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Straits Trading and Far East Create One of Largest Hotel Groups in AP

Travel News Asia Latest Travel News Podcasts Videos Wednesday, 17 April 2013
 

The Straits Trading Company Limited and Far East Orchard Limited (FEOrchard), two of Singapores leading hospitality operators have signed a Joint Venture Implementation Agreement (JVIA) to establish a 30/70 joint venture (JVCo) to pursue and conduct hospitality management and hospitality related businesses and investments in real estate used primarily for hospitality purposes.

Under the terms of the JVIA, STC - holding a 30% stake - will contribute its three hotel properties namely Rendezvous Grand Hotel Melbourne, Rendezvous Hotel Perth and Rendezvous Studio Hotel Perth Central, and 13 hotel management contracts under RHI and leases to the JVCo and receive net cash of Sin$56.2 million.

FEOrchard will contribute 25 hotel and service residence management agreements and contribute cash of S$97 million to the JVCo.

The joint venture will enable STC and FEOrchard to transform their existing hospitality businesses into one of the largest hotel operations in Asia Pacific with a scalable and sustainable platform for future growth and expansion. The joint venture will initially manage more than 6,000 rooms.

STC Chairman, Chew Gek Khim, said, This new joint venture combines the strengths of two leading hospitality operators. It also enables Straits Trading to continue its strategy of transforming its portfolio of businesses into more effective growth engines, each a leading player with economies of scale. The combination of FEOrchards operational expertise and STCs strong hotel presence in Australia and New Zealand through its Rendezvous hotels will create a formidable hospitality joint venture which we plan to expand in their respective and new markets.

Far East, Rendezvous, Singapore

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