HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 3 July 2015 (July 3, 2015)

Mandarin Oriental Announces another Luxury Hotel in Beijing

Mandarin Oriental Hotel Group has announced that it will manage another luxury property in the heart of Beijing, scheduled to open in 2017. The hotel will be located in the new premier mixed-use centre 'WF CENTRAL' being developed by Wangfu Central Real Estate Development Company Limited, an affiliated company of Hongkong Land. The 74-key Mandarin Oriental Wangfujing will feature two restaurants and a bar. Other facilities will include an all-encompassing spa, an indoor swimming pool and a fitness centre. Mandarin Oriental Wangfujing, Beijing will be the group's second hotel to open in the city after the 241-key Mandarin Oriental Beijing (part of the CCTV project), which is scheduled to open in 2016.

D-mart Owner Radhakishan Damani Acquires Radisson Blu Resort & Spa Alibaug

Radhakishan Damani, owner of hypermarket chain D-Mart, recently bought the Radisson Blu Resort & Spa in Alibaug. Damani's Derive Trading Pvt Ltd has acquired this 156-key hotel from Phadnis Group, a Pune based real estate developer, for a consideration of INR135 crore. The hotel was built in 2008 for approximately INR110 crore. It is expected that the property will continue to be managed by the Carlson Rezidor Hotel Group post the transaction. Phadnis Group said that the sale of the hotel was a part of the company’s plan to focus primarily on its real estate business. Alibaug is a coastal town located about 100 km south of Mumbai, India and is a popular tourist destination.

Qantas Reintroduces Singapore-Perth Route

Qantas Airways reintroduced its Singapore-Perth route on 26 June 2015, following a year-long absence, after the service was discontinued last year due to profitability issues. With nine other carriers code-sharing the Singapore-Perth service this time, the airline will run five weekly return services with a smaller Boeing 737 aircraft between Singapore Changi Airport and Perth Airport, which serves as the international and regional gateway to Western Australia. In 2014, Western Australia received 826,700 international visitor arrivals, an 8% increase from 2013. The state’s top five feeder markets include the UK (17%), Singapore (10%), New Zealand (9%), Malaysia (9%) and USA (7%). While international arrivals from Singapore, Malaysia and USA saw encouraging growths of 28.9%, 16.7% and 26.1% respectively, arrivals from the UK and New Zealand dipped slightly by -6.8% and -1.9% in 2014. Besides the fact that Singapore’s Changi Airport serves as a convenient transit hub for US travellers, the recent depreciation of the Australian dollar against the US dollar may continue to drive American arrivals to Western Australia.

Myanmar’s Tourism Growth Fuelled by Budget Travelers

Visitor arrivals to Myanmar from the country’s main gateway of Yangon, between the period of January to May 2015 has risen by 9.03% from 410,444 to 447,520. Aye Nyein Win, Sales and Marketing Manager of Yangon-based Orchestra Travel and Tours expects that “overall arrivals for 2015 will likely set a new record”. Asian visitors accounted for 312,645 of Myanmar’s arrivals in this period, which is approximately 70% of total arrivals through Yangon. Amongst this group, Thailand is the largest source market, producing 68,652 arrivals. This is followed by China and Japan with 43,456 visitors and 35,799 visitors respectively. The number of European arrivals to Yangon was 81,221. This was led by France and the United Kingdom with 18,113 visitors and 16,789 visitors respectively. According to Kaung Min Khant, Managing Director of Asia Central Link Travels and Tours, the number of budget travelers is clearly on the rise against the more lucrative group package tours.

Absolute Share Price Performance, as at 02 July 2015

Closing Share Price as at02 Jul 201526 Jun 2015% Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited12.8112.681.0%
General Property Group4.364.272.1%
Mirvac Group1.871.860.5%
Mantra Group3.623.542.3%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd38.0036.504.1%
Dusit Thani Public Co Ltd60.0060.00-
The Erawan Group Public Co Ltd4.284.260.5%
Grande Asset Hotels and Property Public Co Ltd1.311.34-2.2%
Laguna Resorts & Hotel Public Co Ltd27.0028.00-3.6%
Minor International Public Co Ltd30.2530.000.8%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd16.5028.80-42.7%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd8.5112.75-33.3%
Guangzhou Dong Fang Hotel Co Ltd15.7926.01-39.3%
China Lodging Group Ltd24.2925.77-5.7%
Home Inns & Hotels Management Inc30.9831.52-1.7%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd13.6413.78-1.0%
Regal Hotels International Holdings Ltd4.904.92-0.4%
Sino Hotels Holdings Ltd2.752.529.1%
The Hong Kong & Shanghai Hotels Ltd10.8010.84-0.4%
Shangri-La Asia Limited11.0411.24-1.8%
Dorsett Hospitality International1.601.63-1.8%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)93.4594.50-1.1%
EIH (Oberoi Hotels & Resorts)101.80100.850.9%
Hotel Leela Ventures18.8019.80-5.1%
Korea Exchange (KRW)
The Shilla131,500114,00015.40%
Singapore Stock Exchange (S$)
Amara Holdings Ltd0.5150.511.0%
Ascendas Hospitality Trust0.710.7050.7%
Ascott Residence Trust1.301.281.6%
Banyan Tree Holdings Limited0.510.515-1.0%
CDL Hospitality Trusts1.6151.635-1.2%
Far East Hospitality Trust0.7850.785-
Hotel Grand Central Ltd1.351.39-2.9%
Hotel Properties Ltd3.933.97-1.0%
Mandarin Oriental International Ltd (US$)1.611.591.3%
OUE Hospitality Trust0.9350.945-1.1%
Stamford Land Corporation Ltd0.570.57-
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation260.50268.00-2.8%
The Ambassador Hotel, Ltd26.9026.750.6%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.81,80083,700-2.3%
Imperial Hotel, Ltd2,6612,690-1.1%

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.

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