Each week, HotelNewsNow.com features a news roundup from a different global region. Today’s roundup covers the Asia/Pacific region.
Asia/Pacific hotel performance
In year-over-year measurements, the Asia/Pacific region’s occupancy fell 1.1% to 67.5%, its average daily rate rose 3.7% to $140.44 and its revenue per available room was up 2.5% to $94.74, according to data from STR Global, sister company of HotelNewsNow.com.
Highlights from key market performers for September 2012 in U.S. dollars (year-over-year comparisons):
- Three markets experienced double-digit ADR increases: Jakarta (+14.6% to $104.36); Taipei (+12.9% to $191.31); and Seoul, South Korea (+10.3% to $189.90).
- Auckland reported the largest ADR decrease, falling 36.5% to $110.44. The market also reported the largest RevPAR decrease, down 38.3 % to $77.48.
- Four markets achieved RevPAR increases of more than 10%: Jakarta (+30.5% to $83.53); Hanoi (+13.4% to $67.97); Melbourne, Australia (+12.9% to $140.85); and Tokyo (+10.6% to $156.15).
Regional hotel supply
The Asia/Pacific hotel development pipeline comprises 1,671 hotels totaling 377,397 rooms, according to the September 2012 STR Global Construction Pipeline Report.
Among the region’s countries, India and the Philippines reported the largest expected room growths (+29.8 percent) if all the rooms in their respective total active pipelines were to open. India has 54,738 rooms in its total active pipeline, while the Philippines have 11,369 rooms.
Shareholder offers $1.86b to buy Orient-Express
A subsidiary of the Tata Group, Indian Hotels Company Limited, has filed an all-cash offer to purchase Orient-Express Hotels Limited at $12.63 per share, representing a value of $1.86 billion.
Indian Hotels Company is the hotel operating company of the Tata group and already owns 6.9% of Orient-Express shares. IHCL and its subsidiaries, collectively known as Taj Hotels Resorts and Palaces, comprise 99 hotels in 56 locations across India and an additional 16 international hotels.
There are 120.94 million shares of Orient-Express outstanding. The company’s market capitalization as of 29 October at 3:30 p.m. Eastern Daylight Time was $1.4 billion.
In a letter to Philip R. Mengel, Interim CEO of Orient-Express, representatives of Tata refer to a meeting in August the two companies had to establish a private transaction. Orient-Express at that time was not interested, the letter states.
Aston launches new select-service brand in Indonesia
Aston International recently unveiled a new select-service brand in the Indonesian market called NEO, which already has more than 20 properties already under development.
“The modern consumer regards an economy class but well designed, interesting hotel as an acceptable alternative to larger and more expensive 4- and 5-star hotels,” said Norbert Vas, VP of sales and marketing for Aston International. He added that the first NEO will open in November in Bali’s resort village of Legian followed by five other NEO properties in Bali, six more in and around Jakarta and further ones in secondary and tertiary cities throughout the Indonesian archipelago including Yogyakarta, Medan, Surabaya, Makassar and Balikpapan.
Wyndham announces 16 hotels in India and Indonesia
Wyndham Hotel Group signed deals in October for 16 hotels throughout India and Indonesia and announced the launch of the extended-stay Hawthorn Suites by Wyndham brand in India.
Of the 16 hotels announced, 12 will be opened in India under the Days Inn, Hawthorn Suites by Wyndham, Howard Johnson and Ramada brands and four will be opened in Indonesia under the Howard Johnson and Ramada brands.
The hotels due to open in India are the following: Days Jodhpur Chopasni, Hawthorn Suites by Wyndham Amritsar GT Road, Howard Johnson Bhubaneshwar Bomikhal, Howard Johnson Hyderabad Banjara Hills, Howard Johnson Tirupati Settipalli, Howard Johnson Lucknow Gomti Nagar, Howard Johnson Mumbai Andheri, Howard Johnson Shirdi Nimgaon, Ramada Jamshedpur Bistupur, Ramada Encore Kolkata New Town, Ramada Trivandrum Palayam and the Ramada Chennai Egmore
In Indonesia, Wyndham Hotel Group will add the following hotels: Howard Johnson Bali Benoa, Howard Johnson Surabaya East, Howard Johnson Makassar Central and the Ramada Bali Lake Buyan.
China’s economy to continue slowing
China’s economy has slowed in lockstep with Europe’s woes, and the Global Business Travel Association forecasts China’s gross domestic product will grow by 7.8% in 2012, down from 9.2% GDP growth in 2011, according to the GBTA’s second BTI Outlook–China.
Other highlights from the report include:
- Chinese authorities have managed their economy through the global slowdown, with the economy being purposely rebalanced toward domestic growth.
- Chinese business travel will continue to show strong growth during the next 18 months, with total business travel spending forecast to grow by 12.5% in 2012 to $195 billion, followed by another 14.7% in 2013.
- Domestic business travel will recover sooner and more strongly than global outbound. In 2012, domestic travel spend will grow by 12.8%. It is expected that in 2013 domestic spend will grow 14.6% reaching $213 billion.
- Welf J. Ebeling, regional director of GBTA Asia, said, “The slowdown in economic growth, attributable to the worsening situation in Europe, has been of concern to the Chinese population. The good news, however, is that the Chinese government is responding.”
Sri Lanka, Myanmar emerge as Asia's top markets
Sri Lanka and Myanmar are the top emerging hotel and resort markets in Asia, reports HotelNewsNow.com’s Jeff Higley. The two countries were mentioned throughout the Hotel Investment Conference Asia Pacific.
Sri Lanka, the island nation located off the southeastern coast of India with a population of approximately 20 million, is gaining momentum after a lengthy civil war kept hotel development at bay for many years.
Kevin Wallace, president and CEO of Dubai-based JA Resorts and Hotels, is high on Sri Lanka as his company looks to add to its roster of five resorts by expanding into tourism destinations in the Indian Ocean. “We find the system transparent,” he said. “You have the laws in place there, you have the land registry. You have opportunities along the coasts.”
Myanmar, formerly called Burma, is a country with plenty of potential due in large part to the 2011 change in leadership rule.
“Myanmar has a lot more from the natural resource standpoint, and I believe there are major companies that are looking to open up there but still from an infrastructure standpoint, they need to mature a little more before you actively put something before your investment committee,” said Suchad Chiaranussati, managing director of SC Capital Partners.
Key transactions, announcements
- Accor announced the 67-room Quay Grand Suites Sydney will rebrand to Pullman Quay Grand Sydney Harbour.
- Dusit International will open its first property in Guam with Tanota Partners. The 417-room Dusit Thani Guam will open in 2013.
- Banyan Tree Hotels & Resorts will open its first property in India in the first quarter of 2013 with the opening of the 59-room Banyan Tree Kerala.
- Accor opened the Ibis Styles Kuala Lumpur Fraser Business Park and Ibis Styles Kuala Lumpur Cheras in Malaysia.
- Hyatt Hotels announced a Hyatt affiliate entered into a management agreement with Sinolanka Hotels & Spa for the 475-guestroom Hyatt Regency Colombo in Sri Lanka. The hotel will also feature 84 serviced apartments.
- Swissôtel Hotels & Resorts announced the development of the 400-room Swissôtel Changsha in China.
Compiled by Stephanie Wharton.