CDL Completes Major London Hotel Acquisition at 280 Million Pounds Valuation

2025-12-26 05:55:41

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City Developments Limited has successfully completed a strategic real estate investment in London’s premium market, securing the Holiday Inn property situated on Kensington High Street through its subsidiary Copthorne Hotel Holdings Limited. The transaction, valued at 280 million pounds (approximately S$480.2 million), represents the acquisition of a 706-room luxury hotel asset positioned in one of London’s most coveted locations.

Financial Details and Operational Performance

The deal translates to approximately S$680,200 per room, reflecting the premium positioning of the property in Central London’s affluent Royal Borough of Kensington and Chelsea. The 6,356 square meter freehold site demonstrates robust operational metrics, with occupancy rates exceeding 97% over the nine-month period through September 2025. Revenue performance for the preceding twelve months surpassed 39 million pounds (around S$66.9 million), underscoring the asset’s strong income-generation capability. The acquisition is projected to yield over 6% in running returns, contributing meaningfully to the portfolio’s overall performance.

Strategic Significance and Expansion Goals

This investment strengthens CDL’s foothold in Central London, bringing the group’s total hotel room inventory in the region to over 3,000 units. The purchase aligns with the company’s broader strategy of capitalizing on exceptional opportunities that enhance portfolio quality while benefiting from the current interest rate environment in the United Kingdom.

Executive Chairman Kwek Leng Beng highlighted the rare nature of such opportunities, noting that CDL now controls two of London’s most prominent freehold properties in the Kensington and Chelsea borough. The acquisition reflects the group’s commitment to acquiring prime assets in sought-after markets.

2025 Investment Activity and Market Position

CDL’s investment activities in 2025 have been substantial, with total commitments reaching approximately S$1.7 billion across four transactions. Notably, S$1.2 billion of this allocation was directed toward acquiring three Government Land Sales sites in Singapore to strengthen the residential development pipeline.

Currently, CDL shares are trading at S$7.27 on the Singapore Stock Exchange, reflecting a 0.97% gain from previous trading levels.

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