UOL Group to Purchase 154-key Hotel in Jakarta for SGD67.5 Million

Singapore-based UOL Group Limited ("UOL") has entered into an agreement to acquire the 154-key hotel in Jakarta, Indonesia, from PT Success Venture Hotel Investments for SGD67.5 million (USD50 million). Currently, the hotel is under construction and will be managed by Singapore-based Pan Pacific Hotels Group in 2022. The hotel has an estimated total semi-gross floor area of 135,377 square feet, and an extendable 30-year lease. It is located on levels 51 to 57 of Tower 2 of Thamrin Nine, a 5.2-hectare integrated development which comprises hotels, offices, retail and other facilities. The development has a direct underground link to Dukuh Atas MRT station, one of the 13 stations on Jakarta's first MRT line, the North South Line. In July 2018, UOL had acquired the upcoming 180-suite PARKROYAL Serviced Suites Jakarta, located on levels 41 to 50 of Tower 2, and entered a hotel management agreement to operate the 185-key PARKROYAL Jakarta, located on levels 5 to 9 of Tower 2. UOL's latest acquisition expands its portfolio to four hotels and serviced suites with a total of approximately 700 rooms in Jakarta.

InterContinental Sydney Received Approval for AUD203 Million Redevelopment

The 509-key InterContinental Sydney has been granted approval for a proposed AUD203 million facelift by the NSW Government Independent Planning Commission, after the body has evaluated the heritage and visual design impact, along with amenity issues related to the redevelopment. According to the owner of the property, Mulpha Australia Limited, a wholly-owned subsidiary of Malaysia-based real estate conglomerate, Mulpha International Bhd, the hotel revamp will involve the roof above the adjacent NSW Heritage-listed Transport House. The roof of the Transport House is proposed to be developed as an outward addition to InterContinental Sydney, within which new hotel rooms will be developed. Level ten to twelve will be converted into a new Grand Ballroom, directly above a new wellness centre on level nine. This will result in a decrease in the property's overall hotel room count from 509 to 492. In addition, alterations will also be made to the roof of the hotel tower, which sits directly above the hotel's club lounge on level 32. Further alterations and upgrades will also be carried out on the heritage-listed areas in the lobby.

Cambodian Government Extended Naga Corp's Gaming Monopoly

The Cambodian Government has reached an agreement to extend the monopoly of casino gaming for Hong Kong-listed casino operator, NagaCorp Limited ("NagaCorp") for another ten years. NagaCorp will now hold the monopoly casino gaming license within a 200 kilometres radius of Phnom Penh up until December 2045. The agreement includes the lumpsum payment of USD10 million upon signing of the new agreement plus an additional USD3 million annually for ten years starting from 1 January 2036. Currently, the company operates the NagaWorld casino complex in Phnom Penh including Naga 1 and Naga 2, which opened in 2006 and 2017, respectively. NagaCorp has plans to expand Naga 3 by 2025 which will feature approximately 5,000 hotel rooms, 1,300 gaming tables, and 4,500 electronic gaming machines.

Five Korean Cities to Receive Approximately KRW16 Billion for Tourism Development in 2020

The Ministry of Culture, Sports and Tourism of South Korea has announced plans to develop five cities across the country into tourism hubs over the next five years. A total of approximately KRW16 billion (USD13.5 million)
will be funded to achieve its goal of promoting destinations outside of Seoul, which currently attracts majority of the international tourists. The five cities are namely, Busan, Gangneung in Gangwon Province, Jeonju in North Jeolla Province, Mokpo in South Jeolla Province and Andong in North Gyeongsang Province. Busan has been picked as a global tourism city due to its existing infrastructure and will receive approximately KRW4.3 billion this year while the other cities will receive approximately KRW8.6 billion in total. Another KRW3 billion from state coffers will be set aside for consulting and promotional activities. According to Culture Minister Park Yang-woo, the tourism initiative is to aid the government in achieving the goal of attracting more than 20 million tourists who are expected to spend more than KRW120 trillion in 2020.

Myanmar Extends Visa Regulations to Five New Countries

As of 1 January 2020, the Myanmar government has extended visa on arrival access to five new countries, namely Austria, Hungary, New Zealand, Czech Republic, and Luxembourg. The program will run for a three-year trial period and is part of the government's Tourism Master Plan, which aims to maximize the tourism industry's contribution to the national economy. In October 2019, Myanmar has extended visa-on-arrival ("VoA") access to nationals of Australia, Germany, Italy, Russia, Spain, and Switzerland, for a one-year trial period. Despite the recent visa extensions, Myanmar is still prioritizing Chinese tourists as it strengthens its diplomatic ties with China. Chinese nationals have been granted VoA access since 2018 and visitor numbers increased by 33% to more than 500,000 in 2019. Furthermore, there are more than 150 direct flights between the two countries every week, signifying Myanmar's growing ties with China.

About HVS

HVS is the world's leading consulting and valuation services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. Established in 1980, the company performs more than 4,500 assignments per year for virtually every major industry participant. HVS principals are regarded as the leading professionals in their respective regions of the globe. Through a worldwide network of over 50 offices staffed by 300 experienced industry professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. For further information regarding our expertise and specifics about our services, please visit www.hvs.com.