Trading statement HOSPITALITY PROPERTY FUND LIMITED (Incorporated in the Republic of South Africa) (Registration number 2005/014211/06) Share code for A-linked units: HPA ISIN for A-linked units: ZAE000076790 Share code of B-linked units: HPB ISIN for B-linked units: ZAE000076808 ("Hospitality" or "the Company") TRADING STATEMENT In terms of the Listings Requirements of the JSE Limited, property entities are required to publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the distribution for the next distribution period, will differ by at least 15% from that of the previous corresponding period or from a profit forecast previously provided to the market, in relation to such period. The combined distribution for the 6 months to 30 June 2015 ("the period") was forecast at 92.15 cents made up of 75.10 cents per A-linked unit and 17.05 cents per B-linked unit. This forecast ("the forecast") forms the baseline for the purpose of this trading statement. Trading conditions in the hotel sector remain challenging with occupancy levels relatively static and average daily rates ("ADR") growing slightly ahead of inflation. According to the latest STR Global South Africa Hotel Review (July 2014 to March 2015), the industry recorded occupancy growth of 0.7% to 64.2%, ADR increased by 5.9% to R1 059 resulting in RevPar growth of 6.7% to R680 for the nine months ended 31 March 2015. Hospitality’s trading for the core portfolio which is subject to variable rental income, and excluding conference hotels (hotels where the revenue generated by conferencing exceeds rooms revenue), was largely in-line with the overall hotel and leisure market. Occupancy increased by 0.4% to 67,5% and ADR increased by 5,1% to R1 359 resulting in RevPar growth of 5,5% to R917 for the nine months ended 31 March 2015. However, the non-core portfolio and conferencing hotels in particular showed poor results. As a result, the trading performance for the Company was weaker than expected when compared to the forecast.The volatility of conference business, in particular the fall- off of government business, has had a major negative impact on the performance of the Birchwood Hotel and OR Tambo Conference Centre and Mount Grace Hotel & Spa. Due to the decline in revenue, the current fixed overheads at these hotels are being reviewed by the hotel operators. While there has been a significant decline in public sector spending across the portfolio, this was partly offset by strong performances of the Company’s Cape Town properties, mainly The Westin and Radisson Blu Waterfront. The combined distribution for the period is expected to be at least 16.7% or 15.35cpu lower than the forecast, representing an expected combined distribution of 76.81 cents. The A-linked unit distribution is likely to be in line with the Company’s distribution policy, at 75.10 cents per A-linked unit and the B-linked unit distribution is expected to be at least 90% or 15.35cpu lower than forecast, representing an expected distribution of 1.71 cents per B-linked unit. There is currently insufficient certainty to enable Hospitality to provide specific guidance on the expected combined distribution for the period and it is anticipated that the Company will publish a further trading statement closer to the release of its results for the year ended 30 June 2015. The forecast financial information on which this trading statement is based has not been reviewed and reported on by the Company’s auditors. Johannesburg 25 May 2015 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 25/05/2015 04:42:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.