Frasers Property Limited, one of Asia’s leading real estate and investment groups, has announced its intention to fully acquire the remaining shares of Frasers Hospitality Trust (FHT) from minority stakeholders. The proposed transaction, valued at approximately €1.1 billion, could become one of the largest hospitality real estate deals of 2025. The move marks a strategic effort by Frasers Property to consolidate its hotel assets and streamline operations under a single ownership structure.
Deal Overview
Frasers Property already holds more than 60% of FHT and is now offering to purchase the remaining units from minority shareholders at a premium over the average market price in recent months. If successful, the deal would lead to the full privatization and delisting of FHT from the Singapore Exchange (SGX).
According to the company, the buyout would simplify its corporate structure, improve operational efficiency, and enhance its ability to manage a portfolio of high-profile hospitality assets located in Singapore, the UK, Australia, Japan, and Malaysia.
Transaction Structure and Financing
The offer is being made through a wholly owned subsidiary, Frasers Property HoldCo. The total consideration proposed to minority unitholders amounts to approximately SGD 1.6 billion, or around €1.1 billion. The transaction will be financed through a combination of internal capital and a syndicated loan facility provided by major international banks.
Frasers Property has already secured preliminary support from key lenders and received favorable indications from institutional investors.
Strategic Objectives
The main goal of the transaction is to eliminate the structural limitations of the current REIT-trust model and bring direct control of the hospitality portfolio under Frasers Property. Currently, FHT operates as a listed trust with independent governance and regulatory constraints, which the company says hinders agility and long-term asset optimization.
Following the buyout, Frasers will have direct authority over iconic properties such as InterContinental Singapore, Fraser Suites Sydney, ANA Crowne Plaza Kobe, and The Westin Kuala Lumpur. This will enable faster execution of asset enhancement initiatives, redevelopment, or disposals without third-party approvals.
Asset Portfolio
As of the announcement, FHT’s portfolio includes 14 hotels and serviced residences with a total valuation of approximately €2 billion. The assets span key gateway cities across five countries, including:
- InterContinental Singapore
- Fraser Suites Sydney
- The Westin Kuala Lumpur
- ANA Crowne Plaza Kobe
- Park International Hotel London
These properties represent a well-diversified hospitality portfolio with exposure to business travel, tourism, and long-stay accommodation segments.
Market Response and Minority Sentiment
The market reaction has been mixed. Some investors welcomed the chance to cash out amid market volatility, while others voiced concern about the fairness of the offered premium, which is only moderately above FHT’s trading average.
Industry insiders suggest that some institutional unitholders may push for an improved offer or additional safeguards. A general meeting of unitholders is expected in the second half of 2025 to vote on the proposal.
Implications for the Hospitality Sector
The transaction comes at a time when the global hospitality industry is recovering from the pandemic-induced downturn. Occupancy rates and revenue per available room (RevPAR) are rising across the Asia-Pacific region, and investors are increasingly targeting hotel assets for their long-term growth potential.
Analysts from CBRE and JLL note that consolidations like this are becoming more common as property groups seek greater control, flexibility, and margin growth in a post-COVID environment.
Benefits for Frasers Property
Once completed, the transaction will allow Frasers Property to:
- Consolidate FHT’s performance into its group-level financials
- Streamline tax and capital management strategies
- Respond more quickly to market opportunities
- Reduce administrative and regulatory costs
- Align brand and operational strategies across the hospitality division
The company also expects to unlock synergies between its hospitality and commercial real estate holdings, especially in mixed-use developments where hotel and office assets are co-located.
Regulatory and Timeline Considerations
The deal is subject to approval by minority unitholders and regulatory bodies. Frasers expects the voting process to conclude in the second half of 2025, with completion of the transaction likely by year-end, assuming all approvals are secured.
Upon completion, FHT will be delisted from the SGX, and its assets and liabilities will be fully absorbed into Frasers Property’s balance sheet.
Conclusion
Frasers Property’s €1.1 billion proposal to acquire the remaining FHT shares represents a strategic shift toward direct, centralized control over its hospitality portfolio. The deal positions the group for stronger operational flexibility, improved profitability, and unified asset management across key international markets.
Amid a broader recovery in the travel and tourism sectors, this consolidation reflects growing investor confidence in hospitality real estate. If completed, the transaction will not only enhance Frasers’ competitive standing but could also set a precedent for similar REIT buyouts across Asia.
