HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 26 June 2015 (June 26, 2015)

Budget Hotel Aggregators in India: The Newsmakers this Week

ZiP Rooms, a brainchild of Royal Orchid Hotels’ co-promoter Keshav Baljee, announced that it aims to offer 10,000 rooms from its present 1,100 rooms by the current year end. Baljee will also include Spree Hotels, another hotel brand launched by him, under ZiP. 
Singapore-based Zen Rooms Hospitality Pte. Ltd. raised US$1 million from Sanjay Aggarwal, former CEO of Kingfisher Airlines and Kaneswaran Avili, former Chief Commercial Officer of SpiceJet. The venture floated by Vinay Gupta, Kiren Tanna and Madhur Yadav, Zen Rooms is in the process of launching operations with an inventory of 4,000 rooms across India, Singapore, Thailand, Indonesia, Malaysia and the Philippines.
Treebo Hotels received its first round of funding (US$6 million) from Matrix Partners India and SAIF Partners. Founded in March 2015 by ex-McKinsey consultants Sidharth Gupta and Rahul Chaudhary, and ex-VP Engineering of MyGola, Kadam Jeet Jain, Treebo Hotels which currently features over 200 rooms in Bengaluru, aims to increase its network to 5,000 rooms across 20 cities over the next year.

Two Kingdoms, One Destination

Under the proposed campaign, ‘Two Kingdoms, One Destination’, Thailand and Cambodia have agreed to put forward a single visa for tourists looking to discover both countries in one trip. The objective of this campaign is to increase the flow of foreign travellers between the two nations and also set a foundation for further ASEAN integration. For Thailand, the campaign will strengthen Bangkok’s role as a main gateway to neighbouring countries including Cambodia, Vietnam, Laos, and Myanmar. On the other hand, Cambodia will benefit from increased accessibility to and from many long-haul destinations via Thailand, thus increasing inbound tourists from Europe and the United States. It is expected that this campaign would be in effect starting the end of this year, until 2017.

Australians Applaud 10-year Visas for Chinese visitors

The Australian tourism industry has welcomed the federal government's decision to pilot 10-year, multiple-entry visas for Chinese nationals as part of a landmark free trade agreement between China and Australia signed last week. Speaking at a media conference at the Australian Tourism Exchange in Melbourne earlier this week, Tourism Australia’s managing director John O’Sullivan said that the announcement was “overwhelming positive”, particularly as 10-year visas for Chinese residents had become the “new norm” in other countries. In 2014, there were close to 840,000 Chinese visitors to Australia who were the nation’s biggest international spenders, contributing more than AU$5.7 billion (US$4.4 billion) to the economy. Both Chief Executive of Tourism Victoria, Leigh Harry and Director of Communications at Accor Hotels Pacific, Ginni Post, said they were extremely happy with the decision.

Visa-free Travel to Vietnam for Five European Countries

Following its visa exemption policy from March 2014, which allowed foreign tourists to travel visa-free to Vietnam’s special economic zone Phu Quoc, the Vietnamese government has further relaxed visa requirements, now enabling residents from France, Italy, Germany, Spain and the UK to enter Vietnam without any visa requirements for trips up to 15 days. The policy will kick in from 1 July 2015. According to CAPA, Phu Quoc International Airport reported a year-on-year growth of approximately 45% to 295,720 arrivals in the first quarter of 2015, owing to favourable government policies to support tourism growth in the destination. In the first four months of 2015, Vietnam as a whole received 2.23 million international arrivals, a 12.2% decline over the same period last year. The new visa policy is an encouraging sign indicative of the government’s efforts to revive Vietnam’s ailing tourism industry, and the hotel sector may only stand to benefit from this initiative.

Absolute Share Price Performance, as at 25 Jun 2015

Closing Share Price as at18 Jun 201511 Jun 2015% Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited12.6812.590.7%
General Property Group4.274.38-2.5%
Mirvac Group1.861.86-
Mantra Group3.543.70-4.3%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd36.5039.50-7.6%
Dusit Thani Public Co Ltd60.0060.00-
The Erawan Group Public Co Ltd4.264.42-3.6%
Grande Asset Hotels and Property Public Co Ltd1.341.47-8.8%
Laguna Resorts & Hotel Public Co Ltd28.0027.501.8%
Minor International Public Co Ltd30.0030.50-1.6%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd28.8031.00-7.1%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd12.7515.30-16.7%
Guangzhou Dong Fang Hotel Co Ltd26.0128.40-8.4%
China Lodging Group Ltd25.7727.91-7.7%
Home Inns & Hotels Management Inc31.5231.90-1.2%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd13.7813.164.7%
Regal Hotels International Holdings Ltd4.924.714.5%
Sino Hotels Holdings Ltd2.522.54-0.8%
The Hong Kong & Shanghai Hotels Ltd10.8410.84-
Shangri-La Asia Limited11.2411.66-3.6%
Dorsett Hospitality International1.631.65-1.2%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)94.5099.80-5.3%
EIH (Oberoi Hotels & Resorts)100.85102.50-1.6%
Hotel Leela Ventures19.8019.501.5%
Korea Exchange (KRW)
The Shilla114,000100,50013.40%
Singapore Stock Exchange (S$)
Amara Holdings Ltd0.510.51-
Ascendas Hospitality Trust0.7050.705-
Ascott Residence Trust1.281.270.8%
Banyan Tree Holdings Limited0.5150.503.0%
CDL Hospitality Trusts1.6351.64-0.3%
Far East Hospitality Trust0.7850.785-
Hotel Grand Central Ltd1.391.362.2%
Hotel Properties Ltd3.974.12-3.6%
Mandarin Oriental International Ltd (US$)1.591.5452.9%
OUE Hospitality Trust0.9450.931.6%
Stamford Land Corporation Ltd0.570.585-2.6%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation268.00254.005.5%
The Ambassador Hotel, Ltd26.7526.500.9%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.83,70082,1001.9%
Imperial Hotel, Ltd2,6902,694-0.1%

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.

Superior Results through Unrivaled Hospitality Intelligence. Everywhere.