MCK Acquires The Mayfair for NZD31.9 Million in Christchurch, New Zealand

Millennium & Copthorne Hotels New Zealand Limited (“MCK”), a subsidiary of Singapore-based City Developments Limited, is acquiring The Mayfair, a 67-key hotel in Christchurch, New Zealand, from New Zealand-based Mayfair Luxury Hotels Limited and the Stapley family for NZD31.9 million. This translates to approximately NZD476,000 per key and represents a new record on a price per-key basis for a hotel with more than 50 rooms in Christchurch. Located on Victoria Street, this freehold property is within walking distance of Canterbury Museum and Hagley Park. Completed and opened in July 2022, the hotel offers conference and meeting facilities, a cocktail bar, and a café. The property will transition to the Millennium & Copthorne Hotels brand in the months following the acquisition. 

The Adelphi Hotel on Flinders Lane Sold for AUD19 Million in Melbourne, Australia

The 34-key Adelphi Hotel on Flinders Lane has been acquired by an Australia-based hotel investor Mazen Tabet for a reported AUD19 million, translating to a per-key value of approximately AUD558,800. In May last year, the property was acquired for AUD25 million by the Australia-based hospitality group, Virtical, which was placed into liquidation last week. The property is centrally located in Melbourne’s city business district area, roughly five minutes from the Flinders Street train station on foot. The property features a rooftop swimming pool, meeting and events spaces, and a cocktail bar. Vacant possession of hotel management was offered as part of the sale, and it was announced that the hotel will be operated by Australia-based hotel management company, 1834 Hotels. 

CLAS Divests Somerset Olympic Tower Tianjin in China

Singapore-based CapitaLand Ascott Trust (“CLAS”) has entered into an agreement to sell its 185-key Somerset Olympic Tower Tianjin property in China to an unrelated third party for an undisclosed sum. This 30-storey mixed-use development, which includes a three-storey retail podium, opened in 1998 and has 38 years remaining on its leasehold. Located in the Heping District, within walking distance of Tianjin’s Central Business District, the property offers amenities such as an indoor swimming pool and gym. This divestment aligns with CLAS’s ongoing portfolio optimization strategy as it reallocates capital toward growth opportunities and new markets. As of 30 June 2024, CLAS holds an asset value of SGD8.5 billion. 

Joint Venture between Ascott China and Jin Jiang China

The Ascott Limited (“Ascott”), a lodging business unit fully owned by Singapore-based CapitaLand Investment, is forming a 50:50 joint venture with Jin Jiang Hotels (China Region) (“Jin Jiang China”), a subsidiary of China-based Jin Jiang International (Holdings) Co., Ltd., to expand their presence in China. This partnership aims to drive the asset-light expansion of both companies’ brands in China - Ascott’s Quest and Jin Jiang China’s TULIP LODJ. Primarily leveraging a franchise model, the joint venture will support the rapid growth of these brands to meet China’s rising demand for apartment hotels in the upscale and upper midscale segments. Initially, the joint venture will manage two TULIP LODJ properties in Wuhan and a pipeline property in Shenzhen, totaling about 600 units. Plans are also underway to broaden the reach of the TULIP LODJ brand and introduce Quest to the Chinese market.

 New Mixed-Use Development with Co-Living Units to be Launched in Singapore by 2029

Singapore-based City Developments Limited (“CDL”) has announced the launch of Union Square, a new mixed-use development on Havelock Road. Located at the fringe of the Central Business District and heart of the Singapore River precinct, Union Square is within walking distance to three train stations – Clarke Quay, Chinatown and Fort Canning. The project will be built on the former sites of Central Mall and Central Square and is expected to be completed by 2029. The development will feature 134 co-living units, a 366 luxury residential units, an office tower and commercial spaces. The co-living units will operate under a hotel license, allowing for short-term stays of less than seven days.

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