HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 10 July 2015 (July 13, 2015)

Starwood Announces New Sheraton Mactan Resort and Branded Residences in Mactan, Cebu

On 7 July 2015, Starwood Hotels and Resorts announced its plans for a new Sheraton-branded property in Mactan, Cebu. The Sheraton Mactan Resort, comprising of a 250-key hotel and a 182-unit branded residences, will be built and owned by AppleOne Mactan Inc. The hotel and branded residences are projected to open in 2019 and 2020, respectively. The full-service hotel will contain 1,313m2 of meeting space to cater to the MICE segment. In 2012, Cebu was The Philippines’ third most popular destination after Camarines Sur and Metro Manila, receiving 1.01 million and 1.22 million foreign and domestic visitors, respectively. The supply of hotels in Cebu City had risen from 77 in 2010 to 157 in 2013, translating into a CAGR of 26.08%. The Sheraton Mactan Resort will join Cebu’s existing upscale hotel segment, including international brands such as Shangri-La and Radisson Blu.

China Stock Market Volatility May Affect Consumer Spending

The China Shanghai Composite and China Shenzhen Composite have posted significant gains of 5.8% and 3.8%, respectively, on Thursday, 9 July 2015 following the announcement of measures by regulators, which have been designed to curb the market’s slide. This would be the first positive indication since China stocks began their free-fall on 12 June 2015. Despite the one-day rally, China’s stock market remains volatile. According to The Economist, Chinese individuals account for approximately 80% of trading in China. Additionally, online business publication, the Quartz, estimates that Chinese investors have lost over $3.4 trillion in equity value since the markets peaked in mid-June until the 7 July close. It is possible that this downturn will be felt by the global tourism industry, as the spending power of Chinese consumers take a hit. In terms of outbound tourism receipts, the UNWTO reports that China, the world’s top spender, had reached US$ 165 million in 2014, a 28% increase from 2013. It remains to be seen if the exceptional pace of growth in China’s visitor exports sustain in 2015.

Langham Opens 7th Hotel in Mainland China

Langham has expanded its portfolio of hotels in China with the opening of the Langham Place, Haining in early July. Following openings in Beijing, Shanghai, Shenzhen, Guangzhou, Ningbo and Xiamen, Langham Place, Haining is the seventh Langham Hospitality Group property in mainland China and the 20th in its global portfolio. Haining is a prime viewing location for the Qiantang River tidal bore and is renowned as China’s “Leather Town”. It boasts a timeless culture and picturesque landscapes combined with a prosperous economy and inspiring development plans. Langham Place, Haining is part of an integrated complex comprising a shopping centre, commercial offices and high-end serviced apartments. It offers 263 guestrooms and suites across eight different room types, three restaurants and a stylish Lobby Lounge. The hotel also has over 3,000 m2 of meeting and banqueting facilities, a Chuan Spa, wellness centre, fully equipped fitness centre and an indoor swimming pool.

Absolute Share Price Performance, as at 9 July 2015

Closing Share Price as at09 Jul 201502 Jul 2015% Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited12.7012.810.9%
General Property Group4.324.360.9%
Mirvac Group1.901.87-1.6%
Mantra Group3.503.623.4%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd37.7538.000.7%
Dusit Thani Public Co Ltd60.5060.00-0.8%
The Erawan Group Public Co Ltd4.264.280.5%
Grande Asset Hotels and Property Public Co Ltd1.281.312.3%
Laguna Resorts & Hotel Public Co Ltd26.5027.001.9%
Minor International Public Co Ltd29.5030.252.5%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd14.0016.5017.9%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd6.908.51-23.3%
Guangzhou Dong Fang Hotel Co Ltd12.7915.79-23.5%
China Lodging Group Ltd22.6724.297.1%
Home Inns & Hotels Management Inc29.7230.984.2%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd12.3213.64-10.7%
Regal Hotels International Holdings Ltd4.504.90-8.9%
Sino Hotels Holdings Ltd2.752.75-
The Hong Kong & Shanghai Hotels Ltd10.3010.80-4.9%
Shangri-La Asia Limited10.0811.04-9.5%
Dorsett Hospitality International1.501.60-6.7%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)94.0093.45-0.6%
EIH (Oberoi Hotels & Resorts)99.00101.80-2.8%
Hotel Leela Ventures18.6018.80-1.1%
Korea Exchange (KRW)
The Shilla124,000131,500-6%
Singapore Stock Exchange (S$)
Amara Holdings Ltd0.5150.515-
Ascendas Hospitality Trust0.690.71-2.9%
Ascott Residence Trust1.3051.300.4%
Banyan Tree Holdings Limited0.5050.51-1.0%
CDL Hospitality Trusts1.6151.615-
Far East Hospitality Trust0.780.785-0.6%
Hotel Grand Central Ltd1.361.350.7%
Hotel Properties Ltd3.903.93-0.8%
Mandarin Oriental International Ltd (US$)1.581.61-1.9%
OUE Hospitality Trust0.940.935-0.5%
Stamford Land Corporation Ltd0.570.57-
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation244.00260.50-6.8%
The Ambassador Hotel, Ltd26.3026.90-2.3%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.73,00081,800-12.1%
Imperial Hotel, Ltd2,5352,661-5.0%

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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