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.