Hotel industry and travel news from around the Asia Pacific region: Singapore Airlines partners with Maldives to promote tourism, SilkAir launches direct flights to Busan, South Korea and more...
Eagle Hospitality Trust to be Listed in Singapore
US-based real estate investment trust (REIT), Eagle Hospitality Trust (“EHT”), has lodged a prospectus for an initial public offering (IPO) in Singapore. A total of 559.34 million shares will be offered at USD0.80-0.81 per share. Cornerstone investors such as DBS Bank, DBS Bank’s management clients, Gold Pot Developments, and Ji Qi, have already subscribed to 139.50 million of shares. Backed by US-based property investor and developer, Urban Commons LLC (“Urban Commons”), EHT will list in Singapore with a market cap of USD750 million. EHT’s portfolio of 18 hotels include nine Upper Upscale hotels, five Upscale hotels, and four Upper Midscale hotels, with a total room count of 5,420. The assets, spanning eleven US markets, are valued at USD1.27 billion or USD234,317 per key. A total of USD174 million has been spent by Urban Commons on major refurbishments since 2013. Given the enhancements, EHT’s portfolio revenue per available room is projected to grow by 14.5% in 2019 and 2.9% in 2020. EHT promises an indicative dividend yield of 8.1% - 8.2% for 2020, with distributable income projected to grow by 4.1 % between 2019 and 2020. Post-listing, Urban Commons is expected to own a 25% to 30% stake.
Singapore Airlines Partners Maldives Marketing and Public Relations Corporation to Promote Tourism
Singapore Airlines (“SIA”) has signed a Memorandum of Understanding (MoU) with the Maldives Marketing and Public Relations Corporation (“MMPRC”) to jointly promote tourism and boost visitor arrivals to the Maldives. Effective from 5 May 2019, the one-year agreement will see each organisation investing USD180,000 in cash and USD40,000 in kind to fund activities such as roadshows, joint marketing campaigns and familiarisation trips for media and travel industry representatives. The activities are aimed at visitors from six key target markets including Australia, China, Japan, Singapore, South Korea and the United States. Since 2017, tourists from these countries accounted for more than 30 per cent of annual tourist arrivals into the Maldives. Currently, SIA and its regional subsidiary, SilkAir, operate a total of 16 weekly services to Malé, and offer convenient connections to other destinations in the SIA and SilkAir network.
Malaysia Tourism City in Melaka to Welcome the First Hasbro-themed Water Park
Malaysia-based property investment company, Meridian Bhd (“Meridian”) and Malaysia-based property developer group, M101 Holdings Group (“M101”), have launched a 622-acre (251.7 hectares) integrated tourism destination project, Malaysia Tourism City (MTC) in Kuala Linggi, Melaka. Aimed at boosting arrivals and overnight stays, the development will be anchored by the world’s first Hasbro Water Theme Park, slated to open in 2022. The water park, which is expected to cost RM80 million, will be developed over 20 acres (8.1 hectares) and will feature licensed intellectual properties such as My Little Pony, GI Joe, and Nerf, as well as a range of branded rides which are not available in other theme parks. Phase one of MTC further includes a weekend market, and a thematic adventure and ecotourism park. Plans for phases two and three include a moto-tourism park, a mall and entertainment centre, convention and medical centres, as well as contractual farming for organic food. MTC is expected to add two million tourist arrivals to the state, 1.5 million overnight stays, and RM5 billion (USD1.2 billion) per annum in tourist receipts.
SilkAir Launches Direct Flights to Busan, South Korea
SilkAir, the regional subsidiary of Singapore Airlines (“SIA”), flag carrier airline of Singapore, has launched new direct flights between Singapore and Busan, on 1 May 2019. Located on the southeastern tip of the Korean Peninsula, Busan is the second-largest city and a tourist destination in South Korea. The new route represents the South Korean city’s first direct air connection to Singapore and SilkAir’s first South Korean city in its network. Currently, there are no other airlines operating scheduled flights between Singapore and Busan. The new service will operate four times a week on SilkAir’s Boeing 737-800 aircraft. In April 2019, SilkAir begun the two-year process of transferring 17 of its routes to low-cost sibling, Scoot, as it prepares to merge with SIA. SilkAir is expected to upgrade its cabin, receive new flatbed business class seats and in-flight entertainment systems.
Hap Seng Invests in its First Hotel with Hyatt Centric Kota Kinabalu
Malaysia-based Hap Seng Consolidated Berhad (“Hap Seng”), which is listed on the Main Market of Bursa Malaysia Securities Berhad, has made its first foray into the hospitality scene. While the Malaysian listed company has traditionally been involved in property investments and developments, a wholly-owned subsidiary of Hap Seng has entered into of a management agreement with an affiliate of US-Based Hyatt Hotels Corporation for Hyatt Centric Kota Kinabalu. It represents Hap Seng’s first hospitality investment as well as the first Hyatt Centric hotel in Malaysia. Slated to open in 2021, the 22-storey hotel will offer 220 guestrooms, an all-day lounge and restaurant, meeting space, rooftop swimming pool, a bar, and a fitness center. Hap Seng is a diversified conglomerate with six core business activities, ranging from plantations, property investment and development, credit financing, automotive, fertilizers trading and building materials.
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