Market Snapshot: Asia Pacific 2019

By Chee Hok Yean
The Market Snapshot: Asia Pacific 2019 highlights an overview of transaction activity in the region and presents 12 countries’ current hospitality landscape; each covering demand and supply dynamics, hotel performances, and key transactions.

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Ovolo Group Acquires Citadines Kuta Beach in Bali

Hong Kong-based hospitality owner-operator, Ovolo Group (“Ovolo”) has announced the acquisition of the 194-key Citadines Kuta Beach for an undisclosed amount on 1 November 2019. This represents the group's first property outside Hong Kong and Australia. Located between expats hotspot in Seminyak and Legian Road, the upscale serviced apartment in Bali consists of 182 studio rooms, nine one-bedroom suites and three two-bedroom suites. Other facilities include an all-day dining restaurant, a rooftop bar, a swimming pool, a gym and conference facilities. Further details on the revamp of the hotel will be announced in 2020. An opening date for the new Ovolo Bali property will also be set in the near future. Currently, Ovolo operates four hotels in Hong Kong and six hotels across Australia in Sydney, Melbourne, Canberra and Brisbane.

Huazhu to Acquire Deutsche Hospitality for EUR700 Million

China-based hotel chain, Huazhu Group (“Huazhu”) has announced its plan to acquire all shares in Germany-based hotelier, Deutsche Hospitality for a base cash consideration of approximately EUR700 million. The deal will be handled through Huazhu’s wholly-owned subsidiary China Lodging Holding Singapore and is expected to close early next year. Currently, Deutsche Hospitality operates 118 hotels across five brands and features an additional 36 hotels under development in 19 countries across Europe, the Middle East and Africa.  As of 30 September 2019, Huazhu operates 5,151 hotels with 504,414 rooms across 11 brands. As an important milestone in Huazhu’s global expansion strategy, the acquisition of Deutsche Hospitality will help enhance the offering of the group and its operating capabilities in the high-end European hotel market.

China to Construct International Sports Destination

Planning for a resort in Zhangjiakou, North China's Hebei province, a key support facility for the 2022 Winter Olympics, was disclosed on 29^th October 2019. Taizicheng Resort will be located next to the Taizicheng High-Speed Railway Station. It has been designed to be surrounded by the Olympics Village Zhangjiakou, the National Cross Country Centre, the National Ski Jumping Centre, the National Biathlon Centre and other Winter Olympics supporting facilities. Invested by China-based Sinobo Group Company Limited, the RMB20 billion Taizicheng Resort covers an area of 2.89 square kilometres with a total floor area of 1.2 million square metres, including the Medals Plaza, Winter Olympic Tower, International Convention Centre, international resorts and other development projects. Post-Olympics, Taizicheng Resort will be developed into a vibrant international sports and tourist destination by introducing diverse sports and amusement programs, and holding large international events to cater for different demand. In addition, Oakwood, a wholly owned subsidiary of Singapore-based Mapletree Investments, has partnered with tourism company Sinobo Thaiwoo Cultural & Tourism Company Limited to manage 118-key Oakwood Suites Chongli and 173-key Oakwood Hotel & Apartments Chongli. Located in the 2022 Winter Olympics Zhangjiakou Zone, both serviced apartments are slated to open in December 2020 and August 2021, respectively.

India-based Lemon Tree Hotels Launches New Upscale Brand

India-based Lemon Tree Hotels, a mainly mid-market segment hotels firm, has launched its new upscale brand Aurika Hotels & Resorts by opening its first hotel in the city of Udaipur in India. The Aurika, Udaipur is spread across 5 acres of land with 139 rooms and suites, an all-day dining restaurant, bar, banquet facilities, boardroom and recreational facilities such as spa, fitness center and swimming pool. The company plans to open three more properties under the Aurika brand across the country by the end of 2021.

Absolute Share Price Performance, as on 8 November 2019