Hotel industry and travel news from around the Asia Pacific region: Far East sells Dorsett London, Australia’s State Governments announce new measures to boost tourism recovery and more...
Ascott to Acquire Two Properties in Paris and Hanoi
Singapore-based The Ascott Limited (“Ascott”), a wholly-owned subsidiary of CapitaLand Limited (“CapitaLand”) will be acquiring two properties in France and Vietnam for a total of SGD210 million through the Ascott Served Resident Global Fund (“ASRGF”), its private equity fund with Qatar Investment Authority. Both properties will be acquired on a turnkey basis and are expected to open in 2024. Ascott will acquire a freehold asset in Paris, their first co-living development in Europe that will be refurbished and launched under the lyf brand. Named livelyfhere Gambetta Paris, the 139-unit property is located at the 20th arrondissement, near a variety of arts establishments and eateries including galleries, cinemas, and cafés. The second acquisition is the 364-unit Somerset Metropolitan West Hanoi. It is strategically located in Hanoi’s new central business district and is close to several government agencies on top of local and international corporations. The Hanoi property is also within a 10-minute drive to the Vietnam National Convention Centre and a half-hour drive to the Noi Bai International Airport. These acquisitions will boost Ascott’s fund assets under management (“FUM”) to SGD8 billion.
Far East Consortium Sells Four-star Dorsett London Hotel
Hong Kong-based Far East Consortium (“FEC”) has agreed to sell the 267-room Dorsett City London Hotel to Aldgate Hotel Bidco, a subsidiary of two US-based investment firms, Highgate Hotels and Cerberus Capital Management, for USD160.4 million. Upon the acquisition, FEC is expected to gain USD69.8 million from the sale. FEC’s wholly-owned subsidiary, DHI Hotel Management UK, will provide hotel management services for the four-star hotel at 9-13 Aldgate High Street, a five-minute walk from the iconic Gherkin tower. Chris Hoong, FEC’s managing director commented that the sale highlighted the tremendous value hidden in FEC’s portfolio and that they welcome new opportunities to deploy capital at attractive rates of return. FEC also mentioned that the net proceeds will be used for general working capital which will help recycle capital, increase liquidity, reduce leverage, and reap income from management fees as the hospitality sector stabilises post-pandemic. As of September 2020, FEC’s portfolio includes 31 hotels with an estimated 8,100 rooms and 13 hotels in the pipeline across Asia, Australia, and Europe. When all FEC’s hotels become operational, the company’s portfolio will increase to 44 hotels with approximately 11,350 rooms.
Thailand’s Cabinet Approves Phuket Sandbox Scheme
On 23 June 2021, The Thai Cabinet has approved the Phuket Sandbox Tourism Scheme, where vaccinated international tourists can visit the island without serving a 14-day quarantine. Slated to begin on 1 July 2021, the scheme currently has five flights from Singapore, Qatar, Israel, and the United Arab Emirates. Visitors that wish to travel out of Phuket and into the rest of Thailand are required to stay on the island for a minimum of 14 days and would be subjected to multiple COVID-19 tests. In addition, the government has also announced that Koh Samui, Koh Phangan, and Koh Tao would also be opened to vaccinated tourists from 15 July, where tourists are required to travel via a “sealed” route scheme. For the first three days, visitors are to reside within approved hotels but can travel within sealed routes from days 4 to7, and travel to the other two islands from days 8 to15. Prime Minister, Prayut Chan-o-cha, mentioned that the implementation of the Phuket sandbox would test Thailand’s ability to balance its economic recovery and the maintenance of its public health security. He remains optimistic that other tourism areas would progressively open to the international market.
Australia’s State Governments Announce New Measures to Boost Tourism Recovery
The Victorian and South Australian government have announced a new round of travel initiatives to boost regional tourism recovery. AUD16 million investment will fund the fourth release of 80,000 regional travel vouchers valued at AUD200 each for distribution to support attraction and accommodation operators. This scheme is part of the AUD32.2 million Regional Tourism Support Package with additional measures such as AUD4,500 top-ups for COVID-19 impacted travel operators and AUD15,000 grants for alpine businesses to provide a COVID-safe skiing environment. Meanwhile, South Australian government is distributing more than 50,000 travel vouchers to South Australians under the fourth round of Great State Voucher Scheme. Participants will either get an AUD100 voucher for use on participating Adelaide and North Adelaide hotels, or an AUD50 voucher for use across suburban and regional South Australia. A new ‘mid-week stays’ program is also introduced to attract visitors into Adelaide from Sunday to Thursday by offering discounted hotel deals. Both governments believe the initiatives could support the tourism industry and sustain jobs as Australia heads into the winter months.
Heritage Dunedin Leisure Lodge Sold to Distinction Hotel Group
New Zealand-based Distinction Hotel Group (“DHG”) has acquired the 77-key Heritage Dunedin Leisure Lodge from New Zealand-based Skyline Enterprises Limited’s (“Skyline”) for an undisclosed sum. Located on Duke Street, the property is Dunedin’s only garden hotel that offers a range of rooms and event spaces. Based on Skyline ’s Chief Executive, Geoff McDonald, the hotel has been part of their portfolio for 35 to 40 years and contributed to almost 10% of the company’s overall revenue. He added that the performance of the hotel had been consistently strong, due to the increasing university guests and corporate travellers. The hotel is strategically located within walking distance of the multi-purpose Forsyth Barr Stadium, which has helped to contribute to its consistent performance. According to Mr McDonald, Dunedin’s strong reliance on the university sector near the hotel has allowed their business to be less impacted by the pandemic and has managed to recover well following the COVID-19 lockdown. The sale would allow Skyline to focus on its core gondola and luge park businesses in Queenstown and Rotorua. Currently, DHG’s portfolio of hotels spans across New Zealand, including the 121-key Distinction Dunedin Hotel on Liverpool Street, Dunedin.
Kalibo International Airport Inaugurated in Aklan Province, Philippines
On 4 June 2021, the Department of Transportation and the Civil Aviation Authority of the Philippines inaugurated the newly restored Kalibo International Airport in Kalibo, Aklan Province. The development project incurred a total cost of PHP48.4 million, of which, PHP19.5 million is dedicated to the improvement of the international passenger terminal, which was completed in September 2020. The passenger terminal has been expanded from 1,584 to 2,633 square metres, with its capacity increasing from 344 to 406 passengers. In addition, the upgraded passenger terminal includes additional spaces for the operations of the Customs and Immigration Bureau and several areas that would support the flow of passengers. PHP9.9 million was assigned to the reblocking of the apron pavement, which has eliminated the potential hazard for aircraft and PHP18.9 million for the overall repair and restoration of the passenger terminal building, aircraft rescue, firefighting, shed, and the administration building. The Department of Transportation Secretary, Arthur Tugade, mentioned that the airport matches international standard, and would have an overall positive impact on Aklan’s economy. The inauguration follows the news of the launch of the National Capital Region Plus bubble, which grants residents of General Community Quarantine the ability to visit Boracay in the Aklan Province.
Nintendo Gallery Archive is Set to Open in Kyoto by 2024
Japan-based gaming company, Nintendo Company (“Nintendo”) is opening a Nintendo Gallery Archive in Kyoto Prefecture by 2024, after launching the Super Nintendo World with real-life Bowser’s Castle and Mario Cart at Universal Studios Japan in March this year. The gallery will be based in an old factory in the city of Uji, after taking into consideration of Uji’s redevelopment plan of the nearby Ogura Station area. The factory used to manufacture various Western and Japanese hanafuda playing card, the original business of Nintendo. The transformed factory will be used to exhibit Nintendo’s history and gaming products, and a full Nintendo experience with classic games such as Super Mario and Donkey Kong. Nintendo hopes that the gallery can share the company’s product development history and philosophy with the public.
Two Piers in Southern Thailand to Receive an Upgrade
Two piers in Southern Thailand will be receiving an upgrade through a THB200 million refurbishment plan. THB140 million has been allocated to refurbish Pak Meng Pier in Trang province and THB59.6 million to expand the Sala Dan Pier in Koh Lanta in Krabi. Situated in Hat Chao Mai National Park, the Pak Meng Pier is utilized by visitors to board ferries, high-speed boats, and long-tail boats for their visit to various islands in the Trang Province including Koh Ngai, Koh Muk and Koh Kradan. Slated to complete by the end of June, the 20-year-old pier will have a brand-new passenger terminal, two piers, and longer bridges to allow more vessels to dock. Meanwhile, the Sala Dan Pier on Koh Lanta will also have a new passenger terminal and ticket office to accommodate additional passengers. The covered walkway will be decorated with numerous art sculptures as a gesture to welcome guests. The new Sala Dan Pier is expected to facilitate tourists’ commute to the nearby Koh Phi Phi Island, further to Phuket or other islands in Trang and Satun.
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