Monday, April 4, 2016

Royal Group eyes more hotel acquisitions in Asia, Europe: Report

Property firm Royal Group, which has an enterprise value of more than $3.5 billion, is looking to make hotel acquisitions in Kuala Lumpur, Sydney, London and continental European cities, among others, The Business Times reported on Monday.

The group's managing director Peter Wilding says other potential acquisition markets include Jakarta, Bangkok and Hong Kong.

"We see significant growth in the hospitality business; we generally remain bullish on tourism globally, which is being aided by cheaper airline travel. We focus on key locations in gateway cities - and our primary target market would be business travellers," he was quoted by BT as saying in an interview.

Wilding adds that the group is also eyeing opportunistic acquisitions catering to leisure travellers.

The group owns six hotel assets, four of which are in Singapore. These include Sofitel So along Robinson Road and Sofitel Singapore Sentosa Resort & Spa. There are also two boutique budget hotels in Chinatown. Overseas, the group's portfolio comprises DoubleTree by Hilton Kuala Lumpur and InterContinental Sydney Double Bay.

According to BT, most of the group's hospitality assets were bought in the past five years, driven  by strong rental income from investment properties, including a large but scattered portfolio of retail units.

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