Hotel industry and travel news from around the Asia Pacific region: Novotel Brisbane sold, Thailand-based Destination Capital set to acquire hotels and more...
Capitol Square Hotel Sold for AUD26 Million in Sydney, Australia
The Capitol Square Hotel in Sydney’s Central Business District has been acquired by MKH Properties (“MKH”) from the Australia-based Chandru Group, an entity associated with the renowned property investor, Mr Chandru Tolani, for AUD26 million. This represents the first hotel sale in Sydney post-COVID. The 94-key property is a midscale hotel located at 3 Campbell Street in Haymarket. Situated in the heart of Haymarket, the property is ideally positioned to benefit from the new developments planned for the Central Station precinct. MKH previously owned the Metro on Pitt hotel, which was compulsorily acquired as part of the Sydney Metro project. As experienced owners and operators of hotels, the company had been searching for a replacement property in the Sydney market.
Novotel Brisbane Acquired for AUD67.9 Million in Brisbane, Australia
The 296-key Novotel Brisbane in Australia has been acquired by Australia-based Amora Hotels & Resorts for AUD67.9 million from Singapore-based CDL Hospitality Trusts (“CDLHT”). CDLHT is managed by M&C REIT Management Limited and M&C Business Trust Management Limited, subsidiaries of Millennium & Copthorne Hotels Limited, a global hospitality group. The property is situated on the north-eastern edge of the Central Business District next to Central Railway Station and a short distance from many key demand generators. The 15-storey hotel features full-service restaurant and bar, café, conference facilities for up to 400 delegates, 70 car parking bays, an outdoor swimming pool and fitness centre. The property is currently leased until early 2021 at which time it will be rebranded, and owner-operated by Amora Hotels & Resorts. According to Vincent Yeo, Chief Executive Officer of CDLHT’s managers, the decision to sell the property is part of the company’s proactive asset management strategy. In addition, it allows the company to recycle capital to maximise long-term value for the stapled securityholders. The proceeds will mainly be used to repay existing borrowings, which will further strengthen CDLHT’s balance sheet and enhance its financial flexibility through increased debt headroom, or fund acquisitions if suitable opportunities arise.
Destination Capital Set to Acquire Hotels
Thailand-based Destination Capital has reached an agreement with Thailand-based KTB Securities Thailand (“KTBST”) and MFC Asset Management (“MFC”) to introduce the DESCAP 1 private equity trust. The trust will acquire hotels in Thailand which Destination Capital will source, acquire, reposition and asset manage hotels that acquired by DESCAP 1, while KTBST will act as trust settlor and trust manager. MFC is a trustee under the Securities and Exchange Commission (“SEC”) regulated structure. The target hotels to be acquired will be freehold and are located in prime destinations such as Bangkok, Pattaya, Hua Hin, and Phuket where it is expected to see a faster rebound from COVID-19 pandemic. The trust will target two investor groups which are institutional investors and high net worth individuals. DESCAP 1 is now under SEC regulation and will be available to both foreign and domestic investors by the end of October 2020 with a target of THB2.5 billion trust capitalisation.
Sunway Resort Hotel & Spa to Spend USD60 Million on Major Facelift
Malaysia-based Sunway Group, through unit Sunway City Kuala Lumpur Sdn Bhd, parent company of Sunway Resort Hotel & Spa (“Sunway”), has announced a USD60 million budget to transform the flagship property in Kuala Lumpur. This is expected to be the property’s most extensive facelift in its 24-year history. The revamp is part of the group’s drive to establish Malaysia’s first fully integrated township as Asia’s leading integrated resort complex and a regional tourism hub. Scheduled to reopen in phases from March 2021, Sunway will feature 478 rooms, alongside a restaurant, six cascading waterfalls among two landscaped pools, and extensive family and health facilities. Sunway’s transformation takes its place alongside the family-focused Sunway Lagoon theme park which stretches over 35 hectare and six entertainment zones. For business visitors, the Sunway Pyramid Convention Centre features 7,157 square metres of hi-tech space, flexible configurations, and capacity to host approximately 4,000 delegates theatre-style or 6,000 for a cocktail reception for corporate events. As part of Sunway Group’s sustainability commitment, an urban vertical farm by FutureX, led by Sunway Innovation Labs, will be a key source of ingredients for all restaurants, offering healthy and farm-fresh produce for guests.
Dynamic Pricing, Perishability, Decoupling in India's Service Industry - By Ajay Mehtani
Is it time for the hotels sector to embrace some of the revenue management practices followed by the aviation industry? Read on to know more.
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