About this report
Our strategic objectives are:
Reporting philosophy and target audience
Integrated thinking is a key component of how we manage our business and develop our internal strategy and reporting practices.
At Hospitality, we define value as delivering sustainable returns to our shareholders through the payment of dividends and capital appreciation, while positively contributing to our employees, business partners and the economy.
Hospitality uses distribution per share as the relevant performance measure for trading statement purposes in terms of the JSE Listings Requirements.
Our strategy was developed to ensure we manage the resources and relationships needed to create value over time. Our focus during the coronavirus (‘Covid-19’) pandemic is to protect the Fund’s assets and to ensure the Fund’s sustainability during these unprecedented times. Further information is included in the Chairman and Chief Executive Officer’s (‘CEO’) report. A review of the interaction with our key resources and the various relationships held can be found here.
Please refer to the statement pertaining to any forward-looking statements that may be contained in this report.
In this report we present our target audience with an integrated and transparent overview of our strategy, business model and performance. Hospitality adopted the King Report on Corporate GovernanceTM for South Africa, 2016 (‘King IV’)* and applied governance practices that result in the achievement of the outcomes of King IV, being an ethical culture, good performance, effective control and legitimacy.
Reporting principle and frameworks
The financial and other information was prepared in accordance with regulatory requirements, namely International Financial Reporting Standards (‘IFRS’), the South African Companies Act, 71 of 2008 (‘Companies Act’), the JSE Listings Requirements, King IV, and the voluntary guidelines of the International Integrated Reporting Council’s (‘IIRC’) International Integrated Reporting
Scope and boundary
This report covers the material risks and opportunities specifically relating to the Fund. Hospitality believes a risk or opportunity is material if it substantially affects the Company’s ability to create and sustain value. We considered all of Hospitality’s direct and indirect risks and opportunities but excluded the risks and opportunities relating to the underlying hotel operations, unless these risks and opportunities are believed to be material to Hospitality. Our process for determining materiality is explained here.
This report covers Hospitality’s performance for the year ended 31 March 2020, compared to the prior year ended 31 March 2019. In addition, we included material subsequent events that occurred post-year end.
The evolving process of integrated reporting continues. At this stage, apart from obtaining external assurance as indicated below, Hospitality did not seek external verification of the non-financial information provided in this report.
|Assured element||Assurance provided||Assurance provider|
|Annual financial statements||Audit||PricewaterhouseCoopers Inc (‘PwC’)|
|Broad-Based Black Economic Empowerment (‘B-BBEE’) level 1 Group rating||Verification||EmpowerBEE|
|Property valuations||Valuation||De Leeuw Valuers Cape Town (RF) Proprietary Limited|
|Internal audit||Internal controls||GRIPP Advisory Proprietary Limited|
Board responsibility and approval statement
The Board, assisted by its audit and risk committee and other sub-committees, is ultimately responsible for overseeing the integrity of the IAR. The audit and risk committee was mandated to oversee the reporting process. The Board applied its collective mind to the preparation and presentation of the IAR. The directors confirm they have collectively reviewed the output of the reporting process and the content of the IAR. The directors believe this IAR is transparent and addresses the material issues facing Hospitality. Therefore, the report is considered a fair presentation of the governance, strategy, performance and prospects of the Group in accordance with the International Framework.
Feedback on the report is welcome and can be sent to email@example.com.
|Marcel von Aulock||Mara de Lima|