Weekly Hotel Industry Asia Pacific News Roundup from HVS
BentallGreenOak to Acquire Landmark Hotel Rihga Royal Hotel Osaka
Canada-based fund manager BentallGreenOak (“BGO”) is set to acquire the 1,039-key Rihga Royal Hotel Osaka at an undisclosed price which is believed to be at least JPY50 billion. BGO has signed an agreement with Japan-based hospitality firm The Royal Hotel, Ltd. to purchase its flagship property in a deal that would also include UK-based hospitality operator IHG Hotels & Resorts. The property is located within the Kita Ward and occupies an 11-acre plot on an island in the Dojima River, just west of Osaka’s central business district and a 10-minute drive southwest of Osaka Station. The Rihga Royal Hotel comprises of 18 restaurants, 56 ballrooms, banquet halls and a large conference facility. The property which opened in 1935, will be rebranded as IHG’s high-end Vignette Collection and is slated to open by 2025. After acquiring the asset at the equivalent of JPY48 million per key, BGO plans to spend an additional JPY13.5 billion on renovations. Furthermore, BGO will also be acquiring a 33% stake in The Royal Hotel, Ltd., becoming its largest shareholder.
Japan Hotel REIT Investment Corporation Acquired UAN Kanazawa for JPY20.5 Billion
Japan Hotel REIT Advisors, Co., Ltd., the asset management company of Japan-based Japan Hotel REIT Investment Corporation has resolved to acquire UAN Kanazawa from Japan-based GK Esquilino Investment for JPY20.5 billion. Situated in Kanazawa City, the capital of Ishikawa Prefecture, the 47-key property was opened in 2017 and was managed by Japan-based Solare Hotels and Resorts Co., Ltd.. The property has a total floor space of 2,606.85 square metres, and features a food and beverage outlet, fitness centre, a guest lounge, a launderette, and a nursing room. The hotel receives a mix of fixed rent (JPY9 million a month) and variable rent.
Laoag International Airport Secures PHP900 Million for Expansion
Philippines’ Department of Transportation has recently approved PHP900 million for Laoag International Airport’s site acquisition for its planned expansion this year. The expansion plan covers a total of 58.5 hectares, and it will expand the airport’s runway to 205 metres east and 170 metres west from the centre lane to accommodate larger aircrafts. Once fully completed, international and regional flights are hoped to be revived at the airport, including direct international flights between the city and Honolulu, as well as Laoag-Cebu flight. The project is aimed to enhance the connectivity and mobility of Ilocos Region, and speed up the province’s economic recovery.
Hilton Unveils New Premium Economy Brand, Spark by Hilton
US-based Hilton Worldwide has recently introduced a new value driven brand, Spark by Hilton to its portfolio. The introduction of Spark by Hilton fills an open space in the hospitality industry by creating a new premium economy lodging option to offer value, quality and consistency to guests and owners. Spark by Hilton also leverages an innovative conversion model to offer compelling investment option for owners. Currently there are more than 100 deals in various stages of development across America, and the first Spark by Hilton property is anticipated to open this year.
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