Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
Performance declines in October
Hotels in the Asia/Pacific region experienced performance decreases during October, when reported in U.S. dollars, according to STR Global, a sister company of Hotel News Now.
Occupancy was down 0.6% to 72%; average daily rate fell 3.6% to $117.54; and revenue per available room decreased 4.2% to $84.65.
“Asia Pacific has seen positive growth for both supply and demand year to date, signifying the popularity of the region from a development and destination perspective,” Elizabeth Winkle, managing director of STR Global, said in a news release.
Asia/Pac pipeline
The Asia/Pacific region reported 2,433 hotels comprising 545,630 rooms under contract, according to the November 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 the countries in the region, China, reported the most rooms under construction with 147,991 rooms. Five other countries reported more than 6,000 rooms under construction: India (29,013 rooms); Indonesia (28,806 rooms); Malaysia (12,124 rooms); Japan (8,138 rooms); and Philippines (7,459 rooms).
Jin Jiang buys Louvre Hotels Group
Shanghai Jin Jiang International Holdings has agreed to buy Louvre Hotels Group from Starwood Capital Group, writes HNN’s Patrick Mayock. Terms of the deal were not disclosed, although reports put the value of the acquisition at more than €1.2 billion ($1.49 billion).
Accor, Europe’s largest hotel group, was also a bidder for the company, submitting at least one offer on 5 November.
Louvre has more than 1,100 hotels comprising 91,000-plus rooms in 47 countries. Its portfolio includes five brands from the 1-star Première Classe to the 5-star Royal Tulip.
Australian Argyle group unveils new China brand
Australian hotel group Argyle has established a new brand called Ausotel Smart that will target China’s emerging middle class, young adults and savvy business travelers, according to Travel Daily News Asia-Pacific. Argyle also announced it has opened its third office, located in Guangzhou, China.
Jeff Zhang, GM of the Guangzhou office, said the Ausotel brand will continuously develop in the mid-range Chinese hotel market, and there is a target of 150 Ausotel hotels over the next three years.
Argyle’s Ausotel brand already has a presence in China, with nine opened properties and seven in the pipeline. It also has the Metro Hotels brand and four brands with Argyle in their names. All its real estate is in the Asia/Pacific region.
Dalian Wanda in worldwide 150-hotel plan
Chinese property developer Dalian Wanda Group plans to build more than 150 premium hotels around the world by 2018 in an expansion of its luxury hotel business, according to Xinhua, China’s state news agency.
According to Reuters, Dalian Wanda Commercial Properties, a subsidiary of Dalian Wanda Group, plans to raise up to $6 billion in a Hong Kong initial public offering, which, Reuters reported in a separate news item, received approval from Chinese regulators. Targeted markets for the new hotels include Australia, Europe and the U.S., according to Reuters.
Deals and developments
- Sunshine Insurance Group bought the 557-room Sheraton on the Park in Sydney from Starwood Hotels & Resorts Worldwide. Purchase price was AUS$463 million ($399 million). Starwood will continue to operate the property as a Sheraton under a long-term management contract.
- Yunnan Shili Property Development opened the first Hilton Worldwide Holdings’ property in Yunnan Province, China, a 172-room Hilton Garden Inn in Lijiang.
- InterContinental Hotels Group signed a management agreement to develop a 200-room Crowne Plaza Hotel in Christchurch, New Zealand that will open in 2017.
- Fineland Group opened a 272-room Aloft in Guangzhou, China. The property is in the city’s Higher Education Mega Center.
- PT Pilar Prambanan Investama opened the 49-room Meliá Ubud in Bali, Indonesia. The hotel is Meliá’s 20th property in Asia/Pacific.
- Chhaya Devi Complex Primate Limited will develop a 175-room Aloft Hotel in Kathmandu, Nepal. When it opens in 2017, the hotel will be Starwood’s first property in the city.
- A 280-room Ramada Encore opened in Seminyak, Bali, as the brand’s first property in Indonesia.
- Accor signed an agreement with Goodman to operate a 229-room Pullman Hotel at the Sydney Airport. The hotel is scheduled to open in May 2016.
- China Oceanwide Construction Group opened the 509-room Sheraton Wuhan Hankou Hotel in Wuhan, the capital of Hubei Province, China.
- In early 2017, Unir Hotels will convert the Rydges Hotel in Perth, Australia, to a 240-room InterContinental Hotel.
- Following a multi-million-dollar renovation, M&L Hospitality converted the former Citigate Hotel in Melbourne, Australia, to the 180-room DoubleTree by Hilton Melbourne-Flinders Street.
- Hard Rock International will convert the North 16 Goa Resort in Goa, India, to the Hard Rock Hotel Goa. The new property opens in March 2015.
- The fifth Bulgari Hotel & Resort will open in early 2017 in Beijing’s Embassy District. The hotel will have 120 rooms.
- An affiliate of Hyatt Hotels Corporation signed a management deal with Fu Wah New Zealand for a 190-room Park Hyatt Hotel to open in 2017 in Auckland, New Zealand.
- Meritus Hotels & Resorts signed a management agreement with PT. Bali Seminyak Sejahtera to operate a 181-room resort in Seminyak, Bali, Indonesia. The property is scheduled to open in 2016.
- The 122-room Novotel Inle Lake Myat Min opened in Myanmar.
- The 453-room Hilton Haikou Meilan opened in Haikou, Hainan Province, China.
Compiled by Ed Watkins.