$500 million in joint venture to invest in Europe; Overview of tourism in Indonesia – HOTELSMag.com
CPP Investments and Hamilton-Pyramid Europe create a joint venture: The Canada Pension Plan Investment Board (CPP Investments) and London-based Hamilton-Pyramid Europe have announced the creation of a new joint venture focused on the hospitality sector in Europe. CPP Investments has committed €475 million (US$481.63 million) to the joint venture. CPP Investments’ Real Estate group holds C$49 billion (US$37.9 billion) in properties worldwide. With initial capital commitments of €500 million ($506.98 million), the joint venture will acquire operating hotels in key gateway cities and select resort destinations across Europe. Partners will be able to increase allocations in light of market opportunities and allow the business to grow at its own pace.
Overview of tourism in Indonesia: The tourism and hospitality sector in Indonesia is expected to grow by $21.93 billion between 2022 and 2026, growing at a CAGR of 11.81% during the forecast period, according to the latest report from ResearchAndMarkets.com. One of the key market drivers is the growing preference for local and authentic experiences. The increase in the number of foreign tourists is one of the main reasons for the growth of the country’s tourism and hotel market in the coming years. The report provides market size and vendor analysis, forecasts and analysis based on 25 vendors.
Britannia Hotels acquires Glasgow Premier Inn: Britannia Hotels, Altrincham, England, has acquired the 278-room Premier Inn Glasgow for £8.5 million ($10.2 million) from British firm Whitbread. This addition will be Britannia’s 64e and takes its number of rooms to around 12,300. Whitbread is reconfiguring its hotel chain in Glasgow following the opening of the 249-key Premier Inn and Bar + Block restaurant last June. The deal was arranged by Christie & Co.
Decline in global transaction activity: With 73 deals announced in the global travel and tourism sector in July, industry deal activity fell 39.2% from the 120 deals announced in June, according to GlobalData. Most of the world’s major markets saw a drop in trading in July. Markets like the US and UK reported a 51.3% and 42.1% drop in trading volume, respectively, in July compared to June. Deal activity also remained depressed for markets like India, Spain, France, Germany and China. Announcements of mergers and acquisitions, venture financing and private equity deals fell in July. The number of M&A deals fell 42.9%, venture capital financing 37.5% and private equity 16.7% in July.
Perspectives from Sri Lanka: Sri Lanka’s travel and tourism sector, a major revenue generator, has been challenged by the current economic crisis, the Russian-Ukrainian conflict and China’s zero COVID policy, GlobalData reported. Tourism accounted for more than 12% of the country’s GDP in 2019 and the third source of foreign exchange reserves. International arrivals to Sri Lanka more than quadrupled from 448,000 to 1.9 million between 2009 and 2019, reaching a record 2.3 million in 2018. Simultaneously, inbound tourism expenditure increased from 394.4 million US$ in 2009 to US$3.6 billion in 2019, with a US$4.4 billion in 2018. The 2019 Easter bombings hit the travel industry first and tourism in Sri Lanka, with international arrivals down 18% year-on-year and tourist spending down 17.7% year-on-year. This was immediately followed by two years of COVID-19 restrictions, with inbound visitors in 2021 falling to 116,600, or 6% of pre-pandemic levels, and inbound tourism spending falling to 213.1 million of dollars. The Russian-Ukrainian war is expected to create an absence of tourists and international spending from these two countries for the foreseeable future.
Indian program for the hotel sector: India has announced an increase of INR 50,000 crore ($6.25 billion) in its Emergency Credit Line Guarantee Scheme (ECLGS) exclusively to boost the hospitality, travel and tourism sector struggling country with working capital loans. With this improvement, the total expenditure under the ECLGS now stands at INR 5 lakh crore ($62.56 billion). The government has announced that it will provide an additional loan guarantee of INR 7,500 crore ($938 million) for the recently announced scheme, which aims to extend working capital loans to all types of businesses across the country. hospitality, travel and tourism industry and the MSME actors in the sector.