YEAR IN REVIEW
Hospitality
Far East Hospitality Holdings Pte. Ltd. (“Far East Hospitality”),
Straits Trading’s 30% owned joint venture with Far
East Orchard Limited (a listed company under Far East
Organization) became fully operational in November 2013.
In the same year, Far East Hospitality completed a 50-50
joint venture with Australia’s Toga Group, one of the leading
accommodation providers in Australia. Far East Hospitality
now owns and operates a combined portfolio of more than
13,000 rooms under its management across 80 hotels and
serviced residences in eight countries – Australia, China,
Denmark, Germany, Hungary, Malaysia, New Zealand and
Singapore, with more in its development pipeline.
As a 30% associate of Straits Trading, Far East Hospitality’s
results are recorded in Straits Trading using the equity
method. For FY2014, Straits Trading’s share of Far East
Hospitality’s results amounted to a marginal loss of S$0.3
million. This represents a marked improvement compared
to an operating loss of S$7.8 million in 2013 which included
one-off acquisition-related costs for the formation of Far
East Hospitality as well as the joint venture with Toga Group.
With a strong foundation laid after the integration and
streamlining of operating systems across hotel platforms
during the year, Far East Hospitality is well-positioned to
capitalise on growth opportunities in the regional markets.
In 2014, Far East Hospitality continued to build its regional
hotel portfolio via acquisitions in Australia and Europe,
together with its joint venture partner Toga Group. In June
and July 2014, Far East Hospitality acquired two office
buildings in Sydney and Brisbane for hotel conversion.
Far East Hospitality also made its first hotel acquisition
in Europe, through acquiring a 50% interest in four hotel
properties in Germany and Denmark – a move to strengthen
Far East Hospitality’s foothold in the hospitality business in
the European market.
Far East Hospitality will continue to selectively expand its
hospitality businesses by acquiring strategic assets and
increasing management contracts. At the same time,
Far East Hospitality will also consider the divestment of
properties to recycle capital for re-deployment towards
higher yielding growth opportunities as and when
appropriate.
Going forward, Straits Trading will continue to support
Far East Hospitality, leveraging on the synergies offered
by its larger hospitality platform, to actively pursue
growth opportunities for the hospitality management and
ownership businesses.
For more information on Far East Hospitality Holdings
Pte. Ltd., please visit
Adina Copenhagen Apartment Hotel, which Far East Hospitality acquired a
50% interest
Rendezvous Hotel Singapore, managed by Far East Hospitality
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THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
