Skift Travel News Blog

Casino-resort Genting Singapore is in talks with bidders for the purchase of Resorts World Sentosa and US-based MGM Resorts International is one of the top contenders, according to Bloomberg reports.

While MGM’s recent talks with Malaysia’s Lim family, that owns 53 percent stake in Genting Singapore, failed to yield an agreement, the Singapore-based casino operator is said to be in early-stage discussions with other potential buyers, as per Bloomberg.

As Covid outbreaks have led to a full closure of casinos in Macau — the Las Vegas of Asia, Singapore’s eased entry restrictions make it more open to international tourists.

A prospective buyer of Genting would also have to worry less about competition as Genting and Sands have an agreement with the Singapore government that limits the amount of gaming properties to the two entities, leaving Marina Bay Sands as its only competitor.

The Singapore Tourism Board had also reached an agreement in 2019 with Las Vegas Sands and Genting Singapore allowing them to significantly expand their respective integrated resorts.

Looking to decrease its dependence on Macau, where all casinos are closed and Japan very cautiously reopening to international tourists, MGM may be keen to explore other Asian destinations for its casino business.

Last year, speaking at the Skift Hospitality and Marketing Summit, William Hornbuckle, CEO and president of MGM Resorts International, had spoken about plans to expand in Asia.

Genting Singapore operates Resorts World Sentosa, an integrated resort on the Sentosa island, off the southern coast of Singapore. The key attractions at Resorts World Sentosa include a casino, the Universal Studios Singapore theme park, the Adventure Cove Waterpark, as well as the Singapore Oceanarium, which is the world’s second largest oceanarium. 

Investment in the hotel sector in Asia Pacific continued to recover as investment volumes totaled $6.8 billion in the first six months of 2022, according to real estate brokerage firm JLL’s report.

Capital deployment into the region’s hotels sector showed a return to pre-pandemic levels, registering a 12 percent increase compared to 2019.

Countries in the Asia-Pacific region are expected to experience a fast pace of recovery in the second half of 2022, Skift Research noted recently in its Asia Pacific Accommodation Sector Market Estimates 2022.

In terms of investment volume Japan received the maximum capital —  $1.8 billion, followed by Korea’s $1.7 billion, and Greater China, including Hong Kong ($1.6 billion).

A strong domestic and international tourism demand and the recent devaluation of the Japanese Yen would drive investors to acquire hotel assets in Japan, JLL noted.

JLL also expected further price reductions of hotel assets and forecasts China’s hotel transaction volume to total approximately $2 billion in 2022.

Strong recovery was witnessed in countries like Singapore ($899.7 million), Maldives ($205.5 million), and Indonesia ($159.6 million).

The activity was more subdued in Australia ($145.5 million) and Thailand ($37.7 million), however, JLL noted that these countries would witness greater investment in the second half as numerous marque deals would be closing.

More hotels are entering the Thai market as sellers are under pressure to sell, noted JLL and forecast that transaction volumes would reach close to $300 million this year.

While the 75 transactions in the first half of 2022, were down 33 percent compared to the first half of 2019, the 19,822 rooms transacted during the first half of 2022 was 30 percent higher compared to the first half of 2021 and 9.4 percent compared to 2019.

“The increase in deal activity was influenced by a spike in portfolio transactions as institutional investors sitting on dry powder seek to deploy their capital more efficiently,” the report noted.

However, according to JLL, ongoing momentum will likely be challenged by growing macroeconomic and geopolitical headwinds in the second half of 2022.

“We remain steadfast in our conviction that total Asia Pacific hotel investment volume will cross the $10 billion mark despite the scarcity of assets coupled with macro and geopolitical headwinds that will continue to influence capital activity,” said Mike Batchelor, CEO, Asia Pacific, JLL Hotels and Hospitality Group. 

United Arab Emirates’ budget carrier FlyDubai has suspended operations to Colombo in Sri Lanka until further notice, amid the escalation of protests in the South Asian country.

“FlyDubai flights between Dubai and Colombo Airport have been suspended from July 10 until further notice,” said an airline spokesperson, while assuring to closely monitor the situation on the ground in Sri Lanka.

Passengers booked to travel on these flights will be contacted and offered a refund, the airline has said.

Following the unrest in Sri Lanka, the embassy of the United Arab Emirates in Colombo had also issued an advisory asking its citizens in Sri Lanka to take precautions and stay away from demonstration hotspots. It has also asked its citizens to avoid travelling to the country.

On Saturday, thousands of locals demanding the resignation of Sri Lankan President Gotabaya Rajapaksa stormed into his official residence braving teargas shells and water cannons — a scene that looked very familiar to the 1986 dethroning of the corrupt and brutal regime of Philippines President Ferdinand Marcos.

The visuals coming from the Sri Lankan president’s residence showed locals cooling off in the presidential swimming pool, sleeping on the bed and sofa as well as preparing food for dinner.

The political crisis coupled with the economic crisis has the South Asian island suffering from the worst economic crisis since independence in 1948.

The Sri Lankan president has now confirmed that he would be resigning on Wednesday, Prime Minister Ranil Wickremesinghe has also announced his resignation.

Singapore-based Ascott is buying global serviced apartment provider Oakwood Worldwide from Mapletree Investments, increasing its global portfolio by 81 properties and about 15,000 units.

Terms of the deal were not disclosed. The acquisition is set to be completed in the third quarter of 2022, after which 8,500 Oakwood operational units are expected to immediately contribute to Ascott’s recurring fee income streams.

Ascott parent company CapitaLand Investment expects the acquisition to take the serviced apartment operator’s global presence to more than 150,000 units in about 900 properties across more than 200 cities in 39 countries.

With Oakwood coming onboard, Ascott is confident of achieving its target of 160,000 units globally ahead of 2023.

Following the acquisition, the new markets that would be added to the Ascott portfolio include Cheongju in South Korea; Zhangjiakou and Qingdao in China; Dhaka in Bangladesh as well as Washington D.C.

Mapletree acquired Oakwood in February 2017.

Other Ascott takeovers include Quest Apartment Hotels in 2017. In the same year, Ascott invested in Synergy Global Housing, a corporate housing provider in the U.S. In 2018, Ascott acquired Indonesian hotel operator Tauzia Hotel Management to enter the mid-scale business hotel segment.