Tuan Sing terminates management agreements for Hyatt Regency Perth

SINGAPORE - Tuan Sing will no longer manage Hyatt Regency in Perth, Australia, ahead of the property’s planned repositioning and branding.

Its indirect wholly owned subsidiary, HR Operations, inked a deed of termination and release with Hyatt’s subsidiaries to end the property’s existing management agreements.

Hyatt Regency Perth will cease to be a Hyatt-managed hotel on Aug 31, after which it will be repositioned and rebranded to commence business.

Tuan Sing said on July 1 that it expects to incur $2 million in costs and expenses from the termination of Hyatt Regency Perth’s management.

While this is not expected to have a material impact on the pro-forma group’s net tangible assets for financial year 2023, earnings per share for the year will be reduced to 0.23 cent from 0.39 cent.

Tuan Sing said the move is in line with its long-term strategy to expand its hospitality business, which currently includes Grand Hyatt Melbourne and its recently announced acquisition of Fraser Residence River Promenade in Singapore.

Shares of Tuan Sing dropped one cent, or 4.35 per cent, to 22 cents as of 9.10am on July 1. THE BUSINESS TIMES