AP Hospitality Bulletin Asia Pacific - March 2026

Deal watch.

YOTEL

On 19 March, 2026, YOTEL, a hotel group founded in the UK that emphasizes on smart design and new technology, announced an exclusive agreement with Hilton to join their new collection brand “Select by Hilton” under a franchise format. Hilton's newest soft brand will be a selection of independent brands which allows them to retain their independent identities, while being able to access Hilton’s loyalty program.

Currently, there are 23 properties operating under the YOTEL brand name across 10 countries with properties in major cities such as New York, Glasgow, Tokyo, Singapore, and Amsterdam. The move can be seen as Hilton's effort to compete head-to-head in the compact hotel class after Marriott's takeover of the CitizenM brand.

Atlantis Sanya

Fosun International, a Shanghai based conglomerate, submitted application to spin off the 1,314-key Atlantis Sanya Resort and its water park via a listing as a REIT on the Shanghai Stock Exchange. This move from the Fosun Group aims to raise RMB13.9 billion (US$2.0 billion) in capital by monetizing one of their main tourism assets to lower their debt burden of RMB222.1 billion (US$32.1 billion). However, this plan is still subject to regulatory approval from the Shanghai and Chinese governments. If the listing is approved, it would be a notable listing from China’s hospitality sector as it will be one of the first hotel-backed REIT listings and the first single-asset REIT. Observer will be most keen to understand the yield's being offered - AP foresees it falling in the 4-6% range.

Transactions that matter.

Novotel & Ibis Darling Harbour, Sydney

Sydney-based real estate investment fund Wentworth Capital, backed by Hong Kong's real estate powerhouse Sun Hung Kai, has announced a AU$390 million (US$274 million) acquisition of two properties from Abu Dhabi Investment Authority (ADIA). Included in the deal are the 35-year-old, 525-key Novotel Sydney Darling Harbour and the 31-year-old, 256-key Ibis Sydney Darling Harbour. The yield of 6.0% is considered by some as a bargain in a tight Sydney hotel market typically ranging around 4.8%. However, these older properties will require substantial CapEx and are likely to struggle driving average rates in a secondary location. ADIA had first put the properties up for sale in 2021 during the pandemic, at an asking price of AU$500 million. While the hotel market recovered to 85% occupancy by now, ADIA had to trim their expectations significantly. Some tout the deal at being 50% below replacement cost, yet that is similar to any old hotel in Sydney. What's more telling, while the Novotel is freehold, the Ibis is a strata-title.

Regal Oriental, Hong Kong

A landmark transaction in Hong Kong's most active real estate play in the current market. Hong Kong’s largest property agency’s investment arm, Centaline Investment, acquired the 494-key Regal Oriental hotel for HK$1.5 billion (US$194 million), or HK$3.0 million (US$390,000) per key, or HK$6,250 (US$800) per square foot. Centaline Investment also revealed plans to spend up to HK$2 billion (US$258.7 million) or HK$8,333 (US$1,063) per square foot to convert the property into student housing. The sale of the property comes in roughly 8% below the appraisal by Regal REIT's valuer Knight Frank as of 31 December 2025. Regal REIT took the decision to divest the asset in response to a reported HK$508 million loss in the first half of 2025, thus lowering their interest expense.