HOTEL PORTFOLIO INVESTMENT OPPORTUNITY

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2 HOTEL PORTFOLIO INVESTMENT OPPORTUNITY CPI India Limited (the Client ) has engaged JLL to solicit offers for the sale of a portfolio of Aloft Hotels The offer presents a compelling and rare opportunity to invest in a portfolio of internationally branded full service hotels, located in key markets of South and West of India; Bengaluru, Chennai, Ahmedabad and Coimbatore (singularly the Hotel and collectively the Hotels )

3 KEY INVESTMENT HIGHLIGHTS PRIME LOCATION Each Hotel is located well within important commercial centres of the key cities; Whitefield in Bengaluru; the OMR in Chennai; SG Highway in Ahmedabad; and Singanallur in Coimbatore DIVESTMENT The sale involves the 100% divestment of the shareholders, including approximately 97% of the holdings of the Client. The sale will be structured as a company sale SIZEABLE PORTFOLIO The investment provides for an income producing portfolio of operating assets and a sizeable room inventory of 638 keys GLOBAL BRAND The Hotels are branded by Starwood Hotels & Resorts under a franchise agreement with the Aloft brand and are managed by Auromatrix Hotels Pvt. Ltd INSTITUTIONAL OWNERSHIP The portfolio being divested is part of a fund managed by Apollo

4 MARKET TRENDS Improving macro-economic fundamentals of the country combined with 1) evidence of improving hotel performances in almost all key markets over the last one year; 2) declining future hotel supply pipeline and 3) investors intent to negate exposure to the risks associated with development of hotels in India, has generated significant demand for the acquisition of operating hotels INDIA HOTEL TRANSACTION The year 2015/2016 generated he highest historic volume of hotel transactions in India. The hotel market recorded transaction volume of approximately INR 19,080 million, up by nearly 26% over the second highest volume of transactions recorded in 2009/2010. This is reflective of the general outlook that the operating performance of hotels across all key markets is now improving and will result in enhanced yields over the near to medium term HOTEL TRANSACTION VOLUME: 2004/05 TO 2015/16 INR Millions 25,000 20,000 15,000 10,000 5, ,670 3,900 7,922 4,821 15, ,981 9,430 10,029 7,308 19, / / / / / / / / / / / /16

5 INDIA MACRO AND TOURISM OVERVIEW INDIA IS POISED TO GROW THE FASTEST AMONG ALL BRICS NATIONS The Tourism sector accounts for 7.5 % of the GDP and is the third largest foreign currency generator for the country. It s direct contribution to GDP was estimated to be US$ 42.8 billion in 2015 As per World Travel & Tourism Council estimates, by 2025, tourism related activities in India will grow at 7.2% per annum and contribute approximately US$ 85.6 billion to the GDP The Indian economy has experienced steady growth, despite the uncertainty and slowdown impacting global markets. It has in the recent times benefited from a blend of reducing commodity prices, strong foreign inflows, government policy initiatives and infrastructure spending and easing inflationary pressures. According to Moody s Investor Service, India is less exposed to global risks than other global markets, due to its resilient economic growth and the impact of positive policy reforms DOMESTIC TOURISTS 1,431 Million in 2015 has grown at a CAGR of 13.2% over last 5 years INTERNATIONAL TOURISTS 8 Million in 2015 has grown at a CAGR of 6.2% over last 5 years LATEST GDP PROJECTIONS FOR FY % 7.5% 7.5% 7.5% 7.5% 7.4% 7.4% 7.3% 7.3% 7.2% IMF Asian Dev. Bank India Ratings World Bank Finance Ministry

6 INDIA HOTEL MARKET PERFORMANCE TOP 9 CITIES THE INDIAN HOTEL MARKET OVER THE PAST YEAR HAS WITNESSED SUSTAINED GROWTH IN PERFORMANCE ADR/RevPAR (in INR) In 2015, the market recorded an average occupancy of 65%; the highest over the past six year period. In the first half of 2016, the market has already outperformed the same period last year, with Revenue Per Available Room (RevPAR) growing by 6% 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 7,580 59% 4,469 6, % 4,105 INDIA HOTEL MARKET PERFORMANCE 6,284 61% 3,828 5,896 60% 3,534 5,496 60% 3,292 5,234 62% 3,230 5,250 65% 3,458 5, H ADR RevPAR Occupancy% 61% 3,473 64% 5,776 3,680 H % 70% 60% 50% 40% 30% 20% Occupancy With the slowing supply and the overall positive economic growth prospects for the country, the industry is expected to experience a continued increase in occupancy over the short to medium term. Most industry experts agree that performance is at the beginning of a long overdue upcycle The development pipeline of new hotel supply is declining. The projected total supply of branded hotels for the top 9 cities is anticipated to grow by only 3-4% year over year for the next three years; much lower than the preceding five years, when the supply grew at a rate ranging between 6-8%

7 KEY HOTEL TRANSACTIONS UPSCALE AND MIDSCALE SEGMENTS EASTIN HOTEL AHMEDABAD Seller Shree Siddhi Group Buyer SAMHI Date Dec-15 Price INR million 1,450 No. of Rooms 156 INR /Room (million) 9 Project Stage Operational Upscale From the data available, most trades have been made on a Replacement Cost / Discount to Replacement Cost basis. The average acquisition cost for the above comparable trades translates to INR 8.4 million/ room. GATEWAY HOTEL, OMR CHENNAI Upscale Seller RAS Adyar Hotels Pvt. Ltd Buyer LBR Hotels Date Jun-11 Price INR million 1,100 No. of Rooms 190 INR /Room (million) 6 Project Stage Under Construction AURA GRANDE COURTYARD BY MARRIOTT MUMBAI Midscale AHMEDABAD Since 2014, the average acquisition cost of comparable Seller Annakoot Properties Seller Pachost Limited Buyer MRG Hospitality trades has moved up to INR 9.00 Million/ Room and in Buyer Mr. Rahul Aggarwal Date Sep-15 Date Mar-12 Price INR million 1, amounted to INR 9.04 Million/Room. Both Years Price INR million 1,600 No. of Rooms 94 No. of Rooms 164 show an improving trend in the market INR /Room (million) 11 INR /Room (million) 10 Project Stage Operational Project Stage Operational Upscale FOUR POINTS BY SHERATON RESEDA - THE FERN REGENTA ONE CLARION HOTEL WHITEFIELD SVELTE HOTEL & PERSONAL SUITES VIZAG Midscale CHENNAI Midscale HYDERABAD Upscale BANGALORE Midscale NEW DELHI Midscale Seller Vishnu Priya Hotels Seller Rayala Group Seller Royal Orchid Hotels Pvt. Ltd. Seller Inovoa Hotels & Resorts Seller Tristar Hotels Pvt. Ltd. Buyer SAMHI Buyer Aitken Spence Buyer SAMHI Buyer Fleur Hotels Buyer Advent Hospitality Date Jul-15 Date Jun-14 Date Feb-14 Date Jul-13 Date Oct-12 Price INR million 950 Price INR million 1,500 Price INR million 1,910 Price INR million 640 Price INR million 1,150 No. of Rooms 126 No. of Rooms 143 No. of Rooms 238 No. of Rooms 130 No. of Rooms 82 INR /Room (million) 8 INR /Room (million) 11 INR /Room (million) 8 INR /Room (million) 5 INR /Room (million) 14 Project Stage Operational Project Stage Operational Project Stage Operational Project Stage Operational Project Stage Operational ROYAL ORCHID CENTRAL AHMEDABAD Midscale Seller Royal Orchid Hotels Pvt. Ltd. Buyer SAMHI Date Apr-12 Price INR million 670 No. of Rooms 104 INR /Room (million) 6 Project Stage Operational

8 LOCATION OF ALOFT HOTELS Aloft Bengaluru Whitefield Ahmedabad, Gujarat Aloft Chennai OMR-IT Expressway Bengaluru, Karnataka Aloft Ahmedabad S.G. Highway Coimbatore, Tamil Nadu Aloft Coimbatore Singanallur Chennai,Tamil Nadu

9 Aloft Bengaluru Whitefield

10 BENGALURU - STATE CAPITAL OF KARNATAKA IT & ITES CAPITAL & THIRD LARGEST COMMERCIAL CITY IN INDIA Bengaluru s primary room night demand generator is the IT/ITeS sector, followed by Banking and Financial Services, Pharmaceutical, Defence and Aerospace The total Grade A office space in the city is 107 million square feet with a vacancy rate of only 7.5%. There is an additional 20 million square feet under construction in direct response to a surge in office demand The city is experiencing a significant increase in demand for additional grade A office space and this, coupled with a decrease in new hotel supply, is expected to drive increases in average occupancy levels and ADR s in the short to medium term The total room supply for of all categories of hotels (the Quality Hotel Supply ) in the city is 20,229 rooms, representing 235 hotels and making it the second largest hotel market in the country BENGALURU HOTEL MARKET PERFORMANCE New hotel supply growth in the city is anticipated to slow from 6.5% over the past six years to 4.0% over the next four to five years Market occupancy has shown consistent improvement since In 2016 the city has witnessed a continued increase in Occupancy and in Average Daily Rate ( ADR ) ADR/RevPAR (in INR) 10,000 8,000 6,000 4,000 2,000 53% 60% 54% 52% 57% 57% 65% 64% 65% 70% 60% 50% 40% 30% 20% 10% Occupancy ADR H H RevPAR Occupancy% Source: STR 0%

11 WHITEFIELD KEY SUBURBAN BUSINESS DISTRICT LOCATION MAP ALOFT WHITEFIELD BENGALURU N Whitefield currently has total office space of 29.7 million square feet, with a vacancy rate as of Q of 13.5% WHITEFIELD MAIN RD Kaveri nagar Nearly 71%, or 21.3 million square feet of the office supply is Grade A quality with a vacancy rate of 9% An additional 2.8 million square feet of office space is currently und er development and is expected to become available in the next two years The Quality Hotel Supply for the submarket is 3,095 rooms, with only two upscale hotels currently under construction KEY EXISTING COMMERCIAL DEVELOPMENTS 1 2 International Tech Park Brigade Tech Park National Highway -7 Garudachar Palya 4 Krishnappa Garden Thigalarapalya Basavanna nagar Shivaji Nagar 5 6 1ST MAIN ROAD Prestige Shantiniketan Apartment Owners Concor 1 2 Pattandur Agrahara 3 3 GR Tech Park 8 7 The Hotel has a prime location within Whitefield, with good visibility from the Main Whitefield Road and easy access to established campuses / centres / tech parks containing a host of domestic and international IT/ITeS companies such as Accenture, Intel, and Honeywell Prestige Featherlite Tech Park Scora Tech Park Shailendra Tech Park Kundalahalli main rd CMR Institute of Technology Kundalahalli 7 Kalyani Platina Techpark 8 MFAR Silverline Tech Park Representative Map not to scale ALOFT WHITEFIELD BENGALURU

12 ALOFT BENGALURU WHITEFIELD KEY INFORMATION Location Sadaramanngala Road, Off Whitefield Main Road Opposite ITPL, Whitefield, Bengaluru Year of Opening August 2010 Land area 10,414 Square Meters Land title Freehold Built up area 17,743 Square Meters ALL DAY DINING Number of rooms 166 Food & Beverage Facilities Re:Fuel : Grab and Go Dot.Yum: All Day Dining WXYZ: Bar Banquet Facilities Tactic 2 46 Square Meters Tactic 3 46 Square Meters The Hub Square Meters HUB I 102 Square Meters, excluding outdoor lawn area of 3,477 Square Meters Additional Facilities Swimming Pool, Lounge and Fitness Centre LOBBY POOL

13 Aloft Chennai OMR-IT Expressway

14 CHENNAI - STATE CAPITAL OF TAMIL NADU BIGGEST CULTURAL, ECONOMIC AND EDUCATIONAL CENTRE OF SOUTH INDIA Chennai has been at the forefront of development in India. It is the fourth largest commercial city in the country Room night demand is well diversified, emanating from the IT/ITeS, Manufacturing, Textiles, Automobiles, Banking and Financial Services and Pharmaceutical sectors Demand is showing an upward trajectory and together with the reduction in new hotel supply is expected to increase average occupancy levels in the short to medium term, with ADR s following a similar trend The city has total Grade A office space of 42 million square feet with a vacancy rate of 8.8%. An additional 4.5 million square feet of Grade A office space under construction The Quality Hotel Supply in the city is 13,655 rooms, represented by 137 hotels and making it the fifth largest hotel market in the country New hotel supply growth is anticipated to slow from 5.0% over the past six years to 3.1% over the next four to five years After experiencing a slow down starting 2012, the hotel market performance in last several years has shown consistent improvement ADR/RevPAR (in INR) 6,000 4,000 2,000 59% CHENNAI HOTEL MARKET PERFORMANCE 65% 66% 62% 61% 62% 60% 57% 53% 70% 60% 50% 40% 30% 20% 10% Occupancy H ADR RevPAR Occupancy% H Source: STR 0%

15 OLD MAHABALIPURAM ROAD KEY SUBURBAN BUSINESS DISTRICT The Old Mahabalipuram Road ( OMR ) corridor is largely know for its IT/ITeS developments and accounts for a majority of the hotel room demand in this submarket The OMR collectively has 24.6 million square feet of Grade A office space, or more than half of total office space in Chennai LOCATION MAP ALOFT CHENNAI OMR IT EXPRESSWAY N Pallikaranai 1 2 Perumbakkam Road Injambakkam Karappakam 49 Olive Beach Vgp Golden Beach Resort An additional 2.5 million square feet of office space is urrently under development, with most of it in proximity to the Hotel 49A Sholinganallur Road The Quality Hotel Supply in the submarket is 1,196 rooms. While 980 additional rooms are earmarked to open over the next year, the OMR market remains much smaller than its peer group such as Whitefield, in Bangalore The Hotel has prime location on the OMR in Sholinganallur, with excellent visibility and access ALOFT CHENNAI OMR IT EXPRESSWAY KEY EXISTING COMMERCIAL DEVELOPMENTS Futura Tech Park TECCI Park- ECCI Info Park Sathyabhama University SIPCOT Industrial Park Karanai Thalambur 3 Navallur 4 OLD MAHABALIPURA M ROAD (OMR) Mayajaal Multiplex East Coast Road (Ecr) Kanathur Uthandi Beach ECR Beach Representative Map not to scale

16 ALOFT CHENNAI OMR IT EXPRESSWAY KEY INFORMATION Location OMR IT Expressway, Sholinganallur, Chennai Year of Opening July 2010 Land area 6,152 Square Meters Land title Freehold BAR Built up area 11,789 Square Meters Number of rooms 129 Food & Beverage Facilities Re:Fuel : Grab and Go Dot.Yum : All Day Dining WXYZ : Bar Banquet Facilities Tactic 1,030 Square Meters The Hub 271 Square Meters Additional Facilities Swimming Pool, Lounge and Fitness Centre LOBBY ALL DAY DINING

17 Aloft Ahmedabad S.G. Highway

18 AHMEDABAD - COMMERCIAL CAPITAL OF GUJARAT FASTEST GROWING TIER 2 CITY IN INDIA Room night demand in Ahmedabad is driven by Manufacturing, followed by Banking, Financial Services and Pharmaceuticals Major infrastructure initiatives by the government including redevelopment of tourist facilities, new convention center and ongoing development of Gujarat International Finance Tec-City ( GIFT ) have paved the way to generate future hotel demand in the city With a significant amount of additional office space expected to be delivered along with a large drop in new hotel supply, we expect the average occupancy levels and ADR s to increase in the short to medium term GIFT is a major commercial project under development which is expected to consist of 42 million square feet of commercial office space. The project aims at being a hub for the global finance services industry and will be a significant demand generator for hotel room nights in the city The Quality Hotel Supply in the city is approximately 4,420 rooms, represented by 54 hotels. New hotel supply growth is anticipated to drop from 27.2% over the past six years to 6.5% over the next four to five years The hotel market performance, despite strong supply increases in the past, has been resilient due to improving fundamentals and investor sentiment ADR/RevPAR (in INR) 6,000 5,000 4,000 3,000 2,000 1,000 63% AHMEDABAD HOTEL MARKET PERFORMANCE 62% 56% 55% 56% 54% 56% 50% 57% 70% 60% 50% 40% 30% 20% 10% Occupancy ADR RevPAR H Occupancy% H Source: STR 0%

19 S.G. HIGHWAY KEY SUBURBAN BUSINESS DISTRICT S.G. Highway today has become more relevant than the current CBD of the city LOCATION MAP ALOFT AHMEDABAD S.G. HIGHWAY KEY EXISTING COMMERCIAL DEVELOPMENTS Santej Rakanpur 147 Gota-ognaj Rd 3 It not only has better quality office space, hotels and residential but also connects the major industrial hubs, such as Sanand, to the city center as well as to Gandhinagar, the state capital A majority of the existing upscale branded hotels are located on the S.G. Highway. Currently only two new branded hotels are under construction The Hotel has prime location along S.G. Highway, with excellent visibility and access It is the first branded hotel available en-route from Gandhinagar to S.G. Highway 1 Sanand 2 Gujarat High Court 3 Civil Hospital 4 Prahlad Nagar ALOFT AHMEDABAD S.G. HIGHWAY N Kaneti 1 Garodiya Godhavi Rancharda Palodia Ambli Road Shela Shilaj Sardar Patel Ring Road Karnavati Club Science City Rd Thaltej S.G.HIGHWAY Representative Map not to scale

20 ALOFT AHMEDABAD S.G. HIGHWAY KEY INFORMATION Location SG Road, Ahmedabad Year of Opening May 2013 Land area 4,724 Square Meters Land title Freehold W XYZ BAR Built up area 17,413 Square Meters Number of rooms 176 Food & Beverage Facilities Re:Fuel : Grab and Go Dot.Yum : All Day Dining WXYZ : Bar Banquet Facilities Banquet Hall 235 Square Meters Tactic 1 33 Square Meters Tactic 2 46 Square Meters Additional Facilities Swimming Pool, Lounge and Fitness Centre LOBBY GYM

21 Aloft Coimbatore Singanallur

22 COIMBATORE TEXTILE CAPITAL OF SOUTH INDIA Room night demand in Coimbatore is primarily driven by Textiles, Manufacturing, Education, IT/ITeS and Medical Tourism; travel which brings patients and families from neighboring cities for good quality medical treatment available in the city MICE (Meetings, Incentives, Conferencing and Exhibitions) is a significant segment for room night demand, being driven by the educational, medical and industrial sectors The hotel market performance in the last few years has been under pressure due to excess supply, however 2015 witnessed a significant increase in occupancy driven primarily by the improvement in the city s economy Exhibition space such as CODISSIA Trade Fair complex hosts a large number of national and international fairs and is a consistent hotel demand generator COIMBATORE HOTEL MARKET PERFORMANCE The Quality Hotel Supply in the city is approximately 750 rooms. A total of 602 new rooms are expected to open over the next four years ADR/RevPAR (in INR) Occupancy

23 ALOFT COIMBATORE THE HOTEL SINGANALLUR The Hotel has good visibility and is located in close proximity to the Coimbatore Airport, Trichy Road, CODISSIA Trade Fair Complex, ESI Hospital and Kovai Medical Center It is well positioned to cater to manufacturing related demand from Trichy Road and spill-over business from Tirupur LOCATION MAP ALOFT COIMBATORE SINGANALLUR N Sivasakthi Nagar 4 5 Coimbatore Medical College 3 AVINASHI RD 1 Coimbatore International Airport ALOFT COIMBATORE SINGANALLUR KEY EXISTING COMMERCIAL DEVELOPMENTS 1 Coimbatore International Airport Masakalipalayam AVINASHI RD 6 Karunanithi Nagar Lakshmipuram KAM RAJ R OAD Ramanuja Nagar Indira Garden 2 ESI Hospital Uppilipalayam Coimbatore Medical College CODISSIA Trade Fair Complex Annai Velankanni Nagar Sri Vignesh Nagar ANDALAMAL LAYOUT 5 Kovai Medical Centre Venkata Lakshmi Nagar Trichy Road 6 PSG Group Of Colleges Representative Map not to scale Representative Map not to scale

24 ALOFT COIMBATORE SINGANALLUR KEY INFORMATION Location Kamaraj Road, Coimbatore Year of Opening August 2011 Land area 6,283 Square Meters Land title Freehold Built up area 15,403 Square Meters POOL Number of rooms 167 Food & Beverage Facilities Re:Fuel : Grab and Go Dot.Yum : All Day Dining Estla : Specialty WXYZ : Bar Banquet Facilities The Hub 241 Square Meters Tactic 1 & 2 92 Square Meters Additional Facilities Swimming Pool, Lounge, Fitness Centre LOBBY LOUNGE ALL DAY DINING

25 For further details please contact: MANDEEP S. LAMBA Managing Director, India Hotels and Hospitality Group Jones Lang LaSalle Property Consultants (India) Pvt. Ltd AKASH DATTA Vice President, India Hotels and Hospitality Group Jones Lang LaSalle Property Consultants (India) Pvt. Ltd COREY J. HAMABATA Senior Vice President, Asia Hotels and Hospitality Group, Jones Lang LaSalle Property Consultants Pte Ltd