Weekly Hotel Industry Asia Pacific News Roundup from HVS
Marina Bay Sands Singapore is Expanding with a USD1 Billion Hotel Renovation
Billion Hotel Renovation on the Marina Bay Sands Resort ("MBS"). The 2,561-key property will be upgrading all its rooms and suites in Tower 1 and Tower 2, including a refurbished executive club lounge, premium fine dining, and wellness offerings across the 55th floor of all three towers. LVS believes this hotel reinvestment will go hand-in-hand with the USD3.3 billion expansion of the entire MBS, which will feature a performance arena, an additional 1000-key hotel tower, a sky roof with a swimming pool and restaurants, and additional event spaces in 2026. LVS is confident in Singapore's long-term opportunities, where short-term momentum has already been observed with the implementation of the vaccinated travel lanes.
Lendlease and TRX City Acquire a 1.2-acre land for a Mixed-use Development in Centre Kuala Lumpur
Australia-based Lendlease Corporation and Malaysia-based TRX City Sdn Bhd, a strategic development company wholly owned by the Malaysian Ministry of Finance, have jointly acquired a 1.2-acre land in Kuala Lumpur's Tun Razak Exchange ("TRX"). The two companies have acquired the land for a mixed-use development that will feature a hotel, retail and residential components. This project is the second joint venture agreement between the two groups in TRX. They are currently developing The Exchange TRX as a collaborative project, a 17-acre centrepiece of the district with six residential towers, a large-scale retail selection, and the first 471-key Kimpton Hotel in Malaysia. Located in the centre of Kuala Lumpur, the entire TRX development is a crucial public-private project in the city, estimated to exceed MYR40 billion in value.
The OneFive Osaka Midosuji Hotel Sold and Transformed to Travelodge
Japan-based Ichigo Estate has sold the former OneFive Osaka Midosuji Hotel to a separate account investor advised by Travelodge Hotels (Asia) Pte. Ltd. ("TLA"). Located in the central Hommachi district in Japan, the 14-story hotel will be rebranded as Travelodge and undergo a comprehensive refurbishment to welcome guests post-COVID in Q4 2022. TLA has successfully advised the acquisition process from due diligence to transaction negotiations amid strict border restrictions from the Japanese government. The investors signed the contract after the state of emergency was lifted in Q4 2021 and have strong confidence in the recovery of the country's Japanese market and long-term fundamentals.
The largest transaction in Tasmania, Parliament Square Hobart sold and settled AUD338 million
Australia-based super fund Spirit Super ("SS") has acquired Parliament Square Hobart for AUD338 million in the largest real estate deal ever concluded in Tasmania. Australia-based Citta Property Group formerly developed the 152-key hotel. Parliament Square also includes mixed-use assets comprising office, hotel, retail, and car parking. The 16,300 square metres office component and associated car bays are leased to the Tasmanian government until 2037. The hotel is also the first "Luxury Collection" hotel to be opened in Australia by the US-based Marriott International Group. The sale of the hotel was subject to a 15-year management agreement and included 630 square metres of retail tenancies located on-site. The sales campaign has generated strong interest from domestic and international purchasers.
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