Chinese investors backtrack on Western hotel deals
Read the latest news from across the Asia-Pacific region.
Chinese investors have been major players in US hotel deals for years, but recently these companies significantly slowed their pace or even reversed coursereports Terence Baker of HNN.
“In recent years, Chinese companies that were active in acquiring Western hotels have reduced their investments,” Baker writes. “Some have disappeared or shrunk – including insurance company Anbang Insurance Group and tour operator HNA Group – as the Chinese government has spoken out against what it sees as overspending in non-essential markets. Chinese companies buying these assets and hotel businesses have been acquired by other Chinese companies – such as when Jin Jiang International Holdings acquired Radisson Hotels Group from HNA in 2018 – potentially at the insistence of the Chinese government.
Oyo Hotels & Homes International President Prasun Choudhary said his company has high expectations for 2022 given the momentum of the recovery in the second half of last year, reports HNN’s Bryan Wroten. There is a lot of pent-up travel demand as the worst of the omicron variant of COVID-19 appears to be over.
“The last two years have also given us a lot of time to think about our strategy, to think about how we can innovate more on our products, more on our technology,” he said. “It’s really made us an even more tech-focused company.”
Many independent and boutique hotel owners and regional chains in India switched to bigger hotel brands to help them recover from the pandemic, reports HNN contributor Chitra Balasubramaniam.
Travelers in India have turned to hotel brands since the start of the pandemic, said Basant Sabu, general manager of business development and feasibility at Concept Hospitality, which manages the Fern Hotels & Resorts brand.
“This pandemic period has acted as a catalyst for the same,” Sabu said. “Customers are looking for safe, secure and hygienic places to stay – this environment they feel [was] better provided within the confines of branded hotels.”
The hotel property investment fund Summit Hotel Properties has closed $900 million in deals over an eight-month periodand more than $1 billion in 2021, thanks to its partnership with Singapore’s sovereign wealth fund GIC, reports HNN’s Sean McCracken.
Among these acquisitions are the 26 hotels in its $776.5 million deal with NewcrestImagea portfolio of six hotels for $172 million and a $33 million deal for the 110-room Residence Inn Steamboat Springs.
“We’ve only owned the Newcrest portfolio for about 40 days, so we’re well on our way to integrating this portfolio into the business,” Summit President and CEO Jonathan Stanner said during the talk. his company’s fourth quarter 2021 earnings call. “I think we feel better today than we even did when we signed up or even when we announced the acquisition on what the opportunity set looks like.”
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- Japan’s Onward Holdings has sold its 428-room Onward Beach Resort in Guam’s Agana Bay to Guam Hotel Management, a subsidiary of Japanese hotel operator Hoshino Resorts for 8.5 billion Japanese yen ($68.7 million).
- Singapore-based Travelodge Hotels Asia will launch the 138-room Travelodge Honmachi Osaka, its first hotel in Japan, later this year. It has opened the 159-room Travelodge Phuket Town in Thailand and another is planned for September, the 406-room Travelodge Nimman Chiang Mai.
- Laundy Hotel Group has acquired the freehold business of the 72-room Mercure Centro hotel in Port Macquarie from Australian-owned HTL for A$25 million ($18.7 million).
- Hong Kong-based Cheer Sky Investment, a wholly-owned subsidiary of Harbor Center Development, has sold its entire stake in China-based Wharf (Changzhou) Estates Company to Changzhou Youzhong Catering Management Company for 402 million Chinese yuan ( $63 million), and the offering included the 302-room Marco Polo Changzhou.
- Thai company Narai Hospitality has launched its new luxury brand, Marasca Hotels & Resorts, with its first property, the 18-room Marasca Khao Yi, which is set to open later this year.
- Hong Kong-based Weave Living has partnered with Singapore-based SLB Development to acquire the 88-room Clover Hotel in Jalan Sultan, Singapore, for 74.8 million Singapore dollars ($54.9 million ).
- Philippines-based Alliance Global Group will invest $152 million in its subsidiary, Travelers International Hotel Group, a joint venture between Alliance Global Group and Hong Kong’s Genting Hong Kong, to operate Resorts World Manila.
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