Hotel industry and travel news from around the Asia Pacific region: Ascott expands pPresence in the Philippines, AirAsia to launch new route between Chiang Mai and Taipei and more...

UK-Based Investment Firm 90 North Acquires 82-unit Quest Springfield Central for AUD24.3 million

UK-based investment firm 90 North Real Estate Partners LLP (“90 North”) has acquired the 82-unit Quest Springfield Central for AUD24.3 million in a venture partnership with Saudi Arabia-based financial services company, Sidra Capital (“Sidra”). The acquisition marks both 90 North and Sidra’s first foray into the Australian real estate market. Located in Greater Springfield’s Health Care precinct, southwest of the Brisbane metropolitan area, the property opened on 5 March 2018 and offers 82 serviced apartment-style hotel rooms, a childcare centre, gym, business lounge, conference facilities and three ground floor retail units. The Greater Springfield area is one of Queensland’s latest master planned communities that is growing fast, having attracted nearly AUD15 billion in private and public investments and with an expanding population of close to 40,000. The transaction is one of 32 acquisitions 90 North has made in the UK, Europe, USA and Australia.

Memories Group Acquires Two Myanmar Hotels for USD40.7 Million

SGX-Catalist listed, Myanmar-based tourism firm Memories Group Limited (“Memories Group”) and its subsidiaries have entered into an agreement with 17 third party shareholders, including Myanmar-based Samena Mandalay Asset Holdings (“SMAH”), to acquire development rights over three islands spanning 5,100 acres, the 72-key three star Hotel Suggati and the 24-villa five star resort Awei Pila for a total of USD40.7 million. The acquisition will be funded by cash and the issuance of new shares. The development rights for Bo Ywe Island, Nga Mann Island and Kyun Pila Island has a 50-year lease term from 2013 and is renewable for an additional two terms of ten years each. Awei Pila resort, the first resort on Kyun Pila Island, will feature eco-designed villas, an onsite restaurant, a bar and swimming pool, while Hotel Suggati will be furnished with a spa, a fitness centre, a restaurant, boardroom and ballroom with a capacity of 90 people. Both properties are slated to be completed by end of December 2018. With this latest deal, Memories Group will continue to broaden their hotel offerings and further enhance their integrated tourism platform. In May 2018, the group also acquired the four-star hotel Kayah Resort in Loikaw which will be completed as a five-star hotel by the end of 2019.

Ascott Expands Presence in the Philippines with New Signings

Singapore-based developer CapitaLand’s wholly owned serviced residence business unit, The Ascott Limited (“Ascott”), has entered into a strategic alliance with Philippines-based developer, Cebu Landmasters Inc. (“CLI”), for the addition of 1,600 units into the Philippines by 2022. Under the alliance, both companies will pursue opportunities for CLI to develop serviced residences, which will eventually be managed by Ascott. As of now, only the first four properties have been announced and that includes a 180-key Citadines Cebu City, a 250-key Citadines Paragon Davao, a 153-key lyf Cebu City and Ascott’s debut in Bacolod City, the 200-key Citadines Bacolod City. These properties are expected to open from 2019 to 2021. Concurrently, Ascott has reached an agreement with another property owner for the opening of the 200-key Citadines Roces Quezon City, Ascott’s first in Metro Manila’s largest city, in 2023. The new additions will increase Ascott’s portfolio in the country by 27% year-on-year to over 4,300 units.

AirAsia to Launch New Route between Chiang Mai and Taipei

Malaysia-based low-cost airlines AirAsia Berhad (“AirAsia”) has announced that it will launch a new service between Chiang Mai and Taipei on 30 September 2018. This will be the second direct link between the two cities after Taiwan-based airline EVA Air Corporation (“EVA Air”) began direct flights on 1 July 2018. AirAsia will operate four flights a week between two destinations, every Tuesday, Wednesday, Friday and Saturday, with flight duration of approximately four hours. Since Taiwan introduced the visa-free treatment for Thai nationals on a trial basis in August 2016 and extended it until 31 July 2019, there has been increased interest and repeated visits to the country, with over 290,000 Thai tourists visiting Taiwan in 2017, an uplift of close to 50% year-on-year. Around 570,000 Taiwanese visited Thailand last year, an increase of 10% y-o-y. AirAsia currently operates 13 domestic and international routes from Chiang Mai and 6 international routes from Taiwan.

Yuluxe Brand to Debut in Western China

Shimao Star Hotels Group (“Shimao Star Hotels”), a joint venture founded by China-based real estate developer Shimao Group (“Shimao”) and US-based investment firm Starwood Capital Group (“Starwood Capital”), will launch its first Yuluxe hotel, namely Yuluxe Hotel Chengdu, in western China. Strategically located in the city center of Chengdu, the hotel stands close to the Hongxingqiao Station of Subway Line 3 and is a 20 minutes’ drive from urban areas, only 30 minutes drive from Chengdu Shuangliu International Airport, ten minutes drive from Chengdu North Railway Station and 15 minutes drive from Chengdu East Railway Station. Slated to open in August 2018, Yuluxe Hotel Chengdu will feature 294 guestrooms with seven types of units ranging from 40 square metres to 125 square metres. Food and beverage outlets at the hotel will include a Chinese restaurant, an all-day dining restaurant and a lobby lounge. In addition to a 900-square-metre grand ballroom and nine meeting rooms of different sizes, the hotel will offer leisure facilities such as an indoor swimming pool, a well-equipped gym and a chess room.

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