More on the
sale
Raffles Hotel will remain a
S'pore icon
Jennie Chua to stay on as chairman; US buyers say hotel's legacy
will be protected
By Maria Almenoar
July 19, 2005
The Straits Times
OWNERSHIP of one of Singapore's most famous landmarks may be
changing hands, but the legacy of Raffles Hotel will remain safe in
the hands of Ms Jennie Chua, who has agreed to stay on as its
chairman.
Ms Chua, who is president and chief executive of Raffles Holdings,
started as the general manager of the hotel in June 1990.
'The fact remains that it will always be a Singapore icon, because
it's here and because it will be managed by the same people who are
right now managing it,' she said yesterday.
Mr Thomas J. Barrack, chief executive officer of Raffles'
purchasers Colony Capital, also said the American group deeply
'respects the historical significance of the Raffles Hotel,
Singapore' and considers it their 'responsibility to protect that
legacy'.
Raffles Holdings' parent CapitaLand's president and chief executive
officer Liew Mun Leong added his own reassurance.
'When the Americans sold Rockefeller Centre to the Japanese,
Mitsubishi... there were also sentiments about it. And when the
British sold Harrods to an Egyptian buyer, did anything happen to
it? In fact, it's still very much a British institution.
'Those two institutions did not change. Ownership does not change
the legacy of the buildings.'
Raffles Hotel, in Beach Road, is one of the 41 luxury hotels owned
or managed by Raffles Holdings that Colony, a United States
real-estate investment company, has bought for about US$1 billion
(S$1.7 billion).
The purchase, which includes 15 Raffles and 26 Swissotel hotels and
resorts, is expected to be completed by the end of the year.
Since 1887, Raffles Hotel has played host to numerous celebrities,
including Elizabeth Taylor, Grace Kelly and Orson Welles.
The hotel has also served as a source of inspiration for writers
like Somerset Maugham, author of The Casuarina Tree, who would sit
under the frangipani trees in the morning, turning the society
gossip he overheard into fiction.
Since 1995, it has been one of 54 buildings in Singapore gazetted
as a monument, which means little can be done to change the
architectural properties or even colour of the buildings without
the approval of the Preservation of Monuments Board. Its name -
Raffles Hotel - must also be retained.
The board, however, has no jurisdiction over any change in the
usage of the building.
And that concerns heritage-watchers like Dr Kevin Tan, president of
the Singapore Heritage Society. 'The concern isn't if it will be
kept intact architecturally, but more if it will be used for other
purposes, for example, as a shopping centre or a casino,' he
said.
In a statement yesterday, the board pointed out that Raffles Hotel
is not the first national monument to be owned by foreign companies
or individuals.
The old Thong Chai Medical Hall in Eu Tong Sen Street and MacDonald
House in Orchard Road are also owned by foreigners and 'these
continue to be preserved and maintained according to the
guidelines'.
While the board has no say on how the building is used, owners have
to run it past other government 'gatekeepers' like the Urban
Redevelopment Authority and the Ministry of National
Development.
As for retaining the interior decor, Raffles Holdings will continue
to own a range of assets, including antiques and memorabilia, and
has agreed to loan them to Colony for display at the hotel.
Real estate experts also believe that there is no cause for
concern, as the new owners are unlikely to change a 'winning
formula'.
Said Assistant Professor Muhammad Faishal Ibrahim from the National
University of Singapore's department of real estate: 'A significant
part of the value of the building comes from its role as a hotel
and that is likely to be the reason the investors bought it. It's
not a rational choice to change it.'
[email protected]
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WHY SELL AN ICON?
'My sentiments are very simple... I think the change of ownership
of Raffles Hotel, doesn't change it at all. It still has its own
history, own legacy, it'll still be in Beach Road. And the new
owner, paying so much for it, will definitely bring it up...
Singapore is an open economy and if people want to buy something at
a good price, why not?'
MR LIEW MUN LEONG, CapitaLand's president and chief executive
DOESN'T MATTER WHO OWNS IT
'When the Americans sold Rockefeller Centre to the Japanese...
there were also sentiments about it. And when the British sold
Harrods to an Egyptian buyer, did anything happen to it? In fact,
it's still very much a British institution. Those two institutions
did not change. Ownership does not change the legacy of the
buildings.'
-- MR LIEW
NO DIFFERENCE TO GUESTS AND STAFF
'Some guests don't even care who the owners are. They care only
about the staff, and the hotel that they come to Singapore to see,
to visit, and to stay in... Whether it's Colony owning it, or
somebody else, it's something that is very far removed from the
guests.
And the staff, as long as they continue under the same
management... and the same general manager and the same brand,
they're also equally comfortable.'
-- MS JENNIE CHUA, chief executive of Raffles Holdings
RAFFLES LEGACY WILL BE PROTECTED
'We deeply respect the historical significance of the Raffles Hotel
and we consider it our responsibility to protect that legacy. We
are delighted Jennie Chua has agreed to remain as chairman of the
Raffles Hotel Singapore to provide continuity and support our
efforts.'
-- MR THOMAS J. BARRACK, chairman and CEO of Colony
Capital
Isn't it odd that our GLCs have no qualms about selling our
national assets, especially when they get tremendous value for it?
We seemed to have forsaken national heritage in favour of
monetary profit.
As there wasn't any open bids, we can safely assume that raffles
hotel wasn't saddled in debt. Given the lack of reasons, one can
only wonder what raffles holdings or rather CapitalLand was
thinking when they even considered this offer. Then again a 1
billion offer equates to good business and was probably too
tempting to resist.
Appointing (or re-appointing) Ms Jeanie Chua seems only iconic
rather than strategic as, despite what is reported on
non-jurisdiction, her own powers are likely to be limited by the
subsequent Colony Board, indicating that she serves only as
'interim' chairman to supervise the transition. I don't see how she
plans to preserve the legacy that is Raffles and all that talk abt
patrons who 'don't care who the hotel owners are' simply
marginalise the issue at hand - that all our national assets are
expendable so long as it comes at a good price.
CapitalLand probably needs the funding, possibly to seed other
projects and aquisitions as part of their overall company
direction. Sadly, it seems money has taken precedence over basic
pride and heritage.
We have relinquished Westin Stamford to Swissotel. With the sale of
Raffles hotel, one can only surmise...who's next?
