HVS Asia Pacific Hospitality Newsletter - Week Ending 30 November 2018
Singapore-based owner-operator, Worldwide Hotels (Worldwide Hotels), has acquired a freehold commercial property in Singapore, Golden Wall Centre, through its wholly owned subsidiary, City View Holdings (City View), for SGD276.2 million. The property is conveniently located within walking distance to two MRT stations and enjoys good visibility as a corner plot with 180-metre triple frontage along the main thoroughfare of Rochor Canal Road, as well as Short Street and Albert Street. Sold at 6% higher than its reserve price of SGD260 million, the property sits on a land area of 2,251.9 square metres, commanding SGD2,331 per square foot per plot ratio. Currently zoned for commercial use within a mixed-use cluster under the Master Plan 2014, an application to convert it to hotel use at the existing approved gross floor area of 11,008 square metres with a plot ratio of 4.88 has been approved by the Urban Redevelopment Authority. Worldwide Hotels currently owns and manages six hotel brands including Hotel Boss, V Hotel, Hotel Mi, Value Hotel, Venue Hotel and Hotel 81.
New Zealand-based Ngmotu Hotel Limited Partnership (Ngmotu Hotels) has acquired the Novotel New Plymouth Hobson Hotel for NZD23 million from New Zealand-based hotel owner and operator Hobson Hotel Property Holdings Limited (Hobson Hotel), that will continue in a management capacity. This is Ngmotu Hotels first investment since its creation by a trio of Taranaki iwi businesses. The new joint venture entity is composed by Parininihi ki Waittara Inc (PKW), Te Atiawa Iwi Holdings (TAIH), and Taranaki Iwi Holding (TIH). The 85-room property, part of France-based AccorHotels Group (Accor) franchise, cost NZD25 million to build. Opened in 2015, it is one of the newest hotel in New Plymouth. The hotel sector in Taranaki and New Plymouth is promising, with 1.1 million visitors and 14 percent increase in visitor spend in 2018. By 2025, The Taranali region is expected to achieve a 7.5 percent increase of annual visitor growth.
Japans second largest metropolitan city, Osaka, was selected to host the 2025 World Expo on 23 November 2018, edging out Russias Yekaterinburg and the Azerbaijan capital of Baku. Japan last hosted the 2005 expo in Aichi Prefecture and the 1970 World Expo in Osaka. Under the theme of Designing Future Society for Our Lives, the 185-day event will be held on Yumeshima, a man-made island in Osaka Bay, from 3 May to 3 November. The concept will showcase advanced technologies, particularly in the fields of artificial intelligence, virtual reality and biotechnology, designed to help meet 2030 United Nations sustainable development goals in health and welfare, especially in aging societies. Infrastructure projects cost at Yumeshima have been estimated at approximately JPY125 billion. The Japanese government anticipates the event to generate JPY2 trillion (USD17.7 billion) in economic benefits and attract about 28 million visitors. Another round of stimulus will follow in the upcoming 2020 Tokyo Olympics and Paralympics.
In a multi-year deal signed between Vietnam-based real estate development company, Vingroup (Vingroup) and Formula 1 (F1), Hanoi, the capital city of Vietnam will be the next new street race venue for the F1 Grand Prix from April 2020. This will be the first new grand prix announced under the ownership of United States-based mass media company, Liberty Media (Liberty). Located 12 kilometres west of Hanoi near the My Dinh National Stadium, the new street circuit will be a 5.6 kilometre track with 22 turns. Vietnam Grand Prix will become the fourth race in Asia, joining China, Japan, and Singapore. The event will require close collaboration with The Hanoi Feasibility Group, F1 Motorsport team, and the City of Hanoi in the following years. This deal is viewed as an opportunity for Vietnam to showcase Hanoi as a tourist destination, as well as its ability to host events on a global scale.
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