MCK H1 2026 results announcement

Page 1

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Income Statement
for the six months ended 30 June 2026





UnauditedUnaudited
6 months6 months
DOLLARS IN THOUSANDSNote
to 30/06/26to 30/06/25
Revenue88,844 79,296
Cost of sales(38,552) (36,634)
Gross profit50,292 42,662
Administrative expenses(19,249) (16,734)
Other operating expenses(16,113) (13,962)
Operating profit before finance income14,930 11,966
Finance income2,766 1,049
Finance costs(1,099) (2,423)
Net finance (expense)/income1,667 (1,374)
Share of profit of joint venture
8
1,349 753
Profit before income tax17,946 11,345
Income tax expense
5
(4,518) (2,848)
Profit/(loss) for the period13,428 8,497
Profit/(loss) for the period attributable to:
Equity holders of the parent11,574 6,650
Non-controlling interests1,854 1,847
Profit/(loss) for the period 13,428 8,497
Basic earnings per share (cents)
4
7.32c4.20c
Diluted earnings per share (cents)
4
7.32c4.20c
The attached notes form part of, and are to be read in conjunction with, these financial statements.

Page 2

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Statement of Comprehensive Income
for the six months ended 30 June 2026






UnauditedUnaudited
6 months6 months
DOLLARS IN THOUSANDSNote
to 30/06/26to 30/06/25
Profit/(loss) for the period13,428 8,497
Items that are or may be reclassified to profit or loss
Foreign exchange translation movements5,676 (2,232)
- Tax (expense)/credit on foreign exchange(69) (22)
5,607 (2,254)
Total comprehensive income/(loss) for the period19,035 6,243
Total comprehensive income/(loss) for the period attributable to:
Equity holders of the parent17,181 4,396
Non-controlling interests1,854 1,847
Total comprehensive income/(loss) for the period19,035 6,243
DETAILS OF SPECIFIC RECEIPTS/OUTLAYS, REVENUE/EXPENSES
Classified under:
Administrative expenses
Audit fees(217) (199)
Other operating expenses
Depreciation of Property, Plant & Equipment(4,780) (4,277)
Depreciation of Investment Property(283) (275)
Depreciation of Right-Of-Use Assets (461) (445)
Leasing and rental expenses(531) (368)
Finance income
Interest income907 1,030
Foreign exchange gain1,858 19
Finance costs
Interest expense(140) (706)
Interest expense on lease liability(930) (938)
Foreign exchange loss(29) (779)
The attached notes form part of, and are to be read in conjunction with, these financial statements.

Page 3

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Statement of Changes in Equity
for the six months ended 30 June 2026 (unaudited)




UnauditedUnauditedUnauditedUnauditedUnauditedUnaudited
ShareExchangeRetainedTreasuryUnaudited Non-controllingTotal
DOLLARS IN THOUSANDSNote
CapitalReservesEarningsStockTotalInterestsEquity
Balance at 1 January 2025
383,266 1,246 163,429 (26) 547,915 116,990 664,905
Movement in exchange translation reserve- (2,254) - - (2,254) - (2,254)
Income and expense recognised directly in equity- (2,254) - - (2,254) - (2,254)
Profit/(loss) for the period- - 6,650 - 6,650 1,847 8,497
Total comprehensive income for the period- (2,254) 6,650 - 4,396 1,847 6,243
Transactions with owners, recorded directly in equity :
Dividends paid to:
Equity holders of the parent
6
- - (4,747) - (4,747) - (4,747)
Non-controlling interests- - - - - (4,186) (4,186)
Movement of non-controlling interests without a change in control- - (150) - (150) 824 674
Balance at 30 June 2025383,266 (1,008) 165,182 (26) 547,414 115,475 662,889
Balance at 1 January 2026
383,266 5,256 178,750 (26) 567,246 117,773 685,019
Movement in exchange translation reserve- 5,607 - - 5,607 - 5,607
Income and expense recognised directly in equity- 5,607 - - 5,607 - 5,607
Profit/(loss) for the period- - 11,574 - 11,574 1,854 13,428
Total comprehensive income for the period- 5,607 11,574 - 17,181 1,854 19,035
Transactions with owners, recorded directly in equity :
Dividends paid to:
Equity holders of the parent
6
- - (4,747) - (4,747) - (4,747)
Non-controlling interests- - - - - (1,610) (1,610)
Movement of non-controlling interests without a change in control- - (96) - (96) 310 214
Balance at 30 June 2026383,266 10,863 185,481 (26) 579,584 118,327 697,911
The attached notes form part of, and are to be read in conjunction with, these financial statements.
Attibutable to Equity Holders of the Group

Page 4

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Statement of Financial Position
As at 30 June 2026





UnauditedAudited
as atas at
DOLLARS IN THOUSANDSNote
30/06/202631/12/2025
SHAREHOLDERS' EQUITY
Issued capital
3
383,266 383,266
Reserves196,344 184,006
Treasury stock
3
(26) (26)
Non-controlling interests118,327 117,773
Total equity697,911 685,019
Represented by:
NON CURRENT ASSETS
Property, plant and equipment319,420 321,711
Development properties 250,877 257,854
Investment properties35,184 35,525
Investment in associates2 2
Investment in joint venture55,800 51,209
Total non-current assets661,283 666,301
CURRENT ASSETS
Cash and cash equivalents12,831 20,361
Short term bank deposits1,571 3,872
Trade and other receivables9,536 22,212
Advance to related parties
7
63,575 64,821
Inventories944 1,045
Development properties36,018 21,851
Total current assets124,475 134,162
Total assets785,758 800,463
NON CURRENT LIABILITIES
Lease liabilities26,349 26,483
Provision for deferred taxation32,801 32,331
Interest-bearing loans and borrowings- 20,000
Total non-current liabilities59,150 78,814
CURRENT LIABILITIES
Trade and other payables26,877 33,502
Trade payables due to related parties
7
585 789
Lease liabilities435 444
Income tax payable800 1,895
Total current liabilities28,697 36,630
Total liabilities87,847 115,444
Net assets697,911 685,019
The attached notes form part of, and are to be read in conjunction with, these financial statements.

Page 5

UnauditedUnaudited
6 months6 months
DOLLARS IN THOUSANDSNote
to 30/06/26to 30/06/25
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers101,507 90,145
Interest received378 518
101,885 90,663
Cash was applied to:
Payments to suppliers and employees(82,376) (63,743)
Purchase of development land
2
- (14,811)
Interest paid(148) (651)
Income tax paid(5,335) (7,114)
(87,859) (86,319)
Net cash inflow from operating activities14,026 4,344
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was (applied to)/ provided from:
Purchase of property, plant and equipment(2,892) (43,979)
Purchase of investment property(32) (383)
Proceed from the sale/ (purchase) of property, plant and equipment57 (15)
Withdrawals/ (investments in) from short term bank deposits2,301 (1,079)
Repayment from joint venture5,752 -
Net cash inflow/ (outflow) from investing activities5,186 (45,455)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was (applied to)/ provided from:
(Repayment)/ Drawdown of borrowings(20,000) 27,000
Lease payments(1,192) (1,112)
Dividends paid to shareholders of Millennium & Copthorne
Hotels New Zealand Ltd
6
(4,747) (4,747)
Dividends paid to non-controlling interests (1,610) (4,186)
Net cash (outflow)/ inflow from financing activities(27,549) 16,955
Net (decrease)/ increase in cash and cash equivalents(8,337) (24,156)
Add opening cash and cash equivalents20,361 39,726
Exchange rate adjustment807 528
Closing cash and cash equivalents12,831 16,098
The attached notes form part of, and are to be read in conjunction with, these financial statements.
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Statement of Cash Flows
For the six months ended 30 June 2026

Page 6

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Statement of Cash Flows
For the six months ended 30 June 2026





UnauditedUnaudited
6 months6 months
DOLLARS IN THOUSANDSNote
to 30/06/26to 30/06/25
Reconciliation of net profit/(loss) for the period to cash flows from operating activities
Profit/(loss) for the period13,428 8,497
Adjusted for non cash items:
Share of (profit)/loss Joint Venture
8
(1,349) (753)
Loss on Sale of Fixed Assets17 19
Foreign Exchange (Gain)/ Loss(1,829) 775
Depreciation of Property, Plant & Equipment4,780 4,277
Depreciation of Right-Of-Use Assets 461 445
Depreciation of Investment Property283 275
Income tax expense 4,518 2,848
Adjustments for movements in working capital:
Decrease in receivables12,133 10,337
Decrease/(Increase) in inventories101 163
(Increase) in development properties(6,961) (19,940)
(Decrease)/Increase in payables(5,548) 4,211
(Decrease)/Increase in related parties(525) 954
Cash generated from operations19,509 12,108
Interest paid(148) (650)
Income tax paid(5,335) (7,114)
Net cash inflow from operating activities14,0264,344
Reconciliation of movement of liabilities to cash flows arising
UnauditedUnaudited
from financing activities
6 months6 months
to 30/06/26to 30/06/25
External borrowings as at 1 January
20,000 3,000
Proceeds from borrowings- 34,000
Repayment of borrowings(20,000) (7,000)
Financing cash flows
(20,000) 27,000
External borrowings as at 30 June- 30,000
The attached notes form part of, and are to be read in conjunction with, these financial statements.

Page 7

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
For the six months ended 30 June 2026 (unaudited)

1. 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 Financial Markets Conduct Act 2013 and the
Financial Reporting Act 2013. The condensed interim financial statements of the Company for the six months ended 30 June
2026 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; residential development and sale
of land in New Zealand; ownership and leasing of investment properties in New Zealand and development and sale of
residential units in Australia.

The condensed interim financial statements were authorised for issuance on 11
th
August 2026.

(a) Statement of compliance

The condensed interim financial statements have been prepared in accordance with New Zealand Generally Accepted
Accounting Practice (NZ GAAP). They comply with NZ IAS 34 Interim Financial Reporting. The condensed interim financial
statements do not include all of the information required for full annual financial statements.

The accounting policies and methods of computation applied by the Group in these condensed interim financial statements
are the same as those applied by the Group in its financial statements for the year ended 31 December 2025.

(b) NZ IFRS 18 – Presentation and Disclosure in Financial Statements

NZ IFRS 18, which is effective for annual reporting periods beginning on or after 1 January 2027, has not yet been adopted
by the Group. The Group continues to assess the impact of the standard. Based on work performed to date, the Group expects
the standard to primarily affect the presentation and disclosure of information in the financial statements, including the structure
of the statement of profit or loss and related disclosures. The assessment remains ongoing and the Group has not yet
quantified the full impact of adoption.


2. Segment reporting

Segment information is presented in the condensed interim financial statements 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.

Inter-segment pricing is determined on an arm’s length basis. 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.

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.
 Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouse.
 Residential and commercial property development, comprising the development and sale of residential apartments.

Geographical segments

The Group operates in the following main geographic segments:
 New Zealand
 Australia

Segment revenue is based on the geographical location of the asset. The Group has no major customer representing
greater than 10% of the Group’s total revenue

Page 8

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
For the six months ended 30 June 2026 (unaudited)

2. Segment reporting - continued

(a) Operating Segments











Dollars in thousands
to 30/06/26 to 30/06/25 to 30/06/26 to 30/06/25 to 30/06/26 to 30/06/25 to 30/06/26 to 30/06/25 to 30/06/26 to 30/06/25
External revenue73,88064,07110,82412,2791,7241,5292,4161,41788,84479,296
Earnings before interest, depreciation,
amortisation & tax
Finance income1,408735161241--1,947733,5161,049
Finance expense(1,093) (1,680)(6)(6)--(750)(737) (1,849)(2,423)
Depreciation and amortisation(4,771) (4,264)(5)(4)(283)(275)(4)(9) (5,063)(4,552)
Depreciation of Right-of-use assets(435)(425)(20)(15)--(6)(5)(461)(445)
Share of profit/(loss) of joint venture1,349753------1,349753
Profit before income tax11,3376,6783,2713,8071,4411,2441,897(384)17,94611,345
Income tax expense(2,465) (1,642)(917)(1,136)(403)(348)(733)278 (4,518)(2,848)
Profit/(loss) after income tax8,8725,0362,3542,6711,0388961,164(106)13,4288,497
Property, plant and equipment
expenditure
2,89143,978----112,89243,979
Investment property expenditure----32383--32383
Residential land development
expenditure
--12,74611,737----12,74611,737
Purchase of land for residential land
development
---14,811-----14,811
30/06/26 31/12/2025 30/06/26 31/12/2025 30/06/26 31/12/2025 30/06/26 31/12/2025 30/06/26 31/12/2025
Cash & cash equivalents and short
term bank deposits
2,0273,8086,06313,924--6,3126,50214,40224,234
Investment in associates --22----22
Investment in joint venture55,80051,209------55,80051,209
Other segment assets389,371 400,543 287,281 282,17435,18435,5253,7186,776 715,554 725,018
Total assets447,198 455,560 293,346 296,10035,18435,52510,03013,278 785,758 800,463
Segment liabilities(50,834) (74,525)(2,062)(5,068)--(1,349)(1,626) (54,245) (81,219)
Tax liabilities(27,763) (26,313)(78)(883)(4,533)(4,495)(1,228)(2,534) (33,602) (34,225)
Total liabilities(78,597) (100,838)(2,140)(5,951)(4,533)(4,495)(2,577)(4,160) (87,847) (115,444)
As atAs atAs atAs atAs at
6 months6 months6 months6 months6 months
1,51971029420,45416,963
Hotel Operations
Residential Land
Development
Investment Property
Residential Property
Development
Group
14,87911,5593,1413,5911,724

Page 9

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
For the six months ended 30 June 2026 (unaudited)

2. Segment reporting - continued








(b) Geographic Segments
Dollars in thousands
to 30/06/26 to 30/06/25 to 30/06/26 to 30/06/25 to 30/06/26 to 30/06/25
External revenue86,42877,8792,4161,41788,84479,296
Earnings before interest, depreciation,
amortisation & tax
Finance income1,0254312,4916183,5161,049
Finance expense(1,099)(1,686)(750)(737)(1,849)(2,423)
Depreciation and amortisation(5,059)(4,543)(4)(9)(5,063)(4,552)
Depreciation of Right-of-use assets(455)(440)(6)(5)(461)(445)
Share of profit/(loss) of joint venture--1,3497531,349753
Profit before income tax14,16611,5303,780(185)17,94611,345
Income tax expense(3,788)(3,129)(730)281(4,518)(2,848)
Profit/(loss) after income tax10,3788,4013,0509613,4288,497
Property, plant and equipment expenditure 2,89143,978112,89243,979
Investment property expenditure32383--32383
Residential land development expenditure12,74611,737--12,74611,737
Purchase of land for residential land
development
-14,811---14,811
30/06/26 31/12/2025 30/06/26 31/12/2025 30/06/26 31/12/2025
Cash

& cash equivalents and short term
bank deposits
8,09017,7326,3126,50214,40224,234
Investment in associates22--22
Investment in joint venture--55,80051,20955,80051,209
Investment property35,18435,525--35,18435,525
Other segment assets614,123618,63766,24770,856680,370689,493
Total assets 657,399671,896128,359128,567785,758800,463
Segment liabilities(52,896)(79,592)(1,349)(1,626)(54,245)(81,218)
Tax liabilities(32,374)(31,692)(1,228)(2,534)(33,602)(34,226)
Total liabilities(85,270) (111,284)(2,577)(4,160)(87,847)(115,444)
As atAs atAs at
New ZealandAustraliaGroup
19,75417,768700(805)20,45416,963
6 months6 months6 months

Page 10

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
For the six months ended 30 June 2026 (unaudited)


3. Share capital


Ordinary shares Redeemable preference shares
Shares $ 000s Shares $ 000s
Total shares issued – fully paid
Balance at 30 June 2026 105,578,290 350,048 52,739,543 33,218
Balance at 30 June 2026 105,578,290 350,048 52,739,543 33,218

Ordinary shares repurchased and
held as treasury stock



Balance at 30 June 2026 (99,547) (26) - -
Balance at 30 June 2026 (99,547) (26) - -

Shares issued – fully paid
Balance at 30 June 2026 105,478,743 350,022 52,739,543 33,218
Balance at 30 June 2026 105,478,743 350,022 52,739,543 33,218



At 30 June 2026, the authorised share capital consisted of 105,578,290 ordinary shares (2025: 105,578,290 ordinary shares)
with no par value and 52,739,543 redeemable preference shares (2025: 52,739,543) with no par value.


4. Earnings per share

The basic earnings per share of 7.32 cents (30 June 2025: 4.20 cents) is based on the profit attributable to ordinary
shareholders of $11.6 million (30 June 2025: $6.6 million) and weighted average number of ordinary shares and redeemable
preference shares outstanding during the period ended 30 June 2026 of 158,218,286 (30 June 2025: 158,218,286).

The redeemable preference shares are included in the computation of earnings per share as they rank equally with ordinary
shares in respect of distributions made by the Company except any distribution in the case of liquidation.

The calculation of diluted earnings per share of 7.32 cents (30 June 2025: 4.20 cents) is the same as basic earnings per
share.



5. Income tax expense

Recognised in the income statement
Group
Dollars In Thousands
Six months to
30/06/26
Six months to
30/06/25
Current tax expense
Current period 4,116 3,016
Adjustments for prior period - 46
4,116 3,062

Deferred tax expense

Origination and reversal of temporary difference 400 (214)
Adjustments for prior period 2 -
402 (214)
Total income tax expense in the income statement 4,518 2,848

Page 11

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
For the six months ended 30 June 2026 (unaudited)

5. Income tax expense - continued


Reconciliation of tax expense
Group
Dollars In Thousands
Six months to
30/06/26
Six months to
30/06/25
Profit before income tax 17,946 11,345
Income tax at the company tax rate of 28% (2025: 28%) 5,025 3,177
Adjusted for:
Tax rate difference (if different from 28% above) 77 (3)
Non-deductible expenses 7 24
Tax exempt income (593) (396)
Changes in treatment of building depreciation - -
Under/(Over) - provided in prior periods 2 46
Total income tax expense
4,518 2,848
Effective tax rate 25% 25%



6. Dividends

The following dividends were paid during the interim periods:


Group
Dollars In Thousands
Six months to
30/06/26
Six months to
30/06/25

Ordinary dividend: 3.0 cents per qualifying share (2025: 3.0 cents) 4,747 4,747
Supplementary dividend: 0.529412 cents per qualifying share (2025:
0.529412 cents)

29

29
4,776 4,776

Page 12

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
For the six months ended 30 June 2026 (unaudited)


7. Related party transactions

Millennium & Copthorne Hotels New Zealand Limited is a 86.39% (2025: 86.39%) (economic interests from both ordinary
and preference shares) owned 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 Limited in Singapore.

At balance date there were related party advances owing from/(owing to) the following related companies:

Group
Dollars In Thousands Nature of balance 6 months to
30/06/26
6 months to
30/06/25
Trade payables and receivables due to related
parties

Millennium & Copthorne Hotels Limited Recharge of expenses (585) (1,547)
Millennium & Copthorne International Recharge of expenses - (281)
Marquee Hotel Holdings Pty Ltd Interest bearing advance 21,633 19,092
Marquee Hotel Holdings Pty Ltd Interest free advance 40,332 43,146
Marquee Hotel Holdings Pty Ltd Interest receivable 564 571
CDLH (BVI) One Limited Recharge of expenses 1,018 756
CDLH (BVI) One Limited Rent 28 (100)
62,990 61,637

No debts with related parties were written off or forgiven during the period. Interest at 5.28% was charged on interest bearing
advance during 2026. 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.

During 2026, the Group had the following transactions with related parties:
Group
Dollars In Thousands Nature of balance 6 months to
30/06/26
6 months to
30/06/25
Marquee Hotel Holdings Pty Ltd Interest receivable 544 545
CDLH (BVI) One Limited Management and franchise income 504 452
M&C Reservation Services Ltd (UK) Management and marketing support (330) (249)
CDL Hotels Holdings New Zealand Limited Recharge of takeover offer expenses
and accounting support fee received 30 2,141
Millennium & Copthorne International Limited Recharge of expenses (255) (281)

Page 13

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
For the six months ended 30 June 2026 (unaudited)



8. 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.

In 2023, 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 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 period ended 30 June 2026 was $1,348,733 (2025: $753,519).




Principal Activity
Principal
Place of
Business
Group
interest%
2026
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

Page 14

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
For the six months ended 30 June 2026 (unaudited)


8. Investment in joint venture - continued


Summary financial information for joint venture, not adjusted for the percentage ownership held by the Group:

Group Group
Dollars In Thousands As at
30/06/26
As at
31/12/25
Non-current assets 219,824 208,686
Current assets 33,548 36,643
Non-current liabilities (4,143) (3,584)
Current liabilities (137,630) (139,326)
Net assets (100%) 111,599 102,419
Group’s share (50%) 55,800 51,209


The current assets balance of the joint venture includes a cash and cash equivalents (including short term deposits)
balance of $29.26m (2025:$29.34m). The current liabilities balance of the joint venture includes balances owing to
shareholders of $125.05m (2025:$125.01m).

Group Group
6 months to
30/06/26
6 months to
30/06/25
Revenue 30,120 25,250
Operating profit 4,465 2,732
Interest income 477 511
Interest expense (1,089) (1,090)
Income tax expense (1,156) (646)
Profit for the period (100%) 2,697 1,507
Group’s share of profit (50%) 1,349 753


Movements in the carrying value of joint venture:
Group Group
As at
30/06/26
As at
30/06/25
Balance at 1 January 51,209 46,554
Share of profit for the period 1,349 753
Foreign exchange adjustments 3,242 (1,114)
Balance at 30 June 55,800 46,193


9. Subsequent Event


Following the Group's interim reporting period ended 30 June 2026, CDL Land New Zealand Limited, the wholly owned
operating subsidiary of MCK's majority owned property development subsidiary CDL Investments New Zealand
Limited, entered into a new $20.0 million flexible credit facility with ANZ Bank New Zealand Limited. The facility was
established in August 2026 for a term of 24 months and is intended to be used for company's property development
activities.

As the facility was established after the interim reporting period, it has been treated as a non-adjusting subsequent event
and has not been recognised in the condensed interim financial statements.

The Directors are not aware of any other material events subsequent to the reporting period ended 30 June 2026 that
require adjustment or disclosure.

---

HY26 INTERIM RESULTS
FOR THE HALF YEAR
ENDED 30 JUNE 2026

2
Strategic execution proving the resilience of the business,
and working through the Revive to Thrive strategy
Hotel improvement programme adding
value to existing assets
Positioned to capitalise as the tourism and property sectors rebound

PROFIT
BEFORE TAX
NZ HOTEL
REVENUE
TOTAL
REVENUE
$
17.9m
HY25: $11.3m
$
73.9m
HY25: $64.1m
$
88.8m
HY25: $79.3m
SHAREHOLDERS’
FUNDS*
TOTAL
ASSETS
EARNINGS PER
SHARE
$
579.6m
FY25: $567.2m
BOOK VALUE
$
785.8m
FY25: $800.5m
7.32
cents
HY25: 4.20 cents
•Hotels: continuing positive growth in
hotel business

Softer domestic consumer and
corporate travel as fiscal
conditions bite

Strong customer loyalty
developing, driving repeat
stays
•Residential property development:
cooldown in sales with trading
conditions more subdued than
envisaged
•Use of capital: continuing to invest
in hotel property refurbishments
and network expansion
HY26 Performance Snapshot
3
*Equity attributable to MCK shareholders

•Uplift in NZ Hotels revenue driven by
refurbishments with increased rooms
available and demand
•Property sales opportunities softer
•Improvement in hotel operating profit offset
by drop in property sale contribution
•Operating costs include the scoping and
rollout of updated property management and
business digital technologies
•Profit before tax increases 58.2% yoy
change
Unaudited
HY25
Unaudited
HY26
+15.3%
+12.8%
-3.3%
64.07
1.53
13.70
73.88
1.72
13.24
Revenue – Hotel
Rental income
Property sales
12.0%79.3088.84REVENUE
24.7%11.9714.93Operating profit
(1.37)1.67Finance (expense)/income
0.751.35Share of profit of joint venture (Sofitel
Brisbane)
58.2%11.3517.95Profit before tax
+58.0%8.5013.43Profit after tax
4.20c7.32cEarnings per share
Group Summary
Strong Hotels trading benefits from increased rooms and revenue despite headwinds
4

•Development properties increase with the
strategic acquisitions of land and development
works by CDL Investments
•Investment properties are the remaining Zenith
Apartments & CDL Investments Industrial/Retail
Properties
•Positive cash position with surplus trading
profits utilised to repay the bank facility funding
the settlement of The Mayfair Hotel
•Balance Sheet further strengthened as net
assets up $13m to $698m
ChangeFY25
Unaudited
HY26
321.7319.4Property, plant and equipment (PP&E)
279.7286.9Development properties
35.535.2Investment properties
51.2
55.8
Investment in JV
64.162.0Loans in JV
24.2
14.4
Cash and bank deposits
-1.8%800.5785.8Total assets
20.00.0Bank debt
32.332.8Deferred tax liability
63.255.0Other Liabilities
+1.9%685.0697.9Net Assets
3.583.66NTA per share
Robust Balance Sheet
Ready to deploy, provides optionality for growth phase
5

Business Performance

HY2026: Hotel Rooms Revenue increased by 15.3% compared to the
same period last year with both Q1 and Q2 being higher
Q1 2026: Positive flow of international visitors with increased room
capacity and standards following refurbishments. Q1 prior year reflected
the flow of international visitors and domestic markets along with increased
room capacity
Q2 2026: Challenging conditions as middle east fuel shortages
increased uncertainties. Q2 prior year had steady trading in challenging
conditions as increased hotel inventory (particularly Auckland) impacted.
Q1
2025
Q2
2025
Q1
2026
Q2
2026
NZ Hotels Quarterly Revenue
HY26 NZ Hotel Business Making Progress
Focused on making sure we have the best hotel properties available
to capture demand as the tourism market recovers
7

Strategic opportunities in theproperty portfolio
Optimising the use of capital across the hotel portfolio and under-utilisedland and buildings
Surplus land adjacent to hotels -
oCopthorne Hotel Rotorua – surplus land and hotel buildings being marketed for sale,
oCopthorne Hotel Palmerston North – surplus land being marketed for sale and
oQueenstown Lakefront land – being considered for further development
Seismic assessments to take place following upcoming changes to criteria and work through any requirements for seismic
strengthening in Wellington, Oriental Bay
Remediating or replacing critical aged infrastructure at key hotels
Auckland Downtown Carpark development,adjoining M Social Hotel, has received Fast Track Panel approval and
progressing through consenting with consideration required on the impacts and the opportunity available for further
development of the M Social Auckland hotel site
Development worksacross CDI’s key sites, maintaining flexibility across its landholdings, carefully staged investment, and
progressed consent pathways where possible
8

9
Australia Operations
Sydney Apartments
•Sold 16 apartment
FY2025 & 2 YTD HY2026
•Reducing stream of
income with 4 remaining
apartments
Brisbane Sofitel Hotel
•Consistent demand
across all major segments
•Increasing contribution to
group profitability
expected to continue
•Commencing planning on
a refurbishment program
for the property
%
change
HY25
$m
HY26
$m
Brisbane Hotel Joint Venture
19.3%25.330.1Hotel Revenue 100%
2.74.5Hotel Operating profit
79.0%0.81.3
MCK’s share of: Profit after tax
50%
0.6
0.6
Net finance expense
% changeHY25HY26Zenith Apartments – 100%
12Units Sales
214Units Available
70.5%$1.4m$2.4mRental & Sales Income
($0.4m)$1.9mProfit before tax
Uplift in performance
Positive progress on
Zenith apartment sales

Unaudited
HY25
$m
Unaudited
HY26
$m
(8.8%)13.7612.55Revenue
(5.3%)4.814.56Operating profit
(6.7%)5.054.71Profit before tax
FY25
275.5283.5Development properties
35.535.2Investment properties
13.96.1Cash and bank deposits
(1.0%)331.6328.5Total assets
--Bank debt
0.2%321.2321.9Net assets
CDL Investments
Trading conditions more subdued than envisaged,
effects of reductions in bank lending rates have not
translated to increased activity in housing and other
property markets as purchaser confidence remains
cautious
•Diverse portfolio of land development and
commercial property leasing
•Total land holding ~302ha
•Maintained a nationwide geographical spread
Continually looking to grow the Portfolio
•Commencing earthworks at its Fast-track
development at Arataki Rd (Havelock North)
•Submission of substantive Fast-track application at
Ruakura Growth Cell, Hamilton
10

2026 Priorities
11
2026 Outlook
2026 Priorities
•Continue to increase the utilisation of hotel
rooms available to sell following refurbishments
and rooms being reinstated
•Focusing on improving the guest experience with
a loyal customer base
•Grow My Millennium loyalty scheme to drive
bookings
•Review investment into portfolio, refurbishment
upgrades and infrastructure
•Identify and assess opportunities for surplus land
2026 will be remembered as a year shaped by
external uncertainty increasing the requirement
tolook at ways to improve our overall
performance across the business
Continue progression towards Thrive ambitions,
although the pace of transition is being moderated by
heightened global uncertainty and softer economic
conditions
•Economic recovery reinvigorated late-2025 and
started looking to continue to build within 2026
•Results reflecting hard work put in, but needing to
navigate a more uncertain global environment
•Maintain a view that Central and local Government
stability and support is needed to promote NZ and
attract tourists, conferences and events
•Property markets in New Zealand are showing little
signs of recovery with
interest rate volatility,
construction cost pressures and the gradual
pace of recovery.
•A
dvancing development pipeline works across key
sites in a disciplined focus on long-term value
creation

Appendices

New Zealand Hotel Brands:
•Lifestyle – M Social
•Premium – Grand Millennium & Millennium
•Comfortable - Copthorne & Kingsgate
•Luxury - Mayfair
CDL Investments New Zealand:
•Land developments
•Investment properties
•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
•~1,200 team members across New Zealand and
Australia
•Own 65% 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 83.9% owned by CDL Hotels Holdings, a
100% subsidiary of Hong Leong Group
13
Our Business

Our Hotel Networks
19
Hotels in New Zealand
Opportunity to fill in the network
2,300 rooms per night owned and managed
1
Hotel in Australia
*
Established operation
Significant opportunity to build footprint
14
*50/50 Joint Venture acquired Sofitel Brisbane Central in December 2023
As at 30 June 2026

Provides MCK with a diversified property portfolio and revenue stream
Details as at May 2026
CDL Investments NZ (NZX: CDI)
65.05% shareholding
Investment Properties
•4x Commercial Investment properties:
o2x Warehouses (NLA 16,402 m2 WALE 4.0 years )
o2x Retail (NLA 3,411 m2 WALE 3.8 years)
Land Development Projects Across New Zealand
•9x Residential Land Development
•1x Commercial Land Development
SUBDIVISION LOCATION MAP
15

16

Explore New Zealand with Millennium Hotel and Resorts
At Millennium Hotels and Resorts, we believe there are A Thousand Ways of Happiness — and it all starts with
where you stay. Proudly located across New Zealand’s most sought-after destinations, from the urban energy of
gateway cities to scenic lakes, bays, and mountains, our hotels offer the best of both business and leisure.
With trusted global standards and deep local roots, our 19 properties are uniquely equipped to deliver
memorable experiences. We offer everything from refined corporate stays and large-scale conferences to group
tours, romantic escapes, and unforgettable family holidays. Our versatile event spaces include some of the
largest ballrooms in their regions, backed by dedicated on-site teams and cutting-edge facilities.
Every hotel offers easy access, and some locations provide ample car parking, ensuring a smooth and hassle-
free guest experience. And with a range of brands — from smart 3-star solutions to elegant 5-star escapes — we
cater to a wide range of budgets, travel styles, and business needs. Plus, My Millennium members enjoy
exclusive rates, stay benefits, and recognition every time they book direct.
17

UNIQUE

19
LIFESTYLE

20
PREMIUM

21
COMFORTABLE

22

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.

---

MCK interim results for six months to 30 June 2026

New Zealand hotel owner and operator, Millennium & Copthorne Hotels New Zealand Limited (MCK), has today
announced its unaudited results for the six months to 30 June 2026.

MCK Chairman Colin Sim was pleased by the increase in hotel revenue following a strong first quarter with that
positive momentum carrying through into the second quarter.

“Despite ongoing global uncertainties, our hotels have done well over the past few months and we are pleased
that the results we are announcing today reflect the hard work our teams have put in during the year to date as
well as the benefit of refurbished product”, he said.

A 15% increase in hotel revenue was the main contributor to the results which was reflected in a 58% increase in
net profit before tax to $18m for the period (HY2025: $11.3m).

Mr. Sim noted that MCK’s South Island hotels in particular had been the major contributor to the results.

“Queenstown continues to be the region which is outperforming the rest. We believe that this will continue to
be the case for the time being and we are therefore allocating resources to ensure that our hotels can maximise
their potential for the remainder of the year. Our key North Island properties in Rotorua, Auckland and the Bay
of Islands are also performing well and experiencing positive demand trends and we will ensure that they are
also in a position to perform strongly for the balance of 2026 and into 2027”, he said.

MCK’s Managing Director, Stuart Harrison, noted that MCK’s results showed what could be done despite
international turmoil.

“Focusing on improving the guest experience and our overall product have helped our hotels despite the current
difficult global circumstances. We have a loyal customer base which is keen to stay with us across New Zealand
and we are capitalising on their enthusiasm for our refreshed rooms and service offerings. It is heartening to
know that Australia and New Zealand continue to be attractive and safe destinations for global tourism and we
look forward to that continuing”, he said.

MCK also saw contributions from its other property investments with two sales at the Zenith Residences were
recorded in the period leaving four apartments remaining for sale. MCK is aiming to complete the sale of these
remaining apartments within the calendar year subject to market conditions. When sold, this would conclude
MCK’s interest in the residential component of the Zenith Apartments leaving a small commercial office area
remaining.

MCK is also looking at the sale of the land and buildings at the Copthorne Hotel Rotorua site as well as some
under-utilised land around Copthorne Hotel Palmerston North. With various parties expressing interest, MCK
has entered into conditional agreements to allow for due diligence to take place. MCK’s intention is to settle any
transactions before the end of the financial year and to use the sale proceeds for additional investment into its
existing hotel portfolio. Market updates will be provided should these agreements become unconditional. The
company is also reviewing its ground lease arrangements at Copthorne Hotel Auckland City.

MCK’s majority owned property development subsidiary, CDL Investments New Zealand Limited (CDI) reported a
result that was lower than its previous year in line with its guidance at its 2026 annual meeting. MCK does not
expect CDI to be a major contributor to its FY2026 revenue and profit and will be monitoring market conditions
carefully to ensure that its longer term performance is beneficial to MCK.

Results snapshot

Six months to 30 June 1H26 1H25
Average hotel occupancy across the Group 76.8% 70.0%
Group revenue $88.8m $79.30m
Profit before tax $17.9m $11.35m
Earnings per share (cents per share) 7.32c 4.20c

Outlook

MCK is looking to take the positive momentum seen to date into Q3 and Q4 of this year. With almost full
inventory after refurbishment available to MCK and with improvements recorded in its rooms and food and
beverage operations, Management and the Hotel Operations teams are looking to refine its rate and occupancy
performance as cost pressures gradually reduce in line with global tensions.

Mr. Sim stated that MCK was aiming to improve on its FY25 results particularly through better performance from
its hotel portfolio.

“Our New Zealand hotels continue to be the strongest contributor to our results so far and we want to ensure
that the gains made in the first half of the year are not diluted. While we do expect that the results from our
other business segments will impact our overall profit forecast for the year, we will focus on maximising our
hotels’ performance so that they finish the year as strongly as possible”, he said.

Mr. Harrison also noted that MCK would be monitoring developments in tourism policy ahead of the November
general election in New Zealand.

“While there appears to be a consensus amongst local and central government in favour of a nationwide bed tax,
there is no agreement on the details such as the appropriate rate, who will collect it and how those funds will be
utilised. MCK will be looking for certainty in these areas from whichever party or parties form the next
government. There needs to be clear leadership and an unambiguous policy direction so that accommodation
owners and operators like MCK and the wider tourism industry know exactly how things will proceed”.


Mr. Harrison also noted the final decision of the Fast Track Panel in relation to the Downtown Carpark
redevelopment project released last week and its potential impact on M Social Auckland.

“While the overall development will bring long term benefits to Auckland as a whole, there will be disruption and
disturbances to M Social Auckland during the demolition and construction periods which will take years. We
endeavoured to highlight these effects to the Panel in our submissions and while the Panel accepted some of our
submissions, they have indicated that MCK will need to work with the developer during demolition and
construction. We are carefully reviewing the Panel’s decision and will look at what we can do on our site to
protect our hotel as well as how we can potentially enhance it”, he said.


ENDS

Issued by Millennium & Copthorne Hotels New Zealand Limited
Enquiries to: Stuart Harrison Managing Director +64 21 869 216

About Millennium & Copthorne Hotels New Zealand Limited
Millennium & Copthorne Hotels New Zealand Limited (NZX:MCK) is the only NZSX listed hotel owner – operator with 19 owned
/ leased / franchised hotels based in New Zealand under the Millennium, Grand Millennium, M Social, Copthorne and Kingsgate
brands. MCK also owns The Mayfair Hotel Christchurch, a boutique hotel which is part of the exclusive Leng’s Collection of
hotels across the world. As part of the Millennium & Copthorne Hotels group, we are proud to be part of a global network of
over 120 properties in gateway cities across Asia, Europe, North America, the Middle East and New Zealand.
MCK is also the majority shareholder in land developer CDL Investments New Zealand Limited (NZX:CDI) and also has property
interests in Australia through its Kingsgate Group subsidiaries including a 50% ownership interest in the Sofitel Hotel Brisbane
Central through a joint venture. For more information, visit our website: www.millenniumhotels.co.nz

---

Name of issuer
Reporting Period
Previous Reporting Period
Currency
Amount (000s)
Revenue from continuing operations$88,844
Total Revenue$88,844
Net profit/(loss) from continuing operations $11,574
Total net profit/(loss) $11,574
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$3.46
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
No interim dividend has been declared
Results for announcement to the market
Millennium & Copthorne Hotels New Zealand Limited
6 months to 30 June 2026
6 months to 30 June 2025
NZD
Percentage change
12.04%
12.04%
74.05%
74.05%
Interim Dividend
11 August 2026
Not applicable
Not applicable
Not applicable
Current period
$3.66
Refer to the Media Release
Authority for this announcement
Takeshi Ito – Company Secretary
Takeshi Ito – Company Secretary
+64 21 591 531
takeshi.ito@millenniumhotels.com