3 UN Tourism, “International tourism up 5% in first half of 2025 despite global challenges”. 4 Maldives Ministry of Tourism & Environment, “Tourism Statistics Monthly Report, December 2025”. government, robust economy, growing population and influx of high-net-worth residents. We will continue to be open to development opportunities even though there are no immediate plans for land acquisition. HOTEL DEVELOPMENT AND INVESTMENTS The tourism sector continued to perform strongly. International tourism increased by 5% in the first six months of 2025 despite global challenges. Most destinations in the world experienced increase numbers of visitor arrival3. The Maldives’ tourism sector, in line with global trends, continued to perform strongly. The country received 2.2 million visitors for 2025 as compared with 2.0 million tourists in the previous year (a 9.8% increase)4. The combined average occupancy of Mercure Maldives Kooddoo Hotel and Pullman Maldives Maamutaa Resort for 2025 was 49.6%, lower than the industry average of 58.3%. We continue to monitor the performance of these two properties and are taking other operational and cost management measures to enhance efficiency and cost effectiveness. In tandem with the recovery and growing tourism flows to the Maldives, we are intensifying efforts to capture demand from key source markets, including the expanding China outbound travel segment, through strengthened trade partnerships and focused marketing initiatives to drive occupancy and improve revenue performance in the coming periods. SUSTAINING COMPETITIVENESS THROUGH INNOVATION, DIGITALISATION AND PRODUCTIVITY We continue to strengthen our competitiveness through the systematic adoption of innovative construction methods, digital technologies and productivity-driven solutions across our projects. Design for Manufacturing and Assembly (DfMA) technologies are now fully embedded in our project delivery approach. The use of Prefabricated Bathroom Units (PBU), and Mechanical, Electrical and Plumbing (MEP) modules enables a greater proportion of works to be completed off-site in controlled manufacturing environments. This enhances quality consistency, improves site safety, shortens construction timelines and reduces manpower reliance, thereby driving overall productivity gains. During the year, we further advanced our digitalisation journey by strengthening our Building Information Modelling (BIM) and Virtual Design and Construction (VDC) capabilities, including deeper integration across design coordination, construction sequencing and cost management workflows. Our project teams have also actively progressed in adapting to the new CORENET X digital submission framework, enhancing model-based collaboration and regulatory coordination in line with Singapore’s digital building approval transformation. This positions the Group to respond effectively to evolving industry requirements and reinforces our readiness for future regulatory digital mandates. ANNUAL REPORT 2025 KEONG HONG HOLDINGS LIMITED 13 FINANCIAL AND OPERATIONS REVIEW
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