HVS Monday Musings: Indoor Air Quality May Define Your Choice of Future Hotel Stays

By Ajay Mehtani
Health and safety are a priority for travelers today. This article discusses that indoor air quality (IAQ) will soon become a key parameter influencing traveler’s choice of stay.

To view and download the full article, please click here.  

Ascott to Acquire Two Properties in Paris and Hanoi

Singapore-based The Ascott Limited (“Ascott”), a wholly-owned subsidiary of CapitaLand Limited (“CapitaLand”) will be acquiring two properties in France and Vietnam for a total of SGD210 million through the Ascott Served Resident Global Fund (“ASRGF”), its private equity fund with Qatar Investment Authority. Both properties will be acquired on a turnkey basis and are expected to open in 2024. Ascott will acquire a freehold asset in Paris, their first co-living development in Europe that will be refurbished and launched under the lyf brand. Named livelyfhere Gambetta Paris, the 139-unit property is located at the 20^th arrondissement, near a variety of arts establishments and eateries including galleries, cinemas, and cafés. The second acquisition is the 364-unit Somerset Metropolitan West Hanoi. It is strategically located in Hanoi’s new central business district and is close to several government agencies on top of local and international corporations. The Hanoi property is also within a 10-minute drive to the Vietnam National Convention Centre and a half-hour drive to the Noi Bai International Airport. These acquisitions will boost Ascott’s fund assets under management (“FUM”) to SGD8 billion.

Far East Consortium Sells Four-star Dorsett London Hotel

Hong Kong-based Far East Consortium (“FEC”) has agreed to sell the 267-room Dorsett City London Hotel to Aldgate Hotel Bidco, a subsidiary of two US-based investment firms, Highgate Hotels and Cerberus Capital Management, for USD160.4 million. Upon the acquisition, FEC is expected to gain USD69.8 million from the sale. FEC’s wholly-owned subsidiary, DHI Hotel Management UK, will provide hotel management services for the four-star hotel at 9-13 Aldgate High Street, a five-minute walk from the iconic Gherkin tower. Chris Hoong, FEC’s managing director commented that the sale highlighted the tremendous value hidden in FEC’s portfolio and that they welcome new opportunities to deploy capital at attractive rates of return. FEC also mentioned that the net proceeds will be used for general working capital which will help recycle capital, increase liquidity, reduce leverage, and reap income from management fees as the hospitality sector stabilises post-pandemic. As of September 2020, FEC’s portfolio includes 31 hotels with an estimated 8,100 rooms and 13 hotels in the pipeline across Asia, Australia, and Europe. When all FEC’s hotels become operational, the company’s portfolio will increase to 44 hotels with approximately 11,350 rooms.

Thailand’s Cabinet Approves Phuket Sandbox Scheme

On 23 June 2021, The Thai Cabinet has approved the Phuket Sandbox Tourism Scheme, where vaccinated international tourists can visit the island without serving a 14-day quarantine. Slated to begin on 1 July 2021, the scheme currently has five flights from Singapore, Qatar, Israel, and the United Arab Emirates. Visitors that wish to travel out of Phuket and into the rest of Thailand are required to stay on the island for a minimum of 14 days and would be subjected to multiple COVID-19 tests. In addition, the government has also announced that Koh Samui, Koh Phangan, and Koh Tao would also be opened to vaccinated tourists from 15 July, where tourists are required to travel via a “sealed” route scheme. For the first three days, visitors are to reside within approved hotels but can travel within sealed routes from days 4 to7, and travel to the other two islands from days 8 to15. Prime Minister, Prayut Chan-o-cha, mentioned that the implementation of the Phuket sandbox would test Thailand’s ability to balance its economic recovery and the maintenance of its public health security. He remains optimistic that other tourism areas would progressively open to the international market.

Australia’s State Governments Announce New Measures to Boost Tourism Recovery

The Victorian and South Australian government have announced a new round of travel initiatives to boost regional tourism recovery. AUD16 million investment will fund the fourth release of 80,000 regional travel vouchers valued at AUD200 each for distribution to support attraction and accommodation operators. This scheme is part of the AUD32.2 million Regional Tourism Support Package with additional measures such as AUD4,500 top-ups for COVID-19 impacted travel operators and AUD15,000 grants for alpine businesses to provide a COVID-safe skiing environment. Meanwhile, South Australian government is distributing more than 50,000 travel vouchers to South Australians under the fourth round of Great State Voucher Scheme. Participants will either get an AUD100 voucher for use on participating Adelaide and North Adelaide hotels, or an AUD50 voucher for use across suburban and regional South Australia. A new ‘mid-week stays’ program is also introduced to attract visitors into Adelaide from Sunday to Thursday by offering discounted hotel deals. Both governments believe the initiatives could support the tourism industry and sustain jobs as Australia heads into the winter months.

Absolute Share Price Performance, as on 25 June 2021