Key Takeaways from the 2018 South East Asia Hotel Investor’s Summit (SEAHIS)

By Paola Orneli Bock, Pawinee Chaisiriroj and Hok Yean CHEE
The article features the key takeaways from this year’s South East Asia Hotel Investors’ Summit (SEAHIS) at the Westin Grande Sukhumvit Bangkok on May 14-15, which HVS proudly sponsored for the second consecutive year.
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Minor International Acquires Additional Stake in NH Hotel Group from HNA Group

Thailand-based Minor International (“MINT”) has reached an agreement with China-based HNA Group (“HNA”) for the acquisition of an equity stake of 25.2% (on a fully-diluted basis) in NH Hotel Group (“NH”) in a two-tranche transaction valued at EUR 691 million. The acquisition follows MINT’s previous purchase of a 9.5% shareholding (on a fully-diluted basis) in NH. Under the Spanish law, as MINT owns more than 30 percent stake in NH, the company is obligated to launch a takeover bid. As such, MINT has announced intention to proceed with an all-cash public tender offer to acquire remaining NH shares. MINT views the acquisition as an investment strategy to expand into the European hospitality industry and will see its current portfolio of 161 hotels more than triple with the addition of NH’s 382 hotels in Europe, the Americas and Africa. 

Trump-Kim Summit to be Held at Capella Hotel

The historic first meeting between US President Donald Trump and North Korean leader Kim Jong Un will take place at the Capella Hotel on June 12, 2018. Situated on Singapore’s Sentosa Island, the 112-key colonial-style hotel was host to delegations from both countries last week who met to discuss the logistics as well as the appropriate venue for the summit. With security a chief concern for both parties, the location was settled to be the Capella hotel and the meeting is scheduled to take place at 9 a.m. local time. In addition to the area around Shangri-La Singapore that was designated by the Singaporean government as a special event area for the summit, Sentosa and the linkway to the island from Harbourfront have been listed as well, following the site selection. 

W Hotels Debuts in Brisbane, Australia

US-based Marriott International (“Marriott”) has continued their expansion in the Asia-Pacific region with the opening of W Brisbane. Owned by Taiwan-based developer, Shayher Group (“Shayher”), the 34-storey W Brisbane represents the first stage of Shayher’s AUD1 billion mixed-use Brisbane Quarter development along the Brisbane River. The hotel also marks the first five-star hotel to open in Brisbane’s CBD in 20 years since the Marriott Hotel. W Brisbane provides 312 guestrooms, including 32 luxury suites with river views, and three distinct dining venues featuring a signature restaurant, Three Blue Ducks, and two bars. Other facilities include 1,100 square-metres of event space consisting of a 595-square-metre pillarless ballroom, a spa, a fitness centre and a rooftop pool. Elsewhere in Australia, W Sydney at Darling Harbour is scheduled to open in 2019 while W Melbourne in Collins Street is scheduled to open in 2020.

Singapore Airlines to Relaunch Direct Flights to New York

Singapore-based Singapore Airlines Limited (“SIA”) will relaunch the non-stop services between Singapore and New York after having previously stopping the services in 2013 due to weak corporate demand and high fuel price. Starting from October 11, 2018, The flight to Newark Liberty International Airport will utilise the ultra long range (“ULR”) version of the Airbus A350-900. It will be operated thrice weekly before the daily operation commences from Oct 18 when an additional A350-900ULR aircraft enters service. Configured in a two-class layout, the aircraft will offer 67 Business Class seats and 94 Premium Economy Class seats. The route will cover approximately 16,700 kilometres with flight duration of up to 18 hours 45 minutes. Within 2018, SIA will also restart non-stop services to Los Angeles using the same aircraft. Currently, SIA offers direct flights to San Francisco and operates one-stop services to New York (via Frankfurt) and Los Angeles (via South Korea and via Tokyo). With the addition of the direct Singapore-New York route, there will be 72 weekly passenger services operated by four airlines between Changi Airport and the United States. 

Absolute Share Price Performance, as on 8 June 2018