News Summary
Frasers Property is taking another step toward privatizing its Frasers Hospitality Trust by offering S$1.37 billion for the remaining shares it does not already own. The new price of S$0.71 per share is seen as a favorable proposal compared to the previous S$0.70 offer, amid a softer hospitality market outlook. Analysts suggest the deal’s success is more likely this time due to the increasing support and the smaller asset size of the trust, indicating smoother privatization processes ahead.
Singapore – Frasers Property is making a renewed effort to privatize its Real Estate Investment Trust (REIT), Frasers Hospitality Trust, as the company offers S$1.37 billion (approximately $1.1 billion) for the buyout. Already holding over 60% of Frasers Hospitality Trust’s shares, the Singapore-based property giant is now offering S$0.71 for each share it does not already own. This new bid comes in response to a lack of support for an earlier attempt in 2022, when Frasers proposed S$0.70 per share.
The current proposal is viewed as more favorable, largely due to the enhanced offer price and changing dynamics within the hospitality sector. With the market facing a softening outlook, analysts suggest the likelihood of this deal succeeding is significantly higher than in the previous attempt. Additionally, the relatively small asset size of Frasers Hospitality Trust is expected to facilitate a smoother privatization process.
In another development in the hospitality sector, Florida-based Innisfree Hotels and RREAF Holdings from Dallas have successfully refinanced the Holiday Inn Resort located in Surfside Beach, South Carolina. They secured $23.6 million for this refinancing initiative, enabling improvements to the property since its acquisition as an independent hotel in late 2023. This financial maneuver highlights ongoing investment activity in the hospitality industry as it seeks to recover and enhance quality post-pandemic.
In Texas, American Liberty Hospitality (ALH) is embarking on the development of a dual-branded hotel comprising Fairfield by Marriott and TownePlace Suites by Marriott in Bastrop. The hotel will be integrated within a larger 75-acre master-planned mixed-use development. Construction is anticipated to commence later this year, with an expected opening slated for early 2027, signaling continued growth in hotel development across the state.
In Connecticut, Waterford Hotel Group has taken over the management operations of two properties: a 131-key Courtyard hotel in Atlanta, Georgia, and a 216-key Embassy Suites in Cleveland Beachwood, Ohio. This move reflects ongoing consolidation trends in the hotel management sector as companies look to optimize profitability and operational efficiencies.
Great Lakes Capital from Indiana, in collaboration with Nebraska Furniture Mart and Cedar Park, Texas, has initiated the construction of a new full-service Marriott hotel and conference center. This new establishment will feature 297 hotel keys and 30,000 square feet of meeting and event space, with completion projected for the first quarter of 2027. The development underscores the ongoing demand for multi-functional hospitality spaces capable of catering to both leisure and corporate clients.
In Wayne, Pennsylvania, Gulph Creek Hotels has assumed management of the 95-key Home2 Suites by Hilton in Middletown, marking its second property in the region. This acquisition aligns with the company’s strategy to expand its footprint in key markets across the United States.
Internationally, Hilton has unveiled the first four of 14 planned Tru by Hilton properties in Vietnam, developed in partnership with ROX Group. These hotels are scheduled to open by the end of 2025 and will contribute to Hilton’s burgeoning development pipeline in the region, which now includes 29 hotels across Vietnam.
In Saudi Arabia, Marriott International is collaborating with Miyar Alshati Real Estate Co., Telal Al Wadi Real Estate Co., and Saud Al Arifi Investment Group to establish the renowned St Regis brand in Jeddah. The 191-key hotel is expected to include 92 branded residences and is set to open in 2030, reinforcing Marriott’s commitment to extending its luxury offerings in the Middle East.
Additionally, RJJ Hotels, a joint venture between Riyaz International and Jin Jiang Hotels, has signed its first hotel management agreement in Luang Prabang, Laos, under The Metropolo brand. The project aims to sign 181 hotel management agreements and manage 108 hotels across Southeast Asia, including countries such as Malaysia, Indonesia, and Vietnam, further expanding the region’s hospitality landscape.
Lastly, Vivenio, a Madrid-based company, has integrated the proptech platform Lavanda to enhance the development of its flexible rental strategy across a portfolio of over 6,400 homes. This initiative aims to diversify rental options, incorporating short-term, medium-term, and long-term rentals to meet varied consumer demands within the Spanish market.
Deeper Dive: News & Info About This Topic
- Wall Street Journal: Frasers Property Mulls Privatization
- Wikipedia: Real Estate Investment Trust
- Bloomberg: Frasers Property Posts Higher Profit
- Google Search: Frasers Property
- Reuters: Frasers Property to Take REIT Private
- Encyclopedia Britannica: Real Estate
- MSN Money: Frasers Property to Go Private
- Google News: Hospitality Industry
- Frasers Property Press Release: 1H FY25 Results
- Google Scholar: Frasers Property 2025
