HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 15 May 2015 (May 15, 2015)

Increased Sea Connectivity Between Johor and Singapore

Following recent bilateral talks between Singapore and Malaysia, it has been reported that connectivity via sea between Singapore and Johor will be improved. In 2013, Malaysia recorded an arrival of 13,178,774 Singaporean visitors, which represented 51.2% of its total source markets. With two existing causeways linking the countries, and ongoing construction for railways linking Singapore to Johor Barhu and Kuala Lumpur due for completion after 2020, commute via sea is not the most popular choice for travelers at present. Both governments are seeking to change this by creating demand through increasing supply. Currently, only two daily ferry services run between Changi Ferry Terminal and Tanjung Belungkor (Desaru, Johor) on weekdays and four on weekends; this frequency will be increased following the bilateral talks. Since 2012, Destination Resorts & Hotels (DRH) has rolled out aggressive plans to develop the Desaru coastline. Current hotel developments in the pipeline include Aman Country Club and Villa, Datai Desaru and a 350-key Westin Desaru Resort, among others, all of which are projected to open in 2017.

Oynx Hospitality Group Expands in Sri Lanka with Ozo Kandy

Oynx Hospitality Group, a Thailand based company, along with its joint venture partners Sino Lanka Hotels Holdings and the Kandy Hotels Co. recently unveiled its second Sri Lankan Ozo property in Kandy. The property located close to the town centre and overlooking Kandy Lake and the surrounding hills, offers 122 rooms, a restaurant, a grab-and-go outlet, a fitness room, and a rooftop pool and lounge. In addition to Kandy, Oynx operates an Ozo in Colombo and is planning to bring its Amari brand to the coastal town of Galle in the future. 

Premier Inn Enters Phuket

Premier Inn continues the expansion of its portfolio in Thailand with the announcement of its first property in Phuket. The 350-room Premier Inn Phuket will open its door in 2017 and will be in close proximity to some of Phuket’s key demand generators including Patong Beach and Jungceylon Shopping Centre. The hotel will feature an all-day dining restaurant, bar, swimming pool, fitness centre, and meeting facilities. In partnership with Rayaburi Group Co. Ltd., Premier Inn plans to open five hotels with a total of 1,250 rooms by 2020. The Phuket property will join the 224-room Premier Inn Bangkok Soi 11, which is scheduled to open in 2016. Furthermore, Premier Inn plans to expand its presence in Chiang Mai, Hua Hin, Koh Samui, and Pattaya.

Aloft Debuts in Sydney

Starwood Hotels and Resorts Worldwide has announced the signing of a management agreement with 302 Pitt Operations Pty Ltd, an affiliate of Ninety Four Feet P/L, to debut its Aloft brand in Sydney. Projected to open in November 2016, the new 136-key Aloft Sydney Pitt Street will be located at 302 Pitt Street, joining some 1,800 rooms currently in Sydney’s development pipeline. According to STR Global, Sydney City has experienced a stable supply in room inventory in recent years, with room supply recorded at 23,749 in December 2014, a slight decline of 0.9% from December 2013. Aloft Sydney Pitt Street will add to Starwood’s portfolio of 10 operating hotels in Australia. Aloft currently operates 18 hotels in Asia Pacific, with presence in China, India, Korea, Malaysia and Thailand. The brand is expanding rather aggressively across the region, with 19 new hotels in their development phase for its existing markets of China and India, and in new markets like Australia and Indonesia amongst others. 

Absolute Share Price Performance, as at 14 May 2015

Closing Share Price as at14 May 20157 May 2015% Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited12.5012.66-1.3%
General Property Group4.454.401.1%
Mirvac Group1.9951.961.8%
Mantra Group3.863.88-0.5%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd31.5033.00-4.5%
Dusit Thani Public Co Ltd55.0054.500.9%
The Erawan Group Public Co Ltd4.604.64-0.9%
Grande Asset Hotels and Property Public Co Ltd1.351.44-6.2%
Laguna Resorts & Hotel Public Co Ltd27.5027.50-
Minor International Public Co Ltd31.5032.00-1.6%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd23.0521.178.9%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd11.799.3725.8%
Guangzhou Dong Fang Hotel Co Ltd20.1817.3016.6%
China Lodging Group Ltd21.7022.01-1.4%
Home Inns & Hotels Management Inc26.3427.41-3.9%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd12.8812.106.4%
Regal Hotels International Holdings Ltd4.844.810.6%
Sino Hotels Holdings Ltd2.682.651.1%
The Hong Kong & Shanghai Hotels Ltd11.0211.52-4.3%
Shangri-La Asia Limited11.8411.740.9%
Dorsett Hospitality International1.311.282.3%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)105.10105.50-0.4%
EIH (Oberoi Hotels & Resorts)109.00105.003.8%
Hotel Leela Ventures17.6518.10-2.5%
Korea Exchange (KRW)
The Shilla110,000106,5003.3%
Singapore Stock Exchange (S$)
Amara Holdings Ltd0.540.54-
Ascendas Hospitality Trust0.6850.705-2.8%
Ascott Residence Trust1.271.260.8%
Banyan Tree Holdings Limited0.5250.53-0.9%
CDL Hospitality Trusts1.701.705-0.3%
Far East Hospitality Trust0.800.805-0.6%
Hotel Grand Central Ltd1.511.491.3%
Hotel Properties Ltd4.184.19-0.2%
Mandarin Oriental International Ltd (US$)1.581.5651.0%
OUE Hospitality Trust0.9450.965-2.1%
Stamford Land Corporation Ltd0.5950.574.4%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation304.00328.50-7.5%
The Ambassador Hotel, Ltd27.9028.25-1.2%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.84,00084,000-
Imperial Hotel, Ltd2,5902,598-0.3%

Disclaimer: Information provided above has been gathered from various market sources. HVS has not independently verified the accuracy of the information provided. Interested parties should not rely on the information as statement of facts and are advised to make their own independent checks to verify the information provided. For further information, please feel free to contact HVS Asia Pacific.

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