Hotel industry and travel news from around the Asia Pacific region: Anbang Insurance to divest 15 luxury US hotels, OYO enters four-star segment, Mori Trust acquires Hilton Odawara and more...
OUE to Sell Oakwood Premier OUE to Joint Venture between AMTD Group Company Limited and Dorsett Hospitality International
Singapore-based real estate developer, OUE Limited (“OUE”) has sealed a deal to sell Oakwood Premier OUE Singapore to joint venture firms formed by Hong Kong-based financial services firm, AMTD Group Company Limited (“AMTD”) and hotel operator, Dorsett Hospitality International (“Dorsett”). OUE has come to an agreement to sell the luxury serviced residences and hotel business along Shenton Way to the buyers for SGD289 million, indicating approximately SGD1,078,360 per key. Oakwood Premier has a total gross floor area that spans 25,054 square metres, with strata title area of 23,234 square metres. The 268-key property features studio, one- and two-bedroom apartments, as well as two dining facilities and other amenities, occupying levels 7 to 32 of OUE Downtown 1, a mixed-use complex comprising offices and a retail mall. The property is currently managed by Oakwood Worldwide (Asia) Pte. Ltd., and is subject to a 99-year land lease which will expire in July 2066.
Fragrance Group Acquires Min Yuan Apartments for SGD141 Million with Plans for Hotel Development
Singapore-based Fragrance Group Limited’s wholly owned subsidiary Fragrance Victory Private Limited (“Fragrance Victory”) has announced the acquisition of Min Yuan Apartments at 62 Waterloo Street, Singapore, for a purchase consideration of SGD141 million. The 999-year leasehold property has a land area of 1,359.10 square metres and a plot ratio of 4.2. Upon redevelopment, it may yield a potential gross floor area of 5,708.22 square metres, subject to payment of development charge of approximately SGD19.55 million at the prevailing rate. Currently, Fragrance Victory owns the adjacent land plot located at 64 Waterloo Street. Subject to obtaining the necessary approvals, the group intends to redevelop the two properties together for a combined comprehensive hotel development. The development will have a total land and gross floor area of 2,694 square metres and 11,315 square metres, respectively.
Anbang Insurance Group to Divest 15 Luxury Hotels Based in the United States
Chinese-based Anbang Insurance Group (“Anbang”) has entered into a definitive agreement to divest a portfolio of 15 luxury hotels in the United States to South Korea-based Mirae Asset Global Investments. The USD5.8 billion transaction which is scheduled to close by the end of January 2020 includes the 426-key JW Marriott Essex House in New York, 234-key The Ritz-Carlton Half Moon Bay, 1,195-key Westin St. Francis, 250-key Montage Laguna Beach and 200-key Four Seasons Silicon Valley in California, 750-key Fairmont Scottsdale Princess and 210-key Four Seasons Scottsdale in Arizona, 158-key Four Seasons Jackson Hole in Wyoming and InterContinental Hotels in Chicago and Miami. Subsequent to the divestment, Anbang still owns the famed Waldorf Astoria Hotel in Manhattan.
Japan's Mori Trust Acquires Hilton Odawara Resort and Spa Through Joint Venture for USD119 Million
A 50/50 joint venture between Japan-based real estate organisation, Mori Trust Asset Management Company Limited and REIT Trust, Mori Trust Hotel REIT has closed the deal to acquire the 163-key Hilton Odawara Resort and Spa from US-based Hilton Worldwide Holdings Inc. (“Hilton”) at USD119 million. The hotel occupies a 174,566-square-metre site that is 35 minutes’ bullet train ride away from Tokyo. Hilton has recently invested USD21.6 million in renovation works that included an overhaul of all the guest rooms, the three restaurants and common areas, as well as the procurement of ten cottages and two buildings used for a timeshare, which are not part of the acquisition. Following the acquisition, the time share properties, which are under separate ownership but managed by Hilton Grand Vacations will pay fees to the new owners for the use of hotel services and facilities at Hilton Odawara Resort and Spa. The hotel will continue to be operated under the Hilton Hotels and Resorts brand.
Indian Hotel Chain OYO Enters Four-star Hotels Segment
SoftBank-backed India-based hotel chain, OYO Hotels and Homes (“OYO”), has acquired the 90-key Fortune Select Metropolitan Jaipur from UAE-based real estate development company, Emaar Properties, as part of the company’s plans to enter the four-star hotels segment in India. The acquisition is reported to be worth approximately INR350-400 million. Managed by India-based hotel chain, ITC Hotels, the hotel is situated in the heart of Jaipur, and approximately 20- and 5-minutes’ drive from Jaipur Airport and Jaipur Railway Station, respectively. Going forward, OYO plans to add more premium and upscale hotels into its portfolio. OYO’s portfolio currently comprises more than 23,000 hotels and 125,000 vacation homes in more than 800 cities across 80 countries.