Hotels & Hospitality Group | September 2015
Asia Pacific Hotel Investment Highlights H1 2015
Sold: The Westin Sydney. One of Sydney’s landmark five-star hotels, located in a prominent central CBD location.
4 Hotel Investment Highlights | September 2015
Contents 06 Lack of investment opportunities, lower deal volume
08 Pricing metrics mixed across region
11 Asian investors prefer the land down under
12 Still a flurry of investment activity in Japan
12 Mainland Chinese hotel investment largely outbound
12 Hong Kong makes the headlines after a hiatus
14 Trading performance hit by rising USD in some markets
16 Properties for Sale – Australasia
21 Properties for Sale – Asia
26 Contributors
On the cover – Sold: InterContinental Hong Kong. The sale of the five-star, waterfront hotel represents the largest single hotel transaction to ever occur in Asia Pacific.
Highlights
-14.9% in H1 to total
Asia saw the lion’s sh
$3.2 billion LS 9
Asia pacific
6 Hotel Investment Highlights | September 2015
Sold: Akaryn Samui Resort, Thailand. 52-key all-pool-villa luxury beachfront resort located just north of the famed Chaweng Beach in Koh Samui.
Over H1 2015, total transaction volume of closed deals across the region was led by Hong Kong ($1.3 billion), Japan ($569.2 million) and Mainland China ($112 million). This was followed by Thailand ($84.8 million) and Malaysia ($56.9 million). The Australian market showed strong sales activity during the half reaching $687.4 million, 21.2% of all investment sales in the region (up from 17.9% for the same period in 2014). Two large single asset sales in Australia were exchanged in H1 2015, however as these deals closed in July, the transactions will ultimately fall into H2 2015 volume flow.
Asia Pacific Quarterly Transaction Volume Q1 2007 to Q2 2015 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015
The first half of 2015 saw just under 11,000 keys traded across the Asia Pacific region, on par with H1 2014 (10,772 keys). However, in US Dollar terms, a moderation in total sales activity was realised, falling by 14.9% to $3.2 billion. This was largely the result of a noticeable reduction in marketable hotels in Asia and a geographic shift of investment focus to recovering and emerging markets in the Americas and parts of Europe.
China’s continued buying preference still remains very much outbound focused and this will shape the future of hotel real estate investment for some time to come. In 2015, Chinese capital is expected to represent some $5 billion in global hotel investment, possibly making it among the top-three exporters of capital globally along with the US and the Middle East. This comes just years after China was not even in the top-ten list. By 2020, JLL projects Chinese outbound capital will reach up to $7 billion annually.
Transaction Volume (USD Millions)
Lack of investment opportunities, lower deal volume
Australasia
Source: JLL
Asia
September 2015 | Hotel Investment Highlights 7
The top 10 closed transactions over H1 2015 collectively amounted to just above $2 billion. Hong Kong lent major weight to the rankings while Australia’s presence in the list of large-scale deals fell along with Japan when compared to the same period last year.
With more than $3.5 billion of hotels currently in due diligence or exchanged across the region, JLL is still confident of achieving the full year projection of $8.5 billion across Asia Pacific in 2015.
Asia Pacific Most Active Markets H1 2015
Transaction volume totalled $3.2 billion in H1 2015, just over $500K less than the same period in 2014
14,000
Transaction Volume (USD Millions)
12,000
10,000
8,000
6,000
4,000
2,000
0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Hong Kong Thailand
Source: JLL
Australia Malaysia
Japan Singapore New Zealand Maldives
Mainland China Other
H1 H1 2014 2015 India
8 Hotel Investment Highlights | September 2015
Pricing metrics mixed across region Across Asia Pacific, the average price per key in H1 2015 was down 16.5% (from H1 2014) to $296K. Asia registered $317K per key (down 11.6% y-o-y) while Australasia fell 29.5% to $237K. With large scale transactions closing in the second half of 2015 in Australia, the price per key is expected to increase substantially and return to trend (in excess of $300K).
Asia Pacific Top 10 Transactions H1 2015
We note the fall in price per key for Australia is mainly due to the exchange rate declining, however expect this to significantly increase with pending and completed settlements of many luxury assets falling into the second half of the year. 2015 is looking to be a record year in Australia. Completed sales for the second half of the year include Hilton Sydney, The Westin Sydney, Pullman Cairns International, Holiday Inn Sydney Airport, Rendezvous Hotel Sydney, Pacific Hotel Cairns, Adina Apartments and the Outrigger Australia Portfolio. With the depreciation of the Australian Dollar and strong trading performance across most cities, JLL anticipates inbound investment to continue being eagerly contested.
Grand Hyatt Hong Kong (50%)
Renaissance Harbour View Hong Kong (50%)
Hyatt Regency Tsim Sha Tsui Hong Kong (50%)
Hotel Grand Chancellor
citizenM Shanghai MixC
Hong Kong
Hong Kong
Kowloon
Singapore
Shanghai, Mainland China
Luxury
Upscale
Upscale
Midscale
Upscale
539 53 rooms
857 rooms
381 rooms
328 rooms
478 rooms
Sale Price (Millions)
Sale Price (Millions)
Sale Price (Millions)
Sale Price (Millions)
Sale Price (Millions)
$593.5
$478.4
$231.4
$2,202,041
$1,116,453
$1,214,698
$606,549
$234,310
Price per Key
Price per Key
Price per Key
Price per Key
Price per Key
Jun-15 Source: JLL
Jun-15
Jun-15
$198.9 Jan-15
$112.0 Apr-15
September 2015 | Hotel Investment Highlights 9
Pricing is also being revisited in many emerging markets, particularly India, Vietnam and Myanmar where some sellers are starting to move pricing expectations upwards again which may hamper future deal flow. In the mature markets, investors believe that hotels in Singapore are at a high point in the investment cycle and that other Asian markets will provide superior overall returns over the next few years. Indonesia has had a false start after being tipped to attract significant interest post the 2014 elections, but to date buying activity has been minimal. Investment activity in the Maldives has largely gravitated towards projects on islands that have been tendered out for resort development. Given the constraints associated with such forms of investment, interest in these situations has been typically spearheaded by domestic investors or foreign groups that have partnered with domestic investors. More recently, the 124-room Reethi Beach Resort was purchased by a Singaporean investor. Over the two years to June 2015, $455.8 million across eight transactions has been recorded at an average of $57.1 million per resort.
Investors believe that hotels in Singapore are at a high point in the investment cycle and that other Asian markets will provide superior overall returns over the next few years
Sheraton Noosa
Rihga Royal
Park Hyatt Goa
APA Hotel Yokohama-Kannai
Next Hotel Brisbane
Noosa Heads, Australia
Kyoto, Japan
Cansaulim, India
Yokohama, Japan
Brisbane, Australia
Upper Upscale
Midscale
Luxury
Midscale
Upscale
482 48 2 rooms
250 rooms
451 45 rooms
304 30 rooms
Sale Price (Millions)
Sale Price (Millions)
$86.3
Sale Price (Millions)
$83.1
Sale Price (Millions)
Sale Price (Millions)
$504,777
$179,087
$332,562
$155,521
$227,961
Price per Key
Price per Key
Price per Key
Price per Key
Price per Key
176 17 rooms
$88.8
Feb-15
Mar-15
Feb-15
$70.1
Feb-15
$69.3
Mar-15
10 Hotel Investment Highlights | September 2015
Sold: Hilton Sydney. One of Australia’s most elite hotels featuring 579 well-appointed guest rooms and some of the city’s finest dinning and entertainment destinations.
September 2015 | Hotel Investment Highlights 11
Asian investors prefer the land down under
14,000
400,000
12,000
350,000 300,000
10,000
250,000
8,000
200,000 6,000
150,000
4,000
100,000
2,000
Australasia
Asia
Price per Key Asia
H1 2015
H1 2014
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
50,000
2000
0
Price per Key (USD)
Transaction Volume (USD Millions)
Asia Pacific Pricing Metrics 2000 to H1 2015
0
Price per Key Australasia
Source: JLL
Overall, cross border investors dominated capital flow regionally, accounting for two-thirds of all deals above $5 million. With 64 deals (both single-asset and portfolio transactions) registered in the first half of 2015 (42 in Asia), offshore investors have dominated large asset sales with a high average deal size of $59.3 million (particularly into Australia). Australasia continues to attract the highest capital inflows with cross border investors being the dominant purchasers of hotel real estate over recent years. The source of offshore capital is also shifting with greater inflows from China, a trend JLL expects to gain pace over time, particularly into new markets such as Melbourne and Wellington.
Australia’s relatively higher cap rate compared to other gateway cities in Asia, the US and Europe has underpinned solid investment activity over H1 2015. There is strong demand from both local investors and offshore groups with the purchaser profile of investors dominated by groups from Asia (predominantly Mainland China and Singapore). With hotel trading performance at strong levels in Sydney and Melbourne, owners are taking advantage of the positive market conditions to dispose of assets. Over the year to date June 2015, Chinese investors have acquired five Australian hotels worth over $550 million. Other Asian investors (excluding China) accounted for 12 transactions totalling $318.5 million at an average of $27.9 million. The Westin Sydney and Hilton Sydney exchanged contracts during the first half of the year, both deals exclusively brokered by JLL, and consequently closed in July 2015. The Hilton Sydney was acquired by Bright Ruby Resources from Hilton Worldwide for $354.1 million or $612K per key. The Westin Sydney was acquired by Far East Land and Sino Land Company jointly, from the Government of Singapore Investment Corporation (GIC) for $346.9 million or $838K per key. Similar to trends in other asset classes, the emergence of Chinese investors has been a feature of the Australian hotel market. Outside of the key gateway cities, Chinese investors are exploring other destinations that have potential to attract increasing levels of tourism.
Asia Pacific Source of Capital 2000 to H1 2015
Australasia continues to attract the highest capital inflows with cross border investors
100%
Proportion of Transaction Volume
90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Cross Border
Source: JLL
Domestic
H1 H1 2014 2015
12 Hotel Investment Highlights | September 2015
Still a flurry of investment activity in Japan
Mainland Chinese hotel investment largely outbound
Japan recorded a solid first half of investment volumes in 2015, albeit down by 41.8% on the first six months of 2014 ($569.2 million vs $978.7 million). Osaka, Kyoto and Fukuoka have attracted stronger interest from local investors whilst regional cities such as Okinawa and Kanazawa are receiving greater enquiry levels.
During the first half of 2015, total hotel investment volume was down substantially compared to the same period in 2014. JLL is the first to caveat this figure, as the region still needs to progress substantially in transparency improvements stemming from both private and public sector investors. The good news is China plans to introduce a national property registry before 2018.
There has been limited transaction activity in Tokyo so far in 2015. The capital has seen hotel prices increase considerably over the past two years. Previously, investment funds were net sellers in Japan but with the unwinding of the CMBS market in 2013, a solid couple of years of investment continues unabated, underpinning the rise in capital values. Cross border deals are still low as an established local presence has a distinct advantage in completing sales with local relationships. However, JLL is aware of Chinese investors investigating opportunities in Japan, particularly with the strong growth in Chinese tourism. Japan is enjoying an unprecedented boom in foreign tourism growing substantially year on year since 2013. Most recently, Japan hosted 1.8 million foreign tourists in April 2015 – an all-time monthly high. Of total inbound, 405,800 arrived from Mainland China, up 113% y-o-y, making it the single largest and fastest growing source market of foreign tourists in Japan. In the first six months of 2015, according to new estimates by the Japan National Tourism Organisation, 9.1 million people visited Japan, up 46% on the same period in 2014. In the same period, 7.6 million Japanese travelled overseas. The weaker yen is a key reason why Japan is seeing more tourists arrive than it is sending abroad. Japanese corporates continue to dominate deal flow domestically. In particular, Hoshino Resorts REIT acquired two separate portfolios of limited service hotels. The REIT acquired three Comfort Hotels in Hakodate, Tomakomai and Kure for $24.9 million at a price per room of $60.6K, and in a separate deal, also purchased five Candeo Hotels from K.K. Tameike Kanzai for $34 million (or $48.6K per room). JLL acted as an exclusive advisor for a portfolio of five “b” hotels located in Minato-ku, Tokyo, Hachioji and Fukuoka sold to Japan Hotel REIT for the consideration of $170 million or $230K per key.
While Chinese investors acquiring hotels continue to make headlines on the global stage, two notable transactions did exchange on the Mainland during the first half of 2015. SOCAM, belonging to Hong Kong’s Shui On Group, sold the Four Seasons Hotel and associated luxury apartments in Shanghai’s Pudong district for $380.8 million. JLL notes this transaction officially closed in late July 2015 and is disregarded from first half volumes. The second transaction, also in Shanghai, was the citizenM MixC project ($112 million) sold by a joint venture between China Resources Land and Shanghai Shentong Metro Group to Hong Kong’s Shun Tak Holdings. The hotels, totalling 478 rooms, will be operated by Shun Tak’s hotel management subsidiary, Artyzen Hospitality Group (AHG).
Hong Kong makes the headlines after a hiatus Hong Kong is a key gateway market attracting significant investor demand. However, hotels in Hong Kong remain tightly held, often by family groups, trusts and HNWI’s. The ownership landscape of major, full service hotels is dominated by cash rich local conglomerates, such as New World, Cheung Kong, Great Eagle, Swire, Mandarin Oriental, Hong Kong Land, Far East Consortium and Shun Tak Holdings. Such organisations rarely sell prized assets and as such, opportunities to acquire major, full service hotels have been scarce. Historically, the Hong Kong hotel investment market has been dominated by transactions of small owner operated hotels, typically midscale quality or limited service asset types. Capping off a strong start to the year in Hong Kong, JLL as the exclusive advisor to the seller, announced that contracts were exchanged for the sale of the iconic InterContinental Hotel Hong Kong, on behalf of InterContinental Hotels Group PLC, to a consortium of investors advised and managed by Hong Kong-based Gaw Capital Partners. The purchase consideration of $938 million represents the largest single hotel transaction ever in Asia Pacific and the second largest in the world. The transaction is expected to close over the second half of 2015. In April 2015, UAE sovereign wealth fund ADIA agreed to buy a 50% stake in three Hong Kong hotels from a group led by New World Development Co. Ltd. for a total of $1.3 billion. The hotels are the Grand Hyatt Hong Kong, Renaissance Harbour View and Hyatt Regency Hong Kong. A joint venture was formed by New World and ADIA for this transaction and the deal closed in June 2015.
September 2015 | Hotel Investment Highlights 13
Sold: InterContinental Hong Kong. The landmark hotel features 503 wellappointed guest rooms and suites, and a collection of six celebrated dining venues, including three restaurants that have been awarded the coveted Michelin Stars.
14 Hotel Investment Highlights | September 2015
Sold: Pullman Cairns International, Australia. Cairns’ largest five-star hotel, featuring 321 guest rooms, ideally positioned within the Cairns CBD and in close proximity to several key tourism drivers.
Previously, investment into hotels from sovereign wealth funds across the region has been intermittent with no activity recorded in 2014. After the completion of ADIA’s recent acquisition, the overall share reached 38.4% in H1 2015. Typically, hospitality is a preferred asset class for these funds as hotels can provide significant cash flow if successfully operated. Asia Pacific Purchaser Profile 2010 to H1 2015 H1 2015 H1 2014
Trading performance hit by rising USD in some markets Performance was diverse across the Asia Pacific region over the past 12 months. Several countries experienced positive exchange rate fluctuations against the US Dollar and as a result demonstrated stronger positive ADR and RevPAR growth rates, while Northeastern countries in Asia recorded greater stability in respect of exchange rates, thereby witnessing a less significant shift in key hotel performance measures. The following statistics are sourced from STR Global and reflect the market performance of JLL’s standard hotel basket categories, which include a mix of graded (where denoted) and whole-market selections. In total, JLL tracks monthly performance of approximately 80 hotel markets throughout the region.
2014 2013 2012 2011 2010 0%
10%
20%
Corporate Bank / Institution Sovereign Wealth Fund
30%
40%
50%
60%
Developer/Property Company Investment Fund / PE Unknown
70% HNWI Other
80%
90%
100%
Hotel/SA Operator REIT
Source: JLL
During H1 2015, REITs were responsible for 9.2% of the total capital invested in the sector, consistent with H1 2014. Abundant capital, after a period of positive economic growth, has fuelled private company buying, whereas yield-seeking investors have been attracted to the REIT sector. 14.3% of buyers were developers and/or property companies whilst investment and/or private equity funds accounted for 16.1%. 36.2% of all Australasian capital into hotels came via investment and/or private equity funds.
Over the second half of 2014, the highest occupancy recorded was in Macau (90.6%) which improved 6.4% from the same period in 2013. Macau’s gaming sector has since suffered declines in revenue, as Beijing’s anti-corruption drive dented spending by wealthy individuals. Occupancy has now fallen to 84.3% (YTD June 2015). Taking top spot is Tokyo’s Limited Service market, improving 0.9% to 88.6%. Osaka reached 85.2%, a vast improvement of 10.3%. Again, the Maldives achieved the highest ADR of $836, an increase of 2.4%, next followed by Hong Kong Luxury at ADR $447. The latter market has yet to recover from the events of Occupy Central in October 2014, falling 7.3% (YTD June 2015). The best improvement in performance came via the Australian Great Barrier Reef market, rising to an ADR of $306 (up 8.0%). It should be noted that Tokyo and Osaka have both recorded double-digit growth in terms of local currency but due to depreciation of the Japanese Yen against foreign currencies, both cities are ranked low against true performance.
September 2015 | Hotel Investment Highlights 15
In terms of RevPAR growth, Bangkok Luxury increased 58.3% (albeit from a very low base after the events surrounding the political coup of 2014 which heavily impacted tourism). The highest RevPAR was recorded in the Maldives, Tokyo Luxury and Hong Kong Luxury, respectively. After the Great Barrier Reef, Shanghai’s Top Tier market rose by 5.3% to a RevPAR of $264 on the back of the strong growth witnessed in the domestic free independent travellers (FIT) market. While macroeconomic headwinds and new supply will challenge the market, the Chinese government is expected to continue the roll-out of various promotional acts to boost tourism. This includes a 72-hour visa-free policy across numerous cities (and perhaps extending it longer).
Domestic visitation is expected to maintain its strong growth trend amidst enhancements to tourism infrastructure that should support demand growth moving, such as Shanghai Disney Resort which is due to open in Spring 2016. Investment activity has continued to expand in 2015, but the strength of the US Dollar has masked the true depth of activity across Asia Pacific hotel markets. JLL realises the downside of reporting in US denominated currency as it leaves comparisons open to the swings and roundabouts of the various currency markets, however, it is necessary due to the comparison of various countries. The US is unwinding its stimulus program, but many of the world’s largest economies are introducing them, causing the US Dollar to strengthen against most global currencies.
The following league tables highlight the “Top 10” performers over the year to date June 2015. Highest Occupancy
Highest Average Daily Rate ADR (USD)
% Chg ADR (USD)
Maldives
836
2.4%
-1.5%
Hong Kong Luxury
447
-7.3%
87.6%
1.1%
Bali Luxury
439
-0.6%
Sydney
87.2%
0.5%
Tokyo Luxury
420
-6.1%
Sydney Airport
86.0%
6.8%
Shanghai Top Tier
373
1.3%
Market
Occupancy
% Chg YTD
Tokyo Limited Service
88.6%
0.9%
Melbourne five-star
87.8%
Sydney five-star
Market
Melbourne
85.6%
0.7%
Great Barrier Reef
306
8.0%
Osaka
85.2%
10.3%
Singapore Luxury
298
-10.5%
Beijing Serviced Apartments
84.4%
16.7%
Beijing Top Tier
293
-6.4%
Macau
84.3%
-6.2%
Sanya High-End & Luxury
290
-7.0%
Hobart
83.8%
2.6%
Taipei Luxury & Upper Upscale
240
-6.7%
Source: STR Global, JLL
Source: STR Global, JLL
RevPAR Growth Market
RevPAR (Local)
% Chg RevPAR (Local)
Bangkok Luxury
4,204
58.3%
Bangkok Upscale
2,409
54.0%
Bangkok Midscale & Economy
1,479
53.5%
291
37.2%
Great Barrier Reef Osaka
17,769
37.1%
Bangkok Serviced Apartments
2,232
21.4%
Bangalore
2,030
20.9%
132
18.6%
3,478
16.1%
740
15.3%
Ryde Chennai Luxury & Deluxe Beijing S.A. Source: STR Global, JLL
16 Hotel Investment Highlights | September 2015
Properties for Sale – Australasia SKYCITY Entertainment Group Limited New Five Star Hotel Project Auckland, New Zealand • • • • • • •
Opportunity to invest in a gateway city, experiencing strong economic and tourism growth Prime location in the heart of Auckland’s central business district 300 room hotel to be finished to a high five-star contemporary standard Strategic location adjacent to strong demand drivers Freehold tenure available Proposed to be managed by SKYCITY alongside other hotels in the precinct Rare opportunity to enter the tightly held local hotel market
Mark Durran +61 2 9220 8793 | mark.durran@ap.jll.com
Punthill Brisbane Brisbane, Australia • • • • • •
Premium serviced apartment hotel, 130sqm* retail tenancy, 218sqm* of office space, and a large carpark containing 57 bays Hotel component comprises 71 apartments, a licensed restaurant, conference facilities, swimming pool and gymnasium 1,801sqm freehold site boasting a strategic position on the CBD fringe with excellent connectivity to key demand drivers Fully refurbished at a cost of AUD 6,000,000* in 2012 Major tenant is Punthill Apartment Hotels, one of Australia’s largest apartment hotel operators Income security through triple net leases, strong covenants, and a WALE of 9.7* years
* Approx Peter Harper +61 2 9220 8548 | peter.harper@ap.jll.com
September 2015 | Hotel Investment Highlights 17
Properties for Sale – Australasia
Hilton Melbourne South Wharf Melbourne, Australia •
•
•
• •
Five-star contemporary hotel opened in 2009, featuring 396 rooms & suites, large flexible executive lounge, newly created premium meeting and pre-function space and the stylish Dock 37 Bar & Kitchen Adjoins the Melbourne Convention and Exhibition Centre with internal access, underpinning hotel demand with a stable business base Located in the Southbank precinct, in proximity to Crown Casino, Docklands and the CBD offering panoramic views of the city skyline and Yarra River Purpose-built to optimize efficiency and profitability with strong historical cash flows A rare opportunity to enter the tightly held Melbourne hotel investment market
Mark Durran +61 2 9220 8793 | mark.durran@ap.jll.com
18 Hotel Investment Highlights | September 2015
Properties for Sale – Australasia
Lizard Island Resort Great Barrier Reef, Australia • • • • • •
Iconic property set within 1,000ha of truly pristine national park and fringed with coral reefs and 24 powdery-white beaches 40 superbly appointed guest rooms & suites, most of which enjoy panoramic ocean views Restaurant, bar, spa, swimming pool, tennis court, gym, numerous recreational facilities and a private airstrip Direct access via scenic flights from Cairns International Airport connecting 30 domestic and 18 international destinations Strong market fundamentals, STR data demonstrates exceptional RevPAR growth across Great Barrier Reef island resorts Sub-Lease Interest offered
Mark Durran +61 2 9220 8793 | mark.durran@ap.jll.com
September 2015 | Hotel Investment Highlights 19
Properties for Sale – Australasia
Heron Island Resort Great Barrier Reef, Australia • • • •
•
109 guest rooms and suites, most of which enjoy views across the Coral Sea Restaurant, bar & lounge, day spa, marine centre, function room, retail boutique, swimming pool and private jetty Prime beachfront land under perpetual leasehold, a number of permits plus the leasehold interest in nearby Wilson Island Substantial marine operations including a passenger vessel with capacity for 176 persons, a number of dive boats and semisubmersible vessel Strong market fundamentals, STR data demonstrates exceptional RevPAR growth across Great Barrier Reef island resorts
Andrew Langsford +61 2 9220 8705 | andrew.langsford@ap.jll.com
20 Hotel Investment Highlights | September 2015
Properties for Sale – Australasia
Pullman Sydney Airport Sydney, Australia • • •
•
•
Sought after opportunity to acquire a fivestar property in Australia’s most desirable hotel investment destination 229 guest rooms & suites, extensive conference & meeting facilities, restaurant, bar, executive lounge and gymnasium Strategic proximity to Sydney Airport, Australia’s busiest airport servicing over 38.5 million passengers each year, and excellent connectivity to Sydney’s CBD and the city’s globally renowned accommodation demand generators Due for completion in June 2016, the hotel is forms part of a wider mixed-use development within Mascot’s growing commercial core Operated by AccorHotels, Australia’s largest hotel management company
Peter Harper +61 2 9220 8548 | peter.harper@ap.jll.com
September 2015 | Hotel Investment Highlights 21
Properties for Sale – Asia
The Nam Hai Hoi An, Vietnam •
•
•
• •
The award winning five-star resort features 100 well-appointed luxury villas and a diverse range of recreational facilities including four tennis courts, three beachfront swimming pools and a spa pavilion with eight treatment rooms Nestled on a tranquil one-kilometre stretch of the pristine Ha My Beach, the resort has been built and maintained to exceptional standards of quality, solidifying its reputation as the ultimate luxury resort in Vietnam Conveniently located 20-minutes by car from Danang International Airport and 10-minutes to the picturesque UNESCO heritage town of Hoi An Strong established cash flow with potential development upside Offered with the benefit of vacant possession of brand and management
Adam Bury +65 6494 3905 | adam.bury@ap.jll.com
22 Hotel Investment Highlights | September 2015
Properties for Sale – Asia
Elements Hideaway Resort Koh Samui, Thailand • • • • •
33 keys with a high component of villas and pool villas An absolute beachfront location prominently located near to the Conrad and InterContinental hotels Held under a Chanote (freehold) title, the highest level and most accurate type of title deed available in Thailand Vacant possession of management available upon sale Opportunity to expand to double key count on an adjacent land plot, adding a further 40 meters of beach frontage
Karan Khanijou +66 2 624 6563 | karan.khanijou@ap.jll.com
Dewa Phuket Phuket, Thailand • •
• • •
34 beautifully designed pool villas in Nai Yang, Phuket, a five minute drive from Phuket International Airport The property is held under a Chanote (freehold) title, the highest level and most accurate type of title deed available in Thailand The incoming owner can benefit from additional income from the 45 residential units in the rental pool Vacant possession of management available upon sale There is potential for redevelopment where an incoming owner can build 45 additional hotel rooms by demolishing six villas – this will significantly grow the existing return on investment
Karan Khanijou +66 2 624 6563 | karan.khanijou@ap.jll.com
September 2015 | Hotel Investment Highlights 23
Properties for Sale – Asia
Four Seasons Langkawi Langkawi, Malaysia • •
• •
Award-winning resort with exceptional reputation and future development potential Prominent location along scenic Andaman Sea coast, steps away from the pristine Tanjung Rhu beach and a short drive away from Langkawi International Airport Designed by two world renowned architects and built over approximately 273,300sqm of beachfront land Featuring 91 villas and pavilions, four food and beverage outlets, two swimming pools, a spa with six therapy rooms, state-of-theart fitness centre and in excess of 470sqm of flexible function space
Nihat Ercan +65 6494 3933 | nihat.ercan@ap.jll.com
Mahadhdhoo Island Gaafu Alifu Atoll, Maldives •
• • •
Originally planned as an 88-villa resort and estimated to be 10% complete, the island offers investors a unique opportunity to develop a resort based on their own, personalised specifications while benefitting from existing infrastructure Convenient location within Gaafu Alifu Atoll, easily accessible from Kooddoo Airport Direct 50-year head lease over a circa 119,000sqm island with the Ministry of Tourism Offered unencumbered by brand and management
Nihat Ercan +65 6494 3933 | nihat.ercan@ap.jll.com
24 Hotel Investment Highlights | September 2015
Properties for Sale – Asia
Royal Island Resort Baa Atoll, Maldives •
• • • •
Features 150 well-appointed accommodations including 128 beach villas, 20 connecting beach villas (comprising 10 family villas) and two presidential suites Enjoys an exceptional location within Baa Atoll – the only UNESCO World Biosphere Reserve in the Maldives Direct 50-year head lease over a circa 136,000sqm island with the Ministry of Tourism Numerous opportunities exist to renovate and reconfigure existing room inventory to create new premium room types Offered unencumbered by brand and management
Nihat Ercan +65 6494 3933 | nihat.ercan@ap.jll.com
September 2015 | Hotel Investment Highlights 25
Properties for Sale – Asia
Atmosphere Kanifushi Lhaviyani Atoll, Maldives • • •
•
Featuring 132 luxurious stand-alone beach villas, tucked away from the island’s expansive white sand beach Direct 50-year head lease over circa 294,000sqm island with the Ministry of Tourism Future development upsides include the expansion of guest room inventory by adding over-water villas, creation of additional food and beverage outlets or recreational amenities, and further accessorization of the junior suites with the addition of plunge pools Offered with the benefit of the in-place, experienced Atmosphere Hotels & Resorts management Nihat Ercan +65 6494 3933 | nihat.ercan@ap.jll.com
26 Hotel Investment Highlights | September 2015
Contributors Hotel Investment Highlights brings you real-time market insights from Asia Pacific’s leading hotel investment and research specialists.
Craig Collins
Scott Hetherington
Chief Executive Officer Australasia
Chief Executive Officer Asia
Tom Sawayanagi
Troy Craig
Managing Director Japan
Managing Director Strategic Advisory Asia Pacific
Mark Durran
Mike Batchelor
Managing Director Australasia
Managing Director Asia
Frank Sorgiovanni Head of Research Asia Pacific
September 2015 | Hotel Investment Highlights 27
JLL’s Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor in the world, totalling US$51 billion over the last five years. Between negotiating deals, the group’s 340-strong global team also executed 4,600 advisory, valuation and asset management assignments. The firm is recognised as the global leader in real estate services across hospitality properties from luxury, upscale, select service and budget hotels to timeshare and fractional ownership properties, convention centers and mixed-use developments. Investors and owner/operators worldwide turn to JLL to shape their investment strategies and maximise the value of their assets and JLL’s expert advice is backed by industry-leading research. For more news, videos and research from JLL’s Hotels & Hospitality Group, please visit: www.jll.com/hospitality, download the Hotels & Hospitality Group app for iOS and Android, or view our e-magazine The Hotel Investor, available for iPad. Jones Lang LaSalle’s Hotels & Hospitality Group Singapore CEA Licence: L3007326E Note: All currencies are USD unless otherwise mentioned. Exchange rate correct as at date of sale.
JLL’s Hotels & Hospitality Group offices
Atlanta tel: +1 404 995 2100
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Brisbane tel: +61 7 3231 1311
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Miami tel: +1 305 529 6345
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Chicago tel: +1 312 782 5800
Istanbul tel: +90 212 350 0800
Milan tel: +39 2 85 86 861
Toronto tel: +1 416 304 6000
Dallas tel: +1 214 438 6100
Johannesburg tel: +27 11 507 2200
Moscow tel: +7 495 737 8000
Tokyo tel: +81 3 5501 9200
Denver tel: +1 303 260 6500
Leeds tel: +44 113 244 6440
Munich tel: +49 89 2900 88 0
Washington D.C. tel: +1 202 719 5000
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London tel: +44 20 7493 4933
New Delhi tel: +91 124 460 5000
www.jll.com/hospitality
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