Shangri-La Asia Limited has exercised its contractual option to extend the land lease for EDSA Shangri-La, Manila by an additional three years, moving the expiry date from 27 August 2026 to 27 August 2029. All commercial terms, including the rent-calculation mechanism based on fixed percentages of revenue from hotel rooms, retail, restaurant and sub-leasing operations, remain unchanged.

The lessor, Shang Properties, Inc., is an associate of Kerry Properties Limited, itself a subsidiary of substantial shareholder Kerry Holdings Limited. Consequently, the lease renewal is classified as a continuing connected transaction under Hong Kong Listing Rules. Because the relevant percentage ratios exceed 0.1 % but remain below 5 %, the arrangement requires public disclosure and annual reporting but does not need independent shareholders’ approval.

Management has set the following maximum aggregate annual rent caps: • FY 2026: US$2.70 million • FY 2027: US$2.75 million • FY 2028: US$2.85 million • FY 2029 (assuming further renewal): US$2.90 million

The board states that rent levels are comparable to, or more favourable than, those paid for a similar third-party Manila hotel site and confirm the lease remains on normal commercial terms. Internal monitoring will continue through periodic reviews by the finance department, annual assessments by independent non-executive directors and the external auditor, in line with Listing Rule 14A requirements.

The renewal secures uninterrupted operation of the 25,000-square-metre EDSA Shangri-La property, wholly owned and operated by group subsidiary Edsa Shangri-La Hotel & Resort, Inc., through at least August 2029. Details of actual rent paid will be disclosed in future annual reports.