Lodgis Hospitality Completes Acquisition of Two Luxury Hotels in Cambodia
Lodgis Hospitality, a fully integrated hospitality platform sponsored by Warburg Pincus and VinaCapital, has completed the acquisition of two historic landmark hotels in Cambodia, the 175-key Raffles Hotel Le Royal Phnom Penh and the 119-key Raffles Grand Hotel d’Angkor Siem Reap.
With the acquisition of the two Raffles Hotels, the company’s maiden acquisition outside of Vietnam, Lodgis now owns one of the largest collections of luxury historic hotels in the Indochina region as well as a growing resort and hotel management business under the Fusion brand.
Peter T. Meyer, Chief Executive Officer of Lodgis, said, “We are very excited with the acquisition of the two historic Raffles hotels in Cambodia. Together with the Metropole in Hanoi, Lodgis now owns an irreplaceable Indochina heritage hotel portfolio that allows us to achieve significant synergies on both marketing and operations to better serve the rapidly-developing tourism market across Indochina. We see tremendous upside potential for both assets with a highly targeted capital expenditure program to transform the hotels back to their grand stature. Given our close working relationship with Accor as well as our strong in-house expertise, we are confident the hotels will create long-term value for Lodgis and be very well positioned for the overall Indochina market.”
In 2017, Cambodia welcomed 5.6 million international visitor arrivals, representing a year-on-year growth of 11.8% on the back of a strong 10-year CAGR of over 10%. Phnom Penh and Siem Reap attracted the largest share of international visitors in the country with 49% and 38% share, respectively.
Notably, over 1 million Chinese tourists visited Cambodia in 2017, representing growth of 45% year-on-year and making Cambodia one of the fastest growing frontier markets for Chinese outbound tourists in Southeast Asia alongside Vietnam.
With increasing direct flights and the government’s strong push towards tourism, the industry is expected to continue its strong upswing in 2018 with at least 6 million international visitors on top of the projected 15 million domestic tourists, reaching an anticipated US$4 billion in revenue. In addition to tourism, foreign direct investment in the country reached US$6.3 billion in 2017, translating to a 75% year-on-year increase.
source: Travel News Asia