Asia Pacific Hospitality Newsletter - Week Ending 12 July 2024

Loadstar Subsidiary Borrows JPY 17 Billion to Acquire Six Hiramatsu Hotels

Japan-based Loadstar Capital K.K. (“Loadstar”) announced its plans to invest in LD1 Godo Kaisha through tokumei kumiai investments to make it a consolidated subsidiary of Loadstar. This subsidiary would then acquire six hotels operated by Hiramatsu, Inc. (“Hiramatsu”) from undisclosed sellers. The purchase and sales agreements have been concluded and Loadstar have announced that LD1 Godo Kaisha will be borrowing a total of approximately JPY 17 billion from three different banks to fund this acquisition. Hiramatsu currently operates seven hotels across Japan with a total of 135 keys. 

ARA US Hospitality Trust REIT Managers Bought Out by Tang Family

Singapore-based Acrophyte Pte. Ltd., formerly known as Chip Eng Seng Corporation Ltd., has acquired a 100% stake in each of the two companies that manage Singapore-based ARA US Hospitality Trust REIT (ARA-H) from Singapore-based ARA Asset Management. The company, which was owned by investors Gordon and Celine Tang, will be the REIT’s new sponsor. Discounting the two Hyatt-branded hotels that the REIT announced it would be selling in May 2024, ARA-H has 33 properties in its portfolio worth over SGD 700 million. 

AirAsia Announces New Direct Route between Kuala Lumpur, Malaysia and Labuan Bajo, Indonesia

Malaysia-based low-cost carrier AirAsia has announced its newest route between Malaysia and Indonesia, offering direct flights between Kuala Lumpur and Labuan Bajo three times a week. Labuan Bajo is the gateway to the nearby UNESCO World Heritage Site, Komodo National Park. It offers natural scenery spots such as Pink Beach and Waecicu Beach, and provides a world-class diving experience. Official flights for the route begin on 3rd September 2024.

Hilton Partners with SLH to Add nearly 400 New Luxury Hotels to its Portfolio

US-Based Hospitality company Hilton Worldwide Holdings Inc. (“Hilton”) have partnered with UK-based Small Luxury Hotels of the World (“SLH”) to allow the nearly 400 properties in SLH’s collection to be available for booking on all of Hilton’s direct booking channels. In effect, this expands Hilton’s global luxury hotel portfolio by approximately 400 unique boutique hotels. Currently SLH network includes boutique hotel brands such as Hong Kong-based Ovolo Hotels, and other independent hotels such as the 50-key The Barracks Hotel, Singapore, and the 150-key The Tokyo Station Hotel, Japan.