[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.
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)