FAR EAST HOSPITALITY HOLDINGS PTE. LTD
Far East Hospitality Holdings Pte. Ltd. (“Far East Hospitality”),
Straits Trading’s 30%-owned joint venture with Far East
Orchard Limited, is a scalable platform that enables Straits
Trading to tap into growth in the hospitality industry. Today,
Far East Hospitality owns and operates a combined portfolio
of around 90 hotels and serviced residences with over 13,000
rooms in seven countries – Australia, New Zealand, Denmark,
Germany, Hungary, Malaysia and Singapore. In Singapore, it
operates one of the city-state’s largest hospitality portfolios
comprising 18 hotels and serviced residences. Outside of
Singapore and Malaysia, Toga Far East Hotels (“TFE Hotels”), the
50-50 joint venture between Far East Hospitality and Australia’s
Toga Group, owns and operates hotels and serviced residences.
Far East Hospitality operates a stable of nine unique and
complementary brands, including Rendezvous Hotels, Oasia
Hotels, Adina Apartment Hotels, Medina Serviced Apartments,
The Marque Hotels, The Quincy Hotel, Travelodge Hotels,
Vibe Hotels and Village Hotels & Residences.
KEY DEVELOPMENTS
During the course of 2015, Far East Hospitality focused on
integrating and streamlining operations across its various
platforms. Pipeline projects scheduled to open in 2016 include
Oasia Suites Kuala Lumpur in Malaysia, Oasia Hotel Downtown
and Oasia Residence in Singapore. Over in Australia and New
Zealand, significant developments include the proposed
conversion of two properties at 280 George Street, Sydney,
and at 171 George Street, Brisbane, into apartment hotels.
FINANCIAL PERFORMANCE
Being a 30%-owned associate of Straits Trading, Far East
Hospitality’s results are recorded on Straits Trading’s books
using the equity accounting method. The results from Straits
Trading’s hospitality segment improved from a loss in FY2014
to a profit after tax of S$2.0 million in FY2015.
OUTLOOK
The hospitality industry in Singapore is facing headwinds
from lower than forecast visitor arrivals, high supply of new
rooms coming into the market and a weak global economic
environment. In Australia and New Zealand, the tourism sector
is buoyant, but performance is affected by the weaker
Australian and New Zealand currencies.
However, Far East Hospitality has been repositioning its asset
base through refurbishments and other enhancements, and will
continue to grow its business by securing new management
contracts and investing selectively in accretive assets.
Vibe Hotel, Melbourne, Australia
Oasia Hotel, Singapore
YEAR IN REVIEW
HOSPITALITY
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THE STRAITS TRADING COMPANY LIMITED
