MANAGEMENT DISCUSSION & ANALYSIS | REVIEW OF OPERATIONS Non-managed Hotels Overview The Group has ownership interests in (but does not manage) hotels with 3,138 rooms in aggregate. Hotel Portfolio (not managed by the Group) No. of Rooms Attributable (100% Basis) Interest Completed Hong Kong – Island Shangri-La Hong Kong 557 20% – JW Marriott Hotel Hong Kong 608 20% – Conrad Hong Kong 513 20% (1) – Novotel Citygate Hong Kong 440 26.67% (1) – The Silveri Hong Kong – MGallery 206 26.67% Chinese Mainland (2) – Mandarin Oriental, Guangzhou 287 97% – The Sukhothai Shanghai 201 50% U.S.A. – Mandarin Oriental, Miami 326 75% Total 3,138 (1) In March 2022, the Group acquired an additional 6.67% interest in the Citygate development. The Group’s interests in Novotel Citygate Hong Kong and The Silveri Hong Kong – MGallery increased from 20% to 26.67% after the transaction. (2) Including serviced apartments in the hotel tower. The non-managed hotels in Hong Kong and the Chinese Mainland were adversely affected by COVID-19 related travel restrictions. The non-managed hotel in the U.S.A. performed better. Average room rates and occupancy were higher. The Mandarin Oriental, Guangzhou is a leading luxury hotel in Guangzhou. The Chinese restaurant at the hotel, Jiang by Chef Fei, obtained a 2-star Michelin award. The Sukhothai Shanghai is a luxury hotel in Shanghai. The Silveri Hong Kong – MGallery in Hong Kong opened in phases from the middle of 2022. Hotels Market Outlook The hotels in Hong Kong and the Chinese Mainland are expected to do better in 2023, following the reopening of the border in the Chinese Mainland and the removal of COVID-19 measures. The hotels in the U.S.A. are expected to perform strongly. We are expanding our hotel management business, with a focus on extending our hotel brands outside Hong Kong through hotel management agreements. 62