Singapore-based real estate investment firm City Developments Limited has halted trading in its shares on the Singapore Exchange as an argument between board members intensifies.
The announcement came on the same date, Feb. 26, as it announced its full-year 2024 earnings results.
One of CDL’s subsidiary businesses is the wholly owned Millennium & Copthorne Hotels, a global hotel management and real estate group.
A statement from CDL announced the firm “has taken the decision to temporarily suspend trading in our shares today, in view of the disagreement within the board in relation to the composition and constitution of the board and the board committees. Despite this temporary suspension, our business operations remain fully functional and unaffected.”
CDL added Group CEO Sherman Kwek remains in place “until such time as there is a board resolution to change company leadership.”
According to Singapore newspaper The Straits Times, CDL also canceled its scheduled briefing for its 2024 results "pending the release of further announcements.”
An accompanying article by the Straits Times reports on a dispute between Executive Chairman Kwek Leng Beng and Sherman Kwek, his son, over what Kwek Leng Beng called an “attempted coup” to control the board.
Kwek Leng Beng has filed court papers over the issue, the newspaper reported, adding that Kwek Leng Beng told it that his intention is to “change the CEO at the appropriate time. We will continue to explore all legal options available to us to vigorously defend and protect the interests of CDL and its shareholders.”
In his own statement, Sherman Kwek said, "It is incredibly disappointing that our chairman and a minority of the CDL board have decided to take these extreme actions regarding this disagreement around the size and make-up of the CDL board.”
Millennium & Copthorne Hotels has a portfolio of 137 hotels in 22 countries, including 22 properties in Dubai and 18 in New Zealand, across four continents.
Notable hotels include the 573-room Grand Copthorne Waterfront Hotel Singapore, 468-room Grand Millennium Kuala Lumpur, 451-room Biltmore Los Angeles and 158-room Chelsea Harbour Hotel London.
The firm’s latest earnings results posted full-year 2024 revenue of 3.27 billion Singapore dollars ($2.4 billion), a 33.8% drop from full-year 2023 revenue. Its hotel division saw an increase in revenue
“The hotel operations segment posted an 8.2% increase in revenue … mainly bolstered by the acquisition of the Sofitel Brisbane Central and the Hilton Paris Opéra hotels in December 2023 and May 2024, respectively, and the official opening of M Social Phuket in June 2024 following refurbishment,” the results said.
Copthorne Hotel Holdings, another CDL division, acquired the Hilton Paris Opéra for €240 million ($251.6 million), or €895,522 per key from funds managed by U.S. private-equity firm Blackstone.
CDL added that across full-year 2024, its global hotel revenue per available room increased 2.6% to 172.50 Singapore dollars.