Fico Group Plans Expansion

Fico Group plans to further invest 2.1 billion baht in its hotel business over the next three years. The group has earmarked 525 million baht towards acquisitions of hotels in Europe. This includes the acquisition of the Lion Hotel in Shrewsbury. On the domestic front, the group plans to invest approximately 1.6 billion baht in three properties. Fico will launch a 500 million baht budget hotel on Silom road in 2016-2017. This would be the group’s first property in the budget category. The two additional projects include a 1 billion baht apartment complex in Ekamai and a 70-80 million baht renovation of the Le Fenix hotel in Sukhumvit Soi 11, with plans to turn it into a boutique hotel.

Starwood Expands Presence in Philippines

Starwood Hotels and Resorts Worldwide announced on 28 April 2015, the signing of the Westin brand’s first mixed-use hotel and residences development in Southeast Asia, with Philippines-based developer Robinsons Land Corporation. Slated to open in 2019, The Westin Manila Sonata Place and The Residences at The Westin Manila Sonata Place will add 300 keys to Manila’s room supply and will feature nearly 350 private residential apartments. The hotel will also expand Manila's offerings for meetings and event planners with over 1,400 square meters of function space. Between 2009 and 2013, international visitor arrivals to the Philippines grew from 3 million to 4.68 million, at a CAGR of 9.18%. According to the Philippines Tourism Authorities, Metro Manila remains the most popular destination among foreign tourists, recording over 1.5 million international arrivals as in 2012. The total supply of rooms in the Metro Manila area reached 16,145 in 2012, with the luxury hotel sector averaging 71.5% in occupancy, compared to an industry-wide average of 67.3%.

Hong Kong Visitor Arrivals Continue to Slide in March Applying Downward Pressure on Hotel Performance

Following the emotional outpour over parallel trading and politically sensitive times, the Hong Kong hotel market felt the pinch in March 2015. Overnight visitor arrivals from mainland China were down by 18% and those from Singapore declined by 30%; notably long haul markets were less affected. Many hotels on the other hand witnessed occupancy levels dive. High Tariff A hotels in Hong Kong were relatively immune at a RevPAR drop of 8.4% over 2014. Medium Tariff hotels were greatly impacted with occupancy levels plummeting by 13 percentage points (to a still healthy 82%). High Tariff B hotels applied heavier discounts and so, the average rate came in 10% lower compared to March 2014. Thus, RevPAR declined by 8.4%, 19.0% and 19.5% for High Tariff A, B and Medium Tariff hotels, respectively.

Sheraton Park Hotel and Towers Chennai Rebranded to a Crowne Plaza

Sheraton Park Hotel and Towers Chennai, a prominent landmark in the city and one of its oldest five-star hotels, will now operate as the Crowne Plaza Chennai Adyar Park. The hotel was previously managed by ITC Hotels, India’s second largest hotel company, for 30 years. The tower wing of the property recently underwent extensive renovations. With respect to food and beverage, under the new brand, all restaurants are likely to operate with their current identities with the exception of the discotheque Dublin. The property, featuring 286 rooms is owned by Adyar Gate Hotels, which also owns other hotels in and around Chennai and Ooty in Tamil Nadu and Visakhapatnam in Andhra Pradesh, and has a property planned in Kodaikanal, Tamil Nadu. The Crowne Plaza Chennai Adyar Park joins Holiday Inn Express Chennai Mahindra World City, making it the second IHG hotel in Chennai.   

Absolute Share Price Performance, as at 7 May 2015