HVS Monday Musings: Can the Hotel Lease Model Gain Momentum in India?

By Mandeep S Lamba and Dipti Mohan

Hotel leasing has been a slow starter and is not a preferred model with operators in India. However, this could change with revenue share leases gaining traction. Read on to know more.

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Mitsubishi Estate and Lendlease Group Acquired Two-Tower Project in Circular Quay

Japan-based Mitsubishi Estate (“ME”) and Australia-based Lendlease Group (“LG”) have joint-venture to acquire the Two-Tower Project in Circular Quay from UAE-based AW Holdings (“AH”) for about AUD800 million. The Two-Tower Project has changed ownership several times over the past 7 years, China-based Wanda Group (“WG”) started the project back in 2014 and changed to Yuhu in 2017 then was eventually acquired by AH in 2018. ME will start with an initial stake of 19.9% in the joint venture and will lift its stake to 66.7% with LG reducing its interest to 33.3% upon meeting certain conditions. The development of the project will commence immediately by LG, featuring a 59 storeys luxury residential tower and a 220 keys luxury hotel. 

Gambaro Hotel Brisbane was Acquired by the Australian Rugby League Commission for AUD25 Million

Australia-based Australian Rugby League Commission (“ARLC”) has acquired Brisbane’s Gambaro Hotel from the Gambaro family for more than AUD25 million. Fully-refurbished and reopened in 2014, the 68-key property is located on Caxton Street which is two minutes away from the Suncorp Stadium. The property features four food and beverage outlets and multiple meeting spaces. The property has always been the preferred place to stay during major events at the nearby Suncorp Stadium. Furthermore Brisbane is benefited from the ongoing infrastructure projects and the materiality of the both Olympics and Women’s World Cup Football Events. 

Penang’s Former Mutiara Beach Resort to Rebrand into an Intercontinental Property

THR Hotel (Penang) Sdn Bhd, a subsidiary of the Malaysia-based Tradewinds Corporation Berhad has partnered with UK-based IHG Hotels and Resorts to transform the former Penang Mutiara Beach Resort into the Intercontinental Penang Resort. The hotel that was previously closed in 2006 will first be renovated and open its door in 2025. The new luxury resort will feature 355 rooms and suites, six villas, three swimming pools, five food and beverage outlets, 1,000 square metres of meeting and event space, a wellness village with ten treatment villas, and the renowned Club InterContinental Lounge that offers views of the Straits of Malacca. The partnership aligns with the Penang2030 vision and Penang Tourism Master Plan to elevate Penang’s tourism industry. The revitalisation plan also shows confidence in the Penang tourism sector.

Air Canada to Launch Direct Flight from Vancouver to Bangkok

Canada-based Air Canada is launching its first non-stop service from Vancouver to Bangkok, Thailand this winter. This will be the first and only one non-stop service between North America and Thailand at the moment. Thailand is a popular leisure destination for many Canadians, and this direct flight service will give customers a seamless experience and choice when travelling. The direct service will be operated four times a week. Air Canada will also resume seasonal service from Vancouver to Auckland, New Zealand and put additional flights to Sydney and Brisbane, Australia in response to the pent-up demand when more international borders are opening-up in Asia.

Absolute Share Price Performance, as of 15 July 2022

For the latest in the hospitality industry, please visit: http://www.hvs.com/. You are also welcome to contact the following personnel. 

Hok Yean Chee, Regional President – HVS Asia Pacific hychee@hvs.com

Mandeep S. Lamba, President, South Asia – HVS Anarock mlamba@hvs.com

Mei Leng Ho, Senior Vice President – HVS Singapore mlho@hvs.com

Florian Kittler, Managing Director – HVS Executive Search Europe & Asia Pacific fkittler@hvs.com

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