SINGAPORE Nov 26 Singapore's Straits Trading Co
has signed non-binding agreements that may lead to the
sale of most of its hotel operations to the Far East
Organization property group, the companies said on Monday.
Two subsidiaries of Far East Organization aim to buy
separate parts of Straits Trading's hotels portfolio.
Straits Trading, which also has tin mining and property
development businesses, said the planned sales would help it to
focus on operating as a holding company.
Far East Hospitality Trust, which owns hotels and
residential serviced apartments in Singapore, intends to buy the
298-room Rendezvous Grand Hotel Singapore, partnered by sister
subsidiary Astor Properties.
Property firm Far East Orchard Ltd, meanwhile,
aims to buy 50 percent stakes in three Australian hotels owned
by Straits Trading.
None of the companies provided an indicative price for the
Straits Trading would subsequently hold a 20 percent stake
in a hospitality management business that will be set up through
the merger of the hotel management arms of Far East Organization
and Straits Trading.
(Reporting by Kevin Lim; Editing by David Goodman)