Insights from HVS Asia Pacific Hospitality

Weekly Hotel Industry Asia Pacific News Roundup from HVS

Citadines Raffles Place at CapitaSpring Sold for SGD280 Million in Singapore

Singapore-based CapitaLand Commercial Trust (“CapitaLand CT”), a wholly owned sub-trust of CapitaLand Integrated Commercial Trust (“CapitaLand ICT”), divested 100% of its interest in Glory SR Trust with its joint venture partners — Singapore-based CapitaLand Development and Singapore-based Mitsubishi Estate Asia, to an undisclosed third-party buyer. Prior to the sale, CapitaLand ICT owned a 45% stake in Glory SR trust. Glory SR Trust owns the serviced residence component of CapitaSpring, which is understood to be the 299-key Citadines Raffles Place. The agreed asset value was SGD280 million based on a 100% basis, hence valuing Capitaland ICT’s stake at SGD126 million. With this sale, CapitaLand ICT is expected to reduce its pro-forma aggregate leverage from 38.7% to approximately 38.4%, assuming the net proceeds are fully used to repay existing debt. This transaction would reflect an exit yield of approximately 3.6% for CapitaLand ICT. Centrally located in Singapore’s CBD, Citadines Raffles Place is part of the mixed-use building, CapitaSpring, and opened in February 2022. The serviced residence features a fitness centre, a swimming pool, shared working space, a residents’ kitchen, and a launderette. 

HCP and BGO Capital Partners Acquired Sydney Potts Point Central Apartment Hotel for AUD31.5 Million in Australia

Australia-based Hotel Capital Partners (“HCP”) and US-based BentallGreenOak Strategic Capital Partners LLC (“BGO Capital Partners”), a subsidiary of US-based Sun Life Financial Inc., jointly acquired the Sydney Potts Point Central Apartment Hotel for AUD31.5 million. This equates to approximately AUD450,000 per key. Located at a 20-minute drive from Sydney’s Kingsford Airport, the 70-key serviced apartments possess a ground-floor food and beverage outlet, and a rooftop terrace offering expansive views of Sydney’s CBD. This transaction marks Australia’s largest brokered strata amalgamation deal since the pandemic, underscoring sustained investor appetite for urban adaptive reuse opportunities. HCP and BGO Capital Partners plan to convert the serviced apartment into a co-living facility. This project will be managed by Australia-based UKO Group Services Pty Ltd (“UKO”), the country’s largest co-living operator. 

Kasumigaseki Capital Acquires Hotel in Kobe, Japan

fav hospitality group Co., Ltd. (“FHG”), a subsidiary of Japan-based Kasumigaseki Capital Co., Ltd. (“Kasumigaseki Capital”), has announced the acquisition of a business hotel in Kobe City, Hyōgo Prefecture, Japan, for an undisclosed amount. The property, which features a site area of 619 square metres and a total gross floor area of 3,543 square metres, represents a strategic addition to FHG’s expanding hospitality portfolio. Kobe City, the seventh-largest city in Japan, is approximately a 20-minute train ride from Osaka. FHG currently operates 15 hotels under its distinct lifestyle brands, including fav and seven x seven, and has a pipeline of 30 planned hotel development projects across Japan. This latest acquisition marks another milestone in the group’s ongoing growth.

Construction of a New Passenger Terminal at Dong Hoi Airport in Quang Binh Province, Vietnam

Dong Hoi Airport in Vietnam is set to undergo a major expansion with the construction of a new Passenger Terminal 2. Currently, Dong Hoi Airport operates with one passenger terminal, T1, with a designed capacity of 500,000 passengers per year. Located in Quang Binh province, the VND1.75 trillion project forms part of a wider airport development plan, which also includes the enlargement of the aircraft apron. Terminal 2 will be built on a site of nearly 12,000 square metres and will comprise two above-ground floors and a mezzanine level, featuring distinct zones for departures and arrivals to streamline passenger flow. Once complete, the new terminal will boost the airport’s capacity to accommodate up to three million passengers annually and includes plans for expansion to accommodate up to five million passengers if needed. This expansion comes as passenger growth at Dong Hoi Airport continues to outpace the national average across Vietnam’s airport network. It is anticipated that by the end of 2025, the airport will handle close to one million passengers, underscoring the urgent need for upgraded infrastructure.

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