MCK: Update on proposed Whangarei Hotel Development

Further to its release in November 2019 regarding its proposed purchase of land located in central Whangarei from the Whangarei District Council, Millennium & Copthorne Hotels New Zealand ("MCK") advises that it has decided not to proceed with the agreement and the associated development. "We are disappointed that we are not able to proceed with the proposed development but the landscape for tourism and accommodation has changed beyond measure since the agreement for the land was entered into in 2019", said MCK Managing Director Mr. BK Chiu. "After a lot of time and work on this project, we have had to make the very difficult decision not to take this agreement further", he said. The decision not to proceed with the proposed hotel will not impact on MCK's 2021 trading or financial position. MCK thanks the Whangarei District Council for its understanding and cooperation during negotiations and throughout 2020 while MCK was reassessing its business case for the proposed hotel. As the negotiations have been confidential to the parties, neither MCK nor Whangarei District Council will be making any further comment. ENDS Issued by Millennium & Copthorne Hotels New Zealand Ltd End CA:00370208 For:MCK Type:TRANSACT Time:2021-04-06 12:00:55