Hotel industry and travel news from around the Asia Pacific region: Renaissance hotels debuts in Indonesia with Bali Opening, AccorHotels, VietJet adds routes to Taiwan and South Korea and more...

Ascendas Hospitality Trust Acquires KY-Heritage Hotel Dongdaemun

Singapore-based Ascendas Hospitality Trust (“A-HTRUST”) has made its first foray into the South Korea market with the acquisition of KY-Heritage Hotel Dongdaemun, Seoul. A-HTRUST, via Ascendas Hospitality Business Trust (“A-HBT”), entered into a sale and purchase agreement with Korea-based KY-Development Co., Ltd. to acquire 98.7% interest in the 215-key KY-Heritage Hotel Dongdaemun for KRW72.1 billion (S$89.0 million). The remaining 1.3% will be held by Ascendas (Korea) Pte Ltd, a wholly-owned subsidiary of Ascendas Land International Pte Ltd (“ALI”). The consideration for 100% of the hotel, at KRW73.0 billion, is at a 3.2% discount to the latest valuation of the hotel and translates to a pro forma net property income yield of 4.1%. The acquisition, fully funded by debt, is expected to complete in June 2018 following local regulatory approval. After completion, the hotel will be rebranded and repositioned to be managed by an established regional hotel management company under a master lease agreement.

AccorHotels Reaches Agreement for the Purchase of Mövenpick Hotels

France-based Accor S.A. (“AccorHotels”) has reached an agreement to acquire Switzerland-based Mövenpick Hotels & Resorts (“Mövenpick”) from Saudi Arabia’s Kingdom Holding Company (“Kingdom Holding”) for 560 million Swiss Francs (S$750.1 million). Kingdom Holding, the investment vehicle of Prince Alwaleed bin Talal, bought into Mövenpick two decades ago and has been offloading hotel assets in recent years. Founded in 1973, Mövenpick boasts a worldwide portfolio of 84 hotels in 27 countries, including 19 properties across Asia-Pacific, and has plans to open 42 additional hotels globally by 2021. Subject to regulatory approvals, once the deal is completed in the second half of 2018, Mövenpick will benefit from AccorHotels through its distribution, loyalty-building and development. The transaction will allow AccorHotels to consolidate its footprint in Europe and the Middle East while accelerating growth in Africa and Asia.

VietJet Adds Routes to Taiwan and South Korea

Vietnam-based low-cost carrier VietJet Aviation Joint Stock Company (“VietJet”) has announced two additional international routes namely: Danang – Daegu (South Korea) and Hanoi – Taichung (Taiwan). Starting 19 July 2018, the Danang – Daegu route will be operated daily with an estimated duration of four and a quarter hour per leg. Starting 22 June 2018, the Hanoi – Taichung route will be operated with five return flights weekly, with an estimated duration of two and a half hours per leg. With the new addition, VietJet will be the airline with the highest frequency of flights serving Taiwan from Vietnam. The two new services will improve the regional accessibility to Vietnam, meet growing local and tourist travel demand, and contribute to regional trade and integration promotion.

Renaissance Hotels Debuts in Indonesia with Bali Opening

US-based Renaissance Hotels (“Renaissance”), part of Marriott International Inc. (“Marriott”), opened its first property in Indonesia with the 207-key Renaissance Bali Uluwatu Resort & Spa. Owned by PT. Alam Bali International, the new resort offers 207 guestrooms and suites with private balconies and luxurious bathrooms. Dining options include the hotel’s signature three-meal Clay Craft Restaurant, Double Ikat Restaurant which features authentic Indonesian cuisine, the Pool Bar overlooking the ocean and R Bar in the hotel’s lobby. Renaissance Bali Uluwatu Resort & Spa also manages the nearby Roosterfish Beach Club. Other facilities comprise of a saltwater pool, a children’s pool, spa with eleven treatment rooms and a fitness centre. The newly opened resort is ideally located at the southern tip of Bali on the Bukit peninsula, which is renowned for its cliff-fringed coastlines and overlooks the Indian Ocean.

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