Far East Orchard

Far East Orchard (FEOR) / Far East Hospitality Trust (FEHT): Far East Organization (FEO) is studying plans to buy Straits Trading’s hospitality assets in a bid to expand its hospitality-mgt business beyond its core market in Singapore. FEOR says it signed MOU to explore acquiring Straits Trading's hospitality-mgt arm, and is also studying purchase of 50% stakes in three of Straits Trading's Australia hotels -- Rendezvous Studio Hotel Perth Central, Rendezvous Grand Hotel Melbourne and Rendezvous Hotel Perth. FEOR would then run the expanded portfolio through a newly created hospitality-mgt co, in which Straits Trading can acquire a stake of up to 20%. The deal, if successful, would allow FEOR to expand its hospitality-mgt business into markets like China, Australia and New Zealand, and boost its portfolio to more than 30 hotels and serviced apts and more than 6,000 rooms. The unit would also gain trademark rights to the "Rendezvous" and "Marque" brands. The Rendezvous Hospitality Group manages and operates hotel assets across the Asia Pacific region. Under a separate MOU, FEHT is studying plans to acquire leases for Straits Trading's Rendezvous Grand Hotel and its enjoining retail wing, Rendezvous Gallery, located in Singapore's Bras Brasah district. The two Far East entities didn't provide potential values or a timeline for the deals. Any definitive agreement for the planned acquisitions would only be signed after the end of this year.