37 Annual Report 2025 Looking ahead to 2026, inbound visits to UK are projected to reach 45.5 million, with visitor spending expected to increase to approximately GBP35.7 billion, representing growth of 4% in visits and 7% in spending compared to 20251. The UK hotel sector is expected to remain resilient, supported by steady international travel demand and major events. In London, the industry RevPAR is forecast to grow by approximately 1.8%, driven mainly by higher occupancy, while ADR growth is expected to be moderated by new supply4. In 2026 and 2027, The Cavendish London will be undergoing an AEI and will be rebranded under The Crest Collection, a luxury brand managed by The Ascott Limited. The capital expenditure for the AEI will be co-shared with the operator. The property closed for renovations in January 2026, and CLAS has committed to distributing past divestment gains to mitigate the impact of the AEI. Demand at CLAS’ remaining four UK properties is expected to be led by the corporate and transient segments. As these properties operate under MCMGI, they are well positioned to capture upside from any increase in lodging demand, while the minimum guaranteed income provides protection against downside risks. Gross Rental Income (GBP’000) Revenue Per Available Unit (GBP) FY 2025 FY 2024 FY 2025 FY 2024 Properties under MCMGI Citadines Barbican London 6,183 6,242 128 129 Citadines Holborn-Covent Garden London 12,505 7,833 175 107 Citadines South Kensington London 5,437 5,672 156 160 Citadines Trafalgar Square London 13,788 14,130 195 200 The Cavendish London 18,487 19,409 186 204 4 Source: PwC (2025).
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