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Fri, 11 Oct 2019

Finalists of HICAP Deal of the Year 2019

The finalists for this year’s HICAP Deal of the Year Awards are as follows:

Reggie Shiu Development of the Year Award

citizenM Kuala Lumpur Bukit Bintang, Malaysia

Converted from a 30+ year-old office building, the 210-room CitizenM successfully balances introducing a modern hotel concept into a culturally diverse and historic district while incorporating the charm and improving the identity landscape of the area. Gutting the entire building was needed to reconfigure the floor layouts and install new equipment and systems to fit the CitizenM ID package into the existing building shell. The resulting marriage of technology with efficient room design (18sqm) yields an attractive return on investment via maximizing a limited footprint to its full potential, while edgy and localized interior design accents the hotel’s quirky nature.

Owner: Cornerstone Partners Group
Operator: citizen IP Holdings
Architecture: Akitek Akiprima
Conceptual Design: Concrete Amsterdam
Designer: Blu Water Studio
Development Cost: USD40 million

Shinta Mani Wild, Cardamom National Park, Cambodia

Situated in the heart of Cardamom National Park (Cambodia), 15 tents are spread generously along the Tmor Rung Riverbank across 600 acres, so guests feel as if they are the only ones for miles. Designed as a “utopia of sustainability”, with low impact on the land, whilst helping provide a sustainable source of employment for locals with few choices in the area. Also, home to a research and conservation centre, run hand in hand with the Wildlife Alliance. Guests are taught about the local flora and fauna by on-site naturalists and join the Wildlife Alliance on patrol, putting them on the front lines of conservation in Cambodia.

Owner: Bill Bensley & Sokoun Chanpreda
Operator: Shinta Mani Bensley Collection
Architecture and Interiors: Bensley Design Studios
Development Cost: USD15 million

Yotelair Singapore Changi Airport is one of the finalists for the Reggie Shiu Development of the Year 2019 Award at HICAP 2019. Click to enlarge.

Yotelair Singapore Changi Airport

This 130-cabin new generation airport hotel utilizes smart innovation and design-efficiency in space planning and programming to fit an ensuite bathroom, reclining queen size SmartBed and stow-away desk into a 10 sqm space – providing transient travellers with everything they need and nothing they don’t. By automating the check-in/out process and utilising robots for guest services, labor costs are reduced (staff to room ratio = 0.18) while creating a unique guest experience. With the declining trend in retail sector yields, Yotelair’s operating model presents retail real estate owners with a viable and sustainable option to traditional lease income and boosting investment yield (GOP margins in excess of 50%).

Owner: Changi Airport Group/CapitaLand
Operator: YOTEL Limited
Architecture: Safdie Architects, RSP Architects Planners & Engineers Pte Ltd
Designer: Swan & Maclaren
Development Cost: N/A (part of SGD1.7 billion Jewel Changi Airport project)

Merger & Acquisition of the Year Award

NH Hotel Group, S.A. (NH Hotels) acquisition by Minor International PCL (MINT)

Minor International won NH Hotel Group in a takeover battle against big players at an EV/EBITDA multiple significantly lower than comparable transactions, without paying a control premium. The success derived from MINT’s ability to leverage its versatile and agile organization to fuel a tactical plan that effectively dominated and guided the outcome. MINT deployed a wealth of M&A tools during the transaction, including undisclosed retail-lot accumulation, strategic block trade (hedge fund stake), conditional purchase agreements (Chinese group), active campaigns through tender announcement, forward purchase public announcement and target engagement. The deal size was €2.5 billion, an accretive deal considering geographic diversity of NH’s portfolio of hotels.

Radisson Hotel Group acquisition by a Consortium Led by Shanghai’s Jin Jiang International Holdings

 A consortium led by Shanghai's Jin Jiang International Holdings completed the acquisition of the Radisson Hotel Group from the HNA Group. There were two phases to this transaction. In the 1st phase the consortium acquired the Radisson US from the HNA Group. The 2nd phase involved a public takeover of Radisson Hospitality (which primarily holds the European and international businesses) in Sweden. The takeover offer was structured as a mandatory bid. Baker McKenzie represented the consortium on this transaction. The outcome of the 2nd phase of the transaction was announced on 5 February 2019 and the consortium now holds 94.12 percent of the shares in Radisson Hospitality, which has now been delisted.

Six Senses Hotels Resorts Spas acquisition by InterContinental Hotels Group (IHG)

InterContinental Hotels Group (IHG) announced on 13 February 2019 the acquisition of Six Senses Hotels Resorts Spas, a leading operator of luxury hotels, resorts and spas. The USD300 million cash acquisition from Pegasus Capital Advisors included all of Six Senses’ brands and operating companies and did not include any real estate assets. At the time of the acquisition, Six Senses managed 16 hotels and resorts, with 18 management contracts signed into its pipeline, and more than 50 further deals under active discussion. Properties are in locations such as Maldives, Seychelles, Yao Noi in Thailand, Zighy Bay in Oman, and Portugal’s Douro Valley.

 Transaction of the Year Award

InterContinental Samui Baan Taling Ngam Resort, Koh Samui, Thailand

The Intercontinental Samui Baan Taling Ngam Resort is one of the first luxury resorts built on Koh Samui. Perched atop Baan Taling Ngam’s dramatic cliff, the property was featured in The New York Times Bestseller’s 1,000 Places to See Before You Die for the most beautiful sunset. The resort was sold with the benefit of management from InterContinental Hotels Group, one of the world’s largest hotel operators. The purchaser is a Thai high net worth family, marking their first acquisition into the hotels industry. The transaction recorded the highest price per key for hotels traded outside of Bangkok in Thailand.

Substantial Stake in Baillie Lodges, Australia

On 1 April 2019, KSL Capital Partners completed a substantial investment ($100m+) in Australia’s leading luxury lodge owner and operator, Baillie Lodges. Including Southern Ocean Lodge, Longitude 131° and Capella Lodge, the iconic portfolio represents Australia’s finest collection of luxury lodges offering access to signature Australian experiences in irreplaceable natural locations. Both parties see a strong alignment in their complimentary skill sets and share a vision to grow the platform via selectively adding new assets that deliver on the Baillie Lodges hallmark of relaxed ‘barefoot’ experiential luxury. An example of this focus on growth can be seen in the recent acquisition of Silky Oaks Lodge, which will undergo an extensive refurbishment in 2020.

Sydney & Canberra Hotel Portfolio, Australia

 In February 2019, AXA Investment Managers – Real Assets acquired the Sydney & Canberra Hotel Portfolio, which included the Pullman at Sydney Olympic Park, Novotel & Ibis Sydney Olympic Park, and the Novotel Canberra, for AUD330.4 million from Pearl Hotels. JLL Hotels & Hospitality Group and Savills Hotels were retained on a joint exclusive basis. This transaction was one of the largest hotel transactions in Australia in recent years. The Sydney Olympic Park assets are the major accommodation offerings within the world-class mixed-use precinct situated in Sydney’s geographical  centre and feature a total of 218 (Pullman) and 327 (Novotel/Ibis) guest rooms respectively, offering a strategic mix across 3.5, 4.5 and 5-star market positioning. The Novotel Canberra occupies a commanding position in the heart of the Canberra CBD on Northbourne Avenue – the city’s main thoroughfare – and offers 286 keys. The hotel is in close proximity to the city’s major demand generators and a multitude of restaurants, retail options, and entertainment venues. The portfolio was publicly offered for sale individually or ‘in-one-line’, with extensive investor interest originating from a range of buyer types out of Hong Kong, Singapore, Thailand, and Australia, whilst the successful purchaser of the Portfolio, AXA, hailed from France.

 The awards will be presented at the 30th annual HICAP held 23-25 October 2019 at the Kerry Hotel Hong Kong.

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