Hotel industry and travel news from around the Asia Pacific region: Choice Hotels continue expansion in Australasia with Perth signing, IHG, Perennial buys out co-owner to acquire full ownership of the Capitol Singapore and more...

Perennial to buy out its co-owner Chesham to acquire full ownership of the Capitol Singapore

Singapore-based Perennial Real Estate Holdings Limited (“Perennial”) is acquiring the remaining 50% stake in the Capitol Singapore from its co-owner Chesham Properties (“Chesham”), a Pontiac Land Group (“Pontiac”) affiliate, for S$129.6 million in cash, funded by internal resources and borrowings. The price is based on a property value of S$1.03 billion, 2.6% above the December 2017 valuation. Upon completion of the deal, Perennial will also take over Chesham’s loans, amounting to S$368.6 million, exclusive of interest, and an ancillary S$3 million to Patina Hotels & Resorts. The Capitol Singapore, a mixed-use development featuring retail, the Eden Residences Capitol, and the 157-key Patina hotel, has been in deadlock over the last few years following a disagreement. An addition to Perennial’s developments, the Capitol Singapore, when fully operational, will join the likes of CHIJMES, TripleOne Somerset, and Chinatown Point in the portfolio of Perennial’s prime investments.

Choice Hotels continue expansion in Australasia with Perth signing

Choice Hotels (“Choice”) has reached a franchise agreement with Singaporean developers, SAC Nominees (the Ng family), for the new 204-key INGOT Hotel Perth. Located near Perth Airport, INGOT Hotel Perth will represent the brand’s biggest hotel in the Asia-Pacific region and will join Choice’s upscale Ascend Hotel Collection group. The new signing, together with three other new-build hotels, including the 105-key Quality Hotel Flemington in Melbourne, the 80-key Quality Hotel Lakeside Bendigo, and the 42-key Clarion Suites Christchurch, will add 400+ rooms to Choice’s existing 11,000-key franchise network. Development of INGOT Hotel Perth by SAC Nominees has begun and the hotel is slated to open later this year.

InterContinental Hotels Group acquires 51% stake in Regent Hotels & Resorts for US$39 million

United Kingdom-based InterContinental Hotels Group (“IHG”) has announced that it will acquire a 51% stake in Regent Hotels & Resorts (“Regent”) from Taiwan-based Formosa International Hotels Corporation (“Formosa”) for US$39 million in cash with an option to buy the remaining 49% interest from 2026. Funded by the group’s existing capital, IHG will pay for the deal in three tranches of US$13 million, the first upon the date of completion (expected to close during Q2 2018), the second in 2021, and the third in 2024. The acquisition is part of the group’s new strategic initiatives focused on expanding its footprint in the fast-growing US$60 billion luxury segment. IHG will place Regent at the top end of the luxury segment in its brand portfolio and intends to grow the brand from six hotels (with 2,000 hotel rooms) today to over 40 hotels (more than 10,000 rooms) globally in the long-term. In addition, IHG has also announced that following an extensive refurbishment commencing in early 2020, the InterContinental Hong Kong will become a Regent Hotel once again in early 2021.

Also Read: Exclusive Views at 4Hoteliers.com - 'Is the Regent deal good enough to put IHG in the luxury game?'

Holiday Inn Vana Nava Hua Hin, the first Holiday Inn water park resort in Asia, opens in Thailand

Holiday Inn Vana Nava Hua Hin has opened its doors as the first Holiday Inn water park resort in Asia. Located two and a half hours’ drive south of Bangkok, the hotel features 300 rooms and suites, including KidSuites, children-friendly rooms with bunk beds, and play areas. All guests are offered unlimited access to the 3.2-hectare Vana Nava Hua Hin Water Jungle waterpark. Hotel facilities include 950 square metres of event space, an infinity pool, a spa, a 24-hour fitness centre, a kids’ club, and a children’s pool. Food and beverage outlets include an all-day dining restaurant, a pool bar, and the Vana Nava Sky Bar, Restaurant and Observation Deck. The hotel is part of the Vana Nava Hua Hin mixed-use development which will also feature residences which are expected to be launched later this year.

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