Asia Pacific Hospitality Newsletter – Week Ending June 24, 2022

By on June 29, 2022 0

The Surrey Hills hotel in Sydney has been sold for A$30 million

Sydney’s Surrey Hills Hotel was acquired by an onshore hotelier for around AUD 30 million before opening its doors to guests, which translates to around AUD 789,473 per key for the 38-key property. Located at 202-210 Elizabeth Street in Surrey Hills, the six-storey building features two ground floor retail spaces, three outdoor terraces and a rooftop with views of Sydney CBD. This is Sydney’s first prefabricated wooden hotel that has been acquired by a local hotel operator. Sydney hotel occupancy and average rates have improved in recent months, and the sale reflects investor sentiment on the strong long-term fundamentals of the Sydney hotel market.

GIC and APG jointly acquire a major stake in The Student Hotel

Singapore-based sovereign group Government of Singapore Investment Corp (“GIC”) and Netherlands-based pension fund manager APG will jointly acquire a substantial stake in Netherlands-based The Student Hotel (“TSG”) from the Luxembourg company Aermont Capital LLP in the context of an agreement valuing TSG at 2.1 billion euros. TSG’s distinctive hybrid hospitality model, which combines student housing, hotel rooms and co-working, has proven effective even during the pandemic. TSG currently has over 10,000 rooms open or under development. With the commitments of GIC and APG, it is expected that TSH will be able to accelerate its growth strategy to expand in major European cities to 50 hotels out of the 25 it has today. .

Melbourne’s St Kilda Road office to be redeveloped into A$300m mixed-use hotel

Australian developer Orchard Piper and Australian Carter Group have planned to redevelop a six-storey office tower on Melbourne’s St Kilda Road into a 300 million Australian dollar hotel, spa and apartment building. The 2,400 square meter site will be transformed into a 17-story mixed-use tower, completed in 2026. A 108-key five-star hotel and spa will be housed on the lower ten floors, while above will be 55 apartments top of the line. . A mezzanine restaurant and bar and a street-level café will also be part of the mixed-use project. The motivation for a hotel-based project was the lack of short-term accommodation on St Kilda Road. This hotel will join Marriott’s 180 executive apartments at 472 St Kilda Road, also set to open in 2026.

Inauguration of a major new mixed-use center, Parc 1 in Seoul

Parc 1 is a $1.5 billion shopping complex featuring the largest mall in central Seoul, South Korea. Leonard Design Architects (“LDA”) designed the project in collaboration with Rogers Stirk Harbor + Partners (“RSHP”) with local co-architects Samoo Architects, Engineers and Siaplan Architects and Planners. The 630,000 square meter development includes Korea’s largest shopping mall operating as Hyundai Seoul, and two office towers 318m high and the other 246m high, which includes a luxury Fairmont hotel Ambassador Seoul. The development also has a sustainability agenda through its new city-wide transport integration. It features column-free open floor space to allow for efficient future changes, while embodied carbon in buildings is minimized through an efficient composite mix of steel and concrete structure.

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