HVS Monday Musings: India Union Budget 2021: Seeing the Glass Half-full?

By Akash Datta and Dipti Mohan
India's first post-COVID budget failed to provide any direct and immediate support to the Indian hospitality sector. However, the massive fillip given to other allied sectors such as healthcare and infrastructure will indirectly help boost the tourism and hospitality sector’s growth in the long-term.

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Pro-Invest AUD132 Million Deal to Acquire Primus Hotel in Sydney, Australia

Australian-based private equity and asset management firm, Pro-Invest Group (“Pro-Invest”), announced an AUD132 million deal with China-based developer, Greenland, over the acquisition of Sydney’s Primus Hotel. Situated within Sydney’s central business district, the 172-key hotel would be the firm’s first property in the luxury sector and would feature a lobby bar, restaurants, conference spaces, rooftop swimming pool and a gymnasium. This acquisition adds to Pro-invest’s hotel pipeline, where five other hotels are scheduled to open in the next two years. This includes the new Holiday Inn Express Hotels in Melbourne, Parramatta and Auckland, and the management of voco Brisbane City Centre and Hotel Indigo Brisbane City Centre. Once completed, Pro-invest’s hotel portfolio would consist of over 3,000 rooms across Australia and New Zealand. Existing hotels within the portfolio include Holiday Inn Express hotels at Sydney Airport, Newcastle, Brisbane and Macquarie Park.

Prince Group Unveils Masterplan by Surbana Jurong for Ream City in Sihanoukville, Cambodia

Singapore-based urban and infrastructure consultancy company, Surbana Jurong Group’s sustainable development masterplan for Ream City in Sihanoukville, Cambodia has been approved by Canopy Sands Development, a member of Cambodia-based conglomerate, Prince Holding Group. As part of the 3,081-hectare Sihanoukville tourism zone, the development will span 834 hectares on a reclaimed land located within a 10-minute drive from Sihanoukville International Airport. With an estimated total investment of USD16 billion (SGD21.4 billion), the project seeks to transform Sihanoukville by introducing a sustainable ecosystem of tourism, commercial and residential infrastructures with the potential to house up to 130,000 residents. Upon completion, the masterplan envisions to feature family attractions, condominiums, landed and beachfront homes and affordable housing estates, themed shopping malls, business hubs, beach resorts, hotels, condotels, yacht and marina club. The plan also boasts an extensive beachfront that stretches beyond 6 kilometres and community facilities including schools, parks, sports complexes, polyclinics and neighbourhood-level amenities. The province is situated at the cross-roads of major infrastructure initiatives like the Belt and Road Initiative and the Greater Mekong Subregion Economic Corridors southern route. The airport is also undergoing expansion and is anticipated to increase its capacity to accommodate 3.6 million passengers annually with further plans expected to expand to 10 million by 2030.

Banyan Tree Group to Expand into Eight New Global Destinations in 2021

Singapore-based Banyan Tree Group (“Banyan”) is set to enter new forays in three regions and across eight destinations globally. On top of openings in Asia (Cambodia, Indonesia and China), Banyan will enter the Middle East (Qatar), European (Greece) and African (Mozambique) market this 2021. The upcoming hotel openings include the 191-key integrated resort Dhawa Quzhou in Zhejiang Province, the 196-key resort Angsana Corfu in Greece, the 82-key wellbeing resort Angsana Saranam and Banyan Tree Escape in Bali, the 115-key Banyan Tree Nanjing Garden Expo in Jiangsu Province, a first-of-its-kind 341-key urban luxury resort Banyan Tree Doha at La Cigale Mushaireb in Qatar, the 158-key Angsana Siem Reap and a 40-key luxury resort Banyan Tree Ilha Caldeira in Africa that is situated on a private island. Banyan was founded on the core values of well-being and sustainability, with a multi-branded ecosystem of five brands that offers an exceptional design-led experience for travellers. This move comes after the group has signed 20 hotel management agreements last year, adding to its pipeline of 35 properties slated to open over the next three years, and in turn, strengthening their positioning amidst the pandemic. 

Halla Group and Kakao to Create a Mega Tourist Complex in Jeju

Korea-based Halla Group (“Halla”) and Kakao announced plans to jointly develop the Jeju Myosanbong Tourist Complex. The cooperation will attract KRW1 trillion in investment to complete the project by 2025. Spanning approximately 4.3 million square metres, it will be the largest tourism development site in the Jeju Province. It is also located near major tourist attractions and highly accessible from the second Jeju airport. Although the project was approved by Jeju Province in 2006, the development was halted after building a golf course and a resort condo due to a lack of capital. Halla Holdings and its construction subsidiary, Halla Company Limited, took over the development later on in 2016. Korea-based Kakao VX and Stonebridge Asset Management were recently selected as first stage partners to undertake the operations and investment role, respectively. Halla plans to upgrade the existing golf course and auxiliary facilities, establish a theme park, botanical garden, performance hall, and a hotel. Currently, the construction of the infrastructure has already commenced. With the surge in domestic travel amidst COVID-19, a proper tourism complex is economically feasible and necessary to support the demand.

Absolute Share Price Performance, as on 19 February 2021