Hot tips from the world’s biggest hotel investors
by Yeoh Siew Hoon
You could say the panel at the JLL Hotels conference was a heavyweight one. The five investors represented accounted for 20% of the US$70 billion in hotel transactions last year.
New to Asia was The Blackstone Group which has opened an office in Hong Kong and will be setting up in Tokyo as well.
The private equity group, part of a new wave of investors sweeping the global landscape, also announced a US$3 billion investment from China’s state Investment company in exchange for a 10% stake.
The deal is part of a move by Blackstone to expand in Asia, in particular, China, where it is the first to a Chinese partnership. Said Blackstone co-founder Stephen Schwarzman: “Blackstone is the first, but over time, I suspect there would be others.”
At the JLL Hotels conference, senior managing director Chad Pike said the private equity fund was finally ready to focus on Asia, having spent the last seven to eight years building up its European portfolio.
He said the group would also focus on the gateway cities of Hong Kong, Tokyo and Singapore.
Also looking to Asia is Dubai-based Istithmar whose managing director Richard Johnson said that while the company was looking globally for opportunities, “the greatest and most compelling story is in Asia”.
It has opened an office in China and will open in Singapore. It will focus its investments in the top end and branded budget sector.
Asked if the Middle East was good investment haven, Johnson said, “The Middle East is not one place. Dubai is not Syria. Egypt is not Iraq. There are distinct differences, distinct opportunities. But on a global scale, it is not as attractive as Asia.”
Starwood Capital Group is looking at China with managing director Greg Stuppler identifying second and third tier cities “as we feel the first tier is a bit overvalued”.
He said the group would also focus on resorts and major cities in North Asia.
Also setting sights on North Asia is Morgan Stanley whose managing director Sean Williams picked Tokyo and Shanghai as prime spots.
Thailand-based TCC Land International’s president Chia Kwok Pin said that while Thailand “may look scary to everybody”, it has always enjoyed a “systematic chaos”.
“It is now just buying time, taking a breather. As long as personal safety is not compromised, it is still a good market.”
He said TCC Land would continue to focus on Asia. “There are a lot of good deals. The key is to source out the serious sellers.”
His focus? Second and third tier cities in China, Macau and Singapore.
Catch up with Yeoh Siew Hoon every week at The Transit Cafe – www.thetransitcafe.com
Ian Jarrett
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