Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
Harilela debuts its first brand in almost 60 years
Hong Kong-based Harilela Group has launched its first brand, The Hari, after 57 years in business owning and operating hotels, writes HNN’s Terence Baker. The 85-room The Hari London opened 31 August.
“Some brand rules have to be applied, but integrity is key, and scale only becomes a problem when you lose that uniqueness that customers assign to you,” said Andrew Coney, GM of The Hari London. “Hospitality for Harilela is not about huge physical elements but about heart and soul. Standardized service is a thing of the past. Being giving and passionate is what now is important in the hotel industry, and having insightfulness, and to have a hint of eccentricity and playfulness. It cannot be too formulaic. You want your guests to say of you, ‘That’s clever, that’s fun.’”
APA using Coast Hotels buy to introduce urban concept
Japan’s APA Group purchased Vancouver-based Coast Hotels as part of its expansion into North America, writes HNN’s Bryan Wroten. The deal is expected to close in September.
APA Group, which owns APA Hotels & Resorts, will introduce its original “urban-style hotel” concept to Coast Hotels, said Toshio Motoya, founder and CEO of APA Group.
“Compared with traditional hotels, in which guests and staff have a relationship that resembles that of masters and servants, guests and staff at new urban-style hotels have an equal relationship,” Motoya said via email. “Unnecessary services for the guests are abolished, and services are provided from the guests’ point of view.”
Business travel growth drives shift for Chinese hotels
Hoteliers are moving to take advantage of China’s new role as the world’s largest business travel market, HNN contributor Brendan Manley reports.
The Global Business Travel Association reported China surpassed the U.S. as the top market in business travel, spending more than $291 billion in 2015, an 11.4% year-over-year increase.
“The volume is still strong in the first-tier cities like Beijing, Shanghai, Guangzhou and Shenzhen, but aligned with the growing influence of the middle-class, we also see more traction in second and third-tier destinations,” said Jesper Palmqvist, Asia-Pacific area director for STR.
STR: Asia/Pacific hotel performance for July 2016
Monthly data from STR, HNN’s parent company, reports that hotels in the Asia Pacific region saw mostly positive results in July 2016.
Occupancy increased 2.8% year over year in the region to 72.1%. Average daily rate remained almost flat, dropping by 0.3% to $96.62. Revenue per available room increased 2.4% to $69.68. India saw year-over-year increases in occupancy by 6.4% to 61.9%, in ADR by 3% to 5,068.31 Indian rupees ($75.48) and RevPAR by 9.6% to 3,139.32 Indian rupees ($46.75).
STR: Asia/Pacific hotel pipeline for July 2016
The July 2016 Pipeline Report from STR shows 585,492 rooms in 2,547 projects under contract in the Asia/Pacific region. These figures represent a 5.1% year-over-year increase in rooms under contract.
There were 255,525 rooms in 1,042 projects in construction during the month, a 0.6% year-over-year decrease.
Shanghai, China, reported the most rooms in construction, with 9,177 rooms in 36 hotels. Three other markets reported having more than 5,000 rooms in construction: Jakarta, Indonesia (7,123 rooms in 27 hotels); Chengdu, China (6,526 rooms in 25 hotels); and Bali, Indonesia (5,209 rooms in 30 hotels).
Deals and developments
- The Crowne Plaza Changi Airport in Singapore opened a 10-story extension with 243 new rooms.
- Ventura International Sdn Bhd purchased the 921-room Renaissance Hotel Kuala Lumpur from IGB Corporation for 765 million Malaysian ringgits ($187.1 million).
- The Wynn Palace opened 22 August in Macau after six years of development.
- The 353-room Le Meridien Putrajaya opened in Malaysia, Starwood Hotels & Resorts Worldwide’s third Le Meridien in the country.
- AccorHotels and InterGlobe Hotels debuted the Ibis brand in Hyderabad, India, with the opening of the Ibis Hyderabad HITEC City,
- Sarovar Hotels opened the RS Sarovar Portico in Palampur, Himachal Pradesh, India.
Compiled by Bryan Wroten.