Hotel Transactions in Asia Pacific Hit $5.7 Billion

Malaysia's Tourism, Arts and Culture Minister reported that the country recorded 1,185,050 Chinese arrivals from January to May. That is up 194% from last year and was attributed to the implementation of visa-free travel arrangements between Malaysia and China. The Minister has called on airlines to expand their routes between the country and various global destinations.

The Beijing Municipal Bureau of Culture and Tourism said hotels in the city received 9.97 million visitors in July, an average of 320,000 visitors per day. This is 1.43 million more than in July 2023. At the end of 2023, there were 4,925 hotels operating normally in the city, with 435,700 rooms.

This past Saturday, Macau saw a new post-pandemic high of 717,197 people entering and exiting the SAR. That helped push total visitor arrivals for the year over 20 million. This is two months faster than that milestone was hit last year, according to the Public Security Police Force. Average daily visitor arrivals to Macau so far this year sits at 93,116, up 36.1% from the same period in 2023 but still only 82.9% of the 2019 figure.

JLL said hotel transactions grew in tandem with the uptick in tourism across Asia Pacific in the first half of the year with hotel deals jumping 19% year over year to touch US$5.7 billion. Major deals in Japan were said to have led this surge. JLL said the APAC region is expected to make a rebound with a projected record of $11.6 billion in hotel deals for the year. The robust investor interest in Japan is expected to drive that but JLL said markets like India, South Korea and Thailand are expected to see the highest annual growth. Overall, this would be 2% year-over-year growth for the region if the total is hit, establishing APAC's return to pre-pandemic transaction levels. JLL expects the next 12 months to see compelling opportunities for hotel investment in Asia Pacific as hotel performance continues to improve in key markets. Impending debt maturities, available cash on hand, rising capex needs and closed-end funds reaching the last stage of their investment lifespan are all expected to drive the hotel transaction volume. As of June, RevPAR in the region was at 89% of 2019 levels with occupancy levels down just -4%.

The Business Times said Perennial Holdings have appointed two property consultants, said to be CBRE and Savills, to seek buying interest for The Capitol Kempinski Hotel Singapore, Capitol Theater and the retail arcade space. The total gross floor area is about 244,500 square feet and the article said the asking price is S$650 million. The Capitol Singapore complex is on land with 99-year leasehold tenure with 85.5 years left on that lease. The 157 hotel rooms and suites are on the upper levels of the four-story Capitol Building and Stamford House. The street level of Stamford House includes the hotel's lobby, lounge, a restaurant and a bar. Capitol Theater is a multifunctional venue for concerts, plays and movie screenings. It is also the hotel's ballroom for weddings and a space for corporate events. The consultants have been hired to identify a buyer capable of managing the three components – hotel, theater, and retail arcade in a holistic, integrated fashion.

T&T Group has chosen Hilton to manage and operate three high-end hotel projects in the Mekong Delta region. T&T Hotel Management Company Limited signed a cooperation agreement with Hilton to manage the hotel projects of T&T Group in Ho Chi Minh City An Giang, Dong Thap and Vinh Long. Hilton will manage and operate DoubleTree by Hilton Long Xuyen (An Giang), DoubleTree by Hilton Sa Dec (Dong Thap) and Hilton Garden Inn Vinh Long. Hilton will participate and assist T&T Hospitality in the entire process related to building ideas concept, design, engineering, landscape and more needed to complete the three hotels in accordance with the criteria and standards of the brands. The DoubleTree by Hilton Sa Dec has begun construction already while the other two are expected to begin construction in 4Q24.

Hyatt Hotels Corporation announced the opening of Grand Hyatt Kunming, marking the debut of the Grand Hyatt brand in the heart of China's southern Yunnan province. Grand Hyatt Kunming, together with Grand Hyatt Residences Kunming, a Grade-A office tower and luxury shopping mall will be housed in the Spring City 66 plaza. The properties were developed by Hang Lung Properties. The Grand Hyatt Kunming offers 331 rooms and suites starting at 45 square meters. There are spacious corner rooms with 270-degree views, while guests staying in Grand Club guestrooms can enjoy access to the Grand Club lounge. There are five distinct dining and drinking venues, a 25-meter indoor pool, spa, fitness center and over 1,900 square meters of versatile event space.