HotelNewsNow.com each week features a news roundup from a different region of the world. Today’s compilation covers the Asia/Pacific region.
Performance metrics rise in May
Hotels in the Asia/Pacific region experienced increases in all three key performance metrics for May 2010 when reported in U.S. dollars, according to data compiled by STR Global.
Highlights from key market performers for May 2010 (year-over-year comparisons, all currency in U.S. dollars):
• Shanghai, China, experienced the largest occupancy increase, rising 55.0 percent to 71.7 percent, followed by Beijing, China (+34.4 percent to 65.3 percent); Hong Kong, China (+28.7 percent to 78.3 percent); and Osaka, Japan (+27.8 percent to 77.3 percent).
• Bangkok, Thailand, posted the only occupancy decrease, falling 38.4 percent to 26.2 percent.
• Shanghai reported the largest ADR increase, up 29.3 percent to US$142.52.
Four markets reported ADR decreases: Bangkok (-11.9 percent to US$76.77); New Delhi, India (-7.7 percent to US$148.37); Osaka (-5.9 percent to US$119.95); and Mumbai, India (-4.4 percent to US$171.84).
• Shanghai’s RevPAR soared 100.5 percent to US$102.18, reporting the largest increase in that metric. Three other markets posted RevPAR increases of more than 40 percent: Hong Kong (+51.9 percent to US$145.58); Beijing (+45.4 percent to US$62.74); and Kuala Lumpur, Malaysia (+40.4 percent to US$71.65).
• Bangkok reported the only RevPAR decrease, falling 45.8 percent to US$20.10.
• Read “STR Global: Asia/Pacific results for May 2010.”
China leads region’s pipeline
The Asia/Pacific hotel development pipeline comprises 1,004 hotels totaling 253,815 rooms, according to the May 2010 STR Global Construction Pipeline Report.
Among the countries in the region, China reported the largest number of rooms in the total active pipeline (136,514 rooms) and the largest number of rooms in the In Construction phase (96,691 rooms). India followed with 46,613 rooms in the total active pipeline and 30,147 rooms in the in construction phase.
Among the key markets, Shanghai, China, ended the month with the largest number of rooms in the total active pipeline (13,919 rooms), followed by Bangkok, Thailand (9,498 rooms), and New Delhi, India (7,436 rooms). Shanghai (11,350 rooms), Bangkok (5,599 rooms) and New Delhi (5,477 rooms) also reported the most rooms in the in construction phase.
Four of the seven chain scale segments each accounted for more than 15 percent of rooms in the total active pipeline. The upper-upscale segment made up 25.1 percent of the total active pipeline with 63,777 rooms, followed by the upscale segment (23.8 percent with 60,324 rooms), the luxury segment (18.4 percent with 46,582 rooms) and the unaffiliated segment (18.4 percent with 46,656 rooms).
Banyan Tree opens in Seoul
The first Banyan Tree Club & Spa opened Tuesday in Seoul, South Korea. With 34 luxury hotel rooms and 16 private member quarters, it marks the brand’s foray into mixed-use development.
GM Stefan Thumiger tells HotelNewsNow.com that the company felt the city is a perfect location for an urban resort.
Jumeirah puts first VENU in Shanghai
Jumeirah Group, the Dubai-based luxury hospitality company and member of Dubai Holding, has signed an agreement with Shanghai Zendai Himalayas Real Estate Company to manage VENU HIMALAYAS Hotel Shanghai. The new contemporary lifestyle hotel in the heart of Pudong district of Shanghai is scheduled to open in 2011.
The hotel was designed by architect Arata Isozaki and interior designer KCA International to reflect the unique structure and experience of the Himalayas. VENU HIMALAYAS Hotel Shanghai will be a 400-key art-themed hotel, including 70 luxury suites, standing at the heart of an arts and lifestyle hub, the Himalayas Centre.
New Four Seasons CEO targets China
Four Seasons Hotels announced that Isadore Sharp has decided to transition from his role as CEO, and Kathleen Taylor will be appointed president and CEO, effective 1 August 2010.
Taylor joined Four Seasons in 1989 and has served as president and COO since 2007.
Sharp, the company's founder, will remain as chairman and continue to be involved in the company, retaining oversight and direction of the design and aesthetics of new and existing hotels in the manner that he has always done. Sharp will also continue to represent the company as its goodwill ambassador, building and advancing relationships with partners, employees and customers around the world.
“Four Seasons is well positioned to take advantage of the recovery in luxury travel, and we are energized by all the positive developments at the company,” Taylor said. "These include our significant expansion plans for China, which we view as a key strategic market and a robust pipeline of more than 50 projects in development globally.”
Fiji military seizes resort
Bridgecorp’s receivers are investigating what to do after the Fijian military regime seized the failed Momi Bay resort against its wishes. A PricewaterhouseCoopers spokesman in Auckland, New Zealand, said the action left the receivers consulting lawyers and happened after the receivers tried to stop the action, according to the New Zealand Herald.
Colin McCloy and John Fisk at PwC were in charge of the resort, but now the military government has stepped in to stem huge superannuation losses. Bridgecorp was a finance company that developed the property but went bankrupt in 2007.
Malaysian associations support Halal certification
The Malaysian Association of Hotels fully supports the government’s efforts to ensure Malaysia is becoming a recognized Halal hub, according to the Halal Journal. MAH’s president YBhg. Datuk Hj. Mohd Ilyas Zainol Abidin said the association, together with Malaysian Association of Hotel Owners, are registered members of the Focus Group on Halal Certification, which is led by the Malaysian Administrative Modernisation and Management Planning Unit and has been having regular meetings with the Malaysian Islamic Development Department (JAKIM) to ensure its members receive their Halal certificates.
Newly elected MAHO President YBhg Dato’ Sri Abdul Aziz Abd Rahman added that both associations since last year have been actively involved and working closely with JAKIM, addressing and ironing out relevant administrative and processing issues pertaining to Halal certification for hotel restaurants.
Datuk Ilyas also added that MAH has managed to arrange for Halal certification awareness seminars to be conducted at all 13 chapters at no cost to its members.
Datuk Ilyas believes that by conducting this awareness, a lot more hotels in Malaysia will look into Halal Certification seriously.
Shanghai World Expo flourishes
After two downcast years, the Shanghai World Expo has lived up to its promise of drawing huge crowds and breathing life back into the Shanghai hotel market.
Performance results released by STR Global show for May 2010, average room rates reached close to RMB1,000 (US$147) – a level not seen since October 2008.
The strong year-on-year room rate growth of 29 percent was aided by a 54-percent increase in occupancy that saw marketwide occupancy hit 72 percent for the month, surprisingly the first time the market has been north of 70 percent since November 2007. Combined, this resulted in very impressive RevPAR numbers of RMB700 (US$103) for the market, numbers not seen since November 2007 and a staggering 99 percent increase on May 2009.
Accor expects expansion in Asia
Franchising and Asian expansion are top of mind at Accor, according to Olivier Poirot, CEO of Accor North America, who spoke with HotelNewsNow.com during the 32nd annual New York University International Hospitality Investment Conference.
Poirot had a brief stint as CFO of parent company Accor Hospitality during its demerger process in the first quarter of 2010, which gave him a broader perspective on the company’s strategy.
Worldwide, the company will add 30,000 to 35,000 rooms each year during the next two or three years.
“The way we are going to do that is predominately through a combination of franchise management, and most of the management agreements are going to come out of Asia, which is one very high and intense area of development for us,” he said. “The rest is going to predominately come from the franchise development out of Europe. We are already a very strong leader in Europe, but we still have a lot of room to grow from a franchise development standpoint.”
News and notes
• Hyatt Hotels Corporation announced the signing of management agreements for three new Andaz properties. The hotels will be located in Sanya Sunny Bay, China; Delhi, India; and Providenciales, Turks and Caicos. These planned properties, situated in prime urban and resort locations, will be the latest additions to the expanding Andaz brand, which only three years after its debut, includes 11 properties open or under development in six countries.
• Sofitel Luxury Hotels signed a management agreement in China for its future flagship in Shanghai, the Sofitel Shanghai Jing’an. Scheduled to open in 2011, the property will be the third Sofitel hotel in Shanghai. Sofitel Shanghai Jing’an will occupy 32 of the building's 61 floors, offering 515 rooms (82 of them suites) on levels 29 through 54. The brand, which already boasts a network of 23 hotels in China, is consolidating its presence with this new addition. The agreement was signed at a time when the brand has just announced two new locations in China, the Sofitel Lianyungang Suning Galaxy and the Sofitel Haikou, which will open their doors in 2013 and 2014, respectively. It is also preparing to open two more between late 2010 and early 2011: the Sofitel Dongguan Humen Oriental and the Sofitel Guangzhou Sunrich.
• Hilton Worldwide announced it has entered into a management agreement with Hawks Town Corporation to rebrand and manage the JAL Resort Sea Hawk Hotel Fukuoka on the island of Kyushu in Japan. The 1,000-room hotel will be called the Hilton Fukuoka Sea Hawk. It marks the ninth Hilton Worldwide hotel in Japan.
• The Gateway Hotel announced its plans to foray into Punjab, India, with the signing of two new hotels: The Gateway Hotel Chandigarh and The Gateway Hotel Ludbiana. The Gateway Hotel in association with The Hind Motors Group will develop a 100-room property in Chandigarh. At Ludhiana, the brand will partner with Sapna Hospitality, to build a 125-room hotel. With this development The Gateway Hotel increases its overall portfolio to 36 hotels across India. The Gateway Hotel (upscale full service hotels and resorts) is a pan-India network of hotels and resorts divided into 7 simple zones- Stay, Hangout, Meet, Work, Workout, Unwind and Explore. The brand is an affiliate of Taj Hotels.
• Australia’s newest luxury hotel, Saffire, located on the East Coast of Tasmania near Freycinet, is now open. Saffire is considered by its developers to be an iconic development for the Australian tourism industry. Saffire features 20 luxury suites, each offering views of Great Oyster Bay and the Hazards Mountains.
• Buyers have invested almost US$40 million in luxury apartments in Hilton Surfers Paradise Hotel & Residences (Southport, Australia), with the landmark Gold Coast development recording exceptional demand since Easter. In total, purchasers have secured or placed deposits on 27 apartments since April in the dual tower project being constructed by Brookfield Multiplex in the heart of Surfers Paradise. The sales included a mix of two- and three-bedroom apartments and averaged US$1.5 million. The property is being developed by Brookfield Multiplex. Construction of the Boulevard Tower, which will feature 186 apartments, is on track for completion late this year, while Orchid Tower, which will comprise 224 residences and a 169-room Hilton hotel, is expected to be completed in the second half of 2011.
• Hong Kong-based Regal Hotels International partnered with Taiwan-based Evergreen International Hotels to create a mutually beneficial platform for hotel business development and resources sharing.