Read the latest news from around the Asia-Pacific region.
Former Anbang Properties Loan Hints Sale Could Be Possible for $2.8 Billion Hotel Portfolio
A filing with the U.S. Securities and Exchange commission by accounting firm EY shows Goldman Sachs and Bank of America agreed to finance a portfolio of nine U.S. luxury hotels formerly owned by Anbang Insurance Group, reports CoStar News’ Mark Heschmeyer. Anbang acquired this portfolio from Strategic Hotels & Resorts in 2015, but the Chinese government took control of Anbang three years ago.
It’s possible the Chinese government has a buyer for the properties based on procedures listed in the filing. However, there’s no guarantee a sale will take place.
The filing shows the appraised value of the portfolio as of Aug. 1 was $2.82 billion. The only property mentioned in the initial filing was the 261-room Ritz-Carlton Half Moon Bay, but an amended filing also named the Fairmont Scottsdale Princess and the Fairmont Chicago.
Oyo Announces IPO
India-based hotel brand Oyo has filed an initial public offering, seeking 84.3 billion rupees in investment, roughly $1.14 billion. The company is also considering 14 billion rupees in pre-IPO placement.
"The Gurugram-headquartered firm said it would use proceeds from the IPO to pay off existing obligations and fund growth, which could include mergers and acquisitions," CNBC reports.
Wary of Fast-Changing Restrictions Overseas, US Travelers Avoid Long Distance Destinations
U.S. travelers took 18.4 million trips outside of the country during the first six months of the year, down from the 48 million taken during the same time period in 2019, writes Jan Freitag, national director of hospitality market analytics at CoStar. Instead of long-distance trips, many American travelers chose to stay closer to home because of increasing COVID-19 infection rates, the delta variant and varying travel restrictions.
Among the different global regions, Oceania, which includes Australia, New Zealand, Micronesia and Polynesia, reported a 97% decline of in-bound U.S. travelers. Asia reported a 93% drop, falling from about 3.3 million U.S. travelers in 2019 to 214,000 this year.
Deals, developments, people on the move
- MGM Resorts International and Japan’s ORIX Corporation have launched a joint venture to develop a multi-billion-dollar integrated resort on Yumeshima Island in Japan.
- Singapore-based Coliwoo Holdings and Four Star announced a joint venture to acquire the Balestier Hotel for 15 million Singapore dollars ($11 million).
- Malaysia’s Bayview International Hotels & Resorts sold its Melbourne hotel, the 203-room Bayview on the Park, to Australia’s Aware Super and Altis Property Partners.
- Malaysia-based Sunway Group has launched a 160 million Malaysian ringgit ($38.4 million) mixed-use development that includes residences, retail, education, medical care and a 284-room hotel in Sunway City Iskandar Puteri.
- Australia’s Elanor Investors Group established a new 346 million Australian dollar ($254.7 million) hotel fund, the Elanor Hotel Accommodation Fund, consisting of 14 hotels across five states and territories in Australia.
- Singapore-based SC Capital Partners intends to raise 60 billion Japanese yen ($528.1 million) to acquire Japanese hotels.
- Shanghai-based Huazhu Group announced its CEO, Qi Ji, will step down while still serving as the chairman of the board of directors. He will be succeeded by Hui Jin, the company’s president. The chief digital officer, Xinxin Liu, will serve as president.