Wednesday, May 29, 2024

AP Hospitality Bulletin Asia Pacific - May 2024

Anchi LIU

Transactions that matter.

1. Phoenix Seagaia Resort, Japan

  • Japan’s Sega Sammy would sell its Phoenix Seagaia Resort in Japan to US-based asset manager, Fortress Investment Group. Overlooking the Pacific Ocean in Miyazaki, Seagaia offers hotels, golf, MICE space, and other attractions. It is reported that the resort saw earnings for the first time in 13 years because of the strong tourism recovery in the nation.
  • Opened in 1993 by a local government-backed company, Seagaia was known for its large-scaled development with a total project cost of 200 billion yen (US$1.3 billion at current rates). Due to its remote location, the resort filed for bankruptcy in 2001 before being acquired by Ripplewood, which sold the resort to Sega Sammy in 2012. At that time, it was speculated that Sega Sammy planned to add a casino to the resort, but the plan seemed to have fallen through after over a decade.

2. Unizo HD Japan Hotel Portfolio, Japan

  • After KKR took over a set of 14 Unizo Hotels across Japan last year, KKR recently announced the partnership with Marriott to debut the Four Points Express by Sherton in Asia Pacific. Set to open in the second half of 2024, it will add more than 3,600 new rooms to KKR’s hospitality portfolio in Japan. The portfolio of 14 hotels spans 10 cities including Kyoto, Fukuoka, and Osaka.
  • Japan’s hospitality sector remains hot with increasing inbound visitors and upcoming World Expo in 2025. Recent transactions in Japan include Japan Hotel REIT taking over 1,053-key Hilton Fukuoka Sea Hawk for reportedly USD 421,000 per key from GIC and Star Asia Group’s acquisition of Tokyo-based hotel operator Minacia from Unison Capital Partners for an undisclosed sum. Minacia currently operates 39 limited-service hotels with over 5,000 rooms in major Japanese cities under serval brands, including Wing International and Tenza.

3. Hotel Ease Access, Hong Kong

  • The 119-key Hotel Ease Access at Lai Chi Kok, Hong Kong is sold to Crystal International Group for HKD 220 million (USD 28 million) or HKD 1.85 million (USD 236,000) per key. The property was put for sale at a market value of HKD 410 million in June 2023 after the recent refurbishment of the property in 2022.
  • The seller, the Tang family, has been divesting its hotel assets across the city. The 598-key Hotel COZi Harbour View in Kwun Tong is another asset that has been on the market for several months. Located at the second CBD, the asking price was HKD2.22 billion (USD284 million) or HKD 3.7 million (USD474,000) per key last year. With the return of inbound visitors, hotel performance in Hong Kong showed a gradual recovery, recording a RevPAR of HKD1,261 in 1Q24, approximately 5% lower than 1Q19.
Source: RCA

News that matters.


  • Over 1.48 million visitors to Singapore were recorded in March, boosted by Taylor Swift’s six shows and K-pop group Shinee’s one concert. China is the key feeder market accounting for 16%, followed by Indonesia (14%) and Malaysia (8%) during the period. Hotel performance also shows great recovery, recording a RevPAR of S$239 in the first three months of 2024, 14% year-on-year increase.
  • Working toward the 2040 tourism vision, the country continues to diversify its tourism offerings. While 2040 seems still some time away, the expansion for Changi Airport is under planning and set to be operational in mid-2030s. A new attraction, Porsche Experience Centre, is expected to open next to the Changi Exhibition Centre by 2027. Additionally, a wellness attraction would be developed at the Marina South precinct, which aims to cater to the growing wellness demand in the region.


  • Vietnam welcomed about 1.6 million international tourists in March 2024, recording a 4.4% month-on-month growth and 13.4% increase over the same month in 2019. Top feeder markets to Vietnam include South Korea (24%) and China (22%) in March. Overall, short-haul markets accounted for over three-quarters of the total monthly arrivals. In the first quarter, the revenue from accommodation and dining services reached about US$7 billion, showing significant recovery of the industry.
  • To boost the number of long-haul visitors to ASEAN, Thailand initiated to establish a joint-visa program that allows travellers to visit six countries, including Thailand, Cambodia, Laos, Malaysia, Myanmar, and Vietnam, with one visa. While it is still at early stage of discussion, Vietnam and the neighbouring countries are expecting to benefit from the program in the future.

Tourism Recovery in Asia Pacific

Vietnam remains the leader of tourism recovery in March, showing an 13.4% increase of travelers from the same month in 2019. Other leading countries, including Japan and Cambodia, surpassed their level of inbound travellers as well.

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