Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
Olympics, other major events spotlight Japan’s hotels
Japan’s hotel industry is gearing up to host an influx of travelers expected to arrive along with the 2020 Summer Olympics in Tokyo later this year, reports HNN’s Terence Baker. The nation’s hotel industry successfully hosted the 2019 Rugby World Cup and the G20 Summit in Osaka last year.
While the industry is excited about this opportunity, hoteliers are taking care to approach the Olympics and what might come afterwards with due care.
“Everyone is talking Japan, Japan, Japan, Japan, Japan,” said Hirohisa Fujimoto, senior director of development, Japan and Micronesia, at Hilton.. “Yes, it is good country, but you have to be patient. Make sure you are proactive in communication with owners, and give all partners the information required about your rationale.”
STR: Asia/Pacific hotel performance for 2019
Hotels in the Asia/Pacific region reported negative year-over-year results for the full-year 2019, according to data from STR, parent company of HNN. Occupancy fell 1.3% to 69.3%, and average daily rate dropped 2% to $98.73, resulting in revenue per available room falling 3.2% to $68.38.
Australia’s hotels challenged by new supply, wildfires
Hoteliers in Australia are cutting rate to cope with a new glut of supply in the country, HNN contributor Tamara Thiessen reports. Along with handling increased supply, Australian hotels lost business because of the then-spreading bushfires that caused evacuations of residents and travelers.
Preliminary numbers from STR show that bushfires created a 14.7% year-over-year drop in demand for the Sydney Drive Regional, a submarket within a two-hour-drive radius of Greater Sydney. The drop in demand led to a 14.5% drop in occupancy to 52.2%, a 18.4% drop in ADR to 194.74 Australian dollars ($131.56) and a 30.3% drop in RevPAR to AU$101.48 ($68.56).
Deals and developments
- InterContinental Hotels Group announced plans to open an additional 1,200 hotel rooms in Thailand following an agreement with Thai owner Asset World Corporation.
- Germany’s DWS Group GmbH & Co. joined with Australia’s Pro-Invest Group to acquire the 144-key Sebel Canberra Hotel for AU$48 million ($32.4 million).
- Japan’s Hotel Management Japan Company Limited announced a joint venture of its sister company, HMJ International Company Limited, and Indonesia’s Topotels Hotels & Resorts, to create P.T. HMJ International Indonesia, to expand growth opportunities for HMJ.
- South Korea’s Hana Financial Investment Company Limited and Hotel Lotte Company Limited have acquired the 189-room The Hotel at The Mark from U.S.-based Stockbridge Capital Group in a 70-30 real estate investment trust for $175 million.
- Australian luxury brand Silkari Hotels acquired the management rights of the 175-room Oaks Lagoon in Port Douglas.
Compiled by Bryan Wroten.