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Coffee and Croissants

A Portfolio of Hotels in Indonesia and Vietnam Sold for US$106.1 million in early June 2023

The portfolio comprises three properties, including the Pullman Jakarta Central Park with 317 rooms, the ibis Saigon South with 175 comfortable rooms, and the Capri by Fraser featuring 140 rooms. Notably, both the ibis Saigon South and Capri by Fraser are located in the vibrant city of Ho Chi Minh.


Strategic Hospitality Holdings Limited, the seller, sealed the deal with Everland Opportunities IX Limited. Under the terms of the agreement, Pullman Jakarta Central Park and ibis Saigon South will continue their operations under Accor management, operating as Pullman and ibis respectively. Capri by Fraser was sold with vacant possession, presenting an exciting opportunity for the new owners.



It's worth mentioning that Strategic had initially acquired this portfolio in late 2017 for a total of US$130.7 million, following an agreed-upon acquisition price reached in August 2016. The breakdown of the acquisition price in 2017 was as follows: Pullman (US$94.7 million), ibis (US$15 million), and Capri (US$21 million). At the time of the acquisition, the owners had expectations of annual returns ranging from 7.67% to 7.72%.


Over the years, the annual appraised valuation of Pullman Jakarta Central Park has shown some fluctuations. By December 2017, its appraised value had already grown to US$100.3 million, and it further increased to US$105.4 million by December 2018. However, there was a decline from the peak appraised value, reaching US$87 million by late 2022.



The 317-room Pullman Jakarta Central Park is an internationally branded upscale lifestyle hotel situated in the heart of West Jakarta. With its prime location, the hotel provides direct access to Central Park Mall, one of the city's busiest shopping destinations, attracting approximately 50 million visitors annually.


This recent portfolio sale concluded with a final price of US$106.1 million, indicating a capital depreciation at a compound annual growth rate (CAGR) of -4.1% over the five-year period from 2017 to 2022.


 

About Writer

Ross Woods is a seasoned hotel investment advisor with over 30 years of global experience in hotel asset management, portfolio management, and hotel advisory services. Known for his collaborative-based consulting style that integrates a high level of strategic and analytical expertise, his “smarts” are sought by clients to solve complex issues, make better decisions and realize the highest risk-adjusted investment returns. His clients include banks, private investors, REITs and hotel management companies in the United States, South East Asia, Australasia, Europe, and Dubai.


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