City Developments Limited (SGX:C09) Stock: London Hotel Deal, $1.9 Billion Asset Sales and 2026 Price Target Outlook

As at the morning of 5 December 2025, City Developments Limited (CDL, SGX:C09) is trading around S$7.30 per share, close to its 52‑week high of S$7.54 and more than 40% higher than a year ago. ^[1]

The share price rally has been driven by a combination of aggressive asset monetisation, a headline London hotel acquisition, resilient Singapore residential sales and a noticeable shift in analyst sentiment from caution to broadly positive.

Share price snapshot: strong 12‑month run, still at a discount to assets

Last traded price (5 Dec 2025, a.m.): about S$7.30. ^[2]
52‑week range: S$4.32–S$7.54. ^[3]
One‑year total return: roughly 40–45%, outpacing the Straits Times Index. TS2 Tech+2Moomoo+2

Despite this, CDL’s share price still trades below its reported asset values. The Edge Singapore recently highlighted that even after the rally, the counter is priced at a discount to book NAV of about S$10.10 and a revalued NAV of about S$17.48 per share. ^[4]

On valuation metrics, Yahoo Finance puts CDL on a trailing P/E of roughly 34x and a forward P/E around 24x as of 4 December 2025, reflecting expectations of earnings recovery after a period of FX and hotel‑segment headwinds. ^[5]

Q3 2025: Softer quarter, stronger nine‑month story

CDL’s Q3 2025 operational update was initially read as soft on the headline numbers:

Singapore property sales (Q3 2025):
- 88 units, S$313.2 million in value
- Down from 321 units and S$611.1 million in Q3 2024 – a 48.7% decline in sales value. ^[6]

The drag was largely due to no new project launches in the quarter; last year’s Q3 sales were boosted by the launch of Kassia, which sold 144 units on its opening weekend. ^[7]

However, the year‑to‑date picture is considerably stronger:

For the first nine months of 2025, CDL and its JV partners sold 990 units in Singapore with total sales value of approximately S$2.5 billion, up from 905 units and S$1.8 billion a year earlier. ^[8]
Key contributors include mass‑market and city‑fringe projects such as The Orie, launched in January and now about 94% sold. ^[9]

On the hotel operations side, CDL reported a slight 0.3% fall in global RevPAR to S$165.80 for the first nine months of 2025, weighed down by weaker Asia performance – particularly Singapore, Beijing and Kuala Lumpur – and the ramp‑up of new properties. ^[10]

Nonetheless, the company noted that its core operations remain resilient and that it has built a strong pipeline of well‑located projects in Singapore and China through land replenishment, positioning it for future launches. ^[11]

1H 2025 results: revenue growth, FX drag and a special dividend

CDL’s latest full set of results covers the half‑year to 30 June 2025:

Revenue: S$1.69–1.70 billion, up about 8% year‑on‑year. ^[12]
PATMI (net profit): S$91.2 million, up 3.9% from S$87.8 million in 1H 2024. ^[13]
Property development remained the largest contributor, with 24.3% revenue growth driven by strong Singapore residential projects and selected overseas disposals. ^[14]

The headline profit was held back by S$63.1 million of unrealised FX losses, mainly on US‑dollar intercompany loans used to fund earlier US hotel acquisitions. CDL stated that excluding FX effects, PATMI would have exceeded S$150 million, more than triple the comparable figure. ^[15]

To sweeten returns, the board declared a special interim dividend of S$0.03 per share for 1H 2025, on top of the ordinary dividend. ^[16]

The group’s capital position remains robust, with S$1.8 billion in cash and around S$3.5 billion including undrawn committed facilities as at 30 June 2025. ^[17]

Capital recycling: South Beach, Osaka, Sunnyvale and more

A key theme for CDL in 2025 has been aggressive monetisation of non‑core assets.

Recent deals include:

Bespoke Hotel Osaka Shinsaibashi (Japan) – CDL agreed to divest the 256‑room lifestyle hotel to Blackstone funds for JPY 14 billion (about S$117 million), after buying it for JPY 8.5 billion in 2023. The sale, due to complete in December 2025, crystallises a sizeable gain and reflects strong hospitality demand in Osaka. ^[18]
1250 Lakeside, Sunnyvale (US) – through Millennium & Copthorne Hotels, CDL sold its 250‑unit multifamily asset in Silicon Valley for US$143.5 million (about S$187 million) to a US institutional investor, following a competitive sale process. ^[19]
Piccadilly Galleria (Singapore) – the ground‑floor retail podium in Farrer Park was divested for S$65.46 million in November. ^[20]
Quayside Isle @ Sentosa Cove – the group is in advanced negotiations to sell this waterfront retail asset, which was marketed at S$111 million. ^[21]
South Beach integrated development (Singapore) – earlier in 2025 CDL completed the sale of a 50.1% stake for about S$834 million, realising a disposal gain of roughly S$465 million. ^[22]

Taken together, CDL and analysts estimate that the group has secured around S$1.8–1.9 billion of contracted divestments year‑to‑date, with further potential from assets such as the former Stag Brewery site in London and Shoreditch House. ^[23]

This monetisation strategy has improved net gearing (around 69–70% including fair value on investment properties) and provided cash that can be recycled into new projects or used for debt reduction. ^[24]

New London Holiday Inn deal: yield plus redevelopment optionality

On 2 December 2025, CDL announced it had completed the acquisition of the 706‑room Holiday Inn London – Kensington High Street for £280 million (about S$480 million) via wholly owned subsidiary Copthorne Hotel Holdings. ^[25]

Key details from the company:

Freehold 6,356 sqm site in the Royal Borough of Kensington and Chelsea, a particularly land‑scarce area.
The hotel achieved occupancy above 97% in the nine months to September 2025 and generated over £39 million of revenue in the preceding 12 months. ^[26]
CDL expects a running yield above 6% on the acquisition price. ^[27]
The site sits adjacent to CDL’s Copthorne Tara Hotel, giving the group control over two of the largest freehold hotel sites in the borough and creating long‑term redevelopment potential. ^[28]

CDL notes that across four major investments totalling about S$1.7 billion in 2025, S$1.2 billion went into three Singapore Government Land Sales (GLS) sites, with the London Holiday Inn representing the fourth acquisition. ^[29]

The transaction deepens CDL’s presence in Central London, bringing its portfolio there to over 3,000 rooms and complementing existing assets such as The Biltmore Mayfair and Millennium Gloucester Hotel. ^[30]

Residential pipeline: Zyon Grand, EC sites and Lakeside Drive

On the development front, CDL continues to lean heavily on the Singapore residential market, which remains the group’s core earnings engine.

From the Q3 2025 update and subsequent broker reports: ^[31]

The Zyon Grand JV project (706 units) on Zion Road launched in October and sold 590 units (84%) on its opening weekend at an average S$3,050 psf, a level RHB described as “well above expectations”. ^[32]
CDL has been active in land replenishment, winning three GLS sites in 2025:
- Lakeside Drive in Jurong
- Two executive condominium (EC) sites at Woodlands Drive 17 and Senja Close
  Together these add over 2,200 future units to the pipeline. ^[33]
Existing projects such as Norwood Grand, The Orie and Kassia continue to record high sell‑through rates, while previously launched EC projects are fully sold. ^[34]

Singapore’s macro backdrop is also supportive. Official data show Q3 2025 GDP growth of 4.2% year‑on‑year, prompting the government to upgrade its 2025 growth forecast to around 4%, which underpins medium‑term housing demand even as cooling measures restrain speculation. ^[35]

Analyst sentiment: from cautious to broadly bullish

Individual broker calls

Recent broker actions highlight a clear shift in tone:

RHB upgraded CDL from “Neutral” to “Buy” in November, raising its target price to S$8.50 from S$4.90. The broker cited:
- Strong momentum in Singapore residential sales
- Ongoing asset divestments
- Leverage to a falling interest‑rate environment
- A still‑large discount (about 50%) to revalued NAV despite the rally. ^[36]
RHB also noted that only around 43% of CDL’s debt is on fixed rates, and roughly 73% is due for refinancing by 2027, making the group a clear beneficiary if global rates continue to ease. ^[37]
OCBC Investment Research keeps CDL at “Hold” with a higher fair value of S$7.49, pointing to portfolio reconstitution but also flagging macro uncertainty and earlier policy tightening as potential dampeners. ^[38]
UOB Kay Hian and DBS are more bullish; UOB Kay Hian has a S$8.50 target while DBS has cited S$9.00 as fair value in its August note. TS2 Tech+1
JP Morgan sees CDL as a rerating story, with a December 2026 target of S$8.20, based on a 35% discount to revalued NAV (S$12.65) and continued asset sales as the main catalyst. ^[39]

Consensus across data providers

Across research aggregators, the 12‑month price target range clusters in the mid‑S$8s, implying mid‑teens upside:

Beansprout (SGX consensus): average target S$8.655, implying about 18.6% upside from S$7.30. ^[40]
MarketScreener: 13 analysts, mean target S$8.195, with a high of S$11.00 and low of S$5.30; overall rating “Outperform”. ^[41]
Investing.com (CTDM): average target around S$8.08, also with S$11 high / S$5.3 low, and an overall “Buy” consensus from 9 Buy, 3 Sell calls. ^[42]
TipRanks: 4 “Wall Street” analysts, average target S$8.58 (range S$8.22–S$9.03), implying around 17–19% upside and a “Strong Buy” consensus. ^[43]
Stockopedia: analyst consensus target S$8.06, around 11.5% above the last closing price cited. ^[44]

In short, while target prices differ, most sell‑side houses now sit in the “Buy / Accumulate” camp, with implied price upside generally in the low‑teens to low‑20s percent range.

Earnings and dividend forecasts

Forward‑looking models point to solid growth but modest yield:

Simply Wall St’s consensus‑based model projects earnings growth of about 25–26% per year and revenue growth near 15% per year, with forecast EPS growth around 27% annually and ROE near 5% in three years’ time. ^[45]
According to Beansprout, CDL’s dividend per share was S$0.12 in 2023 and S$0.10 in 2024, with 2025 consensus DPS at around S$0.08, implying some normalisation after special payouts. ^[46]
At the current share price, GuruFocus estimates a forward dividend yield of roughly 1–1.1%, underscoring that CDL is primarily a capital‑gains rather than income story at this point. ^[47]

Technical picture: strong trend, supportive signals

Short‑term technical analysis from StockInvest labels CDL a “Strong Buy candidate”:

Last close (4 Dec 2025): S$7.32, with the stock up on six of the past ten trading days and sitting in a weak but rising short‑term trend. ^[48]
The site forecasts an 8.4% potential rise over the next three months, with a 90% probability that the price will trade between S$7.80 and S$8.38 at the end of that period. ^[49]
Support is identified around S$7.27–S$7.31, with resistance zones near S$7.41–S$7.47 based on accumulated volume and Fibonacci levels. ^[50]
Volatility has been relatively low, with typical daily moves of around 1.4–1.5%, indicating a comparatively controlled trading range for a cyclical stock. ^[51]

These technical views complement the fundamental rerating story but, like all short‑term forecasts, are sensitive to market sentiment shifts.

Key drivers and risks into 2026

Drivers

Singapore residential cycle
- Continued execution on launches like Zyon Grand and future GLS/EC projects will be central to earnings. ^[52]
- A stronger macro backdrop – GDP growth upgraded to around 4% in 2025 – supports end‑user demand, even with cooling measures still in place. ^[53]
Interest‑rate trajectory
- With more than half of CDL’s debt on floating rates and most due for refinancing by 2027, rate cuts could directly lower interest expense and boost interest coverage, while also supporting property valuations. ^[54]
Capital recycling and NAV unlock
- Successful disposals of Quayside Isle, UK landbank assets and potentially other hotels could further narrow the discount to NAV and extend the rerating that began after the South Beach stake sale. ^[55]
Hospitality and “living” platform performance
- The Holiday Inn Kensington acquisition offers both near‑term yield and longer‑term redevelopment potential in an ultra‑prime location. ^[56]
- CDL’s broader hotels, private‑rented sector and student housing portfolio in the UK, Europe, Japan and Australia will also shape recurring income. ^[57]

Risks

Analysts and the company itself highlight several key risks: ^[58]

Property‑market risk: A sharp downturn in Singapore property prices or new cooling measures could hit both earnings and asset valuations.
Execution risk: Delays in project launches, construction or asset disposals would slow capital recycling and could push up leverage.
FX and overseas exposure: Large overseas portfolios and US‑dollar funding have already produced sizeable FX swings; further currency volatility could again distort earnings.
Interest‑rate and macro shocks: A renewed spike in global yields, or recessionary conditions in key markets like the UK, US or China, would pressure both financing costs and demand.
Governance perceptions: Some investors remain attentive to earlier corporate‑governance concerns; RHB, for example, still applies an ESG discount in its target price. ^[59]

What the market is watching next

Looking ahead, attention is likely to focus on:

FY 2025 results, expected in late February 2026, which will show the full impact of 2H divestments and the early contribution of new investments. ^[60]
Progress on Quayside Isle and potential disposals of UK landbank assets like the former Stag Brewery site and Shoreditch House. ^[61]
The ramp‑up of the London Holiday Inn, including how quickly CDL can capture the >6% running yield it has guided for. ^[62]
The launch cadence of new Singapore residential projects against the backdrop of upgraded national GDP forecasts and still‑tight housing supply. ^[63]

Bottom line

As of 5 December 2025, City Developments Limited is no longer the deeply discounted, sentiment‑overhung stock it appeared to be in early 2024. Asset monetisation, a stronger Singapore residential market, and a high‑profile London hotel acquisition have driven a substantial share price recovery and a wave of analyst upgrades.

At around S$7.30, the stock still trades at a meaningful discount to book and revalued NAV, while consensus 12‑month price targets in the mid‑S$8 range imply mid‑teens upside if execution continues and macro conditions remain supportive. ^[64]