The responsibilities of landlords in relation to defective cladding

In Essendi UK Hotels 2 Ltd (formerly known as Accor UK Economy Hotels Ltd) v London Property Co Ltd [2026] EWHC 1354 (TCC) His Honour Judge Stephen Davies, sitting as a Judge of the High Court, held that the defendant landlord was in breach of its covenant to keep the retained parts of a hotel in good condition, and its covenant to comply with legal obligations under the Regulatory Reform (Fire Safety) Order 2005, as a result of its responsibility for external cladding which was found to present an "intolerable" risk to the safety of anyone staying in the hotel. The claimant tenant was held to be entitled to sue for damages following its decision to close the hotel (which decision was found to have been a reasonable one to take on the facts) and to a specific performance order requiring the landlord to remove and replace the cladding within an 18-month period. The significance of the case lies principally in its expansive interpretation of the landlord's good condition covenant and the willingness to make use of a specific performance order to ensure that defective cladding is removed and replaced in a case that does not fall within the scope of the Building Safety Act 2022 (in this case because the Act does not include hotels within its scope).