Travelodge Opens Second Hotel in Hong Kong

[HD video and podcast below] A consortium comprising SGX-listed ICP Ltd and a real estate private equity fund has acquired Butterfly on Hollywood, an 148-room midscale hotel located in the Central district of Hong Kong.

From September 2017 onwards, the hotel will be rebranded as Travelodge Central, Hollywood Road and be operated by Travelodge Hotels Asia, a wholly owned subsidiary of ICP.

Situated at the intersection of Hollywood Road and Possession Street, the hotel sits in the heart of Hong Kong Island between Central and Sheung Wan. The hotel is a 15-minute walk from Lai Kwai Fong, and a 7-minute walk from Sheung Wan MTR Station.

Mr. Stephen Burt, Chairman of Travelodge Hotels Asia, said, "Travelodge Central, Hollywood Road is a great addition to our fast growing network of Travelodge hotels in Asia, following the launch of two hotels in Bangkok and Pattaya last month. The opening of our second hotel in Hong Kong signals our confidence that the market continues to be a key business and leisure destination despite the headwind in recent years. We are optimistic about the outlook of the Hong Kong hotel operating environment, which we believe has bottomed out and is now well on its way to bouncing back to the 2013/2014 levels. As we strengthen our footprint in Hong Kong and Thailand, our development pipeline is strong and we expect further brand penetration in the near future in other markets such as Singapore, Malaysia and Japan.

Mr. Aw Cheok Huat, Chairman of ICP Ltd, added, "We are delighted to make the group's maiden hotel investment in Hong Kong. We have co-invested with a very strong institutional partner that has a tremendous track record in value-add real estate investments in the region. Our financial commitment to this deal outlines our philosophy of having skin in the game and ensuring alignment of interests with the groups that we work with. We will continue to pursue hotel acquisitions in Asia for rebranding to Travelodge as we are confident in the brand and our management team's ability to provide significant operational value-add to hotel assets and repositioning such hotels to optimize room rate, profitability and guest experience. This will ultimately drive enhanced property valuation and returns to our co-investors and shareholders."

Expansion Plans of Travelodge Hotels Asia (January 2017)

PODCAST

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