Rejection, for now: Radisson Hospitality has rejected an offer for additional shares from a consortium (led by Jin Jiang International Holdings Co., including SINO-CEE Fund, through the joint acquisition vehicle Aplite Holdings AB) for of SEK$40 (US$5) in cash per share. In November, Jin Jiang completed the acquisition of 87.5 million shares, some 50% of the shares and votes in the company. The completion of the acquisition triggered an obligation for the consortium to launch a mandatory public offer for Radisson’s remaining outstanding shares. Factors for the rejection include Radisson’s present strategic and financial position, the company’s expected potential future development and thereto related opportunities and risks.
A big deal in Queensland: One of Australia’s largest private hotel investors, Jerry Schwartz, has entered into Queensland with the A$70 million (US$49 million) purchase of the 5-star Hilton Surfers Paradise from the Chinese group, Ja Feng. The deal is expected to settle in May 2019. The hotel will be Schwartz’s 14th hotel in Australia. It joins 11 hotels in NSW – including Sydney’s first international five-star hotel since 2000, the Sofitel Sydney Darling Harbour – and one each in the ACT and Victoria. The Hilton Surfers Paradise is one of the Gold Coast’s newest luxury hotels, with Schwartz’s purchase including the 169-room hotel and management rights for 220 apartment-style residences.
Blackstone acquiring: Blackstone Group has received the approval of the lenders of bankrupt Golden Jubilee Hotels to acquire the Hyderabad-based hotel firm, which was pushed into the limelight after hosting Ivanka Trump last year, according to sources with direct knowledge of the development. This is the first deal where international institutional capital will be coming in for the financial resolution of any company under the Insolvency and Bankruptcy Code (IBC).
Court strikes down Seattle hotels measure: The Washington State Court of Appeals has struck down a ballot measure passed in 2016 that required certain sized hotel-employers in Seattle to further protect employees against assault, sexual harassment, and injury by retaining lists of accused guests among other measures; improve access to healthcare; limit workloads; and provide limited job security for employees upon hotel ownership transfer. In American Hotel & Lodging Association, et al. v. City of Seattle, et al., the Appeals Court ruled unanimously that the ordinance violated Washington State’s Single Subject rule and that the blacklisting provision included in the initiative was unconstitutional and stripped both associates and guests of their due process rights. The AHLA issued this statement:
“This week’s ruling is welcome news for hotel owners and operators not only in Seattle, but throughout the country, setting an important legal precedent. The hotel industry is an industry of people serving people, and the safety and security of our employees and guests is of paramount importance. We take any allegation of sexual harassment or misconduct extremely seriously, and we are committed to ensuring a safe and healthy workplace for all team members, as evidenced by the 5-Star Promise which was announced in September. But the flaws contained in this measure were too significant to go unchallenged.”
Phuket on the rise: Phuket’s increasingly prolific meetings, incentives and exhibitions market nearly doubled in year-on-year growth in 2017. As revenue for the segment skyrocketed from US$182 million to a record-high US$334.4 million, the key metric that reflects the economic impact is the average spend of US$398.78 per person. Looking at the size of the market, a new report from consulting group C9 Hotelworks Phuket MICE Market Update revealed that for the full year, the island hosted 660 events with close to 60,000 participants. With overseas demand becoming increasingly prolific throughout Thailand, the top three international geographic source markets are Singapore, Mainland China and India.
Click here to download and read the full report
Dusit signs deal in China: Thai-based Dusit International, represented in China by Dusit Fudu Hotels and Resorts, has signed a management agreement with Tengchong Zongheng Volcano Tourism Development Co. to manage Dusit Devarana Hot Springs Resort Tengchong, Yunnan. The resort’s key feature will be the outdoor hot springs experience providing a choice of therapeutic, aromatic, splash and foot reflexology pools. The property is slated to open in 2021.
Bhd drops stake in TPC: Kuala Lumpur-based Berjaya Land Bhd is disposing of its 75% stake in TPC Nghi Tam Village (which operates the international 5-star hotel Intercontinental Hanoi West Lake Hotel) to Hanoi Hotel Tourism Development Limited Liability Company for RM222.18 million (US$56 million).