Hotel industry and travel news from around the Asia Pacific region: South Korea’s Lotte acquires Kimpton Hotel Monaco, high speed China-Laos railway officially opened and more...
AEW Capital Management Acquired Hong Kong Hotel for HKD1.65 Billion
US-based AEW Capital Management, L.P. and Hong Kong-based Crystal Investment Limited have recently acquired Hotel Sav in Hong Kong from Hong Kong-based Chuang’s Consortium International Ltd for HKD1.65 Billion. Situated at Wuhu Street in Hung Hom area, the 388-key hotel features an indoor lounge, a 24-hour fitness centre, a parking lot, two meeting rooms, as well as 933 square metres retail space on the first two floor. It is believed the new buyer will convert the property into co-living, as the property is located in close proximity to three metro stations, Hong Kong Polytechnic University, and the Intercity Through Train which connects Hong Kong with Guangzhou, Shanghai and Beijing.
South Korea’s Lotte Corporation has Acquired Kimpton Hotel Monaco Chicago
South Korea-based LOTTE Corporation (“Lotte”) has been revealed as the purchaser of Kimpton Hotel Monaco Chicago from US-based Xenia Hotels & Resorts, Inc for USD36 million. Situated on the border of the Loop, the 191-key hotel is located at an excellent location with walking distance to the Chicago River and all touristic attractions. The hotel features one restaurant and bar, 380 square metres meeting and event spaces, and a 24-hour fitness centre. The previously unknown buyer, Lotte, has been expanding its presence in the States in recent years, debuted with the 822-key Lotte New York Palace hotel in 2015 and followed up with the 189-key Lotte Hotel Seattle in 2020. It is believed that the property will be rebranded into Lotte’s.
Minor International and Abu Dhabi Fund for Development Announce Joint Venture on Five Assets in Thailand
Thailand-based Minor International Public Company (MINT) and UAE-based Abu Dhabi Fund for Development (ADFD) announced a new joint venture agreement to hold shares in four tourist resorts and a plaza mall in Thailand namely: Anantara Riverside Bangkok Resort, Avani+ Riverside Bangkok Hotel, Riverside Plaza Bangkok, Anantara Layan Phuket Resort and Four Seasons Resort Koh Samui. MINT will be holding 60% of the share, while 40% will be from ADFD. The aggregate selling price of the portfolio is USD 104.8 million, implying a 12.5x to 2019 EBITDA on an overall basis. This valuation reflects strong confidence in MINT asset management performance and the future economic projections for Thailand’s tourism sector. The five assets will continue to be operated and managed under the existing brands of MINT. Established in 1971, ADFD is a UAE-linked government entity that has invested in more than 500 projects and companies with more than USD 40 billion in assets.
High Speed China-Laos Railway Officially Opened
In early December 2021, Laos inaugurated the Boten-Vientiane railway, a 414-kilometer high-speed railway that runs between the capital Vientiane and the town of Boten on the Laos-China border. The new railway holds the possibility of transforming Laos, a landlocked country and one of the least industrialized in ASEAN, into a land-linked hub that connects to the broader region. This USD6 billion project is equivalent to one-third of Laos’s GDP and is funded by China as part of its Belt and Road Initiative (BRI). It is a linchpin of the deepening ties between the two countries. Traveling to the Chinese border will now take less than four hours compared to the 15 hours by car and costs USD 33 for a second-class seat. Currently, most China-ASEAN trade, worth more than USD600 billion in 2020, relies mainly on coastline routes, with the Laos-China trade representing merely two percent of the total China-ASEAN trade. According to a World Bank report, transit trade through Laos could increase to 3.9 million tons by 2030 from the 1.6 million tons reported in 2016.
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