Asia Pacific Hospitality Newsletter - Week Ending 30 September 2022

ICD Property and Belingbak Bringing 58-Storey Mixed-use Development to Sydney City Centre

Australia-based Innovative Construction & Development Pty Ltd (“ICD Property”) and Australia-based real estate firm Belingbak have gained approval from the City of Sydney to build an AUD500 million mixed-use tower in Sydney's central business district. The 58-storey development will be built on a 1,300 square metres site running from 372 to 382 Pitt Street, featuring a 297-key hotel and 30 luxury apartments. It will be surrounded by the 17-storey commercial buildings The Chambers and 166-key Ibis Sydney World Square. In November 2021, a consortium led by ICD Property and Singapore-based First Sponsor Group Limited secured approval for the AUD762 million project on Pitt Street to build a 101-key hotel and 241-key apartments above the City Tatt’s building.

Coliwoo to Acquire Arab Street Property for SGD6.4 Million

Coliwoo, a business unit under Singapore-based LHN Limited (“LHN”) has made back-to-back acquisitions in Singapore with total investments within a week amounting to SGD36.4 million. The group recently acquired the 3,907 square feet property with a remaining lease of approximately 29 years at 48 Arab Street, famed for its Muslim Specialty shops and in proximity to Bugis MRT station, for a total of SGD6.4 million. Once operations have commenced, LHN Group hopes this will continue to expand their co-living portfolio within Singapore and continue to increase brand value for Coliwoo. Coliwoo’s existing portfolio of 925 keys is set to exceed 1,000 keys within the second half of 2022. LHN group’s latest acquisitions align with its goal to grow its co-living portfolio to deter the rising rental prices within Singapore.

Invincible Acquired Land Adjacent to Hotel Epinard Nasu for Further Development

Japan-based Invincible Investment Corporation (“Invincible”) has acquired the land adjoining Hotel Epinard Nasu (“HEN”) for JPY21 million from Japan-based Nasu Estate Co., Ltd. The acquired land spans over 17,625 square metres with a building coverage ratio of 60% and a floor area ratio of 200%. The land is intended to develop as an extension of HEN where hotel guests can enjoy additional activities to interact with the animals of Nasu Highland. The 314-key HEN was acquired by Invincible in 2016 for JPY20.981 billion. The property is located 30 minutes away from the Nasu Shiobara station and features six food and beverage outlets, 25 meeting rooms, an indoor pool, spa facilities, salons, hot spring facilities, and tennis courts. The property is currently managed by Japan-based Mystays Hotel Management Co., Ltd. 

Hyatt enters a Joint-Venture with Japanese Operator Kiraku to Develop Ryokans

US-based Hyatt Hotels Corporation (“Hyatt”) and Japan-based operator Kiraku, Inc. have agreed to a 50%-50% joint venture to develop Ryokan-style hotels (small hotels built around Hot springs) in Japan. The brand created under the Joint Venture, Atona, will predominantly target Japanese travelers and ardent international spa lovers. Atona will incorporate the best of both worlds, with high-end modern designs and Japanese Hospitality enhanced by local culture, art and experiences. Each room under the Atona brand will also have its private bath with Hot-springs water. Assets under the Atona brand name will consist of a mix of new builds and conversions. The Hyatt’s Vice President for Japan and Micronesia, Sam Sakamura, mentioned that the joint venture will build on the unique, personalized experience of traditional Japanese ryokans, which have been loved by locals for centuries and make them accessible to inbound travelers, many of whom have never experienced staying in a ryokan before.