Australia central to Far East Hospitality growth plans

Australia central to Far East Hospitality growth plans
By admin


Far East Hospitality has underlined the “huge” potential of Australia’s hotel sector as it outlined the rationale behind significant investments in the market over the last year which have swiftly taken its portfolio from 18 to 80.

The Singapore-based hotel firm completed its acquisition of a 50% stake in Australia’s Toga Hotels in August. Last November, it acquired Rendezvous Hospitality Group which includes nine Australian properties, three of which are now owned.

Chief executive Arthur Kiong told media at ITB Asia in Singapore that the deals have grown its range of brands to nine, with Toga’s Vibe, Adina, Medina, and Travelodge now under its umbrella.

“We are no longer a niche player in Singapore – our footprint extends to Oceania, Asia and up into Europe with Germany and Denmark,” he said.

Despite an abundance of opportunity in Singapore-based Far East Hospitality’s “own back yard”, Kiong explained the political and economic risk of such an investment had seen the company look instead to Australia.

“We thought Australia would be good complement because, while growth and return on investment might not be as high, it has a different economic cycle and the transparency and the language give us some confidence,” he said.

“Australia was a market we were looking at last year and we indicated that if we venture into Australia it wouldn’t be half-hearted. It has to be meaningful and done in a decisive manner.”

He highlighted significant potential for growing the number of international visitors heading to Australia with the Chinese and Indian inbound markets a particular focus, to be wooed with food along with “awareness and a product that resonates within those markets”.

Far East’s interest is firmly in the mid-market segment, with Kiong explaining that instead of focusing on price and star rating, it will tackle the “extreme diversity” of the tier by revising the way it categorises its target clientele. Instead of looking at demographics, the company is instead looking to the “psychographic” nature of its customers, grouping them into urban explorers, road warriors, cultured cosmopolitans and the trendsetters.

“Customers today are looking for something that’s elegant and relevant,” Kiong said. It will target different brands at different psychographics with the aim of having several properties in a very concentrated area to deliver economies of scale and centralise services.

Meanwhile, the JV will also see Toga manage the Australian Rendezvous properties, with Far East in talks to take Toga brands into Asia.

Latest News

  • Sustainability
  • Wholesalers

The Intrepid Foundation launches appeal to support Northern Vietnamese communities following Typhoon Yagi

Intrepid Travel has launched an emergency appeal through its not-for-profit, The Intrepid Foundation, to support impacted communities in Northern Vietnam following Typhoon Yagi, which made landfall on 7 September, 2024. All funds raised through the appeal will go directly to grassroots organisation Blue Dragon Children’s Foundation, to provide immediate relief to thousands without shelter, food […]

  • Aviation

Philippine Airlines and VietJet look to community connection near Western Sydney Airport

Both Philippine Airlines and VietJet will explore services from Western Sydney Airport with the airport’s proximity to the Filipino and Vietnamese diaspora in Sydney potentially beneficial to both carriers. Philippine Airlines VP revenue management and commercial planning Alex Featherstone, speaking at the CAPA Airline Leader Summit Australia Pacific, said the carrier would “explore” the potential […]

  • Tourism

Australian Cycle Tours adds new cycle trip to the Murray to the Mountains Rail Trail

Australian Cycle Tours has added a new, extended cycle trip that includes all sections of the popular Murray to the Mountains Rail Trail. The new trip commences in Beechworth with the first two days cycling with a transfer back to Beechworth, before continuing to Myrtleford and Bright, with a cycle on the newest sections of […]

  • Events
  • News

Anangu Communities Foundation raises $75,000 at its third annual Sydney fundraiser

Generous supporters gathered at the Sofitel Sydney Darling Harbour for the third annual Anangu Communities Foundation Sydney fundraiser to help raise $75,000. Voyages Indigenous Tourism Australia administers the Foundation which so far has funded over $3 million in projects to support Anangu communities of Central Australia with a focus on building community capacity in healthcare, […]

  • News
  • Travel Agents

‘Virtuoso on Tour’ photos: Virtuoso showcases its best to agent base

Virtuoso hosted its second annual Virtuoso On Tour,  a destinations event at the ICC in Sydney showcasing tour operators, tourism boards and more to its agent family. The event is designed for travel agency members in Australia and New Zealand to network with Virtuoso partners across the globe. It housed six destination-themed pavilions (Australia & […]

  • Destinations
  • Tourism

The NT tops list of hidden gem attractions out of Aussie states

As Australia steps into spring with temperatures set to rise above average, new research has revealed the states with the most must-see hidden gem attractions with the great outdoors proving a winner! The study, conducted by travel and luggage experts at Bounce, used Tripadvisor and search data to uncover Australia’s most treasured destinations. The Northern […]

  • Health & Wellness
  • Hotels

Fusion Hotel Group celebrates World Wellness Weekend

Vietnam’s wellness-inspired Fusion Hotel Group is celebrating World Wellness Weekend from 20-22 September with yoga and other healthy living activities. Fusion Hotel Group has introduced a series of events and activities for guests at five of its luxury beachfront resorts in Vietnam to World Wellness Weekend. The exclusive offers include yoga, meditation, onsen baths, Zumba, […]

  • Hotels

InterContinental Wellington unveils new Health Club and Classic Rooms makeover

InterContinental Wellington has announced the completion of its newly revamped Health Club and a stylish makeover of its Classic Rooms. Bringing a new level of luxury to its 79 Classic Rooms, including eight accessible rooms, the hotel has meticulously re-styled these spaces in collaboration with Y-6, an acclaimed Interior Architecture and Design studio based in […]