Bonvests joins Perth hospitality stampede

Yet another Asian group has plunged into the nation’s hotel scene with the Singapore-listed Bonvests Holdings believed to be paying about $100 million to buy Perth’s Sheraton Four Points hotel in its first Australian deal.

Founded 25 years ago, the listed Bonvests Group is no stranger to the hospitality industry — it owns the Sheraton Towers Singapore Hotel as well as several luxury resorts in Tunis, Mauritius, Zanzibar and the Maldives.

But like Asian businesswoman Christina Ong, who has recently decided to introduce COMO ­Hotels and Resorts to the West Australian capital, Bonvests wanted a foothold in Perth, despite the softening mining boom.

American hospitality operator Marriott International also wants a piece of the action in Perth’s hotel scene, recently committing its Ritz Carlton brand to the city. Thailand’s Minor Hotel Group, which owns Australia’s Oaks ­Hotels and Resorts brand, said yesterday it was committed to expanding in Australia, recently announcing its plans to open two new Perth properties, AVANI Hotels and AVANI Residences.

Meanwhile, the joint venture owners of the Four Points By Sheraton, Singapore’s GIC, which owns 75 per cent, and American hospitality giant Host, which owns the balance, appear to have done well out of the deal.

The joint venture parties bought the property, once known as the Citigate Perth, for $61m in 2012 but have spent several million dollars refurbishing the 278-room hotel. The vendor’s representatives could not be reached for comment. Bonvests Holdings did not return calls, nor did the selling agent, CBRE director Wayne Bunz.

Apart from its hotel and resort holdings, Bonvests also owns nearly 79 per cent of Colex Holdings, one of Singapore’s leading waste management and contract cleaning companies.

Meanwhile, Ms Ong, wife of Malaysian hotelier Ong Beng Seng, will run a boutique hotel as the centrepiece of Perth’s redeveloped Treasury buildings.

But not everyone is keen on Perth, with several hospitality executives contacted by The Australian saying some investors and operators were turning cautious on Perth given the large amount of new hotel room supply mooted for the city and the simultaneous end of the mining boom, which had seen midweek hotel room prices jump to $1000-plus a night.

Source The Australian  Lisa Allen and Ben Wilmot  June 30th 2015