Philip Hopkins July 16, 2012
A 100-YEAR-OLD hotel in Flinders Street, Melbourne, the Rendezvous, has been bought for $61 million by a Singapore property group as part of its expansion in Australia.
The Straits Trading Company bought the historic hotel at 328 Flinders Street through its wholly owned subsidiary, Rendezvous Hotels Management, from Challenger Life Nominees No 2 (formerly known as Challenger Property Funds Management).
The property, built in 1912, is currently leased and operated by the company's wholly owned subsidiary, Rendezvous Hotel (Australia) under the hotel name, Rendezvous Grand Hotel Melbourne.
Straits Trading chief executive (property and hospitality) Eric Teng said the hotel was a valuable addition to the Rendezvous Hospitality Group portfolio. ''We are continuing to strengthen and expand our footprint in the Asia-Pacific region, which is enjoying growth in travel and tourism,'' he said. ''With two other owned Rendezvous hotels in Australia, we will be able to benefit further from synergies and economies of scale.''
Mr Teng said Australia's tourism market was growing and Australians embodied a warm and friendly culture, which further enhanced the attraction of the country.
The acquisition of the Melbourne property is part of Straits Trading's hospitality strategy of making opportunistic acquisitions that match its investment criteria, in addition to managing hotels and forming strategic alliances.
Through its hospitality division, Rendezvous Hospitality Group, Straits Trading owns two hotels in Perth and the flagship Rendezvous Grand Hotel Singapore on Bras Basah Road, and leases and manages 10 other hotels in Melbourne, Sydney, Brisbane, Adelaide, Port Douglas, Auckland, Christchurch and Shanghai.