Briefs: Asia Pac investor sentiment up; Hilton grows in Asia

Investment sentiment in APAC picks up: Investment sentiment continues to recover in Asia Pacific, with North Asia leading the region’s recovery, while Southeast Asian markets anticipate reopened borders, according to the Asia Pacific Hotel Sales & Investment — October 2021 report by Savills. In Q3 2021, an APAC hotel investment volume of US$2.2 billion was recorded across 43 transactions, an increase of 12% YOY. About 75% of the deals were completed by domestic buyers. Japan, South Korea and Taiwan were the top three most active buyers this quarter, accounting for 51% of the total regional hotel sales volume. With three deals, Japan led the region with a total hotel transaction volume of US$950 million, an increase compared to the same quarter last year which saw volume of US$168 million. Reflecting a sharp decrease of 72%, Taiwan registered US$265 million across six transactions, mostly due to the sale of Sunworld Dynasty, the biggest hotel deal of 2020. South Korea reported the highest number of transactions in the region this quarter, with US$253 million across 10 deals.

Anantara debuts in Hungary: Anantara Hotels, Resorts & Spas, Bangkok, announced its debut in Hungary with the addition of the 185-room Anantara New York Palace Budapest Hotel to its European portfolio. The hotel is currently undergoing transition to the Anantara brand, which is slated to be completed by spring 2022. The renovation includes upgraded lobby and guest rooms and the addition of the White Salon, a restaurant serving Hungarian cuisine. A new spa will also be launched next year. Constructed in 1894, the hotel was designed by Hungarian architect Alajos Hauszmann.

Rendering of Waldorf Astoria Osaka

Hilton expands portfolio in Asia: Hilton announced two signings in Asia — the first Waldorf Astoria hotel in Osaka, Japan, and the Conrad hotel in Chongqing, China. The two management agreements were signed with Orix Real Estate Corp. and Chongqing Jiafa Industrial Co. Ltd. After they open, the hotels will be a part of the 30 operating hotels in the region under the company’s group of luxury brands — Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts and LXR Hotels & Resorts. Cementing the brand’s presence in Asia, the Conrad Jiuzhaigou will be opening later this month in China’s Sichuan province. Currently, 17 hotels in Hilton’s Waldorf Astoria, Conrad and LXR brands are under development in the Asia Pacific.

US performance moves closer to pre-pandemic levels: Hotel performance in the U.S. fell from the last week but inched closer to the pre-pandemic levels, according to STR’s latest data through November 20. November 14-20  (percentage change from comparable week in 2019):

  • Occupancy: 59.7% (-2.1%)
  • ADR: US$126.66 (+1.7%)
  • RevPAR: US$75.60 (-0.4%)

Among the top 25 Markets, Phoenix saw the largest occupancy increase over 2019 (+6.4% to 76.6%).Oahu Island experienced the steepest fall in occupancy from 2019 (-35.2% to 51.8%). Miami sawthe largest ADR increase when compared with 2019 (+25.5% to US$207.72). The largest RevPAR deficits were in San Francisco/San Mateo (-71.3% to US$90.81) and Oahu Island (-37.3% to US$113.55).

Burnett Equities acquires Hotel Martinique: Burnett Equities, Oklahoma City, Oklahoma, has acquired the 531-key Hotel Martinique New York from Herald Hotel Associates, New York, for US$55.5 million. Burnett Equities plans to invest an additional US$55 million to redevelop the landmark property for a total investment of US$110 million. Eric Anton and Nelson Lee of Marcus & Millichap’s Manhattan office represented Herald Hotel Associates and boosted the property value by securing six retail leases for the property within three months. Mission Capital Debt & Equity, part of Marcus & Millichap Capital Corp. and MMCC’s Matthew Polci, Steven Buchwald, Jordan Ray and Lexington Henn of Burnett Equities secured a mortgage of US$71 million and a more financeable ground lease. The property was undergoing bankruptcy,after the pandemic forced the business to close.

YOTEL launches franchise, conversion model: YOTEL’s first franchise property in the U.K. opened earlier this month in Manchester, following an acquisition by Tristan Capital Partners, marking the third franchise agreement for the brand following the openings of YOTEL Porto and YOTELPAD Park City. The 261-cabin YOTEL Manchester was rebranded from the previous Qbic Manchester hotel and the rebranding is expected to be completed in Q1 2022. This is the group’s fourth hotel opening in the U.K. in less than two years. YOTEL Manchester follows the openings in Glasgow, London and Edinburgh, Amsterdam, Istanbul and Porto, with YOTEL Geneva scheduled to open in 2022.