Hotel industry and travel news from around the Asia Pacific region: Artotel acquired Indonesia franchise of Kyriad with new round of financing, Millennium Hilton Seoul to be redeveloped as mixed-use complex and more...

Millennium Hilton Seoul to be Redeveloped as Mixed-Use Complex
South Korea-based largest real estate investment firm, IGIS Asset Management Co. (“IGIS”), has signed the Memorandum of Understanding to acquire Millennium Hilton Seoul for approximately KRW1 trillion (USD845 million) from Singapore-based City Developments Limited (“CDL”). Located at the bottom of Mount Namsan and next to Seoul Station, the 22-floor hotel currently has 700 guest rooms with a land area and gross floor area of 18,760 square metres and 82,856 square metres, respectively. Upon the acquisition, the company plans to redevelop the property into a mixed-use complex comprising a hotel, office and retail spaces. The hotel was previously owned by South Korea-based Daewoo Group before it went bankrupt during the Asian Financial Crisis in 1997 and 1998. In 1999, CDL acquired the hotel for KRW260 billion (USD213.5 million).

Artotel Acquired Indonesia Franchise of Kyriad with New Round of Financing
Indonesia-based Artotel Group (“Artotel”) has completed a new round of Series B funding for an undisclosed sum, led by Singapore-based asset manager, Indies Capital Partners, with participation from Indonesia-based Benson Creativestment. Artotel will utilise the fund to expand in Indonesia’s hospitality sector through an aggressive merger and acquisition strategy in first- and second-tier cities, as well as new tourism destinations across Indonesia such as Sentul, Malang, Cepu and Banyuwangi, where rapid development and improved infrastructure are seen. The group is in the process of rolling out 29 new properties across Indonesia, expanding its portfolio to over 50 by 2023. In tandem with the investment, Artotel has also acquired the Indonesia franchise of Kyriad, a three-star hotel brand of France-based Louvre Hotels Group, adding eleven hotels and 1,300 rooms to Artotel’s portfolio. Kyriad brand will be developed in cities such as Purwoketo and Jember where the Artotel brand is not feasible to develop due to project cost and the local price level. Currently, Artotel is working on another acquisition which will be revealed in November.

CPG Hotels to Acquire and Rebrand Rendezvous Hotel Christchurch
New Zealand-based CPG Hotels (“CPG”) has announced the acquisition of Pacific Tower in central Christchurch and will be rebranding The Rendezvous Hotel to its boutique luxury brand, Fable Hotels and Resorts (“FHR”). The acquisition of the 23-storey development in Christchurch includes The Rendezvous hotel, from first to 14th level, and several levels of privately owned apartments. The 171-key hotel will undergo a major refurbishment and is slated to open in May 2022. It will feature a seafood restaurant that has a menu designed by the award-winning Group Executive Chef Jinu Abraham. The CPG Group’s operations manager, Ronnie Ronalde, mentioned that this latest acquisition is an exciting step for the brand’s planned expansion in the South Island of New Zealand. FHR currently owns and operates over 60 rooms across two properties in New Zealand, 10-suite Hotel Fitzroy in Auckland and 50-key Fable Dunedin in Dunedin.

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