Conrad Seoul Back on the Market for $750 Million

STR reported China hotel data for the week ended September 23rd. Hotel RevPAR was up 46.7% year over year, up against a 5.1% comp in 2022. Compared with 2019, RevPAR for the week in China was up 14%.
 
Investment specialists at the Australia-New Zealand edition of the Hotel Investment Conference Asia Pacific said market conditions are stressing hotel owners and operators in Australia, according to a report by CoStar. CBRE Hotels thinks the worst is almost over for Australian hoteliers, with the worst including high-interest rates and the perception of higher risk in hotel investment and development. CBRE said stress on hotel owners and operators is coming from several directions. Colliers said there are pockets of stress and pockets that are not distressed in Australia’s hotel transactions market, with distress often associated with difficulty in meeting financial obligations, such as loan payments, that results in owners selling hotels at discounted prices. JLL said debt is causing the most stress, primarily in new developments, as they have been hit with cost escalation through the construction phase and, in some cases, are new players in the marketplace. There is uncertainty from a banking perspective on how these new players are going to cope with the current headwinds in the cycle. Some believe investors are sitting on the sidelines expecting more distress. JLL said the Australian hotel sector expected deals to top A$2 billion in 2023, which would be the second year in a row with transaction volumes beefed up by new investor entrants.
 
Australia has recommended visa processing for Chinese group travel. Australia’s Ministry of Trade and Tourism said the visa processing restart follows China’s lifting of pandemic-era restrictions last month on outbound group tours to Australia, the US, Japan, and other countries. Before the pandemic, China was Australia’s largest inbound tourism market in terms of spend. In 2019, they spent $581 million, about one-third of all Chinese travel spend in Australia.
 
The Hilton-branded 434-room Conrad Seoul has been put back on the market, according to the South Korean business publication Korea JoonAng Daily. The asking price is said to be US$750 million. Brookfield Asset Management bought the hotel in November 2016. The hotel and the International Financial Center Seoul were purchased for US$1.91 billion. The site also has a shopping center and three office towers. Brookfield thought in August 2022 they had the IFCS site sold to Mirae Asset Global Investments, but the deal fell through when Korean financial authorities warned Mirae to reduce the level of debt proposed for financing the acquisition. Korean regulators also reportedly denied Mirae’s plan to form a REIT for the acquisition. Mirae has filed a case against Brookfield with the Singapore International Arbitration Center to claim back its acquisition deposit of US$150 million.
 
Iconic Penang Sdn Bhd will complete a RM180 million five-star hotel under the Marriott brand in Penang, Malaysia, by the middle of next year. The Iconic Marjorie Hotel will be a 298-room property near Sungai Nibong, touted to be the first five-star Peranakan-inspired hotel of its kind and scale. The hotel will be part of Marriott’s Tribute Portfolio. The hotel development is 60% complete and will be the first in Penang to achieve the gold standard under the Green Building Index. The Lone Pine at Batu Ferringhi became the first local property to be included in Marriott’s Tribute Portfolio in Penang in July. Another Marriott property is expected to open near Gurney Drive this year, besides the Marriott Courtyard, which opened on Macalister Road two years ago.
 
Hyatt Hotels Corporation announced the opening of Hyatt Place Kuala Lumpur, Bukit Jalil, Malaysia’s first Hyatt Place, and the first international hotel in Bukit Jalil. The hotel includes 250 guestrooms and the Hyatt Play brand’s design and amenities. That includes an all-day dining restaurant, the market, the bar, the Necessities program, a fitness center, and event spaces offering up to 4,520 square meters of space. The Hyatt Place Kuala Lumpur, Bukit Jalil, is owned by Mygres Ceramiche Sdn Bhd.
 
The Ascott Limited, Australia, announced its latest apartment hotel in the heart of the gateway city, Quest Geelong Central, is now open. Ascott Australia has invested in a second Geelong property to capitalize on major local investments in tourism, healthcare, and events, including the $500 million Geelong women’s and children’s hospitality to be built within Barwon Health’s CBD site and $294 million Nyaal Banyul Geelong Convention and Event Centre precinct on the waterfront. The greenfield hotel offers 87 self-contained apartments with fully equipped kitchens. The apartments include modern studios and 1,2 and 3 bedroom apartments with balconies and Corio Bay views available. The Quest Geelong Central is part of Pellicano’s $70 million mixed-use Pivot House development. Amenities include a rooftop gym, business lounge, 40-person conference room, BBQ areas, and secure onsite parking. This is the eighth joint development project with Pellicano. Quest Geelong Central is owned by hospitality industry veterans Greg O’Shea and Linda Murray, new Quest franchise business owners, and existing Quest franchisees Mark and Ky O’Shea, and Daniel and Jennifer Wilson.
 
Swiss-Belhotel International introduced its 80th hotel in Indonesia and fourth Swiss-Belcourt branded hotel. The hotel was formerly recognized as D’Max Hotel & Convention Lombok and will be rebranded as Swiss-Belcourt Lombok. This is Swiss-Belhotel International’s first hotel in Lombok. The hotel is an eight-minute drive from Lombok International Airport. The hotel includes 136 rooms, including Deluxe, Grand Deluxe, Executive and spacious Suites. There is an outdoor swimming pool, gym and massage services offered. Event spaces include a ballroom and six meeting rooms. For F&B, there is all-day dining at Swiss Bistro.
 
Amora Group said Amora Beach Resort Phuket, a flagship property they first opened in 1999, is undergoing an extensive refurbishment costing US$14 million. In Australia, their newly purchased Amora Hotel Brisbane is expected to receive a significant amount of investment for its refurbishment into a five-star hotel. Amora Group is gearing up to cement its footprint as a five-star hospitality group in Australia and Thailand with a longer-term goal of expansion in key cities in Asia Pacific and developing Southeast Asian destinations. Amora Beach Resort Phuket is expected to reopen in December as a five-star modern lifestyle resort catering to the preferences of active and adventurous couples, friends, and families.
 
Marriott International announced the launch of Four Points Express by Sheraton, designed for the midscale segment in Europe, the Middle East and Africa. Four Points Express by Sheraton will offer value-conscious consumers a seamless hotel experience in a convenient location, with principles of reliability, simplicity and value in both the design and guest experience. Four Points Express by Sheraton London Euston, the first UK hotel, is expected to open in 2024 with 201 guestrooms following a significant renovation of the current property. In Turkey, two Four Points Express hotels have been signed in Antalya and Bursa. Four Points Express by Sheraton Antalya plans to offer 52 guestrooms upon its anticipated conversion in late 2023. Four Points Express by Sheraton Bursa Nilufer will offer guests a convenient location close to the highway that connects Bursa, Istanbul and Izmir.