and 27 Managed Hotels Named ‘Deal of the Year’ by
Hotel Investment Conference Asia Pacific
|SINGAPORE, 14 OCTOBER 2005 _ Colony Capital, LLC and Raffles Holdings
Limited are very pleased to announce that they have been awarded the prestigious
‘Deal of the Year’ award at the 16th annual Hotel Investment Conference
Asia Pacific (HICAP) in Hong Kong today.
The transaction between Colony Capital, LLC and Raffles Holdings Limited to purchase the latter’s entire hotel business for an enterprise value of S$1.72 billion was closed last month and included the acquisition of all 41 hotels of Raffles Holdings (14 owned and 27 managed).
Organised by leading hotel, tourism and leisure consulting firm, Horwath Asia Pacific together with Sonnenblick-Goldman Company and Burba Hotel Network, HICAP is an annual event that sees the gathering of Asia’s top hotel industry leaders, investors and financiers.
Colony Capital, LLC, is a leading international investment fund with more than 15 years of experience investing in global hospitality assets while Raffles Holdings is a Singapore listed company that has a 45% direct equity interest in Tincel Properties (Private) Limited, which owns Raffles City Complex, a multi-use development located in Singapore's prime business district which the Company manages. From the deal, Raffles Holdings received S$1.45 billion aggregate consideration in cash for its equity interest. Based on the pro forma net tangible assets (“NTA”) of the Hotel Business as at 31 December 2004, the aggregate consideration implies a 64% premium to NTA and gross proceeds of S$0.69 per Raffles Holdings share.
Present at the award ceremony were Mr Grant L. Kelley, CEO of Colony Capital Asia Limited and Ms Leong Wai Leng , Deputy CEO of Raffles Holdings Limited. Mr Kelley said, “We are ecstatic that our move to purchase Raffles Holding’s Hotel Business has been recognised as the year’s most prominent hotel deal by the industry.
With its outstanding brand assets and a team of talented staff, Raffles International fits well into our overall strategy of building a major world-class hospitality organization that can serve increasingly sophisticated customer needs. With the successful completion of the deal last month, we will now build on the existing strengths of Raffles International and leverage on the resources, networks and products to ensure the continued growth of the Raffles and Swissôtel brands over the years ahead.”
Commenting on the award, Ms Leong said: “We are delighted to be presented with this world-class award, and to have the deal accorded the highest level of recognition by top hotel industry leaders, despite being pitted against other high-profile international deals. This award is the culmination of many months of dedication, hard work and spontaneous teamwork by our fellow colleagues. We believe that the deal best exemplifies a win-win situation for both Raffles Holdings and Colony Capital where each found great value in the transaction.”
Ms Jennie Chua, President & CEO of Raffles Holdings Limited, added: “The deal has allowed us to achieve the twin objectives of placing the Hotel Business on an even stronger platform for further growth and development and at the same time, allowed the Group to unlock significant value for shareholders.”
“It is an honor to be recognized by our highly esteemed peers at this important industry event,” said Thomas J. Barrack, Chairman and CEO of Colony Capital.
About Colony Capital, LLC
About Raffles Holdings Limited
|Also See:||Raffles International Appoints of Ms Leong Wai Leng as Chief Executive Officer / September 2004|
|Colony Capital in Agreement to Purchase 15 Raffles Hotels and 26 Swissotels from Raffles Holdings for Approximately US$1 billion; Includes the Fabled Raffles Hotel Singapore / July 2005|
|One of Singapore's Oldest, the Raffles Hotel, Is Up for Sale by Owner Raffles Holdings / Sept 2002|