Two luxury hotels in Ho Chi Minh City sold to new owners, how much?

Jones Lang Lasalle (JLL) has announced that it has advised on the sale of a portfolio of three prominent hotels in Southeast Asia. The transaction is worth up to USD 106.1 million (nearly VND 2,500 billion), marking the first hotel acquisition in the region in 2023.

The portfolio includes Pullman Jakarta Central Park (in Indonesia), ibis Saigon South and Capri by Fraser (both in District 7, Ho Chi Minh City).

Of these, Pullman Jakarta Central Park and ibis Saigon South were sold together with Accor's management rights to the Pullman and ibis brands; while Capri by Fraser was sold with vacant ownership.

JLL Hotels & Hospitality Group acted as exclusive advisor to the seller - Strategic Hospitality Holdings Limited throughout the transaction.

“The sale of this hotel portfolio not only underscores the resurgence of transaction activity in Southeast Asia, but also reinforces the continued recovery in cash flows from hotels in the region,” said Julien Naouri, Senior Vice President, Sales and Investments, Asia Pacific , JLL Hotels & Hospitality Group.

Capri by Fraser Ho Chi Minh City and ibis Saigon South are the only internationally branded hotels within walking distance of offices leased by multinational companies and the Saigon Exhibition and Convention Center (SECC) in District 7, Ho Chi Minh City.

It is known that the buyer of these 3 hotels is from Hong Kong (China). The announced transfer price is lower than the price offered by the Thai group in 2020. At that time, the Board of Directors of the Thai Group Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust (SHREIT) approved the policy of transferring 100% of the shares of 2 subsidiaries.

The subsidiary that SHREIT wants to sell owns and operates three hotels in the ASEAN region. This list includes the 3-star Ibis Saigon South hotel, the 4-star Capri by Frasers hotel, both located in District 7, Ho Chi Minh City, Vietnam, and the 5-star Pullman Jakarta Central Park hotel in the west of the Indonesian capital Jakarta.

In particular, the total value of these 3 hotels was valued at nearly 133 million USD in 2020.

Source