OPERATIONS AND MARKET REVIEW Overall, the UK and Europe portfolio performance remained resilient, supported by a modest rise in occupancy and a 3.5% y-o-y increase in ARR, which underpinned revenue stability. Structural labour challenges, including staffing shortages and rising minimum wages, weighed modestly on profitability, with GOP margin easing slightly to 41.3%. On a like-for-like basis, excluding the acquisitions of Hilton Paris Opéra in May 2024 and Holiday Inn London - Kensington High Street in December 2025, RevPAR increased 1.0% y-o-y, driven by a 1.2% increase in ARR, partially offset by a slight 0.2 percentage point decline in occupancy. Despite marginally softer occupancy, the Group’s US hotels achieved an ARR of $306.1, a 3.9% y-o-y growth, translating into a 3.4% uplift in RevPAR. Notably, New York continued to outperform, with a 5.2% increase in RevPAR, reaching $334.1 (FY 2024: $317.7). Overall, the GOP margin for US hotels declined by 1.1 percentage points, primarily due to renovations at M Social Hotel New York Downtown, rising operating costs and softer performance at Regional US hotels. To enhance the guest experience and maintain competitiveness, the Group continues to invest in strategic refurbishments and new developments. Two refurbishments were completed in 2025. In Asia, the 318room M Social Resort Penang completed renovations in June and officially opened on 9 July 2025. In the US, the 569-room Millennium Downtown New York completed renovations in Q3 2025 and officially reopened as M Social Hotel New York Downtown on 15 October 2025. In the US, the development of the 263-room M Social Hotel Sunnyvale is underway, while refurbishment works at the 222room Millennium Hotel London Knightsbridge is ongoing, with expected completion by 2026/2027. In line with its growth focus, the Group continues to explore opportunities to deepen its strategic foothold in key international gateways. Through its wholly-owned subsidiary Copthorne Hotel Holdings Limited, the Group completed the acquisition of the 706-room Holiday Inn London - Kensington High Street for £280 million (approximately $480.2 million) or £396,600 per room (approximately $680,200) in December. Located adjacent to the Group’s Copthorne Tara Hotel London Kensington, the acquisition of the ultra-prime freehold site enhances the Group’s hospitality presence in Central London. With this addition, the Group now owns over 3,000 hotel rooms in Central London. MARKET OUTLOOK Despite ongoing geopolitical tensions, trade disruptions and macroeconomic uncertainties, Singapore’s economy grew 5% in 2025, surpassing expectations. The GDP growth forecast for 2026 has been revised to 2% to 4%, up from 1% to 3%. The Group remains confident in the Singapore residential market for 2026, supported by stable demand in public and private housing. With interest rates having moderated, buying interest is likely to remain resilient. On 31 January 2026, the Group launched its highly anticipated 246-unit ultra-luxury freehold Newport Residences. Located at the former Fuji Xerox Towers site on Anson Road, the landmark freehold residence (levels 23 to 45) is part of the 45-storey Newport Plaza, which also houses Newport Tower with Grade A offices (levels 2 to 9) and F&B on level 1, and branded serviced apartments (levels 10 to 22). The project is priced at an average of $3,370 per square foot (psf). As of end February 2026, 164 (67%) units have been sold. Singapore is the Group’s key market where it holds a significant market share. The Group will continue to leverage its development capabilities and market knowledge to execute its projects well and replenish its landbank in a disciplined manner. It currently has a pipeline of around 1,820 units from three GLS sites acquired in 2025 and another prime GLS site at Tanjong Rhu Road acquired in February 2026 with its JV partner. The outlook for Singapore’s office rental market remains positive, supported by limited Grade A supply. The potential for AEIs and the redevelopment of ageing properties will further constrain supply and support rental growth. M Social Hotel New York Downtown I US 88 | CITY DEVELOPMENTS LIMITED
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