Park Hotel Group is looking at being listed on the Singapore Exchange (SGX) in the second half of next year and possibly, a dual listing in Hong Kong.
Plans for an IPO, most probably through a real estate investment trust (REIT) listing, are on course, said Allen Law, director of the Park Hotel Group, in an interview with The Business Times.
“The Singapore Reit market is one of the best in Asia,” said Mr. Law, adding that nearly half of the company’s assets in terms of value are located in Singapore. “We’re definitely looking at Singapore but we’re also exploring a dual listing in Hong Kong. After the Reit IPO, we will (re-inject) the capital raised back into the group to fuel its continued expansion.”
Originally founded in Hong Kong, Park Hotel Group has a large portion of portfolio in Hong Kong and China, making a dual listing a good prospect for the company.
Its portfolio includes eight hotels throughout the Asia Pacific region, three each in Singapore and China, and one each in Japan and Hong Kong.
Its newest project is an $80 million rebranding and renovation exercise for the Grand Park Orchard, previously the Park Hotel Orchard. Situated next to Paragon shopping mall, the 308-room flagship property also houses the Knightsbridge, an 83,000 sq ft retail podium.
“In terms of capital value, we’ve already exceeded the $380 million (invested). Now, we are valuing the property at around $900 million to $1 billion. We bought (it) before the property market climbed up so we’ve benefited from that. Restructuring the hotel and retail portion gives us additional advantage,” said Mr Law. The group acquired the hotel in 2005 for approximately $300 million.
The hotel is now seeing more than 70 percent occupancy level with room rates at about $280 a night. The company hopes the hotel will achieve an occupancy rate of more than 90 percent, with a room rate of around $350.