Hotel Valuation Index 2018 for the United States – Now Available

Each year, more than 80 HVS hotel experts conduct thousands of market studies, feasibility studies, and appraisal assignments for all types of hotels across the U.S. The intelligence gathered from these engagements, combined with analysis of data on hotel performance from HVS and STR, supports the hotel value conclusions and projections presented in the annual HVI.

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8M Real Estate Acquires Wanderlust Hotel

Singapore-based privately-held property investment company, 8M Real Estate (“8M”) is paying S$37m for the 29-key Wanderlust Hotel in Little India, Singapore from a company linked to Loh Lik Peng, the founder of hotel and restaurant group Unlisted Collection (“Unique Collection”). The transaction represents 8M’s first acquisition outside Districts 1 and 2 and will be part of 8M’s 42 conservation property portfolio worth about SGD500 million. The freehold four-storey conserved building is located on a 4,634 square feet site and has a built-up area of about 15,000 – 16,000 square feet. The hotel and the restaurant on the ground level will continue to be operated by Mr. Loh’s Unlisted Collection after the completion of the transaction in a few months. Unlisted collection’s portfolio currently comprises of six unique boutique hotel properties and twenty-two restaurants across five major countries in Dublin, London, Shanghai, Singapore and Sydney.

Lodgis Hospitality Acquires Two Raffles Hotels in Cambodia

Singapore-based Lodgis Hospitality Holding Pte. Ltd. (“Lodgis”), a joint venture between US-based private equity firm Warburg Pincus and Vietnam-based private equity firm VinaCapital, has completed the acquisition of two Raffles Hotels in Cambodia, the flagship Raffles Hotel Le Royal Phnom Penh and the Raffles Grand Hotel d’Angkor Siem Reap for an undisclosed sum. With the acquisition, Lodgis now owns the largest collection of luxury historic hotels in the Indochina region. The purchase of the two Raffles Hotels also marks the company’s first acquisition outside of Vietnam. Built in the 1930s, both Raffles Hotels are historic buildings that were restored and reopened under the Raffles brand in 1997. The 175-key Raffles Hotel Le Royal Phnom Penh is situated in central Phnom Penh, adjacent to the U.S. Embassy and close to several key government offices, the Royal Palace and the Central Market. The 119-key Raffles Grand Hotel d’Angkor Siem Reap is located in the heart of the old French Quarter and in proximity to the UNESCO World Heritage site of Angkor Wat. The two hotels will undergo renovations, which includes upgrading of guestrooms, food and beverage outlets and meeting facilities. Lodgis has expanded its portfolio to include more than 15 projects in operation and under development across the Indochina region in the last 18 months.

Thailand Forecasts Further Growth in 2019

Tourism Authority of Thailand (“TAT”) is expected to experience further growth in the year 2019, with at least a 10% increase in tourism receipts and an approximate 7% uplift in visitor arrivals. TAT forecasts that international arrivals will reach 40 million in 2019, representing an estimated growth of 2.5 million visitors from the 37.5 million predicted for this year. In line with the increase in visitor arrivals, TAT also expects tourism revenue to grow by 10%, reaching THB3.4 trillion in 2019. In 2019, TAT is expected to encourage more visitors from the Middle East, with a focus on female travellers, families and medical tourists. Around 610,000 visitors arrived in Thailand from the Middle East in 2017 and accounted for 2% of total international arrivals. In the Americas, TAT will be targeting first-time visitors and millennial tourists. More than 1.5 million visitors came from the Americas in 2017, including 1 million from the United States of America and 250,000 from Canada. Lastly in China, Thailand’s biggest source market, TAT will be focusing on exploring new segments, including families, weddings, sports and wellness visitors from major cities, in an attempt to attract more first-time visitors to the country.

Huazhu Group Emerges as the World’s Fourth Highest Value Hotel Group

China-based Huazhu Hotels Group Ltd. (“Huazhu”) recently announced that it has surpassed UK-based InterContinental Hotels Group (“IHG”) as the world’s fourth highest value hotel group. According to data from Capital IQ, a global market intelligence firm, Huazhu possessed a market value of USD12.8 billion as of 31 May 2018, while IHG was valued at around USD12.1 billion. Marriott was the world’s highest value hotel group with a market capitalization of around USD47.8 billion, followed by Hilton (USD24.2 billion) and AccorHotels (USD15.9 billion). Huazhu now has 18 brands with 3,817 hotels and 384,959 rooms in 382 cities across China. According to its financial report, the group achieved a net revenue of RMB2,091.2 million (USD333.4 million) in the first quarter of 2018, a year-on-year increase of 29.6%.

Absolute Share Price Performance, as on 6 July 2018