Asia Pacific Hotel Investment Highlights H2 2015 - … APAC Hotel... · Asia Pacific Hotel...
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Asia Pacific Hotel Investment Highlights H2 2015
Hotels & Hospitality Group | February 2016
Sold: InterContinental Hong Kong. One of Hong Kong’s premier luxury hotels, sold for a record $938 million - the largest single hotel transaction in Asia Pacific and the second largest in the world.
4 Hotel Investment Highlights | February 2016
Contents06 Strong finish achieves annual volume of over $9 billion
07 Positive adjustment of pricing per key in Asia
08 Asia Pacific Top 10 Single Asset Transactions H2 2015
11 Investment funds and private equity dominate capital flow
11 And the winner is… Sydney
11 Queensland holding its own with Asian buyers
12 Record deal activity in New Zealand
12 China accelerates hotel buying in Japan
14 Distressed assets fuelling buyer activity in India
14 M&A activity behind transactions of a different nature
15 Melbourne and Sydney hotels near full, Osaka again a strong performer
16 Properties for Sale – Australasia and Asia
22 Contributors
On the cover – Sold: Four Seasons Hotel & Four Seasons Place Shanghai at Pudong, China. Opened in September 2012, the strategically located hotel sits in the heart of the Lujiazui district, one of Asia’s leading financial centres and the world’s first super-high rise precinct.
February 2016 | Hotel Investment Highlights 5
Highlights
$9.2 billion
transacted in
2015
over 33,000 keys traded across
asia pacific
156 DEAlS in
11 coUntries
Japan recorded lArgESt
trAnSAction volUme in asia pacific
of $2.5 billion
6 Hotel Investment Highlights | February 2016
Strong finish achieves annual volume of over $9 billionOn the back of one of the strongest years in terms of hotel investment, Asia Pacific recorded transaction volume of over $9 billion in 2015. Japan ($2.5 billion) was again a standout market, with sales undertaken by a suite of domestic investors in addition to increased interest from offshore buyers. Japan was closely followed by Hong Kong ($2.2 billion) and Australia ($2.1 billion).
Over 33,000 keys were traded across the region in 2015. Total sales activity in 2015 increased year on year by over 19% to $9.2 billion.
Over H2 2015, total transaction volume across the region was led by Japan ($1.5 billion), Australia ($1.4 billion) and Hong Kong ($982.2 million). This was followed by Mainland China ($759.4 million), India ($250 million) and Thailand ($182 million).
In term of annual volumes, Hong Kong recorded the largest increase year on year ($2.2 billion, +1,045%) - primarily due to the $938 million sale of the InterContinental Hong Kong, the largest single asset sale in Asia Pacific - followed by New Zealand ($165.4 million, +454%) and India ($265.6 million, +327%). The Australian market also recorded strong sales activity again in 2015 reaching over $2 billion, however was actually 15% below 2014 owing to the US Dollar’s appreciation. However, the largest moderation, again coming off a record performance in 2014, was the Maldives.
Substantial levels of Chinese capital continue to seek offshore opportunities with the majority of these groups being large private conglomerates with existing real estate and development exposure.
These groups have been acquiring trophy assets in key gateway global cities. Global outbound Chinese investment into hotels surpassed $5.3 billion in 2015.
Hotel transactions within Mainland China have started to near $1 billion annually; this level is expected to continue, if not increase, in 2016. Australia will remain active as well, though given the large number of prime single assets having traded to long-term holders over the past few years, the number of single asset opportunities available to investors is expected to decrease.
Tightly-held hotel stock in Singapore continues to make transactions few and far between. Investors have taken a ‘wait-and-see’ approach for Hong Kong, which saw its biggest year in 2015, with hotel performance peaking upon a noticeable retreat of Mainland visitors.
Sold: Sofitel Bora Bora Private Island – Part of the Sofitel French Polynesia Portfolio. The only boutique luxury island resort in Bora Bora, this incredible boutique resort is located in Bora Bora’s crystal lagoon.
Over H2 2015, total transaction volume across the region was led by Japan ($1.5 billion), Australia ($1.4 billion) and Hong Kong ($982.2 million).
February 2016 | Hotel Investment Highlights 7
The top 10 single-asset transactions over H2 2015 collectively amounted to almost $2.8 billion. Hong Kong ranked first with the JLL-brokered sale of the InterContinental Hong Kong for $938 million. This was the largest single-asset transaction in Asia Pacific, and the second largest globally.
Australia’s presence in the top 10 is a consequence of a number of significant transactions, namely the Hilton Sydney and The Westin Sydney (a combined $710.9 million), both of which were brokered by JLL. Interestingly, India has made a welcome return to the list of significant single asset sales. This follows the sale of The Leela Goa for $111.6 million.
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Asia Australasia
Source: JLL
Asia Pacific Quarterly Transaction Volume Q1 2007 to Q4 2015
Positive adjustment of pricing per key in AsiaAcross Asia Pacific, the average price per key in 2015 was up 19% year on year to $269K. Asia registered $270K per key (+28%) while Australasia experienced a moderation to $268K, a consequence of the Australian Dollar falling against its US counterpart. Upon the confirmation of several large-scale transactions over the second half of 2015, the increase in price per key was as expected.
Hong Kong ranked first upon the sale of the InterContinental Hong Kong for $938 million – the largest single-asset transaction in Asia Pacific, and the second largest globally.
8 Hotel Investment Highlights | February 2016
rooms361
rooms rooms roomsroomsrooms rooms rooms187
Goa,India
Shanghai,China
Hong Kong,China
Shanghai,China
Beijing,China
Singapore Hokkaido, Japan
Okinawa, Japan
$335,443Price per Key
$2,002,139Price per Key
Sale Price (Millions)
Okinawa Marriott Resort & Spa
Four Seasons Hotel & Four Seasons Place Shanghai at Pudong
Holiday Inn Central Plaza Beijing
Big Hotel Singapore
InterContinental Hong Kong The HUB Hotel The Leela GoaHoshino Resorts
Tomamu
$121.1Sale Price (Millions)
$374.4*$198,847Price per Key
Sale Price (Millions)
$150.5$298,219Price per Key
Sale Price (Millions)
$96.0$462,774Price per Key
Sale Price (Millions)
$142.5$1,864,811
Price per Key
Sale Price (Millions)
$938.0$390,214Price per Key
Sale Price (Millions)
$157.3$541,638Price per Key
Sale Price (Millions)
$111.6
503 403 757 308 206 322
Jul-15Jul-15 Jul-15 Dec-15 Dec-15Nov-15Sep-15 Sep-15Jul-15 Sep-15
Luxury Upscale MidscaleLuxury Upper MidscaleUpscale Upscale
rooms
Sydney,Australia
The WestinSydney
416
Luxury
rooms
Sydney,Australia
AU$763,386(US$611,624)Price per Key
AU$1,070,512(US$857,694)Price per Key
Hilton Sydney
Sale Price (Millions)
(US$354.1)AU$442
Sale Price (Millions)
(US$356.8)AU$445.3
579
Upper UpscaleUpper Upscale
Asia Pacific Top 10 Single Asset Transactions H2 2015
Source: JLL, Real Capital Analytics. *Transaction included hotel and unsold residences.Note: All currencies are US Dollars unless otherwise mentioned.
Overall, cross border investors accounted for half of all capital flow regionally (deals above $5 million). With 156 deals (comprising single-asset and portfolio transactions) recorded across 11 countries in 2015, offshore investors have dominated larger asset sales (particularly into Australia) with a higher average deal size of almost $70 million.
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Source: JLL
Asia Pacific Most Active Markets H2 2015
February 2016 | Hotel Investment Highlights 9
rooms361
rooms rooms roomsroomsrooms rooms rooms187
Goa,India
Shanghai,China
Hong Kong,China
Shanghai,China
Beijing,China
Singapore Hokkaido, Japan
Okinawa, Japan
$335,443Price per Key
$2,002,139Price per Key
Sale Price (Millions)
Okinawa Marriott Resort & Spa
Four Seasons Hotel & Four Seasons Place Shanghai at Pudong
Holiday Inn Central Plaza Beijing
Big Hotel Singapore
InterContinental Hong Kong The HUB Hotel The Leela GoaHoshino Resorts
Tomamu
$121.1Sale Price (Millions)
$374.4*$198,847Price per Key
Sale Price (Millions)
$150.5$298,219Price per Key
Sale Price (Millions)
$96.0$462,774Price per Key
Sale Price (Millions)
$142.5$1,864,811
Price per Key
Sale Price (Millions)
$938.0$390,214Price per Key
Sale Price (Millions)
$157.3$541,638Price per Key
Sale Price (Millions)
$111.6
503 403 757 308 206 322
Jul-15Jul-15 Jul-15 Dec-15 Dec-15Nov-15Sep-15 Sep-15Jul-15 Sep-15
Luxury Upscale MidscaleLuxury Upper MidscaleUpscale Upscale
rooms
Sydney,Australia
The WestinSydney
416
Luxury
rooms
Sydney,Australia
AU$763,386(US$611,624)Price per Key
AU$1,070,512(US$857,694)Price per Key
Hilton Sydney
Sale Price (Millions)
(US$354.1)AU$442
Sale Price (Millions)
(US$356.8)AU$445.3
579
Upper UpscaleUpper Upscale
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Source: JLL
Asia Pacific Source of Capital 2000 to H2 2015
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Source: JLL
Asia Pacific Pricing Metrics 2000 to H2 2015
10 Hotel Investment Highlights | February 2016
Sold: Four Seasons Hotel & Four Seasons Place Shanghai at Pudong, China. The iconic hotel offers 187 luxuriously-appointed guest rooms (including 15 suites), two restaurants, and 800 square metres of function space.
February 2016 | Hotel Investment Highlights 11
Investors are providing a wave of capital into a growing sector that presents attractive returns.
Investment funds and private equity dominate capital flowWhat is clear is the increasing weight of money originating from investment and private equity funds into hotel assets. Developers and property companies have traditionally dominated buyer activity, but in 2015 27% came from funds compared with only 18% from developers.
Overall, investors are providing a wave of capital into a growing sector that presents increasingly attractive return potential which has resulted in a continual rise of core market capital values.
While growth rates have slowed across CBD offices and luxury residential properties in gateway cities, hotels are still seeing improved values by comparison, emphasising their attractiveness.
Undoubtedly, private equity firms will continue to be bullish on the hospitality segment, having energetically invested into the sector. Highly contested trophy assets and portfolio consolidation is taking place, generating a wave of growth and liquidity. The mooted sale of several portfolios across the region is testament to this.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
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Corporate Developer/Property Company HNWI Hotel/SA Operator Bank / Institution Investment Fund / PE Other REIT Sovereign Wealth Fund Unknown
Source: JLL
Asia Pacific Purchaser Profile 2011 to H2 2015
And the winner is… SydneyThe boost in Australian investment activity has been particularly focused on upscale hotels, with those located in Sydney highly contested by offshore investors, particularly from Asia. The shortage of marketable stock and well located assets has resulted in continued growth in investor demand.
Asian buyers were most active, accounting for virtually all deals for assets priced over $35 million. Domestic buyers – primarily high net worth individuals (HNWIs) – are most prevalent on transactions below $50 million in value.
With hotel trading performance experiencing sustained buoyancy in Sydney and Melbourne, owners have taken advantage of the market conditions to dispose assets. The respective market outlook remains positive however, as according to Tourism Research Australia, the number of Mainland Chinese visitors to Australia rose above one million for the first time in 2015.
Investors out of Mainland China acquired four Australian hotels worth just over half a billion dollars. Asian investors (excluding the Mainland) accounted for 14 transactions totalling $835.3 million at an average of $64.3 million.
JLL brokered two iconic Sydney hotels last year; The Westin Sydney for $356.8 million or $858K per key (AUD 445.3 million or AUD 1.1 million per key) and the Hilton Sydney at $354.1 million or $612K per key (AUD 442 million or AUD 763K per key). Chinese corporate Nanshan Group has also recently acquired the Pullman Sydney Airport for $61 million, due for completion in the fourth quarter of 2016.
Australian hotel real estate has been attracting increasing amounts of offshore investment in recent years, and now there is a surge in offshore interest with the typical capital source markets of South East Asia being complemented by Mainland China.
Queensland holding its own with Asian buyersQueensland resort markets such as the Gold Coast have also seen an improvement in trading performance and price per key metrics based on recent transactions.
Supported by the Australian Dollar depreciation and limited new supply, capital values have recorded improvement with evidence of strengthening net operating profit (NOP) performance across most hotels along with compressing capitalisation rates.
Brookfield Multiplex offloaded the Hilton Surfers Paradise hotel for more than $35.7 million to a private Chinese investor while a private buyer acquired the Crowne Plaza Broadbeach for approximately $49 million. Around the same time Marriott Vacation Club bought the Surfers Paradise Marriott Resort and Spa for $54 million.
12 Hotel Investment Highlights | February 2016
China accelerates hotel buying in JapanJapan was again a hotbed of investment activity in 2015, up 5% year on year ($2.5 billion versus $2.4 billion). The buyer profile was once more dominated by Japanese REITs and their sponsors. In particular, Fortress Investment Group and Hoshino Resorts were most active.
Just four transactions were cross border, the largest being China’s Yuyuan Tourist Mart, buying Hoshino Resorts Tomamu in Hokkaido. This JLL-brokered sale was one of the largest ever resort transactions in Japan for $150.5 million. Yuyuan is part-owned by Fosun who recently acquired Club Med and continues to pursue trophy asset hotels globally.
The transaction, which was completed in December 2015, marks the first foray by a Mainland Chinese institutional investor into the Japanese hospitality market. Japan is enjoying an unprecedented boom in foreign tourism, with visitor numbers growing a substantial 47% in 2015 to 19.7 million. Across the same period, the number of Chinese tourists visiting Japan increased by 107% (five million), according to the Japan National Tourism Organization.
The growth in visitor arrivals has provided a significant contribution to the number of guest nights sold, particularly in Sydney, Melbourne, Brisbane and the Gold Coast.
Record deal activity in New ZealandThe land of the long white cloud recorded a total of six hotel transactions, for an aggregate price of over $165.4 million in 2015, compared to just three deals totalling $29.8 million in 2014.
Offshore investors have been looking to get a foothold in the hotel sector with limited new supply coming into the market over the next three years. Around three quarters of total investment came via cross border buyers.
An Auckland-based private investor acquired the 247-room Novotel ibis Ellerslie hotel for a record $37.2 million in October 2015. This transaction set a new benchmark for sale price expectations of hotels outside the CBD area and was sold by Host Hotels & Resorts, who also traded the Novotel Queenstown Lakeside for $60.2 million, the biggest deal of 2015 in the country.
New Zealand continues to gain popularity as a tourism destination, with the New Zealand Dollar also depreciating against the US Dollar. The country is welcoming a record number of Chinese tourists, now it’s second largest visitor market.
China’s growing middle-class has seen sustained growth in visitor arrivals to New Zealand over the last five years. Increased air capacity from the two direct carriers, China Southern Airlines and Air New Zealand, with new airlines Air China and China Eastern also establishing year-round services in 2015, helped boost arrivals.
Sold: Sofitel Bora Bora Marara Beach Resort - Part of the Sofitel French Polynesia Portfolio. A quintessential five-star resort with a prime beachfront setting, featuring 55 overwater, beachside and garden bungalows.
Japan is enjoying an unprecedented boom in foreign tourism.
Sold: Hoshino Resorts Tomamu, Japan. All-seasons resort in Hokkaido, featuring 145 hectares of skiable area, a total of 757 guest rooms, 25 ski runs, 18-hole golf course and one of the largest indoor wave pools in Japan.
February 2016 | Hotel Investment Highlights 13
14 Hotel Investment Highlights | February 2016
Distressed assets fuelling buyer activity in IndiaThe landscape of India’s hotel sector is changing – from being development-driven to now becoming more transaction-based. A noticeable improvement in hotel operating performance in 2015 (following a six year period of intense economic downward pressure exasperated by new supply) has provided the impetus for acquisition and consolidation in some markets.
Nine hotel transactions (excluding partial equity stake buyouts or refinancing) in 2015 were equal to the combined number recorded in 2013 and 2014. This was an almost even split between luxury/upscale and midscale positioned product.
Hotel transactions include Radisson Blu Resort & Spa, Alibaug ($20.3 million), being acquired by a HNWI, SAMHI Hotels’ acquisition of Four Points by Sheraton ($14.2 million) and also Vizag and ITC’s acquisition of luxury property Park Hyatt Hotel, Goa ($83.1 million).
JLL exclusively brokered the last hotel deal of 2015 – the Ganesh Meridien Hotel for $20.3 million.
In the past few years, India’s hospitality sector had been impacted by a slowing of it’s economy, consequently impairing the corporate travel market.
Increasing pressure from lenders to reduce debt levels on stressed balance sheets of hospitality players has proven to be a major motivation for hotel transactions in 2015. As a consequence, the sector is receiving increased interest from institutional investors.
M&A activity behind transactions of a different natureIn November 2015, the $12.2 billion Marriott International acquisition of Starwood Hotels & Resorts followed months of speculation relating to consolidations in the hotel management space. The acquisition will position Marriott as the world’s largest hotel chain, operating or franchising more than 5,500 hotels with circa 1.1 million rooms across the globe – approximately 50% more than the closest contender, Hilton Hotels & Resorts.
The deal has generated speculation with regards to further consolidations, as hotel chains focus on size and scale to compete with each other as well as online travel agents (OTAs).
Less than a month later, AccorHotels announced the acquisition of FRHI Holdings Ltd (FRHI), parent company of Fairmont, Raffles, and the Swissôtel chains. This $2.9 billion deal will include FRHI’s three global luxury hotel brands, covering 155 hotels and resorts – of which 40 are currently under development – and more than 56,000 rooms across 34 countries.
We can anticipate further consolidation as the existing larger players (established brands and emerging hotel companies) compete to take control of more hotels with a view to strengthening the reach of their loyalty programs and also deliver reduced distribution costs through enhanced operating synergies.
Sold: Reethi Beach Resort, Maldives. Situated in Baa Atoll’s UNESCO World Biosphere Reserve, Reethi Beach Resort boasts a highly strategic location amongst a cluster of some of the Maldives’ most celebrated luxury resorts.
February 2016 | Hotel Investment Highlights 15
Melbourne and Sydney hotels near full, Osaka again a strong performerOver the past 12 months, exchange rate fluctuations against the US Dollar have seen ADR and RevPAR growth rates decline when reporting in US Dollars as the constant currency. As it is common to report figures in US Dollar terms, hotels across Asia Pacific have mostly demonstrated negative results in the two key performance metrics (ADR and RevPAR). Moreover it is important for readers to fully acknowledge this currency dimension in order to avoid a potential misinterpretation of results.
Consequently, and for the purpose of this edition, JLL have instead produced the following tables showing the best ten performers in terms of local currency which is more reflective of market performance.
The following statistics are sourced from STR Global and are based on JLL’s standard hotel basket categories, which include a mix of graded (where denoted) and whole-market selections. In total, JLL tracks monthly performance of approximately 100 hotel markets throughout the region.
Highest Occupancy
Market Occupancy % Chg YTD
Melbourne Luxury 88.8% -0.8%Sydney Luxury 88.6% 2.0%Sydney 88.2% 1.3%Tokyo Limited Service 88.1% -1.1%Sydney Airport 87.8% 5.7%Melbourne 86.5% 1.1%Osaka 86.5% 7.4%Hong Kong Midscale & Economy 85.7% -3.6%Macau 85.6% -5.6%Tokyo Luxury 84.7% 2.4%
Source: STR Global, JLL
Highest ADR Growth
Market Currency ADR (Local)
% Chg ADR (Local)
Osaka JPY 22,362 23.1%Fiji FJD 332 13.5%Jakarta Upscale IDR 2,356,288 13.9%Ryde (Sydney sub-market) AUD 171 13.5%Tokyo Upscale JPY 25,287 12.8%Tokyo Luxury JPY 51,673 12.3%Bali Luxury IDR 6,127,106 11.3%Tokyo Limited Service JPY 12,468 10.8%Jakarta Serviced Apartments IDR 1,632,558 9.9%Sydney AUD 243 6.6%
Source: STR Global, JLL
The following league tables highlight the “Top 10” performers over the year to date December 2015
RevPAR Growth
Market Currency RevPAR (Local) % Chg RevPAR (Local)
Osaka JPY 19,337 32.2%Bangkok Upscale THB 2,392 31.5%Bangkok Midscale & Economy THB 1,485 29.7%Bangkok Luxury THB 4,102 28.9%Bangalore INR 2,138 24.7%Fiji FJD 250 7.8%Ryde (Sydney sub-market) AUD 134 16.0%Bangalore Deluxe INR 3,597 15.0%Tokyo Luxury JPY 43,763 15.0%Bangkok Serviced Apartments THB 2,262 14.2%
Source: STR Global, JLL
Properties for Sale – Australasia and Asia
16 Hotel Investment Highlights | February 2016
Mahadhdhoo Island Gaafu Alifu Atoll, Maldives• Opportunity to complete resort development
on the 119,000sqm island• Located a scenic 15-minute speedboat
journey away from Kooddoo Airport• Offered with the benefit of vacant
possession of brand and management• Held under a direct lease agreement with
the Ministry of Tourism• Luxury resort market with strong
fundamentals
Nihat Ercan +65 6494 3933 | [email protected]
SKYCITY Entertainment Group Limited, New Five Star Hotel Project Auckland, New Zealand• Opportunity to invest in a gateway city,
experiencing strong economic and tourism growth
• Prime location in the heart of Auckland’s central business district
• 313-room hotel to be finished to a high five-star contemporary standard
• Strategic location adjacent to strong demand drivers
• Freehold tenure available• Proposed to be managed by SKYCITY
alongside other hotels in the precinct • Rare opportunity to enter the tightly held
local hotel market
Mark Durran +61 2 9220 8793 | [email protected]
Properties for Sale – Australasia and Asia
February 2016 | Hotel Investment Highlights 17
Maavelavaru Island ResortNoonu Atoll, Maldives• Secluded, yet seamlessly accessible
location in the pristine northern part of the Maldives archipelago within a 50-minute scenic seaplane journey from Malé International Airport
• Offered unencumbered by brand and management
• Direct 50-year head lease agreement with the Ministry of Tourism with potential to extend the lease term to 99 years upon opening
• Substantially-completed island resort covering a total land area of approximately 434,000sqm surrounded by unspoiled coral reefs and abundant marine life
• Featuring 114 generously-sized villas and an extensive range of facilities including nine restaurants and bars, a comprehensive spa facility, and a beautifully-appointed lap pool
• Established luxury resort destination boasting one of the highest room rates in the world
Aaron Desange +65 6494 3900 | [email protected]
18 Hotel Investment Highlights | February 2016
Kodhipparu IslandNorth Malé Atoll, Maldives• Unparalleled location in North Malé Atoll,
benefiting from easy access to and from the capital city, large labour pool, and convenient supply logistics
• Developed by Amin Construction, one of the leading construction companies in the Maldives
• Opportunity to own the newest property in the Maldives offered with the benefit of vacant possession and direct head lease agreement
• Strong market fundamentals with growing visitor arrivals
Corey Hamabata +65 6494 3930 | [email protected]
Properties for Sale – Australasia and Asia
February 2016 | Hotel Investment Highlights 19
TamassaBel Ombre, Mauritius• Built to international upscale standards,
Tamassa has benefited from continued investment and upgrade throughout its operation
• The resort has achieved strong financial performance and profit growth since opening
• The Mauritian hotel sector has seen strong growth in demand, which combined with limited future supply, should lead to improved RevPAR and profit performance in the coming years
• Lux* Resorts & Hotels has an excellent track record in terms of operational performance and guest satisfaction. The opportunity also exists to acquire the property on a vacant possession basis
• An incoming owner has the opportunity to further enhance Tamassa through the development of additional rooms, repositioning the hotel as four-star deluxe, or extending the food and beverage and guest facilities
Adam Bury +65 6494 3905 | [email protected]
Properties for Sale – Australasia and Asia
20 Hotel Investment Highlights | February 2016
Hotel De’MocBangkok, Thailand• Uniquely positioned for redevelopment to a
modern boutique hotel in the historic heart of Bangkok given the building’s character, high ceiling height and superb views
• Rare fully-licensed offering in Bangkok’s tightly held investment market where less than 1% of the total room stock will transact on an annual basis
• Vacant possession of brand and management allowing an incoming investor the flexibility to assume management directly or engage a preferred management company
• Freehold Chanote titles, the highest level and most accurate title deeds available in Thailand
• Easy access to transport links including the MRT Blue Line Extension, river transport and the inner-city expressway which allows access to Suvarnabhumi International Airport within a 40-minute drive
Karan Khanijou +66 81 497 7566 | [email protected]
Properties for Sale – Australasia and Asia
February 2016 | Hotel Investment Highlights 21
Rimkok Resort HotelChiang Rai, Thailand• Attractively priced at $53,000 per key
for a 256-key resort with additional 40 rai of land for further development
• Situated on prime riverfront land with 130m of river frontage, yet in close proximity to the town
• Vacant possession of brand and management allowing an incoming investor the flexibility to assume management directly or engage a preferred management company
• Offered with value enhancement opportunities to generate substantial returns by renovating the hotel into a four-star accommodation, upgrading the MICE facilities to capture the growing MICE demand or developing the additional land into more hotel keys / residential project
• Freehold Chanote titles, the highest level and most accurate title deeds available in Thailand
• Chiang Rai is a surging destination, as of June 2015, the city showed a y-o-y growth in visitor arrivals of 24.2% to over 400,000 visitors. It strategically located in close proximity to the borders and is less than 250km to China
Paul Chakkrit +66 89 815 2272 | [email protected]
Properties for Sale – Australasia and Asia
ContributorsHotel Investment Highlights brings you real-time market insights from Asia Pacific’s leading hotel investment and research specialists.
Craig Collins Chief Executive OfficerAustralasia
Scott HetheringtonChief Executive OfficerAsia
Mark DurranManaging DirectorAustralasia
Mike BatchelorManaging DirectorAsia
Frank SorgiovanniHead of Research Asia Pacific
Troy Craig Managing DirectorStrategic AdvisoryAsia Pacific
Tom Sawayanagi Managing DirectorJapan
22 Hotel Investment Highlights | February 2016
JLL’s Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totalling more than $68 billion worldwide. Between negotiating the world’s most extraordinary, enticing, and profitable property deals, the group’s 350-strong global team also closed more than 4,400 advisory, valuation and asset management assignments. Investors worldwide turn to JLL to shape their strategies, tailor their portfolios and maximise the value of their assets. We are recognised as the global leader in real estate services across hospitality properties of all shapes and sizes.
Our expert advice is backed by industry-leading research. We apply our broad spectrum of hotel valuation, brokerage, asset management and consultancy services through every phase of the hotel lifecycle. We have helped more hotel investors, owners and operators achieve high returns on their assets than any other real estate advisor in the world. Whether you are looking for a hotel or you’re ready to sell, we’ll use our capital markets expertise, hospitality industry knowledge and global relationships to put the right parties together and execute a bespoke deal that exceeds your objectives.
For more news, videos and research from JLL’s Hotels & Hospitality Group, please visit: www.jll.com/hospitality, download the Hotels & Hospitality Group app for iOS and Android, or view our e-magazine The Hotel Investor, available for iPad.
Jones Lang LaSalle’s Hotels & Hospitality Group Singapore CEA Licence: L3007326E
Note: All currencies are USD unless otherwise mentioned. Exchange rate correct as at date of sale.
February 2016 | Hotel Investment Highlights 23
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