SINGAPORE – Tuan Sing has terminated management contracts for its Hyatt Regency Hotel asset in Perth, Australia, ahead of the property’s planned repositioning and branding.
Its indirect wholly owned subsidiary, HR Operations, inked a deed of termination and release with Hyatt’s subsidiaries to end the property’s existing management agreements.
Hyatt Regency Perth will cease to be a Hyatt-managed hotel on Aug 31, after which it will be repositioned and rebranded to commence business.
Tuan Sing said on July 1 that it expects to incur $2 million in costs and expenses from the termination of Hyatt Regency Perth’s management.
While this is not expected to have a material impact on the pro-forma group’s net tangible assets for financial year 2023, earnings per share for the year will be reduced to 0.23 cent from 0.39 cent.
Tuan Sing said the move is in line with its long-term strategy to expand its hospitality business, which currently includes Grand Hyatt Melbourne and its recently announced acquisition of Fraser Residence River Promenade in Singapore. The latter property is a four-storey serviced apartment development with 72 units, three conservation warehouses and 47 carpark spaces, at 5 Jiak Kim Street.
In May 2024, Tuan Sing confirmed an earlier report by The Business Times that it had acquired the newly completed mixed-used property at Robertson Quay for $140.9 million.
The group added in its latest announcement that its hospitality portfolio will be further expanded upon completion of its Opus Bay project in Batam, Indonesia, an integrated township currently under development that includes hospitality components.
Shares of Tuan Sing dropped one cent, or 4.35 per cent, to close at 22 cents on July 1. THE BUSINESS TIMES
Leave a comment