HVS Asia Pacific Hospitality Newsletter - Week Ending 4 October 2019 (October 7, 2019)

AXA IM to Acquire 2,300-Key Europe-based Portfolio for EUR531 Million

France-based AXA Investment Managers – Real Assets (“AXA IM”) has announced the agreement to acquire, on behalf of clients, a portfolio of 11 hotels across Europe, which includes 367-key Hilton Vienna Danube Waterfront and 203-key Hotel Mondial am Dom Cologne – MGallery by Sofitel, for a net price of EUR531 million. The 2,339-room portfolio comprises a good mix of business, trade fair and leisure driven properties, with seven located in key cities in Germany and the four other assets located in the leading European cities of Vienna, Turin, Lisbon and The Hague. The hotels are operated by internationally renowned brands including Accor, Hilton and NH on long leases. Apart from the present acquisition, other purchases by AXA IM include a four-hotel portfolio in Australia, a prime Amsterdam city centre hotel and a hotel development in Hiroshima, Japan. 

ABH Hotel Group Acquires Airlie Beach Hotel for AUD22 Million in Queensland

Australia-based ABH Hotel Propriety Limited has acquired the freehold and leasehold interests of Airlie Beach Hotel, located in Queensland, Australia, for a combined AUD22 million. The acquisition followed a recent AUD10 million refurbishment of the property by ABH Operations Private Limited, who took over the leasehold interest of the property. Previously owned by the O’Neill family for over 30 years, the 80-key Airlie Beach Hotel comprises of conference facilities, a commercial car park, restaurant, pub, retail liquor store, 35 gaming machines and a retail compound. Located within the Airlie Beach’s central business district, the property is situated on an 8,819-square-metre site that offers three major street frontages, providing a strong presence and foot traffic.

Anantara Announces Global Partnership with Verita Heathcare Group

Thailand-based Anantara Hotels, Resorts & Spas, the subsidiary of Thailand-based Minor International (“MINT”) has partnered with Singapore-based Verita Healthcare Group to collaborate on a global network of integrated, property-based health centres. Located on the riverside of Bangkok, Anantara will open its first Verita Health facility at Anantara Riverside Bangkok Resort in the first quarter of 2020. The 677-square-metre health facility will feature dark IV infusion rooms with sleep-promoting light therapy, streamlined VIP suites, a meditation garden, and ergonomically designed private consultations pods. Furthermore, the health centre will also include an advanced health analytics and reports in real-time for immediate consultant and recommendation specifically in biological age reduction. Currently, Anantara boasts a worldwide portfolio of 35 hotels in 13 countries, with a pipeline of future hotels across Asia, the Indian Ocean, Middle East, Africa, and South America. Several joint projects will be launched in Thailand and throughout Asia Pacific in coming years.

American Airlines to Launch Direct Flight from Dallas and Los Angeles to Tokyo, Japan

American Airlines will launch a new daily direct flight to Tokyo’s Haneda International Airport (“HND”) from Dallas-Fort Worth International Airport (“DFW”) and a second daily non-stop service from Los Angeles International Airport (“LAX”). DFW to HND will be operated on a three-class Boeing 777-300, with eight Flagship First seats and 52 Flagship Business seats. The flight from LAX to HND will be serviced by a 787-900 Dreamliner, with 30 lie-flat Flagship Business seats and 21 Premium Economy seats. These new flights will add nearly 4,000 seats every week between the United States and Tokyo’s Haneda Airport. Commencing on 29 March 2020, American and its Pacific Joint Business partner Japan Airlines will offer a total of five daily flights to HND from four cities in the United States, including Los Angeles, Dallas-Fort Worth, New York and San Francisco.

Goldman Sachs-backed SAMHI Hotels Files for IPO

India-based SAMHI Hotels has filed the draft papers for its initial public offering (“IPO”) to raise INR18-20 billion. The company plans to use the IPO proceeds for complete or part repayment of debt to help improve its financial performance. As on 30 June 2019, SAMHI’s portfolio comprises 27 operating hotels with 4,048 rooms across 12 cities in India under the Marriot, IHG and Hyatt brands. The company is India’s third largest hotel asset owner, and currently owns the largest number of Marriott and IHG operated hotels in India.

Absolute Share Price Performance, as on 4 October 2019

Closing Share Price as at 04 October 2019 27 September 2019 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.12 2.17 -2.3%
Event Hospitality & Entertainment Ltd 12.92 13.35 -3.2%
General Property Group 6.16 6.26 -1.6%
Mirvac Group 3.05 3.08 -1.0%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 31.75 32.00 -0.8%
Dusit Thani Public Co Ltd 9.95 9.85 1.0%
The Erawan Group Public Co Ltd 5.65 5.85 -3.4%
Grande Asset Hotels & Property Public Co Ltd 0.81 0.80 1.3%
Laguna Resorts & Hotel Public Co Ltd 46.25 45.00 2.8%
Minor International Public Co Ltd 36.25 37.50 -3.3%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 9.70 9.71 -0.1%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 2.64 2.58 2.3%
Guangzhou Dong Fang Hotel Co Ltd 7.75 7.69 0.8%
NASDAQ (US$)
Huazhu Group Limited 33.45 33.60 -0.4%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 14.70 14.64 0.4%
Regal Hotels International Holdings Ltd 4.25 4.16 2.2%
Sino Hotels Holdings Ltd 3.00 3.00 0.0%
The Hong Kong & Shanghai Hotels Ltd 7.63 7.50 1.7%
Shangri-La Asia Limited 7.92 7.82 1.3%
National Stock Exchange (INR)
Chalet Hotels Ltd 320.55 324.60 -1.2%
IHCL (Taj Hotels, Resorts & Palaces) 154.6 155.0 -0.2%
EIH (Oberoi Hotels & Resorts) 176.3 176.9 -0.4%
Hotel Leela Ventures 7.0 8.0 -11.9%
Lemon Tree Hotels Ltd 56.3 58.0 -2.9%
Korea Exchange (KRW)
The Shilla 79800 86800 -8.1%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.46 0.46 -1.1%
ARA HTrust  (US$) 0.86 0.88 -1.7%
Ascendas Hospitality Trust 1.09 1.09 0.0%
Ascott Residence Trust 1.32 1.31 0.8%
Banyan Tree Holdings Limited 0.46 0.46 -1.1%
CDL Hospitality Trusts 1.62 1.63 -0.6%
Eagle HTrust 0.68 0.67 1.5%
Far East Hospitality Trust 0.68 0.69 -0.7%
Frasers Hospitality Trust 0.72 0.71 0.7%
Hotel Grand Central Ltd 1.30 1.28 1.6%
Hotel Properties Ltd 3.49 3.47 0.6%
Mandarin Oriental International Ltd (US$) 1.55 1.44 7.6%
OUE Hospitality Trust 0.73 0.73 0.0%
Stamford Land Corporation Ltd 0.49 0.48 2.1%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 158.5 158.0 0.3%
The Ambassador Hotel, Ltd 21.8 21.6 0.7%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 82300 80600 2.1%
Imperial Hotel, Ltd 2005 2002 0.1%
Red Planet Japan Inc 120 120 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]
Mandeep S. Lamba, President, South Asia – HVS Anarock [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]com

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