Hotel industry and travel news from around the Asia Pacific region: Accor expands serviced apartment portfolio in Singapore and more...
Summit Hotel Properties to acquire 27-hotel portfolio for USD822 million
US-based Summit Hotel Properties Inc (“SHP”) in its existing joint venture with Singapore-based sovereign wealth fund, GIC Private Limited, has announced the acquisition of 27 hotels totalling3,709 guestrooms and two carpark structures. The portfolio has a collection of high-quality distinctive brands from giant hotel operators such as Marriott, Hilton, Hyatt, and InterContinental Hotel Group. The transaction comprises USD776.5 million for the 27-hotel portfolio, USD24.8 million for the two parking structures and USD20.7 million for various financial incentives. The average effective age of the hotels in the portfolio is 3.8 years and up to 70% of the guestrooms were built since 2015, this allows SHP to expect minimal near-term capital expenditure for refurbishment. Additionally, the portfolio is expected to generate a stabilised net operating income yield of 8% to 8.5%. With the acquisition, SHP’s total room count will increase by approximately 35% to over 15,000 keys across 100 hotels in 42 markets within the US. Approximately 50% of the portfolio is located in four submarkets of the greater Dallas/Fort Worth metropolitan statistical area. SHP President and Chief Executive Officer mentioned that this investment will significantly expand their presence in the high-growth Sun Belt markets in the Southern US region.
Accor Expands Serviced Apartment Portfolio in Singapore by Signing Management Agreement
France-based multinational hospitality company, Accor S.A. (“Accor”), expands its serviced apartment portfolio in Singapore by signing a management agreement to operate 8 on Claymore Serviced Residences located in the Orchard Road area. According to the contract agreement, the 85-key property is scheduled for a soft refurbishment for all public areas and residence rooms by mid-2022. The rooms will feature a range of modern accommodation, from executive studios to two- and three-bedroom apartments, each with spacious living areas, fully equipped kitchens, in-room laundry facilities, and elegant bedrooms. The serviced apartment consists of a multi-functional Club Lounge, where guests can enjoy breakfast, host meetings, and participate in a range of social activities. The lounge also includes a pool and a 24-hour fitness centre. Accor currently has 28 properties in Singapore, including Fairmont, Raffles, Sofitel, Swissotel, Novotel, Mercure, and ibis brands.
Vietnam Outlines Plans to Expand and Upgrade Railway by 2030
Vietnam has announced plans to expand and upgrade its railway system by 2030. Spanning across 4,800 kilometres, the 16 plans were announced with an estimated cost of VND240 trillion (USD10.3 billion). Nine of the 16 railways would consist of 1,500 kilometres of newly constructed high-speed lines, connecting Hanoi’s Ngoc Hoi station and Ho Chi Minh City’s Thu Thiem Station. The remaining seven projects span 2,440 kilometres and aim to upgrade existing lines that connect Ho Chi Minh City, Hanoi, Lao Cai, Hai Phong, Chi Linh, Luu Xa, and Kep. Through these plans, the government aims to improve connectivity within the country, with a large emphasis being placed on the North-South high-speed railway connecting Hanoi and Ho Chi Minh City. The plan foresees that rail would carry 11.8 million tonnes of freight and 460 million passengers annually by 2030. The rail network is expected to expand to 6,354 kilometres across 25 lines by 2050.
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Hotel and Serviced Residences Operators at a Glance
By Chee Hok Yean
Hotel and Serviced Residences Operators at a Glance captures the top five international and regional operators, as well as the top ten international and regional brands by tiers: Luxury, Upscale, Midscale and Economy.
