The REIT Manager’s primary strategy is to maintain and grow a strong and balanced investment portfolio of hotels and hospitality-related properties. The REIT Manager intends to achieve its objectives of long-term growth in distributions and in the net asset value per Unit of Regal REIT through a combination of the following two core strategies:

Internal Growth Strategy:
The core growth strategy for the hotel portfolio is to maximise value for unitholders through pro-active asset management achieving higher total revenue, RevPAR and NPI performance.

External Growth Strategy:
The core strategy for growing the portfolio of hotels is to selectively acquire additional hotel and other properties meeting the following criteria:

• The expected yield enhances returns;
• Target the first tier international gateway cities worldwide with a focus on Hong Kong and Mainland China on markets and locations in urban centres and popular resort areas with growth potential;
• Value–adding opportunities, e.g. properties that may be undermanaged or in need of capital investment and/or which may benefit from market re-positioning and the Regal brand and/or which may be extended or have other asset enhancement opportunities;
• Majority ownership of the asset acquired; and
• Targeting income and cashflow generating properties.