All parties have agreed to terminate the agreements with effect from 11.59pm on Aug 31.
The costs and expenses to be incurred with the termination is expected to be around $2.0 million, which is not expected to materially impact Tuan Sing’s net tangible assets (NTA) based on the FY2023 ended Dec 31, 2023. The cost, however, is expected to lower Tuan Sing’s earnings per share (EPS) to 0.23 cents from 0.39 cents.
Following the termination, Hyatt Regency Perth will cease to be a Hyatt-managed hotel. According to the company, the property will be repositioned and rebranded, in line with its long-term strategy to expand its hospitality business. Tuan Sing’s hospitality portfolio currently includes the Grand Hyatt Melbourne and Fraser Residence River Promenade.
The portfolio will be expanded upon the completion of the Opus Bay project in Batam, Indonesia, an integrated township currently under development that includes hospitality components.
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As at 9.06am, shares in Tuan Sing are trading flat at 23 cents.
