SINGAPORE – Datapulse Technology’s audit committee has deemed that the hotel management agreements entered into with Travelodge Hotels Asia (TLA) are on normal commercial terms and are not prejudicial to the interests of the company and its minority shareholders.
The agreements related to the appointment of TLA to manage Bay Hotel Singapore and the Holiday Inn Express Euljiro in Seoul, both of which Datapulse has minority stakes in. TLA is wholly owned by Catalist-listed ICP Group. Datapulse chairman Aw Cheok Huat is also ICP’s chairman and controlling shareholder.
In arriving at its conclusion, the audit committee engaged an independent financial adviser and considered major terms including contractual period, base fees, incentive fees (which are based on the gross operating profit of the respective hotel), sales, marketing, reservation and centralised service fees, operator restrictions, and the terms of termination under the agreements.
Datapulse said in April that it would acquire a 15 per cent stake in Holiday Inn Express Euljiro for 8.6 billion won (S$9.8 million). It said in July that it will also buy a 5 per cent stake in Bay Hotel Singapore for S$12.1 million.
Datapulse declared earlier this month that in view of his shareholding and directorship in ICP, Mr Aw currently has an interest in the Bay Hotel investment, by virtue of the entry into the conditional hospitality-related agreements for TLA to manage Bay Hotel. The agreements are conditional upon the successful completion of the Bay Hotel investment.
Previously, he had no interest in the investment.
Mr Aw holds an indirect 10 per cent stake in Datapulse.