Statement of responsibility by the Board of Directors
for the year ended 31 March 2020

Hospitality Property Fund Limited (‘the Company’) and its subsidiaries’ directors are required by the Companies Act to maintain adequate accounting records and to prepare financial statements for each financial year which fairly present the state of affairs of the Company and its subsidiaries (‘the Group’) for the financial year ended 31 March 2020 and of the results of operations and cash flows for the period. In preparing the accompanying consolidated annual financial statements, the JSE Listings Requirements and the requirements of the Companies Act of South Africa 2008, as amended, together with the International Financial Reporting Standards (‘IFRS’) have been followed, suitable accounting policies have been used, applied consistently, and reasonable and prudent judgements and estimates have been made. Any changes to accounting policies are approved by the audit and risk committee and the effects thereof are fully explained in the annual financial statements. The annual financial statements incorporate full and responsible disclosure. The Board of Directors (‘the Board’) has oversight for the information included in the integrated annual report and is responsible for both its accuracy and its consistency with the annual financial statements.

The Board has reviewed the Group’s cash flow forecast for the year to 31 March 2021. On the basis of this review, and in light of the current financial position and existing borrowing facilities, the Board is satisfied that the Group is a going concern and they have accordingly adopted the going concern basis in preparing the annual financial statements. The Group’s independent auditors, PricewaterhouseCoopers Inc., have audited the annual financial statements and their unqualified report appears in the Independent auditor's report. PricewaterhouseCoopers Inc. was given unrestricted access to all financial records and related data, including minutes of all meetings of shareholders, the Board of Directors and committees of the Board. The directors believe that all representations made to the independent auditors during their audit are valid and appropriate.

The Board recognises and acknowledges its responsibility for the Group’s systems of internal financial control. The Group’s code of conduct, which covers ethical behaviour, compliance with legislation and sound accounting practice, underpins its internal financial control process. The control systems include written accounting and control policies and procedures, clearly defined lines of accountability and delegation of authority, and comprehensive financial reporting and analysis against budgets and forecasts which are approved by the Board.

The Board considers that the systems are appropriately designed to provide reasonable, but not absolute, assurance that assets are safeguarded against material loss or unauthorised use and that transactions are properly authorised and recorded.

The effectiveness of the internal financial control systems is monitored by the Chief Executive Officer and Financial Director and through testing by internal auditors and the independent auditors’ testing of appropriate aspects of the internal financial control systems during the course of their statutory examinations of the Company and its subsidiaries.