Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
Demand strong but rates drop in APAC
Hotels in the Asia/Pacific region experienced mixed results in the three key performance metrics during October 2013 when reported in U.S. dollars, according to data compiled by STR Global, sister company of HNN.
The region’s occupancy ended the month with a 3.1% increase to 72.5%; its average daily rate dropped 3.7% to $126.51; and its revenue per available room was down 0.7% to $91.69.
Highlights from key market performers for October 2013 in local currency (year-over-year comparisons):
- Hanoi, Vietnam, reported the only double-digit occupancy increase, rising 11.7% to 77.9%.
- Bali, Indonesia (+27.9%) was the only market that experienced ADR increases of more than 15%.
- Five markets experienced double-digit RevPAR growth: Bali, India; Sydney; Hanoi; Bangkok; and Jakarta, Indonesia.
New CEO at Pan Pacific Hotels Group
Bernold Schroeder will join Singapore-based Pan Pacific Hotels Group as CEO on 2 January, replacing Patrick Imbardelli, who resigned after more than five years with the company.
Schroeder, currently CEO of Jin Jiang International Hotel Management, will take over a privatized PPHG, a wholly-owned hotel subsidiary of Singapore-listed UOL Group, which now owns and/or manages more than 30 hotels, resorts and serviced suites across Asia, Oceania and North America under two brands, Pan Pacific and Parkroyal.
Home Inns looks at global expansion
Chinese citizens are increasingly finding their travels are taking them out of country. Executives at Home Inns & Hotel Management want to follow them, reports HNN’s Shawn A. Turner.
During the company’s third-quarter earnings call in November, Home Inns officials said the company, which has 2,051 economy and midscale properties comprising 243,459 rooms in its portfolio in China, will pursue expansion outside China. Southeast Asia was referenced as one potential area of development for the company.
Executives did not disclose many details of the global expansion plan, other than to say the process was in the early stages.
Leaders, educators discuss challenges in Asia
The Institute for Hospitality and Tourism Education and Research, a division of the Chaplin School of Hospitality and Tourism Management at Florida International University, has launched the Visionary Leaders Forum in Singapore.
Held on 24 October, during the week of Web In Travel and ITB Asia, the forum of senior hospitality leaders met to discuss persistent issues that have a profound impact on a hotel’s ability to stay current, competitive and profitable:
- Serious need for robust customer segmentation, supported by tightly integrated hotel management systems and business intelligence tools.
- Asia’s high real estate development cost together with the rise in mixed-use development projects will inevitably shift the focus to a total revenue management approach.
- Revenue management in the digital and TRM age requires a new set of performance metrics. Tracking RevPAR and RGI is no longer relevant.
Ancillary revenue bolsters operations in India
Hoteliers in India continue to turn to ancillary revenue streams to compensate for the country’s lagging occupancy numbers, reports HNN’s Chitra Balasubramaniam.
“It’s not a new phenomenon in India,” said Navin Suchanti, CEO and managing director of Sinclairs Hotels Limited. "Traditionally, most of the hotel chains in India have always managed their own (food-and-beverage) outlets. The only area where hotels have outsourced their ancillary channels is in the area of operating and managing the spa and salon.”
More than 40% of hotel revenues on average are generated from such ancillary channels, according to Mansi Bhatnagar, managing director of HVS Marketing Communications.
Dorsett grabs 4 contracts
Dorsett Hospitality International has entered into four management contracts with Mayland Group Malaysia and Far East Consortium International Limited to manage the following hotels:
- Dorsett Cheras, Kuala Lumpur, owned by Mayland Group, which will have up to 319 rooms, is targeted to open in the first quarter of 2014.
- Dorsett Putrajaya, owned by Mayland Group, which will have up to 218 rooms, is targeted to open in the third quarter of 2014.
- Dorsett Hartamas, Kuala Lumpur, owned by Mayland Group, which will have up to 371 rooms, is expected to be operational in the third quarter of 2015.
- Sri Jati Hotel, owned by Far East Consortium International, will be managed by Dorsett Hospitality under the d.Collection brand. The 154-room boutique is expected to commence operation in the fourth quarter of 2015.
Westin returns to Singapore
The Westin Singapore opened in November, marking the brand’s return to Southeast Asia’s financial and lifestyle hub. The return of the Westin brand to Singapore is a significant milestone for the brand’s robust expansion as the hotel joins the ranks of more than 40 Westin properties in Asia/Pacific, with 20 additional properties in the pipeline.
The 305-room Westin Singapore occupies levels 32 to 46 of the new Asia Square Tower 2 commercial development in Marina Bay, the heart of Singapore’s financial district.
Compiled by Jason Q. Freed.