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HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 21 Aug 2015 (August 24, 2015)

Starwood Introduces New Premier Tier Sheraton Grand

Starwood Hotels & Resort Worldwide announced on 19 August 2015, the launch of its new premier tier, Sheraton Grand. The move comes as part of ‘Sheraton 2020’, Starwood’s strategic plan to consolidate its largest and most global brand. The global hotel operator has elevated ten existing Sheraton properties, to the designation of Sheraton Grand in a bid to recognize these exceptional hotels.  Seven of these properties are located in Asia Pacific, amongst which are the Sheraton Grand Bangalore Hotel, Sheraton Grand Beijing Dongcheng Hotel, Sheraton Grande Ocean Resort, Sheraton Grande Sukhumvit, Sheraton Grande Taipei Hotel, Sheraton Grande Tokyo Bay Hotel and Sheraton Grande Walkerhill. Starwood expects to introduce 50 newly-designated Sheraton Grand hotels globally by the end of 2015, and 100 by 2017.

Airbnb Teams with Sequoia, China Broadband to Expand in Chinese Market

Online home-rental marketplace Airbnb is gearing up for a deeper push into the booming market of Chinese travellers. Airbnb has forged partnerships with investment firms Sequoia China and China Broadband Capital, to expand into the Chinese market and find a chief executive officer for its operations in the country. The company was recently reported to have completed a $1.5 billion private funding round. Chinese travellers have been the world’s top spenders in international tourism since 2012, according to the United Nations’ World Tourism Organization. The number of Chinese guests renting rooms through Airbnb rose 700 percent in 2014, making China the fastest growing outbound market for the company. While Airbnb remains focused on Chinese tourists traveling abroad, people in the country are signing up to host international tourists and domestic travellers.

Indian Hotels Company Limited (Taj Hotels) posts a net profit of INR34.78 crore in Q1

Indian Hotels Company Limited (Taj Hotels), the largest hotel operator in India, reported a consolidated net profit of INR34.78 crore for the first quarter ended June 30, 2015. The company had posted a net loss of INR34.82 crore during the same period last year. Consolidated net sales of the company increased to INR1,032.92 crore in Q1 2015/16 as against INR937.46 crore in the year-ago period. An exceptional sale of the company’s investment in Tata Projects, classified as a long-term investment, was accounted for in the quarter under consideration.

Despite twin explosions in Bangkok, Ministry of Tourism Maintains Tourism Goal

Although Thailand’s tourism industry has shown signs of recovery after the political demonstrations, the country’s capital was struck by two consecutive explosions, on Monday and Tuesday this week, raising concerns for tourist’s safety. 23 countries have already issued travel advisories, although with most advising caution rather than avoiding travel to Thailand. Hotels in Krabi have reported cancellation, mainly from Chinese tourists, while hotels in Phuket reported booking cancellations representing about 5% of the total occupancy. Hotel cancellations are expected to increase over the next few weeks. This may dampen the strong recovery that Thailand has being witnessing since the beginning of the year. However, Ministry of Tourism and Sports remains confident, maintaining its target of 28.8 million tourist arrivals this year. 

Absolute Share Price Performance, as on 20 August 2015

Closing Share Price as at20 Aug 201513 Aug 2015% Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited13.1512.406.0%
General Property Group4.534.64-2.4%
Mirvac Group1.811.83-1.1%
Mantra Group3.553.472.3%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd33.2536.75-9.5%
Dusit Thani Public Co Ltd55.0059.25-7.2%
The Erawan Group Public Co Ltd3.784.04-6.4%
Grande Asset Hotels and Property Public Co Ltd1.011.04-2.9%
Laguna Resorts & Hotel Public Co Ltd26.2526.50-0.9%
Minor International Public Co Ltd25.0026.00-3.8%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd19.5219.97-2.3%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd8.328.77-5.1%
Guangzhou Dong Fang Hotel Co Ltd19.8020.71-4.4%
NASDAQ (US$)
China Lodging Group Ltd26.4124.497.8%
Home Inns & Hotels Management Inc29.0729.43-1.2%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd11.9012.56-5.3%
Regal Hotels International Holdings Ltd4.164.51-7.8%
Sino Hotels Holdings Ltd2.432.43-
The Hong Kong & Shanghai Hotels Ltd9.209.82-6.3%
Shangri-La Asia Limited8.519.32-8.7%
Dorsett Hospitality International1.441.54-6.5%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)92.0590.801.4%
EIH (Oberoi Hotels & Resorts)114.50113.750.7%
Hotel Leela Ventures21.2022.10-4.1%
Korea Exchange (KRW)
The Shilla105,500126,000-16.3%
Singapore Stock Exchange (S$)
Amara Holdings Ltd0.470.485-3.1%
Ascendas Hospitality Trust0.630.665-5.3%
Ascott Residence Trust1.2251.28-4.3%
Banyan Tree Holdings Limited0.4650.485-4.1%
CDL Hospitality Trusts1.321.42-7.0%
Far East Hospitality Trust0.590.67-11.9%
Hotel Grand Central Ltd1.251.33-6.0%
Hotel Properties Ltd3.703.83-3.4%
Mandarin Oriental International Ltd (US$)1.591.62-1.9%
OUE Hospitality Trust0.7950.885-10.2%
Stamford Land Corporation Ltd0.500.505-1.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation218.00227.00-4.0%
The Ambassador Hotel, Ltd25.5026.40-3.4%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.80,00077,4003.4%
Imperial Hotel, Ltd2,6002,676-2.8%

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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