Hotel industry and travel news from around the Asia Pacific region: Thailand to launch largest train station in Southeast Asia replacing current hub Sofitel Queenstown sold and more...
Padaeng Industry to Acquire Two Luxury Hotels in Bangkok
Thailand-based renewable energy firm, Padaeng Industry (“PDI”) has announced its plans to acquire a 51% stake in Urban Resort Hotel and Waterfront Hotel, which are the owning companies for the 299-key Four Seasons Bangkok at Chao Phraya River and 101-key Capella Hotel Bangkok, respectively, from Landmark Holdings, a subsidiary of Thailand-based Country Group Development. Mr Tommy Taechaubol, the managing director of PDI, stated that the total enterprise value of these two hotels is at THB10 billion. The hotels are situated on the last remaining waterfront plot along the Chao Phraya in Bangkok, spanning over 35 rai (5.6 hectares). The company is expected to finance half of this venture through its capital reserves and bank loans, and the other half from capital injections. This acquisition is part of PDI’s new strategic direction, which aims to diversify its portfolio by entering the hospitality and real estate industry. This investment follows PDI’s acquisition of a plot in Sathon to develop a 209-room luxury hotel valued at THB1.5 billion, which is slated to complete by 2023. The company expects that the revenues generated from these two hotels would surpass PDI’s existing business in renewable energy supply and plans to sell its non-core assets to finance acquisitions in the future.
Sofitel Queenstown Sold to New Zealand Hotel Fund for NZD60 Million
Following the collaboration between Russell Group, Lockwood Group, and the New Zealand Superannuation Fund (“NZ Super Fund”) under the New Zealand Hotel Holdings Asset LP entity in 2019, the partnership has acquired Sofitel Queenstown Hotel and Spa, for an estimated NZD60 million. Situated within New Zealand’s top tourism destination site on a leasehold land in the heart of Queenstown, Managing Director of the Russell Group, Mr Brett Russell, highlighted that the 82-key Sofitel Queenstown is a strategic addition towards the NZD300 million hotel portfolio. Will Goodwin, NZ Super Fund’s Head of Direct Investments, further added that this acquisition is part of the fund’s strategic objective to increase assets in provincial tourism territories, such as Auckland, Queenstown, and Rotorua. France-based multinational hospitality company, Accor S.A., will continue to operate the hotel with all staff and operations remaining the same. Upon the expiration of the lease, there are plans to convert it into a five-star hotel. The acquisition will bring the current partnership portfolio to five including the Four Points by Sheraton and Adina Auckland Britomart located in Auckland, the BreakFree Hotel in Christchurch, and the Holiday Inn Hotel in Rotorua.
Cambodia Begins USD150 Million Road Projects to Modernise Siem Reap City and Tourism
The Cambodian Government will construct 38 roads in Siem Reap City in an effort to modernise the city and improve tourism experience. The project will connect the town, suburbs, tourist attractions and national road networks. When completed, it is expected to reduce traffic congestion, improve connectivity, and grow the transportation network, which will in turn attract investors and tourists. This USD150 million development is part of the Siem Reap Tourism Development Master Plan 2020-2035, which aims to urbanise and transform Siem Reap into a smart city while preserving the culture and architecture. Prime Minister of Cambodia, Mr Hun Sen, mentioned that Siem Reap is one of the three provinces, along with Phnom Penh and Sihanoukville, to be developed into main destinations for tourism, culture, history, and nature. Meanwhile, the government is also renovating about nine kilometres of Siem Reap River to enhance the city’s attractiveness.
Thailand to Launch Largest Train Station in Southeast Asia
Thailand’s Ministry of Foreign Affairs unveiled plans to launch Bang Sue Grand Station in 2021, which will be the largest train station in Southeast Asia. Occupying an area of approximately 518 hectares, this station could accommodate 26 to 40 trains simultaneously with a maximum capacity of 600,000 passengers daily. The station aims to alleviate Bangkok’s persistent traffic congestion and replace Hua Lamphong, as the capital’s railway hub. In addition to its intercity trains, Bang Sue will serve underground, commuter and high-speed trains that connect Suvarnabhumi, Don Mueang, and U-Tapao international airports. The Ministry mentioned that through these railway networks, the 220-kilometre route between Don Mueang and U-Tapao could take less than an hour. This station would also be a part of Thailand’s first high-speed train project, which runs between Bangkok and Nong Khai. The high-speed train project is expected to further extend through Laos and into Kunming, as part of China’s Belt and Road Initiative. The ministry believes that the construction of Bang Sue would be a catalyst for developing a new Central Business District around the station and improve connectivity within Thailand.
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