Business Times - 29 Jan 2010
Mary Chia enters hotel business
By OLIVIA HO
LIFESTYLE and wellness provider Mary Chia Holdings Ltd has entered into a joint venture to develop a heritage hotel in Singapore.
The group, together with businessman Lee Boon Leng, will operate Hotel Culture, a local company incorporated last September. Hotel Culture has purchased properties worth $20 million on Chinatown's Mosque Street for the development of the hotel.
Hotel Culture has an issued and paid-up share capital of $500,000, of which 51 per cent is held by Mary Chia and 49 per cent by Mr Lee. Mary Chia paid for its shares in cash, from proceeds of its initial public offering. To fund the $20 million purchase price for the properties, $16 million will be borrowed externally, $500,000 will be from equity, and the remaining $3.5 million will be derived from shareholders' loans.
In addition, the development cost for the hotel is estimated to be about $6 million, of which $3 million will be financed by borrowings and $3 million by shareholders' loans. Mary Chia's share of the shareholders' loans of $1.53 million will be funded through internal resources and/or borrowings.
The group said that the move will complement Mary Chia's lifestyle and wellness business. Mary Chia intends to both expand its range of offerings and broaden its asset and earning bases. Hotel Culture is also expected to provide the company, best known for its beauty and slimming services, with an alternative long-term source of revenue.
Mr Lee is the spouse of Wendy Ho, the chief executive and controlling shareholder of Mary Chia. He is also the son-in-law of the group's executive chairman and controlling shareholder Mary Chia.
Due to his experience in the food and beverage business, he will take charge of this aspect of Hotel Culture's business. Mary Chia will handle the hotel's lifestyle and wellness services.
The hotel, to be developed from restored Chinatown shophouses, will have 92 rooms, 'with retail and a lifestyle and wellness centre on its first storey'.
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