CDL Secures Prime London Freehold With Holiday Inn Acquisition—Over £280M Deal in Central London

2025-12-26 05:32:55

Abstract generation in progress

City Developments (CDL) has completed a landmark acquisition of the Holiday Inn London property on Kensington High Street, snapping up the 706-room hospitality asset for £280 million (approximately S$480.2 million). The transaction, executed through subsidiary Copthorne Hotel Holdings Limited, translates to around S$680,200 per room for the premium 6,356 sqm freehold positioned in London’s coveted Royal Borough of Kensington and Chelsea.

Strong Operational Performance Drives Valuation

The acquired property demonstrates robust trading metrics. Over the nine-month period ending September 2025, the hotel maintained occupancy rates surpassing 97%, while the preceding 12 months generated revenue exceeding £39 million (approximately S$66.9 million). These figures support the projected 6% running yield, positioning the asset as a stable income generator for the Singapore-listed developer.

Expansion Strategy in Premium London Market

With this acquisition, CDL’s Central London portfolio now encompasses over 3,000 hotel rooms, reinforcing its foothold in one of the world’s most sought-after hospitality markets. Chairman Kwek Leng Beng highlighted the strategic significance: “This represents a rare freehold opportunity in Central London. The Group now controls two of the largest freehold sites within Kensington and Chelsea’s luxury district.”

Broader Investment Momentum

The Holiday Inn purchase reflects CDL’s aggressive capital deployment strategy throughout 2025. Year-to-date commitments have reached approximately S$1.7 billion across four distinct investments, with S$1.2 billion earmarked for three Government Land Sales parcels aimed at replenishing the group’s Singapore residential development pipeline.

Market Reception

CDL shares responded positively to the announcement, trading 0.97% higher at S$7.27 on the Singapore Stock Exchange, reflecting investor confidence in the group’s selective real estate strategy and focus on premium, cash-generative assets.

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