New World Development Company Limited (NWD) announced two new framework deals with substantial shareholder Chow Tai Fook Enterprises Limited (CTFE): the 2026 Master Hotel Leasing Agreement (HL Agreement) and the 2026 Master Hotel Management Services Agreement (MS Agreement). Both accords replace the 2017 versions and will take effect on 1 July 2026, running an initial 15-year term to 30 June 2041 with automatic 15-year renewals, subject to Listing Rules compliance.

Under the HL Agreement, CTFE-affiliated entities will lease or license hotels from NWD group companies. Aggregate annual caps are set at HK$334.20 million, HK$342.70 million and HK$350.80 million for the financial years ending 30 June 2027–2029, respectively. These limits were determined with reference to historical receipts (HK$281.00 million in FY24, HK$272.10 million in FY25 and HK$146.10 million in 1H FY26), projected new leasing transactions, market room rates, hotel revenue forecasts, an independent valuation and expected inflation.

The MS Agreement allows CTFE to continue providing hotel management and pre-opening consultancy services to NWD hotels. Payment caps are HK$328.30 million, HK$338.60 million and HK$347.80 million for FY27–FY29. Historical payments by NWD to CTFE were HK$220.60 million in FY24, HK$227.40 million in FY25 and HK$118.90 million in 1H FY26. Cap calculations took into account existing fee structures, anticipated new management contracts and expected hotel performance over the next three years.

Ballas Capital, engaged as independent financial adviser, confirmed that 15-year terms are customary in the hotel sector, citing comparable Hong Kong-listed transactions spanning 10–30 years.

Given applicable percentage ratios below 5%, both sets of annual caps require disclosure but are exempt from independent shareholders’ approval under Chapter 14A of the Listing Rules. Directors with interests in CTFE abstained from voting on the resolutions.

NWD has established internal controls—including pre-signing reviews, bi-annual utilisation monitoring, internal audit checks and external auditor oversight—to ensure transactions remain on normal commercial terms and within the approved caps.