Upgrade of Hospitality’s National Scale Issuer Ratings Hospitality Property Fund Limited (Incorporated in the Republic of South Africa) (Registration No. 2009/016487/06) Company code: HPAI (Approved as a REIT by the JSE) (“Hospitality”) UPGRADE OF HOSPITALITY’S NATIONAL SCALE ISSUER RATINGS Hospitality would like to advise all its Shareholders that on 18 October 2016 Global Credit Ratings (“GCR”) upgraded the national scale issuer ratings assigned to Hospitality to BBB+(za) and A2(za) in the long term and short term respectively. The outlook on the rating is accorded as Stable, recognising the strengthening of Hospitality’s credit profile, as well as the increased portfolio scale following the recent concluded transaction with Tsogo Sun Holdings Limited (“Tsogo”). The transaction brought on 10 established properties, raising the value of Hospitality’s consolidated property investments from R5.3 billion FYE16 to an estimated R7.1 billion as well as the resultant potential pipeline of future acquisition opportunities. At FYE16, Hospitality’s LTV ratio was reported at a conservative 33%. With the Tsogo transaction being ungeared, GCR expects that Hospitality’s leverage will fall to the lower end of its targeted range of 25%-35% over the intermediate term unless major acquisitions materialise. Other key credit metrics, such as interest coverage and earnings based gearing are expected to remain at stronger levels due to moderate debt increases and cash flow growth. The full GCR rating report on Hospitality is available online at http://www.hpf.co.za/downloads/GCROct16.pdf 25 October 2016 Debt Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 25/10/2016 01:00:00 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.