HVS Monday Musings: Upholding Traveler Confidence – the First Step in the Road to Recovery

By Mandeep S Lamba and Dipti Mohan
The Indian hotel sector is experiencing a surge in demand, with occupancy levels of over 40% in most major markets. However, the sector should not lower its guard on safety measures now as any short-term lapses could weaken all gains made to date.

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Hotel Grand Chancellor Transacted for AUD10.9 Million in Australia

Singapore-based Hotel Grand Central Limited (“HGC”) has announced the sale of the Hotel Grand Chancellor in Palm Cove, Queensland, Australia. Originally valued at AUD9.3 million as at 31 December 2020 by Canada-based Colliers International, the property was acquired by a third party for AUD10.9 million. HGC stated that the transaction allows the group to realise its investment in this property which had recorded a net loss of AUD814,000 in 2020 due to the property’s challenging outlook. The group stated the net proceeds would be placed into interest-bearing bank term deposits, pending future investment opportunities. The group has also stated that they are currently working with an architect to explore the development of a land plot in Christchurch. Acquired in 2019, the new property is expected to be a mixed-used development, and would feature a hotel, carpark, retail stores and office spaces.

The Standard Set to Debut in Singapore in 2023

The Standard, a boutique hotel chain by US-based Standard International, is set to debut in Singapore in 2023 and will be developed by Invictus Developments, a real estate investment company owned by the family of Indonesian businessman, Bachtiar Karim. This comes following announcements about openings in Hua Hin in November 2021 and Bangkok Mahanakhon in 2022. The Standard is known for its hip, irreverent sensibility, and on-the-verge-of-a-party vibe, combined with sleek design, world-class hospitality, and excellent dining. The upcoming The Standard, Singapore on Orange Grove Road will be just across Shangri-La Singapore. It will feature 143 rooms, an arts and cultural programming, along with an infinity pool and pool bar set within a lush botanical courtyard. Moreover, it also accounts for Singapore’s Green Plan by offering a playful sanctuary for the neighbourhood. The Standard was launched in 1999 and currently has seven properties in New York, Los Angeles, Miami, the Maldives, and London. The forthcoming openings in Southeast Asia will be their first foray into Asia. The Standard will also be launching more hotels in Europe; in Lisbon in 2024 and Brussels in 2025.

KYOI Group to Enter Hong Kong Market

Thailand-based KYOI Group (“KYOI”) has announced the launch of its luxury lifestyle investment platform into the Hong Kong market. The platform prides itself as a reinvented form of a timeshare, where investors are offered a perpetual stay in KYOI properties, in addition to earning a passive income through their initial investment. Plans for the Hong Kong-based KYOI Group include the construction and operation of more than 20 resort properties across Asia’s most popular destinations. KYOI Founder, Jackson Tan, mentioned that each KYOI property will be designed with its themes and would be equipped with state-of-the-art facilities. Cuisines offered at the resort would feature local produce, with the aim of supporting the local culture and community. This announcement follows KYOI Samui’s ground-breaking ceremony in July, which is set to be completed and opened by the first half of 2023.

New Escape Theme Park in Cameron Highlands Set to Open in 2023

Escape Theme Park is set to welcome a new theme park in Cameron Highlands, Pahang Malaysia. The new 24-hectare park will feature five European-themed villages, namely the Iberian, British, Balkan, Nordic and Alpine village. There will be over 20 attractions in the park, including the brand’s signature Gravityplay and Adventureplay attractions. The Park will also feature a ski lift, an artificial dry ski slope, as well as accommodation and rental offerings. Once opened, it will be the largest Escape theme park in Malaysia. Malaysia-based developer and operator of theme parks, Sim Leisure Group, will be developing the park in three to four phases with new attractions being introduced at each phase. The first phase, which costs over MYR15 million, is expected to begin in December 2021 and is scheduled to open in 2023, with 200,000 visitors projected to visit the park. The total cost of the development is expected to exceed MYR100 million and will be completed within a decade. The Minister of Tourism, Arts and Culture of Malaysia, Nancy Shukri, expects this development to kickstart the revival of Malaysia’s domestic tourism industry after the pandemic disrupted the tourism economy.

Absolute Share Price Performance, as on 27 August 2021