Hotel industry and travel news from around the Asia Pacific region: Seychelles reopen borders to international arrivals, COVID-19 impact on the South Korea hotel industry and more...

Ascott Residence Trust to Sell Guangzhou and Paris Serviced Residences for SGD191.4 Million
Singapore-based SGX-listed real estate investment trust, Ascott Residence Trust (“ART”) has agreed to sell the 207-key Ascott Guangzhou in China and the 80-key Citadines Didot Montparnasse Paris in France to two unrelated third parties respectively, for a total of SGD191.4 million. ART is expected to realise total estimated net gains of approximately SGD23.2 million when both transactions are completed, comprising SGD19.4 million from the Guangzhou deal and SGD3.8 million from the Paris deal. Ascott Guangzhou carries a divestment price of CNY780 million (SGD155 million), which is about 52% above the property’s book value and approximately 81% higher than the acquisition price in 2012. This transaction is expected to complete in the first quarter of next year. For the Paris serviced residence, the divestment price is EUR23.6 million (SGD36.4 million), which is approximately 69% above the property’s book value and about 60.4% higher than the acquisition price in 2010. This transaction is expected to complete in the fourth quarter of this year. Ascott Guangzhou is situated in the city’s financial hub of Tianhe, and has been operational for 12 years, comprising of one, two and three-bedroom apartments while Citadines Didot Montparnasse Paris features studio and one-bedroom apartments, and is near open-air markets and the Georges-Brassens park in France’s capital city.

The Impact of COVID-19 on the South Korea Hotel Industry
By Han Sol Park and Daniel Voellm
HVS has recently completed an anonymous short survey about the COVID-19 pandemic and its unprecedented impact on the South Korea hotel market. On a property level, the survey focuses on hoteliers' point of view on contingency measures, business strategies, signs of recovery indication, and comparison between pre-COVID-19 crisis and post-COVID 19 crisis.

To view and download the full article, please click here.

Seychelles Reopen Borders to International Arrivals from 1 August 2020
Seychelles will allow international commercial flights to enter from 1 August 2020. The island will reopen its borders for travellers from low- and medium-risk countries only. Currently, the low risk countries are Japan, New Zealand, Thailand, China, Belgium, and Norway. On the other hand, medium risk countries include South Korea, Singapore, Sri Lanka, Italy, Greece, Canada, and Spain. Visitors from both these countries will need to provide a negative Polymerase Chain Reaction test within 72 hours of travel. However, the ones under the low risk group can also opt for an antigen test. All negative test result certificates including flights and accommodation details must be sent to the Public Health Authority. Details of accommodation in an approved establishment for the entire period of stay and booking vouchers need to be shown at the immigration. Valid travel insurance with full medical coverage for the duration of the entire stay in Seychelles is also required. Upon arrival, travellers will not be able to stay in more than two places of accommodation for the first seven days.

Long Holiday in Thailand Welcomed a Number of Tourists to Surat Thani
The four-day weekend during 25 to 28 July 2020 in Thailand has attracted a number of tourists to Surat Thani province. The province has three main popular resort islands, namely Koh Samui, Koh Phangan, and Koh Tao. The total spending was reported THB220 million into local circulation, of which THB120 million from Koh Samui, Koh Phangan, and Koh Tao islands, and approximately THB100 million from the mainland. Koh Samui received approximately 17,000 tourists with an estimated 80% from Bangkok and other provinces, and 20% foreigners and local people for home visits. There were about 4,000 daily arrivals on Koh Samui ferry and 1,400 by air. According to Tourism Authority of Thailand (“TAT”), a rise in visitors could be attributed to the government’s tourism program that provide discounts at hotels and restaurants for tourists.

IHCL Signed Pact to Become 100% owner of Sea Rock Hotel Site
India-based hospitality major, The Indian Hotels Company (“IHCL”) has signed a binding agreement to acquire the remaining 14.28% stake in its subsidiary, ELEL Hotels and Investments Limited (“ELEL”), from the Nanda family. This deal will make IHCL the 100% leasehold owner of the Sea Rock hotel site in Mumbai by 31 December 2021. IHCL’s board of directors had approved the terms for the settlement in November 2019. The payment will be structured through multiple instalments staggered over a period, with full buyout by 31 December 2021. IHCL operates four brands including Taj – the hallmark of Indian hospitality, SeleQtions – a named collection of hotels, Vivanta– sophisticated business and leisure hotels, and Ginger – well-located business hotels.

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