CapitaLand Deals Underscore Japan’s Hospitality Boom

From January 1 to December 7, Macau welcomed more than 32.5 million visitors, up 25.7% from the same period in 2023 and a recovery of 88.1% from the same period in 2019. Cumulative cross-border trips surpassed 200 million in that period, up 9.4%. That includes visitors and people living in Macau. Macau officials predict 35 million visitors will arrive next year.

Thailand’s MICE industry had a 42% rise in overseas MICE travelers in fiscal 2024 – October 2023 to September 2024. That totaled 1.16 million travelers, just missing the record high of 1.2 million travelers achieved in 2019. The Thailand Convention and Exhibition Bureau is expecting to surpass that in 2025, pointing to a series of large-scale international events. In fiscal 2024, the top market sources included China, India, Malaysia, Vietnam, Korea, Singapore and Hong Kong. Germany, the UK, Russia, France, and Italy were the top five European markets.

The number of foreign tourists to Niseko, Hokkaido, the popular ski resort in Japan, has recovered to nearly 90% of pre-Covid levels, with expectations for inbound tourism continuing to increase. Tokyu Fudosan Holdings Corp plans to invest 10 billion yen (US$66 million) from 2024 to 2026 to boost transportation capacities, including those of gondolas, and improve the resort’s restaurants and other facilities to improve the experience for the increasingly large crowds.

Tokyo Tatemono Co., Ltd and The Ascott Limited announced a strategic partnership to launch SEN/KA TOKYO by The Crest Collection in Tokyo, Japan. The lodging property will mark the debut of CapitaLand’s Ascott’s luxury brand The Crest Collection in Japan and will become the 13th property in the brand’s global portfolio. The hotel is slated to open in the second half of 2029. This is also the first collaboration between Tokyo Tatemono and Ascott. SEN/KA TOKYO by The Crest Collection is a hotel-in-residence, occupying four levels (6th to 9th) of the Yaesu 1-Chome North District Type 1 Urban Redevelopment Project spearheaded by Tokyo Tatemono. The property will feature 92 guestrooms, suited for both short and extended stays showing the advantage of Ascott’s flex-hybrid operating model. The property includes a grand atrium and lounge offering views of the Nihonbashi River.

The move by CapitaLand to acquire SC Capital Partners Group over a period of five years is seen as a thumbs-up for the stellar prospects for Japanese hospitality. CapitaLand said Japan is a focus market, and the acquisition of SC Capital Partners will triple their funds under management in Japan from S$2.9 billion to S$11 billion. The deal is for CapitaLand to initially buy a 40% stake in SC Capital Partners Group for S$280 million, with the remaining stake acquired in phases over the next five years. SC Capital Partners Group has acquired over 120 assets in Japan, from hotels to data centers. Their hospitality platforms in Japan include the SCCP-sponsored manager of TSE-listed Japan Hotel REIT as well as hospitality operator Hotel Management Japan. SCCO also acquired a 27-asset portfolio of Japanese resort hotels from Daiwa House for $900 million in 2023 in partnership with Goldman Sachs Asset Management and the Abu Dhabi Investment Authority. JHR, a vehicle with around 80 hotels, lies at the center of the CLI deal.

Hotel Imperial Palace Seoul, operated by Taesung21, officially opened as Grand Mercure Imperial Palace Seoul Gangnam, in partnership with French global hotel chain Accor Group on October 10th. The hotel first opened in 1989 as Hotel Amiga, closed in 2022 due to the effects of the pandemic, and resumed operations this past June. The hotel offers 224 rooms and suites, including a 61-pyeong royal suite. Included are 90 serviced residences for long-term guests. Dining options include buffet and Chinese restaurants, café lounge and The Bar.

Holiday Inn Kuala Lumpur Bangsar is officially opening on December 16th. The hotel offers 220 guest rooms across 10 floors and includes state-of-the-art amenities, refined culinary offerings and the first Holiday Inn property in Kuala Lumpur to introduce the brand’s Open Lobby design concept. That will be on Level 1 and is a multi-functional space to relax, work, or socialize. For business meetings and events, the hotel offers five flexible and spacious meeting rooms along with the Grand Podium ballroom for the largest functions. Dining options include Clover Restaurant, located on Level 1, along with the Pitstop lounge for a quick grab-and-go option.

IHG Hotels & Resorts said they will develop a new Holiday Inn Express hotel in the Indian city of Ayodhya with plans to welcome guests by mid-2028. Abhishek Jain is the owner of the property which will include 125 rooms, an all-day dining restaurant, a fitness center, a business center, parking spaces, a laundry room, and a meeting room. IHG’s current portfolio in India includes 46 hotels across five brands, with a pipeline of 58 hotels slated to open in the next three to five years.

Al Habib Emporio, a hotel and development company based out of Srinagar, announced the opening of Ramada Encore by Wyndham Srinagar Rajbagh in Jammu & Kashmir. The hotel is opened under a franchise with Wyndham Hotels & Resorts. The Ramada Encore is located just 12.5 kilometers from Srinagar Airport. The hotel has 48 modern rooms and a host of amenities, including a lobby lounge, All-Day Dining, swimming pool, fitness center, event space and a business center.

Dennis Uy hopes the fourth time is the charm as his PH Resorts has yet another potential partner for an IR casino development in Mactan, Cebu Province in the Philippines. Bloomberry Resorts, AppleOne Properties, and Okada Manilaowner Tiger Resort Leisure and Entertainment Inc. all canceled their agreements with Uy after doing due diligence on the project. The new partner is EEI Corp, which signed a memorandum of understanding to finance, construct, and complete the $300 million Emerald Bay Resort and Casino project that Uy started in 2017 and still needs to be completed. EEI is a construction company that is backed by a firm linked to the family of President Marcos Jr’s cousin. Let’s hope this means that they, too, won’t leave Uy at the altar.