Hotel Operations in the COVID Era

By Ajay Mehtani and Dipti Mohan
Social distancing has become the new normal in today's COVID-19 world and hotels need to re-evaluate and update their SOPs to quickly adapt to this change. This document will help hotels in the planning process for the formulation of COVID-19 related SOPs.
 
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Guocoland Sells Guoman Hotel to Dahua Group for RMB1.44 Billion in Shanghai

Shanghai Xinhaolong Property Development Company Limited (“Shanghai Xinhaolong”), an indirect wholly-owned subsidiary of Singapore-based developer, GuocoLand Limited (“GuocoLand”), incorporated in the People’s Republic of China, has entered into an agreement with Shanghai Zhengjiu Industrial Company Limited (“Shanghai Zhengjiu”), a subsidiary of China-based developer, Dahua Group Company Limited, to sell Guoman Hotel for RMB 1.44 billion (SGD290.7 million). Shanghai Xinhaolong is controlled by Malaysian billionaire Quek Leng Chan’s Singapore-based Hong Leong Company. The agreement comprises of the sale of the 442-key Guoman Hotel on Daduhe Road near Changfeng Park in western Shanghai, along with 256 underground parking spaces. GuocoLand has previously developed the hotel as part of the company’s 492,272-square-metre Guosun Centre mixed-use development north of Suzhou Creek in western Shanghai which includes the Guoson Mall, offices for lease and strata-title small office-home office element, along with serviced apartments. The hotel is also part of the same Changfeng Eco Business District masterplan as the Guoco Changfeng City office project, which the company plans to complete next year. The sale of the hotel came after the company has opened the hotel in July 2010.

CDL Acquires 51% Stake in Sincere Property Group for RMB4.39 Billion

On 15 April 2020, Singapore-based City Development Limited (“CDL”) has entered into a series of agreements with HCP Chongqing Property Development Company Limited (“HCP”) which is wholly-owned by Sincere Property Holdings Limited (“SPHL”), an investment holding company incorporated in the Cayman Islands that is the indirect controlling shareholder of China-based real estate developer, Sincere Property Group (“Sincere”), to acquire 51% stake in Sincere for RMB4.39 billion. The deal will provide CDL with an expanded geographical presence of 18 cities in China, a pipeline of 64 development projects, an increase in portfolio allocation for China from 13% to 17%, and a portfolio of 27 investment properties in China, including nine retail malls, a 404-unit Changfeng Serviced Apartment in Shanghai and four hotels with more than 1,000 rooms. The hotels include 298-key Chengdu Hilton Hotel and 284-key Chongqing Jiangbei Doubletree by Hilton. The terms of the deal also provide CDL with a call option to purchase an additional 9% effective interest in Sincere Property for RMB 770 million.

Construction on Two Bridges Across Cua Lục Bay in Quang Ninh to Start this Month

Construction work for provincial-funded Cua Lục Bridges 1 and 3 is planned to start by the end of April in the Quang Ninh Province. The two projects were capitalised at VND3.85 trillion (UD163.9 million) under the management of Quang Ninh Civil and Industrial Work Project Management Board. The 5-span, 4.2-kilometre Caa Lục Bridge 1 will connect Cai Lan-Viet Hung Industrial Zone to the National Highway 279 in Le Loi Commune of Hạ Long City. Whereas, the 3-span, 2.84-kilometre Cua Lục Bridge 3 will link the FLC residential area in Ha Khanh Ward to the National Highway 279 in Thong Nhat Commune of Hạ Long City. Slated to be completed in 2022, the two bridges are key projects of the province this year. The projects are expected to contribute to the development and expansion of Ha Long City in order to promote investment into the industrial zones and residential areas. It is also expected to promote socio-economic development of the province. The bridges will also help to reduce traffic flow through Bai Chay Bridge and the National Highway 18 in Hạ Long City. In particular, the two bridges will help promote the forest-sea tourism chain in the area.

Crown Group Secures Land for USD500 Million Mixed-use Condominium and Hotel in Downtown Los Angeles

Australia-based real estate development company, Crown International Holdings Group (“Crown Group”), has secured land for its first project in Downtown Los Angeles, the United States. Crown Group plans to build a USD500 million mixed-use high-rise condominium and hotel tower. The project is part of a joint venture with Singapore-based Magnus Property Private Limited and one of Indonesia-based largest property developers, Agung Sedayu Retail Indonesia, a subsidiary of Agung Sedayu Group focusing on premium lifestyle brands. Crown Group is also progressing entitlements with Los Angeles City Hall for the proposed tower, which is earmarked for the southeast corner of South Hill and eleventh streets at the convergence of Downtown’s financial, fashion and South Park districts. The 43-storey building is slated for completion in 2024, comprising 319 units of condominium on the upper levels of the building, and an exclusive residents’ retreat over the top two floors. On the other hand, a 160-key luxury hotel will occupy the lower levels. Crown Group is presently in discussions with several luxury hotel brands.

Absolute Share Price Performance, as on 24 April 2020