IHG Announces US$938 Million Sale of InterContinental Hong Kong

InterContinental Hotels Group PLC announced, on July 10, its sale of the iconic 503-key InterContinental Hong Kong for US$938 million (US$1.86 million per key) to Gaw Capital Partners, on behalf of Supreme Key Limited. IHG will continue to manage the hotel under a 37-year contract with three 10-year extension rights. Additionally, the buyer has committed to invest in the hotel’s renovation scheduled to commence in 2017. According to Forbes, in the aftermath of this announcement, shares of the NYSE-listed IHG rose by 4.9% last Friday. This transaction follows New World Development’s high profile sale of its three hotels – Grand Hyatt Hong Kong, Hyatt Regency Tsim Sha Tsui and Renaissance Harbour View, into a 50-50 joint venture with the Abu Dhabi Investment Authority (ADIA) for US$2.39 billion earlier in April this year, making it the biggest hotel deal in Asia in a decade.

Marriott Adds New Extended Stay Option in Tianjin

Marriott expands its portfolio in Tianjin with the launch of a new apartment-style property for extended stay travellers. Located in the Tianjin Binhai New Area, the TEDA Tianjin Marriott Executive Apartments is connected to the existing Renaissance Tianjin TEDA Convention Centre Hotel which features more than 6,000m² of event space. Complementing this five-star hotel, the new Marriott Executive Apartments offers a series of 114 furnished serviced apartments, ranging from studios to three-bedroom units, all featuring kitchens, free Wi-Fi, and on-demand housekeeping, grocery shopping, room service and limousine services. In addition to the above, there is a kids’ club and 12 function rooms. Guests can also utilise the Renaissance’s facilities, which include restaurants, bars, a 24-hour fitness centre, spa and 25-metre indoor swimming pool with sauna and whirlpool. The new Tianjin property becomes the sixth Marriott Executive Apartments in China, following existing locations in Beijing, Shanghai, Shenzhen and Tianjin.

Oakwood to Debut in Colombo, Sri Lanka

Oakwood Asia Pacific marked its entry into Sri Lanka with the new Oakwood Apartments in Colombo. Scheduled to open in early 2016, Oakwood Apartments Colombo is located in the prime residential area of Colombo 3. The property, once complete, will feature 78 fully furnished apartments including 12 studios and 66 one-bedroom apartments, a restaurant, bar, swimming pool and fitness centre.

Swissotel Enters Bali

Swissôtel Hotels and Resorts announced last week that it has entered into an agreement with developer PT Bali Ragawisata to manage the new 170-room Swissôtel Bali scheduled to open in late 2017. The resort, which will be developed on a cliff-top site in Bukit Pandawa, will feature four dining outlets, a private beach club, the brand’s signature Pürovel Spa & Sport, as well as 400m2 of indoor meeting space and outdoor function areas to cater to the MICE segment. The Swissôtel Bali will join a number of luxury developments in the pipeline of Bukit Pandawa precinct including a 97-villa and 24-room Mandarin Oriental Bali, and a 96-villa Waldorf Astoria, projected to open in 2016 and 2017 respectively. Despite the tremendous growth in Bali’s hotel supply across all segments in the past five years, the destination remains attractive to developers as it continues to draw record numbers in visitor arrivals.

Thailand Aims to Attract More Muslim Travellers

According to the Global Muslim Travel Index 2015 by MasterCard & CrescentRating, Thailand was ranked as the second most popular destination for Muslim Tourists, up from third the previous year. In a bid to further strengthen Thailand’s position as a Muslim-friendly destination, Tourism Authority of Thailand (TAT) has recently launched a smartphone travel app which will feature a location search allowing Muslim travellers to find halal restaurants, hotels, mosques, halal tours and other Muslim-friendly products, services and facilities nationwide. Furthermore, TAT is also launching additional marketing incentives to entice Muslim-related agencies. The total Muslim population in the Association of Southeast Asian Nations (ASEAN) is estimated to be 240 million with Indonesia and Malaysia being home to the majority of the Muslim population in the region - a huge and growing market for tourism. It is expected that as the ASEAN Economic Community (AEC) comes into effect, the amount of intraregional travel would increase. TAT hopes to tap into this growing segment and attract more high-end regional Muslim travellers.

Starwood Hotels and Resorts opens Sheraton Hyderabad Hotel

Starwood Hotels and Resorts announced the opening of the Sheraton Hyderabad Hotel this week, their third hotel under the Sheraton brand in India. The newly renovated property offers 272 rooms, two restaurants and a bar, over 950 m2 of meeting and convention space, a spa, a fitness center and a swimming pool. The hotel is strategically located in the heart of the city’s financial district, close to the HITEX Exhibition Centre and the Hyderabad International Convention Centre (HICC). Currently owned by SAMHI Hotels, the Sheraton Hyderabad Hotel was acquired by the group in early 2014 from the Royal Orchid Group, which operated the hotel under their Regenta One brand.

Absolute Share Price Performance, as at 15 July 2015