Shangri-La Asia Limited announced the Hotel Agreements between SLIM-HK (as manager), SLIM-BVI (as IP head-licensor), SLIM-SG (as IP sub-licensor) and the Project Co (as owner) in relation to the provision of the Hotel Marketing Services to the Hotel (a hotel owned by the Project Co and opened for operations in March 2016), and the licence of the IP to the Project Co enabling it to operate the Hotel bearing the name of Shangri-La for a term which will expire on 31 December 2020. On 31 December 2020, pursuant to the terms of the Hotel Agreements, SLIM-HK, SLIM-BVI and SLIM-SG exercised their right to renew the Hotel Agreements under the same terms and conditions of the Hotel Agreements for a further 3-year term until 31 December 2023. The operating term commenced from the opening date of the Hotel and ended on 31 December of the first anniversary of such opening date (i.e., 31 December 2017). Each of SLIM-HK, SLIM-BVI and SLIM-SG under its respective Hotel Agreement has the right to decide whether the term shall be renewed for another consecutive 3-year term (or part thereof of the remaining term) provided that the entire initial term of each Hotel Agreement shall not be longer than 10 years from the opening date of the Hotel. The Hotel was opened in March 2016. Upon expiry of the said initial term of 10 years, the relevant parties may each elect to extend the term for successive 3-year terms (or part thereof) provided that the aggregate term of the renewal period shall not exceed 10 years. As the provision of hotel marketing and related services is one of the main businesses of the Group, it is in the interests of the Group to renew the Hotel Agreements. The Directors (including the independent non-executive Directors) consider that the pricing policy for the determination of the Fees (including the specified fixed percentages and fixed amounts as the basis for the Fees) was conducted on normal commercial terms by reference to the comparable fees under the hotel services agreements of the other five hotels managed by the Group within the jurisdiction and confirm that the Fees are comparable to or no less favourable to fees charged to such other hotels, which include a hotel owned by a third party owner. The Directors also take the view that the renewal of the Hotel Agreements is in the ordinary and usual course of business of the Group, and believe that the terms of the Hotel Agreements remain as normal commercial terms and are fair and reasonable and in the interests of the Company and its shareholders as a whole. The Board confirms that none of the Directors had any material interest in the Hotel Agreements and accordingly none of such Directors was required to abstain from voting on the resolutions in relation to the renewal of the Hotel Agreements.