Far East, Rendezvous team up for Asian expansion
Singapore-based Far East Orchard (FEOrchard) has formed a new joint venture with the Straits Trading Company (STC) that will see the two companies expand their hotel operations across the Asia Pacific region.
Following a Memorandum of Understanding (MOU) signed last year, FEOrchard and STC have agreed to a 70-30 joint venture, which will be involved in the fields of hospitality management and hospitality-related real estate investment. STC will contribute its three Australian hotel properties to the joint venture – Rendezvous Grand Hotel Melbourne, Rendezvous Hotel Perth and Rendezvous Studio Hotel Perth Central – along with 13 Rendezvous hotels operated under management contracts. The joint venture will pay STC SG$56.2 million (US$45.4m) for these properties.
FEOrchard meanwhile, will contribute its portfolio of 25 hotel and service residence management agreements, along with a cash contribution of S$97m.
Following the merging of the Far East and STC portfolios, the new joint venture company will initially manage more than 6,000 rooms. But the company said its goal was to become “one of the largest hotel operations in Asia Pacific”.
“This new joint venture combines the strengths of two leading hospitality operators,” said STC’s Chairman, Chew Gek Khim. “The combination of FEOrchard’s operational expertise and STC’s 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.”
STC recently undertook a major renovation and rebranding programme for its 13 Rendezvous properties, and now operates hotels under three brands – Rendezvous Grand Hotels, Rendezvous Hotels and Rendezvous Studio Hotels – in Singapore, China, Australia and New Zealand. Far East meanwhile operates solely in Singapore.