CapitaLand Ascott Trust said on Dec, 31 2025 that it has signed a supplemental agreement with Ascott Hospitality Management (UK) to extend the initial term of the hotel management agreement for The Cavendish London by five years, bringing the total initial term to 35 years while all other commercial terms remain unchanged.

The Cavendish Operator will continue to fund 50% of the hotel’s renovation and re-branding costs and, due to higher projected expenditure, will contribute an additional GBP11.1 million in Key Money. Estimated renovation costs have risen to GBP77.3 million from GBP55.0 million, driven by updates to UK building codes, remediation of latent site conditions and elevated construction inflation.

Post-renovation, the property’s stabilised EBITDA yield is projected at 6.1%, with its valuation on a stabilised basis maintained at GBP316.0 million.

The extension constitutes an interested person transaction under SGX rules, as the Cavendish Operator is an indirect wholly owned subsidiary of CapitaLand Investment Limited. Aggregate interested person transactions with the CapitaLand Investment group for the current financial year total approximately 340.4 million Singapore dollars.

CapitaLand Ascott Trust will redeploy about 78.4 million Singapore dollars of proceeds from its 2023 equity fund raising—originally earmarked for a Sydney hotel project—to meet its share of the Cavendish London renovation costs.