HVS Asia Pacific Hospitality Newsletter - Week Ending 16 October 2020 (October 19, 2020)

HVS Monday Musings: Mixed-use development - The most sustainable model for hotels going forward

By Mandeep Lamba, Akash Datta and Dipti Mohan
Mixed-use developments are going to be the most sustainable model for hotels going forward as they leverage the best of each asset class, while diversifying the risks for the investors and enhancing the overall experience for the guests. Read on to know more.

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Swansea Hotel Acquired by Hunter Group in Lake Macquarie, Australia

Local North Coast group, Hunter Hotels, have acquired the Swansea Hotel located at the Lake Macquarie regions of New South Wales from Australia-based Laundy Hotels at an undisclosed price. Laundy Hotels first purchased the Swansea Hotel in 2016 for AUD13 million off hotelier Phil Bernie. Following the acquisition, Justine Laundy embarked on a significant reconfiguration and renovation program which mainly involved repurposing a building area that had been historically leased to a third party; consequently, resulting in a marked uptick trading performance and overall asset value. The large-format Swansea Hotel sits on a 3,235 square-metre site and is in the heart of the suburb’s retail precinct. It includes a 50-space off-street carpark, and the benefit of 24-hour trading approval with 30 gaming machines. This brings Hunter Hotels’ portfolio up to nine venues in the Maitland, Central Coast and Lake Macquarie regions of New South Wales. The portfolio also includes Kincumber Hotel, Pippi’s at the Point, and Finnegan’s Hotel in Newcastle’s Central Business District.

Singapore and Hong Kong Enters into In-Principal Agreement to Establish Bilateral Air Travel Bubble for Leisure Travel Without Need for Quarantine

Singapore and Hong Kong have reached an in-principle agreement to establish a bilateral air travel bubble, which will exempt travellers from quarantines or stay-home notices. This arrangement represents the first reciprocal travel bubble in the Asia Pacific region and in the world. Under the agreement, there will be no restrictions on segments of the population, itinerary or purpose of travel. But travellers have to undergo mutually recognised testing for a negative COVID-19 result. In addition, they will have to take dedicated flights that do not accept transit passengers. There will be a quota on the number of travellers that can travel between Singapore and Hong Kong but as operations stabilise, the quotas may be increased. The air travel bubble launch date and other implementation details will be announced in a few weeks. Hong Kong has been seeking to form similar travel bubbles with Singapore and ten other destinations including Australia, France, Germany, Japan, Malaysia, New Zealand, South Korea, Switzerland, Thailand and Vietnam.

Singapore and Indonesia Established Reciprocal Green Lane

The government of Singapore and Indonesia have announced a reciprocal green lane between the two countries. The travel application based on the green lane will begin on 26 October 2020. The reciprocal green lane will enable cross-border travel for essential business and official purposes to resume. Eligible applicants for the green lane include Indonesian citizens, and Singapore citizens and residents. According to Indonesian Foreign Minister, Retno Marsudi, Singapore travellers to Indonesia must have sponsorship from an "Indonesian government/business entity". They should also have applied for a visa online through Indonesia's directorate-general of immigration. She also mentioned that Indonesians travelling to Singapore must have sponsorship from a Singapore government agency or an enterprise in Singapore. Indonesians do not have to apply for a visa but must instead apply for a Safe Travel Pass, similar to requirements for visitors from other countries with green lane or fast lane arrangements with Singapore. These travellers will have to abide by the COVID-19 prevention and public health measures mutually agreed upon by both countries. The points of entry and exit would be Tanah Merah Ferry Terminal and Batam Centre Ferry Terminal for sea travel; and Changi Airport and Jakarta’s Soekarno-Hatta International Airport for air travel.

Western Australia Premier Mark McGowan Announced 50,000 Affordable Airfares

Western Australia (“WA”) Premier, Mark McGowan, announced the largest regional aviation deal in WA, more than 50,000 affordable airfares to the North West will be pushed out over the next one year. The deal is a partnership with Tourism WA, Qantas, and Virgin Airlines. Through this partnership, Virgin Australia will be offering airfares between Perth and Broome from AUD199 one-way between 2 November 2020 and 30 October 2021, or to Kununurra from AUD249 one-way ‪between 29 March and 30 September 2021. Qantas will be offering one-way fares between Perth and Exmouth from November 2020 for 12 months, priced at AUD149 one-way during low season from ‪25 October to 27 March, when booked 30 days in advance, and AUD169 during high season from ‪28 March to 30 October, when booked 45 days in advance. This will allow city-based residents to travel to Broome, Kununurra, Exmouth and the surrounding areas, and for North West locals to visit Perth and explore the city, providing a great economic boost for both regions. The program was established to support tourism businesses that were affected by the COVID-19 pandemic.

Absolute Share Price Performance, as on 16 October 2020

Closing Share Price as at 16 October 2020 9 October 2020 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 1.35 1.30 3.8%
Event Hospitality & Entertainment Ltd 9.38 9.57 -2.0%
General Property Group 4.03 4.12 -2.2%
Mirvac Group 2.22 2.26 -1.8%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 21.40 21.80 -1.8%
Dusit Thani Public Co Ltd 7.05 7.15 -1.4%
The Erawan Group Public Co Ltd 2.94 3.08 -4.5%
Grande Asset Hotels & Property Public Co Ltd 0.52 0.52 0.0%
Laguna Resorts & Hotel Public Co Ltd 29.00 30.00 -3.3%
Minor International Public Co Ltd 19.90 20.50 -2.9%
S Hotels and Resorts Public Company Limited 1.98 1.98 0.0%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 8.30 8.30 0.0%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co.,Ltd. 3.11 3.12 -0.3%
Guangzhou Dong Fang Hotel Co Ltd 9.66 9.42 2.5%
Huazhu Group Limited 41.31 44.51 -7.2%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 12.98 12.76 1.7%
Regal Hotels International Holdings Ltd 2.95 2.94 0.3%
Sino Hotels Holdings Ltd 2.33 2.33 0.0%
The Hong Kong & Shanghai Hotels Ltd 5.96 5.96 0.0%
Shangri-La Asia Limited 6.21 6.28 -1.1%
National Stock Exchange (INR)
Chalet Hotels Ltd 136.15 138.30 -1.6%
IHCL (Taj Hotels, Resorts & Palaces) 96.3 97.7 -1.5%
EIH (Oberoi Hotels & Resorts) 78.2 77.5 1.0%
Hotel Leela Ventures 4.8 4.8 -1.0%
Lemon Tree Hotels Ltd 27.7 27.4 0.9%
Korea Exchange (KRW)
The Shilla 75100 74900 0.3%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.34 0.34 0.0%
ARA Htrust (US$) 0.29 0.29 0.0%
Ascott Residence Trust 0.91 0.91 0.0%
Banyan Tree Holdings Limited 0.23 0.24 -4.2%
CDL Hospitality Trusts 1.07 1.08 -0.9%
Eagle Htrust 0.14 0.14 0.0%
Far East Hospitality Trust 0.56 0.56 0.0%
Frasers Hospitality Trust 0.43 0.43 0.0%
Hotel Grand Central Ltd 0.93 0.93 0.0%
Hotel Properties Ltd 2.86 2.86 0.0%
Mandarin Oriental International Ltd (US$) 1.80 1.83 -1.6%
Stamford Land Corporation Ltd 0.29 0.29 0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 132.0 132.5 -0.4%
The Ambassador Hotel, Ltd 30.0 30.0 0.0%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 53300 55000 -3.1%
Imperial Hotel, Ltd 2004 1856 8.0%
Red Planet Japan Inc 68 68 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]
Steven Zhu, Vice President – HVS Shanghai [email protected]
Florian Kittler, Managing Director – HVS Executive Search Europe & Asia Pacific [email protected]

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