Global Hospitality Report (July 25, 2016)

2015/16 United States Hotel Franchise Fee Guide 
By Kasia Russell, MAI and Bomie Kim

The selection of an appropriate franchise affiliation affects a property’s ability to compete in its local market, generate profits, and achieve a desirable image and market orientation.

Evaluating Hospitality-Focused Mixed-Use Assets 
By Tim Sauer

HVS's Mixed-use appraisal expert Tim Sauer, MAI lays out some of the considerations for the evaluation of hospitality-focused mixed-use assets.

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.

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.

Foncière des Régions to Acquire Five NH Hotels in Germany  

French real estate group Foncière des Régions has acquired the purchase options for a portfolio of five NH hotels (900 guest rooms) across Germany for €125 million (approximately €139,000 per room) from Spanish chain NH Hotel Group. The deal is expected to close in 2017 and the hotels, in Düsseldorf, Frankfurt, Nuremberg, Oberhausen and Stuttgart, will continue to be operated by NH Hotel Group under new 20-year leases.


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