FAR East Orchard (FEOrchard) will take the plunge Down Under if a proposed joint venture with Australian property management firm, Toga Group, is approved by shareholders.
The joint venture will see FEOrchard pay A$225 million (US$204.1 million) through a subsidiary for a 50 per cent stake in the joint venture company with Toga.
The new company will own Toga’s hospitality management business, which currently includes management of more than 50 hotels and serviced residences across Australia, New Zealand, Germany and Denmark, under the brands Medina, Adina and Vibe.
In April this year, FEOrchard had announced it was entering a joint venture with Straits Trading Company (TTG Asia e-Daily, April 16, 2013), with Straits Trading Company contributing three hotels in Australia – Rendezvous Grand Hotel Melbourne, Rendezvous Hotel Perth and Rendezvous Studio Hotel Perth Central.
The earlier joint venture is also up for approval by shareholders. According to local papers The Business Times, approval would mean FEOrchard will manage some 13,000 rooms across 80 hotels and serviced apartments, making the company one of Australia’s top five operators by room count.
