HOSPITALITY PROPERTY FUND LIMITED - Upgrade of Hospitalitys National Scale Issuer rating

Upgrade of Hospitality’s National Scale Issuer rating

HOSPITALITY PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2005/014211/06)
JSE share code: HPB    ISIN: ZAE000214656
Company code: HPAI
(Approved as a REIT by the JSE)
("Hospitality")

UPGRADE OF HOSPITALITY'S NATIONAL SCALE ISSUER RATING

Shareholders and bondholders are advised that on 27 September 2018 Global Credit Ratings Co. ("GCR") upgraded the national
scale issuer ratings assigned to Hospitality to A-(za) and A1-(za) in the long-term and short-term respectively.

The outlook on the rating is accorded as Positive, recognising Hospitality's enlarged and more diversified portfolio of hotels as a
result of two significant property transactions concluded with Tsogo Sun Holdings Limited ("Tsogo Sun") ("the Transactions")
and the successful refinancing and lengthening of debt maturities, with Hospitality displaying no material debt maturities over the
next two years. The Transactions increased Hospitality's portfolio to 53 properties at a combined value of R12.6 billion at FY2018
from R5.3 billion in FY2016.

In addition, GCR noted the recently announced transaction to acquire seven casino precincts from Tsogo Sun, will materially
transform Hospitality and further improve its business risk profile by enhancing its scale and diversifying its assets and revenue
sources and is expected to strengthen Hospitality's credit risk profile.

Hospitality's rating could potentially be upgraded by multiple notches post the acquisition of the seven casino precincts, depending
on the degree of strengthening of its credit risk profile.

The full GCR rating report on Hospitality is available online at http://www.hpf.co.za/investors/credit-rating.

28 September 2018

Sponsor
Java Capital

Debt Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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