In Focus: Malaysia - Reinvigorated Opportunities

By Jeremy Teo and Hok Yean Chee
In Focus: Malaysia 2018 summarises Malaysia’s tourism landscape, hotel performance and outlook. The article further highlights four growing destinations including Johor, Kuala Lumpur, Langkawi and Penang.

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LaSalle Acquires ibis Styles Tokyo Bay in Hinode, Urayasu City, Chiba Prefecture, Japan

US-based LaSalle Investment Management (“LaSalle”) has acquired the ibis Styles Tokyo Bay hotel through its LaSalle Asia Opportunity V Fund (“LAO V”) for an undisclosed sum. LAO V was launched in August 2016 and secured total commitments of US$1.15 billion, of which 85% is assigned to the Fund and 15% is targeted for co-investments. Prior to the acquisition, LAO V had invested about 37% of the committed capital in major Asian cities, such as Tokyo, Osaka, Nagoya, Singapore, Shanghai and Hangzhou across multiple sectors that include hotels / serviced apartments, office, retail, and logistics. Through this acquisition, LaSalle outlines their positive outlook for Japan tourism market and aims to capitalize on the upcoming Tokyo Olympic 2020. Conveniently situated near Tokyo Disneyland and in close proximity to Shin-Urayasu Station, the newly-built 8-storey hotel features 216 guestrooms with a total floor space of 6,715 square metres. Slated to open on 2 July 2018, the property will be operated by AAPC Japan KK, the Japanese subsidiary of France-based Accor S.A. (“AccorHotels”). The ibis Styles Tokyo Bay hotel will mark AccorHotels’ 12th property in Japan.

Pandey Hotel Acquires Best Western President Hotel in Auckland

New Zealand’s largest hotel owner, Pandey Hotel Corporation (“Pandey Hotel”) has acquired the majority interest in the 3.5-star 120-room Best Western President Hotel at 27-35 Victoria Street West in Auckland for an undisclosed sum. This is the first major freehold hotel to sell in the Auckland CBD over the past five years since the Hilton Auckland in 2012. The transaction indicates an investment yield of under 7 per cent. Situated in the heart of the Auckland CBD, the hotel is in proximity to the City Rail Link’s new Aotea Station, SkyCity and the New Zealand International Convention Centre (NZICC). Pandey Hotel has an extensive portfolio of assets in New Zealand including the Pullman Auckland, and the Sofitel and Novotel hotels in Auckland and Wellington.

Renaissance Brand to Debut in Zhejiang Province, China

US-based Marriott International (“Marriott”) has opened its first Renaissance hotel, namely Renaissance Hangzhou Northeast Hotel, in Zhejiang Province, China. Located in Yuhang District of Hangzhou city with convenient accessibility to the Yuhang Economic and Technological Development Zone, the hotel is about ten minutes’ drive from the Linping Station of Hangzhou’s Metro Line 1 and Yuhang Railway Station. It features 172 spacious and comfortable guestrooms which are equipped with PHILIPS 55-inch LCD televisions, LITHOCAST LITE bathrooms, B&W speakers, SEALY matresses and BOSCH SUNY coffee makers. Food and beverage outlets at the hotel include an all-day dining Chinese restaurant and the R Bar. In addition to a 780-square-metre pillar-free ballroom and five function rooms, the hotel offers a fitness centre, an indoor heated swimming pool and other supporting facilities.

Thailand Registers Double-digit Growth in Tourist Arrivals in First Five Months of 2018

According to the Ministry of Tourism and Sports (“MOTS”), Thailand registered a total of 16.5 million international visitors during the first five months of 2018, representing a year-on-year (y-o-y) growth of 12.6%. During this period, tourism receipts from overseas visitors was THB867.5 million, an increase of 16.1% y-o-y. Specifically in the month of May, Thailand welcomed 2.8 million international visitors, an uplift of 6.4% y-o-y and generated more than THB136.7 million in tourism revenue, an increase of 9.0% y-o-y. China was the biggest source market in the month of May, recording a robust growth of 14.0% y-o-y, while visitors from India also contributed to the double-digit growth, registering an increase of 12.1% y-o-y.

Absolute Share Price Performance, as on 29 June 2018