a fully integrated hospitality platform sponsored by
Warburg Pincus and VinaCapital, has completed the acquisition of two
historic landmark hotels in Cambodia, the 175-key Raffles Hotel
Le Royal Phnom Penh and the 119-key Raffles Grand
Hotel d'Angkor Siem Reap.
With the acquisition of the two Raffles Hotels,
the company's maiden acquisition outside of Vietnam, Lodgis now owns
one of the largest collections of luxury historic hotels
in the Indochina region as well as a growing resort and hotel
management business under the Fusion brand.
Peter T. Meyer, Chief Executive
Officer of Lodgis, said, "We are very excited with the acquisition
of the two historic Raffles hotels in Cambodia. Together with the
Metropole in Hanoi, Lodgis now owns an irreplaceable Indochina
heritage hotel portfolio that allows us to achieve significant
synergies on both marketing and operations to better serve the
rapidly-developing tourism market across Indochina. We see
tremendous upside potential for both assets with a highly targeted
capital expenditure program to transform the hotels back to their
grand stature. Given our close working relationship with Accor as
well as our strong in-house expertise, we are confident the hotels
will create long-term value for Lodgis and be very well positioned
for the overall Indochina market."
In 2017, Cambodia welcomed
5.6 million international visitor arrivals, representing a
year-on-year growth of 11.8% on the back of a strong 10-year CAGR
of over 10%. Phnom Penh and Siem Reap attracted the largest share
of international visitors in the country with 49% and 38% share,
Notably, over 1 million Chinese tourists visited
Cambodia in 2017, representing growth of 45% year-on-year
and making Cambodia one of the fastest growing frontier markets
for Chinese outbound tourists in Southeast Asia alongside Vietnam.
With increasing direct flights and the government's strong push
towards tourism, the industry is expected to continue its strong
upswing in 2018 with at least 6 million international visitors on
top of the projected 15 million domestic tourists, reaching an
anticipated US$4 billion in revenue. In addition to tourism,
foreign direct investment in the country reached US$6.3 billion in
2017, translating to a 75% year-on-year increase.