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Located at 51, Pirie Street, within the central business district, the 1,283 sq m freehold site is set to be developed into a 27-storey hotel. Featuring 295 rooms, the hotel is slated to open in early 2023. Image source: travelmonitor.com.au
Chip Eng Seng Corp has revealed plans to build a Hyatt Regency hotel on the plot of land in Adelaide that it acquired from an associate of its chief executive, reported The Business Times.
Located at 51, Pirie Street, within the central business district, the 1,283 sq m freehold site is set to be developed into a 27-storey hotel. Featuring 295 rooms, the hotel is slated to open in early 2023.
The mainboard-listed developer has said that it has already secured planning approval for the hotel project.
Chip Eng Seng does not expect the agreements signed with Hyatt entities over the management of the hotel to significantly affect its net tangible assets and earnings per share for the year ending 31 December 2019.
The developer acquired the site in July 2018 for A$14.5 million (S$14.6 million) from the LGB Group, a firm in which CEO Raymond Chia Lee Meng holds a 40 percent interest.
Chip Eng Seng also owns another Adelaide hospitality property – the adjoined Mercure & Ibis Styles Grosvenor, which it purchased in March 2018.
The company on 1 August reported a net profit of $3.99 million for Q2 2019, down from $12.2 million over the same period last year.
This comes as group turnover dropped 7.2 percent to $237.4 million, with hospitality being the only segment to register revenue growth.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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