Ibis Singapore Novena Transacted for Close to SGD170 Million

Property funds Alpha Asia Macro Trends Fund (“AAMTD”) II, managed by Singapore-based real estate investment advisory firm, Alpha Investment Partners (“Alpha”), have sold the freehold 241-key Ibis Singapore Novena for nearly SGD170 million. This translate to approximately SGD700,000 per room with a net yield of about 3 per cent. The buyer is an entity linked to Mohammed Saiful Alam, who controls Bangaldeshi-based industrial conglomerate, S Alam Group. Previously in 2013, Alpha, via its subsidiary AAMTD II, had bought the hotel from the Kum family for SGD150 million. Located on the Irrawaddy and Balestier Road intersection, and within walking distance to Novena MRT station, the property will continue to be managed by France-based multinational hospitality group AccorHotels. This marks Mr Alam’s third hotel acquisition in Singapore, following the acquisition of Hilton Garden Inn Singapore Serangoon and Holiday Inn Express Singapore Serangoon. Alpha is the private fund management arm of Singapore-based Keppel Capital Holdings.

Singapore Airlines and Malaysia Airlines Sign MOU for Wide-ranging Strategic Partnership

Singapore Airlines (“SIA”) and Malaysia Airlines Berhad (“MAB”) has signed a Memorandum of Understanding (MOU) to build on their existing codeshare agreement that covers flights between Singapore and Malaysia, on 27 June 2019. The strategic partnership includes a significant expansion of codeshare flights beyond existing routes, enhancements on the frequent flyer programme front, as well as potential co-operation which could involve cargo, maintenance, repair and overhaul services. A formal agreement will be finalised in the coming months and will involve SIA subsidiaries SilkAir and Scoot, as well as MAB sister airline Firefly. This marks the first agreement involving all five airlines.

New South Wales Hits AUD11 Billion Record in International Visitor Expenditure

According to Stuart Ayres, Minister for Jobs, Investment, Tourism and Western Sydney, New South Wales (NSW) has welcomed 50.9% of all international visitors to Australia and achieved a new high in terms of tourism related spending, recording AUD11 billion expenditure from international visitors, in the year ending March 2019. Sydney achieves its highest results on record, welcoming 4.1 million international visitors who stayed 82.3 nights and spent a total of AUD10.1 billion, well ahead of Brisbane and Melbourne. The Australian state also leads Victoria and Queensland across the three major metrics - visitation, room nights and expenditure, reinforcing its position as Australia’s premier tourism state. For international visitors, NSW leads Victoria and Queensland by 44% and 58%, while for room nights, NSW stands at 32% and 75% higher than Victoria and Queensland. In terms of expenditure, NSW edges over Victoria and Queensland by 27% and 79% respectively. Mr Ayres added that NSW received its highest ever share of visitor nights to regional Australia.

BHMA Hotels & Resorts Rebrands to Cross Hotels and Resorts

Thailand-based hotel management company, BHMA Hotels & Resorts (“BHMA”), has announced their rebranding to Cross Hotels and Resorts (“Cross”). The rebranding will pave the way for future expansion of the company’s portfolio of rooms under management focusing on South East Asia, Australia, Japan and the Pacific before branching into other international destinations. Over the past 18 months, Cross has opened eight new hotels across three brands, with a consolidated hotel revenue increase of circa 80%. These includes the opening of X2 Bali Breakers in Uluwatu, Away Bali Legian Camakila, X2 Vibe and Away branded properties in Phuket and X2 Oceanphere Residences in Pattaya. According to CEO of Cross, Peter Lucas, Cross has a strong pipeline of future acquisitions in place including four key resort destinations in Vietnam which they will sign in 2019. In July 2017, Cross was wholly acquired by Australian Securities Exchange listed Flight Centre Travel Group (“FCTG”). FCTG is one of the largest travel agency groups with operations over 23 countries and corporate travel management network over 90 countries.

BTG Homeinns and Hyatt Join Hands to Unveil New Brand ‘UrCove by Hyatt’ in China

China-based BTG Homeinns Hotels Group (“BTG Homeinns”) and US-based Hyatt Hotels & Resorts (‘Hyatt’) recently announced a joint venture to launch UrCove by Hyatt. The new upper midscale brand seeks to create a homely environment for Chinese business travellers. All hotels under UrCove by Hyatt will be located in key gateway cities, and will be designed with business space and amenities that help guests manage work tasks while travelling.  The properties will also offer dining options, including rich nutritious breakfast, group dining, and business dinners. The first two UrCove by Hyatt hotels are expected to open in Shanghai and Beijing in late 2020.

Absolute Share Price Performance, as on 28 June 2019