Weekly Hotel Industry News Roundup from Asia Pacific
National Leisure And Gaming Acquires Iris Group's Hotels
Australia's hotel and gaming operator, National Leisure and Gaming (NLG), has acquired Iris Group's hotel portfolio of nine 45-year leasehold hotels and 240 poker machines for approximately US$78.8 million. This acquisition follows the merger between NLG and GSL Pub Operations Trust (GSL) for US$70.6 million and completion of the acquisition of Gaming Asset Management's (GAM) portfolio for US$56 million. The acquisition has increased NLG's asset portfolio to 39 hotels and over 1,000 poker machines, spread along the eastern coast of Australia. NLG is also expected to purchase the Moonee Beach Tavern in Coffs Harbour and Tacking Point Tavern in Port Macquarie for a combined US$4.7 million.
Credit Suisse To Invest US$50 Million in Park Hotels
Switzerland's Credit Suisse investment bank is expected to spend US$50 million to buy a 15% share in Park Hotels, a subsidiary of Apeejay Surrendra Group, based in Kolkata, India. This is part of the approximate US$993 million which Credit Suisse plans to invest in the real estate sector in India, as reported in January 2007. With this capital injection, Park Hotels plans to develop eight new hotels and expand its existing chain of hotels in Bangalore, Chennai, New Delhi, Mumbai, Kolkata, and Visakhapatnam in India.
Maldives Invites Malaysians To Participate In Island Resort Projects
The Maldives authorities have invited the Malaysian business and investing community to be involved in 40 island resort developments from 2007 to 2009. With an estimated 600,000 tourists visiting Maldives each year, the authorities are developing their infrastructure and tourism sector to provide better quality services and accommodation, thus fuelling the need for quality foreign contractors and suppliers. Inviting Malaysians to invest in the country comes naturally as Malaysia is Maldives' fourth largest trading partner and Malaysian contractors have completed five projects at a total cost of US$7 million in Maldives since 1997. These projects include airports, resorts and hotels.
Singapore's CDL REIT Sees Strong Demand In Fund Raising Effort
Singapore's City Development Limited Hospitality Trusts (H-REIT) has announced that its preferential offering of 107.2 million new units in the trust has been fully subscribed while another 13 million private placement units to institutional and other investors was about 24 times subscribed. The strong support from investors underlines the current strong performance of the hospitality sector in Singapore and investors' belief in the long-term growth potential of H-REIT. The trust is expected to raise approximately US$190 million, which will mainly be used to repay debts and for other general corporate and working capital purposes. The trust currently owns five hotels and one shopping arcade in Singapore and another hotel in New Zealand.
Malaysia's Resorts World Upgraded To 'Buy' on Star Cruises Stake Sale
MIMB Investment Bank has upgraded Malaysia-based casino operator, Resorts World Bhd (Resort World), from 'neutral' to 'buy', with its target price raised from US$1.09 to US$1.41 per share, after the company announced it will cut its stake in loss-making Star Cruises Ltd to 19.89%, making it a mere investment in its books. Resort World's wholly-owned unit, Resorts World Ltd, has accepted the offer by CMY Capital (L) Ltd, a local investment holding company, for the disposal of a 14.02% stake in Star Cruises for US$343 million. The proposed disposal, which is subject to regulatory and shareholder approvals, is expected to result in a net gain on disposal of US$91 million and is expected to conclude in the fourth quarter of 2007. Resorts World Bhd may invest in the Resorts World integrated casino resort project in Singapore with the excess cash arising from this divestment.
Japan's First St Regis Hotel To Open in Osaka In 2010
Starwood Hotels and Resorts has entered into an operating lease agreement with the management of the mixed-use development, Sekisui House, to house a 159-room newly-built St Regis Hotel at the intersection of Midosuji Avenue and Honmachi street, in the central business district of Osaka City, Japan. Scheduled to open in 2010, Japan's first St Regis Hotel will be situated between the 11th and 27th floors of the mixed-use development and will offer two specialty restaurants, a bar, a signature spa, over 4,500 square feet of function space, a wedding chapel, a roof-top garden and other facilities.
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