HVS Asia Pacific Hospitality Newsletter - Week Ending 29 November 2019
Singapore-based City Developments Limited Hospitality Trust ("CDLHT") has announced plans to acquire the 240-Key W Singapore for SGD324 million, reflecting approximately SGD1.35 million per key. The acquisition will be funded via debt financing and internal resources. W Singapore features facilities including outdoor pools, a spa, ten versatile meeting rooms spanning more than 1,400 square metres, three dining outlets and a poolside bar. The luxury lifestyle hotel has a gross floor area of 25,374 square metres, and a 99-year lease that began on 31st October 2006. The acquisition is expected to complete in early 2020. After completion of the latest proposed deals, CDLHT will have seven hotels comprising more than 3,000 rooms in Singapore.
Turkish Airlines has announced that it will launch a new direct route from Istanbul, the largest and most developed city in Turkey, to Xi'an, a well-known tourist city of Shaanxi Province in Northwest China. Initially, Turkish Airlines will offer a thrice-weekly service, which will start at the end of 2019. The frequency of flights will gradually increase as the 2020 summer schedule begins. Currently, Turkish Airlines operates daily flights between Istanbul and Beijing, Shanghai and Guangzhou, and Xi'an will be its fourth destination in mainland China. With the launch of direct flights to Xi'an, it is expected that the tourism, trade, cultural and economic connections will be further promoted between the two countries.
USA-based affiliate of private equity company, KSL Capital Partners ("KSL") has reached an agreement to take up a significant minority stake in Thailand-based resort developer and operator, Soneva. The agreement includes the redeemed investment of Hong Kong-based Sailing Capital which invested in Soneva in 2014. Sailing's investment eased the expansion of Soneva's portfolio in the Maldives and opened the award-winning 25-villas Soneva Jani Resort in 2016 which made Soneva a leader in overwater villa market with its beautiful design and architecture. Currently, Soneva is focusing on luxury resorts in in the Maldives and Thailand. With the support of KSL, Soneva has planned to open two new resorts in the Maldives over the next three years.
India-based Bird Group plans to launch new hotels under its luxury brand, Roseate Hotels & Resorts, in both domestic markets including Goa and Jaipur, as well as international destinations such as the UK and Dubai. Roseate Hotels started operations three years ago and currently owns and operates six properties, three each in India and the UK. The company is now planning to expand its presence by entering into management contracts for new locations. It also plans to launch standalone outlets of its inhouse food brands, Roasted and Mithai By Roseate overseas. The company is also contemplating retailing products of its in-house spa and wellness brand, Aheli Spa Wellness.
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