The Park Hotel Group has delayed its IPO – most likely to take place through listing of a REIT – until late 2011 although group director Allen Law is confident that a dual listing in Singapore and Hong Kong will prove attractive to investors.
Law says the Singapore REIT market is one of the best in Asia and while he declines to offer an opinion on how much the group hopes to rise from the IPO, he says that once funds are secured they will be injected back into company to drive expansion.
The Park Group, conceived in Hong Kong in the early 1960s, and now domiciled in Singapore, officially opened its eighth property, the Grand Park Orchard, on October 10, 2010 (10-10-10).
The property was brought in 2005 from financially stressed Indonesian owners and rebranded from Crown Prince to Park Hotel. After an S$80 million, 18-month renovation it reopened last month on Orchard Road, Singapore's shopping mecca,
At ground level, the Knightsbridge shopping arcade cocoons a number of upmarket designer label shops.
Park Hotels hopes to have its brand on another 10 properties in the next three years, either through acquisition or development or through management contracts.
Target destinations are Vietnam, Thailand, Japan and China, where it currently has properties in Xian, Wuzi and Kunming.
In China, Park will bypass Beijing and Shanghai for new properties – claiming these cities are already over-supplied – and instead choose central locations in secondary cities.
HA Perspective: The Park Hotel Group has work to do to create awareness of its brand in Asia Pacific but the new flagship property in Orchard Road will go some way to helping achieve that aim.
Proposed new properties in China will also help Chinese to recognise the Park brand when they travel in ever-increasing numbers outside China.