Weekly Hotel Industry Asia Pacific News Roundup by HVS
Star Group to divest 50% of Queen Wharf Brisbane Development to Far East & Chow Tai Fook, Brisbane, Australia
The Star Entertainment Group Limited (Australia) will sell its 50 percent stake in Queen Wharf’s Brisbane Development (“QWB”) for AUD53,000,000 to its joint venture partners Far East Consortium International Limited, Hong Kong, and Chow Tai Fook Enterprises, Hong Kong. After the transaction is completed, Star Group, Far East, and Chow Tai Fook will each own 50 percent of Destination Brisbane Consortium. Star Group, under the new agreement will continue to run the casino at a monthly cost until March 2026. This agreement includes the transfer to the joint-venture of Star Group’s Brisbane Treasury Hotel and Treasury Car-Park, as well as a 50 percent stake in Charlotte Street Car Park. Star Group will also assume control of all its Gold Coast assets, including two-thirds of Dorsett Hotel and Andaz Hotel under construction.
Goldfields Group acquires Quality Resort Sorrento Beach in Australia for AUD30 million
Goldfields Group Holdings Pty Ltd, a property developer based in Australia, has acquired Quality Resort Sorrento Beach (also known as “Sorrento Beach Resort”) Although the price has not been revealed, market sources indicate that the property sold for approximately AUD30-31million. The property is located in Sorrento (Western Australia) and occupies a landholding of approximately 9,000 square meters with a frontage of 115 metres along the West Coast Highway. The acquisition was made after a two-year process of amalgamating 81 short-stay strata properties, which included studios and one, two, and even three-bedroom units. Resort amenities include a swimming pool outside, a spa, a sauna, bbq area, conferencing room, parking, boardrooms, and parking. Goldfields Group indicated that it plans to enhance this asset by implementing immediate value-add projects, including a ground floor renovation as well as the addition of restaurant and bar offerings. In the interim, Goldfields Group will continue to operate the property using its current branding.
Hanwha Hotels & Resorts Acquires Paraspara Seoul for KRW30 Billion in South Korea
Hanwha Hotels & Resorts Co. Ltd (“Hanwha Hotels & Resorts”), a subsidiary of South Korea-based Hanwha Group, has acquired the 334-key Paraspara Seoul for KRW30 billion from Bukhansan Resort, an affiliate of South Korea-based Samjeong Company and under the umbrella of the Lupentis Consortium. This is approximately KRW89.8million per key. The price is 92 percent less than the market value of the hotel, and the property has a debt exceeding KRW390billion. The hotel, which will open in August 2021 on Mount Bukhansan has a variety of amenities, including three restaurants, a fitness center, swimming pools and jacuzzis, a museum, meeting rooms, and more. The Property has been rebranded to ANTO, a new in-house luxury brand of Hanwha Hotels & Resorts since the acquisition.
Ichigo Hotel to divest Comfort Hotel Suzuka in Japan for JPY430 million
Ichigo Hotel REIT Investment Corporation, a Japanese Real Estate Investment Trust (J-REIT) that is focused on the hotel industry, and has its headquarters in Japan, has entered into an agreement to purchase Comfort Hotel Suzuka from an unnamed Japan-based buyer. The price was JPY430,000,000. The 105-key hotel is valued at approximately JPY4.1m per key. The property is located in Mie Prefecture and sits on a 553 square metre site. It has approximately 2,187 square metres of floor space spread over six floors. The hotel was built in 2007 and is located five minutes away from Shiroko Station, which is on the Kintetsu Nagoya Line. This provides regional connectivity. The transaction represents an increase of JPY 155 million over the book price and is expected generate a profit on sale JPY 130 million. The property is under a fixed rent lease agreement, with a JPY2,573,833 monthly rent.
Mercure Clear Mountain to Undergo AUD4 million Rebranding to Peppers Brand, Brisbane, Australia
Mandala Hotels and Resorts in Australia has announced a AUD4-million rebranding for the 51-key Mercure Clear Mountain Lodge. The lodge will now be relaunched under the name Peppers Clear Mountain. The rebranding work will include enhancing the guest suites with panoramic mountain views. It will also introduce purpose-built venues for corporate events and weddings, a new restaurant and bar and expand private dining experiences. The existing spa will be upgraded, and new leisure facilities like a billiards room will be added. The strategic repositioning aims to improve the guest experience by aligning the property with Peppers brand standards. Nestled in Moreton Bay City and just a forty-minute drive from Brisbane International Airport, this retreat provides a peaceful escape.
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