Ascott REIT, Ascendas merge: Singapore property giant Capitaland will combine Ascott Residence Trust (Ascott REIT) and Ascendas Hospitality Trust (A-HTrust) to make the largest hospitality trust in the Asia Pacific and the eighth biggest globally with a total asset value of S$7.6 billion (US$5.6 billion). The merger creates a portfolio of 88 hotels and serviced residential properties with more than 16,000 units in 39 cities and 15 countries across Asia-Pacific, Europe and the United States. The consideration for the proposed merger is about S$1.2 billion (US$885 million).
Okura moves into Russia: Hotel Okura will expand into the Russian market in 2022 with an eye toward operating five properties there within three years. Major Russian real estate company Aeon will develop the US$55.3 million, roughly 300-room hotel near Sheremetyevo International Airport, which serves Moscow, while Hotel Okura will operate the property. The basic agreement, signed on Saturday, comes as part of economic exchanges between the two countries led by the Japanese government.
Salamander to Jamaica: Salamander Hotels & Resorts, Middleburg, Virginia has been selected to manage the Half Moon resort in Montego Bay, Jamaica. Salamander was founded in 2005 by entrepreneur Sheila Johnson and now has a portfolio of six luxury hotels.
Mixed-use luxury for Jakarta: Jakarta is seeing a spate of integrated luxury hotel developments, a decided move away from freestanding 5-star hotels and an indication of a positive investment profile, according to a new report from C9 Hotelworks. The newly released report also states 86% of city’s hotel guests are domestic, so the Asian megacity that hosted more than 13 million guests has yet to capture a global audience. However, over a 10-year period the compound annual growth rate for global visitors hit 7.4%. C9 Hotelworks Managing Director Bill Barnett said it’s unclear if the new luxury pipeline will dramatically induce the overseas market, suggesting broader economic reforms are needed.
Riu grows in Zanzibar: Spain’s Riu Hotels & resorts has acquired a 190-room resort on Nungwi Beach, close to the Riu Palace Zanzibar. The new hotel will join the Riu Palace brand. Riu has also acquired five hectares of land where it plans to build a third hotel on the island. The total investment is US$56 million. With this deal, the chain now possess 12 hotels in Africa (five in Cape Verde and two in Tanzania), in addition to the five in Morocco.