PARK Hotel Group has sold Park Hotel Clarke Quay to Ascendas Hospitality Trust (A-HTRUST) for S$300 million (US$241.9 million), but will continue to manage the hotel.
The two companies entered into a conditional sale and purchase agreement last week for the 336-room hotel.
However, the property will be leased to Park Hotel Group for an initial term of 10 years, with an option to extend for a further term of five years.
Park Hotel Group has been growing its management arm over the last year, having secured deals to manage two upcoming hotels in Singapore on behalf of third-party owners (TTG Asia e-Daily, December 4, 2012). Singapore’s The Business Times also reported that buyers are being sought for the group’s two remaining hotels in Singapore and its property in Hong Kong.
Allen Law, CEO, Park Hotel Group, said: “Park Hotel Clarke Quay’s strategic location, superior brand positioning, and efficient management has resulted in a strong operational performance. The sale underpins the strong investor demand and appeal that exists for quality assets with strong stabilised cash flow.”
The sale also marks A-HTRUST’s maiden venture into the Singapore hospitality scene. Tan Juay Hiang, CEO, A-HTRUST, said: “We are excited to add Park Hotel Clarke Quay, a high-quality and award-winning hotel, to A-HTRUST’s stable of properties. This marks our first foray into the Singapore hospitality market as we capitalise on the continued growth of Singapore’s tourism industry.”
