The organizers of the annual Hotel Investment Conference
Asia Pacific (HICAP), are pleased to announce the finalists for the HICAP Deal
of the Year Awards in the categories of Reggie Shiu Development of the Year,
Merger & Acquisition of the Year, and Transaction of the Year. The awards
will be presented at the 30th annual HICAP held 23-25 October 2019 at the Kerry
Hotel Hong Kong.
Finalists for the Reggie Shiu Development of the Year Award
are:
citizenM Kuala Lumpur Bukit Bintang, Kuala Lumpur, Malaysia
Converted from a 30+ year-old office building, the 210-room
CitizenM successfully balances introducing a modern hotel concept into a
culturally diverse and historic district while incorporating the charm and
improving the identity landscape of the area. Gutting the entire building was
needed to reconfigure the floor layouts and install new equipment and systems
to fit the CitizenM ID package into the existing building shell. The resulting
marriage of technology with efficient room design (18sqm) yields an attractive
return on investment via maximizing a limited footprint to its full potential,
while edgy and localized interior design accents the hotel’s quirky nature.
Owner: Cornerstone Partners Group
Operator: citizen IP Holdings
Architecture: Akitek Akiprima
Conceptual Design: Concrete Amsterdam
Designer: Blu Water Studio
Development Cost: USD40 million
Shinta Mani Wild, Cardamom National Park, Cambodia
Situated in the heart of Cardamom National Park (Cambodia),
15 tents are spread generously along the Tmor Rung Riverbank across 600 acres,
so guests feel as if they are the only ones for miles. Designed as a “utopia of
sustainability”, with low impact on the land, whilst helping provide a
sustainable source of employment for locals with few choices in the area. Also,
home to a research and conservation centre, run hand in hand with the Wildlife
Alliance. Guests are taught about the local flora and fauna by on-site
naturalists and join the Wildlife Alliance on patrol, putting them on the front
lines of conservation in Cambodia.
Owner: Bill Bensley & Sokoun Chanpreda
Operator: Shinta Mani Bensley Collection
Architecture and Interiors: Bensley Design Studios
Development Cost: USD15 million
YOTELAir Singapore Changi Airport, Singapore
This 130-cabin new generation airport hotel utilizes smart
innovation and design-efficiency in space planning and programming to fit an
ensuite bathroom, reclining queen size SmartBed and stow-away desk into a 10
sqm space – providing transient travellers with everything they need and
nothing they don’t. By automating the check-in/out process and utilising robots
for guest services, labor costs are reduced (staff to room ratio = 0.18) while
creating a unique guest experience. With the declining trend in retail sector
yields, YOTELAir’s operating model presents retail real estate owners with a
viable and sustainable option to traditional lease income and boosting
investment yield (GOP margins in excess of 50%).
Owner: Changi Airport Group/CapitaLand
Operator: YOTEL Limited
Architecture: Safdie Architects, RSP Architects Planners
& Engineers Pte Ltd
Designer: Swan & Maclaren
Development Cost: N/A (part of SGD1.7 billion Jewel Changi
Airport project)
Finalists for the Merger & Acquisition of the Year Award
are:
NH Hotel Group, S.A. (NH Hotels) acquisition by Minor
International PCL (MINT)
Minor International PCL (MINT), won NH Hotel Group in a
takeover battle against big players at an EV/EBITDA multiple significantly
lower than comparable transactions, without paying a control premium. The
success derived from MINT’s ability to leverage its versatile and agile
organization to fuel a tactical plan that effectively dominated and guided the
outcome. MINT deployed a wealth of M&A tools during the transaction, including
undisclosed retail-lot accumulation, strategic block trade (hedge fund stake),
conditional purchase agreements (Chinese group), active campaigns through
tender announcement, forward purchase public announcement and target
engagement. The deal size was €2.5 billion, an accretive deal considering
geographic diversity of NH’s portfolio of hotels.
Radisson Hotel Group acquisition by a Consortium Led by
Shanghai’s Jin Jiang International Holdings
A consortium led by Shanghai's Jin Jiang International
Holdings completed the acquisition of the Radisson Hotel Group from the HNA
Group. There were 2 phases to this transaction. In the 1st phase the consortium
acquired the Radisson US from the HNA Group. The 2nd phase involved a public
takeover of Radisson Hospitality (which primarily holds the European and
international businesses) in Sweden. The takeover offer was structured as a
mandatory bid. Baker McKenzie represented the consortium on this transaction.
The outcome of the 2nd phase of the transaction was announced on 5 February
2019 and the consortium now holds 94.12 percent of the shares in Radisson
Hospitality, which has now been delisted.
Six Senses Hotels Resorts Spas acquisition by
InterContinental Hotels Group (IHG)
InterContinental Hotels Group (IHG®) announced on 13
February 2019 the acquisition of Six Senses Hotels Resorts Spas, one of the
world’s leading operators of luxury hotels, resorts and spas. The USD300
million cash acquisition from Pegasus Capital Advisors included all of Six
Senses’ brands and operating companies and did not include any real estate
assets. At the time of the acquisition, Six Senses managed 16 hotels and
resorts, with 18 management contracts signed into its pipeline, and more than
50 further deals under active discussion. Properties are in locations such as
the Maldives, the Seychelles, Yao Noi in Thailand, Zighy Bay in Oman, and
Portugal’s Douro Valley.
Finalists for the Transaction of the Year Award are:
InterContinental Samui Baan Taling Ngam Resort, Koh Samui,
Thailand
The Intercontinental Samui Baan Taling Ngam Resort is one of
the first luxury resorts built on Koh Samui. Perched atop Baan Taling Ngam’s
dramatic cliff, the property was featured in The New York Times Bestseller’s
1,000 Places to See Before You Die for the most beautiful sunset. The resort
was sold with the benefit of management from InterContinental Hotels Group, one
of the world’s largest hotel operators. The purchaser is a Thai high net worth
family, marking their first acquisition into the hotels industry. The
transaction recorded the highest price per key for hotels traded outside of
Bangkok in Thailand.
Substantial Stake in Baillie Lodges, Australia
On 1 April 2019, KSL Capital Partners completed a
substantial investment ($100m+) in Australia’s leading luxury lodge owner and
operator, Baillie Lodges. Including Southern Ocean Lodge, Longitude 131° and
Capella Lodge, the iconic portfolio represents Australia’s finest collection of
luxury lodges offering access to signature Australian experiences in irreplaceable
natural locations. Both parties see a strong alignment in their complimentary
skill sets and share a vision to grow the platform via selectively adding new
assets that deliver on the Baillie Lodges hallmark of relaxed ‘barefoot’
experiential luxury. An example of this focus on growth can be seen in the
recent acquisition of Silky Oaks Lodge, which will undergo an extensive
refurbishment in 2020.
Sydney & Canberra Hotel Portfolio, Australia
In February 2019, AXA Investment Managers – Real Assets
acquired the Sydney & Canberra Hotel Portfolio, which included the Pullman
at Sydney Olympic Park, Novotel & Ibis Sydney Olympic Park, and the Novotel
Canberra, for AUD330.4 million from Pearl Hotels. JLL Hotels & Hospitality
Group and Savills Hotels were retained on a joint exclusive basis. This
transaction was one of the largest hotel transactions in Australia in recent
years. The Sydney Olympic Park assets are the major accommodation offerings
within the world-class mixed-use precinct situated in Sydney’s geographical
centre and feature a total of 218 (Pullman) and 327 (Novotel/Ibis) guest rooms
respectively, offering a strategic mix across 3.5, 4.5 and 5-star market
positioning. The Novotel Canberra occupies a commanding position in the heart
of the Canberra CBD on Northbourne Avenue – the city’s main thoroughfare – and
offers 286 keys. The hotel is in close proximity to the city’s major demand
generators and a multitude of restaurants, retail options, and entertainment
venues. The Portfolio was publicly offered for sale individually or
‘in-one-line’, with extensive investor interest originating from a range of
buyer types out of Hong Kong, Singapore, Thailand, and Australia, whilst the
successful purchaser of the Portfolio, AXA, hailed from France.