Asia Pacific Hospitality Newsletter - Week Ending 18 February 2022
Singapore’s GIC Confirms Acquisition of Portfolio for Properties from Seibu Holdings for JPY 150 Billion (USD 1.3 billion)
Japan-based Seibu Holdings Inc.("JSH") has agreed to sell 15 Prince hotels and 16 additional leisure properties to Singapore-based Government of Singapore Investment Corporation (“GIC”) for JPY 150 billion. This gives GIC a unique opportunity to acquire high-quality assets in prime Japanese locations. The sale includes about 40 % of the 76 hotels and leisure facilities owned by Prince Hotels. Including the 1299-key Naeba Ski Resort in Niigata Prefecture, northwest of Tokyo, and Ryuo Golf Course in Shiga Prefecture, central Japan. The expected profit is estimated to be JPY 80 billion from the deal. GIC's commitment follows a trend of institutional investors snapping up hotel assets in Asia to expect tourism to rebound post-pandemic.
New Airport to Open in the Maldives' Lhaviyani Atoll in February
The accessibility to resorts in the Maldives' Lhaviyani Atoll will dramatically improve after the opening of Madivaru Airport. Until now, the Lhaviyani Atoll has only been served by seaplanes with a limited number of daylight flights. Madivaru Airport will be a 25-minute flight from Male's Velana International Airport which is the main international airport for French Polynesia. Upon opening, the proposed flight schedule will include three daily flights with Velana International Airport and will connect with international flights to minimise waiting times for travellers. The airport will be managed by the National Airline Maldivian("NAM"). The airport project includes a construction of a 1200 metre runway and a passenger terminal as well as land reclamation from Madivaru’s lagoon.
Resorts World Sentosa to Receive a SGD400 million upgrade
Singapore-based Genting Singapore Limited (“GS”) plans to refurbish three of its hotels – Hard Rock Hotel Singapore, Hotel Michael, Festive Hotel and the convention centre located in Resorts World Sentosa (“RWS”). The hotels are expected to undergo renovation and refurbishment works in phases starting from the second quarter of 2022 through 2023. Festive Hotel will be transformed into a business-leisure and work-vacation hotel. Combined the hotels will have more than 1,200 keys. Together with other refurbishments works, these refurbishments are part of a SGD400 million investment GS plans to inject into the property in 2022. Other attractions being expanded are the SEA Aquarium which will be transformed into the Singapore Oceanarium as well as a newly built Minion Land. It is hoped that these RWS 2.0 developments will help position RWS to lead the recovery in Singapore’s tourism as boarders gradually open.
EHT has Sold Hilton Houston Galleria for USD14 Million
Singapore-based Eagle Hospitality Trust (“EHT”) has sold Hilton Houston Galleria (“HHG”) for USD14 million. The 292-key property is located in the Galleria Shopping and Business District, five miles from Texa’s largest mall The Galleria and ten miles from Houston and George R. Brown Convention Centre. The property features one restaurant, an outdoor pool with sundeck, a fitness centre, a parking lot, and 11 meeting rooms that span over 1,200 square metres. EHT was listed on Singapore’s mainboard in 2019 and previously owned 18 hotel properties across the United States.
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