Rendezvous to benefit from alliance

AccomNews Sunday, December 2, 2012

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The Straits Trading Co Ltd has signed a memoranda of understanding with members of the Far East Organisation Group, setting the framework for a strategic alliance in the hospitality sector.

Under the MOUs, STC entities, including its hospitality arm Rendezvous Hospitality Group, will enter into agreements with FEO’s listed entities as part of an overall strategy to create sustainable platforms for growth and value creation, both in Singapore and the Asia Pacific region.

The strategic alliance encompasses the following:

The formation of a joint venture asset ownership group, to be owned on a 50% – 50% basis between the STC Group and FE Orchard, which will initially hold STC Group’s three owned hotels in Australia, together with a cash payment by FE Orchard to STC;
The creation of a merged hospitality management company, to be owned on a 20% – 80% basis between the STC Group and FE Orchard, through the combination of the two Groups’ existing hospitality operations, together with a cash payment by STC to FE Orchard;
The injection of Rendezvous Grand Hotel Singapore and Rendezvous Gallery Singapore into Far East H-Trust, all of whose hospitality assets will then be managed by the merged hospitality management company.
Implementation of the transactions envisaged under the MOUs will result in the creation of sustainable and scalable platforms for growth, bringing together two of Singapore’s leading hospitality operators, who will be well-positioned to grow and strengthen the Rendezvous brand in Singapore, Australia and the Asia Pacific.

STC remains committed to its hospitality arm and its outstanding projects. Last year, RHG announced an STC-supported, multi-million dollar rebranding initiative uniting Rendezvous Hotels and Marque Hotels into one Rendezvous brand. As part of this initiative, many of the Hotels have undergone extensive refurbishment, including the Rendezvous Hotel Perth (soon to be renamed Rendezvous Grand Hotel Perth Scarborough) and the Rendezvous Grand Hotel Melbourne, which will celebrate its 100th anniversary in early 2013.