Salter Brothers Acquire NEXT Hotel and CBD Retail in Brisbane

Melbourne-based global fund manager, Salter Brothers, has completed the acquisition of the 304-key NEXT Brisbane and a prime retail component in Brisbane CBD for an estimated AUD150 million. Apart from 304 accommodation units, the hotel offers almost 2,000 square metres of prime retail space fronting Brisbane’s Queen Street Mall which is currently partly leased to Westpac Banking Corporation. Formerly known as the Lennons Hotel Brisbane, the hotel underwent an AUD50 million refurbishment by SilverNeedle Hospitality in 2014. Then, in 2015, the hotel was rebranded into NEXT Brisbane, operated by Singapore’s Next Story Group, and was bought by current seller, Sydney-based investment management company, Challenger, for AUD133 million. With the recent addition, Salter Brothers’ hotel portfolio has increased to over 2,400 rooms with seven hotels across Sydney, Melbourne, Canberra, Brisbane and the Gold Coast.

Hanoi to Welcome Hello Kitty Theme Park

Japan-based entertainment firm, Sanrio Co. (“Sanrio”), has entered into a partnership with Vietnamese property firm, BRG Group (“BRG”), to open a Hello Kitty theme park in Hanoi in 2021. Sanrio Hello Kitty World Hanoi, adjacent to the capital's West Lake, will be an indoor theme park spanning 30,000 square metres featuring gaming and ride attractions, a theater, dining and retail outlets, as well as experience-oriented programs including transport safety and cooking. The parties initially signed a memorandum of understanding on the project in 2016. Under the partnership, BRG will construct and operate the theme park, and pay Sanrio royalty fees for use of its characters. There are currently seven Sanrio brand theme parks abroad located in China, South Korea, Malaysia, and Japan, two of which, in Tokyo and Oita Prefecture in southwestern Japan, are operated by Sanrio.

CDL’s Orchard Hotel Completes Refurbishments

Singapore-based CDL Hospitality Trust’s (“CDLHT”) Orchard Hotel has completed a multimillion-dollar major asset enhancement exercise involving its 260 deluxe guest rooms, ballroom, lobby, café, and bar. Refurbishment works commenced from 23 July 2018 for the Orchard Café and 20 August 2018 for the lobby and both areas were completed in September and October respectively. Thereafter, works for the guest rooms in its orchard wing, ballroom, and meeting spaces began from the fourth quarter of 2018. The renovation was intended to increase competitiveness of the 40-year-old heritage property and to position the property for the recovery in the Singapore hotel sector. In order to incorporate the use of technology, the hotel is also actively working with the Singapore University of Technology and Design to develop a luggage and linen delivery robot. According to CDLHT, Orchard Hotel is one of only four hotels in Singapore with a ballroom that can accommodate 1,000 or more guests.

Tourism New Zealand Doubles Down Efforts on Southeast Asia with 100% Pure New Zealand Campaign

Tourism New Zealand has launched its tourism marketing campaign, 100% Pure New Zealand Stories, in Singapore and India. Steven Dixon, regional manager, South and South East Asia of Tourism New Zealand has revealed that the campaigns focus on localised contents which are customised based on the travel characteristics and profiles of each market. As a mature market to New Zealand, Singaporeans are constantly looking for new and off-the-beaten track destinations. The Indian market has been identified as a fast-growing market for New Zealand and is characterised by a strong preference for exploring diverse attractions. Arrivals from India has expanded 70 per cent in the last three years and is projected to grow nine per cent annually until 2025. Another emerging market is Indonesia, which has grown 60 per cent in the last three years and is projected to grow eight per cent annually until 2025. As Muslim travellers account for 60 per cent of the Malaysian market, Tourism New Zealand is also focusing on promoting its Muslim-friendly travel offerings. Since the opening of Philippine Airlines’ Manila-Auckland services in 2017, Philippines has also been marked as one of the newest potential market.

Avani Hotels & Resorts to Open Seven New Hotels by the End of the Year

Thailand-based hospitality brand, Avani Hotels & Resorts (“Avani”), a brand under Thailand-based international hotel owner, operator, and investor, Minor Hotels, will open seven new properties by the end of 2019. The seven properties are Avani Central Busan in South Korea, Avani Sukhumvit Bangkok in Thailand, Avani Seminyak in Bali, an Avani managed hotel in Siem Reap, as well as two Avani Residences in Australia and Avani Ibn Battuta Dubai in the United Arab Emirates. Avani Central Busan, Avani Seminyak, and the managed hotel in Siem Reap will be the brand’s first in South Korea, Indonesia, and Cambodia respectively. Currently, Avani portfolio consists of 24 properties in 15 countries, totaling over 4,500 keys while another 15 new hotels with 5,000 keys are in the pipeline.

Absolute Share Price Performance, as on 24 May 2019