SWIRE PROPERTIES ANNUAL REPORT 2023 U.S.A. Hotels In June 2023, the Group announced plans to develop a Managed Hotels and Restaurants luxury residential and hospitality project in Miami. The Overview project, branded as The Residences at The Mandarin Oriental, Miami, will consist of two towers on Brickell Key. The Group owns and manages (through Swire Hotels) The first tower will comprise luxury private residences. The hotels in Hong Kong, the Chinese Mainland and the U.S.A. second tower will comprise a new Mandarin Oriental hotel The House Collective, comprising The Upper House in as well as private residences and hotel residences. Sales Hong Kong, The Opposite House in Beijing, The Temple reservations were launched in December 2023. House in Chengdu and The Middle House in Shanghai, is a group of small and distinctive luxury hotels. There are plans Chinese Mainland, Indonesia, Vietnam, Thailand and to further expand The House Collective to Tokyo, Shenzhen U.S.A. Residential Market Outlook and Xi’an. There are EAST hotels in Hong Kong, Beijing and With urbanisation, a growing middle class and a limited Miami. EAST Miami ceased to be owned by the Group since supply of luxury residential properties, the residential October 2021 but is managed by the Group under a third- markets in Shanghai, the Chinese Mainland, Jakarta, party hotel management agreement. The Group also has Indonesia, Ho Chi Minh City, Vietnam and Bangkok, interests in non-managed hotels in Hong Kong, Guangzhou, Thailand are expected to be stable. The outlook for the Shanghai and Miami. luxury residential market in Miami remains positive. Florida Businesses in the managed hotels in Hong Kong and the is an attractive destination for homebuyers due to its Chinese Mainland recovered strongly following the lifting favourable climate and tax regime, as well as its location as of COVID-19 associated measures and the full reopening of a gateway city to and from Latin America. the border. Operating performance of the managed hotel in Estate Management the U.S.A. was stable. The managed hotels (including restaurants and hotel The Group manages 19 residential estates which it has management office) recorded an operating profit before developed. It also manages OPUS HONG KONG, a depreciation of HK$88 million in 2023, compared with residential property in Hong Kong which the Group an operating loss before depreciation of HK$118 million redeveloped for Swire Pacific Limited. The management in 2022. services include day to day assistance for residents, management, maintenance, cleaning, security and renovation of common areas and facilities. The Group places great emphasis on maintaining good relationships with residents. 59