RB RB Capital are RB Capital Hotels,
RB Capital is a privately-owned company founded by Kishin RK in 2006. The Singapore-based company’s core function is to acquire and develop properties under the hospitality, commercial and medical sectors in Asia Pacific. It has progressed from commercial markets such as offices and retail spaces and penetrated into the hotel and medical areas.
2. Company Approach and Focus
Unlike general investment firms, RB Capital deviates in its investment approach. The focal point of the company’s investments is finding opportunities in areas where its competitors steer away from due to illiquidity, complexity or size. RB Capital strives to increase land valuation through repositioning, restructuring or development of properties as well as providing thorough support to the management.
The owner believes in a hands-on approach when it comes to developing properties and draws inspirations from personal travel experiences. Aside from solely putting money into expending the property, the owner is invested in every aspect of the project; from the design, to the materials and furniture used, to the business profiles of vendors in the retail spaces (Vellu, 2017). This indicates that the owner is interested in the business and will be open to a collaborative relationship. Additionally, the owner will be inclined to provide the necessary financial and capital resources in order for the hotel to grow and succeed.
The three key business drivers of RB Capital are RB Capital Hotels, RB Capital Office and RB Capital Retail. RB Capital Hotels was established in 2010 and owns three hotel properties in Singapore to date.
3. Future Plans
The company has an accomplished track record of acquiring and developing properties across the different markets over the past decade (Refer to Appendix A). Furthermore, RB Capital has future plans to integrate RB Capital’s assets with that of Royal Holdings, owned by Raj Kumar, father of Kishin RK. The portfolios of assets of both companies, when combined, will be worth $10 billion Singapore dollars by 2020 (Rashiwala, 2014).
RB Capital Hotels goal is to grow the hospitality business internationally and is looking to acquire completed hotels in Australia and Europe (Rashiwala, 2014). The company’s growing net worth, together with its stellar performance, will instill confidence and trust in operators.
4. Example of Owner and Operator
RB Capital and InterContinental Hotel Group (IHG) will be used to illustrate the business relationship between the hotel owner and operator, where RB Capital is the owner.
RB Capital’s development plan for its hospitality sector was to have a diverse portfolio. With Holiday Inn Express Clarke Quay and Park Hotel Farrer Park completing its mid-tier and upscale components respectively, RB Capital’s intention was to develop a luxury property. As part of the owner’s redevelopment plan to rejuvenate the Robertson Quay precinct, the former Gallery Hotel was redeveloped to InterContinental Singapore Robertson Quay, its luxury property, along with The Quayside, a retail arm along the riverfront.
Before IHG agrees to brand the hotel an InterContinental hotel, it will evaluate the financial standings of RB Capital as well as the its track records to assess the ability of the owner in funding and sustaining the business. IHG will also analyze the physical hotel to determine that the hotel is suitable for the brand. Finally, to ensure a long-standing business relationship, the owner and operator should align respective expectations and goals that will be mutually beneficial to both parties.
Given the years of experience in the real estate development and foresight in understanding trends ahead of general markets, RB Capital has become and will continue to be one of the most dynamic player in the business.