HotelNewsNow.com each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
Asia/Pacific data
The Asia/Pacific hotel development pipeline comprises 1,804 hotels totaling 387,179 rooms, according to the April 2013 STR Global Construction Pipeline Report. The total active pipeline data includes projects in the in construction, final planning and planning stages. STR Global is a sister company of HotelNewsNow.com.
Among the markets in the region, Manila, Philippines, reported the largest expected supply growth (43%) if all 9,968 rooms in the market’s total active pipeline open. Six other markets reported expected room growth of more than 10%: Mumbai, India (25.2% with 5,117 rooms in the active pipeline); Jakarta, Indonesia (23.8% with 8,115 rooms); Bali, Indonesia (19.7% with 7,587 rooms); Brisbane, Australia (13.9% with 1,698 rooms); Kuala Lumpur, Malaysia (11.7% with 3,611 rooms); and Phuket, Thailand (11.4% with 2,928 rooms).
Carlson Rezidor aggressive in APAC
Carlson Rezidor Hotel Group has signed the Radisson Blu Zhengzhou Huiji, China.
The Radisson Blu Zhengzhou Huiji is a 300-key hotel in Zhengzhou, the capital of Henan province in central China. Owned by Zhengzhou Mao Feng Real Estate Company Limited, the hotel is expected to open in the fourth quarter of 2014.
Carlson Rezidor also saw the opening of two new hotels and the addition of three hotels to its pipeline in the Asia/Pacific region during the first quarter. The company also signed a joint venture to establish a network of 20 Radisson and Park Inn by Radisson hotels in Indonesia.
Carlson Rezidor has a total of 163 hotels in operations and under development in Asia/Pacific.
7 Days Group grows through management
7 Days Group Holdings Limited continues to pursue an aggressive asset-light strategy that emphasizes the addition of managed properties over leased hotels, according to a report from HotelNewsNow.com’s Ed Watkins. During the first quarter, the economy hotel chain opened 82 hotels, including eight leased-and-operated properties and 74 managed hotels, company executives said during its first-quarter earnings call this month.
“The adoption of an asset-light approach with a focus on managed hotels allows us to shift to a model in which (net income) growth is driven by higher operating margins,” said CEO Yuezhou Lin. “This shift is in line with the development trends of the entire economy hotel industry, which enables us to optimize our revenue composition and improve overall profitability.”
At the end of the quarter, 7 Days had 1,427 hotels in 223 cities in China. The portfolio included 500 leased hotels and 927 managed properties. In addition, 223 properties (14 leased and 209 managed) are in the process of converting to the 7 Days flag.
IHG opens first Crowne Plaza in China
InterContinental Hotels Group opened the 520-room Crowne Plaza Resort Xishuangbanna, in Yunnan Province. The hotel is the company’s first Crowne Plaza Resort in China.
Xishuangbanna straddles the Lancang River on the border with Myanmar and Laos.
The resort has six food-and-beverage outlets, a fitness center, a heated indoor pool and an outdoor resort pool that flows through the resort. Tennis courts, outdoor exercise areas and private shade retreats are scattered around the gardens.
Economic woes take toll on Home Inns
China’s continued macroeconomic softness dampened Home Inns & Hotel Management’s operating performance during the first quarter, according to a report from HotelNewsNow.com’s Shawn A. Turner.
Home Inns took hits to revenue per available and rate during the first quarter as China’s economy softened, executives said during an earnings call with analysts this month.
RevPAR edged down to 132 renminbis ($21.31) from 132 renminbis ($21.47) during the first quarter a year ago and average daily rate slipped by 4.3% to 156 renminbis ($25.40). China’s gross domestic product grew at a rate of 7.7% during the first quarter, lower than the 8% growth rate that economists had expected, according to a report in the Wall Street Journal.
Ahn Luh brand expands in China
Ahn Luh expanded its presence in China with the signing of hotel management contracts with the Qinsen Group.
Hotel management group General Hotel Management, alongside Beijing Tourism Group and China-based Great Ocean Group, launched the Ahn Luh brand in May 2012.
The agreements cover two upscale hotels: Ahn Luh Lanting, scheduled to open in fall 2014, and Ahn Luh Zhujiajiao, opening in spring 2015.
Ahn Luh Lanting will be a 99-key development incorporated into 35 heritage houses in Shaoxing, 30 minutes from Hangzhou in the province of Zhejiang. Ahn Luh Zhujiajiao, named after a historic area in Shanghai’s suburbs, will consist of 35 villas built in traditional Chinese style.
China Lodging stresses ‘manachised’ growth
Executives from China Lodging Group on the company’s first-quarter earnings call stressed the amount of focus that will be placed on their “manachised”—or managed and franchised—business moving forward, according to a report from HotelNewsNow.com’s Jason Q. Freed.
The typical hotel model in China has been that real estate developers both own and manage their assets. But that is rapidly changing, led in part by large, domestic hotel chains such as China Lodging and the intrusion of global players.
China Lodging operates in China under the leased-and-operated and franchised-and-managed models. Under the lease-and-operate model, the company directly operates hotels typically located in leased premises. Under the franchise-and-manage model—also known by the relatively new term “manachised”—the company manages franchised hotels and collects fees from franchisees.
DoubleTree enters Australia
Hilton Worldwide introduced DoubleTree by Hilton to Australia when it rebranded four Northern Territory hotels on 1 May. The country’s first three DoubleTree by Hilton hotels: DoubleTree by Hilton Darwin, DoubleTree by Hilton Esplanade Darwin, DoubleTree by Hilton Alice Springs will open alongside Hilton Darwin in the territory.
Darwin is the capital of the Northern Territory and the gateway to legendary outback destinations such as the Kakadu National Park and the Katherine Gorge. Alice Springs is located in the red center of the vast Australian continent and is the departure town for visiting Australia’s famous red rock Uluru, a five-hour drive from the city center.
Hilton’s area GM for the Northern Territory, Martin Kendall, will have overall responsibility for all four hotels.
Wyndham enters Singapore
Wyndham Hotel Group has entered Singapore with the opening of two properties: Ramada Singapore at Zhongshan Park and Days Hotel Singapore at Zhongshan Park.
Both hotels, now opened and managed by Wyndham Hotel Group, are located at Zhongshan Park, the newest development area in Singapore.
Ramada Singapore at Zhongshan Park has 384 rooms and includes a full-service restaurant, fitness center, swimming pool, business center and pillar-less ballroom for events. Days Hotel Singapore at Zhongshan Park has 405 rooms, featuring a range of amenities including a full-service restaurant and a fitness center.
Compiled by Jason Q. Freed.