JLL’s Hotels & Hospitality Group’s latest Hotel Investor Sentiment Survey suggests hotel investment in Asia Pacific will continue to recover in the fourth quarter of 2022 and into 2023 with more investors looking to deploy the highest levels of capital since the pandemic started. The survey shows approximately 80% of investors plan to be net buyers in 2022. Approximately 20% of investors indicated they would deploy between $501 million to $1 billion+ worth of capital into the hospitality sector, up from 7% of investors in 2021 and 16% in 2020. JLL left unchanged their projection of $10.7 billion in total hotel investment in Asia Pacific for 2022. London, Tokyo and Boston emerged as the top three markets for hotel investment. The primary catalyst behind Tokyo’s recovery is high levels of domestic demand as room nights sold as of July 2022 grew 66% relative to the same period in 2021 with the upscale hotel segment accounting for the highest growth. The depreciation of the Japanese Yen versus the US Dollar by nearly 20%, as well as Japan’s low interest rate environment, will continue to boost foreign investment demand in the near to medium term.
JLL said that over the next six months, 57% of investors anticipate the best investment opportunities to emerge across traditional hospitality property types, including full-service and select-service hotels. Furthermore, 82% of investors indicated they are targeting value add investment opportunities. 34% of investors are interested in vacant possession or unencumbered hotels. JLL said the pace of recovery will vary by region but hotel fundamentals are expected to continue recovering, albeit at a more protracted rate, given global economic headwinds. Significant pent up demand for travel and experiences coupled with increasing corporate and group demand will help further drive the recovery. JLL said investor interest in the sector is expected to remain strong, with transaction activity picking up in the medium term.
Fortune Park Hotels, a unit of ITC Ltd., said they are growing upwards of 20% in revenues over 2019-2020 numbers. The chain signed 10 hotels over the past year and has a pipeline of around 17 hotels in 14 new locations. The recovery after the third wave started off mainly in the tier two, tier three markets but as the year went on, they have been seeing that recovery in the key cities and the metros as well.
Accor announced further expansion in India with the signing of Mercure Chandigarh Tribune Chowk, scheduled to open late 2023 and Novotel Mohali Airport Road, scheduled to open in 2026. The agreement for Mercure Chandigarh Tribune Chowk was signed with KLG Enterprises. They are also owners of the Novotel Chandigarh. The agreement for Novotel Mohali Airport Road was signed with Starlite Corporation, owned by KLG Enterprise. The Mercure Chandigarh Tribune Chowk will feature 60 rooms while Novotel Mohali Airport Road will offer 120 rooms. Both properties offer extensive meeting and conference facilities, alongside multiple restaurants. Novotel Mohali Airport Road, which will be developed within the Mohali Industrial Area, will furthermore offer a bar and spa, alongside a fitness center and gym. Accor has 56 existing properties in India across a selection of brands. They have six more properties in the pipeline set to open next year.
Accor’s ibis brand unveiled its latest address in Surabaya, Indonesia. The newly opened ibis Surabaya Tidar is open in one of the country’s most active commercial hubs. The hotel features 108 rooms. Upon arrivals guests will be welcomed into a stylish lobby area which also features a bar. There is a casual all-day dining restaurant, gym, and two meeting rooms. The hotel follows 12 other Accor properties established in East Java.
Travelodge Honmachi Osaka will open its doors on September 28. Located in the Midosuji area, the hotel has 138 guest rooms, restaurant, laundromat and socializing areas. Travelodge Honmachi Osaka is owned by Plenitude Berhad.
Inverlochy Castle Management International is launching a new Singaporean hotel. The hotel-management company will operate all front and back of house services, including sales and marketing at the new 134-bedroom Hotel Telegraph in Singapore. The heritage building, once Asia’s telecommunications hub, has been run as a hotel since 2014. It will transform into The Hotel Telegraph on September 28 under a new owner and ICMI’s management with intention to invest in the property and target cultural and business travelers.
Gabriel Gunesekere has been appointed as Head Development – Sri Lanka, Maldives & International by The Clarks Hotels & Resorts. He will be responsible for negotiating management contracts, branding, recruiting the teams in certain geographical locations with a focus on expansion of properties in Sri Lanka and the Maldives with representations internationally. Negotiations are currently in the pipeline for new property tie-ups with The Clarks Hotels & Resorts Network both in Sri Lanka and the Maldives with other key geographical locations. Prior to this position, Gunesekere was director of sales and marketing for The Kingsbury Hotel Colombo, Sri Lanka and the Rose Garden Hotel, Yangon, Myanmar.
Cambodia-based fund management company Amara Capital has made a strategic growth investment in Thalias Hospitality Group, a restaurant and hotel group located in the country.
Accor is set to open one branded residential project every six weeks throughout 2023 and 2024, of which approximately 45% will be located in the India, Middle East, Africa & Turkey region. So far, in 2022, Accor signed three branded residential projects in the region, with another three expected by year end. By the end of 2024 they will be operating more than 15 branded residential projects in the region across the Accor and Ennismore brands. Accor and Ennismore are expanding their global leading position in branded residences with over 130, operating and pipeline branded residential projects across 33 countries. Ennismore branded residences represent approximately a quarter of Accor’s existing network and pipeline, with SLS, Mondrian and Hyde with eight operating and sixteen pipeline residences between them. Ennismore will open five residences projects in the region over the next three years. The first Mama Shelter Residences in the world will also open in Dubai in 2024. Accor is also seeing increasing demand for standalone residential projects. The Group currently has 8 open and pipeline standalone residences.
BWH Hotel Group announced the addition of new hotels in Europe, Asia and North America. New properties have been added in countries including France, Germany, Austria, England, the United States and Thailand, among others. Properties joining the portfolio include: Vib Hotel by Best Western Denver RiNo, Denver, CO and Sadie Best Western Hotel @ Luton, England; Best Western Plus Celebrity Suites, Vienna, Austria; Best Western Plus Market Square, Ukraine; Best Western Le Relais du Vigneron, France; Best Western M-Treize Paris Asnieres, France; Best Western Parkhotel Brehna-Halle, Germany; Best Western Nada Don Mueang Airport Hotel, Thailand; and Sure Hotel by Best Western Hilden-Dusseldorf, Germany.
