Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
Flat performance in July
Hotel performance in the Asia/Pacific region was generally flat during July when reported in U.S. dollars, according to data compiled by STR Global, a sister company of Hotel News How.
Occupancy rose 0.3% to 70%; average daily rate was up 0.2% to $112.44; and revenue per available room increased 0.5% to $78.73.
Mumbai, India, was the only market reporting a double-digit increase in occupancy, up 10.7% to 64.2%. Four markets experienced double-digit RevPAR increases, when measured in local currency: Osaka, Japan (+19.6%); Bali, Indonesia (+18.4%); Taipei, Taiwan (+15.4%); and Mumbai (+10.3%).
Hilton’s South Pacific growth plans
Hilton Worldwide Holdings is seeking to aggressively grow its presence in the South Pacific, according to a report from Hotel News Now’s Jeff Higley.
The company has 19 hotels in the region, 13 of which are in Australia, said Ashley Spencer, VP of operations-Australasia. The region never reached the abyss other regions did during the global financial crisis. That has helped the company grow.
“We saw a slowdown but not to the extent of other regions,” Spencer said. “We’ve been insulated, which is positive.”
China Lodging Group introduces new brand
China Lodging Group is introducing a seventh brand—Elan Hotel—to allow the company to expand its dominance in the economy hotel segment in China, reports HNN’s Ed Watkins.
The company’s economy HanTing Hotel and Hi Inn brands have performed well, but there is a niche in the market it felt it could fill, said Qi Ji, the company’s founder, executive chairman and CEO, during an earnings call with analysts.
Qi said Elan will share many core standards with HanTing, including such things as property management systems, mattress and bath standards, and standards for Wi-Fi, but owners will be given more leeway in design and décor standards. Company executives didn’t say when the new brand will debut, but they said they have a long-term goal of 1,400 Elan properties.
Asia/Pacific dominate business travel spending
Outside the United States, business travel demand is being led by the Asia/Pacific region, most notably China, according to data from the Global Business Travel Association.
Business travel spend is expected to reach a record $1.2 trillion globally in 2014, up 6.9% year over year. In China, business travel spend has grown from $32 billion in 2000 to $225 billion in 2013, representing average growth of 16.2% each year.
GBTA expects by 2018, Asia/Pacific will gain another 5% in market share, while the U.S. and Western Europe will lose 3% and 2%, respectively.
Best Western Rewards in Australia
Revenues for Best Western Australasia increased 24% in the past year. In a report to its members, the company said the growth was driven by a 27% increase in sales from the global distribution system and a 24% rise in Internet sales.
Best Western Australasia includes nearly 180 properties in Australia, New Zealand and Fiji.
Visits to Myanmar on the rise
During the first half of the year, 470,747 visitors entered Myanmar, up 23.1% from the first half of 2013, reported the country’s Ministry of Hotel and Tourism.
About seven in 10 visitors to Myanmar were from Asia, including 80,311 from Thailand, the country’s largest source market.
Top destinations in the country are Yangon, Mandalay, Bagan, Inle Lake and Ngapali Beach.
Deals and developments
• Fairmont Hotels & Resorts and Golden Land Real Estate are developing the 390-room Fairmont Suzhou in Jiangsu Province in Eastern China. The hotel will open in 2018.
• Miramar Hotel & Investment Company in January will open Mira Cube, a 50-room boutique hotel in Hong Kong. The company operates two other properties in Hong Kong.
• Boli Hotel Management and Choice Hotels Australasia plan to develop 30 hotels in China by 2021. The first property, a Clarion, is under construction in Hangzhou.
• Accor Greater China opened its 15th Novotel in the country, the 297-room Novotel Nanjing Central in Jiangsu province.
• In early 2015, PT Crystal Development will open the Centara Crystal On the Bay in Nusa Dua, Bali, Indonesia. It will be Centara Hotels & Resorts’ third property in Bali.
• MG Development is building The St. Regis Astana and The Residences at The St. Regis Astana in the capital of Kazakhstan. The project, which opens in 2017, will include 120 guestrooms and 50 residences.
• A 290-room Courtyard by Marriott opened in Seminyak, Bali, Indonesia. It is the brand’s second hotel in Bali and 31st in Asia.
• The 224-room Best Western Patong Beach will open in October in Phuket, Thailand. It is the brand’s third in Phuket and 13th in Thailand.
• Accor plans to introduce the Ibis and Novotel Suites brands in Manila, Philippines. The Ibis will be part of a mixed-use development in Quezon City, while the 150-unit Novotel Suites opens in 2018 in Mandaluyong City.
• A 311-room Ibis opened in Adelaide, Australia.
• Real estate developer Sikka will open the 150-room Crowne Plaza Taj Expressway in Noida, India. InterContinental Hotels Group will manage the property.
• A beachfront 263-room Westin opened in Zhoushan in the Chinese province of Zhejiang.
• Hilton opened its first property in Shandong province, China, the 431-room Hilton Qingdao Golden Beach.
• Hainan Gold Phoenix Hot Spring Resort Company Limited opened a 254-room DoubleTree by Hilton in the Qixianling Hot Springs National Rainforest Park on the island of Hainan, the southernmost province in China.
Compiled by Ed Watkins.