Axteria, Far East Hospitality Management sign LOI to manage the former’s hotel, serviced suites

KUALA LUMPUR (Oct 15): Axteria Group Bhd, which was formerly known as Acoustech Bhd, announced on Friday it has signed a non-binding letter of intent with Far East Hospitality Management (S) Pte Ltd (FEH) expressing its intent in managing the hotel and serviced suites located in Kota Laksamana, Melaka which are currently being developed by its wholly-owned subsidiaries Axteria Assets Sdn Bhd and Axteria Eco Sdn Bhd.

The two Axteria units are developing a 16-storey development building with 241 hotel rooms and a 44-storey development building with 306 serviced suites, both of which are being proposed to be managed under the FEH brands. 

In the announcement to Bursa Malaysia, Axteria said it is the intention and understanding of both parties to ensure a smooth and effective joint collaboration where FEH shall operate and provide management, brand licensing and other related services to the properties that will meet international upscale standards. 

The LOI is not expected to impact the finances of the company for the financial year ending Dec 31, 2021. 

Notably, FEH is an international premier hospitality owner and operator established in Singapore. 

“FEH operates a combined portfolio of over 16,500 rooms across 105 hotels and services residences in nine countries — Australia, Austria, Denmark, Germany, Hungary, Japan, Malaysia, New Zealand and Singapore, with more in its development pipeline. In 2020, FEH group was ranked amongst top 100 hotel companies by HotelsMag,” noted the announcement. 

FEH is a wholly-owned subsidiary of Far East Hospitality Holdings Pte Ltd, a 70:30 joint venture between Far East Orchard Ltd and The Straits Trading Company Ltd, both of which are listed on the mainboard of Singapore Exchange. 

At the close on Friday, Axeteria was unchanged at 24 sen, valuing the company at RM99.06 million. 

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