HVS Asia Pacific Hospitality Newsletter - Week Ending 17 July 2020

Weave Co-Living Expands into Singapore with SGD500 Million Joint Venture

Hong Kong-based Weave Co-Living ("Weave"), is making its debut in Singapore with a planned investment of SGD500 million in a joint venture ("JV") with Singapore-based fund management firm, 32 Real Estate Private Limited ("32RE"). Weave will hold an 80% stake in the JV, while funds managed by 32RE will hold the remaining 20%. Together, both partners are committing total equity of SGD150 million. Sachin Doshi, founder and chairman of Weave, stated that the strategy is to acquire serviced apartments and hospitality assets in order to reposition, redesign and rebrand them into Weave properties. Weave has anticipated to purchase two assets in Singapore by the end of 2020 with an initial target to have 600 to 800 accommodation units. 32RE will be the acquisitions and project manager for the JV in Singapore. Weave currently owns and operates a portfolio of six properties with more 600 rental units in Hong Kong, valued at approximately USD300 million. In November 2018, Weave secured USD181 million investment from US-based private equity firm, Warburg Pincus LLC. After Singapore, Weave intends to enter Australia, Korea, India and other key markets in the region in the coming year.

Singapore and Malaysia Aim to Commence Cross-Border Travel From 10 August

Singapore and Malaysia have agreed to set 10 August 2020 as the target date to reopen borders between the two countries for some residents and business travellers. On 14 July, both countries have agreed to implement two schemes - the Reciprocal Green Lane ("RGL") and Periodic Commuting Arrangement ("PCA"). The RGL will allow travel for essential business and official purposes. Those eligible will have to abide by measures, including taking swab tests and submitting their itineraries. The PCA will allow residents who hold long-term immigration passes for business and work purposes in the other country. After at least three consecutive months in their country of work, they can return to their home country for a "short-term home leave" before returning to their country of work to continue work for at least another three consecutive months. The requirements, health protocols and application process involved for entry and exit into both countries will be published 10 days before the implementation of the two schemes.

Japan Plans to Ease Travel Restrictions for Ten Asian Countries

As of 1 July 2020, there are 129 countries and regions affected by Japan's entry ban as a precautionary measure against Covid-19 pandemic. In June, Japan first unveiled plans for a travel bubble with four countries including Australia, New Zealand, Thailand and Vietnam. This month, Japan plans to discuss with ten more countries including Brunei, Cambodia, China, Laos, Malaysia, Mongolia, Myanmar, Singapore, South Korea and Taiwan. Japan states that business travellers and international talent will be the top priority, followed by foreign students and then tourists. Malaysia Airlines ("MAS"), and Japan Airlines ("JAL") will formally launch a joint business partnership on 25 July after a few months of delay due to travel restrictions between both countries. The partnership will see the two carriers cooperate commercially on flights between Malaysia and Japan. MAS and JAL will offer four weekly services between Kuala Lumpur and Tokyo Narita in July and August.