Over the past year there have been rumors that the owner of the Grand Hyatt Taipei property might leave the Hyatt portfolio and that the brand would either move to another location or leave the city entirely – this has now finally been clarified and the GH Taipei will remain as it is.

Right adjacent in Xinyi, behind the Taipei 101 tower there are also a Park Hyatt and Andaz property in the works but until now it’s unclear when these two properties will open – if at all.

The Singaporean company which owns the Grand Hyatt Taipei has decided to extend the management contract with Hyatt, likely in the light that the developer of the originally planned Andaz and Park Hyatt are now considering to scrap the hotel project entirely and instead go for office space in the busy Xinyi district.

Earlier last month the Taipei Times already wrote about the extension of the contract and a personal contact at the hotel now confirmed to us that the Grand Hyatt will remain as is for the future to come (at least until this new contract expires.

Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways.

“We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). …

The Grand Hyatt Taipei (台北君悅大飯店), owned and built by Hong Leong Hotel Development and affiliates, earlier sought to end cooperation with US hotel chain Hyatt Hotels Corp, which in 2018 inked a pact with private equity fund Riant Capital Ltd (子樂投資) to launch two sister brands nearby — Park Hyatt and Andaz, local media reported.

Hong Leong was reportedly worried that there would be excessive competition among similar brands.

Riant Capital now favors developing office spaces rather than hotel rooms for its upcoming Taipei Sky Tower (台北天空塔) project, which is where CTBC Financial Holding Co’s (中信金控) headquarters used to be, local media said.

Rent rates for office space have increased significantly in Taipei’s prime Xinyi District (信義), as there is no new supply, while there is solid leasing demand from international technology and financial companies, property analysts have said.

Grand Hyatt Taipei, which turns 30 next month, was the nation’s first international hotel brand and remains the largest by number of rooms at 850.

Hong Leong has committed to the local government and community by investing in the hotel’s staff and its physical assets, as evidenced by its renovation of facilities, Kwek said.

“Grand Hyatt Taipei has become an icon and we are confident it will continue to shine and serve local and international guests well,” he said.

First of all I’m glad that the Grand Hyatt will stay because despite it’s size it’s one of my favorite hotels. I know the property receives mixed reviews among travelers but I have always felt well taken care of there and I like the location as well as their Premier Corner rooms with T101 view (I prefer those to a suite at this property).

What disappoints me is that the Andaz and Park Hyatt are more likely than not history that got beyond a blueprint. I was really looking forward to these two brands in Taipei but the skyrocketing real estate prices in the area probably killed the project and the developer now favors a simple office space rental as mentioned in the article.

It does make sense from an owner/developer perspective. Why bother about hotel occupancy rates and property management when you have customers lining up around the corner to rent commercial real estate?

Next to the Grand Hyatt the chain is currently offering the Hotel Eclat to their customers, the property is a member of Small Luxury Hotels of the World.

Conclusion

Time will tell if Hyatt is going to explore more options in Taipei but if that is the case it will more likely than not be in such a prime position as originally planned for the Andaz/Park Hyatt. The high demand for real estate makes it almost prohibitive to develop a new hotel there unless it could commandeer an extremely high ADR and Taipei isn’t the market for that. I’d say the market bottoms out are ~ US$275-300 per night for the luxury segment.

Maybe by some miracle the project will be revived but I don’t believe it for now. Most importantly the Grand Hyatt stays, I was seriously worried about that.

Continue Reading: Source Link

LEAVE A REPLY

Please enter your comment!
Please enter your name here