OUE to rebrand Mandarin Orchard Singapore as Hilton's flagship
They plan to spend $90m in renovating the hotel.
OUE Limited and OUE Commercial REIT (OUE C-REIT) will re-brand Mandarin Orchard Singapore to Hilton Singapore Orchard following an agreement with Conrad International Management Services (Singapore), according to a press release.
Conrad International, also known as Hilton, will have the hotel as its flagship in Singapore and its largest hotel in Asia-Pacific, with product and service offerings aligned with Hilton’s brand standards. Hilton will have the exclusive authority to operate the property upon the opening of Hilton Singapore Orchard.
The hotel is also planned to undergo asset enhancement works to add new meeting facilities as well as refreshed food & beverage offerings. Upon relaunch, the hotel will feature 1,080 rooms and five restaurants and bars including an all-day dining restaurant. It will also have meeting and function spaces spanning a total of 3,765 sqm, including three ballrooms.
The REIT expects to incur a capex of about $90m in rebranding the hotel, with a projected return on investment of 10% on a stabilised basis. Its manager plans to draw down on existing loan facilities for funding the rebranding.
The planned refurbishment will begin in Q2, and is scheduled to be completed by end-2021. During the period, Mandarin Orchard Singapore will continue to be managed by Meritus Hotels & Resorts, a company under the Hospitality Division of OUE.
Mandarin Orchard Singapore is part of OUE C-REIT’s portfolio, under OUE Hospitality Sub-Trust. OUE is the master lessee of the property.