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HVS Monday Musings: Will Travel Defy Inflation?

By Mandeep S Lamba and Dipti Mohan

Soaring inflation may dampen the hotel industry’s recovery in the near term, but there are some bright spots. Read on to know more.


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Surrey Hills Hotel in Sydney was Sold for AUD30 Million

Sydney’s Surrey Hills hotel was acquired by an onshore hotelier for approximately AUD30 million before opening its doors to customers, which translates to around AUD789,473 per key for the 38-key property. Located at 202-210 Elizabeth Street in Surrey Hills, the six-storey property comprises of two ground floor retail spaces, three outdoor terrace areas and a rooftop with views of the Sydney CBD area. This is Sydney’s first prefabricated timber hotel that was acquired by a local hotel operator. Sydney’s hotel occupancy and average rate has been improving in the past few months, and the sale was a testament to investors’ view of the strong long-term fundamentals of Sydney’s hotel market.

GIC and APG Jointly Acquire Major Stake in The Student Hotel 

Singapore-based sovereign wealth group Government of Singapore Investment Corp (“GIC”) and The Netherlands-based pension fund manager APG will jointly acquire a substantial stake in The Netherlands-based The Student Hotel (“TSG”) from Luxembourg-based Aermont Capital LLP in a deal that values TSG at EUR2.1 billion. TSG’s distinctive hybrid hospitality model which combines student accommodation, hotel rooms and co-working has been proven to be successful even during the pandemic time. TSG currently have more than 10,000 rooms open or under development. With GIC and APG’s commitments, it is expected TSH will be able to accelerate its growth strategy to expand into key European cities to 50 hotels from 25 hotels under ownership today.

Melbourne’s St Kilda Road Office to Redevelop into an AUD300 Million Hotel Mixed-use

Australia-based developer Orchard Piper and Australia-based Carter Group has planned to redevelop a six-storey office tower on Melbourne’s St Kilda Road into a AUD300 million hotel, spa and apartment building. The 2,400 square metres site will be transformed into a 17-storey mixed-use tower, completing in 2026. A 108-key five-star hotel and a spa facility will be housed on the lower ten floors, while above will be 55 upmarket apartments. A mezzanine restaurant and bar, and a street-level café will be also part of the mixed-use project. The motivation for a hotel-anchored project was the lack of short-stay accommodation on St Kilda Road. This hotel will join the 180-key Marriott Executive Apartments at 472 St Kilda Road, which is also due to open in 2026.

Major New Mixed-Use Centre, Parc 1 is Opened in Seoul

Parc 1 is a USD1.5 billion commercial complex development featuring the largest shopping centre in central Seoul, South Korea. Leonard Design Architects (“LDA”) have designed the project in conjunction with Rogers Stirk Harbour + Partners (“RSHP”) with local co-architects Samoo Architects, Engineers, and Siaplan Architects and Planners. The 630,000 square metres development consists of the largest shopping centre in Korea operated as The Hyundai Seoul, and two office towers that are 318m-tall and the other 246m-tall, which includes a luxury hotel Fairmont Ambassador Seoul. The development also has a sustainability programme through its new city-wide transportation integration. It includes column-free open-plan floor space to allow for efficient future changes, while embodied carbon in the buildings is minimised through an efficient composite mixture of steel and concrete structure.

Absolute Share Price Performance, as of 24 June 2022

Closing Share Price

24 June 2022

17 June 2022

% Change

Australia Stock Exchange (ASX)

Elanor Investors Group

1.77

1.67

5.7%

Event Hospitality & Entertainment Ltd

13.62

13.70

-0.6%

General Property Group

4.43

4.10

8.0%

Mirvac Group

2.13

2.08

2.4%

Bangkok Stock Exchange (THB)

Central Plaza Hotel Public Co Ltd

43.25

42.25

2.4%

Dusit Thani Public Co Ltd

11.70

11.40

2.6%

The Erawan Group Public Co Ltd

3.92

3.84

2.1%

Grande Asset Hotels & Property Public Co Ltd

0.19

0.21

-9.5%

Laguna Resorts & Hotel Public Co Ltd

31.25

32.00

-2.3%

Minor International Public Co Ltd

34.00

32.75

3.8%

S Hotels and Resorts Public Company Limited

4.42

4.34

1.8%

China Shanghai Stock Exchange (RMB)

Jinling Hotel Corporation Ltd

9.75

9.75

0.0%

China Shenzhen Stock Exchange (RMB)

Huatian Hotel Group Co.,Ltd.

3.92

3.73

5.1%

Guangzhou Lingnan Group Holdings Company Limited

11.25

10.46

7.6%

NASDAQ (US$)

Huazhu Group Limited

35.56

31.07

14.5%

Hong Kong Stock Exchange (HK$)

Miramar Hotel & Investment Co Ltd

13.90

14.14

-1.7%

Regal Hotels International Holdings Ltd

3.15

3.15

0.0%

Sino Hotels Holdings Ltd

1.99

2.04

-2.5%

The Hong Kong & Shanghai Hotels Ltd

7.07

6.93

2.0%

Shangri-La Asia Limited

6.20

6.07

2.1%

National Stock Exchange (INR)

Chalet Hotels Ltd

305.05

287.50

6.1%

IHCL (Taj Hotels, Resorts & Palaces)

226.90

211.05

7.5%

EIH (Oberoi Hotels & Resorts)

125.45

125.10

0.3%

Hotel Leela Ventures

8.75

8.90

-1.7%

Lemon Tree Hotels Ltd

62.70

62.00

1.1%

Korea Exchange (KRW)

The Shilla

68,900

71,600

-3.8%

Singapore Stock Exchange (S$)

Amara Holdings Ltd

0.34

0.33

1.5%

ARA Htrust (US$)

0.47

0.47

0.0%

Ascott Residence Trust

1.11

1.15

-3.5%

Banyan Tree Holdings Limited

0.27

0.26

1.9%

CDL Hospitality Trusts

1.29

1.30

-0.8.%

Eagle Htrust

0.14

0.14

na

Far East Hospitality Trust

0.63

0.64

-1.6%

Frasers Hospitality Trust

0.70

0.70

0.7%

Hotel Grand Central Ltd

1.02

0.99

3.0%

Hotel Properties Ltd

3.55

3.55

0.0%

Mandarin Oriental International Ltd (US$)

1.86

1.93

-3.6%

Stamford Land Corporation Ltd

0.40

0.39

2.6%

Taiwan Stock Exchange (NT$)

Formosa International Hotels Corporation

164.50

163.50

0.6%

The Ambassador Hotel, Ltd

32.00

31.85

0.5%

Tokyo Stock Exchange (JPY)

Japan Hotel REIT Investment Corp.

64,000

65,100

-1.7%

Imperial Hotel, Ltd

1,803

1,851

-2.6%

Red Planet Japan Inc

53

55

-3.6%

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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