City Developments Limited (SGX:C09) (CDL) announced on Monday afternoon that its wholly-owned hotel subsidiary, Millennium & Copthorne Hotels Limited (M&C) will be divesting the Copthorne Orchid Hotel & Resort Penang in Malaysia for RM 75 million (approximately S$25 million). The divestment is in line with the Group’s strategy to extract value from its non-core hotel assets, streamline its portfolio and recycle capital following the onset of the COVID-19 pandemic. This will be the third non-core hotel asset disposals since the start of 2020, with a combined sales value of S$104.8 million and pre-tax divestment gains of S$50.3 million, of which S$23.9 million will be recognised in 2021. M&C has entered into a Sale and Purchase Agreement with Bursa Malaysia-listed Ivory Properties Group Berhad for the 318-room Penang hotel, which will include the freehold land that the hotel resides on, the hotel, and all fixtures, fittings, equipment and tangible personal property, in respect of the hotel.