Weekly Hotel Industry Asia Pacific News Roundup from HVS

Star Group to Divest 50% Stake in Queen Wharf’s Brisbane Development to Far East and Chow Tai Fook in Brisbane, Australia

Australia-based The Star Entertainment Group Limited (“Star Group”) will divest its 50 percent interest in the Queen Wharf’s Brisbane development (“QWB”) to its existing joint venture partners, Hong Kong-based Far East Consortium International Limited (“Far East”) and Hong Kong-based Chow Tai Fook Enterprises (“Chow Tai Fook”), for AUD53 million. Following the completion of the transaction, the ownership of Destination Brisbane Consortium, originally held 50-25-25 by Star Group, Far East and Chow Tai Fook, will now be held 50-50 by Far East and Chow Tai Fook. Under the terms of the new agreement, Star Group will continue to manage the casino for a monthly fee until March 2026. The agreement also includes the transfer of Star Group’s Brisbane Treasury Hotel, Treasury car-park and 50 percent interest in the Charlotte Street car park to the joint venture, while Star Group will assume full control of its Gold Coast holdings, which is two-thirds ownership of the under-construction Dorsett and Andaz hotels.  

Goldfields Group Acquires Quality Resort Sorrento Beach for AUD30 Million in Australia

Goldfields Group Holdings Pty Ltd (“Goldfields Group”), an Australia-based property developer, has acquired Quality Resort Sorrento Beach (“Sorrento Beach Resort”). While the price was not disclosed, it is understood from market sources that the property was sold at approximately AUD30-31 million. Situated in Sorrento, Western Australia, the property occupies an approximately 9,000 square metres large landholding with a 115-metre frontage along the West Coast Highway. The acquisition follows a two-year effort to amalgamate 81 individually owned short-stay strata lots, comprising a mix of one-, two-, and three-bedroom apartments and studio units. Existing resort amenities include an outdoor swimming pool, spa, sauna, barbecue area, boardroom, conference room, and parking lots. Goldfields Group has indicated plans to enhance the asset through immediate value-add initiatives, including a potential ground floor renovation and the introduction of a restaurant and bar offering. In the interim, the group will continue operating the property under its current branding. 

Hanwha Hotels & Resorts Acquires Paraspara Seoul for KRW30 Billion in South Korea

Hanwha Hotels & Resorts Co. Ltd (“Hanwha Hotels & Resorts”), a subsidiary of South Korea-based Hanwha Group, has acquired the 334-key Paraspara Seoul for KRW30 billion from Bukhansan Resort, an affiliate of South Korea-based Samjeong Company and under the umbrella of the Lupentis Consortium. This translates to approximately KRW89.8 million per key. The purchase price represents around a 92 percent discount to the hotel’s market value, with the property holding a debt of over KRW390 billion. Situated on Mount Bukhansan and opened in August 2021, the hotel features a wide range of facilities including three food and beverage outlets, a sauna, a fitness centre, pools and jacuzzi, a figure museum and meeting and event spaces. The Property has been rebranded to ANTO, a new in-house luxury brand of Hanwha Hotels & Resorts since the acquisition. 

Ichigo Hotel to Divest Comfort Hotel Suzuka for JPY430 Million in Japan

Japan-based Ichigo Hotel REIT Investment Corporation (“Ichigo Hotel”), a hotel-focused Japanese Real Estate Investment Trust (“J-REIT”), has signed an agreement to sell the Comfort Hotel Suzuka to an undisclosed Japan-based buyer for JPY430 million. This translates to approximately JPY4.1 million per key for the 105-key property. The freehold property, located in Mie Prefecture, sits on an approximately 553-square-metre (“sqm”) site and comprises approximately 2,187 sqm of floor area across six storeys. Built in 2007, the hotel is a five-minute walk from Shiroko Station on the Kintetsu-Nagoya Line, offering regional connectivity. The transaction represents a JPY155 million premium over book value and is expected to generate a gain on sale of JPY130 million. The property is currently under a fixed-rent lease agreement with a monthly rent of JPY2,573,833. 

Mercure Clear Mountain will Undergo an AUD4 Million Rebrand to Peppers Brand in Brisbane, Australia

Australia-based hotel management company, Mandala Hotels and Resorts, has announced a AUD4 million rebranding of the 51-key Mercure Clear Mountain Lodge, which will be relaunched as Peppers Clear Mountain. The rebranding works will involve the enhancement of guest suites that boast panoramic mountain views, the introduction of purpose-built venues tailored for weddings and corporate events, new restaurant and bar, and an expansion of private dining experiences. Additional upgrades will include improvements to the existing spa facilities and the addition of new leisure facilities such as a dedicated billiard room. This strategic repositioning seeks to elevate the overall guest experience and align the property more closely with Peppers’ brand standards. Nestled in the City of Moreton Bay, the retreat offers a tranquil escape just a 40-minutes’ drive from Brisbane’s International Airport.  

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