Japan's Hotels Record Fivefold Increase in Overseas Investment

The South China Morning Post said Japan’s hotel sector drew a fivefold increase in overseas investment to US$691 million a year to date. A 3.4 billion yen deal by Hong Kong-listed Golden Resources Corporation for Japan’s Ni Corporation is likely to close as soon as the end of this month. Ni Corp owns 133 parcels of land with a total area of more than 326,000 square meters in the ski resort town of Niseko and surrounding districts. The deal will also see Golden Resources gain 11 properties such as restaurants, sports facilities and car parks in Niseko and surrounding areas. The biggest hotel deal so far this year in Japan has been the acquisition of the 746 room Hyatt Regency Tokyo for US$419 million by KKR and Gaw Capital in March. Since the third quarter of last year, foreign investment in Japan’s hotel sector consistently accounted for 40% of the total investment in the segment.

The Australian Financial Review said rapidly rising construction and finance costs have cut almost 1,000 hotel rooms from Australia’s planned openings this yearand a further 1,700 rooms over the next two years. Projects have been canceled or delayed until conditions improve even as luxury brands such as Ritz-Carlton, W and Capella and new lifestyle hotels look to make their mark on the accommodation landscape, according to Colliers.

Total visitor arrivals to Macau rose by 270% year on year in May to 2,213,807. That was down -2.6% from April. Visitor numbers from Mainland China rose by 174% to 1,474,304.  The much talked about and promoted foreign visitation has once again disappointed, down -1.9% in May from April to only 105,975. The Philippines remains the top source for the international market.

Alliance Global Group said they are looking to boost their hotel business in the Philippines via six developments set to be operational over the next five years. By 2028 the company is aiming to grow its hotel capacity to around 11,000 room keys with the addition of six new big hotels to its portfolio under the Megaworld Hotels & Resorts brands. Their current room capacity is around 7,500. The new hotels will be located in Paranaque City, Laguna, Bacolod City in Negros Occidental, San Fernando City in Pampanga, Boracay Island in Malay, Aklan and San Vicente in Palawan.  Alliance’s Travellers International operates six hotel brands while Megaworld operates 12 hotel properties across the country.

Marriott International’s JW Marriott brand has signed a memorandum of agreement with Cebu, Philippines-based AppleOne Group Inc for the development of the first ever 5 star hotel in Panglao, Bohol. JW Marriott Panglao Island Resort & Spa is AppleOne’s third partnership deal with Marriott International following the successful birth of the company’s placement in Cebu through the Sheraton Cebu Mactan Resort and Fairfield by Marriott Cebu Mactan.

Hyatt Hotels Corporation announced the opening of Hyatt Regency Hangzhou International Airport. The 336-room hotel is located a minute walk from Terminal 4. The hotel includes a variety of dining options, 2,500 square meters of multi-functional meeting and event spaces, as well as a tranquil FLO Spa and wellness facilities. The hotel’s 336 guestrooms include 18 suites.

Hotel JAL City Bangkok, the 16th property to operate under the Hotel JAL City brand, announced the opening of the hotel will take place on July 3. The opening had been postponed due to the pandemic but the hotel is currently operating as Hotel Verve Bangkok before rebranding to Hotel JAL City Bangkok. The hotel is situated adjacent to Hotel Nikko Bangkok and comprises 324 guest rooms, each with a standard area of around 28 square meters. J-Residence room are 56 square meters. The second floor of the hotel includes S-SEN restaurant and there are three meeting rooms totaling more than 300 square meters.

Hilton announced the signing of Hilton Sohna Resort & Spa, marking the debut of the flagship brand in the Delhi-NCR region. This marks Hilton’s second hotel and management agreement with the Dangayach Group, following the recent landmark signing of the country’s first Waldorf Astoria in Jaipur. The expansive 165-key resort will be spread across 9.3 acres and will feature 105 Palace Rooms and 60 Villas. There will be 7,500 square meters of indoor and outdoor spaced dedicated to meetings and social events. There will be multiple dining outlets, a state of the art fitness center and a designated spa zone.

Asset World Corp Public Company Limited (AWC) strengthened its long-term partnership with Nobu Hospitality to develop Plaza Athenee hotels in New York and Bangkok. The Plaza Athenee Nobu & Spa New York will represent Nobu’s inaugural hotel in New York and will offer 145 rooms, a traditional Japanese Onsen, spa and wellness center. The hotel will offer a Nobu omakase experience as well as a bar and lounge, and a rooftop area for private parties. In Bangkok, the Plaza Athenee Nobu Hotel and Spa Bangkok will offer ultra-luxury hospitality and a unique world-class F&B experience. The property will also include a special Nobu cruise boat for bespoke private functions.

Jones Lang Lasalle said they played a key role in advising and facilitating the sale of a hotel portfolio, the first hotel transaction in Southeast Asia this year. Everland Opportunities IX Limited, a real estate development firm in Hong Kong, acquired three properties from Strategic Hospitality Holdings Ltd, a unit of the Thai conglomerate Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust for a total investment of $106.1 million. The portfolio includes the 3-star Ibis Saigon South Hotel and the 4-star Capri by Frasers Hotel, both situated in District 7 of Ho Chi Minh City and the 5-star Pullman Jakarta Central Park Hotel in Indonesia. The sale of Capri by Frasers Hotel did not include any ownership rights while the Ibis and Pullman sales included the management rights held by Accor for the Pullman and Ibis brands. SHREIT listed these hotels for sale in October 2020 for nearly $133 million in asking price. The valuation included $14.7 million for the 140 room Ibis Saigon South Hotel, $23.7 million for the 175 room Capri by Frasers Hotel and $94.3 million for the Pullman Hotel in Jakarta. The hotels were said to be racking up losses for SHREIT so the board of directors decided to divest the hotels despite the lower purchase price offered by potential buyers.

Personnel Move

Royal Orchid Hotels announced the appointment of Philip Logan as its new Chief Operating Officer, effective June 19. Logan’s last position was Cluster leadership role for Voyages Indigenous Tourism Australia for Ayers Rock Resort in Southern Hemisphere Australia which has five resorts and 16 food and beverage outlets.