Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
Asia/Pacific performance data
Hotels in the Asia/Pacific region experienced decreases in the three key performance metrics in May 2013 when reported in U.S. dollars, according to data compiled by STR Global, sister company of Hotel News Now.
In May, the Asia/Pacific region’s occupancy ended the month with a 1.3% decrease to 65.9%, its average daily rate dropped 2.5% to $119.69 and its revenue per available room was down 3.8% to $78.82.
Highlights from key market performers for May in local currency (year-over-year comparisons):
- Tokyo, Japan, rose 5.8% in occupancy to 85.4%, reporting the largest increase in that metric.
- Taipei, Taiwan (+16%), and Jakarta, Indonesia (+13.7%), achieved the largest ADR increases in May.
- Three markets experienced double-digit RevPAR increases: Tokyo (+13.9%); Jakarta (+11.3%); and Osaka, Japan (+10.2%).
- Seoul, South Korea, reported the largest decrease in all three key performance metrics. The market’s occupancy fell 12.9% to 74%, its ADR was down 9.2% and its RevPAR decreased 20.9%.
Mantra growing extensively
Australian hotel brand Mantra earlier this year opened its first hotel in Asia, Mantra Nusa Dua Bali. Back in Australia, Mantra’s regional network is set to grow with new properties in Wagga Wagga, Broome and Townsville while investments in new developments at existing hotels in Geraldton and on the Sunshine Coast are also under way.
Mantra Group CEO Bob East said the new additions would complement the diverse network of 50 Mantra properties across Australia. Mantra expects to have more than 60 properties in the network in the next 12 months across Australia, New Zealand and Asia.
GHM to launch 3 hotels in Taiwan
Luxury hotel management group GHM and Taiwanese business development company Elements Innovation Co. have signed a management agreement to launch three upscale hotels in Zhudong, Taiwan.
The Chedi Club, The Chedi and The Serai in Zhudong will stand together as the hospitality anchor to Eutopia, a mountain getaway development one hour by car from Taipei.
The Chedi Club will feature 25 villas spread throughout a maple forest, each with dedicated staff and butler service. The Chedi will offer 92 guestrooms and suites with mountain-top views, along with restaurants, meeting rooms, a spa and an infinity pool. The 200 rooms and suites of The Serai will be located nearest to the commercial and cultural attractions of the Eutopia development.
Tulip Group will build in Thailand
Tulip Group has confirmed that they have entered in to a Memorandum of Understanding with Golden Tulip Hotels and Resorts for a new, 5-star hotel on Soi 5 Phratamnak Hill.
Tulip Group will start construction on the 25-story high-rise building as soon as agreements are in place with Golden Tulip Hotels. The property will be a hotel only; however, Tulip Group is planning to offer a limited number of rooms to property investors buying into the project, who will then be offered a leaseback program with guaranteed returns.
The 300-room property will have two to three restaurants and other amenities.
Ozo to target mid-market segment
Ozo, the recently debuted select-service brand from Onyx Hospitality Group, will follow the launch of Ozo Wesley Hong Kong by increasing development and targeting the mid-market segment.
There is space and great potential for a select-service brand with character, Onyx executives said. Onyx plans to develop an additional six Ozo properties during the next two years, with a concentration on Southeast Asia. Two properties will join the brand in 2013, Ozo Colombo in Sri Lanka and Ozo Samui in Thailand.
Starwood enters new APAC markets
Hotel Bristol in Odessa, Ukraine, will join The Luxury Collection portfolio. Jointly owned by LARK (Vertex Hotel Group) and Bristol-Krasnaya, Hotel Bristol will mark the brand's entry into Ukraine when it opens early next year.
The addition to Starwood Hotels & Resorts Worldwide's Luxury Collection portfolio reinforces the brand's rapid global expansion as it remains on track to surpass 100 hotels in the next five years.
Starwood also signed an agreement with Suzhou Science and Technology Town Kexin Cultural Tourism Development Company. to open a new-build Element hotel in Suzhou Science and Technology Town, an eco-city adjacent to the commercial and administrative center Suzhou, China’s high-tech industrial development zone.
Slated for completion in mid-2015, the hotel marks the Element brand's entry to Asia/Pacific.
Value Hotels move into South Korea
Two months ago, Value Hotel Worldwide announced it was developing the first upscale hotel and the largest of any kind in the newly created city of Sejong, South Korea. More recently, it announced a second development of a new-construction, high-end Value Hotel Worldwide in the city of Suwon, located 22 miles south of Seoul.
The 20-floor, 300-room hotel includes five floors of underground parking, shops, offices, restaurants and lounges. In December, Vantage Hospitality Group announced it had entered into a master license agreement with Service Legend to introduce the Value Inn Worldwide and Value Hotel Worldwide brands to South Korea.
Langham grows in Hong Kong
Langham Hospitality Group will manage the first new luxury city center hotel under the Langham Place brand in Haining, a metropolis in the Zhejiang coastal province. The property, which is being developed by Hong Kong-based Mingly Real Estate Corporation, is scheduled to open in 2014 and feature 266 guestrooms and suites.
Shangri-La grows in China
Shangri-La Hotels and Resorts is set to open Shangri-La Hotel, Shenyang, its second hotel in the former Qing Dynasty capital.
Shangri-La Hotel, Shenyang will feature 424 guestrooms and will open along the city’s “Golden Corridor” on 1 August, in time to host athletic champions during the 12th China National Sports Games being held there in September. The Hong Kong-based hotel company will debut a new 5-star hotel in the historic city of Shenyang, home to the only other royal palace in mainland China after Beijing's Forbidden City.
Australian airport will add hotel
Port Stephens is set to gain a 95-room hotel and a 50-room motel, together worth $19 million, next to Newcastle Airport–the first accommodation at the expanding airport.
The $8-million, four-story Mercure Newcastle Airport is scheduled to open late 2014 with 95 rooms, a restaurant and conference facilities for 200 people, while a 50-room motel in a new $11-million tavern and fast-food visitor development will also be built near the airport in Williamtown.
Approved in June 2013 by Port Stephens Council, which owns the airport together with Newcastle City Council, the developments will meet a rapid growth in passenger numbers at Newcastle Airport.
Compiled by Jason Q. Freed