HVS Asia Pacific Hospitality Newsletter - Week Ending 21 February 2020
Korea-based Daewoo Engineering and Construction Company Limited ("Daewoo E&C") has signed an investment development agreement with Korea Development Bank ("KDB") and other Korean financial institutions, to jointly invest USD388 million in a property development project in Star Lake City in Hanoi, Vietnam. Daewoo E&C will create a fund with KDB and Korea-based KB Securities Company Limited. A special purpose company will also be established to carry the project in Vietnam. Developed by Daewoo E&C, the property development will feature two 35-storey buildings which would accommodate a hotel, serviced residences, business offices and retail facilities. Korea-based hotel chain, Hotel Shilla will be responsible for operations of the envisioned hotel. Construction is scheduled to start this year and slated for completion in 2024. Located in the northwest of Hanoi in West Lake, The Star Lake City is being developed on a 210-hectare site and the project is estimated to cost USD2.2 billion in total.
'Harry Potter' Theme Park Set to Open in Tokyo in 2023
Japan-based Seibu Holdings, Inc. ("Seibu Holdings"), part of a Japanese conglomerate, Seibu Group, plans to open a theme park in Tokyo, featuring the popular movie franchise Harry Potter as early as 2023. The company is currently in talks with US-based movie studio, Warner Bros. Entertainment Inc. ("Warner Bros."), and the Tokyo Metropolitan Government to finalise the plan. Warner Bros. is considering borrowing part of the approximately 200,000-square-metre site owned by Seibu Holdings to build a Harry Potter theme park, basing on the Harry Potter Warner Bros. Studios in London. Whereas, the Tokyo Metropolitan Government plans to purchase the remaining land to set up a big park designed to bolster the capital's disaster management capability. Toshimaen amusement park, one of Tokyo's oldest amusement parks that is run by Seibu Holdings is currently situated on the site. The company plans to cease the operation of the amusement park after more than nine decades of operations to make way for the new development.
Maya Bay to Reopen by the End of 2020 with New Infrastructures in Place
Thailand's Department for National Marine Parks ("DNP") has begun the execution of reopening the Maya Bay at Koh Phi Phi Leh in Phuket, and is expected to welcome tourists by November 2020. Maya Bay was closed to tourist visitors in June 2018 due to the concerns of mass tourism, which adversely impacted the environment. The plan comprises of two projects which have been commissioned and awarded to Thailand-based Suchardti Karnchang Company Limited. The Maya Bay Area Facility Development Project involves the construction of a new wooden pier at Maya Bay's back entrance for speedboats and long-tail boats to moor. The new pier is expected to dock a maximum of eight boats at a time, with the number of boats being able to stop each day to be limited. DNP has invested THB6.05 million (USD200,000) in this project which is slated to be completed before the end of 2020. The THB11.6 million (USD375,000) Landscape Improvement Project involves the construction of an elevated boardwalk, a designated walkway for tourists, allowing access to Loh Samah Bay and out onto a viewing platform at Ao Maya. Other features include smaller lookout terraces, new seating areas, bathroom facilities, and food and drink kiosks.
New York City and Auckland Signed Tourism Partnership
NYC & Company, New York City's official destination marketing organisation, and Auckland Tourism, Events & Economic Development have inked a city-to-city tourism agreement, which will enhance tourist flow between the five boroughs of New York City and the four corners of Auckland. Formalised on 17 February 2020, the two-year agreement will enable both companies to cross promote their respective destinations and boost arrivals through reciprocal marketing and promotion. The new tourism partnership between New York City and Auckland comes as New Zealand-based flag carrier, Air New Zealand, prepares to launch a new direct service between the two destinations, which will commence in October 2020.
US-based private equity firm, Blackstone Group, has received the approval of India's bankruptcy court to acquire debt-ridden Trident Hotel, a 324-room five-star hotel
property in Hyderabad's IT corridor, for approximately INR5.85 billion. The property was owned by India-based Golden Jubilee Hotels Limited and managed by India-based East India Hotels Limited ("EIH") of Oberoi Group. This represents Blackstone's first deal under India's Insolvency and Bankruptcy Code ("IBC"). As a part of the resolution plan, Blackstone will infuse INR3.84 billion up front to clear the dues of the workmen and creditors, while investing INR1.80 billion towards capital expenditure. The hotel was declared a non-performing asset in December 2015 after defaulting on loans to nine banks due to project delays.
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