REVIEW OF OPERATIONS Estate Management The Group manages 19 residential estates which it has developed. It also manages OPUS HONG KONG, a residential property in Hong Kong which the Group redeveloped for Swire Pacific Limited. The management services include day to day assistance for occupants, management, maintenance, cleaning, security and renovation of common areas and facilities. The Group places great emphasis on maintaining good relationships with occupants. Hotels Overview The Group owns and manages (through Swire Hotels) hotels in Hong Kong, the Chinese Mainland and the U.S.A. The House Collective, comprising The Upper House in Hong Kong, The Opposite House in Beijing, The Temple House in Chengdu and The Middle House in Shanghai, is a group of small and distinctive luxury hotels. There are EAST hotels in Hong Kong, Beijing and Miami. In October 2021, EAST Miami ceased to be owned by the Group. It continues to be managed by Swire Hotels. The Group also has interests in non-managed hotels in Hong Kong, Guangzhou, Shanghai and Miami. Our managed hotels in Hong Kong and Chinese Mainland continued to be affected by COVID-19. The hotels in the U.S.A. performed well. Our managed hotels (including restaurants and taking account of central costs) recorded an operating loss before depreciation of HK$74 million in the first half of 2022, compared with an operating profit before depreciation of HK$4 million in the first half of 2021. Hotel Portfolio (Managed by Swire Hotels) No. of Rooms Attributable (100% Basis) Interest Completed Hong Kong – The Upper House 117 100% – EAST Hong Kong 331 100% (1) – Headland Hotel 501 0% Chinese Mainland – The Opposite House 99 100% – EAST Beijing 369 50% (2) – The Temple House 142 50% – The Middle House (2) 213 50% U.S.A. (3) – EAST Miami 352 0% Total 2,124 (1) Headland Hotel is owned by Airline Property Limited, a wholly-owned subsidiary of Cathay Pacific Airways Limited. (2) Comprising one hotel tower and one serviced apartment tower. (3) EAST Miami (including serviced apartments in the hotel tower) is owned by a third party. 38 Swire Properties Limited Interim Report 2022