UNITED KINGDOM 5 PROPERTIES S$27.2 million TOTAL GROSS PROFIT (FY 2023) S$890.5 million VALUATION (as at 31 December 2023) S$62.4 million TOTAL REVENUE (FY 2023) 830 UNITS The Cavendish London KEY MARKET United Kingdom (UK) is one of CLAS’ key markets, contributing 8% of the total gross profit for FY 2023. Following the acquisition of The Cavendish London in November 2023, CLAS now owns five properties in the UK, all of which are under MCMGI. The Cavendish London is a 230-unit leasehold hotel in the exclusive Mayfair high-end shopping district of central London. The property is a five- to 10-minute drive from iconic attractions including Buckingham Palace, Big Ben, West End theatre, Piccadilly Circus and Hyde Park. The other four properties are freehold serviced residences located in London. Citadines South Kensington London is a 92-unit property situated close to embassies and the renowned shopping and dining districts of Chelsea and Knightsbridge. Citadines Barbican London is a 129-unit property situated close to the Barbican Arts Centre and Museum of London. Citadines Holborn-Covent Garden London comprises 192 units and is centrally located, close to the financial district of London. Citadines Trafalgar Square London is a 187-unit serviced residence located near key tourist attractions including Trafalgar Square, the National Gallery and River Thames. CLAS’ five UK properties have an average length of stay of less than a month. 2023 REVIEW UK's GDP is estimated to have increased by 0.1% in 2023, the weakest annual change in real GDP since the financial crisis in 2009, excluding the year 20201. The slow growth can be attributed to the country’s high interest rates to tackle inflation. While the UK is said to have slipped into technical recession in the second half of 2023, employment has continued to rise, real wages have rebounded, and measures of business and consumer confidence recovered by the end of 20232. Despite the softer economic conditions in 2023, the UK hospitality sector continued to register growth on the back of higher demand since the reopening of its borders. Inbound visits to the UK increased 31% YoY in the first nine months of 20233. Demand from international leisure travellers, especially during the summer holiday season, corporate travellers and cultural groups drove the higher ADR and RevPAU at CLAS’ UK properties. City-wide events in London provided further boost to the properties’ performance. For instance, the King’s Coronation in May 2023 saw bookings of UK-bound flights for the weekend jump by 149% within a day of the date being announced4, 1 Source: Office for National Statistics (2023) 2 Source: CNN Business (2024) 3 Source: VisitBritain (2023) ANNUAL REPORT 2023 53 Overview Leadership Portfolio & Performance Sustainability & Governance Financial Statements and Other Information
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