Frasers Property Makes Second Attempt to Take Frasers Hospitality Trust Private

News Summary

Frasers Property, a Singapore-based real estate firm, is making its second attempt to privatize Frasers Hospitality Trust in a deal valued at S$1.37 billion. Holding over 60% of the trust’s shares, the company has offered S$0.71 per share for the remaining shares, slightly increasing from its previous bid in 2022. Analysts are optimistic about the offer’s success due to competitive pricing and a softening hospitality sector outlook, indicating a strategic shift for Frasers as it seeks to manage its assets without public shareholder constraints.

Singapore – In a significant move, Frasers Property, a Singapore-based real estate firm, is making its second attempt to take Frasers Hospitality Trust private. The transaction values the hospitality real estate investment trust (REIT) at S$1.37 billion (approximately $1.1 billion), signaling an important shift in the firm’s strategy.

Frasers Property currently holds over 60% of Frasers Hospitality Trust’s shares and has offered S$0.71 per share for the remaining shares it does not already own. This offer is a slight increase from the company’s first bid of S$0.70 per share made in 2022, which ultimately failed to gain the necessary support from shareholders.

Analysts suggest that this latest offer has a better chance of succeeding due to several factors, including its competitive pricing, a softening outlook for the hospitality sector, and the relatively small asset size of the REIT. This strategic bid reflects Frasers Property’s confidence in its ability to manage and enhance the assets within their portfolio without public shareholder constraints.

Refinancing Initiatives in the Hospitality Sector

In related hospitality news, Innisfree Hotels and RREAF Holdings have successfully secured $23.6 million to refinance the recently converted Holiday Inn Resort in Surfside Beach, South Carolina. This refinancing was facilitated by Cronheim Hotel Capital through a regional bank, allowing the new owners to recuperate some capital for improvements following their acquisition.

New Developments in Hotel Construction

American Liberty Hospitality (ALH) is set to develop a dual-branded hotel that includes the Fairfield by Marriott and the TownePlace Suites by Marriott in Bastrop, Texas. The hotel will be part of an expansive 75-acre master-planned mixed-use development, with construction expected to commence later this year, and anticipated opening slated for early 2027.

Furthermore, Waterford Hotel Group will assume the operational management of two notable hotels: Courtyard Atlanta Norcross Peachtree Corners in Georgia and Embassy Suites Cleveland Beachwood in Ohio. At the same time, Great Lakes Capital is collaborating with Nebraska Furniture Mart and Cedar Park, Texas, on the development of a full-service Marriott hotel and convention center, projected to feature 297 keys alongside 30,000 sq. ft. of event space, with a completion date anticipated by Q1 2027.

Expansions and New Operations

Gulph Creek Hotels has begun managing the 95-key Home2 Suites by Hilton situated in Middletown, New York, marking its second property in that market. Meanwhile, Hilton has made strides in Vietnam, launching the first four of a planned 14 Tru by Hilton hotels, aiming for completion before the end of 2025, thereby ramping up its development pipeline in Vietnam to 29 hotels.

Additionally, Marriott International is forming partnerships with various real estate groups to unveil the St Regis brand in Jeddah, Saudi Arabia, featuring a 191-key hotel and 92 branded residences set to open by 2030.

In another promising venture, RJJ Hotels, a joint initiative between Riyaz International and Jin Jiang Hotels, has inked its first hotel management agreement in Luang Prabang, Laos, under the Metropolo brand. Their goal is to secure 181 hotel management agreements and manage 108 hotels across Southeast Asia in the forthcoming five years.

Finally, Vivenio, a Madrid-based REIT, is adopting the proptech platform Lavanda to enhance its flexible rental strategy across its extensive portfolio of over 6,400 homes in Spain, marking a significant step in the integration of technology within the real estate sector.

Deeper Dive: News & Info About This Topic

• Wall Street Journal: Frasers Property Mulls Privatization of Hospitality REIT
• Bloomberg: Thai Billionaire’s Frasers Property Posts Higher Profit
• Reuters: Singapore’s Frasers Property to Take REIT Private in $1.1 Billion Deal
• Google Search: Frasers Property
• Fortune: Frasers Property Earnings on Thailand, US, China Tariffs
• Wikipedia: Real Estate in Singapore