City Developments Limited Acquires Full Control of W Singapore-Sentosa Cove and Quayside Isle

Singapore-based City Developments Limited (“CDL”) has sealed the deal to acquire the remaining 62.5% stake in 240-key W Singapore-Sentosa Cove and Quayside Isle, a waterfront shopping centre which covers over 40,000 square feet of retail and dining space. The assets were acquired from the investors of Profit Participation Securities 1 structure at SGD393 million, granting CDL full control of W Singapore and Quayside Isle. CDL has revealed plans to conduct a minor renovation for the hotel which will include the public areas, and certain food and beverage outlets. In addition, the group also plans to refinance The Residences at W Singapore-Sentosa Cove which features 34 private berths and 228 upscale residences. Majority of CDL’s hotel assets are owned and operated through UK-based Millennium & Copthorne Hotels plc with a global portfolio of more than 135 hotels with approximately 40,000 rooms. Apart from W Singapore, CDL’s other hotel assets includes the 533-key Millennium Hilton Bangkok and 299-key St Regis Singapore.

Crystalbrook Collection Acquires The Byron at Byron Resort and Spa for AUD41.7 Million

Dubai-based Syrian billionaire Ghassan Aboud has announced the acquisition of The Byron at Byron Resort and Spa for AUD41.7 million, a new addition to Crystalbrook Collection’s AUD1 billion Australian portfolio. The resort was jointly owned by retail mogul Gerry Harvey and Australia-based Harvey Norman Holdings’ subsidiary. Positioned in a 45-hectares subtropical forest, the 92-suite resort is a short drive from Byron Bay in New South Wales, featuring an infinity pool, day spa, tennis court and a one-hatted restaurant. Following the acquisition of The Byron at Byron Resort and Spa, Crystalbrook Collection now has over 1,100 rooms in operation or under development across seven properties in New South Wales and Queensland. Other properties under Crystalbrook Collection include the 311-key Riley resort in Cairns, 35-key Little Albion boutique hotel in Sydney, two upcoming hotels in Cairns, the Bailey and Flynn, and Kingsley hotel in Newcastle, all slated to open in 2020.

2019 Asia Cruise Deployment and Capacity Report Released

Cruise Lines International Association (“CLIA”), the world’s largest cruise industry trade association, has released the 2019 Asia Cruise Deployment and Capacity Report. According to the report, 2019 will see a total of 1,917 sailings, generating capacity for four million passengers to cruise in Asia. This year’s total passenger capacity has declined by 5.7% year-on-year after several years of rapid expansion. The decline was mainly attributed to the reduction of short cruise itinerary options from mainland China. Nevertheless, it is anticipated that 2019 will see 79 ships from 39 cruise brands sailing in Asia, a similar level to last year. It is highlighted that 306 different destinations in Asia will receive cruise ships in 2019, an increase from the 288 destinations in the previous year, and port calls to Asia will remain steady with 7,154 calls this year. Asia is also likely to see a slight rise in passenger destination days, which is forecasted to be 13 million passenger days in 2019. This will translate to growth in potential onshore visits from cruise passengers and creating a stronger tourism impact for the destinations across the region.

Cebu Pacific Launched New Flights from Clark to Bacolod, Iloilo and Tokyo

Philippine-based low-cost airline, Cebu Pacific Inc., operating as Cebu Pacific (“CEB”), has launched three new routes from Clark International Airport hub on 9 August 2019. The routes include daily domestic flights to Bacolod and Iloilo in the Philippines, and four times weekly international flights to Tokyo in Japan. In addition, the airline has also revealed plans to provide daily flights between Clark and Palawan by the fourth quarter of 2019. The new routes will increase CEB’s present market share in Clark by 40% for 2019. With the expansion of network, CEB has captured 28% of all airline seats flying in and out of the hub, making it the largest carrier in Clark in terms of capacity by the end of 2019. Currently, CEB operates flights from Clark to four other domestic destinations (Cebu, Caticlan, Tagbilaran, Davao), and three other international destinations (Singapore, Macau and Hong Kong). 

China’s Domestic Tourism Revenue Continues to Grow in H1 2019

According to a report released by China Tourism Academy, domestic visitor arrivals is expected to grow by 8.8% to reach 3.08 billion in the first half of 2019, generating tourism revenue of RMB2.78 trillion, up by 13.5% over the same period of last year. Notably, domestic tourism registered year-on-year growth of 7.6%, 10.9%, 13.7% and 7.7% during the traditional public holidays, such as the Chinese Spring Festival, Tomb-Sweeping Day, May Day and Dragon Boat Festival respectively. Accordingly, tourism revenue during these occasions increased by 8.2%, 13.7%, 16.1% and 8.6% year-on-year. In 2018, domestic visitors who travelled to Red Tourism destinations recorded 660 million, accounting for 11.9% of total domestic tourists, with tourism revenue of RMB425.8 million accounting for 7.13% of total domestic tourism revenue. Favored by China’s booming economy, improved transportation and rising personal incomes, the domestic tourism market is expected to maintain steady growth in the second half of 2019.

Absolute Share Price Performance, as on 16 August 2019