HVS Asia Pacific Hospitality Newsletter – Week Ending 25 August 2023
Weekly Hotel Industry Asia Pacific News Roundup from HVS
Scotland Hotels: Mercure Glasgow Acquired For GBP7.5 Million By Thai Company
Bangkok-based international hospitality company, S Hotels & Resorts, has successfully acquired the freehold of Mercure Glasgow City Hotel on Ingram Street in Scotland for GBP 7.5 million. The hotel encompasses 91 rooms, a restaurant, bar, meeting spaces, and other amenities. The acquisition enables S Hotels & Resorts currently operating the hotel to take ownership of the site and has the flexibility to undertake a substantial refurbishment of the property. The Scottish hotel market is displaying resilience, with a threefold increase in investment volumes this year, totaling GBP165 million. This purchase aligns with Scotland’s flourishing tourism
Vacant Sydney Office Tower To Be Converted Into Luxury Hotel
Indonesia’s affluent Karim family, based in Jakarta, has intensified their efforts to establish a AUD500 million hotel portfolio in Australia. Through their local investment entity, Singapore-based Invictus Developments, they have recently acquired the five-star 50-key boutique hotel The Inchcolm by Ovolo in Brisbane for AUD25 million and the vacant former Bank of China building in Sydney near Wynward Station for a discounted AUD52.5 million. Invictus plans to repurpose the latter into a luxury hotel, spending AUD30 million on renovations, including a rooftop bar with a targeted opening by end 2025. With these acquisitions, Invictus now owns four hotels in Australia, including Harbour Rocks Hotel in Sydney and Quest Woolloongabba in Brisbane purchased for AUD40 million and AUD43.8 million respectively. The Karim family sees Australia’s post-COVID return to international travel as a promising factor for their investment.
With Indonesia’s High-Speed Rail Set To Launch In September, Authorities Look To Surabaya For Phase Two
The High-Speed Rail (HSR) between Surabaya and Jakarta will be launched in September 2023. The service will shorten the travel time to 45 minutes, from the usual three hours. The trains are designed to travel at a top speed of 420 kmh, but authorities approve a maximum speed of 350kmh for safety reasons. For the introductory campaign, there will be two months of complimentary rides for passengers with commercial operations beginning in October. The train is operated by PT KCIC, a joint venture of Indonesian state-owned enterprises and a consortium of Chinese railroad companies. The next step for the project is to extend services some 700 kilometres into East Java. The planned extension would facilitate an efficient transport infrastructure which will raise connectivity for passengers, bringing about economic growth. Overall, the rail project may serve as a catalyst for regional high speed rail development.
Enhanced Tourism Development Between Lam Dong And Busan
A strategic partnership between Busan Tourism Organization and Tourism Association of Lam Dong – Da Lat has been formalized in a signing ceremony with representatives of both associations in attendance. The agreement seeks to boost tourism exchanges and advance the tourism industries of both countries. A new direct flight route this past month from Busan and Da Lat has spurred greater connections between the two cities. The partnership focuses on bi-directional tourism growth, collaborate in tourism marketing initiatives, setting favorable conditions for tourism businesses to open tours to Da Lat, and providing support in preparation of Busan’s International Exhibition in 2030.
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