Tuan Sing terminates management agreements for Hyatt Regency Perth
The company says it expects to incur S$2 million in costs and expenses
TUAN Sing has terminated management contracts for its Hyatt Regency Hotel asset in Perth, Australia, ahead of the property’s planned repositioning and branding. (See *Amendment note)
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.
On Monday (Jul 1), Tuan Sing said it expects to incur S$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 FY2023, earnings per share for the year will be reduced to S$0.0023 from S$0.0039.
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.
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The latter property is a four-storey serviced apartment development with 72 units, three conservation warehouses and 47 car park lots, located at 5 Jiak Kim Street.
In May this year, Tuan Sing confirmed an earlier report by The Business Times that it acquired the newly completed mixed-used property at Robertson Quay for S$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.
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Shares of Tuan Sing ended last Friday unchanged at S$0.23.
*Amendment note: Tuan Sing has clarified that it is the owner of the property and the hotel is managed by Hyatt. Tuan Sing has no role in the hotel’s management.
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