Industry Update
Press Release18 May 2020

HVS Asia Pacific Hospitality Newsletter - Week Ending 15 May 2020

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Sorrento's Continental Hotel Sold to Trenerry Property for AUD14.5 Million

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The redevelopment of the 145-year-old Continental Hotel in Sorrento, Victoria, will be taken over by Australia-based Trenerry Consortium Landco Private Limited ("Trenerry Property") after securing the site for approximately AUD14.5 million from Australia-based hotelier, Julian Gerner's Continental Development Private Limited, who bought the property for a reported AUD15 million in 2015. According to Leader Newspapers, Gerner had also secured a neighbouring piece of land as well as heritage and planning approvals for an AUD22 million redevelopment. However, the redevelopment was not completed due to a lack of funding. Occupying a land size of approximately 4,482 square-metres across two certificates of title, The Continental Hotel is a heritage hotel located in the premier coastal location of Sorrento. The site carries the potential for residential apartments to the rear, as well as extended footpath trading. According to Trenerry Property's website, the company is also building the AUD300 million West End project in West Melbourne and has completed developments in Camberwell, Abbotsford and Hawthorn East.

Hanison Construction Holdings to Acquire Travelodge Hotel in Hong Kong

Hong Kong-based Hanison Construction Holdings ("Hanison") is in due diligence for the 143-key Travelodge Central Hollywood Road in Hong Kong after offering a reported HKD930 million (USD120 million) to its joint owners - Hong Kong-based private equity firm, Pamfleet, and Singapore listed hotel investment company, ICP Limited. The 23 storey, mid-scale hotel is located at the intersection of Hollywood Road and Possession Street in Central's Sheung Wan area, the most expensive district in Hong Kong. Spanning approximately 5,414 square metres, the hotel is on a 75-year lease term and was refurbished in 2017. Upon the completion of the deal, it will represent as Hanison's second acquisition in Central's Sheung Wan area within five months. In November 2019, Hanison acquired the 55-key Citadines Mercer at 29 Jervois Street from Singapore-based Capitaland Limited for HKD741 million (USD105 million).

Indonesia Government to Provide IDR25 Trillion Stimulus Package for Tourism Sector

The Indonesia government is set to provide a tourism stimulus package worth IDR25 trillion (USD1.68 billion) that includes hotel, airfare and food and beverage discounts to speed up the recovery of the tourism industry after the pandemic subsides. Febrio Kacaribu, Head of The Finance Ministry's Fiscal Policy Agency, mentioned that the package aims to boost the consumption among the local middle class in the third and fourth quarter of 2020, and the package would come into effect by the third quarter when COVID-19 restrictions are expected to be eased. The plan is regulated under Government Regulation (PP) No. 23/2020 on the national economic recovery program, in which the government will carry out efforts to support a recovery after the pandemic eases. Wishnutama Kusubandio, Tourism and Creative Economy Minister, has urged travel agents to utilise digital platforms to boost promotional efforts towards domestic audiences as international arrivals dipped. He had also emphasised the importance of hygiene and sanitation at tourist attractions, accommodation and modes of transportation.

Australia Government to Provide AUD1 Billion Tourism Stimulus Package

The Australia federal government has announced an AUD1 billion tourism stimulus package from the AUD17.6 billion emergency package for the economy, budgeted to be spent by 30 June 2021. According to Tourism Minister, Simon Birmingham, the package will be targeted at assisting the industries and regions most directly and heavily affected by coronavirus. Simon Birmingham nominated tourism businesses in North Queensland as those who will need assistance, citing the example of Great Barrier Reef tour operators who would have their marine park fees waived. During the Tourism Australia's annual conference, Tourism Australia managing director, Phillipa Harrison, has mentioned the importance of incentivising domestic travel to aid the recovery of the tourism industry in Australia, and urged Australians to travel within Australia for the year of 2020.

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