Hotel industry and travel news from around the Asia Pacific region: QIA to invest in Indonesia’s tourism sector, Japan Airlines and China Eastern to form major alliance, HNA Group and more...

NSSK Acquires Hotel Castle Inn Group

Japanese private equity firm, Nippon Sangyo Suishin Kiko (“NSSK”), through Chubu/Hokuriku Region Vitalization Investment L.P. (“the Investment L.P.”), has acquired Hotel Castle Inn Group (“Castle Inn”), the owner and operator of six hotels in the Mie Prefecture of the Chubu Region (Central Japan), for an undisclosed amount. Castle Inn has a total of 826 guestrooms across its six properties and primarily targets business travellers with affordable pricing and attractive amenities such as onsen-style bathing facilities. NSSK will build on Castle Inn’s stable and loyal customer base and seek to increase its RevPAR by implementing new business practices and working closely with its hotel management operating partners. NSSK, through the Investment L.P., invests in small and medium-sized companies with high growth potential based in the Chubu/Hokuriku Region which has a strong demand for hotels from business and leisure travellers.

Pro-Invest Acquires Part of an Auckland site to Introduce Two IHG-Branded Hotels

Australia-based boutique investment firm, Pro-Invest Development (“Pro-Invest”) has entered into a deal with New Zealand-based property developer, Mansons TCLM Limited (“Mansons TCLM”) to acquire approximately 1,100 square metres of land in Auckland’s CBD for NZD31 million at a land value of NZD28,181 per-square-metre. The transaction will enable a 22,500 square metre hotel building to be developed on the site. Pro-Invest has already planned a 490-key dual-branded hotel development of around 37 levels on the site and will own and manage, under a franchise agreement with UK-based InterContinental Hotels Group (“IHG”), a 290-key Holiday Inn Express on the lower levels and a 200-key EVEN Hotel Auckland on the upper levels. Situated on the corner of Albert and Wyndham streets in central Auckland, both hotels are slated to open by 2020. The EVEN Hotel will be the first EVEN-branded property to open outside of North America and also the first in Pro-Invest’s plans for a portfolio of 10 to 15 EVEN hotels in Australasia. The EVEN brand is IHG’s answer to the consumer shift in holistic wellness, featuring at its hotels athletic studios in the lobby, multi-functional zoned gym, in-room fitness elements as well as fresh, organic foods.

QIA to Invest USD500 Million in Indonesia’s Tourism Sector

Qatar’s state-owned holding company, Qatar Investment Authority (“QIA”), has signed a memorandum of understanding (MoU) with the Indonesian government to invest USD500 million to boost the country’s tourism sector. Under the MoU, the capital will be directed to a series of on-going projects within Indonesia’s top 10 priority destinations, or “10 New Balis”, which include Lake Toba in North Sumatra, Mandalika in West Nusa Tenggara and Labuan Bajo in East Nusa Tenggara. The MoU also allows QIA to invite other co-investors to join the project. Moving forward, the Indonesian Coordinating Ministry for Maritime Affairs (“CMMA”) will be working closely with QIA to explore and assess the potential development opportunities of the various destinations. This mutually beneficial investment will allow Indonesia to further its efforts in becoming a premier tourist destination, while strengthening QIA’s global portfolio.

HNA to Sell Radisson Holdings to Chinese Hospitality Giant Jin Jiang

China-based conglomerate HNA Group Co. (“HNA”) has agreed to sell Radisson Holdings Inc. (“Radisson”), an umbrella company that owns US-based Radisson Hospitality Inc. (“Radisson Hospitality”), to China-based hotel company Jin Jiang International Holding Co. (“Jin Jiang”) for an undisclosed sum. The transaction is expected to be completed by the end of the year and would add to the more than USD17 billion in divestments HNA has made this year, including the sale of its stakes in Hilton Worldwide Holdings Inc. and NH Hotel Group SA. As part of the deal, Jin Jiang will acquire a 51.5% stake in Stockholm-listed Radisson Hospitality AB from Radisson Hospitality at SEK35 (USD3.89) per share. Separately, Jin Jiang plans to buy up to 18.5% of the Stockholm-listed company from HNA, before launching a public tender for its remaining shares. Through the Radisson purchase, Jin Jiang will become the seventh-biggest hotel company in the world, with 344,000 rooms, according to STR.

Japan Airlines and China Eastern Airlines to Form Major Alliance

Japan-based Japan Airlines Co. Limited (“JAL”) and China-based China Eastern Airlines Co. Limited (“China Eastern”) will expand their partnership in a joint venture to closely coordinate flight schedules, sales and other operations. Both carriers' existing partnership includes flight code-sharing and reciprocal swapping of frequent flyer miles. Slated to start in April 2019, the joint venture is the first of its kind between a Japanese and Chinese carrier and will cover international flights between the two countries as well as their domestic networks which feature over 50 cities in Japan and over 80 cities in China. This joint venture will tap into Japan’s booming tourism industry where China is the top source market, accounting for a fourth of total visitors. In 2017, Japan welcomed 7.35 million Chinese visitors, a 15% year-on-year growth from the previous year.

www.hvs.com