Hotel industry and travel news from around the Asia Pacific region: Bagan awarded UNESCO World Heritage status, Red Planet Hotel in Hiroshima sold, new traffic tunnel opens in Phuket and more...

AXA IM – Real Assets Acquires Red Planet Hotel in Hiroshima for JYP4.6 Billion
France-based fund manager, AXA IM – Real Assets (“AXA”), has announced the JYP4.6 billion (USD43 million) acquisition of the 160-key Red Planet Hiroshima Nagarekawa Hotel from a joint venture between the Japanese-based GreenOak Investment Management K.K. and Red Planet Japan Inc., who will operate the hotel on a long term lease running to 2040. Due for completion in the second quarter of 2020, the budget hotel comprises 14 parking spaces and a restaurant. Located in the heart of Hiroshima City, the Hondori shopping arcade, Hiroshima Peace Memorial, Ebisu-Cho and Fukuro-machi tram Stations are in close proximity to the hotel. This investment marks AXA’s third Japanese hotel acquisition, adding to its EUR2.5 billion portfolio of hotels across 11 countries. Hotels under AXA are predominantly operated by leading hotel brands through different management contracts, from traditional leases to franchise agreements.

NZ Super Fund Backs NZD300 Million New Zealand Hotel Portfolio
New Zealand-based sovereign wealth fund New Zealand Super Fund (“NZ Super Fund”) is investing in a hotel portfolio managed by New Zealand-based construction company, Russel Group, and private investment group, Lockwood group, for NZD300 million. There are two joint ventures under the agreement, one to own the properties, and the other to manage the hotels and identify future opportunities. The NZD42 billion wealth fund will back both ventures, marking its first direct investment in local hotels. The phased investment includes the 255-key Four Points by Sheraton, 160-key Adina Auckland Britomart in Auckland, the 263-key BreakFree Hotel in Christchurch, and an intention to acquire and develop additional sites. By early 2020, the hotel portfolio will include 150-key QT Auckland hotel which is currently under construction. Upon the investment, NZ Super Fund will be the sixth largest hotel group in New Zealand based on room count.

Bagan Awarded UNESCO World Heritage Status
The United Nations Educational, Scientific and Cultural Organization (“UNESCO”) has named Myanmar’s ancient capital of Bagan as a UNESCO World Heritage Site on 6 July 2019, nearly a quarter of a century after it was first nominated in 1995. The central Myanmar site includes more than 3,500 stupas, temples, monasteries, fortifications and other monuments built between the 11th and 13th centuries. In a bid to conserve the heritage zone, hotels from the existing archaeological sites will be moved to a dedicated hotel zone by 2028. Effective local governance, meeting conservation targets and the relocation of commercial activities are also some of the key criterions to sustain Bagan’s World Heritage status. The recognition by the United Nations’ cultural body is expected to boost demand from both Asian and Western markets.

THB546 Million New Traffic Tunnel Opens in Phuket
Thailand’s main tourist destination, Phuket, has officially opened a THB546-million Chalong junction tunnel at a busy intersection on the island. The 730m-long tunnel is located where Highways 4021, 4024 and 4028 meet Tessaban Road in Tambon Rawai, Muang District. It is expected to ease the traffic congestion, currently serving more than 100,000 vehicles a day. The tunnel is the gateway to several popular tourist attractions such as Laem Prom Thep, Kata beach and Karon beach. The construction was started in July 2015 and was opened for public used on 31st May 2019. There are plans for a light-rail mass transit line between Phuket airport and Chalong junction which is expected to serve 32,000 passengers a day with 21 stations. The duration from the airport to the junction is estimated to be approximately 70 minutes.

Japan National Tourism Organization and Singapore Airlines Partners to Promote Japan Tourism
Japan National Tourism Organization (“JNTO”) and Singapore-based Singapore Airlines Limited (“SIA”) have signed a Memorandum of Cooperation (MOC) to promote travel and tourism to Japan from five key markets including Australia, India, Indonesia, Malaysia and Singapore. The two-year agreement has been pegged at JPY48 million (USD445,536) for the first year while the second year of funding have not been decided. The partnership involves making significant investments to boost marketing activities and rolling out joint promotional activities to contribute to Japan’s goal of welcoming 40 million inbound tourists in 2020. In 2018, tourist arrivals from Singapore increased by 8.2% year-on-year (y-o-y) to 437,280, while those from India generated a y-o-y growth of 14.7%, from Australia by 11.6%, from Malaysia by 6.5% and from Indonesia by 12.7%. SIA currently operates a combined 117 weekly services between Singapore and Japan.

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