Read the latest news from around the Asia-Pacific region.
CEOs of Minor, Ovolo Hotels Say Dealmaking Requires Leap of Faith, Speed To Close
At the Hotel Investment Conference Asia-Pacific Australia New Zealand, Minor Hotels CEO Dillip Rajakarier said his strategy for closing deals is to do it as quickly as possible, reports HNN contributor Tamara Thiessen.
“I don’t like to chase deals, I like to close deals, which is really important because you can chase hundreds of [them], but then it’s the ability to close … and it’s also the ability to be really fast and think differently in terms of closing [them],” he said.
Indian Hotel Firm Juniper Files $220 Million Initial Public Offering
Indian hotel company Juniper Hotels filed its initial public offering, valuing the company at 18 billion Indian rupees ($216.1 million), reports HNN's Terence Baker, citing India's Economic Times.
The Verve Times reports: “the proceeds from the fresh issue … will be used for repayment, prepayment or redemption, in full or in part, of certain outstanding borrowings availed by the company and its subsidiaries and for general corporate purposes.”
Rosewood Hotel Group Commits to Branded Residences for the Long Term
The decision to develop residential projects alongside Rosewood Hotel Group's hotel projects was a natural progression, said Brad Berry, vice president of global residential development for the Hong Kong-based company, reports HNN's Dana Miller. The company has 14 Rosewood Residences in operation now with another 11 in the pipeline.
"I've been involved in this business for many years, both on the developer side and the brand side in a variety of capacities and ... it's real estate at the end of the day, and that's a business that's going to go forever. This little nugget of that [real estate] business is really pretty special from a hospitality and hotel standpoint," Berry said.
Luxury and Midscale Brands Play Major Role in Marriott's Development Strategy
During Marriott International's 2023 Security Analyst Meeting, brand executives laid out the company's development strategy for its midscale and luxury offerings, reports HNN's Bryan Wroten.
The company's acquisition of the City Express brand portfolio created an opening for midscale growth in the Caribbean and Latin America. Its newly launched Four Points Express by Sheraton is its midscale entry vehicle for Europe, the Middle East and Africa.
Marriott doesn't have a midscale brand aimed at Greater China and the rest of the Asia-Pacific region, but the growth potential in those markets means the company will soon increase development there.
Debt, Development Costs and Operating Risks Weigh Heavily on Hotel Owners in Australia
Hotel owners and operators in Australia are feeling the stress of higher costs and interest rates, said investment specialists as the Hotel Investment Conference Asia-Pacific Australia New Zealand, writes HNN contributor Tamara Thiessen.
Even after the long recovery from the pandemic, owners are still dealing with multiple challenges, said Karen Wales, head of hotels in Australia and transaction services at Colliers.
“Alongside that, there’s stress in development deals and the level of counterparty risk that’s coming into some development deals, particularly when you don’t have a pre-commit on the takeout. So, we've got operational risk, counterparty risk, development risk, financial risk, construction risk. It depends on who you’re working with, so those can all be abated, but I think there is an elevated sense of risk,” she said.
Maldives-Based Resort Company Atmosphere Core To Expand Into India and Subcontinent
Atmosphere Core, a Maldives-based resort company, is moving forward with plans to develop and operate more of its hotels in the Indian archipelago, reports HNN's Terence Baker.
It requires a unique set of skills to essentially start from scratch as many of the locations have no prior development, said Shrikant Dash, deputy manager and director of corporate at Atmosphere Core.
“Everything is imported. Everything. And developers must understand logistics, which you cannot underestimate,” Dash said. “One figures this out when you are physically on the island you are developing. On a virgin island, there are no people. You literally jump in the water to start the work. There is no jetty, no drinking water, no employee accommodation or food.”
Deals, Developments, People on the Move
- Japan Hotel REIT Investment Corp. acquired the La'gent Stay Sapporo Odori, Oriental Hotel Kyoto Rokujo and Hotel Oriental Express Fukuoka Nakasukawabata properties for 18.9 billion Japanese yen ($127.4 million).
- Multiple billionaires in Asia will invest more than 6 billion Singapore dollars ($4.4 billion) to build new hotels in the country in response to rebounding levels of travel.
- Nippon Accommodation Fund will acquire three hotels with 331 rooms combined for 3.1 billion Japanese yen: the Smile Hotel Nishi-Akashi, the Smile Hotel Okinawa Naha; and the Smile Hotel Matsuyama.
- Malaysian developer I-Berhad partnered with Wyndham Hotels & Resorts to develop a 820-million Malaysian ringgit ($173.3 million) luxury condominium project, Wyndham Suites KLCC in Kuala Lumpur City Centre.
- Marriott International signed a hotel management agreement with Indonesia-based developer PT. Pakuwon Jati to open three properties in Ibu Kota Negara Nusantara under the Four Points by Sheraton, Westin Hotels & Resorts and Tribute Portfolio brands.