Millennium & Copthorne Hotels New Zealand completes Auckland hotel deal

Millennium & Copthorne Hotels New Zealand said it has completed its purchase of the Copthorne Hotel Auckland Harbourcity.

But in a filing to the Singapore Exchange, it said the price of the deal was confidential.

Millennium & Copthorne is funding the purchase with cash and a new loan facility.

The area around the Copthorne Hotel Auckland Harbourcity is now a focal point for entertainment and access to the Waitemata Harbour.

Millennium & Copthorne Hotels and Resorts now has three owned or leased properties in Auckland.

It also recently clinched a short-term management agreement for the Metropolis Hotel Auckland. – CNA/ms

Source : Channel NewsAsia – 30 Jun 2008

Are we looking at buildings only as money-spinners?

I READ “It’s the end of the Storey” (June 27) with disbelief.

How serious are we as a nation about preserving what little is left of our heritage? What, exactly, are these “engineering constraints” that make it impossible to construct the Downtown Line without demolishing the New 7th Storey Hotel? Since the Bugis station already exists, would it be fair to say that they will just be doing works underground? And if so, can they not tunnel around the building, rather than just directly below it?

After the recent demolition of the much-loved National Library (and going back even further, other historical landmarks such as the National Theatre, the Van Cleef Aquarium, the old Esplanade – Elizabeth Walk – and Satay Club), have we not learned our lesson? We can’t turn back the clock and save these buildings – some would say, monuments – but going forward, we can try our best to preserve those that are still with us.

I feel that we are still not doing enough in this area and tend to look at buildings purely from an economic standpoint – hence, you get the Raffles Hotel, Chijmes and the Singapore Art Museum. These structures are money-spinners and to the authorities, the New 7th Storey Hotel is merely an anachronism from the past, on its last legs, deserving of the wrecking ball.

It is not too late. I beseech the authorities to re-consider their decision and leave the New 7th Storey Hotel alone.

Source : Weekend Today – 28 Jun 2008

Don’t let it die

Shouldn’t technology be able to save the New 7th Storey Hotel?

I REFER to “It’s the end of the Storey” (June 27) and I want to express my utmost disappointment at the imminent demolition of the New 7th Storey Hotel (picture) along Rochor Road.

It is hard to understand that with the advance in building technology why this is the only engineering solution to resolve the situation; we have even seen an MRT station built under a huge canal in the Chinatown area. Many countries have succeeded in merging new and existing buildings through tactful architectural intervention (we can count our own Bugis Junction as an example of this, as well).

Then again, this is yet another painful reminder of other similar examples – the most recent being the demolition of the red-brick National Library building.

Another is now fading away in most memories – the beloved former National Theatre, which was just a few streets away.

I hope the Government remembers that the collective historical memory of Singapore belongs to the nation and her people, and must be treated with great respect. Architectural history is an important component in the fabric of the people’s collective memory and these threads should not be so easily removed under the tag of “progress”.

Is it any wonder that increasing numbers of younger Singaporeans are finding it harder to take root in the country? It will of interest to hear the comments of the Urban Redevelopment Authority, the National Heritage Board and other relevant authorities on this matter.

Source : Weekend Today – 28 Jun 2008

HL scores in Seoul

Attractive profit from sale of Millennium Seoul Hilton

SINGAPORE’S Hong Leong Group is selling the Millennium Seoul Hilton to Korean property developer Kangho AMC for nearly $700 million, reaping an attractive profit of about $465 million in the process.

:The 685-room hotel is in one of Seoul’s choicest districts. Hong Leong’s hotel arm, Millennium and Copthorne (M&C), bought it for the equivalent of £144.6 million ($387.8 million) in 1999.: The two parties now value the hotel at £287.9 million, but after taking into account some liabilities, agreed to a sale price of £232.6 million.

The price works out at US$830,000 ($1.14 million) per room, which is one of the highest sums paid for a hotel in Seoul, according to Hong Leong spokesman Gerry de Silva.

In fact, it comes close to the US$836,000 a room paid for the 807-room Plaza Hotel in New York by Israel’s Elad Group in 2004.

The Seoul sale comes only after former Daewoo Group chairman Kim Woo Choong was booted out from its 903-square-metre penthouse, which had been leased to him for 25 years for just US$0.31 a day. Daewoo had previously owned the hotel.

Hong Leong Group Chairman Kwek Leng Beng said: “The sale value attributed to the hotel demonstrates once again the underlying management skill of our group in maximising shareholder value. The M&C group’s strategy of being an owner of hotel assets remains unchanged. However, the opportunity for sale, whilst unsolicited, further strengthens the M&C group’s ability to take advantage of market and cyclical opportunities.”

M&C intends to use proceeds from the sale to increase its cash reserves in order to fund acquisition opportunities, earn interest income and reduce debt.

City Developments Limited (CDL) has already announced plans to invest between US$150 million and US$300 million in a commercial and residential project in Incheon.

M&C chief executive Richard Hartman said: “Seoul is a key gateway city and this will present us a more difficult decision on divestment. While the city has a challenging hotel operating environment particularly in Millennium Seoul Hilton, we have managed to achieve a profitable exit from the investment. We will be watching for suitable opportunities as they may arise in Korea.”

Source : Today – 25 Jun 2008

Analysts expect no sale of hotel sites under Reserve List in Q3

PROPERTY watchers say they do not expect to see any sale of the hotel sites under the Reserve List during the coming quarter, because of the current cautious sentiment in the market.

Under the Government Land Sales programme for the second half of the year announced on Thursday, 10 hotel sites were up for sale but only one via the Confirmed List.

Hotel room rates have been rising as Singapore receives more and more visitors. But developers have not been jumping to lay claim to hotel sites put up for sale.

And the government is reacting to that. Under its Land Sales Programme for the second half, only one hotel site has been placed for sale via the Confirmed List, yielding some 700 rooms. That’s down from the two hotel sites in the first half and 1,670 rooms, also via the Confirmed List.

Nicholas Mak, director for consultancy & research at Knight Frank, said: “What the government is doing is that it is trying not to force feed the market, not to put out sites for sale when there may not be any genuine demand for such hotel sites.”

None of the sites earmarked for hotel development has been sold this year.

Property watchers say it is unlikely any hotel sites under the Reserve List will be triggered for sale in the coming quarter, given the current cautious sentiment in the property market.

Despite this, some 11,200 hotel rooms are expected to be completed between now and 2011, with some 1,800 expected to be ready by the end of this year.

Analysts say they are confident that there will be sufficient supply to meet demand when Singapore hosts the Youth Olympics in 2010, and when the integrated resorts open.

Mr Mak said: “On the whole, the total potential supply that is available from all the land (set aside) in the Government Land Sales programme for the next six months is about the same as what it was in the first half of 2008. So, they (the government) are not really reducing the potential supply but it is more of a case of shifting the potential supply to the more flexible system of the Reserve List.” – CNA/ir

Source : Channel NewsAsia – 21 Jun 2008

Government releases eight confirmed sites for sale

Capitol Centre at Stamford Road may be demolished to make way for a new hotel to meet demand for hotel rooms. The location is one of eight confirmed sites that have been released for sale, under the Government’s Land Sales programme.

The Ministry of National Development also announced on Thursday that it will release enough land to potentially build nearly 8,000 private residential units, in the second half of the year.

Meanwhile, Capitol Building, Capitol Theatre as well as Stamford House have been gazetted for conservation. The Urban Redevelopment Authority said the sale of the site they are on, will not only facilitate the restoration of the conserved buildings, but also add vibrancy to the area.

All in, a 1.45 hectare land parcel at the corner of North Bridge and Stamford Roads will be released under the confirmed list of the government land sales programme for the second half.

The successful bidder has the option to demolish Capitol Centre to build new and higher-yielding properties.

These include a 600-room hotel, which will increase the number of hotel rooms in the vicinity.

Analysts expect this site to generate a lot of interest.

Nicholas Mak, Director, Consultancy & Research, Knight Frank, said: “If you look at the entire area, I think it is located in a jewel of a location. The location is prime and is located very close to Raffles City, the MRT and has excellent exposure with potential re-development for one component of it, which is Capitol Centre. So, again there’s a lot of imagination. It will certainly attract world class developers.

Another 100-room hotel is slated at a confirmed site at Bukit Chermin.

This is timed to coincide with the completion of the Labrador Nature and Coastal Walk in 2011.

Tay Huey Ying, Director, Research and Advisory, Colliers International, said: “This particular locality is going up very nicely into a tourist attraction as well as drawing more businesses and residents to this locality. I think the availability of this site in the GLS programme will probably generate a fair bit of interest because sites for hotel development in this locality is generally very limited.”

She added that the four black and white bungalows would also add character and ambience to the hotel development.

Other sites up for sale are residential sites at Yio Chu Kang, Seletar Road, Sembawang Greenvale, New Upper Changi Road, Tanah Merah Kecil Avenue, Punggol Field, Punggol Road which is marked for the building of executive condominiums

Although the site at Yio Chu Kang, Seletar Road will have commercial activities, property analysts are not expecting developers to bite

The latest programme also includes two new sites which will transform the Jurong Lake District and Kallang Riverside into a destination for work, life and play. – CNA/vm

Source : Channel NewsAsia – 19 Jun 2008

Singapore’s first airport hotel has 75% occupancy target

Singapore’s first airport hotel has opened its doors to guests, nearly 30 years after Changi Airport began operations.

Although the 320-room Crowne Plaza Changi Airport has just opened for two weeks and not all the rooms are ready, it is already meeting its occupancy target of 75 percent for the full year.

Room rates at the hotel start from about US$200 – just below the prices at the premium Orchard Road belt. But with the city less than a half hour’s ride away, the need for an airport hotel seems less apparent.

The airport hotel management, however, disagrees with this view.

Mark Winterton, general manager of Crowne Plaza Changi Airport, said: “Everybody needs an airport hotel. Location is everything. Business travellers these days are savvy, their time is conserved and they want to get in, get out.

“Singapore is a hub – people fly in for meetings and they don’t want to trail. It may only be 15 to 20 minutes from the city, but people don’t have 15 to 20 minutes these days.”

While the hotel is looking at all sectors, it is primarily targeting business travellers and those coming for meetings and conventions. It is also getting transit passengers, air crew and those doing business nearby.

“There is a market for this. There is an awful lot of business in this side of the island. We’ve had great response from the corporate companies in Changi Business Park, and we’re working with the Expo and the CAAS,” said Mr Winterton.

The hotel is also working with authorities to offer a direct check-in system which will likely be available within the next few months.

One of the biggest challenges that the airport hotel faced was finding good staff as 200 service staff were needed. After nine months and a gruelling two-day walk-in session which attracted some 1,500 applicants, everyone is finally in place.

And while there were some delays – the hotel’s soft opening had to be pushed from March to May – Mr Winterton said it is par for the course.

The hotel is now expected to officially open in September.

Source : Channel NewsAsia – 14 Jun 2008

New Changi Business Park site may see bids of up to S$600m

JTC Corporation on Wednesday launched a tender for a mega development site at Changi Business Park, and the 4.7-hectare site is likely to see bids as high as S$600 million.

The winning bidder will have to build an integrated development comprising a business park, retail activities and a hotel.

Changi Business Park has been a hub for businesses that need to stay close to the airport or away from the city centre.

The new site being launched by JTC is at the junction of Changi South Avenues 1 and 2.

The site will yield a total gross floor area of 117,515 square metres, and 60 per cent of the floor space must be used for business park activities. The rest has been set aside for so-called “white” or commercial activities, including retail and hotel space.

Developers can dedicate 45 to 60 per cent within the “white” component to retail activities, with the remaining being set aside for the development of a hotel.

Observers say the winning bidder will need to build a hotel on the site to ease the crunch on hotel rooms in the vicinity.

Chua Yang Liang, head of research and consultancy at Jones Lang LaSalle, said: “I would say the retail component is going to be more limited to just serving the day-to-day needs of the immediate occupants there. Hotel, on the other hand, is probably more welcomed. There is a dearth of hotels in and around that area.”

Some 2,000 hotel rooms could be built on the site, according to analysts that Channel NewsAsia spoke to.

The news comes as the government tries to cater to the rising demand for business park space and amenities in that area.

JTC expects Changi Business Park’s current population of 6,000 to surge to 20,000 by 2011.

Market watchers say demand will continue to remain strong over the next 12 to 24 months.

Donald Han, managing director of Cushman & Wakefield, said as long as there is a huge gap between the prime office rentals in the central business district and the rentals in Changi Business Park, “there will be what we call the preference for huge multi-national corporations to try and average down CBD office rents by moving part of their operations into the Changi Business Park.”

Interested bidders have up till 19 August to submit their proposals for the site. – CNA/ac

Source : Channel NewsAsia – 11 Jun 2008

130-room Raffles Moscow set to open in 2011

Raffles Hotels & Resorts is set to open in Moscow in 2011. The 130-room Raffles Moscow will be managed by Raffles under a long-term contract that may last more than 20 years.

An agreement was sealed with its partner ALT Corporation, witnessed by Senior Minister Goh Chok Tong who is currently on a visit to Moscow.

Raffles Hotel said the new property will be located in Moscow’s business district, near prominent landmarks like the Red Square, Kremlin and Bolshoi Theatre.

The stately building, currently managed by ALT Corporation, will soon undergo redevelopment to transform it into a luxurious hotel.

Average room rates are likely to range between US$800 and US$1,000 a night.

Raffles Moscow will be part of a larger development, which will include apartments, high-end retail galleries as well as historic buildings, such as an 18th century Russian Orthodox Church and the house where Napoleon Bonaparte occasionally stayed.

Raffles Moscow will feature six restaurants and a bar, and a 1,300-square-metre RafflesAmrita Spa.

Raffles and ALT are also exploring other opportunities in the St Petersburg area. – CNA/ms

Source : Channel NewsAsia – 6 Jun 2008

Merchant Court goes for $208 million

KINGDOM Holding, the investment company controlled by Saudi billionaire Prince Alwaleed bin Talal, said its Fairmont Raffles Hotels International unit has sold The Swissotel Merchant Court in Singapore.

Bloomberg said yesterday the 476-room hotel was sold for US$153 million ($208 million), citing an emailed statement from Kingdom, which did not name the buyer.

“The sale of this hotel is in line with Kingdom’s strategy to continue to realise value from hotel assets either through a sale or aggressive operational and financial management across its hotel portfolio,” Mr P J Shoucair, the executive director for international investment, was quoted by Arab news agency MENAFN as saying.

Fairmont Raffles, a joint venture between Kingdom and United States-based private equity firm Colony Capital, last week called off a deal to sell Singapore’s iconic Raffles Hotel to a consortium led by former Credit Suisse banker Mark Pawley.

The consortium earlier planned to buy the grand old dame for a reported $650 million – more than triple the $200 million paid by its American and Middle Eastern owners in 2005. Fairmont Raffles would have continued running the property through a management contract if the sale had gone through.

Both parties declined to provide reasons for the scrapped deal, citing confidentiality clauses. The consortium’s spokesman, however, denied that funding was the cause.

Source : Today – 2 Jun 2008