Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
Development pipeline includes 2,352 hotels
The Asia/Pacific hotel development pipeline comprises 2,352 hotels totaling 528,109 rooms under contract, according to the August 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.
Among markets in the region, Jakarta, Indonesia, reported the most rooms under contract with 15,896 rooms. Four other markets reported more than 10,000 rooms under contract: Chengdu, China (13,251 rooms); Shanghai (12,763 rooms); Bali, Indonesia (12,737 rooms); and Manila (10,509 rooms).
Asia/Pacific shines in Marriott’s pipeline
Marriott International will more than double its number of rooms in the Asia/Pacific region between now and 2017, executives said during a recent investor day, reports HNN’s Shawn A. Turner.
Executives said the company could open as many as 1,300 hotels between 2014 and 2017, taking the global portfolio to as many as 5,000 hotels with 235,000 rooms in 100 countries.
Asia/Pacific is second only to North America in terms of the size of its pipeline, executives said. The region comprises 28% of the company’s pipeline through 2017, compared to 53% for North America.
Jen represents Shangri-La’s new road forward
Shangri-La is shifting strategies as it converts its legacy Traders brand into the more casual, youthfully oriented Hotel Jen, writes HNN’s Patrick Mayock. The first, the Hotel Jen Orchardgateway Singapore, was scheduled to open 15 September.
“When we first started looking at how the world was changing, how the traveler was changing, not only is there a younger and newer age group of holidaymakers and business travelers coming into the market, but because of this new traveler coming, the older and existing holidaymaker and traveler is actually becoming younger at heart and younger in style themselves,” said COO Lothar Nessmann.
Shui On Land sells hotel assets
Hong Kong-based Shui On Land is selling up to 1.6 billion renminbi ($256 million) of hotel assets in an attempt to cut debt and focus its business on development, according to a Bloomberg report.
The company, controlled by billionaire Vincent Lo, has agreed to sell The Hub Hotel for 965 million renminbi ($156.9 million) to Hong Kong’s Great Eagle Holdings.
In a statement, the company said it “does not enjoy any synergy from being a hotel owner” because it lacks its own hotel management arm.
Hony Capital buys stake in Jin Jiang International
Chinese private equity firm Hony Capital has proposed buying a 15-billion renminbi ($246-million) stake in Shanghai Jin Jiang International Hotels Development Company, according to a Reuters report.
The potential deal needs to be approved by China’s securities regulator.
New World Hotels adds Resorts to name
Hong Kong-based New World Hotels changed its corporate name to New World Hotels & Resorts to reflect its aim to add resort destinations in China and throughout the Asia/Pacific region.
The name change and new direction are part of the company’s strategic plan to triple the size of its portfolio within five years.
Deals and developments
- Hilton Worldwide Holdings opened the 320-room Hilton Istanbul Kozyatagi, the brand’s first property on the Asian side of Istanbul.
- Dusit Fudu Hotels & Resorts signed a deal to operate a Dusit Thani Hotel and a DusitD2 Hotel in Suining, Sichuan province, China.
- Fairmont Hotels & Resorts signed a deal for the development of the 350-room Fairmont Zhengzhou in Henan province, China.
- Hyatt Hotels Corporation entered into a management agreement with an affiliate of Boutique Group of Companies to operate a 161-room Hyatt Place in Phuket, Thailand, to open in 2016.
- During the next three years, Marriott plans to open 12 hotels in India under its Fairfield brand. The first Fairfield in India opened last year in Bangalore.
- The 329-room Renaissance Beijing Wangfujing opened, overlooking the Forbidden City. It is the brand’s 18th property in China.
- Wyndham Hotel Group opened two properties in China: the 565-room Wyndham Grand Xi’an South and the 300-room Wyndham Kumming Resort.
- The 279-room St. Regis Chengdu opened in Sichuan province, China.
- Shayher Leisure Holdings will open a 305-room W Hotel in Brisbane, Australia, as part of a mixed-use development. The hotel opens in 2018.
- The 172-room Holiday Inn Jaipur City Centre opened in the state of Rajasthan in India. It is the brand’s ninth in India.
- Hainan Jianfeng Tourism Development will build a W Retreat and a second St. Regis resort on the island of Hainan, China. The W opens in 2019 and the St. Regis in 2020.
- Action Hotels will develop a 368-room Ibis hotel in Brisbane, Australia. The hotel, which opens in 2016, will be the brand’s largest in the Asia/Pacific region.
- Accor signed a management contract for the Sofitel Sydney Darling Harbour Hotel in Sydney.
- KBZ Group of Companies and Jewellery Luck Company will open a 141-room Kempinski Hotel in Naypyidaw, Myanmar. The property, which opens in November, will be located in a high-security zone of the city.
- The 355-room Hyatt Regency Suzhou opened in Jiangsu province, China.
Compiled by Ed Watkins.