THE LIVING SECTOR UK The Group’s UK residential portfolio showed resilience, supported by strong structural rental demand across both the Private Rented Sector (PRS) and Purpose-Built Student Accommodation (PBSA) portfolios, despite a more subdued macroeconomic environment and an evolving regulatory landscape. The Octagon in Birmingham, with 370 units, achieved full practical completion in August 2025 and entered its initial lease-up phase. The Junction in Leeds, with 665 units, achieved over 90% occupancy by the end of 2025. Construction is on schedule for The Joinery in Manchester (261 units) and The Yardhouse in London (209 units), with completion expected in Q4 2026. For the 2025/2026 Academic Year, the Group’s 2,368-bed PBSA portfolio showed resilience amid a softer operating environment for the UK student sector. Close collaboration with operating partners and targeted leasing initiatives have positioned the portfolio well for Academic Year 2026/2027. Japan The Group’s Japan PRS portfolio, comprising 40 operational assets with 2,246 units, maintained a high average occupancy of over 95% in FY 2025. Sustained rental growth across the Group’s key markets comprising Tokyo, Osaka, Yokohama and Saitama reflects resilient demand for well-located, highquality rental housing. Australia The Archive, a 237-unit PRS development in Southbank, Melbourne, achieved practical completion on 31 October 2025. Leasing activity is gaining momentum and stabilisation is anticipated in 2026. In Brisbane, the Group is exploring the divestment of its 326-unit Toowong residential land parcel, which has received Development Approval (DA), as part of its ongoing efforts to optimise its portfolio. HOTEL OPERATIONS In FY 2025, the Group’s global Revenue Per Available Room (RevPAR) increased 1.3% to $173.6 (FY 2024: $171.3), driven by strong growth in Australasia, Paris and New York despite a slowdown in Asia. Singapore hotels recorded a 5.5% y-o-y decline in RevPAR, with a slight dip in occupancy and a 5.4% decrease in Average Room Rate (ARR) amid increased room supply and demand skewed towards short stays, which intensified price competition. Due to softer ARR and rising operating costs, the GOP margin for Singapore hotels fell by 2.7 percentage points. Performance for Singapore hotels improved in 2H 2025, narrowing the RevPAR gap from 13.6% in 1H 2025 to 5.5% for the full year, largely attributed to popular events such as the Formula 1 Singapore Grand Prix in October and the Blackpink concerts in November. In Rest of Asia, RevPAR declined 4.4% y-o-y and GOP margin compressed by 3.3 percentage points, mainly due to the newly opened M Social Resort Penang, which is in its stabilisation phase, and weaker demand at Grand Millennium Beijing amid the slowdown in the Chinese economy. Australasia hotels delivered a strong performance, with RevPAR rising 13.1% y-o-y to $130.5 (FY 2024: $115.4), fuelled by a 3.8 percentage point increase in occupancy and a 7.2% uplift in ARR. Key performers were Millennium Hotel Queenstown and Sofitel Brisbane Central. The Group’s European hotel portfolio performed relatively well despite uneven demand recovery, as political uncertainties dampened reciprocal travel between the US and Europe. London hotels maintained stable RevPAR with a slight improvement in GOP margin, while Rest of UK and Europe recorded a 10.0% increase in RevPAR, driven mainly by Hilton Paris Opéra. Escenario Akasaka I Japan Hilton Paris Opéra I France ANNUAL REPORT 2025 | 87
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