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Global Hotel Pulse: Asia/Pacific News

In this week’s roundup of news from the Asia/Pacific region: Banyan Tree appoints a new CEO; China Lodging invests in Starway Hotels; the Global Business Travel Association forecasts business travel spending will increase 17% in China.
By HNN Newswire
June 12, 2012 | 4:06 P.M.

Each week, HotelNewsNow.com provides a news roundup from a different world region. Today’s roundup focuses on the Asia/Pacific region.

Regional performance results
Hotels in the Asia/Pacific region experienced positive results in the three key performance metrics for April 2012 when reported in U.S. dollars, according to data compiled by
STR Global, sister company of HotelNewsNow.com.
 
In year-over-year measurements, the Asia/Pacific region’s occupancy increased 3.8% to 67.6%, its average daily rate increased 3.6% to $145.01 and its revenue per available room was up 7.6% to $98.07.

“Hotels across Asia/Pacific sustained their growth in occupancy and average room rate,” Elizabeth Randall, managing director of STR Global, said in a news release. “Looking at the supply and demand results for the first four months of this year, supply grew at the lowest rate for the January to April period for the past six years (+2.8%) whilst demand achieved the second highest growth rate for the four-month period in the past six years with 5.3% improvement, only surpassed by the demand growth in the corresponding period in 2010.”

Banyan Tree Hotels and Resorts appoints new CEO
Banyan Tree Holdings Limited announced the appointment of Abid Butt as the new CEO of Banyan Tree Hotels and Resorts.

Butt has served as the area GM for the group’s flagship resort, Banyan Tree Phuket, more than 10 years ago, followed by his appointment as the first VP of operations from 2000  to 2002. In this capacity, Butt oversaw operations and branding for existing hotels and resorts and the launch of new properties. In his most recent position, Butt was the VP for asset management of Host Hotels & Resorts in the United States.

China Lodging Group announces investment in Starway Hotels
China Lodging Group Limited announced the company recently completed an investment in Starway Hotels Limited to own a majority stake.

Started by Ctrip.com International Limited, Starway operates more than 100 franchised midscale hotels in China. Since its inception in 2008, Starway has gained wide awareness and recognition among customers and hotel owners.

In addition to the franchise model Starway already has adopted, China Lodging plans to introduce franchised-and-managed and leased-and-operated models under the Starway brand.

Beijing Tourism Group, GHM launch new brand
The Beijing Tourism Group and hotel management group GHM formed a joint venture to launch Anh Luh, an upscale resort brand in China,
according to Hotel Circle Asia.

The partners, together with a third investor, Great Ocean Group, said the group’s first properties will debut in the next two to three years. Ahn Luh Resorts and Residences is charting future developments in major cities and tourism destinations throughout China. In the pipeline are hotels in Beijing, the Pearl River Delta and Southwest China. The first project will be the Ahn Luh Dujiangyan in Chengdu.

GBTA: Business-travel spending in China will rise 17%
Business travel spending in China is forecast to increase by 17% to $202 billion in 2012 and 21% to $245 billion in 2013, according to a study by the Global Business Travel Association.

Other highlights of the GBTA’s Business Travel Index Outlook–China:

  • Growth in international outbound travel spending is expected to be particularly strong, rising by 27% in 2013.
  • During the past 10 years, the four largest airports have doubled in size, and there are plans in place for more than 100 new hotels in the next decade.
  • Business travel has evolved into a key contributor and benefactor of the Chinese economic growth, showing strong correlations with economic indicators.
  • China is ranked second in the business travel market, according to the GBTA findings, but is forecast to surpass the U.S. by as early as 2015.
  • Real gross domestic product in China is forecast to increase by 8.2% and 8.9% in 2012 and 2013, respectively.

IHG to continue focus on China in 2012
InterContinental Hotels Group continues in 2012 to focus much of its attention on growing in China, dismissing the effects of a potential development slowdown initiated by the Chinese government,
reports HotelNewsNow.com’s Jason Q. Freed.

During the company’s first-quarter earnings call in May, CEO Richard Solomons said IHG has 20 letters of intent signed from owners interested in the Hualuxe brand. The first Hualuxe is expected to open early 2014. IHG has 170 hotels representing 55,871 guestrooms in China.

He addressed measures the Chinese government has taken in recent months to cool a residential real-estate boom, which in turn would impact hotel development. The actions have “only slightly affected” development of IHG-branded hotels in the region, Solomons said.

Key openings, transactions

  • Lanka Hotels and Residencies entered into an agreement with Starwood Hotels & Resorts Worldwide to operate and manage the Sheraton Colombo in Sri Lanka. The 306-room property is expected to open in October 2013.
  • IHG announced the opening of the 224-room Crowne Plaza Phuket Panwa Beach Resort in Thailand.
  • Wyndham Worldwide Corporation opened the Super 8 Nanjing Shan Xi in China’s Jiangsu province.
  • Accor opened the Pullman the 285-room Gurgaon Central Park in India.
  • Starwood’s Luxury Collection announced the opening of the 140-room Keraton at the Plaza in Jakarta.
  • Regal Hotels International announced a new development in China’s Shaanxi province: The 300-room Regal Airport Hotel.
  • Accor announced plans to reopen two of its four Christchurch, New Zealand hotels, which were closed following an earthquake in February 2011. Hotel Ibis Christchurch is the first hotel scheduled to re-open with a target date of September 2012. Novotel Christchurch will follow, with a planned re-opening date of April 2013.
  • Hilton Worldwide signed a management agreement with Hoan Kiem Tourism & Trading Company Limited for the 86-room Hilton Garden Inn Hanoi.
  • Marriott International announced plans for a new Renaissance resort in Bo’ao in China, which is slated to open in 2015.
News | Global Hotel Pulse: Asia/Pacific News