SINGAPORE - Hotel Royal Limited is looking to acquire Burasari Resort in Phuket, Thailand for about 1.3 billion baht (S$51 million) via the acquisition of the entire issued and paid-up share capital of Panali Company Limited.
The resort is situated at Ruamjai Road, and is less than three minutes' walk from Patong beach. The four-star property has 186 rooms and sits on freehold land area of about 6,722 square metres (sq m) with an approximate gross floor area of about 11,441 sq m.
Specifically, Hotel Royal's subsidiary Hotel Royal Thailand (HRT) has entered into a sale-and-purchase agreement with Sunyata Heritage Company while HRT's subsidiary, Excellent Hotel (Thailand) Company Limited (EHT), has entered into a sale-and-purchase agreement with five individuals and RLP Company Limited.
HRT and EHT will acquire the entire issued and paid-up share capital of Panali in the proportion of 49 per cent and 51 per cent, respectively.
According to Hotel Royal, the acquisition is an opportunity for the group to expand its hotel operations in the region.
"Based on the consideration of 1.3 billion baht for the resort, the cost per guest room of about 7.0 million baht is reasonable. The resort is also valued at 1.35 billion baht, which is slightly higher than the consideration of 1.3 billion baht," said the company.
The group also owns Hotel Royal Bangkok @ Chinatown, a 315-room hotel in the Thai capital. The acquisition is expected to add synergy to the group's hotel operations in Thailand in terms of sales referrals, joint marketing and management time.
The acquisition will be financed by internal funds and bank borrowings. The completion date is June 30.
Hotel Royal shares ended eight cents higher at $3.50 in trading on Friday.
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