Singapore-based Lodgis Hospitality, a joint venture between Warburg Pincus and Vinacapital, has acquired two hotels in Cambodia: The Raffles Hotel Le Royal Phnom Penh and the Raffles Grand Hotel d'Angkor Siem Reap.
The hotel purchases mark the company's first acquisitions outside of Vietnam. The Raffles Hotels were originally built in the 1930s. They reopened under the Raffles brand in 1997 following a major restoration program.
The 175-room Raffles Le Royal is in the capital city of Phnom Penh near the U.S. Embassy and severaly government offices, the Royal Palace and the Central Market. The second property—the 119-room Raffles Grand d'Angkor—is in the center of Siem Reap's French Quarter. The hotel is near the UNESCO World Heritage site of Angkor Wat. The two properties will undergo renovations again, which will include updating the guestrooms, dining outlets and the meeting facilities among other areas.
"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," Peter T. Meyer, CEO of Lodgis, said in a statement.
This latest purchase follows Lodgis' several hotel and resort acquisitions and developments in Vietnam, including the 365-room Sofitel Legend Metropole in Hanoi. The company has expanded its portfolio in the last 18 months to include more than 15 projects in operation and under development in gateway cities and international tourist destinations across the Indochina region.