Thailand-based property company Singha Estate Public Co. Ltd. is buying six hotels and resorts across four countries from Outrigger Hotels Hawaii for approximately 7.91 billion Thai baht.
The agreement involves the Outrigger Fiji Beach Resort and the Castaway Island in Fiji, the Outrigger Laguna Phuket Beach Resort and the Outrigger Koh Samui Beach Resort in Thailand, the Outrigger Mauritius Beach Resort in Mauritius, and the Outrigger Konotta Maldives Resort in Maldives.
The deal will be carried out via an acquisition of 100% equity in a target company that Outrigger Hotels Hawaii will set up under the laws of Cayman Islands. Singha Estate will also repay loans of up to 3.16 billion baht owed by the properties, taking the investment in the deal to roughly 11.07 billion baht.
The transaction is subject to certain conditions, including a US$25 million deposit payment to Outrigger Hotels Hawaii by S Hotels and Resorts (SC) Co. Ltd., a subsidiary of Singha Estate. Additionally, the companies related to the hotels and resorts are set to sign hotel management agreements with companies related to the seller.
As of Feb. 26, US$1 was equivalent to 31.32 Thai baht.