HVS Asia Pacific Hospitality Newsletter - Week Ending 6 June 2025
IOI Group Acquires CDL's 50.1% Stake in Singapore's South Beach Mixed-use Development
Malaysia-based IOI Properties Group Berhad ('IOI Group') is set to acquire full ownership of Singapore's South Beach mixed-use development by purchasing Singapore-based City Developments Limited's ('CDL') 50.1% stake with an estimated sale consideration for SGD834.2 million. The sale consideration is based on an agreed property valuation of SGD2.75 billion, which represents a 3% premium over the latest appraisal as of 31 December 2024, as well as CDL's 50.1% shareholding. Strategically located in Singapore's Marina Central district, South Beach comprises a 34-storey Grade A office tower, the 634-key JW Marriott Hotel Singapore South Beach, the 190-unit South Beach Residences, commercial units, and four conserved heritage buildings. The hotel features eight food and beverage outlets, 18 meeting rooms, a fitness centre, an infinity swimming pool, a kid's pool, and a spa. The divestment aligns with CDL's capital recycling strategy to reduce debt and redeploy capital, while for IOI Group, the acquisition enhances its portfolio of assets in Singapore's prime districts.
Worldwide Hotels and Fragrance Group to Lead Major Redevelopments for Novotel Singapore on Kitchener and Katong Plaza in Singapore
Two prominent sites in Singapore, Novotel Singapore on Kitchener and Katong Plaza, are set to undergo major redevelopment into new hotel assets following recent planning approvals. The Kitchener Road site, located adjacent to Farrer Park MRT and within proximity to the city's central district, will be redeveloped by Midtown Development Pte Ltd, the subsidiary of Singapore-based Worldwide Hotels Pte. Ltd. ('Worldwide Hotels') into a 1,625-key hotel with 1,214 square metres ('sqm ') of retail space. In 2023, the 543-key hotel branded under Parkroyal Hotels & Resorts at that time and the freehold site spanning 7,780 sqm were sold by the Singapore-based UOL Group Limited ('UOL') to Worldwide Hotels for SGD575 million, or approximately SGD1.1 million per key. Furthermore, Katong Plaza, located next to Marine Parade MRT station, will be redeveloped into a 374-room hotel with 537 sqm of retail space. The freehold 3,162 sqm site was acquired in 2024 by Singapore-based Fragrance Group Limited ('Fragrance Group') for SGD180 million, or approximately SGD56,926 per sqm. The site is located next to multiple hotel establishments, including the 572-key Grand Mercure Singapore Roxy, the 451-key Holiday Inn Express Singapore Katong, and the 131-key Hotel Indigo Singapore Katong. Both projects reflect continued investor confidence in Singapore's mid-tier and mass-market hotel segments amid a strong tourism recovery.
Coliwoo to Convert State-Owned Property into 350-Key Resort-style Chalet in Singapore
Singapore-based LHN Limited ("LHN") has secured a lease for a state-owned property through an SGD225,000 tender organised by the Singapore Land Authority ("SLA"). LHN plans to transform the site into a 350-key, resort-style chalet under its Coliwoo brand, marking a strategic expansion into eastern Singapore. Located at 159 Jalan Loyang Besar, the property spans approximately 35,384 square metres ("sqm") and will become Coliwoo's third-largest development after the 437-key Coliwoo Boon Lay and the 411-key Coliwoo Orchard. The site comprises 20 two-storey buildings, four single-storey structures, and on-site vehicle lots. This project represents Coliwoo's first venture into resort-style co-living hospitality. Renovation plans are expected to include wellness-oriented amenities such as swimming pools, sports zones, and meditation gardens. The site is located near Pasir Ris Beach, Downtown East entertainment hub, and Wild Wild Wet water park. Renovations are slated to begin in the second half of 2025, with the resort expected to open in the third quarter of 2026. Coliwoo's portfolio currently comprises a total of 26 properties with 2,586 keys.
Nagoya Station to Undergo Major Redevelopment to be Completed by 2040s in Japan
A major redevelopment is planned for Nagoya Station in Nagoya, Japan. The project involves the demolition of six existing buildings to make way for two new high-rise structures, which will house commercial and office spaces, a 150-key hotel, and a bus terminal. The hotel, set to open after 2034, will be operated by the US-based Hyatt Hotels Corporation under its Andaz brand. It will occupy the 25th to 29th floors and will feature at least two food and beverage outlets, meeting and event spaces, a fitness centre, a spa, and an indoor pool. Another key feature of the redevelopment is the enhancement of Meitetsu Nagoya Station, which will include the construction of a dedicated platform for airport-bound trains, complete with waiting lounges and lifts. The project will be carried out in two phases. Phase one — comprising the office spaces, commercial areas, and the hotel — is targeted for completion in 2033. Phase two, which involves the full opening of retail areas and expansion of the station from two platforms to four, is scheduled for completion in the early 2040s.
AWC Commits THB12 Billion to the Mixed-Use Projects 'Lannatique' in Chiang Mai, Thailand
Thailand-based Asset World Corp Public Company Limited ('AWC') has announced a landmark THB12 billion investment to develop three interconnected mixed-use projects — Lannatique Kalare, Lannatique Bazaar, and Lannatique Market — in Chiang Mai's Chang Klan area. Under the banner 'The Heart of Lanna Art Movement,' the developments will blend Lanna cultural heritage with contemporary art, wellness, and sustainable tourism. Lannatique Kalare is scheduled to launch first in Q4 2025, featuring retail villages that spans more than 17,500 square metres ('sqm') and a 55,000 sqm hotel to follow in 2030. Lannatique Bazaar will house 22,500 sqm contemporary art spaces and a 25,000 sqm hotel, slated to complete in 2028 and 2029, respectively. while Lannatique Market will span more than 87,000 sqm and promote local community products. The Lannatique project will also house the upcoming Okura Hotel Chiang Mai in 2028 along with three existing hotels namely the 260-key Meliá Chiang Mai, 240-key InterContinental Chiang Mai Maeping Hotel and 383-key Chiang Mai Marriott Hotel. AWC's vision is to establish Chiang Mai as a world-class destination for arts and wellness tourism. The overall investment for the Lannatique project will exceed THB25 billion, including the THB0.6 billion Pantip Lifestyle Hub Chiang Mai shopping centre and another THB12 billion planned over 10 years.
For the latest in the hospitality industry, please visit: http://www.hvs.com/. You are also welcome to contact the following personnel.
About HVS
HVS, the world's leading consulting and services organization focused on the hotel, mixed-use, shared ownership, gaming, and leisure industries, was established in 1980. The company performs 4,500+ assignments each year for hotel and real estate owners, operators, investors, banks and developers worldwide. HVS principals are regarded as the leading experts in their respective regions of the globe. Through a network of some 60 offices and more than 300 professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. hvs.com.
Hok Yean Chee
Managing Partner - HVS
HVS
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