Mary Chia

[millionairemind]

Diworseification?

Published January 29, 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'.

[Aspellian]

Either its diworsification or they realised that Spore market is really too small for beauty parlours... so they are trying to open new revenue streams which may or may not succeed.

there are some synergies between hotel and wellness... quite alot of tourists when they go overseas are willing to spend thousands on spa packages.

but i more apprehensive they partnered with son-in-law instead of well known niche hotelier.

its a make or break for the group - an albatross around their neck until it grows big enough to fly on its own (if there are sufficient cashflows to feed the interest expenses of the group). . . .

[millionairemind]

Its seems the case of using the "public's money" to take a gamble.

Winner takes all. If they lose, the shareholders will pay for it.

[Musicwhiz]

Its seems the case of using the "public's money" to take a gamble.

Winner takes all. If they lose, the shareholders will pay for it.

Sounds like the case most of the time for IPOs......

[Aspellian]

Its seems the case of using the "public's money" to take a gamble.

Winner takes all. If they lose, the shareholders will pay for it.

Sounds like the case most of the time for IPOs......

well, in a way you are right. its a fine line between biz expansion and gambling public money. that is why shareholders willing to participate in ventures like South Sea Sea Expeditions or Tulip ventures.

It must be all part of the plan to do hotel biz via IPO route (since its announced within a year of listing).

[financecaptain]

haha ... another great con job in the good name of capital market.
Another term for investor is sucker.
Look at the bright side. The suckers may still have still 50/50% (ok maybe 20/80% or 30/70%) chance of success. There is still some good upside of at least 2X money if the bet is lucky. Do you feel lucky ?
Minibond suckers have no liqudity, no idea what they bought, paid fees for no service and worse, volunteered to take medium term open credit position (wide open) on behalf of the investment banks in return only for a small fee every year.

[kennynah]

Mary Chia enters hotel business

maybe hotel rooms more comfy... alot more services can be rendered in privacy...

[learn2win]

Mary Chia enters hotel business


maybe hotel rooms more comfy... alot more services can be rendered in privacy...

So thats the synergies between Hotel and Spas...

[Musicwhiz]

So thats the synergies between Hotel and Spas...

Hehe, "synergies" or "sinner-gies"?

[millionairemind]

So thats the synergies between Hotel and Spas...

Hehe, "synergies" or "sinner-gies"?

haha.... I am sure alot of massage parlors in Chinatown (dressed up as spas) have something to say about that