Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
Demand returns, rate still struggles
Hotels in the Asia/Pacific region experienced mixed results during April 2014 when reported in U.S. dollars, according to data compiled by STR Global, sister company of Hotel News Now.
The region’s occupancy for April rose 1.2% to 68.8%; its average daily rate dropped 2.7% to $118.44; and its revenue per available room decreased 1.6% to $81.46.
Seoul, South Korea (+10.5% to 80.9%), and Shanghai (+10.2% to 74.9%) reported the largest occupancy increases. Three markets experienced RevPAR increases of more than 15%: Kuala Lumpur, Indonesia (+20.3% to MYR298.40, $92.46); Osaka, Japan (+19.1% to JPY11,923.69, $116.60); and Bali, Indonesia (+19% to IDR937,824.82, $79.72).
Development pipeline includes 2,321 hotels
The Asia/Pacific hotel development pipeline comprises 2,321 hotels totaling 516,261 rooms, according to the April 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.
In 2014, 430 hotels with 81,224 rooms have opened in the region. In the remainder of 2014, 497 hotels with 98,513 rooms are expected to open. The upscale segment is projected to open the most rooms with 23,084 rooms in 113 hotels.
Coup in Thailand hurts Bangkok hotels
A coup d’état is just the latest chapter in Thailand’s ongoing political tumult that has seen hotel occupancies decrease 30.7% during the first quarter, according to a report from HNN correspondent Susan Cunningham. While hotels in capital city Bangkok are most severely impacted, properties in resort markets such as Phuket and Pattaya are proving more resilient—and in some cases actually increasing average daily rate.
Tourism accounts for approximately 10% of Thailand’s gross domestic product, but the Tourism Council of Thailand forecasts that tourism earnings could drop 10% by year’s end.
During the first quarter, occupancy in capital city Bangkok decreased 30.7% to 55.2% compared to the same period in 2013, according to data from STR Global. ADR fell 0.6% to 3,221.60 Thai Baht ($98.32), and RevPAR decreased 31.2% to 1,778.42 Thai Baht ($54.28).
Neemrana Hotels brings old edifices to life
India’s old palaces, crumbling forts and historical havelis are getting a fresh lease on life under the umbrella of owner-operator Neemrana Hotels Private Limited, writes HNN correspondent Chitra Balasubramaniam. Founders Aman Nath and the late Francis Wacziarg’s unbridled enthusiasm for old buildings and restoration has seen the collection grow from just one fort palace to a chain of 30 properties.
“Somewhere in the beginning someone had asked me, ‘How many buildings do you hope to restore and run?’ And I had said 50 (properties) without a blink. We had got to 30 when Francis Wacziarg left us. (Wacziarg passed away on 19 February 2014), so we are beyond the halfway mark and shall certainly get there one day,” said Nath, who serves as the group’s co-chairman.
“The whole of India lies in ruins, so we can be as hopeful as we want to be,” he said.
Accor plans to double India portfolio by end of 2015
Accor SA plans to add 25 hotels in India by the end of 2015, doubling its portfolio in the country, according to a report in TravelTrendsToday.com. Sébastien Bazin, chairman and CEO of Accor, told the website that the company plans to grow in collaboration with partners.
Growth will come in the company’s economy, budget and midscale hotels. The company has invested in 15 properties and has management contracts on 10 hotels.
Deals and developments
- Hyatt Hotels Corporation recently opened three hotels in the Asia/Pacific region: a 144-room Hyatt Place in Shenzhen near Hong Kong; a 306-room Hyatt Regency in Tianjin on China’s northern coast near Beijing; and a 105-room Hyatt in Raipur, India.
- Movenpick Hotels & Resorts signed a management contract to operate a 167-room hotel in the southern Indian port city of Kochi. The property, which opens at the end of the year, will be Movenpick’s third in the country.
- Four Points by Sheraton opened its 22nd hotel in China, a 271-room property in Heifei, Shushan. The chain plans to open six more properties in China in the next 12 months. The first Four Points by Sheraton in Indonesia is scheduled to open in May 2015. IMB Group is developing the 261-room property in Makassar on the island of Sulawesi.
- The former Le Meridien Barbarons Beach Hotel in the Seychelles is closed for renovation and will reopen in the fourth quarter under Minor Hotel Group’s Avani brand.
- The Ritz-Carlton Hotel Company signed a management contract to operate its first hotel in Mumbai, India, a 238-room property being developed by Oberoi Realty and Sahana Group. The property is expected to open in early 2017.
Compiled by Ed Watkins.