Singha Estate, the premier property development and investment holding company, on Tuesday announced the successful acquisition of six Outrigger-branded hotels.
The US$310-million (nearly Bt10 billion) acquisition is part of the listed company’s strategic investment approach, “SMART Mergers and Acquisitions” (SMART M&A), which focuses on high-return asset investment emphasising fast-growing prospects in tourist destinations around the globe.
The corporate has also emphasised augmenting development in brand-building, customer experience and promoting sustainability of the surrounding community and environment.
The acquisition also accelerates the strategic intention of S Hotels & Resorts, a subsidiary of Singha Estate, to conduct an initial public offering aimed for 2019, whereby S Hotels & Resorts will become a full-fledged global holding company.
“Singha Estate’s business direction aims to become a ‘premier property development and investment holding company’ generating revenue of Bt20 billion by 2020. This strategic investment and acquisition of Outrigger-branded hotels in four countries will generate recurring income and further diversify the company’s profile and geographical location of high-yield tourist destinations,” said chief executive officer Naris Cheyklin.
Singha Estate’s strategic approach of SMART M&A has generated asset growth from Bt11.2 billion in 2014 to Bt40.9 billion in 2017, he said.
Combined with a substantial investment in the visionary “CROSSROADS” project in the Maldives, Singha Estate’s total asset-growth effect will soon top Bt60 billion to yield its revenue target, he added.
“With Singha Estate’s esteemed reputation as outstanding stewards of the properties and places in which it invests, Outrigger has full confidence that its premier resorts will continue in exceptional care. This asset sale and strategic partnership now provide new capital for further expansion, while retaining Outrigger’s brand presence and management of world-class properties,” said Jeff Wagoner, president and CEO, Outrigger Hotels and Resorts.