Hotel industry and travel news from around the Asia Pacific region: SC Capital Partners secures USD1 Billion for Hospitality Fund, Melbourne’s Jam Factory redevelopment receives approval and more...

SC Capital Partners Secures USD1 Billion for Hospitality Fund 

Singapore-based asset manager SC Capital Partners Group (“SCPG”) has made an initial commitment with two international institutional investors with its Japan Hospitality Fund (”JHF”) for USD500 million, with a top-up option to increase the total equity to USD1 billion. The JHF was launched in mid-2021, with aims to target hard-hit Japanese hotels and other hospitality-related investments across the country. The JHF will continue to focus on acquiring, repositioning, or operating hospitality-related assets, including real estate, trust beneficiary interest representing related companies, and REITs, in hopes of capitalizing on the recovery of the tourism market in the world’s third-largest economy. The JHF aims to generate annual returns to investors of 14 to 16 percent. Established in 2014, SCPG has USD7.3 billion in assets under management. 

Alivio Group Acquires Sunshine Tower Hotel in Cairns for AUD10.7 Million

Australia-based Alivio Group has acquired the Sunshine Tower Hotel in Cairns for AUD10.7 million. The 61-key Sunshine Tower Hotel which was put up for sale after all 63 lots within the Body Scheme was amalgamated and completely refurbished with the building having been fully refurbished for the new owner. The hotel represents a strong per key rate and yield in line with pre-COVID levels.

Melbourne’s Jam Factory AUD1.5 Billion Redevelopment Receives Approval

The City of Stonnington in Melbourne has recently approved Chapel Street’s Jam Factory Redevelopment Plan, led by Australia-based developer Gurner Group, Australia-based Qualitas Limited and Australia-based Newmark Capital Limited. The project includes a five-tower precinct composed of retail, residential, hotel and commercial components. A five-star hotel of 180-200 rooms, 18,500 square metres of retail space, 20,000 square metres of commercial space, and four residential towers with over 400 luxury residences are all included in the scheme. The entire project is expected to inject more than AUD800 million to the Victorian economy, with hotel guests bringing in over AUD12 million every year. After completion of the redevelopment, the Jam Factory will become the signature destination of Melbourne city.

Accor to Develop more than a Thousand JO & JOE Hotels in China

France-based Accor S.A. (“Accor”) in collaboration with Ennismore announced a long-term master franchise agreement with China-based Country Garden's core alliance enterprise, Funyard Hotels and Resort ("CG"). By collaborating with Funyard, Accor and Ennismore will introduce the lifestyle brand JO&JOE to China with a commitment to open at least 1300 JO & JOE hotels with more than 100,000 guestrooms. JO&JOE is part of Ennismore, a global collective of lifestyle brands. Funyard will be the exclusive strategic partner of the JO&JOE brand in China. Accor Greater China has recently surpassed the 500 hotel milestone, with a robust pipeline of new hotels opening in 2022 and beyond.

Ascott Targets 150 lyf Properties by 2030 

Singapore-based CapitaLand Investment’s The Ascott Limited (“Ascott”) has set a target to sign 150 properties with over 30,000 units under its lyf co-living brand by 2023. There are currently 17 lyf properties with over 3,200 units in 14 cities and nine countries. Ascott also announced the launch of the lyf Innovation Lab during the announcements of the official opening of lyf one-north Singapore, the 324 keys co-living property. In 2022, five other lyf properties are planned to open globally in cities including Bangkok, Cebu, Kuala Lumpur, Melbourne and Xi'an, with another five scheduled to open in Beijing, Danang, Ho Chi Minh City, Manila, and Paris by 2025.

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