Hotel industry and travel news from around the Asia Pacific region: Singapore reveals master plan to reshape Sentosa and Brani Island, infrastructure development in Indonesia’s super priority destinations and more...
Singapore’s GIC-Summit Joint Venture to Acquire US-based Portfolio for USD249 Million
Singapore-based sovereign wealth fund, GIC Private Limited has announced the agreement to acquire a hotel portfolio of four hotels through its joint venture with NYSE-listed US-based real estate investment trust, Summit Hotel Properties for USD249 million, reflecting approximately USD351,000 per key. The portfolio comprises of hotels located in high-growth market in Oregon and California, which includes 258-key Residence Inn by Marriott Portland Downtown/RiverPlace, 169-key Hilton Garden Inn San Francisco Airport North, 161-key Hilton Garden Inn San Jose/Milpitas and 122-key Residence Inn by Marriott Portland Hillsboro. The total purchase price represents an average capitalisation rate of 8.4% based on the management’s current estimate of the hotels’ net operating income for the full year of 2019. The joint venture seeks to invest approximately USD23 million of capital on the four hotels during the first three years of ownership. The transaction is expected to close in the fourth quarter of 2019.
Hoi Hup Realty to Acquire Andaz Hotel at Duo from M+S for SGD475 Million
Singapore-based M+S Private Limited, a 60/40 joint venture between Malaysia-based Khazanah Nasional Berhad and Singapore-based Temasek Holdings Private Limited is selling the 342-key Andaz Singapore to Singapore-based real estate developer, Hoi Hup Realty Private Limited (“Hoi Hup”) for SGD475 million, reflecting SGD1.39 million per key. The deal represents the highest standalone hotel transaction in Singapore and the third highest in Asia this year. In addition, M+S has agreed to sell all the shares of its wholly-owned subsidiary, Ophir-Rochor Hotel Private Limited (“OPH”) to Hoi Hup. OPH is the developer and owner of Andaz Singapore, the hotel component of the Duo mixed-use project located along the Ophir-Rochor corridor in Singapore. The Duo development is situated on a site with a 99-year leasehold tenure starting from 1st July 2011. The luxury lifestyle hotel occupies the top 15 floors of the 39-storey Duo Tower and features a rooftop venue and an observation deck while the ballrooms and meeting rooms are located on Level 3. Managed by US-based Hyatt Hotels Corporation, the hotel opened its doors in late 2017 and is the first Andaz hotel in Southeast Asia.
Infrastructure Development in Indonesia’s Super Priority Destinations to Complete by 2020
The Indonesian government has earmarked IDR9.4 trillion for the development of basic utilities and supporting infrastructure in the five super priority destinations next year. Of the total budget, Lake Toba has been allotted IDR2.2 trillion; the Borobudur area with IDR2.1 trillion; Labuan Bajo with IDR300 billion; Mandalika with IDR1.9 trillion; and the remaining towards Likupang. For the Borobudur area, some of the development success factors includes the Yogyakarta-Solo-Semarang triangle, which comprises the construction of the new Yogyakarta International Airport which is targeted to be fully operational by March 2020, and the development of a bypass road to Borobudur. In Lombok, development works include the construction of the MotoGP Circuit in Mandalika, an under-construction integrated resort area, a bypass road between the Lombok International Airport and Mandalika, as well as an extension of the airport runway. At present, the Indonesian government and relevant stakeholders are finalising the Integrated Tourism Master Plan for the super priority destinations.
Singapore Reveals Master Plan to Reshape Sentosa and Brani Island
Sentosa Development Corporation (“SDC”) has unveiled a comprehensive master plan aimed at redeveloping the Sentosa and Pulau Brani islands as part of the upcoming development of the Greater Southern Waterfront precinct. The Sentosa-Brani Master Plan will be implemented in phases over the coming two to three decades, which will see the introduction of world-class attractions, new spaces and concepts, including rejuvenated beaches and expanded nature and heritage trails. The redeveloped islands will feature five distinctive zones including Vibrant Cluster, Island Heart, Waterfront, Ridgeline, and Beachfront. Set to begin construction in Q4 2019, the SGD90 million Sentosa Sensoryscape is the first milestone project scheduled for completion in 2022. The 30,000-square-metres Sentosa Sensoryscape will link Resorts World Sentosa in the north to the island’s beaches in the south through a multi-sensory experience.
Prestige Estates Projects and DB Group form Joint Venture to Build Hotel and Convention Centre in New Delhi, India
India-based real estate developers, Prestige Estates Projects Limited and DB Group have entered into a 50/50 joint venture to develop one of India’s largest mixed-use projects with a total built-up area of 3.5 million square feet at Aero City in New Delhi. DB Group had acquired the development rights on the 7.7-acre land parcel in 2009 from Delhi International Airport Limited. The project will comprise a 932-key hotel, a convention centre with over 200,000 square feet and an office space with over 650,000 square feet. The excavation work has been completed and the project is slated to be completed by 2022 with a total investment of INR20 billion. Prestige Group currently has eight operating luxury hotels with 1,262 keys and 297 keys under construction.