Tuan Sing Holdings 5IC announced, on July 1, that it has terminated its hotel management agreements for Hyatt Regency Perth Hotel.
The company’s indirect wholly-owned subsidiary, HR Operations Pty Ltd entered into a deed of termination and release with Hyatt of Australia Limited and Hyatt Services Australia Pty Limited on the same day. HR Operations and Hyatt of Australia are parties to a management agreement dated Aug 8, 1996 while HR Operations and Hyatt Services Australia are parties to a shared services agreement dated May 4, 2001.
All parties have agreed to terminate the agreements with effect from 11.59pm on Aug 31.
The costs and expenses to be incurred with the termination is expected to be around $2.0 million, which is not expected to materially impact Tuan Sing’s net tangible assets (NTA) based on the FY2023 ended Dec 31, 2023. The cost, however, is expected to lower Tuan Sing’s earnings per share (EPS) to 0.23 cents from 0.39 cents.
Following the termination, Hyatt Regency Perth will cease to be a Hyatt-managed hotel. According to the company, the property will be repositioned and rebranded, in line with its long-term strategy to expand its hospitality business. Tuan Sing’s hospitality portfolio currently includes the Grand Hyatt Melbourne and Fraser Residence River Promenade.
The portfolio will be expanded upon the completion of the Opus Bay project in Batam, Indonesia, an integrated township currently under development that includes hospitality components.
See also: Interra Resources granted 12-month extension to meet SGX watch-list exit requirements
As at 9.06am, shares in Tuan Sing are trading flat at 23 cents.
