Global Hospitality Report (July 20, 2015)

The HVS Greater China Update – 1st Quarter 2015 
By Daniel Voellm, and Wayne Wei

HVS notes that the tourism in Greater China suffered a sharp decline, influenced by regional political and national policies.

In Focus: Sonoma County California Hotel Market 
By Anurat Rojanapairat and Ester Wan

As a major Northern California recreational and tourist destination, the Sonoma County hotel market is flourishing. With more available land than neighboring Napa, lower barriers to entry, and healthy demand levels, hotel supply is increasing.

Challenges Faced with Making Investments in Indonesian Hospitality  

A panel of prominent regional industry specialists at the Tourism, Hotel Investment & Networking Conference (THINC) Indonesia, to be held this September, will engage in a stimulating brainstorming session, deliberating on the critical challenges facing investors in the Indonesian hospitality sector, and exchange their views on formulating and recommending priority action steps in tackling such barriers. The panelists will include Budi Tirtawisata, Group Chief Executive Officer, Panorama Group; Erik van Keulen, Sr. Vice President Development - APAC and SA, Premier Inn/Whitbread; Ishak Chandra, Managing Director Corporate Strategy and Services, Sinar Mas Land; Rio Kondo, Vice President Development - Indonesia and Malaysia, Accor and Suwito, Founder and CEO, Republik Capital Management.

IHG Announces US$938 Million Sale of InterContinental Hong Kong 

InterContinental Hotels Group PLC announced, on July 10, its sale of the iconic 503-key InterContinental Hong Kong for US$938 million (US$1.86 million per key) to Gaw Capital Partners, on behalf of Supreme Key Limited. IHG will continue to manage the hotel under a 37-year contract with three 10-year extension rights. Additionally, the buyer has committed to invest in the hotel’s renovation, scheduled to commence in 2017. According to Forbes, in the aftermath of this announcement, shares of the NYSE-listed IHG rose by 4.9% last Friday. This transaction follows New World Development’s high profile sale of its three hotels – Grand Hyatt Hong Kong, Hyatt Regency Tsim Sha Tsui and Renaissance Harbour View, into a 50-50 joint venture with the Abu Dhabi Investment Authority (ADIA) for US$2.39 billion earlier in April this year, making it the biggest hotel deal in Asia in a decade.

McAleer & Rushe Sell Jurys Inn Portfolio  

To release capital for further development and investment, McAleer & Rushe has sold a four-property portfolio of Jurys Inn hotels in four different UK cities to four separate buyers for a total of £80 million. LaSalle Investment Management acquired the 170-room Jurys Inn Exeter for £16.5 million (£97,000 per room); the long-leasehold of the 310-room Jurys Inn Liverpool was purchased by an institutional client of Sladen Capital Partners for £29.25 million (£94,350 per room); the Charities Property Fund bought the 213-room Jurys Inn Derby for £14.85 million (£69,700 per room); and the 264-room Jurys Inn Nottingham was picked up by a private investor for £20 million (£75,760 per room).


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