News Release
May 16, 2024

Start of hotel development business in New Zealand－Business and Portfolio Expansion to Oceania－Toda Corporation (Headquarters: Chuo-ku, Tokyo; President: Otani Seisuke) is pleased toannounce the acquisition of a majority stake in Coherent Hotel Ltd. (hereinafter “Coherent”),
a subsidiary of the Colwall Group which operates hotel businesses in New Zealand. The
acquisition was successfully completed by way of third-party allotment of capital via ourSingapore-owned subsidiary, Toda Asia Pacific Pte. Ltd.
With this acquisition, we will participate in a hotel development project that will not only
meets the needs of the country, where demand is expected to increase as tourism demand
recovers, but also expands the group’s business portfolio to Oceania
1.

Reasons for new business development in New Zealand
As one of the priority management businesses, the Group has been developing ouroverseas business with a particular focus on Asia, a region which is experiencing strong
economic growth. Till now we have mainly focused on developing countries such as
Thailand, Vietnam, and Indonesia, and building a more stable portfolio balance remains
an ongoing issue when expanding our overseas business. Therefore, to optimize ourbusiness portfolio and secure stable revenue base, we have decided to take part in ahotel development project in New Zealand, a developed country that is expected tocontinue to grow economically and has an internationally transparent businessenvironment.
The tourism industry is an important industrial sector that accounts for approximately
10% of New Zealand's total GDP, and this project will help resolve the policy issue ofdealing with the future shortage of hotel rooms as the country continues to recoverinbound tourism after the coronavirus pandemic. This new business development in
New Zealand will strengthen the relationship between the two countries and deepen
business collaboration, aiming to realize a free and open Indo-Pacific.

2.

Overview of the company
Coherent operates the highly acclaimed hotel Kamana Lakehouse and restaurant Nest
Kitchen & Bar in Queenstown, one of the New Zealand’s premier resort destinations.
The hotel is in a prime location overlooking Lake Wakatipu, nicknamed "Jade Lake"due to its clear, beautiful water surface, and has additional facilities such as a restaurant,spa, and function room that can accommodate weddings. All these facilities offer
spectacular views of the remarkable mountain range and Lake Wakatipu. In May 2021, aceremony to declare the resumption of free travel between New Zealand and Australia in
anticipation of the post-coronavirus was held at the hotel with the Prime Ministers of bothcountries in attendance, and the hotel has become known as one of Queenstown's
leading hotels.
＜Overview of Kamana Lakehouse＞

Address：139 Fernhill Road 9300 Queenstown New Zealand
Number of rooms：73 rooms
Facilities：Restaurant, Bar, Spa, Conference room, Car park
Access：20 minutes’ drive from Queenstown Airport

Kamana Lakehouse and Site for new building

Guest roomSpa

Restaurant

Terrace

The number of foreign tourists to the country is expected to reach 5.5 million people by2027, an increase of 30% from 2019. We are planning to construct 11 new residence-type
hotels. In the new hotel building, each standard type has an area of more than 300 square
meters, and can be divided according to the needs of the guests. All rooms have views ofLake Wakatipu, and each guest room is equipped with a kitchen, living room, terrace, spa,etc. Scheduled to open in 2027, the new hotel building will present travellers a whole newexperience that meet the needs of a luxurious stay with an emphasize on quality andprivacy.
＜Overview of New building (plan)＞

Open：2027
Site area: 9,886sqm
Total floor area: 11,912sqm
Facilities：Private Dining, Bar, Spa, Infinity pool, Function room, Car park

Reception

Infinity pool

Residence

Residence

We will strive to optimize our business portfolio by promoting strategic investments in priority
management businesses and intangible assets that will drive future growth and to achieve our mid-to
long-term goal of 8% ROE, as well as to further enhance corporate value.