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Latest news

Mandarin Orchard Singapore to be rebranded as Hilton Singapore Orchard

Business Insider
April 20, 2020, 01:56 PM GMT + 7
  • Upon its relaunch expected in 2022, Hilton Singapore Orchard will feature 1,080 well-appointed rooms and five restaurants and bars including an all-day dining restaurant.

OUE Limited ("OUE") and OUE Commercial REIT Management Pte. Ltd., in its capacity as manager (the "Manager") of OUE Commercial Real Estate Investment Trust ("OUE C-REIT") have collaborated to rebrand the landmark Mandarin Orchard Singapore to Hilton Singapore Orchard ("Re-branding Exercise"), following a comprehensive and strategic review.
OUE, which is the master lessee of Mandarin Orchard Singapore, has entered into a Branding and Management Agreement (the "BAMA") with Conrad International Management Services (Singapore) Pte. Ltd. ("Hilton") to rebrand Mandarin Orchard Singapore into Hilton's flagship in Singapore.

Mandarin Orchard Singapore

Under the BAMA, Mandarin Orchard Singapore will relaunch as Hilton Singapore Orchard—Hilton's flagship in Singapore and the largest Hilton hotel in Asia-Pacific—with product and service offerings aligned with Hilton's brand standards. Hilton will have the exclusive authority to operate the property upon the opening of Hilton Singapore Orchard.
Asset enhancement works to add new meeting facilities as well as refreshed food and beverage offerings to cater to the growing demand for regional and global meetings, incentives, conference and exhibition ("MICE") events have also been planned. The planned refurbishment will be conducted in phases and will commence in 2Q 2020 to capitalise on the current challenges facing the hospitality industry due to COVID-19. The refurbishment is scheduled to be completed by end-2021. During the refurbishment period, Mandarin Orchard Singapore will continue to operate under the management of Meritus Hotels & Resorts, the hotel management company under the Hospitality Division of OUE.
Upon its relaunch in 2022, the hotel will feature 1,080 well-appointed rooms and five restaurants and bars including an all-day dining restaurant. The hotel will also boast meeting and function spaces spanning a total of 3,765 square metres, including three ballrooms.
"We are presented here with exciting opportunities to tap on the strong brand recognition, global distribution network, and industry-leading innovations that Hilton brings, as we reposition the property more strategically for the longer term within Singapore's landscape of robust tourism growth and at the same time increased competition in the hospitality industry," says Mr Brian Riady, Deputy Chief Executive Officer of OUE.
Mr Riady added, "The rebranding of Mandarin Orchard Singapore is a fitting culmination to its 50-year legacy as the benchmark of gracious Asian hospitality in Singapore, following a comprehensive and strategic review by OUE in collaboration with OUE C-REIT. For the customer, this new chapter translates to exceptional service experiences synonymous with the Hilton brand. For our employees, being part of an international hotel chain offers tremendous opportunities for career growth and development."
Ms Tan Shu Lin, Chief Executive Officer of the Manager said, "We firmly believe in the long-term value of our landmark asset. This strategic partnership presents an attractive opportunity to strengthen the property's position as one of the premier hotels in the prime Orchard Road segment."
"The rejuvenation into an upper upscale hotel combined with the addition of more income-generating spaces within the property allows the Manager to create value and drive sustainable returns in line with our proactive asset management approach. The current challenges faced by the Singapore hospitality sector also present a timely opportunity for us to carry out the extensive renovations, with the rebranded hotel expected to be ready in time to take advantage of the sector's anticipated recovery," added Ms Tan.
Prominently located in the heart of Singapore's premier Orchard Road shopping and entertainment belt, Mandarin Orchard Singapore, which began operations in 1971, is part of OUE C-REIT's portfolio, under OUE Hospitality Sub-Trust.  OUE and the Manager believe the Rebranding Exercise will significantly enhance the property and drive growth in long term sustainable returns and value to the Unitholders of OUE C-REIT.
OUE C-REIT expects to incur capital expenditure of approximately S$90.0 million in the Rebranding Exercise, with a projected return on investment of approximately 10% on a stabilised basis. The Manager intends to draw down on existing loan facilities to fully fund the Rebranding Contribution progressively over the renovation period. As the capital expenditure will be expended in phases, the exercise is not expected to have any material impact on the aggregate leverage or earnings of OUE C-REIT for the financial year ending 31 December 2020.


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