Industry Update
Press Release 2 December 2019

HVS Asia Pacific Hospitality Newsletter - Week Ending 29 November 2019

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CapitaLand Limited, City Developments Limited, Ascott Residence Trust to Redevelop Liang Court Site in Singapore

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Singapore-based CapitaLand Limited ("CapitaLand"), City Developments Limited ("CDL") and Ascott Residence Trust ("ART") have formed a consortium to redevelop the Liang Court site into an integrated development with a total gross floor area (GFA) of 100,263 square metres, subject to authorities' approval. The current site comprises Liang Court mall, 403-key Novotel Singapore Clarke Quay ("NCQ") and 197-key Somerset Liang Court Singapore ("SLC"). The City Developments Limited Hospitality Trust ("CDLHT") has proposed to divest NCQ to the consortium for SGD375.9 million. Simultaneously, ART will sell part of its interest in SLC to CDL for SGD163.3 million. This equates to 15,170 square metres of the serviced residence site's GFA while it retains the remaining 13,034 square metres. The integrated development will comprise two residential towers offering approximately 700 apartments, a commercial component, a lifestyle boutique hotel under US-based Marriott International's Moxy brand with 460 to 475 keys, and a 192-key Somerset serviced residence with a hotel license. The tenure will be refreshed from 57 years to 99 years. CDLHT will own the new hotel under a forward purchase agreement with CDL for the lower of the fixed price of SGD475 million or 110.0% of the development costs. The proposed project will open in phases from 2024.

City Developments Limited Hospitality Trust Acquires W Singapore for SGD324 Million

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 to Launch Direct Flights to Xi'an City of China

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.

KSL Acquires Minority Stake in Thai Resort Operator, Soneva

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 Expand Presence in Domestic and Overseas Destinations

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.

About HVS

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