Hospitality firm Far East Orchard has set its sights on becoming the fifth biggest player in Australia's hospitality segment.
This is through joint venture (JV) deals with Straits Trading Company and property management firm Toga Group, which will be put up for shareholder approval at an extraordinary general meeting to be held next Tuesday.
"With these transactions, we'll put ourselves in the top five in Australia," said Far East Hospitality Management chief executive Arthur Kiong on Tuesday.
"We'll find ourselves going toe-to-toe" with big hospitality players like Accor and InterContinental, Mr Kiong told a briefing at Orchard Parade Hotel.
The company is setting up a JV with Straits Trading and will own 70 per cent of the venture. Straits Trading owns the remaining 30 per cent.
Separately, Far East Orchard will also buy a 50 per cent stake in a JV with Toga for A$225 million through a subsidiary. The deal will eventually involve Far East Orchard owning Toga's hospitality management business. Toga manages over 50 hotels and serviced residences across Australia, New Zealand, Germany and Denmark under the Medina, Adina and Vibe brands.