Shangri-La Asia Limited announced that its wholly owned subsidiary Edsa Shangri-La Hotel & Resort, Inc. has exercised its option to extend the land lease for the Edsa Shangri-La, Manila by a further three-year term, pushing the expiry date to Aug, 27 2029. All existing terms and conditions remain unchanged.

The lease, held with landlord Shang Properties, Inc., covers the 25,000-square-metre site at the corner of Shaw Boulevard and St Francis Street in Mandaluyong City, Metro Manila. Rent will continue to be calculated as fixed percentages of revenues from hotel rooms, retail, restaurant, other hotel operations and subleasing activities.

Shangri-La Asia has set annual rent caps of about 3.6 million Singapore dollars for the year ending Dec, 31 2026, 3.7 million Singapore dollars for 2027, 3.8 million Singapore dollars for 2028 and 3.9 million Singapore dollars for 2029.

Because Shang Properties is an associate of Kerry Properties Limited, a subsidiary of substantial shareholder Kerry Holdings Limited, the arrangement is classified as a continuing connected transaction under Hong Kong listing rules. The transaction requires announcement and reporting but is exempt from independent shareholders’ approval.

The group said the renewal ensures uninterrupted operations of the 632-room Edsa Shangri-La, Manila, which it described as part of its ordinary course of business.