HVS Asia Pacific Hospitality Newsletter - Week Ending 1 June 2018 (June 1, 2018)

Far East Hospitality to Undertake Hotel Project in Japan

Singapore-based Far East Hospitality Holdings Pte. Ltd. (“FEHH”) has entered into a joint venture with Boo Han Holdings Pte. Ltd. (“Boo Han”), a member of Far East Organization (“Far East”), to purchase a 2,542 square metre plot of land and a yet-unconstructed hotel in Ariake, Tokyo. The purchase price of JPY8.198 billion (Approximately S$100.5 million) will be shared equally by the two partners. Upon completion of the sale, the seller, Shimizu Corporation (“Shimizu”), will build the hotel before delivering the trust beneficiary interest worth to an indirectly-held joint venture entity, in the form of a Tokutei Mokuteki Kaisha (TMK), or Special Purpose Company. The forward purchase deal is expected to be completed in the second quarter of 2020 and the hotel is planned to be operated under a Far East hotel brand. Located in the Ariake district, the project is a short drive away from Central Tokyo, Tokyo Disneyland Resort, and Haneda Airport. It is also in proximity to Tokyo Big Sight, the largest convention centre in Japan as well as the Ariake arena, one of the venues hosting the Tokyo Olympics in 2020.

Banyan Tree’s Laguna Lang Co Integrated Resort Awarded Casino Licence

Singapore-based Banyan Tree Holdings Limited (“Banyan Tree”)’s Laguna Lang Co Integrated Resort in Central Vietnam has been awarded the first casino licence to be issued by the Vietnamese government in ten years. Located in the Thua Thien Hue province along Vietnam’s central north coast, Laguna Lang Co is a 280-hectare integrated resort community with a 57-villa Banyan Tree Lang Co, a 229-key Angsana Lang Co resort, an 18-hole golf course, convention facilities, and recreational facilities that opened its first phase in 2013. With the long-awaited casino licence, the second phase of the project is expected to see investment capital increase from US$875 million to US$2 billion and the expansion is slated to be completed by 2022. Once launched, the new casino resort will feature a US$250 million casino, 2,220 villas and apartments, and as many as six five-star hotels.

Minor International Acquires NH Hotel Group

Thailand-based Minor International (“MINT”) has acquired 30 million shares in Spain-based NH Hotel Group through a 192-million-euro deal. This acquisition, combined with its existing shares in the group, increases MINT’s stake in NH Hotel Group to 8.6%. NH Hotel Group, with its four main growth drivers of Spain, Benelux, Central Europe, and Italy, currently has a portfolio of 382 properties over 30 countries. The group consists of four brands, namely: NH Hotels, NH Collection, Nhow Hotels and Hesperia Resorts. This investment is seen as a strategic move to further expand MINT’s presence in Europe following its earlier expansion into Portugal and Brasil in 2016 with the acquisition of Tivoli Hotels & Resorts.

Courtyard by Marriott Debuts in Shenzhen, China

US-based Marriott International (“Marriott”) recently announced the opening of its first Courtyard by Marriott hotel, namely Courtyard by Marriott Shenzhen Bao’an, in Shenzhen city of China. Ideally located in the heart of Songgang Town, Bao’an District, the hotel is about 20 minutes’ drive from Shenzhen Bao’an International Airport and only 15 minutes’ drive from Guangming High-Speed Railway Station, with proximity to Fuyong Wharf. Sitting from 20th to 29th floor on a modern high-end business building, the hotel features 257 distinctive guestrooms with flexible working and leisure space, internet connection and a flat screen TV. There are extensive food and beverage options at the hotel, including an all-day dining restaurant Pavilion, a lobby Lounge and an executive lounge. In addition, Courtyard by Marriott Shenzhen Bao’an provides a total meeting space of 755 square metres, comprising a 432-square-metre ballroom and five state-of-the-art function rooms.

Absolute Share Price Performance, as on 1 June 2018

Closing Share Price as at 1 June 2018 25 May 2018 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.00 2.05 -2.4%
Event Hospitality & Entertainment Ltd 14.16 14.15 0.1%
General Property Group 5.03 5.04 -0.2%
Mirvac Group 2.29 2.33 -1.7%
Mantra Group 3.95 3.95 0.0%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 45.25 45.75 -1.1%
Dusit Thani Public Co Ltd 14.70 16.90 -13.0%
The Erawan Group Public Co Ltd 8.15 7.95 2.5%
Grande Asset Hotels & Property Public Co Ltd 0.97 0.96 1.0%
Laguna Resorts & Hotel Public Co Ltd 35.00 35.00 0.0%
Minor International Public Co Ltd 32.50 34.75 -6.5%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 10.00 10.14 -1.4%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 3.46 3.60 -3.9%
Guangzhou Dong Fang Hotel Co Ltd 10.02 10.59 -5.4%
China Lodging Group Ltd 44.01 43.22 1.8%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 15.86 15.92 -0.4%
Regal Hotels International Holdings Ltd 5.25 5.25 0.0%
Sino Hotels Holdings Ltd 3.39 3.40 -0.3%
The Hong Kong & Shanghai Hotels Ltd 12.76 12.52 1.9%
Shangri-La Asia Limited 15.85 15.56 1.9%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 142.0 136.7 3.9%
EIH (Oberoi Hotels & Resorts) 176.8 168.0 5.2%
Hotel Leela Ventures 17.3 16.7 3.3%
Korea Exchange (KRW)
The Shilla 128000 121500 5.3%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.51 0.51 0.0%
Ascendas Hospitality Trust 0.76 0.78 -2.6%
Ascott Residence Trust 1.11 1.13 -1.8%
Banyan Tree Holdings Limited 0.56 0.58 -3.4%
CDL Hospitality Trusts 1.68 1.66 1.2%
Far East Hospitality Trust 0.66 0.67 -2.2%
Frasers Hospitality Trust 0.69 0.71 -2.8%
Hotel Grand Central Ltd 1.57 1.59 -1.3%
Hotel Properties Ltd 3.74 3.76 -0.5%
Mandarin Oriental International Ltd (US$) 2.51 2.58 -2.7%
OUE Hospitality Trust 0.80 0.80 0.0%
Stamford Land Corporation Ltd 0.48 0.50 -4.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 151.0 151.5 -0.3%
The Ambassador Hotel, Ltd 22.6 22.7 -0.2%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 81300 82300 -1.2%
Imperial Hotel, Ltd 2121 2223 -4.6%
Red Planet Japan Inc 25 25 0.0%

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Sent By: Chee Hok Yean
HVS | Regional President
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