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