Singapore-based property group Far East Orchard and its US joint venture partner Real Hospitality Group (RHG) have decided to end their hotel development partnership in China due to an inability to source opportunities.
Far East and RHG formed the joint venture in 2022 hoping to capture a slice of China’s booming domestic tourism market.
RHG, founded in 2010 and acquired by Denver-based Stonebridge Companies in 2024, operates more than 160 hotels in the US. In 2020 RHG established a subsidiary RHG Asia which became the first foreign-owned entity to gain approval for third party hotel management in China.
In a stock market filing, Far East said while the joint venture partners had intended to incorporate a joint venture company in Hong Kong and an operating entity in China to manage the Chinese business, they had not been able to source for suitable opportunities that fit their objectives following the recovery of the tourism industry in the PRC post-COVID-19.
Far East said it continued to actively look for strategic opportunities in other jurisdictions to expand its hospitality business.
In February, the group’s hospitality arm, Far East Hospitality Trust, entered the Japanese market with the purchase of the 319-room Sheraton Nagoya for JPY6bn (€37m), following the expansion of its mandate to invest overseas.
To read the latest IPE Real Assets magazine click here.
