Literate point.This year, there have been one big deal after another in the hotel. In the last two months of 2023 alone, hotel transactions are in full swing at the end of the year. In the past, the Ritz-Carlton in Tianjin was successfully sold to Beijing Yinglang Business Management by the mysterious person ** and the Wanda Reign Hotel in Shanghai***, and this time, it was the turn of the Bulgari Hotel in Shanghai.
On December 26, the Bulgari Hotel Shanghai ushered in a buyer, and Jiangsu Jinfeng Cement Group has been identified as the winning bidder. According to the latest announcement, OCT Shanghai Land and the buyer Jinfeng Cement have made a final consideration of RMB 24 on December 25$300 million (including VAT) entered into a transaction agreement to transfer the sale assets in accordance with its terms, and the final consideration has been transferred to OCT Shanghai Land, and the proposal** is expected to be completed by the end of the first half of 2024.
Compared with other luxury hotels that have been on hold for a long time and cannot be sold, the whole process of the auction of the Bulgari Hotel in Shanghai can be regarded as quite smooth. From October 11 this year, OCT (Asia) Holdings ***03366HK) issued an announcement to ** part of the assets of the Shanghai Suhewan project (including the Shanghai Bulgari Hotel), and on November 21, the project was officially listed on the Beijing Equity Exchange, and then it has been sold now, only two months have passed.
Since the beginning of this year, the recovery of tourism has re-emphasized the value of hotel properties, but at the same time, it has also become an important factor for many real estate companies to cash out. Milestone has been successfully sold at The Ritz-Carlton in Tianjin, and the luxury hotel has bottomed outIt lists the objective facts that many luxury hotels have been put on the shelves since the beginning of this year. So, what is the origin of the business tycoon Jinfeng Cement this time?Why did the sale of the Bulgari Hotel in Shanghai attract widespread attention?What else is there to see in the future of the luxury hotel market?This article will discuss each of these one by one.
Takeover man cement tycoon, what is the origin?Judging from the enterprise data, Jiangsu Jinfeng Cement Group was established in 2000 with a fixed asset scale of 30800 million, and behind it, the largest shareholder is Jinfeng Holding Group, with a shareholding ratio of 97%.
According to the information on its official website, Jinfeng Group behind Jinfeng Holding Group was founded in 1980, after more than 30 years of market struggle, from an unknown small cement factory to a large diversified group with 70 subsidiaries, business scope covering cement production, financial services, real estate development, cultural media, property management, hotels and guesthouses, concrete ready mix. At the same time, the company has also won the honorary titles of "China's Top 500 Private Enterprises", "Excellent Enterprise in Building Materials Industry in Jiangsu Province", "Advanced Enterprise with Excellent Performance in Jiangsu Province", "Large Taxpayer of Private Enterprises in Jiangsu Province", "Advanced Unit of Employment of Private Enterprises in Jiangsu Province" and so on.
Interestingly, this is not the first time that Jinfeng Holding Group has set foot in Shanghai's hotel assets this year.
In September, the building where the Sheraton Shanghai Hongkou Sanzhi Hotel is located was auctioned "No. 59 Siping Road, Hongkou District, Shanghai". The building is owned by Shanghai Sanzhi Hotel Investment Management, and the enterprise investigation shows that Shanghai Sanzhi Hotel Investment Management is a wholly-owned subsidiary of Shanghai Kaimeng Investment and Development, and Shanghai Kaimeng Investment and Development has been listed as a dishonest person. The reason for the auction was that the two companies had a loan dispute with China CITIC Bank and were applied by China CITIC Bank to execute the auction.
In the end, the financier of this project was Shanghai Yuzi Commercial Management*** According to Ali Asset Auction Network, this auction attracted a total of more than 1Of the 30,000 onlookers, 311 people set auction reminders. In the end, only Shanghai Yuzi Commercial Management *** paid 1A deposit of 500 million yuan was used to sign up for the auction and bid 164.3 billion yuan to buy this hotel building.
The "coincidence" is that Shanghai Yuzi Commercial Management is 50% owned by Jiangsu Hengfeng Investment and Development and Liyang Wanfeng Investment and Development, and the actual controller of these two companies is Jinfeng Holding Group.
It is not difficult to find that Jinfeng Holdings, which started from cement, is still enriching its wings to supplement the business chain, and among them, hotels are one of the important businesses.
The star asset Shanghai Bulgari Hotel also cannot escape the fate of being soldWhen it was rumored that Bulgari Shanghai was sold, it caused quite a stir in the hotel circle. The reason behind this is inseparable from its weight and topicality.
Officially inaugurated in 2018, it is the sixth Bulgari hotel in the world, the second Bulgari hotel in China, and now the first Bulgari hotel in the world to be sold. The hotel is a 48-storey tower and the renovated site of the Shanghai General Chamber of Commerce, located in the Suhe Bay Riverside Comprehensive Development Zone, with impeccable location and views of the Bund and Lujiazui from the hotel.
At the same time, this is also an urban waterfront revitalization project built by OCT that integrates high-end residential, fashionable commerce, art space and urban park, with 82 rooms and suites (including 19 hotel suites), and its room night price is 5,400 yuan 258888 yuan.
On October 11 this year, OCT (Asia) Holdings ***HK: 03366) announced that its indirect non-wholly-owned subsidiary, OCT Shanghai Land, plans to sell at a price of no less than RMB 24300 million yuan (including VAT)**, through the Beijing Equity Exchange** through the public listing of ** part of the assets of the Shanghai Suhewan project. The assets mainly include Bulgari Hotel Shanghai and other related supporting facilities such as residences, executive residences, apartments and so on (hotel series assets).
According to the announcement, in 2022, the above-mentioned listed marketable assets will record revenue of 1400 million yuan, a year-on-year decrease of 435%；Loss after tax was 05.2 billion, equivalent to a fourfold increase in losses in the previous year. Revenue for the first half of 2023 is 11.9 billion yuan, with a loss of 6.9 million yuan after tax. According to the management accounts of OCT (Asia) Group, as at 30 June 2023, the unaudited net book value of the assets sold was approximately RMB20100 million yuan. The Board of Directors of the Company is of the view that the Proposal**, if implemented, will enable the Group to revitalize its assets and accelerate its asset turnover for the Company's overall strategic planningThe cash inflows generated by the proposal** will be used to repay loans and borrowings, and will reduce the Group's interest-bearing liabilities and realise investment income.
Obviously, selling the hotel business is the common choice of many real estate companies represented by OCT. For example, Macrolink plans to transfer its indirect wholly-owned subsidiary, Tangshan Macrolink, to transfer assets such as the Pullman Hotel, and the transferee is Tangshan Cultural Tourism Construction and Development, with a total transaction price of 39.5 billion yuan;Shimao Group and Shanghai Real Estate Group signed an equity transfer agreement for the Hyatt Shanghai on the Bund at a total consideration of RMB4.5 billionR&F Properties has added 73 hotels it acquired from Wanda five years ago to the list for sale, and its ready** hotel assets account for about 95% of the overall ......
There is no doubt that the glorious past of the real estate industry has led to the rapid development of high-end luxury and even luxury hotels in China. As the real estate industry enters a new life cycle, hotel projects, which were once used as a tool for land acquisition, have gradually become a heavy burden on real estate. Zhang Jianming, chairman of Mingyu Group & chairman of Mingyu Business Travel, said in an interview with ** that the disappearance of real estate dividends has made the huge hotel assets and meager cash returns in the balance sheet of real estate developers an increasingly acute contradiction.
The market reshuffle is accelerating, what are the highlights of the luxury hotel market?The role of high-end and above hotels as a yardstick to test the level of economic development of a region has not been transferred.
So high-end hotels and even luxury hotels are frequently put on the shelves, in addition to the real estate company's broken wrist to return blood, does it mean that this business sector is not worth the layout and deep cultivation?In fact, the status quo of the industry being sold is more in line with the reasonable reshuffle of the high-end luxury hotel market.
The "2023 National Statistical Report on the Opening of Medium and High-end and Above Hotels" recently launched by Milestone Research Institute pointed out that with the "retaliatory growth" of leisure tourism demand and business travel demand, China's hotel accommodation industry has ushered in a significant recovery. In this context, the industry expectations and development confidence of major international and domestic hotel groups and hotel investors have doubled, and the pace of hotel expansion has been accelerated. Among them, the number of international high-end and domestic high-end hotels has exceeded 100, and 31 luxury hotels have been opened, with 7,878 new rooms.
Obviously, the high-end and above hotel market is still active and worth long-term observation. Based on market dynamics and industry research reports, Milestone believes that the luxury hotel market is still quite interesting and the future is promising.
The increase in new players has injected new vitality into the luxury hotel market.
From the current point of view, in addition to traditional hotel players, traditional retail predators represented by coal bosses and cement tycoons are also becoming more and more active in the layout and squeezing into the luxury hotel camp. For example, in recent years, the Hainan Marriott Hotel in Perfume Bay, Agile's three resort hotels in Hainan Clear Water Bay, DoubleTree by Hilton Hotel in Clear Water Bay, W Hotel Sanya Bay, Westin Bund Center Beijing and other luxury hotels have been acquired by coal bosses. In addition, also this month, the "golden father" of the acquisition of Wanda Reign Shanghai is Beijing Yinglang Commercial Management***, which is part of Singapore's Golden Eagle Group (RGE), a company that manages a number of the world's leading manufacturing and clean energy companies based on the development of renewable resources. When non-hotel players step into this industry, it is worth looking forward to what kind of vitality it will bring to the market.
Independent boutique hotel brands have accelerated their layout, and the product matrix of the luxury hotel market has become more diversified.
Different from the cookie-cutter chain hotels, independent boutique hotels often carry out personalized design on the subject matter according to the particularity of the site, and this uniqueness makes it stylish enough. In recent years, many international or domestic hotel groups have also increased their layout in the field of independent boutique hotels. For example, Hyatt's luxury and luxury independent brand series include Hyatt Collection and Hyatt Selection, and its footprints have spread throughout Beijing, Lijiang, Chengdu, Chongqing and other placesInterContinental Hotels Group has launched the Continental Luxury Selection to attract independent hotels from all over the world that meet the standards, and has opened 3 stores in Greater ChinaAnd Accor has launched the luxury brand Emblems Collection. In addition, the independent hotel alliances represented by Leading Worlds, Preferred Hotels & Resorts, SLH, etc., are a testament to the diversity of the brand matrix in the luxury hotel market.
In addition to the continued competition for luxury hotels in first-tier and new first-tier cities, the market sinking is also worth paying attention to.
Judging from the "2023 National Statistical Report on the Opening of Mid-to-high-end and Above Hotels" launched by Milestone Research Institute, the current first-tier and new first-tier cities are still the competition ground for various high-end hotel brands, but they also show trends such as market sinking, increasing investment enthusiasm in niche characteristic cities and tourist destination cities.
For example, in 2023, driven and influenced by the Asian Games, three luxury hotels will open in Hangzhou within a year. In January, Hotel Indigo Hangzhou Tianmu Mountain openedIn September, Hangzhou Xiaoyuan Radisson Plaza Hotel opened;In November, the heart of Hangzhou Huaxia Hotel opened. It is worth noting that the Park Hotel, Waldorf Astoria, Mandarin Oriental and Rosewood Hotels are also located in Hangzhou, which indicates that the future of Hangzhou's luxury hotel market is promising.
Speaking of the sinking market and characteristic tourist cities, we can get a glimpse of them from the current layout of Hyatt Reserve and Hyatt Shangxuan in China. For example, the Hyatt Collection Lijiang Jinmao Hotel is located in the core area of the old town of LijiangThe life boutique business district and the high-end villa area are connected, close to Shuhe Ancient Town, with the Jade Dragon Snow Mountain as the backgroundStone Hot Spring Resort, the full name of Tengchong Kuma Kengo Stone Hot Spring Villa Resort, is the second Hyatt Collection brand hotel in China, located at the foot of Yunfeng Mountain Primitive Forest Park, Yunfeng Village, Tengchong DiantanLocated in Taoxichuan, Jingdezhen, Hyatt Collection Jingdezhen is China's first one-stop cultural, leisure, entertainment, tourism and creative park with the theme of ceramic culture.
Conclusion:According to incomplete statistics from the Milestone Research Institute, there will be a total of 138 hotels with auctions of more than 100 million yuan in 2023, including internationally renowned brands such as Sheraton, Fairmont, and Westin. These successive large hotel deals do not necessarily seem to be a bad thing for the luxury hotel market behind them. After all, in the future luxury hotel market, after the reshuffle, the overall quality will reach a new level, and the market vitality will be further reactivated.
At the same time, it should not be ignored that large transactions surrounding hotels will continue to occur for a certain period of time in the future. As Lu Qiang, executive director of the capital market department of Cushman & Wakefield East China, said when looking at the sale of the Bulgari Hotel in Shanghai, this fully shows that under the premise that foreign capital is cautiously investing in bulk properties for various reasons, various domestic capital is paying attention to the best opportunities in first-tier cities in this cycle.