News Summary
Frasers Property has initiated a new bid to privatize its REIT, Frasers Hospitality Trust, valuing it at S$1.37 billion. This offer of S$0.71 per share is slightly higher than a previous one that did not gain shareholder support. As the hospitality sector grapples with challenges, other companies are also adapting, including new hotel developments and management expansions across various regions and internationally.
Singapore – Frasers Property has launched a second attempt to privatize its real estate investment trust (REIT), Frasers Hospitality Trust, presenting a valuation of S$1.37 billion (approximately $1.1 billion). This new offer comes as the company seeks to gain full control over the hospitality-focused trust, which it already holds over 60% of the shares.
The proposed buyout offers S$0.71 per share for the remaining shares, a slight increase from the S$0.70 per share offered in a previous attempt in 2022. That initial buyout offer failed to secure the necessary shareholder support to succeed. Analysts suggest this revised offer may have a better chance of success due to the higher offer price, a softening outlook for the hospitality industry, and the relatively small asset size of the REIT.
While the privatization bid unfolds, the hospitality sector continues to face significant challenges. Major players in the industry are adapting strategies to navigate the turbulent economic landscape. For instance, Innisfree Hotels and RREAF Holdings recently secured $23.6 million in financing to refinance the Holiday Inn Resort in Surfside Beach, South Carolina. This property was recently converted from an independent hotel and financing is inclusive of a return of capital for improvements made since the acquisition.
In another development, American Liberty Hospitality (ALH) is moving forward with building a dual-branded hotel that will feature both Fairfield by Marriott and TownePlace Suites by Marriott in Bastrop, Texas. This project is part of a larger 75-acre master-planned mixed-use development, with construction expected to begin later this year and aiming for completion by early 2027.
Furthermore, Waterford Hotel Group has announced management roles for two new hotels: the 131-key Courtyard Atlanta Norcross Peachtree Corners in Georgia and the 216-key Embassy Suites Cleveland Beachwood in Ohio. This expansion reflects an increased demand for hospitality options across various regions.
In Cedar Park, Texas, Great Lakes Capital, together with Nebraska Furniture Mart and local authorities, has broken ground on a new Marriott hotel and convention center. This project is projected for completion by the first quarter of 2027 and is seen as a significant addition to the area’s hospitality offerings.
In management shifts, Gulph Creek Hotels has taken over operations of the 95-key Home2 Suites by Hilton in Middletown, New York, marking its second property in that particular market.
On an international scale, Hilton has opened four Tru by Hilton hotels in Vietnam in conjunction with ROX Group, aiming to expand its portfolio in the country to 29 hotels by the end of 2025. Marriott International is also expanding, collaborating with Miyar Alshati Real Estate Co., Telal Al Wadi Real Estate Co., and Saud Al Arifi Investment Group to establish a St Regis hotel in Jeddah, Saudi Arabia, with an anticipated opening in 2030.
Additionally, RJJ Hotels, a partnership between Riyaz International and Jin Jiang Hotels, has signed its first hotel management agreement under the Metropolo brand in Luang Prabang, Laos. The company aspires to sign 181 hotel management agreements and operate 108 hotels across Southeast Asia in the coming five years.
In the REIT sector, Vivenio, a real estate investment trust based in Madrid, has adopted the Lavanda proptech platform to bolster its flexible rental strategy across a portfolio of over 6,400 homes in Spain.
Lastly, Frasers Property UK has leased a 21,000-square-foot facility to Intuitive at the Winnersh Triangle in Reading, which will serve as the company’s UK and Ireland headquarters and a training center, showcasing the ongoing developments and expansions in both the hospitality and property sectors.
Deeper Dive: News & Info About This Topic
- Wall Street Journal
- Wikipedia: Real Estate Investment Trust
- Fortune
- Google Search: Frasers Property
- Reuters
- Google Scholar: Frasers Property
- Forbes
- Encyclopedia Britannica: Singapore
- Bloomberg
- Google News: Frasers Property Privatization
Author: STAFF HERE CLINTON
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