About this report

Hospitality Property Fund Limited (‘Hospitality’, ‘the Fund’ or ‘the Company’) and its subsidiaries (‘the Group’) are pleased to present the 2020 integrated annual report (‘IAR’) to our stakeholders.

Reporting suite

Our IAR was prepared to provide our target audience with a holistic and transparent view of our business model and strategy. More detailed information is also contained in our supplementary reporting suite, accessible on http://www.hpf.co.za/investors.

Using this report

The following icons are used within our report to reduce repetition and increase connectivity:

Further information available within this report
Further information available online: www.hpf.co.za
Our glossary is included for terms and abbreviations used throughout this report.

Results presentations

A database of the presentation of our interim and year-end results to analysts and investors, can be accessed via http://www.hpf.co.za/investors.

Stock Exchange News Service (‘SENS’) of the JSE Limited (‘JSE’)
A database of all regulatory announcements published on the JSE’s SENS, can be accessed via http://www.hpf.co.za/investors.

Curricula vitae (‘CVs’) of each Hospitality Board member can be accessed via http://www.hpf.co.za/governance.

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 Framework as applicable. We believe these frameworks add objectivity to the report and, as far as possible, we demonstrated the connectivity and integration of these frameworks.

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 info@hpf.co.za.

Marcel von Aulock   Mara de Lima
Chairman   CEO