HVS Asia Pacific Hospitality Newsletter - Week Ending 3 January 2020
Hana Financial Investment and Hotel Lotte to Acquire The Hotel at The Mark for USD175 Million
Korean-based brokerage firm, Hana Financial Investment Company Limited ("Hana"), and Korea-based hospitality company, Hotel Lotte Company Limited ("Hotel Lotte") have acquired the 189-key The Hotel at The Mark from US-based private equity firm, Stockbridge Capital Group, under a 70:30 real estate investment trust, for USD175 million. The luxury hotel is part of a 44-story F5 Tower in downtown Seattle and occupies the lower 16 floors. Subsequent to the acquisition, the hotel is set to open under the brand name of Lotte Hotel Seattle in June 2020. The acquisition is part of Hotel Lotte's effort to expand abroad to better compete with global hotel chains.
Silkari Acquires Management Rights of Oaks Lagoon in Port Douglas
Australia-based luxury accommodation brand, Silkari Hotels ("Silkari"), has acquired the management rights of 175-key Oaks Lagoon in Port Douglas for an undisclosed price. Located approximately 50-minutes north of Cairns International Airport, the high-end apartment complex is set in a tropical complex around six lagoon-style pools. Previously managed by Thailand-based Minor Hotel Group, the property also features lap pool, fitness centre, tennis courts, a restaurant and bar, spa and conference facilities. Following the acquisition, Silkari will rename the property as Silkari Lagoons. Oak Lagoon is Silkari's third accommodation asset, joining the 212-key Silkari Suites at Chatswood and Silkwood by Silkari, a 219-key and 37-townhouse complex in Pagewood, in Sydney's eastern suburbs.
Dexus and Queensland Government Agree on AUD2.1 Billion Project in Australia
The Queensland government and Australia-based real estate investment trust company, Dexus, has signed a facilitation agreement on a proposed AUD2.1 billion Waterfront Brisbane concept master plan. The Waterfront Brisbane development seeks to transform Brisbane's Eagle Street Pier into a premier and leisure destination. Some key developments of the proposal plan include two premium office and mixed-use towers
on the Eagle Street Pier site, as well as riverfront restaurants, casual dining places and retail units. The development will also feature a revitalised public realm which measures approximately 7,900 square metres of open space. Wharf facilities supporting commercial and river tourism operations will also be upgraded to support the delivery of a new City Reach ferry terminal. Construction on the Eagle Street Pier site is expected to commence in 2022 and the first tower to be delivered in 2026.
India-based Park Hotels Files Draft Papers for INR10 billion Initial Public Offering
India-based Apeejay Surrendra Park Hotels, which operates luxury boutique hotels under 'The Park' brand in India, has filed its draft red herring prospectus ("DRHP") for an INR10 billion initial public offering ("IPO"). The IPO comprises a fresh offer of INR4 billion and an offer-for-sale ("OFS") of up to INR6 billion by its existing investors and promoters. The net proceeds of the IPO will be utilized to repay debt and for general corporate purposes. The company currently manages 22 hotels with 1,937 rooms across 15 cities in India. As per the DRHP, it has a pipeline of 1,536 rooms expected to begin operations within the next three years. The company also has a retail food and beverage business under the 'Flurys' brand, which operates 38 outlets in Kolkata, and one outlet each in Navi Mumbai and New Delhi.
Adventure Travel on the Rise in China
According to a recent report, adventure travel as a kind of burgeoning outdoor tourism has gained increasing popularity among Chinese people who enjoys unique, fresh and exciting experience. As Chinese tourists become wealthier and more experienced, they show a growing desire to explore the world and try more adventurous activities such as climbing, diving, caving, sailing, paragliding, cycling and hiking. Estimated data from market consulting firm, Allied Market Research, showed that the global adventure tourism market was valued at USD586 billion in 2018 and is projected to reach around USD1.63 trillion in 2026. Chinese travellers are playing an increasingly important role in the global adventure tourism economy. According to China Adventure Association, there are 130 million to 170 million Chinese people participating in outdoor adventures, with annual growth of around 15%.
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