HVS Asia Pacific Hospitality Newsletter - Week Ending 3 May 2019 (May 6, 2019)

ARA Launches IPO for the First US Hospitality Trust on SGX

Real estate investment group, ARA Group, has launched an initial public offering (IPO) to list ARA US Hospitality Trust, the first US hospitality trust, on Singapore Exchange (“SGX”) at USD0.88 per share. The proposed Trust has an appraised value of USD719.5 million which encompasses 38 hotels with 4,950 rooms, consisting of 27 Hyatt Place select-service hotels and 11 Hyatt House extended-stay hotels. With the exception of Hyatt Place Lakeland Center and Hyatt Place Secaucas Meadowlands, the other 36 hotels hold freehold land titles. According to a preliminary prospectus that has been lodged with the Monetary Authority of Singapore, the proposed Trust will comprise of US dollar-denominated stapled securities of ARA US Hospitality Property Trust (“ARA H-Reit”) and ARA US Hospitality Management Trust (“ARA H-BT”). ARA H-Reit will own the hotel properties while ARA H-BT will operate the hotels. ARA US Hospitality Trust has an indicative forecast distribution yield of 8.0% for the eight-month forecast period of May to December this year. ARA will own 9.5% of the US Hospitality Trust's shares on issue upon listing.

Memories Group Acquires Stake in Strand Hotel International Limited

Myanmar-based tourism-focused company, Memories Group (“Memories”), has announced the acquisition of a 15.28% stake in Strand Hotel International Limited (“SHIL”) for a consideration of SGD3.19 million. The transaction was conducted through a share purchase agreement with Oakfame Investment Limited and its holding company, Sun Hung Kai & Co. Limited, to acquire 1,696,636 shares of SHIL. SHIL is a joint venture partner of the Directorate of Hotels and Tourism Development in the Republic of the Union of Myanmar, and holds a 50% stake in Myanmar Hotel International Company Limited (“MHIL”). MHIL has long-term leasehold rights and the rights to develop, operate, and manage three hotels in Yangon. These hotels are the Strand Hotel in Yangon, Inya Lake Hotel and Hotel G Yangon. SHIL has also entered into another joint venture with GCP Hospitality Management Limited and has an 80% interest in Myanmar Cruise International Limited, which owns a 50-passenger 61-metre-long boat cruise in Myanmar.

Tourism Authority of Thailand and Thailand’s Ministry of Commerce Collaborate to Drive Tourism

Tourism Authority of Thailand has signed a “Trade and Tourism Alliance” Memorandum of Understanding (MoU) with six departments under the Thailand’s Ministry of Commerce to integrate development strategies and marketing promotions, while establishing links between trade and tourism. The six participating departments include the Office of the Permanent Secretary, Department of Foreign Trade, Department of Internal Trade, Department of Intellectual Property, Department of Business Development, and Department of International Trade Promotion. Under the MoU, all parties will cooperate on (1) providing support for the health and wellness, and gems and jewellery sectors through various online and offline activities; (2) organising marketing activities for agricultural and food products, geographical indication products, as well as all relevant products and services concerning tourism such as fruit fairs or border trade fairs; and (3) information exchanges via the set-up of a knowledge centre that will assist with organising events and encourage businesses to become more knowledgeable on international trade and investment opportunities overseas, as well as promote tourism-related trade and investment through training courses and seminars. The tourism initiative seeks to leverage the strength of each participating government agency in order to maximise the potential benefits derived from trade and tourism development.

Queensland Government and Australia Zoo to Build ‘Camp Croc Hunter’ Tourism Project in Sunshine Coast

The Queensland Government has announced the partnership with Australia Zoo to launch an AUD8 million wildlife camping experience, named ‘Camp Croc Hunter’ on the Sunshine Coast. The new initiative will provide a wide range of accommodation options on a 108-site camping ground, including tents, caravans, permanent glamping-style tents and eco cabins. The camping village will also feature a cafe, reception, entertainment and pool area, caretaker quarters and workshop, amenities blocks, covered cooking areas, school camp facilities and a mountain bike course. The project is anticipated to attract more than 39,000 annual visitors and contribute up to AUD4.5 million in visitor expenditure a year to the Sunshine Coast following its opening in 2020.

Brisbane Marriott Hotel Completes Multimillion-dollar Renovation

Brisbane Marriott Hotel has completed an AUD20 million renovation. The refurbishment covers areas including its 263 guest rooms and 4 suites, the executive lounge, two floors of event space and its signature restaurant, Motion Dining. The modernised rooms have been fitted with the Assa Abloy Orion system, an advanced technology that enables the hotel staff to control the lighting and air conditioning in each room upon guest check-in. At Motion Dining, diners can also now be seated at tables overlooking the Grill, at high tables in M bar or enjoy alfresco dining overlooking the river on MDeck. Located approximately 14.5 kilometres from the Brisbane International Airport and in Brisbane’s Central Business District, the hotel is within walking distance from Chinatown, Eagle Street Pier, Queen Street Mall and Story Bridge. Brisbane Marriott Hotel currently features two dining options, twelve flexible event spaces spanning a total of 737 square metres, a business centre, an outdoor pool and a fitness centre with views of the Brisbane River and the hotel’s Dome Spa Retreat. Marriott Hotel is the flagship brand of US-based hospitality company, Marriott International.

Absolute Share Price Performance, as on 3 May 2019

Closing Share Price as at 3 May 2019 26 April 2019 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 1.98 1.88 5.3%
Event Hospitality & Entertainment Ltd 13.60 13.07 4.1%
General Property Group 5.69 6.00 -5.2%
Mirvac Group 2.80 2.90 -3.4%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 42.75 43.25 -1.2%
Dusit Thani Public Co Ltd 10.70 10.70 0.0%
The Erawan Group Public Co Ltd 7.00 6.85 2.2%
Grande Asset Hotels & Property Public Co Ltd 0.91 0.92 -1.1%
Laguna Resorts & Hotel Public Co Ltd 59.75 64.00 -6.6%
Minor International Public Co Ltd 37.50 37.75 -0.7%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 10.19 10.80 -5.6%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 2.99 3.19 -6.3%
Guangzhou Dong Fang Hotel Co Ltd 8.20 8.54 -4.0%
Huazhu Group Limited 42.25 43.82 -3.6%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 16.44 16.54 -0.6%
Regal Hotels International Holdings Ltd 4.91 4.92 -0.2%
Sino Hotels Holdings Ltd 3.38 3.38 0.0%
The Hong Kong & Shanghai Hotels Ltd 11.88 11.84 0.3%
Shangri-La Asia Limited 11.10 11.02 0.7%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 153.0 152.4 0.4%
EIH (Oberoi Hotels & Resorts) 189.7 191.8 -1.1%
Hotel Leela Ventures 10.1 10.8 -6.5%
Korea Exchange (KRW)
The Shilla 114500 107500 6.5%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.50 0.50 1.0%
Ascendas Hospitality Trust 0.93 0.91 2.2%
Ascott Residence Trust 1.20 1.20 0.0%
Banyan Tree Holdings Limited 0.56 0.57 -2.6%
CDL Hospitality Trusts 1.61 1.57 2.5%
Far East Hospitality Trust 0.65 0.66 -1.4%
Frasers Hospitality Trust 0.75 0.75 0.0%
Hotel Grand Central Ltd 1.37 1.38 -0.7%
Hotel Properties Ltd 3.84 3.87 -0.8%
Mandarin Oriental International Ltd (US$) 1.90 1.92 -1.0%
OUE Hospitality Trust 0.72 0.72 0.7%
Stamford Land Corporation Ltd 0.50 0.50 0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 157.5 158.0 -0.3%
The Ambassador Hotel, Ltd 22.0 21.9 0.5%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 91200 91200 0.0%
Imperial Hotel, Ltd 2014 2014 0.0%
Red Planet Japan Inc 127 127 0.0%

For the latest in the hospitality industry, please visit: http://www.hvs.com/. You are also welcome to contact the following personnel.
Hok Yean Chee, Regional President – HVS Asia Pacific [email protected]
Daniel J Voellm, Managing Partner – HVS Hong Kong [email protected]
Mei Leng Ho, Senior Vice President – HVS Singapore [email protected]
Paola Orneli Bock, Vice President – HVS Bangkok [email protected]
Steven Zhu, Vice President – HVS Shanghai [email protected]
Florian Kittler, Managing Director – HVS Executive Search Europe & Asia Pacific [email protected]

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