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
Colony Capital, LLC is a private, international investment firm focusing primarily on real estate-related assets and operating companies. Since 1991, Colony Capital has invested more than US$15 billion in over 8,000 assets through various corporate, portfolio and complex property transactions. The firm owns the legendary Costa Smeralda resort in Sardinia, Italy and Hotel Guanahani in St. Barts. Colony�s other investments in exclusive leisure lifestyle and resort properties have included the Amanresorts hotel chain, London�s Savoy Group, the Orchid at Mauna Lani on Hawaii�s Big Island, The Stanhope Hotel in New York City, the �W� in Honolulu, Resorts International in Atlantic City, Atlantic City Hilton, Las Vegas Hilton and Accor Casinos in Europe. Colony is led by its founder and chairman Thomas J. Barrack, Jr., and in Asia by Grant L. Kelley.

About Raffles Holdings Limited 
Raffles Holdings Limited is a company headquartered in Singapore and listed on the Singapore Stock Exchange. It 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. The 320,656 square metre Raffles City Complex comprises two hotels (with a total of 2,046 rooms), a office tower block (with a net leaseable space of 35,247 square metres), a retail complex (with a net leaseable space of 27,682 square metres) and a convention centre.

Raffles Holdings
Jeanette Pang
Investor Relations
Raffles Holdings Limited
(Regn. No.: 199506093G)
2 Stamford Road #06-01
Raffles City Convention Centre
Singapore 178882
Tel: (65) 6430 1357
Fax: (65) 6339 2912
E-mail: [email protected]
www.rafflesholdings.com

Raffles International
Lynda Soong
Corporate Director
Marketing Communications
Tel: (65) 6430-1121
Fax: (65) 6339-1713
E-mail: [email protected]