HOTELS & TOURISM | Staff Reporter, Hong Kong

Total SEA transaction volume in hotel investments climbs 36%

This covers the past nine months.

Hotel investment activity in South East Asia remained quiet over Q3/2014.with a few deals still in their closing stages.

According to a report from Savills, however, the total transaction volume in South East Asia for the past 9 months was registered at US$1.03 billion, up 36% from the same period of last year.

Serviced apartment investment has increased in popularity in South East Asia with two branded serviced apartments sold in Malaysia and Thailand: Somerset Ampang Kuala Lumpur with a transacted price of US$52.8 million; and Oakwood Apartments Trilliant Bangkok for an undisclosed price.

The report said that a notable single asset transaction was the sale of the 30-rai beachfront Movenpick White Sand Beach Pattaya in Thailand for THB858.9 million (US$26.5 million) and THB3.3 million (US$100,402) per room.

This was sold by Apex Development to local buyer Pornthep Pronprapa. Hawaii-based Outrigger Enterprises Group has purchased the Konotta Island Resort situated in the Gaafu Dhaalu Atoll of the Republic of the Maldives from Crystal Lagoon Pvt Ltd for an undisclosed price.

Here’s more from Savills:

Following a property renovation, the hotel is expected to open as the Outrigger Konotta Maldives Resort in July 2015.

There were few major hotel transactions recorded in Singapore for the reviewed quarter. Notwithstanding, China’s Nanshan Group - which is involved in diversified businesses ranging from aluminium and golf courses to education and wine - is said to be in negotiations to buy a 396-room hotel in Midlink Plaza on Middle Road on a completed basis.

Talk in the market is that a price of about S$270 million is being discussed.

The site, which has a balance lease term of about 65 years, is being redeveloped into a hotel with some strata retail space.

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