CDL to Sell Copthorne Orchid Hotel & Resort Penang for RM75 Million

Singapore-based City Developments Limited ("CDL") has announced that it plans to divest Copthorne Orchid Hotel & Resort Penang in Malaysia for approximately RM75 million. This sale and purchase agreement was entered into by CDL's wholly-owned subsidiary, Millennium & Copthorne Hotels Limited ("M&C") and the property will be acquired by Malaysia-based Ivory Properties Group Berhad ("Ivory"). Ivory is then expected to gain 318 rooms, in addition to the freehold land that the hotel sits on. CDL has also released a press statement, emphasizing that this divestment is in line with their group strategy to extract value from its non-core hotel assets and streamline the portfolio. This transaction is projected to lead to a pre-tax gain of SGD9.2 million. Moreover, with this disposal being the group's third asset disposal in 2020; their combined sales value is now worth SGD104.8 million, with pre-tax divestment gains for CDL amounting to SGD50.3 million. This string of disposals comes along with CDL stating the value of their properties are now "significantly higher than their acquisition cost". M&C is also expected to complete another one to two disposals up till 2022. Presently, M&C's portfolio comprises a total inventory of more than 40,000 rooms and operations across 29 countries.

Park Hotel Group and Apricot Capital Jointly Acquires Kyoto Boutique Hotel in Japan

A joint venture between Singapore-based Park Hotel Group ("PHG") and Apricot Capital has completed the cross-border transaction to acquire a newly built boutique hotel in Kyoto from Angelo Gordon and Mizuho Real Estate Management, at an undisclosed sum. Situated in the heart of Japan's cultural capital, the 114-key property has a gross leasable area of 3,276 square metres and will be branded as Park Hotel Kyoto. This represents PHG's first Park Hotel brand and expansion in Japan, and its second property after 296-key Grand Park Otaru in Hokkaido. Slated to open in December 2020, the property offers 112 guestrooms, two suites, a restaurant and bar, and a fitness room. This deal diversifies the domestic-dominated hotel market in Japan, providing differentiated offerings for increasing numbers of international visitors to Kyoto. Notably, the deal was successfully completed after the onset of COVID-19, with key inspections being completed virtually, a first for Asian hotel transactions. It also signals the continued interest by international investors for hotel opportunities in Japan.

Universal Studios Japan to Open Nintendo Park in February 2021

Universal Studios Japan ("USJ") will be opening its USD580 million Super Nintendo World, on 4 February 2021 after delays due to the covid pandemic. Built on the existing USJ theme park, the attraction will feature Nintendo's legendary worlds, characters and adventures. Guests will be able to step into the immersive world of their favourite Nintendo games. One of the main attractions will feature a Mario Kart ride inside Bowser's Castle, where visitors can collect virtual coins and items through a smart-phone linked wristband, just like in the popular Super Mario game. Augmented reality headsets will also be used on certain rides and visitors will be able to interact with park features through a Nintendo Switch console. USJ is currently operating at half capacity to curb the virus as Japan grapples with fresh outbreaks in Osaka, where the theme park is located at. This attraction is part of Nintendo's efforts to broaden its franchises beyond console players and promote its merchandises to new users.

Luna Park Sydney To Invest AUD30 Million in Major Upgrades and Nine New Rides

On 24 November 2020, Luna Park Sydney announced an AUD30 million investment plan, which aims to rejuvenate the 85-year-old park into a modern, world-class amusement venue. This investment seeks to improve park facilities and upgrade the existing attractions while maintaining its emblematic heritage. Nine new state-of-the-art rides would be introduced, including the Big Dipper, which will be the world's first inline seating launch roller coaster. The Minister for Jobs, Investment, Tourism and Western Sydney, Stuart Ayres, commented that this investment would continually attract more visitors towards the New South Wales ("NSW")
and aid in the state's post-pandemic economic recovery, through job creation and economic stimulation. Mr Ayres further added that this investment is a sign of confidence in NSW and urges other tourism firms to utilise the opportune low-peak period to reinvest into their products. Luna Park Sydney will close for its transformation on 27 January 2021 and is scheduled for its reopening in mid-June.

About HVS

HVS is the world's leading consulting and valuation services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. Established in 1980, the company performs more than 4,500 assignments per year for virtually every major industry participant. HVS principals are regarded as the leading professionals in their respective regions of the globe. Through a worldwide network of over 50 offices staffed by 300 experienced industry professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. For further information regarding our expertise and specifics about our services, please visit www.hvs.com.