Landmark WA hotel Hyatt Regency Perth will cease operations next month after 36 years in operation with its Singapore-based owner Tuan Sing Holdings Limited seeking to embark on a new hospitality direction.
Tuan Sing Holdings announced on Monday that the existing management agreement with Hyatt Hotels will be terminated on August 31, 2024, at which point the property will cease to operate as a hotel.
The hotel, located at 99 Adelaide Terrace, will be revamped and rebranded under a hospitality offering that is yet to be announced, marking the first step in a new long-term strategy to expand and enhance the Tuan Sing Holdings’ hospitality assets in the Asia Pacific region.
A representative for Tuan Sing Holdings told HM the new mixed-use hospitality offering, which will include short and long stay options, “aims to deliver a product more suited to the local Perth market, seeking to enhance the use of the existing site”.
The property is expected to remain open during this process with a representative for Tuan Sing saying all guests and partners who have bookings with the Hyatt Regency Perth in 2024 will be honoured, and can expect “the highest quality service they have come to expect from staying with them”.
Hyatt says care of hotel staff its top priority
A spokesperson for Hyatt confirmed the decision, telling HM that supporting the hotel team is of the utmost importance.
“From 11:59pm on August 31, 2024, Hyatt Regency Perth will no longer operate as a hotel nor be affiliated with Hyatt,” the spokesperson said.
“This follows the termination of the hotel management agreement between Hyatt and the hotel’s owner, Tuan Sing Holdings Limited. All decisions after this will be made by the owning company or its appointed representative.
“Our foremost priority is to care for and support our associates, guests and customers as well as partners affected by the closure of the hotel in a transparent and empathetic manner to help them navigate this challenging period.
“Hyatt is honoured to have been the chosen brand for the iconic Hyatt Regency Perth for the past 36 years, serving as one of the city’s first international hotels and being an integral part of the local Perth community.
“We are deeply grateful to our associates, guests, customers, business partners, the local government and community for their loyal support over the years.”
The Australian Hotels Association (WA) paid tribute to the long legacy of Hyatt Regency Perth which played host to many high-profile guests over the decades.
“The Hyatt Regency Perth was one of the first major global hotel brands to operate in Perth, commencing in 1988, and has made a valuable contribution to the social fabric of the city and the community for many decades,” said AHA (WA) CEO, Bradley Woods.
“The hotel has hosted Australian and world leaders, rockstars and corporate titans, as well as being the setting for innumerable wedding proposals, celebratory receptions and birthday parties.”
Woods said the decision by Tuan Sing Holdings Ltd marks “the end of an era” and a significant milestone in Perth’s hotel industry.
“The announcement comes at a time when Perth hotels are experiencing their highest occupancy rates of any major city in Australia,” said Woods.
“For the month of May, Perth hotels had an occupancy rate of 77.3%, the highest of all Australia’s capital cities. Perth was also 11% higher for the same period in 2023, with an occupancy rate of 69.4%.
“The complex where the Hyatt Regency Perth is located has been undergoing redevelopment for some time and we look forward to seeing the next exciting chapter for the complex.
AHA (WA) said it will be working with Hyatt Regency Perth to support hotel staff in the transition and new opportunities that lie ahead.
Integrated developments a focus for Tuan Sing Holdings Ltd
Tuan Sing Holdings Ltd’s interests centre mainly around real estate development, real estate investment and hospitality, and since marking its 50th anniversary in 2019, the group has embarked on an ambitious transformation plan “to reposition itself from a niche developer to a major regional player with a presence in commercial, residential and hospitality properties in various key Asian cities across Singapore, China, Indonesia and Australia”.
Its current hospitality portfolio includes the Grand Hyatt Melbourne and recently acquired mixed-use Singapore property, Fraser Residence River Promenade, which features serviced apartment units and hospitality offerings.
The completion of an integrated township, Opus Bay in Batam, Indonesia, will further add to the company’s hospitality arm.
The group said it intends to participate in further large-scale integrated developments and townships as it enters its next phase of growth.