HVS Asia Pacific Hospitality Newsletter - Week Ending 17 September 2021
Singapore-based real estate investment company, SC Capital Partners (“SCCP”), has announced that they are aiming to raise JPY60 billion (SGD743 million) for a new fund, which targets to acquire hard-hit Japanese hotels. SCCP and numerous other foreign asset managers, including the US-based alternative investment management company, Blackstone Group, aims to acquire Japanese hotels as owners put these assets up for sale to generate funds. Chairman and founder of SCCP, Suchad Chiaranussati, believes that the strong foreign visitor base would allow Japan to recover and foresees that the country’s recovery would be ahead of Asia Pacific. Prior to the pandemic, Japan observed 32 million visitors in 2019, which is double the number of five years prior. Visitor arrivals were expected to rise significantly with the 2020 Olympics, which led to a hotel construction boom. However, the coronavirus pandemic, along with the new supply of hotels, has impacted occupancy rates heavily. While hotel revenues observed a significant decline, the appraisal value of hotels did not decline as much, due to the projections of a quick tourism recovery.
Hong Kong Tourism Board (“HKTB”) has officially launched a new ‘West Kowloon’ neighbourhood promotion in the Hong Kong Neighbourhood campaign, following the success of the ‘Old Town Central’ and ‘Sham Shui Po – Every Bit Local’ program. The new program will allow visitors to discover the in-depth local communities of Yau Ma Tei and Jordan, including historical buildings, time-tested stores and traditional craftsmanship. The program also promotes the art and cultural tourism of West Kowloon by embodying two new world-class museums in the West Kowloon Cultural District (“WKCD”): M+, a contemporary visual culture museum set to open in November 2021; and the Hong Kong Palace Museum, a museum exhibiting artefacts of Beijing’s Palace Museum set to open in July 2022. Five thematic walking tours focusing on different aspects were devised and large-scale art installations were placed in the Art Park within the WKCD to give opportunities to visitors to enjoy the unique characteristics of the neighbourhood as well as international art exhibits. Special offers have been also arranged with local shops and restaurants for visitors participating in the program to encourage spending.
On 3 September 2021, Vietnam-based Sun Property, a member of real estate developer, Sun Group, has announced the launch of the Sun Tropical Village, a tropical-style urban area in the South of Phu Quoc, Vietnam. Located within the Bai Kem complex, this project spans a total area of 14-hectare and puts a heavy emphasis on wellness. Located against a backdrop that features natural green scenery, the complex comprises of 346 single, duplex and quadrangle villas subdivided into Tropical Wellness, Tropical Park and Tropical Valley. The surrounding green area is projected to span 19,000-square-metre, which provides a “microclimate” area that features a cooler temperature. In addition, the Sun Tropical Village is designed with four internal wellness parks and is adjacent to the Wellness Bai Kem Park, a 4.1-hectare primaeval forest. The Bai Kem Complex also features countless high-end utility services, such as restaurants, bars, playgrounds, 5,300-square-metre wellness centre and direct access to the Bai Kem Beach. According to a representative of Sun Property, the project is believed to be able to attract owners who wish to own a second home that features high-end wellness facilities.
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