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Chip Eng Seng acquires Adelaide hotel for A$43m
CONSTRUCTION and property group Chip Eng Seng is acquiring a hotel in the Australian state of Adelaide for A$43 million (S$43.8 million).
The Mercure & Ibis Styles Grosvenor Hotel, managed by AccorHotels, is centrally located in the central business district of Adelaide. The six-storey building has 245 guest rooms in total, and also has other facilities including a restaurant, bar, conference and function facilities, and a basement carpark.
The purchase will be financed by internal sources and external borrowings, said the group. The transaction is not expected to have significant impact on its net tangible assets and earnings per share for the current financial year.
This is Chip Eng Seng's second hotel in Australia within six months, as the group expands its hospitality investment portfolio.
Chip Eng Seng on Nov 2 this year completed the purchase of another AccorHotels-managed hotel in Perth. The acquisition of The Sebel Mandurah, which has 84 rooms, was made for A$15 million.