HVS Asia Pacific Hospitality Newsletter - Week Ending 28 October 2022

Thailand-based Boutique Corporation Public Company Limited (“Boutique Corporation”) has agreed to dispose of investment in Oakwood Studios Sukhumvit, Bangkok to Singapore-based Legend Land Bangkok Pte. Ltd for approximately THB575,000,000 worth of shares. The 177-Key Oakwood Studios is centrally located in Bangkok’s Klongton sub-district, within a 15-minute drive to Terminal 21 shopping mall and Soi Cowboy. Each of the 177 rooms comes with fully equipped kitchens to cater to any length of stay. Additionally, Oakwood Studios Sukhumvit consists of an All-Day-Dining Restaurant, an outdoor Pool with a bar, co-working spaces, and a fitness center.

Atlan to Acquire Hotel in the UK for MYR57.5 Million

Malaysia-based Atlan Holdings Bnd (“AHB”) is acquiring The Cornwall Hotel Spa & Estate (“TCHSE”) for MYR57.5 million and the asset management company, Belle Isle Hotels (Cornwall) Management Ltd (“BIHM”) for MYR1.33 million. Located in St Austell, the 65-key property has been managed by BIHM since 2014. AHB will take over all BIHM existing assets and liabilities to minimise disruption of hotel operations. The purchase of both the property and the management firm will be funded through internally generated funds, and/or borrowings. AHB believes that diversifying into the UK and generating revenue from the foreign-based assets will benefit the group over the long run.

Australia-based La Vie Hotels and Resorts Enters into Strategic Partnership with Small Luxury Hotels of the World

Australia-based La Vie Hotels and Resorts (“La Vie”) has signed a strategic brand and distribution partnership with Small Luxury Hotels of the World (“SLH”). The strategic partnership will see several of La Vie’s Upper-Upscale and Independent Hotels join the exclusive collection. The first of which, The Islington Hobart (“IHT”), one of Tasmania’s first boutique luxury hotels. The 11-key IHT will benefit from SLH’s global distribution network of high-end luxury holiday seekers who are looking for bespoke and highly curated travel experiences. In addition to the latter, a soon-to-be announced hotel in the city of Surry Hills, New South Wales is also set to join the network later this year. Shellia Chang, Group Director of Sales & Distribution for La Vie believes “this strategic partnership with SLH enhances the distribution landscape in driving commercial performance across our expanding global portfolio of boutique hotels”. More of La Vie’s portfolio is said to join the SLH network over the coming months.

Hong Kong 2022 Policy Address Laid Down Plans and Fundings to Increase the City’s Competitiveness

Hong Kong’s Chief Executive Mr John Lee has announced a series of key plans to boost economic growth and development of Hong Kong. Six major infrastructure projects including three railway projects: Hong Kong -Shenzhen Western Rail Link, Central Rail Link, and Tseung Kwan O Line Southern Extension will be implemented. HKD600 million will be set aside by the government for a three-year Cultural and Heritage Sites Local Tour Incentive Scheme, and new round of ‘Spend-to-Redeem’ program that will subsidise local tours and staycation package will be also re-organised. New work visa will be also set-up for high-earning individuals and HKD30 billion would go into a ‘Co-Investment Fund’ to attract enterprises to set-up operations in Hong Kong.