HVS Asia Pacific Hospitality Newsletter - Week Ending 1 March 2019
Singapore-based property firm, First Sponsor Group ("First Sponsor"), has entered into a sales and purchase agreement for 94.9% of two German firms, Rock Lux Opco S.à r.l. and Rock Lux S.à r.l., which own and operate the Westin Bellevue Dresden hotel in Dresden, Germany, for EUR49.5 million (SGD75.7 million). The acquisition is in collaboration with Germany-based hotel operator, Event Hotels Group ("Event") that owns the remaining 5.1% of the German firms. The 340-key property, with over 1,800 square metres of meeting and event space, is located between the old and new towns of Dresden, and has reportedly achieved an average occupancy of 69.1% and an average room rate of EUR99 in 2018. First Sponsor and Event are expected to spend more than EUR10 million (SGD15.33 miilion) to refurbish the property in the near future.
US-based mountain resort company, Vail Resorts, Inc. ("Vail Resorts") has recently announced that it has entered into an agreement with the subsidiary of UK-based Merlin Entertainments ("Merlin") to purchase the ski fields at Fall Creek Alpine Resort and Hotham Alpine Resort in Victoria, Australia, for approximately AUD174 million. The acquisition comprises the ski school, retail and rental operations, as well as reservation and property management operations at both resorts. Known as Victoria's largest alphine resort, Falls Creek features 450 hectares of terrain while Hotham is the only resort in the Southern Hemisphere with 320 hectares of ski terrain. Following the acquisition, Vail Resorts expects both resorts to generate incremental resort reported earnings before interest, tax, depreciation and amortization ("EBITDA") of approximately AUD18 million during its first year of operation, assuming normal conditions. The deal, which is subject to certain regulatory approvals, is anticipated to be completed before June 2019 and will expand Vail Resorts' ski field portfolio to 19 across three countries.
Singapore-based co-living company Hmlet ("Hmlet"), has announced its expansion in Sydney, Australia, with the launch of two co-living properties in the inner-city suburbs of Newtown and Marrickville. Hmlet at Newton will be one of the first purpose-built co-living properties in Australia that will accommodate 20 members. The property will feature a co-working space, communal living and kitchen spaces, and a rooftop terrace. Hmlet at Marrickville will accommodate 70 members and feature 2,400 square metres of Net Leasable Area across six levels, a garden terrace and an outdoor kitchen. Hmlet also plans to expand to Melbourne and Brisbane. Hmlet has raised up to USD8 million to date including a seed funding of USD1.5 million by VC Fund Aurum Investments and USD6.5 million Series A funding led by Sequoia India. Hmlet is currently present in more than 15 locations in Singapore and Hong Kong, and aims to quadruple its number of members to over 2,400 across Asia-Pacific by the end of 2019.
China-based BTG Hotels Group Co., Ltd. ("BTG") recently announced that its wholly-owned subsidiary Homeinns Hotel Group ("Homeinns") and affiliates of Hyatt Hotels Corporation ("Hyatt")
have formed a joint venture to create and launch a new hotel brand. The brand is positioned to compete in the underserved upper-midscale hotel market and designed to serve the changing needs of young Chinese travellers, as well as growing expectations for a seamless, comfortable and convenient travel experience. Taking advantage of Hyatt's expertise in high-end hotels and Homeinns' strong presence in the Chinese market, the joint venture is expected to unveil hotels under the new brand in first-tier cities such as Shanghai, Beijing, Guangzhou, Shenzhen and other cities in China in the next five years.
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