HVS Asia Pacific Hospitality Newsletter - Week Ending 16 December 2022

Mitsui & Co. Digital Asset Management Acquired The Royal Park Hotel Iconic Tokyo Shiodome

Japan-based Mitsui & Co. Digital Asset Management (“MDM”) and Japan-based Japan Hotel REIT Advisors Co., Ltd. have acquired The Royal Park Hotel Iconic Tokyo Shiodome at an undisclosed sum. Located next to the Shimbashi Station and Shiodome Station, the 490-key property is part of the mixed-use development Shiodome Tower with a gross floor area of 25,717.77 square metres. The property features four food and beverage outlets, five meeting rooms, a banquet hall, a laundromat, and a spa and fitness centre. This acquisition is part of MDM’s ambition to tokenise over JPY100 billion in assets and distribute them as digital securities.

Horan Group plans to develop a 233-key hotel in Surfers Paradise

Australia-based Horan Group has submitted plans to Gold Coast City Council to develop a 16-storey, 233-key hotel at 9-17 Cypress Avenue, Surfers Paradise. Situated near the Cypress Avenue light rail station, the 2,409 square metres site is in a predominantly hotel precinct which includes the 332-key Meriton Suites Surfers Paradise, 166-key BreakFree Imperial Surf Surfers Paradise, and 76-key Mantra Crown Towers Surfers Paradise. The proposed hotel will feature a recreational 20m pool, a fitness centre, a rooftop bar, four separate function spaces on level 4 and level 15, retail spaces on the ground, and 98 car parking spaces.

Asset World Corporation and Accor Group has Signed Strategic Multiple-Property Framework Agreement

France-based Accor Group (“AG”) and Thailand-based conglomerate Asset World Corporation (“AWC”) has signed its first multiple-property framework agreement on 9 December 2022. AG and AWC will strategically develop more than a thousand room keys across the country’s key tourism destinations. As part of the agreement, all developments will be branded with Accor’s various lifetstyle and luxury brands. AG currently operates 83 hotels under 11 brands within Thailand, AG currently has a pipeline of 20 hotels in Thailand.

Japanese developer Daiwa House Industry to sell Resort Unit to Godo Kaisha Ebisu Resorts for JPY55.6 billion

Japan-based developer Daiwa House Industry has sold its subsidiary Daiwa Resort Co.,Ltd. (its hotel-business unit) to Godo Kaisha Ebisu Resorts for JPY55.6 billion, which sees approximately 112 million shares being transferred over. Daiwa Resort Co.,Ltd operated 24 hotels and resorts across Japan. Reasons for sale was due to the prolonged negative effects of the pandemic and ageing hotel buildings, which have led to sub-par hotel operating ratios and poor year-to-date performances compared to pre-pandemic levels. In conclusion, the sale of its hotel-business unit is in alignment with Daiwa House Industry’s sustainable growth model of achieving both profit growth and improved capital efficiency.