Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
Occupancy rises, rates remain flat
Hotels in the Asia/Pacific region experienced mostly positive results during May 2014 when reported in U.S. dollars, according to data compiled by STR Global, sister company of Hotel News Now. /Article/13939/STR-Global-Asia-Pacific-results-for-May-2014
The region’s occupancy for May rose 3.2% to 67.6%; its average daily rate was virtually flat, up 0.1% to $115.10; and its revenue per available room increased 3.3% to $77.80.
Strong performers in the region included the Philippines, which recorded a 13.7% rise in occupancy to 70.6%, and Indonesia, where ADR rose 10.7%.
Three markets reported RevPAR increases of more than 15%: Osaka, Japan, up 19.6%; Hong Kong, up 16.7%; and Shanghai, up 16.4%.
Development pipeline includes 2,336 hotels
The Asia/Pacific hotel development pipeline comprises 2,336 hotels under contract totaling 521,017 rooms, according to the May 2014 STR Global Construction Pipeline Report. The under contract data includes projects in the in construction, final planning and planning stages but does not include projects in the unconfirmed stage. /Article/13883/STR-Global-AsiaPacific-pipeline-for-May
Shanghai has the largest number of rooms under construction with 9,028 rooms in 37 hotels. Five other markets with more than 5,000 rooms under construction include: Manila, Philippines (6,456 rooms in 21 hotels); Jakarta, Indonesia (6,152 rooms in 26 hotels); Chengdu, China (5,869 rooms in 22 hotels); Bali, Indonesia (5,798 rooms in 42 hotels); and Delhi-NCR (5,297 rooms in 28 hotels).
Market report: Hot Turkey carved into four
The main requirement to properly navigate Turkey’s disparate hotel landscape is a firm sense of what brand product best fits each of the country’s four main markets, according to two panels last month at the 2014 Turkey & Neighbours Hotel Investment Conference (known by its Turkish acronym CATHIC), writes HNN’s Terence Baker. /Article/13921/Market-report-Hot-Turkey-carved-into-four
Istanbul, by far, leads the charge, with the other three markets being: the Turkish Riviera, secondary cities (including capital Ankara) and the Turkish Republic of Northern Cyprus—usually referred to as North Cyprus and regarded by Turkey as a separate country.
The panelists agreed one problem common to all four locations, but especially for seasonal destinations, is the lack of qualified staff, especially at lower levels. The hotel sector in Turkey, they said, does not need additional university graduates.
Starwood to open 4 luxury hotels in China
Starwood Hotels & Resorts Worldwide plans to open four luxury hotels in China by the end of 2014, according to a news release. http://www.businesswire.com/news/home/20140619005047/en/Starwood-Hotels-Resorts-Set-Double-Luxury-Portfolio#.U7GR2sRDtXE
The openings will be the 279-room St. Regis Chengdu, the 353-room W-Beijing Chang’an and two Luxury Collection properties: the 205-room Azure Qiantang in Hangzhou and the 292-room Castle Hotel in Dalian.
In the past three years, Starwood has doubled its portfolio of luxury hotels in China and expects to double it again by the end of 2015.
Business travel spending grows in India
Business travel spending in India will increase 2.1% in 2014 to $24.9 billion, according to a report from the GBTA Foundation, the research unit of the Global Business Travel Association.
According to the “GBTA BTI outlook-India report,” business travel spending will rise 7.6% to $28.8 billion in 2015. During the next five years, the country is expected to become the ninth largest business travel market, up from 10th largest in 2013. http://www.gbta.org/PressReleases/Pages/rls_060514.aspx
Domestic business travel spending, which represents 90% of the total, will grow 2.2% this year and 7.7% in 2015. International outbound business travel spending is expected to increase 1.1% in 2014.
Louvre plans 30 hotels in Indonesia
Louvre Hotels Group has announced an aggressive expansion strategy for Indonesia with plans to open up to 30 hotels within the next three years under the Golden Tulip and Première Classe brands, according to a news release. http://www.louvrehotels.com/sites/default/files/040614-louvre_hotels_group_reveals_major_expansion_plan_in_indonesia.pdf
The announcement follows Golden Tulip's entry into the market in late 2012. Since then it has opened the 138-room Golden Tulip Galaxy Banjarmasin with a further six hotels for an additional 1,286 rooms under development with plans to open this year.
Deals and developments
• Shenyang Huaqiang Jinlang City Square Properties Limited will develop a 280-room W Hotel in Shenyang, a province in northeast China. The hotel is scheduled to open in 2019.
• Yuecai Holdings (Beijing) Company Limited opened a 412-room JW Marriott in central Beijing. It is the brand’s seventh hotel in the country.
• A second Best Western opened in Cambodia, the Best Western River Palace Hotel in Phnom Penh. The brand also has a property in Siem Reap.
• Prestige Group opened the second Aloft Hotel in Bengaluru, India, a 191-room property in the Cessna Business Park.
• Ferguson Hotel Holdings will rebrand the Hotel Nikko Hong Kong to the New World Millennium Hotel. The 464-room property will undergo a phased $15.5-million renovation.
• A 175-room Marriott opened in Novosibirsk in western Siberia, Russia. It is the brand’s second hotel in Siberia and 15th in Russia.
• Starwood Hotels & Resorts Worldwide signed an agreement with IOI Properties Group to manage two hotels in Malaysia: a 249-room Four Points by Sheraton in Puchong and a 350-room Le Meridien in Putrajaya.
• Meteorite Land (Pearl River) Pty Limited will develop a 269-room Four Points by Sheraton in Melbourne, Australia. Hiap Hoe Limited will operate the property, which opens in 2017.
• The first Andaz Hotel in Japan opened in Tokyo. The 164-room property is on the top six floors of the 52-story Toranomon Hills Tower.
• Verny Capital will develop a 157-room Ritz-Carlton Hotel in Astana, Kazakhstan. It is the brand’s second property in the country.
• Hilton Worldwide Holdings signed a management agreement with Eden Group for five Hilton properties in Myanmar. Under the agreement, two of Eden Group’s existing hotels in the country will be rebranded as Hiltons in October, and three other hotels will open in the next three years.
Complied by Ed Watkins.