Read the latest news from around the Asia-Pacific region.
Marriott CEO 'Encouraged' by Resilience of Travel Demand
During Marriott International’s second quarter earnings call, CEO Tony Capuano said Mainland China was the first major market to see revenue per available room recover to pre-pandemic levels, reports HNN’s Bryan Wroten. Occupancy reached 71% in April and 68% in May before falling to 60% in June due to COVID-19 outbreaks and lockdowns. Demand recovered after restrictions eased, and Marriott expected July RevPAR to exceed 2019 levels.
“Perhaps most encouragingly in April, for the first time since the pandemic began, leisure transient, business transient and group room nights in Mainland China were all ahead of 2019 levels,” Capuano said. “This is especially impressive given the absence of international arrivals due to stringent border restrictions.”
IHG's Barr Teases New Luxury, Lifestyle Brand as Signings, Pipeline Grow
Similarly, during IHG Hotels & Resorts’ recent earnings call reported on by HNN’s Terence Baker, CEO Keith Barr said, “We’re seeing significant improvement in the second quarter, sustained into July. There is much to be confident about when we look at Greater China and the U.S. and others of our major markets. Resort leisure demand is massive, but 2021 is a transitional year with a larger-than-usual removal rate.”
In Greater China, RevPAR was down 26% in in the first quarter compared to 2019 but down only 16% in the second quarter. IHG has 98,000 rooms in the pipeline in that region.
Capella Hotel Group CEO Details Leisure-Focused Asia-Pacific Expansion
In a video interview with HNN’s Danielle Hess, Capella Hotel Group CEO Nicholas Clayton said the hotel brand company’s luxury and lifestyle brands are prepared for growth in the Asia-Pacific region and around the globe.
The luxury Capella brand is well-positioned to grow in the Asia-Pacific and will target the Americas and Europe as well as the Middle East. New lifestyle brand Patina opened its first property May 18 in the Maldives.
"In the next five years, an Asia play for Patina would be most logical," Clayton said. "This is where we would probably create the foundations of the Patina brand and eventually grow into the Americas and Europe as well."
STR: Lockdowns Continue To Restrict Sydney Hotel Occupancy
Following the latest lockdowns related to COVID-19, hotels in Sydney, Australia, reported lower performance across all three key performance metrics, according to preliminary July 2021 data from STR, CoStar’s hospitality analytics firm.
Preliminary data shows occupancy of 18.7% with an average daily rate of 147.08 Australian dollars ($106.62), resulting in RevPAR of AU$27.44.
“The absolute occupancy level was the lowest for any month in STR’s Sydney database while ADR was the lowest since April 2020,” the news release states. “That occupancy level is concentrated to returning travelers who are completing their 14-day quarantine. STR’s latest Forward STAR data shows Sydney with lower occupancy on the books at the start of the month compared with the same time last year.”
STR: India’s Hotel Industry Continues To Regain Occupancy
India’s hotel industry reported an increase in occupancy thanks to COVID-19 vaccination efforts across the country, according to preliminary data and analysis by STR.
Daily hotel occupancy ranged between 20% and 30% in early June, but it grew closer to 35% toward the end of the month, even reaching 50.5% on June 26. Hotels in the country saw occupancy range between 40% and 60% through July, peaking at 63.2% on July 17.
“The progressive approach to vaccinations has led to an increase in travelers and hotel demand—leisure demand continues to drive this growth,” said Vidhi Godiawala, STR’s business development manager for Central and South Asia. “Beyond the noticeable improvement, we have seen a different trend in where the country is regaining occupancy. Whereas India’s first recovery earlier this year was concentrated in leisure destinations, such as Goa, heavily populated markets such as New Delhi and Mumbai have seen improvement in this latest rebound.”
Deals, developments, people on the move
- Australia’s IMG Investments will develop the 344-room Pullman hotel for AU$120 million in Melbourne.
- Switzerland-based Partners Group and Singapore sovereign wealth fund GIC are working with Australian operator Salter Bros. to acquire a seven-hotel portfolio of Australian Travelodges for AU$620 million.
- Hawaii-based Outrigger Hospitality Group acquired the Manathai Hotels and Resorts brand, which includes the Manathai Koh Samui, Manathai Khao Lak and Manathai Surin Phuket, in southern Thailand.
- Hong Kong-based The Pavilions Hotels & Resorts announced its new hotel brand, Explorar Hotels & Resorts. It’s first property, the 24-room Explorar Pawapi Koh Mook is scheduled to open Oct. 1.