HVS Asia Pacific Hospitality Newsletter - Week Ending 1 November 2019 (November 5, 2019)

Singha Estate Launches SHR to IPO

Thailand-based property developer, Singha Estate will submit its Thailand-based subsidiary, S Hotels and Resorts (“SHR”) initial public offering (“IPO”) in order to raise fund for expansion in its hospitality business both domestic and abroad. Singha Estate has listed on the Stock Exchange of Thailand since 2014 and has its revenue increased from 9.7 billion baht in 2014 to 58.9 billion baht in 2018, led by its strong core residential business, commercial business, as well as hospitality business under the management of SHR. Currently, SHR owns 39 hotels, with a total of 4,647 keys over five countries, namely Thailand, UK, Maldives, Fiji, and Mauritius. After spinning off a business by IPO, the company will hold 60% share and aim to double growth through acquisitions in the next five years.

Mandala Asset Solutions Acquires Mackay Marina Hotel in Mackay, Queensland

Australia-based regional investment fund, Mandala Asset Solutions (“Mandala”) has announced the acquisition of the freehold Mackay Marina Hotel through the Trinity Accommodation Regional Hospitality Fund. The AUD10 million transaction includes the 79-suite hotel occupying 6,407 square metres of prime waterfront land, as well as the adjoining 1,412 square metre site which has development approval for an additional 120 rooms. Located in Mackay’s popular marine, tourism and leisure hub, the Mackay Marina Hotel features deluxe, executive and spa suites. Other facilities include the Latitude 21 Bar & Restaurant, a swimming pool, tropical gardens, a fitness centre and an event space with a capacity of up to 1,500 guests. Currently, Mandala owns and manages assets worth AUD43 million and this purchase adds to its existing portfolio of 15 properties in regional Australia.

Dream Cruises Sails Beyond Asia into Australia for the First Time

Owned by Malaysia-based Genting Cruise Lines Ship Management Sendirian Berhad, Dream Cruises celebrated the inaugural arrival of the Explorer Dream to homeport, Sydney, Australia, at the White Bay Cruise Terminal on 27th October 2019, commemorating the start of the cruise line’s first sailing beyond Asia. The cruise ship strives to provide a unique vacation experience for local Australian travellers and in bound international tourists with the growing Fly-Cruise opportunities. Explorer Dream currently offers round-trip cruise itineraries across Australia departing from Sydney and Brisbane till 1st December 2019 and from 9th to 23rd February 2020. This aims to pave the way for the return of Explorer Dream to Australia in the fourth quarter of 2020. Explorer Dream debuted in the premium and luxury Asian market in April this year, joining her sister ships Genting Dream and World Dream. The luxury ship measures 268 metres in length, 32 metres in width and has a total gross tonnage of 75,338 tons, featuring 928 cabins with lower berth capacity of 1,856 passengers. The cruise also features various food and beverage options onboard, virtual and augmented reality entertainment, a spa and a theatre.

China Records 782 Million Domestic Trips During National Day Holiday

According to the Ministry of Culture and Tourism, a total of 782 million domestic trips were made across China during the week-long National Day Holiday, recording a year-on-year increase of 7.81%. Domestic tourism revenue gained RMB649.71 billion between 1st and 7th October 2019, up by 8.47% compared to last year. A series of positive factors, such as the ticket price reduction or preferential policies for national tourist attractions,  free-toll highways, diversified cultural and tourism activities offered in different parts of the country, competing service offered by tourist destinations, and strong regulatory measures, have contributed to the tourism growth. In comparison, Chinese visitors took 726 million trips over the holiday last year, generating RMB559.08 billion to the domestic tourism revenue. 

Asian Development Bank has Committed Financing to Develop El Nido and Coron in Palawan Province, the Philippines

Asian Development Bank (“ADB”) has announced that it will provide financial support to the Philippine Department of Tourism (“DOT”) to develop El Nido and Coron in Palawan province, into environmentally-sustainable tourist destinations. The two localities were identified in anticipation of higher numbers of tourists visiting the islands over the next decade. The financing to the DOT will address the immediate need for urban infrastructure and services, such as solid waste management, drainage and sanitation, and clean drinking water. ADB also seeks to explore innovative funding to local business enterprises and community-based groups for skills and product development to improve the quality of services in these two fast-growing destinations. In addition, ADB will assist to build the capacity of local stakeholders to protect and conserve healthy oceans, and rehabilitate key biodiversity-based tourism sites. The tourism development project is planned for delivery in the fourth quarter of 2020.

Absolute Share Price Performance, as on 1 November 2019

Closing Share Price as at 1 November 2019 25 October 2019 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.20 2.19 0.5%
Event Hospitality & Entertainment Ltd 12.99 13.38 -2.9%
General Property Group 6.04 6.32 -4.4%
Mirvac Group 3.23 3.18 1.6%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 27.25 27.50 -0.9%
Dusit Thani Public Co Ltd 9.90 9.95 -0.5%
The Erawan Group Public Co Ltd 5.55 5.25 5.7%
Grande Asset Hotels & Property Public Co Ltd 0.80 0.78 2.6%
Laguna Resorts & Hotel Public Co Ltd 52.50 50.25 4.5%
Minor International Public Co Ltd 36.50 35.75 2.1%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 9.44 9.73 -3.0%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 2.63 2.64 -0.4%
Guangzhou Dong Fang Hotel Co Ltd 7.28 7.52 -3.2%
NASDAQ (US$)
Huazhu Group Limited 38.00 37.09 2.5%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 15.44 15.34 0.7%
Regal Hotels International Holdings Ltd 4.40 4.39 0.2%
Sino Hotels Holdings Ltd 2.95 2.99 -1.3%
The Hong Kong & Shanghai Hotels Ltd 8.99 8.20 9.6%
Shangri-La Asia Limited 8.41 7.88 6.7%
National Stock Exchange (INR)
Chalet Hotels Ltd 331.60 330.25 0.4%
IHCL (Taj Hotels, Resorts & Palaces) 151.1 150.9 0.2%
EIH (Oberoi Hotels & Resorts) 167.0 170.8 -2.2%
Hotel Leela Ventures 7.9 8.1 -2.5%
Lemon Tree Hotels Ltd 62.5 59.0 6.0%
Korea Exchange (KRW)
The Shilla 79100 79900 -1.0%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.45 0.45 0.0%
ARA HTrust (US$) 0.85 0.88 -2.9%
Ascendas Hospitality Trust 1.12 1.17 -4.0%
Ascott Residence Trust 1.37 1.40 -2.1%
Banyan Tree Holdings Limited 0.44 0.45 -1.1%
CDL Hospitality Trusts 1.64 1.64 0.0%
Eagle HTrust (US$) 0.53 0.55 -3.7%
Far East Hospitality Trust 0.74 0.71 3.5%
Frasers Hospitality Trust 0.74 0.73 0.7%
Hotel Grand Central Ltd 1.32 1.30 1.5%
Hotel Properties Ltd 3.76 3.81 -1.3%
Mandarin Oriental International Ltd (US$) 1.65 1.70 -2.9%
Stamford Land Corporation Ltd 0.49 0.49 0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 162.5 158.0 2.8%
The Ambassador Hotel, Ltd 24.0 22.8 5.0%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 89800 85000 5.6%
Imperial Hotel, Ltd 2003 1999 0.2%
Red Planet Japan Inc 124 119 4.2%

For the latest in the hospitality industry, please visit: http://www.hvs.com/. You are also welcome to contact the following personnel.
 
Hok Yean Chee, Regional President – HVS Asia Pacific [email protected]
Mandeep S. Lamba, President, South Asia – HVS Anarock m[email protected]
Daniel J Voellm, Managing Partner – HVS Hong Kong [email protected]
Mei Leng Ho, Senior Vice President – HVS Singapore [email protected]
Paola Orneli Bock, Vice President – HVS Bangkok [email protected]
Steven Zhu, Vice President – HVS Shanghai [email protected]
Florian Kittler, Managing Director – HVS Executive Search Europe & Asia Pacific [email protected]

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