Investment in a portfolio of luxury holiday resorts and hotels. Project proposal Project champion: Charles, Hotels Division Manager

Project summary Acquisition of a portfolio of luxury resorts. Estimated investment: $36m Background: Up until now, our divisional focus has been on hotels. We have a portfolio of hotels in major capital cities throughout Australia and South East Asia but we need to expand. I propose we diversify, both geographically and with our product offerings to include luxury resorts. Of course there will be synergies across the group, but with these proposed resorts, we will have entre into other parts of the globe and offer better services around corporate events, weddings etc. Resort 1 – Philippines ($14.5 million AUD purchase price including start-up costs) Resort 2 – Brazil ($13.5 million AUD purchase price including start-up costs) - private island Resort 3 – Caribbean ($8 million AUD purchase price including start-up costs)

Current Performance and Projected Financials   Current performance % change expected post acquisition  $’000s Years 1 -2 Years 3-4 Years 5-6  Years 7 - 8  Years 9 - 10 Revenue 5,512 ↑3% ↑5% ↑8%  ↑15%  ↑20% Labour costs 2,481 No Change ↓3% ↓6%  ↑8% Utilities 331 ↑5  ↑5%  ↑6% Marketing and Administration 794 ↑6% Depreciation 441 480  480 Other 992 Operating profit 473 Note: 1. Any carried forward tax losses to be ignored at the project level. 2. Depreciation determined as a depreciable value of $4.8m over 10 years.