HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 31 July 2015 (July 31, 2015)

Potential Jin Jiang International-Plateno Merger

Earlier in July, China Travel News reported of a possible merger between two of China’s largest hotel groups – Shanghai Jin Jiang International Hotel Group and Plateno Hotel group. While details of the merger agreement still remain largely undisclosed, it is known that both groups will retain their independent operations. With 475,000 rooms across the portfolios of Jin Jiang and Plateno, the success of this potential merger will result in the formation of the largest hotel group in China. Amidst speculations of the new group’s intentions to acquire Starwood Hotels and Resorts following the merger, it has been reported that Jin Jiang is also in talks to sell Interstate Hotels and Resorts, which it acquired in 2010 at approximately $307 million under a JV with Thayer Lodging Group. Currently the largest independent hotel operator in the US, Interstate can potentially fetch $600 million according to the Wall Street Journal.

Taj Vivanta’s Former COO Veer Vijay Singh Launches Hotel Management Company

Veer Vijay Singh, ex-Chief Operating Officer of the Taj Group’s Vivanta brand, announced the formation of a hotel management company, Trance Hotels and Resorts. The Hyderabad based company will offer hotel management and consultation services to mid-tier and upscale hotels in India and overseas under its brands Trance Urbane, Trance Heritage, Trance Resort and V by Trance. While the first three brands will serve as conversion brands for existing hotels, only new built hotels will qualify for flagging under the V by Trance brands. The company has signed a consultancy agreement with the Pride Group and Fateh Collection and is currently in talks with 20 hotel owners to undertake management of their properties. Veer Vijay Singh will be running the company with his son Suryaveer, a graduate of the Ecôle Hotelière de Lausanne. The company will also see several ex-Taj veterans including Deepa Misra Harris, Rohinton Commissariat and Shirin R Batliwala serving as consultants.

Dusit to Launch in Dabieshan, Anhui Province, China

Dusit Fudu Hotels and Resorts announced the signing of a management agreement with Huoshan County Huachen Tourism Real Estate Development Co., Ltd. to manage an upscale, 300-room hot springs resort in Dabieshan, Anhui Province. Scheduled to open by the end of 2018, it will be the first internationally branded resort in Dabieshan. The proposed resort also features the Devarana Spa, a gymnasium, an indoor swimming pool, a tennis court, a kid's club/playground and an activity room. A spacious ballroom and several multi-functional rooms featuring the latest audio-visual facilities are also available for special events. Dining options at the resort range from an all-day dining restaurant to a specialty restaurant and a lobby lounge.

China Based Plateno Group Brings Portofino Brand to Sri Lanka

China-based hotel company Plateno Group has taken over the management of the Ranna 212 Resort in Tangalle, Sri Lanka and will rebrand the property as the Portofino Resort Tangalle from September 2015. The resort offers 34 rooms and 21 suites along with a selection of restaurants and bars, and a swimming pool. The move forms a part of Plateno’s plans to expand in South and Southeast Asia. In addition to Ranna, Plateno is also slated to open a ZMAX in Colombo, in 2017

Absolute Share Price Performance, as at 30 July 2015

Closing Share Price as at30 Jul 201523 Jul 2015% Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited12.6012.69-0.7%
General Property Group4.554.383.9%
Mirvac Group1.8851.861.3%
Mantra Group3.623.75-3.5%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd36.0036.25-0.7%
Dusit Thani Public Co Ltd59.7560.00-0.4%
The Erawan Group Public Co Ltd3.963.940.5%
Grande Asset Hotels and Property Public Co Ltd1.101.17-6.0%
Laguna Resorts & Hotel Public Co Ltd26.0026.00-
Minor International Public Co Ltd28.7529.00-0.9%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd19.0918.006.1%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd7.809.23-15.5%
Guangzhou Dong Fang Hotel Co Ltd18.0419.69-8.4%
China Lodging Group Ltd23.0322.950.3%
Home Inns & Hotels Management Inc28.6830.02-4.5%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd13.3613.70-2.5%
Regal Hotels International Holdings Ltd4.514.58-1.5%
Sino Hotels Holdings Ltd2.642.64-
The Hong Kong & Shanghai Hotels Ltd10.0610.28-2.1%
Shangri-La Asia Limited9.8610.10-2.4%
Dorsett Hospitality International1.591.65-3.6%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)94.0099.55-5.6%
EIH (Oberoi Hotels & Resorts)112.80120.00-6.0%
Hotel Leela Ventures21.0520.950.5%
Korea Exchange (KRW)
The Shilla131,000133,000-1.5%
Singapore Stock Exchange (S$)
Amara Holdings Ltd0.510.51-
Ascendas Hospitality Trust0.6850.69-0.7%
Ascott Residence Trust1.261.32-4.5%
Banyan Tree Holdings Limited0.4950.495-
CDL Hospitality Trusts1.571.64-4.3%
Far East Hospitality Trust0.710.745-4.7%
Hotel Grand Central Ltd1.301.35-3.7%
Hotel Properties Ltd4.003.961.0%
Mandarin Oriental International Ltd (US$)1.611.63-1.2%
OUE Hospitality Trust0.910.93-2.2%
Stamford Land Corporation Ltd0.5750.585-1.7%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation243.00243.00-
The Ambassador Hotel, Ltd26.1526.15-
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.80,00079,0001.3%
Imperial Hotel, Ltd2,8572,8002.0%

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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