Read the latest news from around the Asia-Pacific region.
Marriott Drops Revenue Guidance Due To Weaker Demand in China
Marriott International Chief Financial Officer and Executive Vice President, Development Leeny Oberg said during the company's second-quarter earnings call the revised outlook has global revenue per available room growing 3% to 4% for both the third quarter as well as full-year 2024, a slight downgrade the prior outlook of 3% to 5% growth for the full year, reports HNN's Bryan Wroten.
“RevPAR growth is expected to remain higher in the vast majority of our international markets than in the U.S. and Canada,” she said. “The primary driver in our full-year outlook at Greater China’s updated expectations of negative RevPAR growth for the rest of the year.”
The company expects further weak demand and pricing trends in the region, she said.
Hilton Reports Strong Second-Quarter Performance but Execs Warn of Softening Leisure Demand
During Hilton's second-quarter earnings call, company executives pointed to strong overall performance in the Asia-Pacific region despite lower demand in China, reports HNN's Terence Baker. Revenue per available room grew by 11% in the region, boosted by improving performance in Japan and South Korea.
Hilton President and CEO Chris Nassetta said that while there is visa-free travel for Chinese travelers throughout the region, there's still a lack of international airlift for inbound travelers.
“That will take time,” he said.
Hyatt Nears End of $2 Billion Hotel Asset Sale Plan, Plans Brand Acquisitions
Hyatt Hotels Corp. reported strong international performance during the second quarter along with relative weakness in China, reports HNN's Sean McCracken. RevPAR was down 3.2% year over year in China.
Chief Financial Officer Joan Bottarini said China had a difficult year-over-year comparison as the country saw a dramatic recovery in domestic travel in 2023, which is when RevPAR passed pre-pandemic levels for the first time.
Domestic travel was down 9% in China for the quarter, but outbound travel boosted performance in the rest of the region to 17.6% RevPAR growth.
Record EBITDA Highlights Accor's First-Half Earnings Results
Accor's executives said they are optimistic about opportunities to grow in the Asia-Pacific region, the Middle East and Africa, reports HNN's Terence Baker.
India's outbound travel demand represents about 14 million people, and that could rise to 80 million in a matter of years, Accor Chairman and CEO Sébastien Bazin said during the company's recent earnings call.
In the Asia-Pacific region, Accor's rooms pipeline is 51% of its current portfolio. The company added 22 hotels in Japan in March through an agreement with Ebisu Resort and its brand, Daiwa Resorts. Those hotels were rebranded to Mecure or Grand Mercure hotels.
Australia’s Tropical Capital Cairns Readies for New Investor Interest
Hotel investors have taken notice of the increased visitation to Cairns, Australia, as well as the lack of new hotel supply, writes HNN contributor Tamara Thiessen.
Matthew Burke, regional manager of Pacific, Japan and Central South Asia at STR, CoStar’s hotel-analytics division, said no new hotels have opened since the luxury Crystalbrook Flynn in November 2020, and there are “no current proposed projects in Cairns.”
“Instead, a number of properties have completed refurbishments in the past five years to reestablish their quality and reposition and support their ADR. That has and will continue to support future occupancy growth with improving demand,” Burke said.
Deals, Developments, People on the Move
- Malaysia's IOI Properties Group Berhad will buy the 150-key W Kuala Lumpur Hotel from Tropicana Residences for 270 million Malaysian ringgit ($60.5 million).
- Hong Kong hoteliers David Lau Ka-wai sold the 63-key Popway Hotel in Tsim Sha Tsui for 180 million Hong Kong dollars ($23.1 million) to an entity linked to Shih Wing-ching, founder of Centaline Property Agency.
- A consortium led by Singapore-based First Sponsor Group bought the City Tattersails Club building in Sydney for 24.7 million Australian dollars ($16.3 million) to redevelop it into a 50-story residential and upscale hotel project.
- Hong Kong's AB Capital Investment bought the Randor Hotel Osaka Namba Suites in Osaka and Randor Residential Hotel Kyoto Suites in Kyoto.
- Malaysia-based Yong Tai Berhad's subsidiary, Apple 99 Development, sold the 286-key Courtyard by Marriott Melaka for 160 million Malaysian ringgit.
Editor’s note: Christopher J. Nassetta serves on the board of directors for Hotel News Now’s parent company, CoStar Group.