Far East Orchard targets S$3 billion AUM, 110,000 lodging units by 2030

[SINGAPORE] Far East Orchard (FEOR) is scaling up its lodging platform with a five-year plan, and is eyeing “strategic disposal” of its non-core real estate assets.

The company, held by the Ng family’s Far East Organization, announced on Monday (Nov 24) it is targeting S$3 billion in assets under management by 2030, up 50 per cent from its S$2 billion core-asset goal for 2025.

It also plans to expand to 25,000 hotel rooms and 85,000 purpose-built student accommodation (PBSA) beds by 2030. The addition would bring FEOR’s total lodging inventory to 110,000 rooms and beds, roughly a 50 per cent increase from its portfolio of more than 72,000 units as at November 2025.

The targets are tied to the group’s five-year growth strategy to strengthen core capabilities, grow recurring earnings and maintain “asset-right” discipline.

FEOR said it plans to deepen its asset-management and fund-management capabilities, expand its lodging portfolio, and allocate capital to priority assets while recycling out of lower-yielding or non-core positions.

Core assets comprise its hospitality operations under Far East Hospitality and Toga Far East (TFE) Hotels, hospitality assets, PBSA operations in the UK, as well as PBSA and hospitality fund management platforms.

Listed as non-core assets are two medical suites in Novena; commercial development Woods Square in Woodlands; the Singapore Business Federation Center, a 31-storey commercial building on Robinson Road in the Central Business District with 48 medical suites and 199 office units; and the freehold land on which its Orchard Rendezvous Hotel sits along prime Tanglin Road.

Responding to queries from The Business Times, FEOR executive director and group chief executive Alan Tang said the company plans to divest its non-core assets when opportunities arise and to recycle the proceeds into its core assets, though there is currently no definite timeline for the disposals.

The group plans to expand its hospitality business across key geographies. It aims to grow its hotel management platform in Japan and selectively expand into priority South-east Asian cities, as well as raise its UK and Europe exposure through the TFE properties.

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It hopes to capture rising domestic and regional travel demand, capitalise on mid-scale segment recovery, and sees strong operational capabilities in key gateway cities.

In fund management, the group will build a lodging-focused platform and seed new funds with a mix of existing assets and new acquisitions.

For the PBSA segment, FEOR plans to grow fee-based business, selectively expand into build-to-rent and co-living in the UK and Europe, as well as optimise and recycle capital within the UK PBSA portfolio.

Shares of Far East Orchard were trading 0.8 per cent or S$0.01 lower at S$1.19 as at 1.57 pm on Monday.