Colony Capital announced today that it has entered into an agreement to purchase all, of the hotel interests of Raffles Holdings Limited, comprised of 15 Raffles Hotels & Resorts and 26 Swissôtel Hotels & Resorts in 35 destinations, for approximately US$1 billion.

The transaction, which is expected to close by year end, and is subject to shareholders' approval, includes the fabled Raffles Hotel Singapore, one of the world's foremost hotel assets and the cornerstone of Singapore's hospitality industry.

"We are honored to become the custodian of one of the finest hotel chains in the world and a true national treasure of the people of Singapore," said Thomas J. Barrack, chairman and CEO of Colony Capital.   "The properties' success is clearly attributable to the dedication and professionalism of its management and staff.  Colony recognizes the need to keep talented and experienced management and employees and we look forward to working with them.  We deeply respect the historical significance of the Raffles Hotel, Singapore 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." 

"Our strategy with the business fundamentally revolves around brand positioning and extension.  Our priorities here are first and foremost to act as custodians for the Raffles brand.  Next, we are committed to the continued growth of the Raffles and Swissôtel brands over the years ahead, and support their commitment to unparalleled world class standards of product and services," said Grant L. Kelley, CEO of Colony Capital Asia. 

Colony said it plans to maintain all operations under the current flags and would look for opportunities to selectively grow the franchise, especially in Asia.  

Willkie Farr & Gallagher LLP and White and Case LLP acted as legal advisors, and CIBC World Markets was the financial advisor to Colony.