Asia Pacific Hospitality Newsletter - Week Ending 21 June 2024

Kasumigaseki Capital Acquires Hotel and Land in Japan for Future Hotel Development

Japan-based Kasumigaseki Capital Co., Ltd. (“KC”) subsidiary fav hospitality group announced on 30 May 2024 regarding its acquisition of a business hotel with a Gross Floor Area of 3,273.05 square metres (“sqm”) and its underlying land plot of 825.13 sqm in Fukuoka City. KC intends to rebrand the business hotel under their brand FAV HOTEL, and it is expected to open in 2025. KC also announced on 31 May 2024 regarding their acquisition of an approximately 940 sqm development site in Ise City for the group’s hotel brand. The seller and transaction price for both acquisitions remain undisclosed.

Star Asia Group Acquires Japan-based Hotel Operator Minacia from Unison Capital

Japan-based Star Asia Group has agreed to acquire the Japan-based budget hotel operator Minacia from Japan-based Unison Capital, Inc. (“Unison Capital”) for an undisclosed sum. Minacia currently operates 39 properties across major Japanese cities under various brands such as Wing International and Tenza, totalling 5,180 keys. This agreement follows Star Asia’s previous acquisition of a majority equity stake in Japan-based hotel operator Polaris Holdings in 2018. Polaris Holdings currently operates 50 hotels in its portfolio with a total key count of 8,958 rooms.

Malaysia Extends Visa-exemption for Chinese travelers until the End of 2026

The Malaysian government announced on 21 June 2024 that it will be extending the 30-day visa exemption for Chinese travellers until the end of 2026. This follows the initial announcement of a 30-day visa exemption for Chinese travellers by Malaysia in November 2023. It is believed the scheme will encourage more Chinese travellers to visit Malaysia and help achieve the tourism target of 35.6 million tourists and MYR 147 billion in receipts. Similarly, in May this year, China extended its visa-free visitation policy for Malaysian travellers until the end of 2025 and increased the visa-free duration from 15 days to 30 days.

Capital Property Group Announces Mixed-use Development in Canberra’s City-Business District

Australia-based Capital Property Group (“CPG”) has announced its intention to develop a four-tower, 65,000 square metres project in Canberra’s city-business district at the corner of London Circuit and Northbourne Avenue. Of the four towers, one will likely be a mixed-use boutique hotel and residential property, whilst the remaining three will be dedicated to commercial offices. The project is expected to cost an estimated AUD 350 million, excluding land costs, which CPG acquired from the Australian Capital Territory (“ACT”) government.

South Korea to Expand Cruise Industry Through Construction of a New Wharf and Maritime Passenger Terminal

The South Korean government announced their commitment to expanding South Korea’s cruise industry on 17 June 2024. The Ministry of Culture, Sports, and Tourism and the Ministry of Oceans and Fisheries are collaborating to open a new wharf in North Jeolla’s Saemangeum industrial complex by 2026 and will begin the construction of a maritime passenger terminal in Mukho Port in Donghae, Gangwon. This is aimed at achieving an annual 1 million tourists and annual tourism receipts of KRW 279.1 billion through cruise tourism by 2027.