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HSBC Holdings Plc’s former Asia-Pacific equities head Rakesh Patel plans to raise a $50 million fund to invest in wellness hospitality real estate in Asia, targeting undervalued assets.

Former HSBC Asia Equities Head Plans Hospitality Assets Fund

10/28/2020 Bloomberg News

By Cathy Chan

(Bloomberg) — HSBC Holdings Plc’s former Asia-Pacific equities head Rakesh Patel plans to raise a $50 million fund to invest in wellness hospitality real estate in Asia, targeting undervalued assets.

 

The wellness tourism market is forecast to achieve a compound annual growth rate of nearly 7% between 2020 and 2025, reaching $1.1 billion in revenue by 2025.

 

Alta Capital Real Estate launched the Alta Hospitality Fund Asia to acquire boutique hotels, wellness retreats and villa communities with 50 to 150 keys, according to a press release. It will focus on Thailand, Vietnam, Indonesia, Sri Lanka, Malaysia, Korea and Japan.

The fund sees “an attractive entry point in the market cycle,” according to the statement.

The fund will invest in renovating and rebranding properties for the post-Covid world, in a bet on rising demand for travel related to wellness and sustainability. Alta aims to deliver an internal rate of return 15% to 25% over six years, including both greenfield and brownfield properties.

The wellness tourism market is forecast to achieve a compound annual growth rate of nearly 7% between 2020 and 2025, reaching $1.1 billion in revenue by 2025. Research from the Global Wellness Institute indicates that international wellness tourists on average spent $1,528 per trip, 53% more than the typical international tourists,
the release said.

The fund’s advisory board includes Michael Davies, founder and chairman of Teardrop Hotels, Brian Williams, former managing director and deputy chairman of Swire Hotels in Asia and Calvin Lee Kwan, head of sustainability at Link Asset Management Ltd.

Related ticker:
HSBA LN (HSBC Holdings PLC)

To contact the reporter on this story:
Cathy Chan in Hong Kong at kchan14@bloomberg.net
To contact the editors responsible for this story:
Candice Zachariahs at czachariahs2@bloomberg.net
Jonas Bergman, Jun Luo

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