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December 15, 2011

SIPP completes Newport Creek acquisition

Chinese diversified holding company in the food, hotel and broadcasting industries, SIPP International, has completed the acquisition of Newport Creek Hospitality.

By Srivani Venna

Chinese diversified holding company in the food, hotel and broadcasting industries, SIPP International, has completed the acquisition of Newport Creek Hospitality.

The acquisition includes contracts to develop and manage hotels in Japan, and the company is projecting generating revenue from the acquisition from the first quarter of 2012.

SIPP International chairman of industries Gregg Pearson said the latest hotel development and management contracts in Japan will allow the company to generate additional contracts throughout Asia.

The first of three new hotel projects in Fujinomiya, Japan, is scheduled to complete in the first quarter of 2013. Upon completion of each hotel, SIPP will manage the location and receive monthly revenues for the duration of the contracts through its newly acquired subsidiary.

The Fujinomiya hotel will hold 150 full-service rooms. The occupancy rate for the first year, based on comparable analysis in the area, is predicted to be 70%.

The hotel project is expected to break ground in the first quarter of 2012.

The second and third hotels are located in Kyoto, Japan. The first of these two projects will be a 90-room boutique hotel converted from existing buildings at the site, with a target opening in the first quarter of 2013.

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