SINGAPORE - Mainboard-listed First Sponsor Group said on Monday (July 3) it plans to acquire Queens Bilderberg (Nederland), a Dutch heritage brand that owns a portfolio of 17 hotels across the Netherlands, for 171.4 million euros (S$270.2 million).
The Bilderberg Portfolio comprises 16 owned hotels totalling 1,633 rooms, and one leased hotel with 62 rooms. The portfolio also includes 13,661 square metres of conference space and 49 food and beverage outlets, including two Michelin-starred restaurants.
The hotels had an average occupancy of 62.5 per cent and an average room rate of €95.1 (about S$150) in financial year 2016.
First Sponsor's CEO Neo Teck Pheng, said, "This envisaged acquisition will catapult the group to become one of the largest hotel owners in the Netherlands. The Bilderberg Portfolio has an established profit track record from as far back as 2001 which would provide further diversification to our recurrent income base thereby strengthening our business resilience.
The Bilderberg Portfolio will be acquired at a historical 2016 net yield of 6.5 per cent after transaction costs. It has undergone capital expenditure of €36 million in total for the last four years. In addition, certain hotels have been identified to have redevelopment potential including increasing room count to optimise their earnings capacity, said First Sponsor.
It added that 15 out of the 17 hotels are freehold and perpetual leasehold in tenure, in line with the group's long term investment strategy for capital appreciation. "