Weekly Hotel Industry Asia Pacific News Roundup from HVS

NIPPON REIT Acquires Five-Property Portfolio Including Two Hotel Assets for Approximately JPY17.4 Billion in Japan

SBI REIT Advisors Co., Ltd. (“SRA”), the asset manager for Japan-based NIPPON REIT Investment Corporation (“NIPPON REIT”), has announced the acquisition of five properties for an estimated total of JPY17.4 billion. The portfolio includes two hotels, two office buildings, and one urban industrial asset. The hotel assets, 132-key Hotel Resol Stay Akihabara and 190-key Smile Hotel Premium Hakodate Goryokaku, will be acquired from Japan-based The Sankei Building Co., Ltd. for JPY6.25 billion and JPY2.70 billion, respectively. This equates to approximately JPY47.3 million per key for the Tokyo hotel and JPY14.2 million per key for the Hokkaido hotel. Completed in 2021, Hotel Resol Stay Akihbara is a 13-storey property with a gross floor area of approximately 3,533 square metres (“sqm”). Situated in Chiyoda ward, Tokyo, the property is within 3-minute walk from both JR Akihabara Station (JR East Line) and Iwamotocho Station (Toei Shinjuku Line). The Smile Hotel Premium Hakodate Goryokaku was completed in 2020 and has a gross floor area of approximately 5,043 sqm across 9 storeys. Located in Hakodate City, Hokkaido, it is approximately a 3-minute walk from Goryokaku-Koen-Mae Station on the Hakodate City Tram Yunokawa Line. These acquisitions mark NIPPON REIT’s first foray into hotel assets. 

The Henry Boutique Hotel and Serviced Residence Acquired for Approximately HKD185 million in Hong Kong

The Henry, a boutique hotel and serviced residence located at 322–324 Des Voeux Road West in Sai Ying Pun, Hong Kong, has been sold to an undisclosed buyer for approximately HKD185 million, which equates to around HKD5.44 million per key. The 34-key property spans roughly 2,220 square metres across 24 storeys. The building layout includes a ground-floor retail unit currently tenanted by Starbucks Coffee, a concierge room, meeting room, storage space on the first floor, back-of-house facilities on the third floor, and guest rooms occupying the upper levels. The 999-year leasehold site is approximately a five-minute walk from both Hong Kong University and Sai Ying Pun MTR stations on the Island Line, providing direct connectivity to the Central Business District of Sheung Wan and Central. The transaction marks the buyer’s first acquisition in Hong Kong, with plans underway to reposition the property as student accommodation. 

ECMLG Divests Tune Hotel George Town Penang and Adjoining Freehold Land for Approximately MYR51.9 Million in Malaysia

ECML Hotels Sdn Bhd, a wholly-owned subsidiary of Malaysia-based ECM Libra Group Bhd (“ECMLG”) is divesting the 258-key Tune Hotel George Town Penang together with the adjoining freehold land to Malaysia-based Wealthpro Holdings Sdn Bhd for approximately MYR51.9 million. This translates to approximately MYR201,000 per key. Acquired in 2018 for MYR21 million, the hotel had a book value of MYR22.9 million as at 31 December 2024. This translates to a gain of MYR29.0 million before deducting estimated taxes and expenses of MYR4.3 million for ECMLG. The property and the adjoining freehold land spans approximately 2,053 square metres (“sqm”). Tune Hotel George Town Penang has a gross floor area of approximately 8,884 sqm across 11 storeys, offering facilities such as a TV Lounge, meeting rooms, and internet stations. It enjoys a prime location next to New World Park and is approximately a 34-minute drive to Penang International Airport. The transaction is expected to complete in the first quarter of 2026. 

MYR5 Billion Integrated Development To Launch in Johor Bahru, Malaysia in 2030

Coronation Square, a MYR5 billion mixed-use development developed by Malaysia-based Coronade Properties Sdn. Bhd. in Johor Bahru’s Ibrahim International Business District, is set to become a flagship project within the Johor–Singapore Special Economic Zone (JS-SEZ). Covering 3.9 hectares, the development will feature a mix of hospitality, medical, office, and residential components across six high-rise towers, anchored by a 1.2-million-square-foot retail mall. Construction of the mall is scheduled to commence in 2026, with completion expected by 2030. The development will be directly connected to the forthcoming Rapid Transit System (“RTS”) station at Bukit Chagar and the customs checkpoint via a 210-metre elevated walkway, providing seamless cross-border accessibility. The Ascott Limited, subsidiary of Singapore-based CapitaLand Investment Ltd., has been appointed to manage the hotel component within Tower 1 of Coronation Square, which will consist of 207 keys and is set to open in 2029. 

EVT Acquires Pro-Invest Hotels for New Hotel Management Division

EVT Connect Hospitality, a newly launched division of Australia-based conglomerate EVT Limited (“EVT”), has announced the acquisition of Pro-Invest Group’s hotel management company, Pro-Invest Hotels, for an undisclosed sum. The acquisition includes the long-term hotel management agreements for 15 hotels across Australia and New Zealand, totalling approximately 3,200 rooms. These properties will continue to operate under their existing third-party franchise brands, including those under UK-based IHG Hotels & Resorts and France-based Accor. Going forward, operations for the 15 hotels will be managed by EVT Connect Hospitality. However, Pro-Invest Group will retain asset management responsibilities for the properties, which are held under its three hotel investment funds through its fund management platform. This transaction marks EVT’s debut into third-party hotel management, expanding its hotel management footprint. 

HVS is the world’s leading consulting and valuation services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. Established in 1980, the company performs more than 4,500 assignments per year for virtually every major industry participant. HVS principals are regarded as the leading professionals in their respective regions of the globe. Through a worldwide network of over 50 offices staffed by 300 experienced industry professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. For further information regarding our expertise and specifics about our services, please visit www.hvs.com.