Transactions that matter. — Photo by Source: AP Hospitality Advisors

Asia-Pacific reopening status. — Photo by Source: AP Hospitality Advisors

PA Webinar – The landscape of hotel operators in Asia-Pacific: results of our latest publication.

Join us on Friday, May 6 at 3:00 p.m. (Hong Kong/Beijing time) for the webinar covering the hotel operator landscape in Asia Pacific presented by Dan Voellm, MRICS, CEO and Founder of AP Hospitality Advisors. This webinar presents the update of hotel operators in Asia Pacific from the most recent release of AP – Hotel Operator Guide 2022. A Q&A session will follow the presentation. Register the event here.

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  • Hong Kong hotel assets are attracting more attention from investors and several deals are being negotiated. Located on Hong Kong Island, the 214-room Grand hotel in town to Sai Wan is under negation for a 950 million HKD ($121 million) or the equivalent of HKD 4.4 million ($565,000) by key for sale; on the other side of the island, the 317 keys Ramada Hong Kong Grand View at North Point also received a price offer from HKD 1.1 billion ($140 million) or the equivalent of 3.5 million HKD ($440,000) by key. According to local media, both properties are owned by a Hong Kong-listed company Magnificent Hotel Investments Limited and were operating as government-designated quarantine facilities at this time. The buyer would be a fund manager who is actively seeking offers to convert to serviced residences or co-living in the future.
  • Property developers in mainland China continue to seek exit opportunities from their existing assets. Yunnan Metropolitan Real Estate Development announced that it would sell its 289-room Waldorf Astoria Chengdu in an official announcement, and the book value of the property is approximately RMB643 million ($98 million) according to its latest financial report.
  • In Japan, Odakyu Electric Railway plans to sell all 746 rooms Hyatt Regency Tokyo with partial ownership of the neighboring office building according to local news. The deal is expected to reach 100 billion yen ($867 million); several funds expressed interest after the announcement.

Transactions that matter.

1. So/ Singapore

  • the 134 keys So/Singapore is sold to the Vietnamese company Viva Land by the Singaporean developer Royal Group for approximately 240 million SGD (173 million USD) or the equivalent of 1.8 million SGD (1.3 million USD) per key. The price per key has set a new record in the hotel market in Singapore. The hotel has over 49 years remaining in its lease.
  • The property is located in a key location in the Central Business District (CBD) and currently has two F&B outlets, a wedding venue and other supporting facilities. Opened in 2014 as Sofitel Singapore, the hotel was a 60-year-old leasehold conservation building officially known as the Ogilvy Center in 2011, and was later renamed So/Singapore by the Royal Group, which owns Sofitel Singapore Sentosa Resort, Raffles Sentosa Resort and other hotel assets in Singapore and Malaysia.
  • The sale of So/Singapore is potentially the start of a new integrated development in the CBD area, as Viva Land acquired the adjacent office tower, Robinson Point, in 2020. After the transaction, Viva Land would own a set of 3,260 square meters (35,000 square feet) of commercial sites in the heart of the city. It is likely that Viva Land would opt for the redevelopment of a mixed-use project with at least 60% residential space under the CBD incentive scheme introduced by the government in 2019.

2. Fortuna Hotel, Singapore

  • the 106 keys Fortuna Hotel in Singapore was soon to change hands to 86 million SGD (62 million USD) or SGD809,000 (US$585,000) by key. The buyer, reported by local media, is an entity owned equally by JMD Holdings and an associate of TCRE Partners. The property is said to be sold by the Chng family, who also own the Fortuna Hotel Hanoi, and the hotel first went on the market for SDG 99.8 million in 2020.
  • The hotel was originally developed by HCA Holdings after the collapse of the previous building, the New World Hotel in 1986 and subsequent acquisition. The Chng family took over the hotel in 1993 and completed a hotel extension in 2010. The hotel currently has an F&B outlet, ground floor retail space and a parking space in the basement.
  • The hotel could potentially undergo redevelopment in the future and should benefit from active development projects in nearby areas. However, the site is zoned for hotel use as part of the government’s master plan in 2019, and there is likely to be either an upgrade to its current building or demolition for a new hotel building.

3. Maafushivaru Resort, Maldives

  • Based in Hawaii Outrigger Hospitality Group announced its acquisition of the newly renovated Maafushivaru Resort on a private island in the South Ari Atoll region of the Maldives. The resort is 25 minutes by seaplane from Malé, the country’s capital, and consists of 81 luxury villas and seven F&B outlets.
  • The newly acquired resort would be the sixth property in Outrigger Hospitality Group’s Asia-Pacific portfolio following its resorts in Thailand and Fiji. Prior to the deal, the resort was operated under the LTI Hotels brand and developed by Paradise Resorts Development and Management Private Limited. The resort temporarily closed due to the COVID-19 pandemic and reopened in July 2020 after extensive renovations.

The COVID news that matters.


  • Malaysia reopened its international border to all travelers on April 1, and travelers are welcome without a mandatory quarantine. The government further announced that vaccinated travelers would not need a COVID-19 test result and related insurance coverage to enter the country from May 1. The relaxed measures are expected to attract foreign visitors from neighboring countries in particular, and life in Malaysia is returning to pre-pandemic with the optional ordering of outdoor masks and the reopening of nightclubs in mid-May.
  • Tourism Malaysia has unveiled its strategic and marketing plan for 2022 to 2026, and it aims to attract 2 million tourist arrivals with a contribution of RM8.6 billion this year. The country has also recognized the importance of domestic tourism where the authorities would pursue development for sustainable growth. Ahead of reopening in April, Malaysia piloted a domestic travel bubble where Langkawi first opened to domestic travelers in mid-September 2021. The pilot managed to attract over 720,000 domestic tourists contributing to no less than RM 750 million (USD) revenue. 172 million) in just three months.

New Zealand

  • At the stage of the reopening plan, New Zealand welcomes international travelers from visa-exempt countries/territories or holders of valid visitor visas from May 2. The country has already opened its doors to Australian citizens or permanent visa holders ahead of the Easter holidays, and the country is expected to reopen and resume normal visa processing in October.
  • New Zealand’s tourism industry will take a few years to recover, and the government plans to transform its tourism from “high volume” to “high value” in the coming years. The new vision would come with legislative and regulatory frameworks towards more sustainable tourism in the country, including greater respect for the environment and communities.

South Korea

  • South Korea lifted its quarantine requirements for vaccinated visitors from April 1, and social distancing measures are being phased out in the country. The government also slowly eased flight bans that limit the number of flights arriving at Incheon airport and announced the increase in international flights in May; the aim is to resume overseas flights to at least 50% of 2019 levels by the end of 2022.
  • The relaxed quarantine measures also apply to travelers returning to Korea, and this has effectively boosted outbound travel to Korea. The growing demand for flights from Korean travelers is seen in destinations in Europe, Southeast Asia and the Pacific Ocean. For example, Hawaii was the first destination to be reborn since the flight ban in March 2020, and the first flight to Hawaii recorded an 80% seat occupancy.

Asia-Pacific reopening status

Most Southeast Asian countries have reopened their borders and flights between cities are gradually resuming. However, destinations in Greater China still require quarantine for all visitors, regardless of their vaccination status, and Japan is the only country not to publish a clear plan for reopening leisure and travel visitors without quarantine in the region outside of Greater China.

Anchi Liu
AP Hospitality Advisors

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