MCK FY2023 Results Announcement & Investor Presentation

1


MCK’S FY23 RESULT DELIVERS RETURN TO PROFIT
FOR HOTEL OPERATIONS

Millennium & Copthorne Hotels New Zealand Limited (NZX: MCK) announced its 2023 results today and recorded a profit after
tax and non-controlling interests of $21.6 million.

Mr. Sim noted that the New Zealand hotel operations had made real progress on its “Revive and Thrive” strategy, returning to
profit after recording a loss for the 2022 financial year.

“2023 was a year of trading uninterrupted by Covid lockdown measures”, said MCK Chair Colin Sim. “The increased number of
international flights returning to New Zealand has improved the visitor numbers and has translated into more demand, additional
revenue and more profit but we are still short of the pre Covid level of tourists”, he said.

“We are particularly pleased that we were able to increase the hotel operations’ profit by 69% this year. That figure reflects better
trading conditions from a 17.5% year-on-year overall increase in occupancy (to 61.2%) but it also reflects the hard work that has
gone in to making each room as profitable as possible”, he said.


Highlights during the year included:

• Settling the acquisition of the Sofitel Brisbane Central Hotel in December 2023;
• Copthorne Hotel Palmerston North hosting the winning Spanish Women’s National Football Team during the key group
stages of the 2023 FIFA Women’s World Cup held in New Zealand and Australia;
• Hotel room refurbishments with 132 rooms completed at Millennium Hotel Queenstown, and work continuing on the
remaining 70 rooms plus commencing refurbishment of 99 rooms in Millennium Hotel Rotorua;
• Commencing the recladding, reglazing and installation of air-conditioning into the Copthorne Hotel Palmerston North;
• Renewal of bank facility through to January 2027 with an increased limit of $120.0m;
• Restaurant One80 (located in Copthorne Hotel Oriental Bay) winning the Burger Wellington competition, part of the
annual Visa Wellington On a Plate food festival, beating over 200 entries from across the city.


Financial Performance & Financial Position

For the year ended 31 December 2023, MCK recorded a profit attributable to owners of the parent of $21.6 million (2022: $21.7
million). Of particular note, MCK’s New Zealand hotel operations contributed a profit before tax of $11.6 million (2022: $4.0 million
loss), as the 2026 Revive and Thrive strategy continues to be rolled out.

This positive turnaround reflects not only the return to open borders and uninterrupted trading, but also the sharp focus on
improving profitability across our network during the year. Building on this profit growth will be key to our 2024 results. The
results for CDL Investments New Zealand Limited (“CDI”), our majority-owned subsidiary, reflected a softness in the residential
property markets which resulted in contributing $18.7 million (2022: $43.3 million) to our overall pre-tax profit numbers.

Our total revenue in 2023 was $145.7 million (2022: $144.2 million) and our earnings per share was 13.65 cents per share (2022:
13.72 cents per share). At 31 December 2023, MCK’s shareholders’ funds excluding non-controlling interests was $547.9 million
(2022: $531.0 million). Total assets increased to $746.8 million (2022: $709.2 million) with net asset backing (with land and building
at cost and before distributions) also increasing to 345.8 cents per share (2022: 335.4 cents per share).

New Zealand Hotel Operations

In 2023, our New Zealand hotels recorded an operating revenue of $101.1 million (2022: $65.2 million) for the year. This increase
is pleasing and reflects a return to pre-pandemic demand patterns both domestically and internationally.

Overall, we recorded an occupancy percentage of 61.2% (2022: 43.7%) across all of our hotels and we also saw a healthy
increase in average RevPAR (Revenue Per Available Room) of $120.03 (2022: $76.59). The RevPAR increase is pleasing given
our efforts to improve the profitability of each room sold. This had been particularly challenging at the commencement of the year
with a shortage in staffing levels and severe weather events impacting the ability to sustain the business demand.

Ensuring that our physical product remains competitive is important to reviving our future revenues and profits. The second stage
of our refurbishment at Millennium Hotel Queenstown was completed at the end of 2023 with a further 132 rooms completed.
2024 will see additional work done on the remaining 70 rooms and 18 suites which are expected to be completed by Q3 2024.
The first stage of the guest room refurbishment at Millennium Hotel Rotorua of 99 rooms is reaching completion and will be ready
before the end of Q1 2024.

2



CDL Investments New Zealand Limited (“CDLI”)

As noted above, CDLI’s 2023 results reflected some weakness in the property markets seen from the end of 2022 which carried
over into part of 2023. Despite this, CDLI was still able to record an operating profit after tax for the year of $13.5 million (2022:
$31.2 million).

CDLI has kept its dividend at 3.5 cents per share and is due to be paid in May.


Australia Update

We were delighted to complete the acquisition of the Sofitel Brisbane Central in December 2023 after announcing the acquisition
in March together with our immediate parent company Millennium & Copthorne Hotels Limited (UK). While there was minimal
benefit to our 2023 results given the timing of completion, we are looking forward to seeing the hotel do well over the next twelve
months given its strong performance in its key market segments and very positive occupancy and room rates. As announced
previously, the hotel will continue to be managed under its existing hotel management agreement and branding.

MCK continues to sell down its Zenith Residency apartments in Sydney with a total of five (2022: 5) apartments sold during 2023.
We continue to own and manage 31 apartments being predominantly one bedroom units with some two – three bedrooms units.
MCK will continue to sell down its interest in the Zenith Residences in 2024 and utilize these funds within its Australian operations.


Dividend Announcement

MCK’s Board has resolved to declare and pay all shareholders a fully imputed dividend of 3 cents per share for 2023. The dividend,
payable to all shareholders, will be paid on 17 May 2024 with a record date of 10 May 2024.
The Board has determined that the dividend balances provide a consistent level of returns to shareholders and retain sufficient
cash resources required for ongoing refurbishment and other projects.


Outlook

We are entering the 2024 year with a sense of optimism, with many things to look forward to. MCK remains on track with its
“Revive and Thrive” strategy with the completion of key refurbishments in Queenstown and Rotorua. New refurbishment projects
at Copthorne Hotel & Resort Bay of Islands (and others currently being assessed) will see commencement during 2024 and are
expected to be completed within the year. We expect them to deliver additional revenue growth as soon as they become available.

Even though we have not noticed a meaningful return of Chinese visitors, with visitor numbers steadily improving and more flight
capacity into New Zealand, particularly in the high seasons, we are expecting this growth in numbers to translate into additional
demand for accommodation at our key properties. We are working hard across all of our business segments to maximise the
number of confirmed bookings at our properties and improve our market share throughout.

We will also have the benefit of a full year’s trading from Sofitel Brisbane Central which we expect to be strong.

Our optimism is tempered with a note of caution – the cost of doing business continued to increase in 2023 and we expect these
increases to continue to a lesser extent in 2024. While some of these increases can and will be partially offset by the ability to
increase room rates in response to demand, we are conscious of optimising our business to ensure that our growth opportunities
are not adversely affected.

We believe we are on track with our Strategy to Revive and shift to Thrive. We continue to be focused on reviving our people,
products and profits throughout 2024.

3



Thank you

On behalf of the Board, to our loyal customers, thank you for your continued patronage throughout the year just past. We
appreciate it and look forward to seeing you at one of our hotels in the very near future.

The Board and I would also like to thank everyone at our hotels and our support offices for their tireless work during 2023. We
are looking forward to another productive and profitable year with all of you in 2024.

Colin Sim
Chairman
26 February 2024

---

FIN 1
Millennium & Copthorne Hotels New Zealand Limited
Consolidated Income Statement
For the year ended 31 December 2023
Group
Group
DOLLARS IN THOUSANDS Note 2023 2022
Hotel revenue 101,072 65,245
Rental income 3,944 3,002
Property sales 40,643 75,951
Revenue 145,659 144,198
Cost of sales 3,10 (67,879) (59,687)
Gross profit 77,780 84,511
Other income 397 -
Administration expenses 2,3 (25,532) (22,678)
Other operating expenses 2,3 (20,501) (18,591)
Operating profit 32,144 43,242
Finance income 4 7,700 3,870
Finance costs 4 (2,444) (2,331)
Net finance income 5,256 1,539
Share of profit of joint venture 24 73 -
Profit before income tax 37,473 44,781
Income tax expense 5 (10,556) (12,363)
Profit for the year 26,917 32,418
Attributable to:
Owners of the parent 21,602 21,713
Non-controlling interests 5,315 10,705
Profit for the year 26,917 32,418
Basic earnings per share (cents) 8 13.65 13.72
Diluted earnings per share (cents) 8 13.65 13.72
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2023
Group
Group
DOLLARS IN THOUSANDS 2023 2022
Profit for the year 26,917 32,418
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign exchange translation movements 416 629
416 629
Total comprehensive income for the year 27,333 33,047
Total comprehensive income for the year attributable to :
Owners of the parent 22,018 22,342
Non-controlling interests 5,315 10,705
Total comprehensive income for the year 27,333 33,047
The accompanying notes form part of, and should be read in conjunction with, these financial statements.

FIN 2
Millennium & Copthorne Hotels New Zealand Limited
Consolidated Statement of Changes in Equity
For the year ended 31 December 2023
Group
Attributable to equity holders of the Group
DOLLARS IN THOUSANDS
Share
Capital
Exchange
Reserve
Retained
Earnings
Treasury
Stock Total
Non-
controlling
Interests
Total
Equity
Balance at 1 January 2023 383,266 (1,396) 149,175 (26) 531,019 111,682 642,701
Movement in exchange translation reserve -416- - 416 -416
Total other comprehensive income -416- - 416 -416
Profit for the year --21,602 - 21,6025,315 26,917
Total comprehensive income for the year -41621,602 - 22,0185,315 27,333
Transactions with owners, recorded
directly in equity:
Dividends paid to:
Owners of the parent - - (4,747) - (4,747)- (4,747)
Non-controlling interests - - - - - (4,324) (4,324)
Supplementary dividends - - (98) -(98)-(98)
Foreign investment tax credits - - 98 -98-98
Movement in non-controlling interests
without a change in control - - (374) -(374)1,863 1,489
Balance at 31 December 2023 383,266 (980)165,656(26) 547,916 114,536 662,452
The accompanying notes form part of, and should be read in conjunction with, these financial statements.

FIN 3
Millennium & Copthorne Hotels New Zealand Limited
Consolidated Statement of Changes in Equity
For the year ended 31 December 2022
Group
Attributable to equity holders of the Group
DOLLARS IN THOUSANDS
Share
Capital
Exchange
Reserve
Retained
Earnings
Treasury
Stock Total
Non-
controlling
Interests
Total
Equity
Balance at 1 January 2022 383,266 (2,025) 132,974 (26) 514,189 103,610 617,799
Movement in exchange translation reserve -629- - 629 -629
Total other comprehensive income -629- - 629 -629
Profit for the year --21,713 - 21,71310,705 32,418
Total comprehensive income for the year -62921,713 - 22,34210,705 33,047
Transactions with owners, recorded
directly in equity:
Dividends paid to:
Owners of the parent - - (5,538) - (5,538)- (5,538)
Non-controlling interests - - - - - (3,982) (3,982)
Supplementary dividends - - (112) - - - (112)
Foreign investment tax credits - - 112 - - - 112
Movement in non-controlling interests
without a change in control - - 26 -261,349 1,375
Balance at 31 December 2022 383,266 (1,396) 149,175 (26) 531,019 111,682 642,701
The accompanying notes form part of, and should be read in conjunction with, these financial statements.

FIN 4
Millennium & Copthorne Hotels New Zealand Limited
Consolidated Statement of Financial Position
As at 31 December 2023
Group
Group
DOLLARS IN THOUSANDS Note 2023 2022
SHAREHOLDERS’ EQUITY
Issued capital 7 383,266 383,266
Reserves 164,676 147,779
Treasury stock 7 (26) (26)
Equity attributable to owners of the parent 547,916 531,019
Non-controlling interests 114,536 111,682
TOTAL EQUITY 662,452 642,701
Represented by:
NON CURRENT ASSETS
Property, plant and equipment 9 263,051 255,279
Development properties 10 217,221 205,308
Investment properties 11 35,834 36,381
Investment in associates 2 2
Investment in joint venture 24 43,943 -
Total non-current assets 560,051 496,970
CURRENT ASSETS
Cash and cash equivalents 12 11,256 61,387
Short term bank deposits 64,075 111,946
Trade and other receivables 13 20,391 14,436
Advances to related parties 20 62,516 -
Inventories 1,640 1,409
Development properties 10 26,861 23,038
Total current assets 186,739 212,216
Total assets 746,790 709,186
NON CURRENT LIABILITIES
Lease liability 22 27,111 25,458
Deferred tax 15 7,001 9,717
Total non-current liabilities 34,112 35,175
CURRENT LIABILITIES
Interest-bearing loans and borrowings 14, 26 11,968 -
Trade and other payables 16 32,348 28,024
Trade payables due to related parties 20 2,318 2,248
Lease liability 22 215 233
Income tax payable 3,377 805
Total current liabilities 50,226 31,310
Total liabilities 84,338 66,485
NET ASSETS 662,452 642,701
For and on behalf of the board
LS PRESTON, DIRECTOR, SNB HARRISON, MANAGING DIRECTOR,
26 February 2024 26 February 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.

FIN 5
Millennium & Copthorne Hotels New Zealand Limited
Consolidated Statement of Cash Flows
For the year ended 31 December 2023
Group

Group

DOLLARS IN THOUSANDS Note 2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers 142,092 146,085
Receipts from insurers 397 -
Interest received 8,248 2,980
Dividends received 4 - 1
Cash was applied to:
Payments to suppliers and employees
(99,843) (84,544)
Purchases of development land 1 (20,407) (24,607)
Interest paid (104)(18)
Income tax paid (10,701) (13,547)
Net cash inflow/(outflow) from operating activities 19,682 26,350
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was (applied to)/provided from:
Proceeds from the sale of property, plant and equipment 387 41
Purchases of property, plant and equipment 9 (13,901) (7,148)
Purchases of investment property (386)(13,587)
Investment in joint venture 24 (44,048) -
Advance to joint venture 20 (62,261) -
Divestments in short term bank deposits 47,871 9,550
Net cash inflow/(outflow) from investing activities (72,338) (11,144)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was (applied to)/provided from:
Drawdown/(Repayment) of borrowings 14 11,968 (1,000)
Lease payments 22(c) (2,161) (3,235)
Dividends paid to shareholders of Millennium & Copthorne Hotels
New Zealand Ltd 7 (4,747) (5,538)
Dividends paid to non-controlling shareholders (4,324) (3,982)
Net cash inflow/(outflow) from financing activities 736 (13,755)
Net increase/(decrease) in cash and cash equivalents (51,920) 1,451
Add opening cash and cash equivalents 61,387 58,143
Exchange rate adjustment 1,789 1,793
Closing cash and cash equivalents 12 11,256 61,387
The accompanying notes form part of, and should be read in conjunction with, these financial statements.

FIN 6
Millennium & Copthorne Hotels New Zealand Limited
Consolidated Statement of Cash Flows – continued
For the year ended 31 December 2023
Group

Group

DOLLARS IN THOUSANDS Note 2023 2022
RECONCILIATION OF NET PROFIT FOR THE YEAR TO CASH FLOWS
FROM OPERATING ACTIVITIES
Profit for the year 26,917 32,418
Adjusted for non-cash items:
Share of profit joint venture (73) -
Gain on sale of property, plant and equipment
2
(376)(20)
Depreciation of property, plant and equipment and investment property
9, 11
7,845 7,353
Depreciation of Right-Of-Use assets
9
850 968
Unrealised foreign exchange losses 435 10
Interest expense 1,956 2.321
Income tax expense
5
10,556 12,363
48,110 54,413
Adjustments for movements in working capital:
(Increase)/Decrease in trade & other receivables (5,955) 998
(Increase)/Decrease in inventories (231)(137)
(Increase)/Decrease in development properties (15,576) (12,654)
Increase/(Decrease) in trade & other payables 4,324 (1,976)
(Decrease) in related parties (185)(1,729)
Cash generated from operations 30,487 39,915
Interest paid (104)(18)
Income tax paid (10,701) (13,547)
Cash inflows from operating activities 19,682 26,350
Reconciliation of movement of liabilities to cash flows arising from
financing activities
As at 01 January -1,000
Proceeds from borrowings 11,968 -
Repayment of term loans -(1,000)
Financing cash flows 11,968 (1,000)
As at 31 December 11,968 -
The accompanying notes form part of, and should be read in conjunction with, these financial statements.

FIN 7
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
Significant accounting policies
Millennium & Copthorne Hotels New Zealand Limited is a company domiciled in New Zealand registered under the Companies Act 1993 and
listed on the New Zealand Stock Exchange. Millennium & Copthorne Hotels New Zealand Limited (the “Company”) is a Financial Markets
Conduct Reporting Entity in terms of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013. The financial statements
of the Company for the year ended 31 December 2023 comprise the Company and its subsidiaries (together referred to as the “Group”). The
registered office is located at Level 7, 23 Customs Street East, Auckland, New Zealand.
The principal activities of the Group are ownership and operation of hotels in New Zealand; development and sale of residential land in New
Zealand; investment properties comprising commercial warehousing and retail shops in New Zealand; and development and sale of residential
units in Australia.
(a) Statement of compliance
The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP).
They comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRSs) as appropriate for Tier 1
profit-oriented entities. The financial statements also comply with International Financial Reporting Standards (IFRSs).
The financial statements were authorised for issuance on 26 February 2024.
(b) Basis of preparation
The financial statements are presented in the Company’s functional currency of New Zealand Dollars, rounded to the nearest
thousand, unless otherwise indicated. They are prepared on the historical cost basis and on a going concern basis.
The preparation of financial statements in conformity with NZ IFRSs requires management to make judgments, estimates and
assumptions that affect the application of the Group’s policies and reported amounts of assets and liabilities, income and expenses.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future period affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies
that have the most significant effect on the amount recognised in the financial statements are described in Note 21 – Accounting
Estimates and Judgements.
(c) Change in accounting policies and new standards adopted in the year
The accounting policies have been applied consistently to all periods presented in these consolidation financial statements. The
accounting policies are now included within the relevant notes to the consolidated financial statements.
The Group adopted all new and amended standards that became effective during the reporting period. However, they did not have
any impact on the financial position, performance and cash flows of the Group.
(d) Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies at the balance date are translated to New Zealand dollars at the foreign exchange
rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary
assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the
date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are
translated to New Zealand dollars at foreign exchange rates ruling at the dates the fair value was determined.
(e) Insurance proceeds
Compensation from third parties for items of property, plant and equipment that were damaged, impaired, lost or given up is included
in the profit or loss when the compensation becomes virtually certain. Any subsequent purchase or construction of replacement
assets are separate economic events and are accounted for separately.
(f) Revenue
Revenue from sale of goods and services in the ordinary course of business is recognised when the Group satisfies a performance
obligation by transferring control of a promised good or service to the customer. The amount of revenue recognised is the amount
of the transaction price allocated to the satisfied performance obligation.
Revenue represents amounts derived from:
The ownership, management and operation of hotels: revenue from sale of goods is recognised at the point control is
transferred to the customer (point of sale) and for services provided, over the period the service is provided.
Income from property rental: recognised on an accruals basis, straight line over the lease period. Lease incentives
granted are recognised as an integral part of the total rental income.
Income from development property sales: recognised when the customer obtains control (when the title is transferred)
of the property and is able to direct and obtain the benefits from the property. The Group grants settlement terms of up
to 12 months on certain sections as part of the Sale and Purchase agreement for unconditional sales. In some instances,
the acquirers are permitted access to the residential sections for building activities prior to settlement. However, the
acquirer does not obtain substantially all of the remaining benefits of the asset until final settlement of the land and title
has passed.

FIN 8
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
Index
1.Segment reporting
2. Administration and other operating expenses
3.Personnel expenses
4.Net finance income
5.Income tax expense
6.Imputation credits
7.Capital and reserves
8.Earnings per share
9.Property, plant and equipment
10.Development properties
11.Investment properties
12.Cash and cash equivalents
13.Trade and other receivables
14.Interest-bearing loans and borrowings
15.Deferred tax assets and liabilities
16.Trade and other payables
17.Financial instruments
18.Capital and land development commitments
19.Related parties
20.Group entities
21.Accounting estimates and judgements
22. Lease
23.New standard and interpretations issued but not yet adopted
24. Investment in joint venture
25. Non-controlling interests (“NCI”)
26. Subsequent events

FIN 9
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
1. Segment reporting
Operating segments
The Group consisted of the following main operating segments:
Hotel operations, comprising income from the ownership and management of hotels.
Residential land development, comprising the development and sale of residential land sections.
Residential and commercial property development, comprising the development and sale of residential
apartments.
Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a) Operating Segments
Hotel Operations
Residential Land
Development
Investment
Property
Residential Property
Development Group
Dollars in thousands

2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
External revenue 101,072 65,245 28,284 66,106 2,494 1,240 13,809 11,607 145,659 144,198
Earnings before interest,
depreciation
& amortisation
19,299 4,754 13,697 41,446 2,473 775 5,371 4,590 40,840 51,565
Finance income 2,411 1,271 3,514 1,664 - - 1,775 935 7,700

3,870

Finance expense (2,429) (2,321) (12)(7)- - (3) (3)(2,444)(2,331)
Depreciation and amortisation (6,900) (6,807) (7)(3)(933)(538)(6)(7)(7,846)(7,355)
Depreciation of Right-of-use
assets (806)(940)(34)(19)- - (10) (9)(850)(968)
Share of profit of Joint venture 73 -- - - - - - 73-
Profit before income tax
11,648 (4,043) 17,158 43,081 1,540 237 7,127 5,506 37,473 44,781
Income tax expense (3,179) 1,417 (4,805) (12,063) (431)(66)(2,141) (1,651) (10,556) (12,363)
Profit after income tax
8,469 (2,626) 12,353 31,018 1,109 171 4,986 3,855 26,917

32,418

Cash & cash equivalents and
short term bank deposits 16,982 45,152 52,159 71,742 - - 6,190 56,439 75,331 173,333
Investment in associates
- - 2 2 - - - - 2

2

Investment in joint venture 43,943 - - - - - - - 43,943 -
Other segment assets 339,925 266,463 231,231 205,573 35,834 36,381 20,524 27,434 627,514 535,851
Total assets
400,850 311,615 283,392 277,317 35,834 36,381 26,714 83,873 746,790 709,186
Segment liabilities
(68,516) (52,502) (4,053) (1,542) -- (1,391)(1,919) (73,960) (55,963)
Tax liabilities
(7,393) (6,661) (1,449) (3,275) -- (1,536)(586)(10,378)(10,522)
Total liabilities (75,909) (59,163) (5,502) (4,817) -- (2,927)(2,505) (84,338) (66,485)
Property, plant and equipment
expenditure
13,821 17,312 56 77
- -
14 44 13,901

17,433

Investment property
expenditure
- - - - 386

13,587

- - 386

13,587

Residential land development
expenditure
- - 10,135 13,327
- -
- - 10,135

13,327

Purchase of land for
residential land development
- - 20,407 24,607 - - - - 20,407

24,607

FIN 10
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
1. Segment reporting - continued
(b) Geographical areas
The Group operates in the following main geographical areas:
New Zealand.
Australia.
Segment revenue is based on the geographical location of the asset.
New Zealand Australia Group
Dollars In Thousands 2023 2022 2023 2022 2023 2022
External revenue 131,850 132,591 13,809 11,607 145,659 144,198
Earnings before interest, depreciation &
amortisation 35,487 46,994 5,353 4,571 40,840 51,565
Finance income 5,925 2,935 1,775 935 7,700 3,870
Finance expense (2,441) (2,328) (3)(3)(2,444) (2,331)
Depreciation and amortisation (7,840) (7,348) (6)(7)(7,846) (7,355)
Depreciation of Right-Of-Use Assets (840)(959)(10)(9)(850)(968)
Share of profit of joint venture --73 -73-
Profit before income tax 30,291 39,294 7,182 5,487 37,473 44,781
Income tax (expense)/credit (8,422) (10,718) (2,134) (1,645) (10,556) (12,363)
Profit after income tax 21,869 28,576 5,048 3,842 26,917 32,418
Cash & cash equivalents and short term
bank deposits 69,141 116,894 6,190 56,439 75,331 173,333
Investment in associates 2 2 - - 2 2
Investment in joint venture - - 43,943 -43,943-
Investment properties 35,834 36,381 - - 35,83436,381
Segment assets 508,895 472,036 82,785 27,434 591,680 499,470
Total assets 613,872 625,313 132,918 83,873 746,790 709,186
Segment liabilities (29,976) (54,044) (43,984) (1,919) (73,960) (55,963)
Tax liabilities (8,842) (9,936) (1,536) (586) (10,378) (10,522)
Total liabilities (38,818) (63,980) (45,520) (2,505) (84,338) (66,485)
Material additions to segment assets:
Property, plant and equipment expenditure 13,887 17,389 14 44 13,901 17,433
Investment property expenditure 386 13,587 - - 386 13,587
Residential land development expenditure 10,135 13,327 - - 10,135 13,327
Purchase of land for residential land
development 20,407 24,607 - - 20,407 24,607
An operating segment is a distinguishable component of the Group:
that is engaged in business activities from which it earns revenues and incurs expenses;
whose operating results are regularly reviewed by the Group’s chief operating decision maker to make decisions on
resource allocation to the segment and assess its performance; and
for which discrete financial information is available.
Segment information is presented in respect of the Group’s reporting segments. Operating segments are the primary basis of
segment reporting. The Group has determined that its chief operating decision maker is the Board of Directors on the basis that it
is this group which determines the allocation of resources to segments and assesses their performance.
Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for
more than one period.

FIN 11
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
2. Administration and other operating expenses
Group
Dollars In Thousands Note 2023 2022
Depreciation 9, 11 8,695 8,323
Auditors’ remuneration
Audit fees 374 344
Tax compliance and tax advisory fees 101 34
Other non-audit services 74 -
Directors’ fees 19
350 322
Rental expenses 694 699
Provision for bad debts
Debts written off 20 4
Movement in doubtful debt provision 127 65
Net (gain)/ loss on disposal of property, plant and equipment (376)20
Resurgence Support Payments -(28)
3. Personnel expenses
Group
Dollars In Thousands 2023 2022
Wages and salaries 44,109 32,632
Wage subsidies (30)(222)
Employee related expenses and benefits 2,078 1,135
Contributions to defined contribution plans 625 476
Increase/(decrease) in liability for long-service leave 76 32
46,858 34,053
Wage subsidy scheme
The Group applied for government support and received $46,308 under the COVID-19 Leave Support Scheme. During 2022, a total
of $272,345 was received under the COVID-19 Leave Support Scheme and the COVID-19 Short-term Absence Payment.
The wage subsidies including Leave Support Scheme and Short-term Absence Payment were recorded as a deduction against payroll
costs in personnel expenses. The personnel expenses are included in cost of sales, administration expenses and other expenses in
the income statement.
Employee long-term service benefits
The Group’s net obligation in respect of long-term service benefits, is the amount of future benefit that employees have earned in
return for their service in the current and prior periods. The obligation is calculated using their expected remuneration and an
assessment of the likelihood that the liability will arise.
4. Net finance income
Recognised in the income statement

Group
Dollars In Thousands 2023 2022
Interest income 7,700 3,869
Dividend income - 1
Finance income 7,700 3,870
Interest expense (2,009) (2,321)
Foreign exchange loss (435)(10)
Finance costs (2,444) (2,331)
Net finance income recognised in the income statement 5,256 1,539

FIN 12
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
4. Net finance income - continued
Finance income and expenses
Finance income comprises interest income on funds invested, dividend income and foreign currency gains that are recognised in
profit or loss. Interest income is recognised as it accrues, using the effective interest method. Dividend income is recognised in the
income statement on the date the entity’s right to receive payments is established which in the case of quoted securities is the ex-
dividend date.
Finance expenses comprise interest payable on borrowings calculated using the effective interest rate method, interest costs on lease
liability and foreign exchange losses that are recognised in the income statement.
Recognised in other comprehensive income

Group
Dollars In Thousands 2023 2022
Foreign exchange translation movements 416 629
Exchange translation of financial statements of foreign operations
The assets and liabilities of foreign operations are translated to New Zealand dollars at foreign exchange rates ruling at the balance
date. The revenues and expenses of foreign operations are translated to New Zealand dollars at rates approximating the foreign
exchange rates ruling at the dates of the transactions. Foreign exchange differences arising on re-translation are recognised directly
as a separate component of equity. When a foreign operation is disposed of, in part or in full, the relevant amount in the exchange
reserve is released into the income statement.
5. Income tax expense
Recognised in the income statement
Group
Dollars In Thousands 2023 2022
Current tax expense
Current year 13,142 12,182
Adjustments for prior years 132 (239)
13,274 11,943
Deferred tax expense
Origination and reversal of temporary difference (2,718) 420
(2,718) 420
Total income tax expense in the income statement 10,556 12,363
The Group qualified for tax relief in rolling over the depreciation recovery from the disposal of Copthorne Hotel Christchurch Central
in 2012. No replacement property was acquired during 2023 and the tax relief ended on 31 December 2023. The deferred liability of
$3.02 million provided for the depreciation recovery was released and an equivalent amount was provided in the current tax expense.
Reconciliation of tax expense
Group
Dollars In Thousands 2023 2022
Profit before income tax 37,473 44,781
Income tax at the company tax rate of 28% (2022: 28%) 10,492 12,539
Adjusted for:
Tax rate difference (if different from 28% above) 146 108
Tax exempt income (214)(45)
Under/(Over) - provided in prior years 132 (239)
Total income tax expense
10,556 12,363
Effective tax rate 28% 28%
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the income statement
except to the extent that it relates to items recognised directly in other comprehensive income or equity, in which case it is recognised
in other comprehensive income or equity.

FIN 13
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
5. Income tax expense - continued
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the
balance date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised in respect of the temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill
not deductible for tax purposes; the initial recognition of assets or liabilities that neither affect accounting nor taxable profit; and
differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The
amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and
liabilities, using tax rates enacted or substantively enacted at the balance date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the
asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be
realised.
Deferred tax assets and deferred tax liabilities are offset only if the Group has a legally enforceable right to set off current tax assets
against current tax liabilities; the Group intends to settle net; and the deferred tax assets and the deferred tax liabilities relate to
income taxes levied by the same taxation authority.
6. Imputation credits
The KIN Holdings Group has A$13.11 million (2022: A$12.01 million) franking credits available as at 31 December 2023.
7. Capital and reserves
Share capital
Group Group
2023 2023 2022 2022
Shares $000’s Shares $000’s
Ordinary shares issued 1 January
105,578,290 350,048 105,578,290 350,048
Ordinary shares issued at 31 December – fully paid
105,578,290 350,048 105,578,290 350,048
Redeemable preference shares 1 January
52,739,543 33,218 52,739,543 33,218
Redeemable preference shares issued at 31 December – fully
paid 52,739,543 33,218 52,739,543 33,218
Ordinary shares repurchased and held as treasury stock 1
January (99,547) (26)(99,547)(26)
Ordinary shares repurchased and held as treasury stock 31
December (99,547) (26)(99,547)(26)
Total shares issued and outstanding
158,218,286 383,240 158,218,286 383,240
At 31 December 2023, the authorised share capital consisted of 105,578,290 ordinary shares (2022: 105,578,290 ordinary shares)
with no par value and 52,739,543 redeemable preference shares (2022: 52,739,543 redeemable preference shares) with no par
value.
The non-voting redeemable preference shares rank equally with ordinary shares with respect to all distributions made by the
Company (including without limitation, to dividend payments) except for any distributions made in the context of a liquidation of the
Company. The Company reserves the right to the redemption of these preference shares as well as any distributions relating to these
shares and makes no guarantee that these preference shares will be redeemed or that dividends will be paid in respect of these
preference shares.
Repurchase of share capital
When share capital recognised as equity is repurchased, the amount of the consideration paid, including directly attributed costs,
is recognised as a change in equity. Repurchased shares are classified as treasury stock and presented as a deduction from total
equity.
Group
Dollars In Thousands 2023 2022
Imputation credits available for use in subsequent reporting periods 134,317 126,825

FIN 14
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
7. Capital and reserves – continued
Exchange reserve
The exchange reserve comprises the foreign exchange differences arising from the translation of the financial statements of foreign
operations.
Dividends
The following dividends were declared and paid during the year ended 31 December:
Company
Dollars In Thousands 2023 2022
Ordinary Dividend – 3.0 cents per qualifying share (2022: 3.5 cents) 4,747 5,538
Supplementary Dividend – 0.0053 cents per qualifying share (2022: 0.062 cents) 98 112
4,845 5,650
After 31 December 2023, the following dividends were declared by the directors. The dividends have not been provided for and there
are no income tax consequences.
Dollars In Thousands
Company
Ordinary Dividend – 3.0 cents per qualifying share (2022: 3.0 cents) 4,747
Supplementary Dividend – 0.0053 cents per qualifying share (2022: 0.0053 cents) 98
Total Dividends 4,845
Dividends and tax
Dividends are recognised as a liability in the period in which they are declared. Additional income taxes that arise from the
distribution of dividends are recognised at the same time as the liability to pay the related dividend.
8. Earnings per share
Basic earnings per share
The calculation of basic earnings per share at 31 December 2023 was based on the profit attributable to ordinary and redeemable
preference shareholders of $21,602,000 (2022: $21,713,000) and weighted average number of shares outstanding during the year
ended 31 December 2023 of 158,218,286 (2022: 158,218,286), calculated as follows:
Profit attributable to shareholders
Group
Dollars In Thousands 2023 2022
Profit for the year 26,917 32,418
Profit attributable to non-controlling interests (5,315) (10,705)
Profit attributable to shareholders 21,602 21,713
Weighted average number of shares
Group
2023 2022
Weighted average number of shares (ordinary and redeemable preference shares) 158,317,833 158,317,833
Effect of own shares held (ordinary shares) (99,547) (99,547)
Weighted average number of shares for earnings per share calculation 158,218,286 158,218,286
Diluted earnings per share
The calculation of diluted earnings per share is the same as basic earnings per share.
Group
2023 2022
Basic and Diluted Earnings per share (cents per share) 13.65 13.72

FIN 15
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
9. Property, plant and equipment
Group
Initial recording
Items of property, plant and equipment are initially stated at cost. The cost of purchased property, plant and equipment is the value
of the consideration given to acquire the assets and the value of other directly attributable costs, which have been incurred in bringing
the assets to the location and condition necessary for their intended service. Where parts of an item of property, plant and equipment
have different useful lives, they are accounted for as separate items of property, plant and equipment.
Capital expenditure on major projects is recorded separately within property, plant and equipment as capital work in progress. Once
the project is complete the balance is transferred to the appropriate property, plant and equipment categories. Capital work in progress
is not depreciated.
Subsequent measurement
Property, plant and equipment is subsequently measured at cost less accumulated depreciation and impairment losses. The Group
recognises the cost of replacing part of such an item of property, plant and equipment when that cost is incurred if it is probable that
the future economic benefits embodied within the item will flow to the Group and the cost of the item can be measured reliably. All
other costs are recognised in the income statement as an expense as incurred.
Dollars In Thousands
Freehold
Land Buildings
Plant,
Equipment
, Fixtures
& Fittings
Motor
Vehicles
Work
In
Progress
Right Of
Use Asset Total
Cost
Balance at 1 January 2022 43,691 213,798 105,596 76 5,704 19,787 388,652
Acquisitions - - 8 -7,13810,286 17,432
Disposals - - (84) -(128)(1,948) (2,160)
Transfers between categories 2,970 3,874 2,916 -(9,760)- -
Movements in foreign exchange - - 4 --- 4
Balance at 31 December 2022 46,661 217,672 108,440 76 2,954 28,125 403,928
Balance at 1 January 2023 46,661 217,672 108,440 76 2,954 28,125 403,928
Acquisitions - - 28 -13,8732,677 16,578
Disposals - - (151) -(300)(1,979) (2,430)
Transfers between categories -4,1934,295 -(8,488)- -
Movements in foreign exchange --2 --- 2
Balance at 31 December 2023 46,661 221,865 112,614 76 8,039 28,823 418,078
Depreciation and impairment losses
Balance at 1 January 2022 -(48,840)(90,494) (71)-(3,465) (142,870)
Depreciation charge for the year -(3,246)(3,570) (1)-(968)(7,785)
Disposals --65 --1,945 2,010
Movements in foreign exchange --(3) --(1) (4)
Balance at 31 December 2022 -(52,086)(94,002) (72)-(2,489) (148,649)
Balance at 1 January 2023 -(52,086)(94,002) (72)-(2,489) (148,649)
Depreciation charge for the year -(3,538)(3,370) (4)-(850)(7,762)
Disposals --140 --1,246 1,386
Movements in foreign exchange --(2) --- (2)
Balance at 31 December 2023 -(55,624)(97,234) (76)-(2,093) (155,027)
Carrying amounts
At 1 January 2022 43,691 164,958 15,102 5 5,704 16,322 245,782
At 31 December 2022 43,661 165,586 14,438 4 2,954 25,636 255,279
At 31 December 2023 46,661 166,241 15,380 -8,03926,730 263,051

FIN 16
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
9. Property, plant and equipment – continued
Impairment
The carrying amounts of the Group’s assets are reviewed at each balance date to determine whether there is any indication of
impairment. If any such indication exists, the asset’s recoverable amount is estimated. For impairment testing, the assets are
grouped together into the smallest asset group that generates cash inflows from continuing use that are independent of other
assets or cash generating units “CGU”. The recoverable amount of assets or CGU is the greater of their fair value less disposal
costs and their value in use. An impairment loss is recognised in the income statement whenever the carrying amount of an asset or
CGU exceeds its estimated recoverable amount.
The testing for impairment is undertaken with an internal review by management and supplemented by external review on selected
hotels by an independent registered valuer. The internal review requires management to determine the recoverable amounts by
estimating future cash flows to be generated by the cash generating units. The basis of the impairment test is the net present value
of the future earnings of the assets. The major unobservable inputs that management use that require judgement in estimating
future cash flows include expected rate of growth in revenue and costs, projected occupancy and average room rates, operational
and maintenance expenditure profiles, terminal capitalisation rate, and the appropriate discount rate to apply when discounting
future cash flows. Average annual growth rates appropriate to the hotels range from 4.98% to 11.90% (2022: 5.14% to 78.61% over
five years) over the five years projection. Pre-tax discount rates ranging between 6.50% to 10.75% (2022: 6.25% and 10.50%) were
applied to the future cash flows of the individual hotels based on the specific circumstances of the property. Hotel assets dependent
on international travel have been projected to return to normal pre-COVID occupancy levels during 2025.
During the year management identified four (2022: four) hotel assets with a carrying value of $39.43 million that had indicators of
impairment and were subsequently tested for impairment. The recoverable amount of one of the hotel assets with a carrying value
of $9.34 million was determined on a highest and best use basis by reference to the fair value of the land less demolition costs
using comparative land sales data. The fair value of this hotel asset exceeded its carrying value by $0.11 million and is considered
to be sensitive to impairment from a reasonably possible change in square metre rate.
The remaining three other hotel assets with a carrying value of $30.09 million were considered to be sensitive to impairment. The
sensitivity table below schedules out the thresholds which trigger impairments.
Hotel 1 Hotel 2 Hotel 3
RevPAR * Decrease by 8.00% Decrease by 2.00% Decrease by 8.00%
Discount rate Increase by 8.50% points Increase by 2.00% points Increase by 3.50% points
Terminal capitalisation rate Increase by 6.50% points Increase by 1.00% points Increase by 1.50% points
* Revenue per Available Room – a hospitality metric combining average room rate and occupancy rate.
Depreciation
Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual
values over their estimated useful lives, as follows:
Building core 50 years or lease term if shorter
Building surfaces and finishes30 years or lease term if shorter
Plant and machinery 15 - 20 years
Furniture and equipment10 years
Soft furnishings5 - 7 years
Computer equipment 5 years
Motor vehicles4 years
No residual values are ascribed to building surfaces and finishes. Residual values ascribed to building core depend on the nature,
location and tenure of each property. Residual values ascribed to building core range between 10% to 24% of the building core.
Disposal or retirement
Gains or losses arising from the disposal or retirement of property, plant and equipment are determined as the difference between
the actual net disposal proceeds and the carrying amount of the asset and are recognised in the income statement on the date of
retirement or disposal.
Right of use assets
The accounting policy for right of use asset is disclosed in Note 22.
Pledged assets
A total of three (2022: two) hotel properties with a total book value of $75.33 million (2022: $37.70 million) are pledged to the bank
as security against the loan facility.
Climate-related disclosure
The Group is currently in the process of identifying and reporting on the impacts of climate change that are affecting the business.
Climate change poses significant risks and challenges for the hotel industry, as it affects the physical, operational, and financial
aspects of hotel properties. Extreme weather events, such as floods, storms, heatwaves, and droughts, can damage the hotel
infrastructure, disrupt the supply chain, reduce the occupancy and revenue, and increase the insurance and maintenance costs.
While hotel investors, managers, and owners are increasingly cognisant of the climate-related impacts on their properties, the
investment community have yet to price in the climate-related impacts on the asset values. This means that the current market
value of hotel properties may not reflect the potential losses or gains associated with their exposure to climate risks or their
adoption of sustainability measures, decarbonisation initiatives, and sound environmental stewardship.

FIN 17
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
10.Development properties
Group
Dollars In Thousands 2023 2022
Development land 224,540 203,148
Residential development 19,542 25,198
244,082 228,346
Less expected to settle within one year (26,861) (23,038)
217,221 205,308
Development land recognised in cost of sales 10,926 20,527
Residential development recognised in cost of sales 6,052 4,844
Development land is carried at the lower of cost and net realisable value. Interest of $Nil (2022: $Nil) was capitalised during the year.
Residential development at balance date consists of the residential development known as Zenith Residences in Sydney, Australia.
Property held for future development and development property completed and held for sale are stated at the lower of cost and net
realisable value. The net realisable value of inventories is the estimated selling price in ordinary course of business less the estimated
costs of completion and costs necessary to make the sale. The determination of net realisable value of inventories involves estimates
taking into consideration prevailing market conditions, current prices and expected date of commencement and completion of the
projects, the estimated future selling price, cost to complete projects and selling costs. The amount of any write-down of inventories is
recognised as an expense in the Income Statement to the extent that the carrying value of inventories exceeds its estimated net
realisable value. Cost includes the cost of acquisition, development, and holding costs. All holding costs incurred after completion of
development are expensed as incurred. Revenue and profit are not recognised on development properties until the legal title passes
to the buyer when the full settlement of the purchase consideration of the properties occurs and the development property is
derecognised.
The fair value of development property held at 31 December 2023 was determined, by an independent registered valuer, DM
Koomen SPINZ of Extensor Advisory Limited. The net realisable value was estimated from the fair value. The net realisable value
as determined by the independent registered valuer, exceeded the carry value of development property.
11.Investment properties
Group
Investment properties consist of commercial warehousing at Wiri in Auckland, retail shops at Prestons Park in Christchurch, and
retail shops at Stonebrook in Rolleston. The fair value of investment properties at 31 December 2023 was determined by an
independent registered valuer, DM Koomen SPINZ, of Extensor Advisory Limited as $62.69 million (2022: $62.62 million). The fair
value measurement was categorised as Level 3 (highest of the fair value hierarchy) based on the inputs to the valuation
methodology used i.e. income capitalisation approach.
Dollars In Thousands Freehold Land Buildings
Work In
Progress Total
Cost
Balance at 1 January 2022 659 3,052 19,691 23,402
Transfer from development properties - 33,278 (33,278) -
Additions - - 13,587 13,587
Balance at 31 December 2022 659 36,330 -36,989
Balance at 1 January 2023 659 36,330 -36,989
Transfers between categories - 386 (386) -
Additions - - 386 386
Balance at 31 December 2023 659 36,716 -37,375
Depreciation and impairment losses
Balance at 1 January 2022 - 70 - 70
Depreciation charge for the year - 538 - 538
Balance at 31 December 2022 - 608 - 608
Balance at 1 January 2023 - 608 - 608
Depreciation charge for the year - 933 - 933
Balance at 31 December 2023 - 1,541 - 1,541
Carrying amounts
At 1 January 2023 659 35,722 -36,381
At 31 December 2023 659 35,175 -35,834

FIN 18
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
11.Investment properties - continued
Investment properties are properties held either to earn rental income or capital appreciation or for both, but not for sale in the
ordinary course of business, use in the production or supply of goods and services, or for administrative purposes. Investment
properties are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is
directly attributable to the acquisition of the investment properties. Costs of self-constructed investment properties include costs of
materials and direct labour, any other costs directly attributable to bringing the investment properties to a working condition for their
intended use and capitalised borrowing costs. Gains and losses on disposal of investment properties (calculated as the difference
between the net proceeds from disposal and the carrying amounts of the investment properties) are recognised in the profit and
loss.
Land is not depreciated. Depreciation on the investment properties is computed by asset classes using the straight-line method to
allocate their cost to their residual values over their estimated useful lives, as follows:
 Building core 50 years
 Building surfaces and finishes 30 years
 Building services 20 – 30 years
Impairment
Annual reviews of the carrying amounts of investment properties are undertaken for indicators of impairment. Where indicators of
impairment were identified, the recoverable amounts were estimated based on internal or external valuations undertaken. The cash
generating units (CGU) are individual properties. The recoverable amounts of the investment properties, being the higher of the fair
value less costs to sell and value-in-use, were predominantly determined using the fair value less costs to sell basis and were
estimated using the income capitalisation approach.
During the year management identified two (2022: two) properties with a carrying value of $13.67 million that had indicators of
impairment. Average market capitalisation rates appropriate to the properties range from 6.50% to 7.00% (2022: 6.25% to 6.75%).
Average market rent per square metre rates appropriate to the properties range from $341 to $358 (2022: $330 to $368).
Operating lease
The Group leases out its investment property. The Group has classified these leases as operating leases, because they do not
transfer substantially all of the risks and rewards incidental to the ownership of the assets.
Rental income recognised by the Group during 2023 was $2.49 million (2022: $1.24 million).
The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received after
the reporting date.
Group
Dollars In Thousands 2023 2022
Within 1 year 2,665 2,478
More than 1 year but within 2 years 2,675 2,660
More than 2 years but within 3 years 2,722 2,670
More than 3 years but within 4 years 2,760 2,715
More than 4 years but within 5 years 2,668 2,718
After 5 years 2,553 6,347
16,043 19,588
12.Cash and cash equivalents
Group
Dollars In Thousands 2023 2022
Cash 6,835 11,065
Call deposits 4,421 50,322
11,256 61,387
Cash and cash equivalents comprise cash balances and call deposits with a maturity of three months or less. Bank overdrafts that
are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and
cash equivalents for the purpose of the statement of cash flows.
13.Trade and other receivables
Group
Dollars In Thousands 2023 2022
Trade receivables 9,728 7,708
Less provision for doubtful debts (206)(82)
Other trade receivables and prepayments 10,869 6,810
20,391 14,436
Trade and other receivables are stated at their cost less impairment losses. The carrying amounts of the trade receivables, other
trade receivables, and prepayments are reviewed at each balance date to determine whether there is any indication of impairment.
The Group applies the simplified approach to providing for expected credit losses prescribed by NZ IFRS 9, which permits the use of
the lifetime expected credit loss provision for all trade receivables. The allowance for doubtful debts on trade receivables are either
individually or collectively assessed based on number of days overdue. The Group takes into account the historical loss experience
and incorporates forward looking information and relevant macroeconomic factors.

FIN 19
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
14.Interest-bearing loans and borrowings
This note provides information about the contractual terms of the Group’s interest-bearing loans and borrowings. For more information
about the Group’s exposure to interest rate and foreign currency risk, see Note 17.
Group
Dollars in
Thousands Currency
Interest
Rate Facility Total
31 December 2023 31 December 2022
Face Value
Carrying
Amount Face Value
Carrying
Amount
Revolving credit NZD
6.43% to
6.4525% 115,000 10,000 10,000 - -
Overdraft NZD 6.63% 5,000 1,968 1,968 - -
TOTAL 120,000 11,968 11,968 - -
Current 11,968 11,968 - -
Non-current - - - -
Terms and debt repayment schedule
The bank facilities are secured over hotel properties with a carrying amount of $75.33 million (2022: $37.70 million) – refer to Note 9.
The Group facilities were renewed on 22 December 2023 with a new maturity date of 31 January 2027. The Group has complied with
the bank covenants. The interest-bearing borrowings were classified as current as the Group expected to repay this within 3 months.
Interest-bearing loans and borrowings
Interest-bearing loans and borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial
recognition, interest-bearing loans and borrowings are stated at amortised cost with any difference between cost and redemption
value being recognised in the income statement over the period of the borrowings on an effective interest basis.
15.Deferred tax assets and liabilities
Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
Group
Assets Liabilities Net
Dollars In Thousands 2023 2022 2023 2022 2023 2022
Property, plant and
equipment (includes Right of
use assets)
- - 17,481 19,776 17,481 19,776
Investment property - - 345 157 345 157
Development properties (212)(388)- - (212) (388)
Accruals (474)(454)- - (474) (454)
Employee benefits (2,074) (1,715) - - (2,074) (1,715)
Lease liability (7,651) (7,193) - - (7,651) (7,193)
Trade and other payables (1,297) (1,342) - - (1,297) (1,342)
Net investment in foreign
operations - - 883 876 883 876
Net tax (assets) / liabilities (11,708) (11,092) 18,709 20,809 7,001 9,717
Movement in deferred tax balances during the year
Group
Dollars In Thousands
Balance
1 Jan 22
Recognised in
Income
Recognised
in equity
Balance
31 Dec 22
Property, plant and equipment (includes Right of use
assets) 16,765 3,011 -19,776
Investment property 30 127 -157
Development properties (457) 74 (5)(388)
Accruals (347)(104)(3)(454)
Employee benefits (1,563) (152)-(1,715)
Lease liability (4,568) (2,625)-(7,193)
Trade and other payables (1,431) 89 -(1,342)
Net investment in foreign operations 869 -7876
9,298 420 (1)9,717
Movement in deferred tax balances during the year
Group
Dollars In Thousands
Balance
1 Jan 23
Recognised in
Income
Recognised
in equity
Balance
31 Dec 23
Property, plant and equipment (includes Right of use
assets) 19,776 (2,295) -17,481
Investment property 157 188 -345
Development properties (388)179 (3)(212)
Accruals (454)(18)(2)(474)
Employee benefits (1,715) (359)-(2,074)
Lease liability (7,193) (458)-(7,651)
Trade and other payables (1,342) 45 - (1,297)
Net investment in foreign operations 876 - 7883
9,717 (2,718) 2 7,001

FIN 20
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
16.Trade and other payables
Group
Dollars In Thousands 2023 2022
Trade payables 2,790 1,688
Employee entitlements 7,652 7,371
Non-trade payables and accrued expenses 21,906 18,965
32,348 28,024
Trade and other payables are stated at amortised cost.
17.Financial instruments
The Group only holds non-derivative financial instruments which comprise cash and cash equivalents, trade and other receivables,
trade receivables due from related parties, related party advances, secured bank loans, trade and other payables and trade payables
due to related parties.
Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value through the income
statement, any directly attributable transaction costs. Subsequent to initial recognition non-derivative financial instruments are
measured as described in accounting policies below.
On initial recognition, a financial asset is classified as subsequently measured at: Amortised cost; FVOCI- debt investment; FVOCI-
equity investment; or FVTPL. Financial liabilities are classified as measured at amortised cost or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing
financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the
change in the business model.
A financial assets is measured at amortised cost if it meets both of the following conditions and not designated at FVTPL:
It is held within a business model whose objective is to hold assets to collect contractual cash flows: and
Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
Financial assets are derecognised if the Group’s contractual rights to the cash flows from the financial assets expire or if the Group
transfer the financial asset to another party without retaining control or substantially all risks and rewards of the asset. Financial
liabilities are derecognised if the Group’s obligations specified in the contract expire or are discharged or cancelled.
Exposure to credit, liquidity and market risks arises in the normal course of the Group’s business.
Liquidity risk
Liquidity risk represents the Group’s ability to meet its contractual obligations. The Group evaluates its liquidity requirements on an
ongoing basis. In general, the Group generates sufficient cash flows from its operating activities to meet its obligations arising from
its financial liabilities. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group’s reputation.
The following table sets out the undiscounted contractual and expected cash flows for all financial liabilities:
2023
2022
Dollars In Thousands
Statement of
Financial
Position
Contractual
Cash Out
Flows
6 Months or
Less
6-12
Months
1-2
Years
2-5
Years
More
than 5
Years
Interest-bearing loans and
borrowings 11,968 11,968 11,968 - - - -
Trade Payables 2,790 2,790 2,790 - - - -
Other payables 29,558 29,558 29,558 - - - -
Trade payables due to
related parties 2,318 2,318 2,318 - - - -
Total non-derivative liabilities 46,634 46,634 46,634 - - - -
Dollars In Thousands
Statement of
Financial
Position
Contractual
Cash Out
Flows
6 Months or
Less
6-12
Months
1-2
Years
2-5
Years
More than
5 Years
Interest-bearing loans and
borrowings - - - - - - -
Trade Payables 1,688 1,688 1,688 - - - -
Other payables 26,336 26,336 26,336 - - - -
Trade payables due to
related parties 2,248 2,248 2,248 - - - -
Total non-derivative
liabilities 30,272 30,272 30,272 - - - -

FIN 21
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
17.Financial instruments -continued
Credit risk
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are
performed on all customers requiring credit over a certain amount. The Group does not require collateral in respect of financial assets.
There are no significant aged debtors which have not been fully provided for.
Investments are allowed only in short-term financial instruments and only with counterparties (minimum rating of Moody’s Aa3)
approved by the Board, such that the exposure to a single counterparty is minimized.
At balance date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the
carrying amount of each financial asset in the statement of financial position. The maximum exposure to credit risk in Australia is
$11,000 (2022: $4,000). All other credit risk exposure relates to New Zealand.
Market risk
(i) Interest rate risk
In managing interest rate risks the Group aims to reduce the impact of short-term fluctuations on the Group’s earnings with an ongoing
review of its exposure to changes in interest rates on its borrowings, the maturity profile of the debt, and the cash flows of the
underlying debt. The Group maintains its borrowings at fixed rates on short term which gives the Group flexibility in the context of the
economic climate, business cycle, loan covenants, cash flows, and cash balances.
An increase of 1.0% in interest rates on deposits would have increased profit before tax for the Group in the current period by $1.43
million (2022: $1.58 million increase), assuming all other variables remained constant.
Effective interest and re-pricing analysis
In respect of income-earning financial assets and interest-bearing financial liabilities the following table indicates their effective
interest rates at the balance date and the periods in which they re-price.
* These assets / (liabilities) bear interest at a fixed rate
(ii) Foreign currency risk
The Group owns 100.00% (2022: 100.00%) of KIN Holdings Limited. Substantially all the operations of this subsidiary which includes
the Joint Venture is denominated in foreign currencies. The foreign currencies giving rise to this risk are Australian Dollars. The Group
has determined that the primary risk affects the carrying values of the net investments in its foreign operations with the currency
movements being recognised in the foreign currency translation reserves. The Group has not taken any instruments to manage this
risk. The Group is not exposed to any other foreign currency risks.
Capital management
The Group’s capital includes share capital and retained earnings.
The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business. The impact of the level of capital on shareholders’ return is also recognised and the Group recognises
the need to maintain a balance between the higher returns that might be possible with greater gearing and the advantages and
security afforded by a sound capital position.
The Group is not subject to any externally imposed capital requirements.
The allocation of capital is, to a large extent, driven by optimisation of the return achieved on the capital allocated.
The Group’s policies in respect of capital management and allocation are reviewed regularly by the Board of Directors. There were
no changes in the Group’s capital management policies during the year.
Group 2023 2022
Dollars In
Thousands
Effective
interest rate Total
6 months
or less
6 to 12
months
Effective
interest rate Total
6 months
or less
6 to 12
months
Note
Interest bearing
cash & cash
equivalents * 12
0.00% to
5.50% 11,256 11,256 -
0.00% to
4.25% 61,387 61,387 -
Short term bank
deposits *
0.85% to
6.05% 64,075 58,075 6,000
0.85% to
5.26% 111,946 49,479 62,467
Secured bank
loans * 14
6.43% to
6.4525% 10,000 10,000 -5.37%- - -
Bank overdrafts * 14 6.63% 1,968 1,968 -5.37%- - -

FIN 22
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
17.Financial instruments -continued
Fair values
The fair values together with the carrying amounts shown in the statement of financial position are as follows:
Group Carrying amount
Fair value
Carrying
amount Fair value
Dollars In Thousands Note 2023 2023 2022 2022
LOANS AND RECEIVABLES
Cash and cash equivalents 12 11,256 11,256 61,387 61,387
Short term bank deposits 64,075 64,075 111,946 111,946
Trade and other receivables 13 20,391 20,391 14,436 14,436
Advances to related parties 20 62,516 62,516 - -
OTHER LIABILITIES
Secured bank loans and overdrafts 14 (11,968) (11,968) - -
Trade and other payables 16 (32,348) (32,348) (28,024) (28,024)
Trade payables due to related parties 20 (2,318) (2,318) (2,248) (2,248)
111,604 111,604 157,497 157,497
Unrecognised (losses) / gains - - - -
Estimation of fair values
The following summarises the major methods and assumptions used in estimating the fair values of financial instruments reflected in
the table:
(a) Cash, accounts receivable, accounts payable and related party balances. The carrying amounts for these balances approximate
their fair value because of the short maturities of these items.
(b) Borrowings. The carrying amounts for the borrowings represent their fair values because the interest rates are reset to market
periodically, every 1 to 2 months.
18.Capital and land development commitments
As at 31 December 2023, the Group had entered into contractual commitments for capital expenditure, development expenditure,
and purchases of land. Development expenditure represents amounts contracted and forecast to be incurred in 2023 in accordance
with the Group’s development programme.
Group
Dollars In Thousands 2023 2022
Capital expenditure 1,330 2,660
Development expenditure 19,743 21,991
Land purchases 6,620 4,010
27,693 28,661
19.Related parties
Identity of related parties
The Group has a related party relationship with its parent, subsidiaries (see Note 20), joint venture and with its directors and executive
officers.
Transactions with key management personnel
Directors of the Company and their immediate relatives control nil (2022: Nil) of the voting shares of the Company. There were no
loans (2022: $nil) advanced to directors for the year ended 31 December 2023. Key management personnel include the Board and
the Executive Team.
Total remuneration for key management personnel
Group
Dollars In Thousands 2023 2022
Non-executive directors 350 322
Executive director 499 1,147
Executive officers 734 807
1,583 2,276
Non-executive directors receive director’s fees only. Executive director and executive officers receive short-term employee benefits
which include a base salary and an incentive plan. They do not receive remuneration or any other benefits as a director of the Parent
Company or its subsidiaries. Directors’ fees are included in “administration expenses” (see Note 2) and remuneration for executive
director and executive officers are included in “personnel expenses” (see Note 3).
20.Group entities
Control of the Group
Millennium & Copthorne Hotels New Zealand Limited is a 75.78% (2022: 75.78%) owned (economic interests from both ordinary and
preference shares) subsidiary of CDL Hotels Holdings New Zealand Limited which is a wholly owned subsidiary of Millennium &
Copthorne Hotels Ltd in the United Kingdom. The ultimate parent company is Hong Leong Investment Holdings Pte Ltd in Singapore.

FIN 23
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
20.Group entities - continued
At balance date there were related party advances owing from/(owing to) the following related companies:
Group
Dollars In Thousands Nature of balance 2023 2022
Trade payables and receivables due to related parties
Millennium & Copthorne Hotels Limited Recharge of expenses (1,772) (1,799)
Marquee Hotel Holdings Pty Ltd Interest bearing advance 19,086 -
Marquee Hotel Holdings Pty Ltd Interest free advance 43,132 -
Marquee Hotel Holdings Pty Ltd Interest receivable 43 -
CDL Hotels Holdings New Zealand Limited Recharge of expenses -(82)
CDLHT (BVI) One Ltd Recharge of expenses 255 -
CDLHT (BVI) One Ltd Rent (546)(367)
60,198 (2,248)
No debts with related parties were written off or forgiven during the year. Interest at 6.43% was charged on interest bearing advance
during 2023. No interest was charged for the other payables or on the interest free advance. The related party advances to Marquee
Hotel Holdings Pty Ltd are unsecured.
At the balance sheet date, there was an amount owing to CDLHT (BVI) One Ltd of $291,000 (2022 $367,000) being the net amount
of rent payable with respect to the leasing of the property and the recoverable amount in relation to expenses paid on behalf.
During 2023, the Group had the following transactions with related parties:
Group
Dollars In Thousands Nature of balance 2023 2022
Marquee Hotel Holdings Pty Ltd Interest receivable 43 -
CDLHT (BVI) One Ltd
Management, franchise and
incentive income 960 1,160
M&C Reservation Services Ltd (UK) Management and marketing support (161)(157)
CDL Hotels Holdings New Zealand Limited Accounting support fee received 60 60
Subsidiary companies
The principal subsidiary companies of Millennium & Copthorne Hotels New Zealand Limited included in the consolidation as at 31
December 2023 are:
Principal Activity
Principal
Place of
Business
Group
Holding %
2023
Group
Holding %
2022
Context Securities Limited Investment Holding NZ 100.00 100.00
Copthorne Hotel & Resort Bay of Islands Joint Venture Hotel Operations NZ 49.00 49.00
Quantum Limited Holding Company NZ 100.00 100.00
100% owned subsidiaries of Quantum Limited are:
Hospitality Group Limited Holding Company NZ
100% owned subsidiaries of Hospitality Group Limited
are:
Hospitality Leases Limited
Lessee Company/Hotel
Operations NZ
QINZ Anzac Avenue Limited Hotel Owner NZ
Hospitality Services Limited
Hotel
Operations/Franchise
Holder NZ
CDL Investments New Zealand Limited Holding Company NZ 65.54 65.99
100% owned subsidiaries of CDL Investments New
Zealand Limited are:
CDL Land New Zealand Limited
Property Investment and
Development NZ
KIN Holdings Limited Holding Company NZ 100.00 100.00
100% owned subsidiaries of KIN Holdings Limited are:
Kingsgate Investments Pty Limited
Residential Apartment
Developer Australia
Kingsgate Holdings Pty Limited Investment in JV Australia
All of the above subsidiaries have a 31 December balance date.
Although the Group owns less than half of the voting power of the Copthorne Hotel & Resort Bay of Islands Joint Venture, it is able
to control the financial and operating policies of the Copthorne Hotel & Resort Bay of Islands Joint Venture so as to obtain benefits
from its activities by virtue of an agreement with the other parties of the Joint Venture. Therefore, the results of the Joint Venture are
consolidated from the date control commenced until the date control ceases.
Subsidiaries
Subsidiaries are entities controlled by the Company. The Company controls an entity when it is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial
statements of subsidiaries are included in the financial statements from the date that control commences until the date that control
ceases.

FIN 24
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
20.Group entities - continued
Transactions eliminated on consolidation
Intra-group balances and any unrealised gains and losses or income and expenses arising from intra-group transactions, are
eliminated in preparing the financial statements. Unrealised gains arising from transactions with jointly controlled entities are
eliminated to the extent of the Group’s interest in the entity. Unrealised losses are eliminated in the same way as unrealised gains,
but only to the extent that there is no evidence of impairment.
21.Accounting estimates and judgements
Management discussed with the Audit Committee the development, selection and disclosure of the Group’s critical accounting policies
and estimates and the application of these policies and estimates.
Critical accounting judgements in applying the Group’s accounting policies
Certain critical accounting judgements in applying the Group’s accounting policies are described below.
Development property
The Group is also exposed to a risk of impairment to development properties should the carrying value exceed the net realisable
value due to market fluctuations in the value of development properties. However, there is no indication of impairment as the net
realisable value of development properties significantly exceed the carrying value determined by an independent registered valuer.
The valuer adopts the Sales Comparison Approach to determine rates per hectare/per square metre for block land holdings in addition
to recent section sales to derive the gross realisation values. The net realisable values are determined from gross realisation values
after deducting appropriate selling costs.
For residential land under development and is yet to commence development in the short term, the valuer adopts the Residual
Subdivision Approach. This approach considers the gross realisation values of the sections less costs associated with development
including GST, sales commissions, legal fees, civil and development costs including Council contributions, professional fees, and
contingency allowances. In addition, holding costs are deducted for the estimated timing of development and sell down periods.
In both valuation approaches, the valuer makes assumptions relating to section prices, sell down periods, consumer confidence,
unemployment rates, interest rates, and external economic factors. These assumptions are sensitive to economic factors such as net
migration, Official Cash Rate set by the Reserve Bank, inflation, residential market activity, and business confidence.
Investment property
The Group is also exposed to a risk of impairment to investment properties should the carrying value exceed the recoverable amount
due to market fluctuations in the value of investment properties. However, there is no indication of impairment as the recoverable
amount determined by an independent registered valuer significantly exceeds the carrying value of investment properties. In
determining the recoverable amount, the valuer adopts the Income Capitalisation Approach whereby the assessed market rent for
each asset is capitalised in perpetuity from the valuation date at an appropriate capitalisation rate. The adopted capitalisation rate
reflects the nature, location, and tenancy profile of the property together with current market investment criteria as evidenced by
recent sales. The recoverable amount is sensitive to movements in the adopted capitalisation rate and the market rent.
Property, plant, and equipment
The Group determines whether tangible fixed assets are impaired when indicators of impairments exist or based on the annual
impairment assessment. The annual assessment requires an estimate of the recoverable value of the cash generating units to which
the tangible fixed assets are allocated, which is predominantly at the individual hotel site level. An internal review is performed which
requires management to determine the recoverable amount by estimating future cash flows to be generated by the cash generating
units. External valuations are undertaken on the hotel assets on a triennial cycle. Estimation of the recoverable amount of the hotel
assets is done with reference to fair value determined by the external valuer, using the income approach and adjusted for costs to
sell, which requires estimation of future cash flows of a third-party efficient operator, the time period over which they will occur, an
appropriate discount rates, terminal capitalisation rates and growth rates. The Directors consider that the assumptions made
represent their best estimate, and that the discount rate and terminal capitalisation rate used are appropriate given the risks
associated with the specific cash flows.
22. Lease
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in NZ IFRS 16.
This policy is applied to contracts entered into, on or after 1 January 2019.
At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the
contract to each lease component on the basis of its relative stand-alone prices.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset was
recognised at cost on initial recognition, which comprised the initial amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right of use asset is depreciated using the straight-line method from the commencement date to the end of the lease term,
unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-
use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the
useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-
of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.

FIN 25
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
22.Lease -continued
22(a) Lease Liability
The expected contractual undiscounted cash outflows of lease liabilities are as follows:
Group
Dollars In Thousands 2023 2022
Less than 6 months 1,081 1,032
More than 6 months but within 12 months 1,079 939
More than 1 year but within 2 years 2,253 1,870
More than 2 years but within 5 years 10,507 8,674
After 5 years 91,584 93,857
106,504 106,372
The Group restated the comparative amounts (31 December 2022) in respect of the undiscounted lease commitment as the prior
year was presented on a discounted basis. This has been corrected in the above note. The error has no impact over the profit or
loss, financial position, and cashflow.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing
rate. Generally, the Group uses its incremental borrowing rate as the discount rate.
The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes
certain adjustments to reflect the terms of the lease and type of the asset leased.
Lease payments included in the measurement of the lease liability comprise the following:
- fixed payments, including in-substance fixed payments;
- variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement
date;
- amounts expected to be payable under a residual value guarantee; and
- the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional
renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease
unless the Group is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in
future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected
to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase,
extension or termination option or if there is a revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use
asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The Group presents right-of-use assets that do not meet the definition of investment property in ‘property, plant and equipment’ and
lease liabilities in the Statement of Financial Position.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases,
including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line
basis over the lease term.
22(b) Schedule of right-of-use assets by class
Dollars In
Thousands Lease term
Carrying
value @
01/01/23
Depreciation
on right-of-
use asset
for the year
Addition
during the
year
Disposal
during the
year
Movement in
foreign
exchange
Carrying
value @
31/12/23
Land sites at
hotels
Renewal at 21
year cycles for
perpetuity 21,407 (354)-(731)- 20,322
Corporate office
building and
hotel carpark
Between 5 to
23 years 3,758 (284)2,253- - 5,727
Motor vehicles
Between 12 to
45 months 471 (212)424(2)- 681
Totals 25,636 (850) 2,677 (733) - 26,730

FIN 26
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
22.Lease -continued
22(c) Schedule of lease liabilities by class
Dollars In
Thousands Lease term
Carrying
value @
01/01/23
Interest
expense
for the year
Addition
during the
year
Disposal
during the
year
Lease
payment for
the year
Carrying
value @
31/12/23
Land sites at
hotels
Renewal at 21
year cycles for
perpetuity 21,704 1,309 -(731) (1,351) 20,931
Corporate office
building and
hotel carpark
Between 5 to
23 years 3,507 474 2,253 - (546)5,688
Motor vehicles
Between 12 to
45 months 480 69 424 (2) (264)707
Totals 25,691 1,852 2,677 (733) (2,161) 27,326
22(d) Exemptions and exclusions
Exempted were motor vehicle leases shorter than 12 months and leased assets with value below $8,000. Excluded were variable
rentals and lease payments. The following table summarizes these leases by class:
Dollars In Thousands
Expense
recognised in
the Profit & Loss
Lease
commitments @
31/12/23
Lease
commitments
within one year
Lease
commitments
between one
and 5 years
Lease
commitments
more than 5
years
Short term leases <12
months 101 94 94 - -
Low value leased assets 2 6 1 5 -
Variable lease payments
under service and
management contracts 591 14,705 577 2,309 11,819
Total 694 14,805 672 2,314 11,819
23. New standard and interpretations issued but not yet adopted
A number of amended standards are effective for annual periods beginning after 1 January 2024 and earlier application is permitted.
The Group has not early adopted any new or amended standards in preparing the consolidated financial statements; refer to
Significant Accounting Policies, part (c). The Group will be adopting the amended standards from 1 January 2024.
The following amended standards are not expected to have a significant impact on the Group’s consolidated financial statements
and only affect disclosure:
Amendments to NZ IAS1 Non-current Liabilities with Covenants.
Amendments to NZ IFRS 16 Lease Liability in a Sale and Leaseback.
Amendments to NZ IAS 7 Supplier Finance Arrangements.
Amendments to NZ IFRS 7 Supplier Finance Arrangements.
Amendments to FRS-44 New Zealand Additional Disclosures of Fees for Audit Firms’ Services.
24. Investment in joint venture
A joint venture is an arrangement in which the Group has joint control, over the financial and operating policies. They are accounted
for using the equity method. The financial statements include the Group’s share of the income, expenses and reserves of the joint
venture from the date that joint control commences until the date that joint control ceases. When the Group’s share of losses exceeds
its interest in an equity accounted investee, the carrying amount of that interest (including any long-term investments) is reduced to
nil and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments
on behalf of the joint venture.
During the year, the Group through Kingsgate Holdings Pty Limited (100% subsidiary) formed a 50:50 joint venture with its Parent
Company to acquire the leasehold assets and the freehold assets of the Sofitel Brisbane Central hotel in Queensland, Australia.
The joint venture is Marquee Hotel Holdings Pty Ltd Limited. Within the Marquee Hotel Holdings group, there are six wholly owned
entities. Marquee Hotel Holdings group completed the acquisition of the Sofitel Brisbane Central on 15 December 2023. The hotel
is managed by an external hotel management group.
The Group’s share of profit in its joint venture for the year was $73,065.

FIN 27
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
24. Investment in joint venture -continued
Principal Activity
Principal
Place of
Business
Group
Holding
%
2023
Marquee Hotel Holdings Pty Limited Investment Holding Australia 50.00
100% owned subsidiaries of Marquee
Hotel Holdings Pty Limited are:
Marquee Brisbane Hotel Pty Limited Trustee Company of Marquee Brisbane Hotel Trust Australia
Marquee Brisbane Hotel Trust Lessee of leasehold assets expiring 30 December 2057 Australia
Marquee Brisbane Hotel 2 Pty Limited Trustee Company of Marquee Brisbane Hotel 2 Trust Australia
Marquee Brisbane Hotel 2 Trust Lessee of leasehold assets expiring 24 May 2120 Australia
Marquee Hotel Operations Pty Limited Trustee Company of Marquee Hotel Operations Pty Trust Australia
Marquee Hotel Operations Pty Trust Hotel Assets and Operations Australia
Summary financial information for joint venture, not adjusted for the percentage ownership held by the Group:
Group
Dollars In Thousands 2023
Non-current assets

202,650
Current assets 27,477
Non-current liabilities -
Current liabilities (142,241)
Net assets (100%) 87,886
Group’s share (50%) 43,943
The current assets balance of the joint venture includes a cash and cash equivalents balance of $26.12m. The current liabilities
balance of the joint venture includes balances owing to shareholders of $124.5m.
Group
2023
Revenue 2,142
Operating profit/(loss) (175)
Interest income 384
Income tax expense (63)
Profit for the year (100%) 146
Group’s share of profit (50%) 73
Movements in the carrying value of joint venture:
Group
2023
Balance at 1 January
-
Purchase of investment
44,048
Share of profit for the year
73
Foreign exchange adjustments
(178)
Balance at 31 December
43,943
25. Non-controlling interests (“NCI”)
The following subsidiary has material NCI.
Principal Activity
Principal
Place of
Business
Group
Holding %
2023
Group
Holding %
2022
CDL Investments New Zealand Limited “CDI”
Property Investment and
Development NZ 34.46 34.01

FIN 28
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
25. Non-controlling interests (“NCI”) - continued
The following is the summarised financial information for CDL Investments New Zealand Limited and subsidiary. The information is
before intercompany eliminations with other companies in the Group.
CDI Group
Dollars In Thousands 2023 2022
Revenue 30,779 67,098
Profit after tax 13,463 31,189
Profit attributable to NCI 4,639 10,546
Other comprehensive income - -
Total comprehensive income 13,463 31,189
Other comprehensive income attributable to NCI
4,639 10,546
Current assets
80,244 90,489
Non-current assets
238,984 223,209
Current liabilities
(5,162) (4,606)
Non-current liabilities (341)(211)
Net assets 313,725 308,881
Net assets attributable to NCI 108,110 105,050
CDI Group
Dollars In Thousands 2023 2022
Cash inflow/(outflow) from operating activities (10,309) 11,224
Cash inflow/(outflow) from investing activities (10,325) (23,666)
Cash inflow/(outflow) from financing activities (8,874) (8,916)
Net increase in cash and cash equivalents (29,508) (21,358)
Dividends paid to NCI during the year 3,437 3,392
26. Subsequent events
The Group’s subsidiary, CDL Investments New Zealand Limited, settled the purchase of 10.8 hectares of land in Nelson for $6.62m
(Note 18) during January 2024. The settlement will be recognised as an increase in land classified as development property in 2024.
The Group fully repaid the bank loan of $11.97m on 22 January 2024.
On 23 February 2024, an ordinary dividend of 3.0 cents per qualifying share and a supplementary dividend of 0.0053 cents per
qualifying share were declared by the Directors. Details are in Note 7.
On 23 February 2024, an ordinary dividend of 3.5 cents per qualifying share was declared by the Directors of CDL Investments New
Zealand Limited.

© 2024 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited
by guarantee. All rights reserved.

Independent Auditor’s Report
To the shareholders of Millennium & Copthorne Hotels New Zealand Limited
Report on the audit of the consolidated financial statements
Opinion
In our opinion, the consolidated financial statements
of Millennium & Copthorne Hotels New Zealand
Limited (the ’company’) and its subsidiaries (the
'group') on pages 1 to 28 present fairly, in all material
respects:
i. the group’s financial position as at 31 December
2023 and its financial performance and cash flows
for the year ended on that date;
in accordance with New Zealand Equivalents to
International Financial Reporting Standards issued
by the New Zealand Accounting Standards Board
and International Financial Reporting Standards
issued by the International Accounting Standards
Board.
We have audited the accompanying consolidated
financial statements which comprise:
— the consolidated statement of financial position
as at 31 December 2023;
— the consolidated income statement, statements
of comprehensive income, changes in equity and
cash flows for the year then ended; and
— notes, including a summary of significant
accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the group in accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the
New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence
Standards) (‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the Auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.
Our firm has also provided other services to the group in relation taxation compliance, taxation advisory and
strategy support services. Subject to certain restrictions, partners and employees of our firm may also deal with
the group on normal terms within the ordinary course of trading activities of the business of the group. These
matters have not impaired our independence as auditor of the group. The firm has no other relationship with, or
interest in, the group.

Materiality

The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and on the consolidated financial statements as a whole. The materiality for the consolidated financial statements

as a whole was set at $4.6m determined with reference to a benchmark of group total assets. We chose the
benchmark because, in our view, this is a key measure of the group’s performance.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the consolidated financial statements in the current period. We summarise below those matters and our key audit
procedures to address those matters in order that the shareholders as a body may better understand the process
by which we arrived at our audit opinion. Our procedures were undertaken in the context of and solely for the
purpose of our statutory audit opinion on the consolidated financial statements as a whole and we do not express
discrete opinions on separate elements of the consolidated financial statements.
The key audit matter How the matter was addressed in our audit
Impairment of hotel assets
Refer to Note 9 to the Financial Report.
Impairment of hotel assets is a key audit matter
given the magnitude of the balance (being 35%
of total assets), conditions that indicate
potential impairment and the judgement
required by us in assessing the group’s key
valuation assumptions to determine the value
of specific hotel assets.
The recoverable amount of the hotel assets
was determined by an external valuer (for
selected hotels) and the group’s internal
discounted cash flow models. We focussed on
the key assumptions in the valuation models
including the projected occupancy rates,
average daily room rates (ADRs), projected
direct costs, discount rate and terminal
capitalisation rate. Due to the ongoing recovery
of international travel from COVID-19 and
increased funding costs, the level of estimation
uncertainty in relation to the projected
occupancy rates and ADRs is still significant.
This uncertainty is also considered in
determining discount rates and terminal
capitalisation rates as well as considering
recent transactions. These conditions
necessitate additional scrutiny by us, as a
change in assumptions in the impairment
models could have a material impact on the
carrying value of hotel assets.
Our audit procedures included:
- Evaluating the group’s determination of the appropriate cash-
generating unit (“CGU”) for impairment testing purposes.
- Assessing each hotel asset for impairment indicators
including consideration of changes in land lease and other
contractual arrangements, changes in economic conditions
and financial performance, physical quality of the underlying
asset and capital expenditure requirements.
- Assessing the scope of work performed, competency,
professional qualifications, independence and experience of
the external valuer engaged by the group. This included
holding discussions with the external valuer.
- Working with our internal valuation specialists to assess the
external valuer’s approach, the appropriateness of the
valuation methodology and compliance with property
valuation standards.
- Challenging the group’s key assumptions (occupancy rates,
ADRs, projected direct costs, discount rates and terminal
capitalisation rates) included in the external valuations and
the group’s internal discounted cash flow models by:
• comparing to externally derived data from hotel
industry reports and other market data;
• assessing the relevance and reasonableness of the
discount rates, terminal capitalisation rate and price per
room with reference to rates used in the prior year
external valuations and recent market evidence
presented by the valuer;
• performing a sensitivity analysis over occupancy rates,
projected ADRs, discount rates and terminal
capitalisation rates to understand and identify the hotel
assets most sensitive to impairment and focus our
further procedures.
- Assessing the accuracy of the group’s and external valuer’s
previous forecasts to inform our evaluation of the forecasts

The key audit matter How the matter was addressed in our audit
incorporated into the valuation models. This included
comparing actual occupancy rates, ADRs and direct costs to
the assumptions projected over the forecast period and used
in the prior period valuations.
- Assessing the adequacy of the disclosures made in the
financial statements by using our understanding obtained
from our testing and against the requirements of the
accounting standards.
We did not identify material exceptions from procedures
performed, and the financial statement disclosure is
consistent with the requirements of the accounting standards.
Capitalisation and allocation of development costs
Refer to Note 10 to the Financial Report.
The group’s development property comprises
land and costs incurred to develop land into
subdivisions and individual properties for sale.
The development properties represent 33% of
total assets on the consolidated statement of
financial position.
The capitalisation and allocation of
development costs is a key audit matter as
determining whether to capitalise or expense
costs relating to development of the land is
subjective as it depends whether the costs
enhance the land or maintain the current value.
In addition, there is significant judgement in
determining whether obligations exist for future
costs and how to allocate capitalised
development costs to individual properties or
stages.
The key judgements used in this determination
are:
• Whether costs are eligible for
capitalisation under the relevant
accounting standards
• the allocation of capitalised costs to
the individual projects, stages and
land lots and the associated
recognition of cost of sales
• Whether a capitalised cost and the
associated
liability for future
obligations should be recorded under
the relevant accounting standard.
Our audit procedures included:
- Evaluating the group’s accounting policy for capitalisation of
development costs using the criteria in the accounting standard.
- Developing an understanding of the key controls over the cost
capitalisation and allocation process.
- Agreeing a sample of capitalised development costs to
supporting documentation. For each selected transaction we:
• Considered the nature of the costs capitalised and evaluated
whether they are eligible for capitalisation under the relevant
accounting standard.
• Assessed the appropriateness of allocation to the individual
project stages and land lots.
- Agreeing a sample of land acquisitions to sales and purchase
agreements, settlement document and cash payment.
- Performing analytical procedures in relation development
property costs of sales to assess that margins recognised
between periods were appropriate, including considering
alternative methods of allocation.
- Evaluating the reasonableness of the group’s judgement to
record liabilities for future obligations and that these have been
appropriately measured and recorded in accordance with the
applicable accounting standard.
- Assessing disclosures included in the consolidated financial
statements in respect of the development properties using our
understanding obtained from our testing and against the
requirements of the accounting standards.
Our testing did not identify any material exceptions related to
capitalised development costs, the allocation of those costs to
individual project stages and the recognition of future development
cost obligations.

Other information


The Directors, on behalf of the group, are responsible for the other information included in the entity’s Annual
Report and Annual Climate Statement (prepared in accordance with the Aotearoa New Zealand Climate
Standards). Other information in the Annual Report includes the Chairmans Review, Managing Director’s Review,
disclosures relating to Corporate Governance, Financial Summary, and the other information included in the Annual
report. The Annual Climate Statement discloses information about the effects of climate change on the entity’s
business. Our opinion on the consolidated financial statements does not cover any other information and we do
not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements our responsibility is to read the Annual Report
and Annual Climate Statement when they become available and consider whether the other information it contains
is materially inconsistent with the consolidated financial statements, or our knowledge obtained in the audit, or
otherwise appear misstated. If based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have received the Chairman’s review
and have nothing to report in regard to it. The Annual Report and Annual Climate Statement are expected to be
made available to us after the date of this Independent Auditor's Report and we will report the matters identified, if
any, to those charged with governance.

Use of this independent auditor’s report

This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been
undertaken so that we might state to the shareholders those matters we are required to state to them in the
independent auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the shareholders as a body for our audit work, this independent
auditor’s report, or any of the opinions we have formed.

Responsibilities of the Directors for the consolidated
financial statements

The Directors, on behalf of the company, are responsible for:
— the preparation and fair presentation of the consolidated financial statements in accordance with generally
accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial
Reporting Standards) and International Financial Reporting Standards issued by the New Zealand
Accounting Standards Board;
— implementing necessary internal control to enable the preparation of a consolidated set of financial
statements that is free from material misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the consolidated
financial statements
Our objective is:
— to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error; and
— to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with ISAs NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of our responsibilities for the audit of these consolidated financial statements is located at
the External Reporting Board (XRB) website at:
http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/
This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this independent auditor's report is Geoff Lewis.
For and on behalf of
KPMG
Auckland
26 February 2024

---

Distribution Notice





Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer
Millennium & Copthorne Hotels New Zealand
Limited
Financial product name/description
Ordinary Shares
NZX ticker code
MCK
ISIN (If unknown, check on NZX
website)
NZMCKE0004S9
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X
Quarterly
Half Year Special
DRP applies
Record date
10 May 2024
Ex-Date (one business day before the
Record Date)
9 May 2024
Payment date (and allotment date for
DRP)
17 May 2024
Total monies associated with the
distribution
1

$3,167,348.70
Source of distribution (for example,
retained earnings)
Retained earnings
Currency
NZD
Section 2: Distribution amounts per financial product
Gross distribution
2

$0.04166667
Gross taxable amount
3

$0.04166667
Total cash distribution
4

$0.03000000
Excluded amount (applicable to listed
PIEs)
n/a
Supplementary distribution amount
$0.00529412
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed
Fully imputed
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.01166667
Resident Withholding Tax per
financial product
$0.00208333
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
Not applicable
Start date and end date for
determining market price for DRP
Date strike price to be announced (if
not available at this time)
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
DRP strike price per financial product
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Takeshi Ito (Company Secretary)
Contact person for this
announcement
Takeshi Ito (Company Secretary)
Contact phone number
09 353 5005
Contact email address
takeshi.ito@millenniumhotels.com
Date of release through MAP

26/02/2024





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

---

Distribution Notice





Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer
Millennium & Copthorne Hotels New Zealand
Limited
Financial product name/description
Redeemable Preference Shares
NZX ticker code
MCK
ISIN (If unknown, check on NZX
website)
NZMCKE0005S6
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X
Quarterly
Half Year Special
DRP applies
Record date
10 May 2024
Ex-Date (one business day before the
Record Date)
9 May 2024
Payment date (and allotment date for
DRP)
17 May 2024
Total monies associated with the
distribution
1

$1,582,186.29
Source of distribution (for example,
retained earnings)
Retained earnings
Currency
NZD
Section 2: Distribution amounts per financial product
Gross distribution
2

$0.04166667
Gross taxable amount
3

$0.04166667
Total cash distribution
4

$0.03000000
Excluded amount (applicable to listed
PIEs)
n/a
Supplementary distribution amount
$0.00529412
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed
Fully imputed
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.01166667
Resident Withholding Tax per
financial product
$0.00208333
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
Not applicable
Start date and end date for
determining market price for DRP
Date strike price to be announced (if
not available at this time)
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
DRP strike price per financial product
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Takeshi Ito (Company Secretary)
Contact person for this
announcement
Takeshi Ito (Company Secretary)
Contact phone number
09 353 5005
Contact email address
takeshi.ito@millenniumhotels.com
Date of release through MAP

26/02/2024





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

---

M Social Auckland
Year End 31 December 2023

Revive and Thrive Strategy
Be the preferred hotel choice for travellers in our region, grow our footprint and
deliver value for our guests, our team and our shareholders
People
Deliver memorable
experiences for our guests
Build careers that our
people love to talk about
Product
Protect and expand our
hotel presence in New
Zealand & Australia
Invest in a portfolio of real
estate or development
projects -and manage our
investment in CDL
Investments
Profit
Drive improving revenue
and profit
Leverage our strong balance
sheet to achieve growth
Deliver long term value to
our shareholders
Short term: Reviving our business for tourism market momentum post-Covid
Medium to long term: Growth of our hotel network in New Zealand and Australia

M Social Auckland
3
Lookback: Five yearimpact
Market Peak
Nov 2021
$920,000
Apr 2023
$780,000
-15.6%
NZ Hotel Operations
•Significantly impacted 2020 to
2022, revive in 2023
•82% arrivals recovery from late
2022 as borders re-opened
•Inflationary and labour market
challenges from 2022 into 2023
CDL Investments
•Benefitted from rising property
values but 2023 weakness in
property sales
•Macro-trends - Robust demand
for land underpinned by
undersupply
Prior to Covid, MCK’s hotel
operations were providing over
50% of revenue

NZ Hotel Operations
•Recovery as borders open
•Returned to profit
CDL Investments
•Long term macro trends but short
term cool-down on property sales
•Muted FY23 contribution
Australia
•Apartment sales muted with ongoing
rental income

Hotel Operations
•Beachhead in Australia established with
unique opportunity settled
CDL Investments
•Develop section inventory & pipeline of
developments
Australia
•Apartment sales ongoing
Utilised Bank Facility for capital investment

Hotels revival:
•Fluctuations in demand throughout the
year as locations return to normal
operations
•Adjustments required with increased
competition and rooms availability
•Shortage in staffing levels across hotels,
reduced ability to sell and service rooms
during peak period

1H22 (Jan to June):
•Impact of Covid – Omicron lockdowns & underpinned
by MIQ
2H22 (June to Dec):
•Borders re-opened June 2022
•Resurgence of leisure and conference business
•Re-opening of M Social Auckland
1H23 (Jan to June):
•Moving to reviving ‘business as usual’ environment
•Impacted by staffing shortages & weather (Cyclone Gabriel)
•Still below 2019 base line levels
2H23 (June to Dec):
•FIFA Women’s World Cup team & media hosting
•Re-open Millennium Hotel Queenstown refurbished rooms,
accessing conference business

AUSTRALIAN STRATEGIC FOCUS
•Apartment vacancy to allow for apartment sales
•Maximise sales of remaining Sydney apartments
•Brisbane central hotel settlement in December
2023 by means of shares and loan into 50/50 JV

CDL Investments
Prestons Park, Christchurch
Tram Valley Rd Subdivision
CDLI STRATEGIC FOCUS
•Maximise sales in areas with strong demand
•Develop section inventory & pipeline of
developments
•Increased focus on commercial areas to add value

Revive and Thrive FY23 to FY26
Key initiatives
FY23
Revival
•Bring rooms back online
•Build occupancy back to
former levels
•Attract and retain full
complement of staff
•Marketing and sales activity to
drive guest visits
•Continued investment in
refurbishment and upgrades
FY23 -24
Early StageGrowth
•Identify opportunities to fill
the gaps in the New Zealand
hotel network
•Build beachhead in Australia
•Formalise strategy for
sustainable operations
•Continued investment in
refurbishment and upgrades
FY25 -26
Accelerate Growth
•Optimise hotel network and
under-utilised land and
buildings
•Expand footprint in Australia
•Continued investment in
refurbishment and upgrades

Key hotel property projects underway
Refurbishment
Millennium Hotel
Queenstown
Upcoming
refurbishment
Copthorne Hotel &
Resort Bay of Islands
Refurbishment
Millennium Hotel
Rotorua
Recladding, reglazing &
air-conditioning
Copthorne Hotel
Palmerston North

Copthorne Hotel and Resort Queenstown Lakefront
Hotel land and buildings carried at
historic cost including refurbishments
less depreciation
Investment Properties consist of
commercial warehousing & retail
shops –carried at cost less
depreciation
Development land –carried at the
lower of cost, including acquisition,
development and holding costs.
Property revaluations not recognized
on Balance Sheet -based on external
and internal valuations and exclude
any taxation impacts
12
Property portfolio movement
649.1

Salt Restaurant, Millennium Hotel New Plymouth, Waterfront
13
APPENDICES

Save the Kiwi –to be inserted

Our business
NZ Hotel brands:
•Lifestyle – M Social
•Premium - Millennium Collection
•Comfortable - Copthorne incl Kingsgate
CDL Investments New Zealand:
•Land developments
•Projects in progress across New Zealand
Australia:
•Zenith Residences – Exit Strategy
•JV - Sofitel Brisbane Central
•Own and operate hotels across New
Zealand; building beachhead in Australia
•Experienced executive team with new
leadership
•~1,200 team members across New
Zealand and Australia
•Own 66% shareholding in CDL
Investments NZ – residential and
commercial land development
•NZX-listed. Board with independent
Chairman, as well as representation from
majority shareholder
•MCK is 71% owned by CDL Hotels
Holdings, a 100% subsidiary of Hong
Leong Group

Our Hotel Networks
18hotels in NZ
Opportunity to fill in the network
2,250 rooms per night owned and
managed
1 hotel in Australia
*
Beachhead established.
Significant opportunity to build
footprint
*50/50 Joint Venture of Brisbane Central Hotel – with
Hotel Management Agreement

CDL Investments NZ (NZX: CDI)
66% shareholding
Residential & commercial land
development
4x Commercial properties -
2x Warehouses (NLA 16,402 m2 WALE 6.68 years )
2x Retail (NLA 3,411 m2 WALE 5.52 years)
Projects across New Zealand
Provides MCK with a diversified property
portfolio and revenue stream

Salt Restaurant, Millennium Hotel New Plymouth, Waterfront
Climate impact is expected to affect the hospitality and accommodation sectors in a
variety of ways. Like all hotel owner / operators across the world, we are aware of the
importance of reviewing our operations to see how climate-positive improvements
can be incorporated in all aspects.
One example is that MCK's electricity supplier is Meridian Energy who state that all of
the electricity they generate comes from renewable sources such as wind power,
hydro and solar power.
MCK has had a basic sustainability policy in place for many years is moving to do more
and set tangible goals for emissions and carbon reduction over the next few years.
In 2023, MCK joined ToituEnvirocareto assist with its sustainability pathway and is
now a Toitucarbonreducecertified organisation in line with ISO 14064-1.
19
Hotel Environmental Strategies

EXPLORE OUR BRANDS
Contemporary hotels for the curious, the
explorers and those who thrive on new
experiences. Functionally chic, the Lifestyle
brand of hotels are designed for all travellers.
Brands in the Lifestyle collection include:
M Social Hotels.
The travellers’ choice in gateway cities.
The Millennium brand of hotels are created with
timeless elegance and famed for their
conference and banquet offerings, world-class
facilities and the ultimate in personalized,
gracious service. They are perfect for corporate,
leisure, meetings and conventions.
Brands in the Premium collection include:
Grand Millennium Hotels and Millennium Hotels.
Comfortable hotels at a comfortable price. This
brand of hotels are firmly established as a
preferred choice for both business and leisure
travellers in providing comfortable service.
Brands in the Comfortable collection include:
Copthorne Hotels and Kingsgate Hotels.
MHR New Zealand reference

DISCLAIMER
This announcement has been prepared by Millennium & Copthorne Hotels New Zealand Limited ("M&C Hotels"). The details in this announcement provide general information only. It is
not intended as investment, legal, tax or financial advice or recommendation to any person and must not be relied on as such. You should obtain independent professional advice prior
to making any decision relating to your investment or financial needs.
All references to $ are to New Zealand dollars unless otherwise indicated. Percentages may be subject to rounding.
This announcement may contain forward-looking statements. Forward-looking statements can include words such as “expect”, “intend”, “plan”, “believe”, “continue” or similar words in
connection with discussions of future operating or financial performance or conditions. The forward-looking statements are based on management's and directors’ current expectations
and assumptions regarding the M&C Hotels business, assets and performance and other future conditions, circumstances and results. As with any projection or forecast, forward-looking
statements are inherently susceptible to uncertainty and to any changes in circumstances. M&C Hotels actual results may vary materially from those expressed or implied in the forward-
looking statements. M&C Hotels and its directors, employees and/or shareholders have no liability whatsoever to any person for any loss arising from this announcement or any
information supplied in connection with it. M&C Hotels are under no obligation to update this announcement or the information contained in it after it has been released. Past
performance is no indication of future performance.

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Name of issuer
Reporting Period
Previous Reporting Period
Currency
Amount (000s)
Revenue from continuing operations$145,659
Total Revenue$145,659
Net profit/(loss) from continuing operations $21,602
Total net profit/(loss) $21,602
Amount per Quoted Equity Security
Imputed amount per Quoted Equity Security
Record Date
Dividend Payment Date
Prior comparable period
Net tangible assets per Quoted Equity Security$3.35
A brief explanation of any of the figures above
necessary to enable the figures to be understood
Name of person authorised to make this
announcement
Contact person for this announcement
Contact phone number
Contact email address
Date of release through MAP
$0.03000000
Results for announcement to the market
Millennium & Copthorne Hotels New Zealand Limited
12 months to 31 December 2023
12 months to 31 December 2022
NZD
Percentage change
1.01%
1.01%
(0.51%)
(0.51%)
Final Dividend
Monday, 26 February 2024
$0.01166667
Friday, 10 May 2024
Friday, 17 May 2024
Current period
$3.46
Refer to Chairman’s Statement and Media Release
Authority for this announcement
Takeshi Ito – Company Secretary
Takeshi Ito – Company Secretary
+64 9 353 5005
takeshi.ito@millenniumhotels.com