HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 29 May 2015 (May 29, 2015)

Aiken Spence adds two new properties in the Maldives

Aitken Spence Hotels, a Sri Lanka-based hotel operator, has announced its acquisition of two new properties in the Maldives. According to TTG Asia, the company has invested US$ 5 million to lease the Raafushi Island in Noonu Atoll, where it will build a four-star resort. A further investment of UD$ 50 million will go into developing a 163-key five star property on Aaarah Island in Raa Atoll. The new additions to its portfolio will make Aitken Spence the largest foreign hotel operator in the Maldives. The developments will join some 1,700 rooms currently within the Maldives’ new supply pipeline. In the first quarter of 2015, the destination enjoyed a slight growth in international visitor arrivals, accumulating 329,968 arrivals in the first three months, a 2.6% increase from the first quarter of 2014. The Maldives received a record 1.2 million visitors in 2014, an annual growth of 7.1% from 2013. Its top five feeder markets include China, Germany, the UK, Russia and Italy.

Movenpick Hotel debuts in Bangkok

Mövenpick Hotels & Resorts, a Swiss Hospitality firm, recently unveiled its first property in Bangkok. Located on Sukhumvit 15, the 297-rooms Mövenpick Hotel Bangkok is strategically positioned in the centre of Bangkok’s business, entertainment and leisure districts. The hotel offers gastronomic restaurants of European, International and Thai cuisines; a 20-metre rooftop pool and bar with views of the Bangkok skyline; 330m2 of meeting facilities and a courtyard featuring a two-storey waterfall. The company also plans to open Mövenpick Siam Hotel Pattaya by the first quarter of 2016, as well as Mövenpick Hotel Chiang Mai, Suriwongse by 2017. Its existing properties include a property in Laen Yai Beach Samui and two properties in Phuket, located in Bangtao Beach and Karon Beach. Aside from the developments in Thailand, the company has pipeline in China, Malaysia, Vietnam and Tunisia.

Budget Hotel Aggregators in India witnessing heightened investor interest

Budget hotel aggregators in India, which work on an asset-light strategy wherein they partner with small hotels by providing them with their brand names and standardized services, are witnessing a steep growth in India backed by keen investor interest from leading venture capital funds tracking early-stage startups. A recent example is Accel Partners and Kalaari Capital having invested US$ 5 million into Fabhotels.com, formerly called Casa2Inns. At the same time, Tiger Global in conjunction with Orios Venture Partners is rumoured to be in talks with Zo Rooms for closing a US$ 10 million financing round, while OYO Rooms is in the midst of raising US$ 100 million from Softbank. Another player, Stayzilla.com, raised US$ 20 million in its B-round of funding from Nexus Capital and existing investor Matrix Partners, in February this year. Besides adding rooms, these companies are strongly focusing on developing appropriate consumer and operator facing technology in order to deliver the right experience. Marketing and brand building are also focus areas for these aggregators.

Absolute Share Price Performance, as at 28 May 2015

Closing Share Price as at28 May 201521 May 2015% Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited12.9312.900.2%
General Property Group4.574.521.1%
Mirvac Group2.011.991.0%
Mantra Group4.073.846.0%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd35.7535.002.1%
Dusit Thani Public Co Ltd60.0058.752.1%
The Erawan Group Public Co Ltd4.424.58-3.5%
Grande Asset Hotels and Property Public Co Ltd1.321.35-2.2%
Laguna Resorts & Hotel Public Co Ltd27.5027.250.9%
Minor International Public Co Ltd30.5030.75-0.8%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd26.8826.093.0%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd14.2713.059.3%
Guangzhou Dong Fang Hotel Co Ltd22.8022.730.3%
China Lodging Group Ltd26.1424.875.1%
Home Inns & Hotels Management Inc27.6927.550.5%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd13.6013.86-1.9%
Regal Hotels International Holdings Ltd4.764.78-0.4%
Sino Hotels Holdings Ltd2.582.65-2.6%
The Hong Kong & Shanghai Hotels Ltd11.0211.04-0.2%
Shangri-La Asia Limited12.4812.48-
Dorsett Hospitality International1.701.3625%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)102.50104.00-1.4%
EIH (Oberoi Hotels & Resorts)105.95105.550.4%
Hotel Leela Ventures19.0018.005.6%
Korea Exchange (KRW)
The Shilla123,500109,00013.3%
Singapore Stock Exchange (S$)
Amara Holdings Ltd0.540.55-1.8%
Ascendas Hospitality Trust0.710.6952.2%
Ascott Residence Trust1.2851.280.4%
Banyan Tree Holdings Limited0.530.53-
CDL Hospitality Trusts1.721.701.2%
Far East Hospitality Trust0.800.80-
Hotel Grand Central Ltd1.531.53-
Hotel Properties Ltd4.154.111.0%
Mandarin Oriental International Ltd (US$)1.581.595-0.9%
OUE Hospitality Trust0.9550.955-
Stamford Land Corporation Ltd0.600.591.7%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation295.50301.00-1.8%
The Ambassador Hotel, Ltd27.5027.55-0.2%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.86,50085,8000.8%
Imperial Hotel, Ltd2,6692,680-0.4%

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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