FAR East Hospitality (FEH) and joint venture partner Toga Group have expanded into Germany and Denmark via a series of acquisitions, a year into the collaboration.
The two companies will jointly purchase 50 per cent interests in a portfolio of companies from Toga Accommodation Fund (TAF Property Companies).
The latter holds three hotels – Adina Apartment Hotel Berlin Checkpoint Charlie, Adina Apartment Hotel Frankfurt Neue Oper and Adina Apartment Hotel Copenhagen.
Additionally, FEH is also to take up a 50 per cent stake in a separate portfolio of companies from Toga Group, which owns the Adina Apartment Hotel Berlin Hauptbahnhof under Toga Property Companies.
Lucas Chow, Far East Orchard’s group CEO and managing director, said in a release: “We are delighted that Far East Orchard has made its first asset acquisitions in Europe, continuing our expansion plans from the string of hospitality transactions in Australia last year. We believe that this transaction sends a strong signal of our capability to rapidly seize opportunities and leverage on the synergies offered by our joint venture partner, Toga Group.”
All four properties are worth a total of 107.1 million euros (US$143.2 million), and currently operate under the umbrella brand of Adina Apartment Hotels by Toga Far East Hotels, the joint venture company between FEH and Toga Group.
Arthur Kiong, CEO of FEH, said: “The acquisition of these four hotels in Germany and Denmark will further strengthen our foothold in Europe and sets the platform for us to pursue more opportunities for the group in the future. We are optimistic of Europe’s ability to attract tourist arrivals globally as Europe remains the world’s largest tourism region. Our European properties will stand to benefit from the growing optimism of the recovering European economy.”
