KOP Capital is moving from residential and commercial property development into hotel business for the first time.
The Singapore-based developer has recently acquired a 50 per cent stake in a small luxury hotel operator, Stein Group, which is based in Spain. The investment is valued at US$250 million.
Last year, KOP Capital launched Asia’s first high-end residential project that features a car park right inside the unit, next to the living room.
Now the developer is expanding into the hospitality business and going global with the acquisition of Stein Group International, the fastest growing boutique hotel in Europe.
For Stein Group, it hopes to take advantage of KOP Capital’s experience and capital to expand its hotel chains into Asia by 2010.
David F Stein, chairman and CEO, Stein Group International, said: “I think the Asian market for luxury life-style hotels is extremely broad, there are very few people providing them… so our strength is being able to deliver both experience and also the clients we have already established in North America and Europe coming to Asia.”
The two partners are now looking at possible locations, including Singapore, China, Indonesia and Thailand.
Small luxury lifestyle hotels may be popular in Europe, but it is a relatively new concept in Asia. Still, KOP sees a lot of potential in the market and is already talking about expansion.
Leny Suparman, executive director, KOP Capital, said: “We’ll be putting aside about another US$250 million to US$300 million to expand the chain within the next three to five years.”
Stein Hotels and Resorts now consists of 23 hotels, out of which 17 are currently operating and six are under development in seven European countries.
Source : Channel NewsAsia – 27 Aug 2008