Shangri-La Asia Limited (00069) announced the entering into of new hotel services agreements on 26 February 2026 for Shangri-La The Fort, Manila, renewing and consolidating the original arrangements that expire on 28 February 2026. Under these new agreements, SLIM-SG will assume hotel management duties, while SLIM-HK will provide proprietary technology services. The agreements commence from 1 March 2026 with an initial operating term through 31 December 2028, subject to renewal options within a maximum aggregate of 10 years.

The transactions are deemed continuing connected transactions as the property is majority-owned by an associate of a substantial shareholder of Shangri-La Asia Limited. The fees payable include incentive management fees, sales and marketing fees, a royalty fee, branding and training funds, and other related charges. Annual fee caps are set at US$12.00 million for the financial year ending 31 December 2026, increasing to US$12.60 million for 2027 and to US$13.50 million for 2028. Since these annual caps exceed 0.1% but are below 5% of applicable ratio thresholds, announcements and reporting are required under Hong Kong’s Listing Rules, but independent shareholders’ approval is not.

According to the announcement, Shangri-La Asia Limited considers the agreements to be on normal commercial terms, aligning with comparable fees of other hotels in the jurisdiction. The company’s Board indicates that none of the directors have material interests in the transaction, and that internal control safeguards will monitor transaction amounts against the annual caps. Further details of the fees and terms will be disclosed in subsequent annual reports in accordance with listing requirements.