Lantern Hotels to Bring One Final Property to Market in 2016

Following the success of the carefully managed asset sell down of 11 hotels over the past 12 months, listed company Lantern Hotels has
decided to list one more freehold hotel in 2016 in the form of what is widely regarded as the company’s jewel in the crown; The Five
Dock Hotel in Sydney’s Inner West.

After outstanding sales results for the company’s Commodore, Uncle Bucks and Ambarvale Hotels in the past month, Lantern Hotels has
confirmed the exclusive engagement of leading hotel broker and Ray White Asia Pacific Director Andrew Jolliffe in order to sell the flag
ship property via EOI closing Monday 5 December 2016.

Jolliffe, who was confirmed again recently as the Number 1 Agent Internationally at the 130 year old Ray White Group, believes the
market appetite for blue chip freehold hotel properties remains very firm. “We’ve enjoyed another year of dramatic sales activity,
particularly in respect of high quality freehold hotels, and this is also true of our colleagues at other agencies who have also seen strong
performance.” “Accordingly, the strength and, most importantly, depth of market rigour is reflective of both the quality of stock we have
been fortunate to win engagement in order to represent, as well as the increasing imbalance between supply and demand for A grade
freehold hotel properties” Jolliffe believes.

Lantern Hotels, having sold The Commodore, Uncle Bucks and Ambarvale Tavern for a 46.5%, 30.5% and 50.2% premium
to respective book values, has identified the opportunity to supply the market with its best known and top ranked gaming hotel; with the
market expected to respond very favourably to the opportunity.

“Lantern Hotels has timed the controlled sell down of its assets perfectly in terms of gauging market sentiment and appetite;
and the decision to save, in our opinion, the best till last in terms of 2016 is equally astute” commented Jolliffe.

The Five Dock Hotel, situated on a prominent corner position in Sydney’s Inner West and set across three expansive levels,
operates 30 very valuable gaming machines; and with only 17 situated in an outdoor area, Jolliffe expects astute operators to quickly
identify with the inherent upside available. “In terms of new business generation, there really are some patent examples within this
offering. Including the remodelling of the tired and commercially disadvantaged gaming room layout; the introduction of a better food and
beverage narrative, and the activation of latent non-revenue generating areas within the property over the upper levels” advised Jolliffe.

Notwithstanding the multiple areas which will respond particularly well to repositioning, Jolliffe is complimentary about the recent trading
levels. “There exists a distinct lack of proximate competition in a very strong commercial and residential corridor, and the recent capital
investment by Lantern Hotels, largely in the form of gaming machine hardware, has seen a demonstrable and very positive profit
injection for the business unit. This augurs well for the successful acquirer, given both the upward revenue trajectory curve the hotel is
undeniably dialled in to, as well as the fact that a material capital works sum of money has already been expensed by the outgoing
vendor” commented Jolliffe.

Jolliffe, who was reported in the AFR recently as having sold Solotel’s Albion Hotel in Parramatta for $60m, is also selling
freehold hotels The Clovelly Hotel via EOI closing 23 November 2016, as well as The Tennyson Hotel in Mascot via Auction
1 December 2016.