HVS Asia Pacific Hospitality Newsletter - Week Ending 24 March 2023

CDL to Acquire Sofitel Brisbane Central Hotel for AUD178 Million

Singapore-based City Developments Limited (“CDL”) has agreed to acquire Sofitel Brisbane Central Hotel (“SBCH”) for AUD178 million from Canada-based Brookfield Corporation (“BC”). The 416-key property was built in 1984 and has been under the control of BC since 2012. Located along Turbot Street, SBCH features six food and beverage outlets, seven meeting facilities, a fitness centre, a spa and an outdoor pool. CDL executive chairman, Mr Kwek Leng Beng, mentioned that this acquisition marks the group’s entry into Brisbane Hospitality sector and it being one of the key hospitality markets in Australia. This marks the largest single asset hotel transaction in Brisbane.

KKR is Set to Acquire Hyatt Regency Tokyo

USA-based private equity firm Kohlberg Kravis Roberts & Co. L.P. (“KKR”) is set to acquire the Hyatt Regency Tokyo from Japan-based Odakyu Electric Railway Co., Ltd (“OER”) for an undisclosed sum. The railway operator is expected to record a gain of about JPY50 billion post sale. The 746-key Hyatt Regency Tokyo is located in the thriving business, shopping and entertainment district of Shinjuku and is a nine-minute walk from Shinjuku Station. The subject site consists of six food and beverage offerings, a fitness centre, a spa, club lounge and 18 meeting rooms.

Japan Hotel REIT Investment Corporation to Acquire Sotetsu Fresa Inn Shimbashi-Karasumoriguchi

Japan-based Japan Hotel REIT Investment Corporation (“JHR”) is set to acquire the 220-key Sotetsu Fresa Inn Shimbashi-Karasumoriguchi (“SFISK”) in Tokyo via their asset management arm Japan Hotel REIT Advisors Co., Ltd. The acquisition price has yet to been confirmed, but the anticipated acquisition price will be JPY8.4 billion. The SFISK is only a four-minute walk from Shimbashi station and is in the heart of Tokyo’s commercial district. JHR believes with the planned Urban Redevelopment Project of Shimbashi Station West Exit District directly adjacent to the property, will undoubtedly increase the overall attractiveness of its surroundings and further drive tourism. The SFISK which sits on a 5,476 square metres site consists of a convenience store, a café which serves breakfast, vending machines, and launderette.

Central Pattana Plc Announces Four More Mega Mixed-use Projects in the Pipeline

Thailand-based retail property developer Central Pattana Plc (“CPN”) plans to develop four more mega mixed-used projects over the next five to ten years, through joint ventures and own investments. Each mixed-used project is set to be developed on at least 40,000 square metres plots of land, with each project having a total gross floor area of more than 350,000 square metres with a budget of more than THB20 billion. CPN began developing its first mega mixed-use project over the past seven years with the Dusit Central Park project (“DCP”), through a joint venture with Thailand-based Dusit International hospitality group which is slated to open between 2024 and 2025. The DCP project will consist of a 259-key Dusit Thani Bangkok and the serviced apartment Dusit Residences. CPN has also announced it would spend THB4.5 billion to develop Central Krabi, a project with a concept of “New Gateway to Southern Paradise”, which will consist of a mall, residential offerings and a hotel with an unannounced brand.