The industry’s best-kept secret is out: Toga Hotels has confirmed it will run Rendezvous Hotels in Australia and New Zealand as part of its joint venture agreement with Far East Hospitality.
The plan for Toga to run the Rendezvous Hotels portfolio has been in the works since early 2013 and the move will take the company’s management portfolio to more than 65 hotels across Australia, New Zealand and Europe.
“We are delighted to be working in partnership with Far East Hospitality to further extend our hotel management business to include Rendezvous Hotels into our portfolio,” said Toga Hotels CEO, Rachel Argaman.
“This joint venture marks an important milestone for Toga Hotels as we continue to expand our collection of hotels across Australia and New Zealand,” she said.
The joint venture between parent company Toga Group and Far East Hospitality Holdings (Far East Hospitality) followed a separate joint venture between Singapore-listed company Far East Orchard Limited and The Straits Trading Company Limited.
Toga Hotels will initially assume responsibility for the management of the Rendezvous Grand Hotel Perth Scarborough, Rendezvous Studio Hotel Perth Central, Rendezvous Grand Hotel Melbourne and Rendezvous Grand Hotel Adelaide. It will initially consult on the remaining seven.
Argaman said the joint venture between Toga Group and Far East Hospitality is in-line with Toga Hotels’ ongoing growth strategy.
She said Toga Group and Far East Hospitality would be able to combine their financial resources to pursue more yield accretive acquisitions and growth opportunities, either in hospitality-related assets or hospitality management business. At the same time it is envisaged that the combined operations will draw potential cost savings and greater operational efficiencies for both Far East Hospitality’s and Toga Hotels’ operations.
“We are excited about starting this new chapter in Australia as we expand our geographic footprint together with Toga Hotels,” said Far East Hospitality’s CEO, Arthur Kiong.
“As Asia Pacific will continue to lead as the fastest growing travel region, this strategic move allows us to be well placed to seize opportunities, while underscoring Far East Hospitality’s aggressive, yet disciplined approach in growth plans to expand beyond the Singapore market and into the region,” he said.
The joint venture also expands Far East Hospitality’s portfolio, adding the Adina Apartment Hotels, Medina Serviced Apartments, Vibe Hotels and Travelodge brands to its existing portfolio, which comprises Quincy, Oasia, Rendezvous, Village, Far East Collection and Marque.