HVS Asia Pacific Hospitality Newsletter - Week Ending 1 February 2019
Singapore-based developer, First Sponsor Group Limited ("FSGL"), has acquired a hotel property located in Milan, Italy from BNP Paribas real estate investment fund Fondo Kona ("Fondo Kona") for approximately EUR9.3 million (SGD14.4 million) on 24 January 2019. The transaction was fully paid in cash resources with an estimated acquisition costs of EUR1.4 million (SGD2.2 million), which included an insurance premium and taxes paid in relation to the insurance policy. The six-storey property, which designated use remains as a hotel, is currently vacant but used to house a 65-room four-star hotel named "Grand Hotel Puccini". Since 2015, FSGL has embarked on initiatives to accelerate its growth through selective developments and acquisitions in Europe. Prior to the acquisition, FSGL's portfolio comprises 24 hotel properties across China and the Netherlands.
China-based franchise and hotel management chain, GreenTree Hospitality Group Ltd. ("GreenTree") has entered into a share purchase agreement with Australia-based hotel owner and operator company Argyle Hotel Management Group Pty Ltd. ("Argyle"). GreenTree will become a major shareholder of Argyle while Argyle's founder, CEO and management team will remain one of the largest shareholders of Argyle and become an integral part of GreenTree's management team. The transaction is subject to customary closing conditions and is expected to be completed by March 31, 2019. Argyle manages over 100 hotels and resorts across Asia Pacific, with the majority of its properties located in South West China. Argyle hotel network consists of eight brands ranging from mid-scale to luxury and long-term stay. GreenTree opened its first hotel in 2004 in Shanghai and grew its portfolio thought acquisition and development. GreenTree's portfolio currently comprises of 8 main brands and 2,434 hotels across 267 countries.
Australia-based developer, Yuhu Group ("Yuhu"), has reached an agreement to purchase a new parcel of 1,264 square metres land on the Gold Coast from China-based, Dalian Wanda Group, for USD11.25 million. As the owner and developer of One Circular Quay in Sydney, another premium Australian tower, Yuhu has bought the site which acts as an extension to the company's luxury Jewel mixed-used project ("Jewel") for additional developments. These will include additional amenities to support leisure, exhibitions, entertainment, and business activities. Designed by renowned architects Chad Oppenheim and Barry Lee, Jewel is currently under construction and is positioned to be one of the most desirable destinations for both residents and visitors in Australia. Construction started in February 2016 and is expected to be completed by mid-2019. Once completed, Jewel will feature three crystalline towers consisting of a five-star hotel and a serviced apartment complex.
The national airline of Thailand, Bangkok Airways Public Company Limited ("Bangkok Airways"), has launched direct flights connecting Bangkok with Cam Ranh in Vietnam,starting from 25 January 2019. With current flights to Danang, Phu Quoc and Hanoi, Cam Ranh will become the fourth destination in Vietnam on the airline's global network. The airline operates four flights per week, serviced by Airbus A319 with a total capacity of 144 seats. Located on the Southeastern coast of Vietnam, Cam Ranh is known as the "Riviera of South China Sea" and is only 30 minutes away from Nha Trang, a holiday destination famous for its beaches, sightseeing and recreational activities.
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