Raffles buy is on the cards
Singapore-based Raffles Holdings is close to acquiring another medium-sized hotel chain.
Announcing its financial results for the six months to 30 June, Raffles said: "We have made good progress on our discussions with four parties. We will be in a position to make further announcements on this programme in the near future."
The company is also in "advanced discussions with five parties in Asia and Europe on securing management contracts for their properties."
During the six months, turnover of the group's hotels and resorts business grew by 13.3% to S$118m (£45m). Pre-tax profit, however, fell by 4.2% to S$27m (£10.3m).
The increase in turnover was the result of improved occupancy levels and room rates in the group's hotels in Singapore and Cambodia, combined with the economic recovery in Asia and improved results at its hotel in Germany. It was also helped by the opening in December 1999 of the Merchant Court hotel in Sydney, Australia.
The fall in profits was put down to start-up expenses at the Merchant Court, Sydney, and the fact that the hotel did not have all its rooms ready for use until April.
All of the group's hotels performed better than last year, Raffles said.
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