HVS Asia Pacific Hospitality Newsletter - Week Ending 06 January 2023

Wang On Properties and Angelo Gordon has Acquired Pentahotel Hong Kong, Kowloon for HKD2 Billion

Hong Kong-based Wang On Properties Limited (“WOP”) has partnered with US-based Angelo, Gordon & Co, L.P. (“AG”) to acquire Pentahotel Hong Kong, Kowloon from Hong Kong-based New World Development Company Limited for HKD2 billion. Situated in San Po Kong, Kowloon, the 695-key property has a total gross floor area of approximately 285,000 square feet, and a site area of 23,800 square feet. The property features one food and beverage outlet, five meeting rooms, a swimming pool, a fitness centre, and parking spaces. This acquisition is WOP’s first major investment in the hospitality sector, and WOP has planned to renovate and rebrand the property.

 Berjaya to Acquire Freehold Lands in Yokohama, Japan to Develop a Mixed-use Development

Berjaya Yokohama Hospitality Asset TMK, a subsidiary of Malaysia-based Berjaya Corporation Berhad (“Berjaya”) has entered into a land sale and purchase reservation agreement with the City of Yokohama for the proposed acquisition of six parcels of freehold land in Minato Mirai, Yokohama, Japan for JPY12.657 billion. The land measure in aggregate about 20,977 square metres, and the land is the last undeveloped waterfront area in Yokohama City. It is situated in the vicinity of key city landmarks of Yokohama such as the Yokohama Landmark Tower and the Yokohama Museum of Art. Berjaya plans to develop a Four Seasons Yokohama Harbour Edge project on the land comprising a luxury hotel and upscale residences, an aquarium, and retail outlets. The gross development cost of the entire project is estimated to be JPY101.54 billion (including the land acquisition cost).

 Chip Eng Seng to Sell The Sebel Mandurah for AUD18 million

Singapore-based Chip Eng Seng Corporation Ltd (“CES”) has sold its Perth hotel asset, The Sebel Mandurah (“TSM”) for AUD18 million, estimated to be AUD214,286 per key, to Australia-based Acure Funds Management Ltd (“AFML”). CES acquired the property in 2017 for AUD15 million, which translates to a gain of 20% post-sale for CES. The 84-key property which sits on a freehold site with an approximate land area of 6,712 square metres includes meeting facilities, a swimming pool, a fitness center, and a barbeque area. Situated at 1 Marco Polo Drive, which takes less than an hour’s drive from Perth Airport, the property has a view overlooking the city’s Mandjar Bay. TSM will change its management company from Accor Hotels to MF Hospitality Management Ltd after the transaction. The disposal of the asset will allow CES to recycle capital arising from the net sale proceeds and to pursue higher-yielding and/or capital appreciation assets in the future.

 ARA US Hospitality Trust to Acquire Home2 Suites by Hilton Colorado Spring

Singapore-based ARA US Hospitality Trust (“ARAUHT”) announced on 4 January 2023 that ARA H2CS, a wholly owned subsidiary of ARAUHT has entered a conditional purchase and sale agreement to acquire Home2 Suites by Hilton Colorado Springs South hotel from US-based CH Tenderfoot Hill LLC (“CHTH”) for SGD38.9 million. The 119-key property was a recently built hotel designed for long-stay travellers. The property is situated in the south of Colorado Springs, where the centre of the Rocky Mountain recreation activities is. Surrounding the property also includes the Fort Carson military base and the Broadmoor Convention and Resort with over 18,500 square metres of meeting space. The property is currently managed by US-based Chartwell Hospitality, a fully integrated platform that specialises in the acquisition, development, and management of branded, limited, and full-service hotels. The management company manages a wide portfolio of 27 hotels across the United States.