Catalist-listed lifestyle and wellness service provider Mary Chia is expanding into the hotel business.
It said it has entered into a joint venture agreement with businessman Lee Boon Leng to set up a firm called Hotel Culture.
Hotel Culture’s primary business is to operate a hotel, a lifestyle and wellness centre, food and beverage and other hotel-related activities.
For a start, Hotel Culture has exercised an option to buy three properties located at Mosque Street for S$20 million. The properties will be re-developed into a 92-room heritage hotel by the joint venture firm.
Mary Chia said the new hotel will embrace a new lifestyle concept comprising a wellness spa that is integrated with hotel facilities. It added that the acquisition is part of its effort to innovate and introduce new brands into the market.
To pay for the properties, Mary Chia said about S$16 million will be borrowed externally, with the rest of the money coming from shareholders’ loans or equity.
Source : Channel NewsAsia – 28 Jan 2010