The Ascott and Quest Strike Docklands Deal in Melbourne

As part of the strategic partnership with Australia’s Quest Apartment Hotels, The Ascott Limited has struck a deal to develop its first serviced residence in Docklands, Melbourne. The 221-unit property was acquired for A$71 million ($US53 million) through a 50:50 joint venture between Ascott and Qatar Investment Authority (QIA). Quest will lease the serviced residence, which will be named Quest NewQuay Docklands, and operate it under Quest's franchise when the property opens in 2019. Quest NewQuay Docklands will be the largest property in Quest's portfolio. According to the Quest-Ascott alliance formed in 2014, Ascott is expected to invest A$500 million (US$380 million) in new properties that Quest will secure for its franchise in Australia, until 2019. Additionally, Ascott has also acquired 20% stake in Quest with an option to increase it to 30%. According to Ascott’s CEO, Lee Chee Koon, "This property in Melbourne is our first acquisition in Australia in partnership with QIA, and our fourth within a span of seven months.” “We expect these strong partnerships to gather more momentum as we pursue Ascott’s target of 80,000 apartment units globally by 2020”, he added. 

Kensington Hotel Opens in Saipan

South Korean conglomerate, E-Land Group, opened its first overseas hotel development, the Kensington Hotel Saipan, last week on July 21. The Kensington Hotel, which used to be the Palms Resort Saipan, is the third E-Land-owned hotel on the island, after the Coral Ocean Golf Resort and Pacific Islands Club Saipan, and is Saipan’s first and, so far, only five-star hotel. The hotel was originally set to open in December last year, after renovation, but the opening was delayed due to a typhoon. Kensington Hotel Saipan features 305 rooms and eight suites, each offering an ocean view. The building has the appearance of a docked marine cruise ship and the marine theme is reflected throughout in its design, starting from the lobby to other public areas. Starting from one clothing shop in the 1980s, E-land now boasts an annual US$9.2 billion revenue as a stakeholder in fashion, food, hotels, resorts and theme parks in Korea and overseas investments. The group owns 26 hotels in South Korea that includes Kensington Jeju in Jeju Island, Lexington Hotel, Kensington Resort and Kensington Flora Hotel. 

Pan Pacific Hotels Group to Open Flagship Beijing Hotel in 2017

Pan Pacific Hotel Group (PPHG) will launch the first Pan Pacific Hotel in Beijing in the first half of 2017. Strategically located in the prime Xicheng district, the hotel will be within a 2.5-kilometer radius to several historical landmarks, such as the Tiananmen Square and Forbidden City, and will offer easy access to the city’s administrative center and the Financial Street. The Pan Pacific Beijing will feature 223 contemporary guest rooms and suites, along with a comprehensive conferences and meetings space. Other facilities will include an exclusive club on Level 14, a retractable roof with a 20-meter indoor swimming pool, a conservatory-style Winter Garden on Level 1 connected to the all-day dining restaurant, a signature Chinese restaurant, a Japanese restaurant, and a dedicated wellness floor featuring a swimming pool, a luxury spa and a fitness center. Bernold Schroeder, Chief Executive Officer of PPHG, commented “As our flagship hotel in China, Pan Pacific Beijing will set the benchmark for planned expansion into other key first-tier cities.” With five other properties in Suzhou, Tianjin, Xiamen and Ningbo, China is currently the group’s biggest operating market outside Singapore.

Kuala Lumpur-Singapore High Speed Rail to Commence in 2026

At the signing of a Memorandum of Understanding (MoU) last week, the governments of Malaysia and Singapore have agreed to a slew of measures for the development of the Kuala Lumpur-Singapore High Speed Rail (HSR). The HSR operations are projected to start by 2026, with constructions expected to take place between 2018 and 2025. A legally binding agreement for the development of the HSR is set to be signed at the end of this year. The tracks will stretch 350 kilometers in total, of which 335 kilometers will be in Malaysia. The line will consist of eight stations, namely Singapore, Iskandar Puteri, Batu Pahat, Muar, Ayer Keroh, Seremban, Putrajaya and Kuala Lumpur. With top speeds of 300 kilometers/hour and a capacity of around 1000 passengers, the HSR is expected to cut travel time between Singapore and Kuala Lumpur down from the current 11 hours to just 90 minutes. Two train operators will be appointed – one to run the international routes, including the 90-minute non-stop Singapore-Kuala Lumpur express service and the 15-minute Singapore-Iskandar Puteri shuttle service, and the other to run a domestic service within Malaysia.

Thailand Tourism Officials Plan to Attract More Visitors from Myanmar

In recent years, Myanmar’s economic growth has helped boost the discretionary income of its citizens. However, out of a population of approximately 54 million, only 1.15 million have ever traveled abroad as tourists. In the first quarter of 2016, 142,331 tourists from Myanmar visited Thailand, registering an increase of almost 40% as compared the same period last year. This can partly be attributed to the new policy introduced last August, which allowed visa-free travel for tourists arriving by air. Tourism Authority of Thailand (TAT) is planning a new campaign to attract more visitors from Myanmar for shopping and medical care, and they will appoint marketing executives in Myanmar to promote such trips. TAT expects the number of visitors from Myanmar to reach 345,000 visitors in 2016, an increase of 5.7% from previous year, and this number is expected to grow by another 7.3%, to 370,000 visitors, in 2017. The average spend for a tourist from Myanmar is expected to be approximately 43,000 baht per trip this year, which is an increase of 5.7% from previous year, the biggest increase from other countries in the Association of Southeast Asian Nations (ASEAN).   

Dissecting the Deal: Analyzing Mergers and Acquisitions

This year, at the Tourism, Hotel Investment & Networking Conference (THINC) Indonesia, a select panel of regional industry specialists will engage in a stimulating discussion on Mergers & Acquisitions (M&A) in the South East Asian hotel market. The panelists will share their perspectives on the financial, economic and business factors affecting the M&A market, while providing an insider’s view on a few recent deals, and their outlook for the future of this market. The session, to be moderated by Hok Yean CHEE, HVS’ Managing Partner – Asia Pacific, will feature subject matter experts as panel members, namely Andreas Flaig, Executive VP Development, Carlson Rezidor Hotel Group; Andrew Turner, VP Acquisitions – Asia, Mantra Group, and David Wray, VP Acquisitions and Business Development - SE Asia and Pacific Rim, Wyndham Hotel Group, among others. At the conference, HVS will also release its annual publication – Indonesia Hotel Watch 2016. Marking the release, Manav Thadani, Chairman – Asia Pacific, HVS, will share the key findings of the report in his opening keynote address.
REGISTER NOW FOR THINC INDONESIA 2016 | 31 AUGUST & 1 SEPTEMBER | BALI, INDONESIA.

Absolute Share Price Performance, as on 21 July 2016