Hong Kong – Finalists have been announced for the Reggie Shiu Development of the Year, Single Asset Transaction of the Year Award, and Merger and Acquisition of the Year Award to be presented at the Hotel Investment Conference Asia Pacific (HICAP), scheduled for 15-17 October 2014 at the InterContinental Hong Kong. Celebrating its 25th anniversary, HICAP is hosted by BHN, Horwath HTL, and Stiles Capital Events.
Finalists for the Reggie Shiu Development of the Year Award are:
- Holiday Inn Express Singapore Clarke Quay – Singapore – This well-timed and scaled 442-room addition to Singapore’s bustling and expanding select-service hotel market is ideally located for both business and leisure travelers. Given Singapore’s high land and build costs, the hotel’s focus on modestly sized rooms and streamlined service helps generate above average profit margins and thus above market investment return. Despite its select service positioning, this award-winning green-designed hotel also features a spacious landscaped rooftop area inclusive of a fitness center and swimming pool. Developed by RB Capital Hotels, for an estimated USD125 million.
Operated by IHG
Architecture by RSP Architects Planners & Engineers
Interiors by Wilson Associates
- Ritz Carlton Kyoto – Japan – Billing itself a modern international luxury ryokan, this luxury property offers 136 rooms and suites in a natural setting facing the Kamogawa River and enjoying views of the Higashiyama Mountains. Combining old with the new, approximately 1/3 of the site is comprised of a preserved traditional Meiji-style cypress wooden house incorporated as the centerpiece of an interior courtyard and the dining experience. A waterfall created as part of the former hotel project on the site has also been conserved, providing natural light down to the basement levels. Developed for a reported USD200 million by Sekisui House, Ltd, a lease deal was originally preferred, but Marriott International, as operator, tailor-made the deal structure to bridge a lease and management deal to create a win-win scenario for both parties.
Operated by Marriott International, Inc.
Architecture by Nikken Sekkei
Interiors by Peter Remedios/SPIN (F&B)
- Sofitel So Singapore – Singapore – Strategically located at the heart of the Singapore CBD, this 134-room property is the transformation of a heritage building into a groundbreaking product, blending the old and new and incorporating unique takes on Paris and Singapore aesthetics, complemented by a complete Apple-based guest solution technology. Construction of the hotel was based on sound eco-friendly practices earning itself a Greenmark Platinum Award from the Building and Constructions Authority of Singapore. The return of investment came almost immediately from the first month of operation, capturing both business and leisure travelers drawn to the property’s location and stand-out features amongst a crowded Singapore competitive landscape. Developed by Royal Group Holdings, for a reported SGD132 million.
Operated by Accor Asia Pacific
Architecture by DP Architects
Interior design by Isabelle Miaja
Finalists for the Single Asset Transaction of the Year Award are:
- Osaka Namba Washington Hotel Plaza – Japan – Japan’s Osaka Namba Washington Hotel Plaza was acquired by Singapore’s Ascendas Hospitality Fund Mgt for 8.9 Billion Yen from a private fund seller. The 698-room hotel was acquired, after a very competitive sales process, in 45 days from start to finish by the Singapore-based trust. Of note, the Singapore REIT was able to convince the seller of their ability to raise required acquisition funds on a very short notice – and succeeded while completing a fast-track due diligence process in Japanese.
- Royal Phuket Yacht Club – Thailand – In a largely off-market transaction, the Royal Phuket Yacht Club was acquired by a subsidiary of RECAP III, a fund managed by SC Capital Partners, for a reported USD30 million from Puravarna Hotels Ltd. The purchase price represents approximately USD230,000 per key for 100 percent ocean-facing rooms starting at 70sqm in size. The transaction required simultaneous but separate negotiation and purchase of both existing debt and equity interests in the hotel. While complex, the purchase secured the only beachfront property on one of Phuket’s top beaches at well below replacement cost.
- Westin Singapore – Singapore – In a large cross-border transaction, the Westin Singapore was acquired by the Daisho Group of Japan for a reported SGD468 million from BlackRock’s Asia Property Fund III. The new leasehold property is part of a larger development – Asia Square Tower 2 in Marina Bay. The benchmark purchase price SGD1.5 million per key equals the record for a Singapore hotel. The new hotel is expected to perform well given its premium location – one that is attracting stronger and stronger office tenants.
Finalists for the Merger and Acquisition of the Year Award are:
- Acquisition of Tourism Asset Holdings Ltd (TAHL) – In the largest M&A transaction of the period, the Abu Dhabi Investment Authority (ADIA) acquired Tourism Asset Holdings Ltd (TAHL) – Australia’s largest owner of hotels – in a deal reportedly valued at AUD740 million. TAHL owns 31 hotels located throughout Australia’s major markets. All of the hotels will continue to be operated by Accor Asia Pacific.
- Acquisition of Hotel Mystays and Flexstay Inn Portfolio, Japan – In a broad-based national transaction, Invincible Investment Corporation (IIC) was able to raise USD250 million through a JREIT offering to acquire 20 centrally located limited service and extended stay properties across Japan’s most important commercial markets for a total transaction price of USD450 million. The offering was the largest hotel JREIT execution and was highly oversubscribed both domestically and internationally. The portfolio is comprised of recently renovated, rebranded and repositioned assets with continued growth potential.
The Sustainable Hotel Awards will also be presented at HICAP, recognizing hotels in the Asia Pacific region demonstrating exemplary sustainable best practices. For additional information on HICAP visit www.HICAPconference.com.