Raffles Hotel's new owner takes over

Raffles Hotel's new owner takes over

Joyce Teo, Asia News Network, The Straits Times/Singapore

It may look like just another business deal, but a piece of history was made on Friday when the famed Raffles Hotel changed hands officially.

The change is part of a S$1.72 billion (US$1.02 billion) sale of the entire hotel operations of Raffles Holdings to United States private equity firm Colony Capital.

For Raffles Holdings, the deal brought a cash windfall of S$1.45 billion after it deducted minority interests and assumed debt.

The deal for one of Singapore's most famous landmarks and 40 other properties under the Raffles and Swissotel brands was announced on July 18.

Named after the founder of modern Singapore, Sir Stamford Raffles, the luxurious hotel opened in 1887 as a 10-room establishment. It now has 103 suites.

Writer Joseph Conrad is believed to have been one of its earliest guests. The hotel, declared a national monument in 1987, has also hosted other writers such as Rudyard Kipling and Somerset Maugham, as well as actors Charlie Chaplin and Jean Harlow among others.

Raffles Holdings will continue to own a 45 percent direct equity interest in Tincel Properties, which owns the Raffles City complex.

Last year, Tincel Properties generated an operating profit of S$96.3 million.