual

%

on PY

Relative

GI

F2019

Actual

F2018

Actual

%

on PY

Relative

GI

Western Cape 51.8% 60.4% (14.3%) 93.4 1 333 1 376 (3.1%) 101.6 690 831 (16.9%) 94.9

Gauteng 62.4% 59.7% 4.6% 103.4 1 004 1 005 (0.1%) 96.8 627 600 4.6% 100.1

Rest of South Africa 68.1% 68.6% (0.7%) 100.1 956 890 7.4% 103.4 651 610 6.7% 103.5

Total 60.6% 62.3% (2.6%) 99.4 1 078 1 088 (0.9%) 98.2 654 677 (3.5%) 97.6

Sun 1 55.1% 57.5% (4.2%) 496 471 5.3% 273 271 0.8%

Total 59.7% 61.4% (2.8%) 99.2 988 990 (0.1%) 99.0 590 608 (3.0%) 98.1

STR: Trading Information – April to September (6 Months)

Occupancy Average Room Rate RevPAR

F2019

Actual

F2018

Actual

%

on PY

F2019

Actual

F2018

Actual

%

on PY

F2019

Actual

F2018

Actual

%

on PY

Western Cape 54.2% 59.1% (8.2%) 1 281 1 343 (4.6%) 695 794 (12.4%)

Gauteng 62.1% 61.4% 1.2% 1 121 1 086 3.2% 696 667 4.4%

Rest of South Africa 62.2% 62.7% (0.8%) 1 039 1 000 3.9% 646 627 3.1%

South Africa 60.0% 61.2% (2.0%) 1 134 1 124 0.9% 680 688 (1.2%)

15

PORTFOLIO AND COMPARATIVE TRADING

Note: Cullinan & Merway rental only included from 1 July 2017

Rooms Occ % ARR RevPAR

F2019

H1 Rent

(Rm)

F2018

H1 Rent

(Rm)

Western Cape Region 2 381 51.8% 1 333 690 84 92

Gauteng Region 3 016 62.4% 1 004 627 138 120

Rest of South Africa 2 096 68.1% 956 651 91 83

Subtotal 7 493 60.6% 1 078 654 313 295

Sun 1 1 508 55.1% 496 273 32 19

Total 9 001 59.7% 988 590 345 314

16

WESTERN CAPE REGION : TRADING AND RENT

Rooms Occ % ARR RevPAR

Rent

(R’000)

Western Cape Region 2 381 51.8% 1 333 690 84 189

Westin Cape Town 483 23 522

Southern Sun - Waterfront 537 22 396

Southern Sun- The Cullinan 394 20 874

StayEasy Century City 175 5 915

Radisson Blu Waterfront 177 4 481

Protea Hotel Victoria Junction 172 3 628

Southern Sun Newlands 162 2 985

Sunsquare Cape Town Gardens 136 2 493

Arabella Hotel & Spa 145 *

* Arabella Hotel & Spa : The rental is not aligned to HPF’s financial year end resulting in a timing difference in the variab le rent.

17

GAUTENG REGION : TRADING AND RENT

Rooms Occ % ARR RevPAR

Rent

(R’000)

Gauteng Region 3 016 62.4% 1 004 627 137 874

Birchwood Hotel & Conference Centre 665 38 222

Radisson Blue Gautrain 220 15 430

Crowne Plaza Rosebank 318 12 164

Garden Court OR Tambo 253 11 764

Garden Court Milpark 251 11 659

Sandton Eye BC – Retail - 8 555

Holiday Inn Sandton 301 8 342

Garden Court – Hatfield 157 6 499

Kopanong Hotel & Conference Centre 166 5 518

Garden Court – Morningside 150 5 482

Southern Sun – Katherine Street 122 5 153

Mount Grace Hotel & Spa 121 3 973

Garden Court – Eastgate 157 3 313

StayEasy - Eastgate 135 1 800

18

REST OF SA : TRADING AND RENT

Rooms Occ % ARR RevPAR

Rent

(R’000)

Rest of South Africa 2 096 68.1% 956 651 90 688

Garden Court South Beach 414 16 190

Champagne Sports 152 12 310

Garden Court - PE King’s Beach 280 10 013

Garden Court - Polokwane 180 9 479

Garden Court - Umhlanga 204 8 396

Protea Hotel Edward 131 8 281

StayEasy - Pietemaritzburg 127 6 437

StayEasy - Rustenburg 125 4 228

Garden Court – Kimberley 135 4 226

Protea Hotel Marine 114 4 085

Southern Sun - Bloemfontein 147 4 038

Protea Hazyview 87 3 005

19

F2019 CAPEX : KEY PROJECTS

Westin• Bedroom FF&E refurbishment F2020

• R148 million over 2 years

• 7/16 floors completed in F2019

Arabella Hotel & Spa• Bedroom Soft Refurbishment F2020

• R14.5 million over 2 years

• 2/5 floors completed in F2019

Birchwood Hotel & Conferencing

• Conference Rooms Refurbishment – completed F2019

20

CAPEX PROJECTS : THE WESTIN

21

CAPEX PROJECTS : THE WESTIN

22

CAPEX PROJECTS : ARABELLA HOTEL & SPA

23

WATER RESILIENCE

Water Resilience Projects

• Capex committed on water resilience projects have been spent, barring some

administrative procedures, these Western Cape hotels will be off the grid by the

first quarter 2019

• Desalination Plants installed and commissioned

• Westin, Radisson Blu Waterfront and Stay Easy Century City

• Westin Plant will feed Southern Sun Cullinan & Southern Sun Waterfront

• Boreholes and filtration plants installed

• Southern Sun Newlands, Sun Square Gardens, Garden Court Kings Beach and

Protea Hotel Marine

• Additional water storage

• Protea Hotel Victoria Junction and Sun 1 Milnerton, Foreshore and Parow

• Water Services Intermediary contracts signed with the relevant local authorities

where required

24

DISTRIBUTIONS

• Distribution of 100% of earnings not sustainable in the long term

• Gearing low and can borrow for maintenance capital expenditure in the short term

• Maintenance capital expenditure averages approximately 20% of hotel rental income

per annum over a 7 to 8 year cycle

Thank you

25