GIC and a group of international investors acquire a 55 per cent stake in AccorInvest

Singapore’s sovereign wealth fund (“SWF”), GIC Private Limited (“GIC”), and a group of investors, including Saudi Arabia’s SWF, the Public Investment Fund (“PIF”), Credit Agricole Assurances, Colony NorthStar, and Amundi among others have signed an agreement to acquire a 55 per cent stake in AccorHotels’ property business arm, AccorInvest. The sale would result in a cash contribution of €4.4 billion for AccorHotels when it is finalised in Q2 2018, subject to certain regulatory approvals. AccorInvest’s 891 hotels would then be operated by AccorHotels under long-term contracts. For most of its hotels that are in the economy and midscale segment, it will be an average 30-year contract (including a ten-year renewal option) and for its upscale and luxury hotels, it will be a 50-year contract (including a 15-year renewal option).

EL Development to develop hotel at Singtel’s Hill Street site

Singapore-based property group EL Development Private Limited (“EL Development”) has acquired a 99-year leasehold interest of Singapore Telecommunications Limited’s (“Singtel”) Hill Street site for S$118 million, exclusive the approximate S$140 million payable to the state for the lease-upgrade premium and a differential to change the use of the site. The Urban Redevelopment Authority (URA) has granted Singtel provisional permission for the redevelopment of the site, comprised of two adjoining land plots, into a 172-key hotel and over 2,000 square feet of retail space. However, EL Development is planning to submit a new application to URA for a mid- to high-end business hotel of over 300 rooms. The total development cost is expected to be between S$320 and S$360 million. As Singtel will be leasing back the property until mid-2019, EL Development expects to commence the redevelopment of the site in July 2019 and complete the project in Q3 2021. The re-development of the Singtel Hill Street site will be EL Development’s first hotel project, having focused on the development of industrial and residential projects previously.

Minor Hotels launches a new upscale brand Avani+

Thailand’s Minor Hotels has announced the launch of its new upscale brand, Avani+, a sub-brand of Avani. The Avani+ will be positioned higher than Avani in respect to location, design, food and beverage quality, products and services, and average room rates. The first Avani+ property launched on March 1, 2018 in Luang Prabang, Laos with 53 rooms. Designed with French colonial-style interiors, facilities at the Avani+ Luang Prabang include a gym, spa, yoga pavilion and a 25-metre swimming pool. Launched in 2011, Avani Hotels and Resorts currently operates 3,800 keys in 23 properties across 15 countries, with a further 3,000 new keys in the pipeline.

InterContinental Brand to Debut in Tianjin, China

InterContinental Hotels Group (“IHG”) recently announced InterContinental Tianjin Yujiapu Hotel & Residences to be opened next month in Tianjin, China. It will be the first InterContinental-branded hotel in Tianjin and the group’s first residence in Greater China. Strategically located in Yujiapu Financial District of Tianjin, the hotel enjoys excellent accessibility and views along the Haihe River, facing Xiangluowan Business District across the river. It is only 900 metres away from Yujiapu Railway Station and well accessible to downtown Tianjin and the capital city of Beijing. The hotel features 299 exquisitely designed guestrooms and suites, along with 196 elegant residences, each with floor-to-ceiling window views of the Haihe River. In addition, it offers more than 16,000 square metres of meeting space, special food and beverage options, and other health and entertainment facilities.

Absolute Share Price Performance, as on 2 March 2018