;
HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 28 Aug 2015 (September 7, 2015)

Accor Group Confident of Business Recovery in Thailand After the Bomb Attack

Accor Group remains positive about Thailand tourism despite the recent bomb attack at the Ratchaprasong intersection two weeks ago. According to Patrick Basset, Chief Operating Officer for East and upper Southeast Asia, Accor Group spots Thailand as an attractive investment destination, reflected in a total of 13 new management agreements with 3,380 rooms signed this year. Among the 13 new properties, six hotels will be located in Bangkok, three hotels in Pattaya, two hotels in Koh Samui and one each in Chiang Rai and Chon Buri. Furthermore, Bangkok will be the first ASEAN capital to host Accor’s new hotel brand, Mama Shelter, scheduled to open in 2018. Although Accor Group suffers post-incident with occupancy declining to 50-60% compared to the first half of the year where average occupancy was at 76.5%, Basset is confident that the tourism industry will bounce back by November as the industry has always shown its resilience to the market after a series of negative factors in the past years.

Starwood’s St. Regis Debuts in India with the Opening of the St. Regis in Mumbai

American hospitality group, Starwood, opened the St. Regis in Mumbai this week. Marking the luxury brand’s debut in India and South Asia, the St. Regis Mumbai is owned by Pallazio Hotels and Leisure. Offering 386 rooms including suites and serviced apartments, nine food & beverage outlets, 18 meeting and banqueting spaces, a spa and a fitness centre, the hotel is located atop Palladium luxury mall in Central Mumbai. Prior to entering into a management agreement with Starwood, the property was known as the Palladium Hotel and was operating independently. The hotel originally commenced operations in 2012 as a Shangri-La; however, it got deflagged in 2013. 

Sri Lanka’s Hayleys Group Forays into the Maldives

Hayley’s Leisure, a part of the Sri Lankan conglomerate Hayley’s Group, announced its investment into the Maldives. The proposed five-star hotel will offer 150 villas and is situated within a 30-minute drive from the airport. Construction is likely to start in early 2016 and the property is planned to open in 2018. This will become Hayley’s first hotel in the Maldives. The company currently owns and operates eight properties under the Kingsbury and Amaya brands across several locations in Sri Lanka.

Volume of Tourists from Mainland China to Hong Kong Consistently Declines

Over the years, summer has always been the peak season for Hong Kong tourism in terms of welcoming travellers from Mainland China. However, according to the statistics released by the Hong Kong Tourism Association, there is a declining trend in inbound tourism from this major source market. In the first half of 2015, growth rate of visitors to Hong Kong stood at 2.8%, the smallest increase since 2010. The slowdown has been chiefly attributed to the decreasing visitation from Mainland China owing to several factors such as the growing popularity of Southeast Asia, depreciation of RMB, and the Chinese stock market volatility. Naturally, the hospitality industry has been adversely affected with midscale hotels that primarily target tourists, facing a major setback.

Absolute Share Price Performance, as on 4 Sept 2015

Closing Share Price as at
4 Sep 2015
27 Aug 2015
% Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited
12.28
13.1
-6.3%
General Property Group
4.36
4.55
-4.2%
Mirvac Group
1.725
1.81
-4.7%
Mantra Group
3.47
3.5
-0.9%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd
36
33.5
7.5%
Dusit Thani Public Co Ltd
53
53
-
The Erawan Group Public Co Ltd
3.78
3.62
4.4%
Grande Asset Hotels and Property Public Co Ltd
1.1
0.95
15.8%
Laguna Resorts & Hotel Public Co Ltd
25.75
24.9
3.4%
Minor International Public Co Ltd
27.25
25.75
5.8%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd
10.27
12.88
-20.3%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd
5.88
6.36
-7.5%
Guangzhou Dong Fang Hotel Co Ltd
13.75
14.89
-7.7%
NASDAQ (US$)
China Lodging Group Ltd
25.27
24.66
2.5%
Home Inns & Hotels Management Inc
24.7
27.34
-9.7%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd
11.82
11.82
-
Regal Hotels International Holdings Ltd
3.96
4.13
-4.1%
Sino Hotels Holdings Ltd
2.37
2.37
-
The Hong Kong & Shanghai Hotels Ltd
8.58
8.69
-1.3%
Shangri-La Asia Limited
7.24
7.91
-8.5%
Dorsett Hospitality International
1.37
1.36
0.7%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)
86.15
88.25
-2.4%
EIH (Oberoi Hotels & Resorts)
100.05
114.5
-6.5%
Hotel Leela Ventures
19.6
21.2
-1.0%
Korea Exchange (KRW)
The Shilla
112500
125500
-10.4%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.45 0.455 -1.1%
Ascendas Hospitality Trust 0.6 0.615 -2.4%
Ascott Residence Trust 1.195 1.23 -2.8%
Banyan Tree Holdings Limited 0.385 0.405 -4.9%
CDL Hospitality Trusts 1.305 1.3 0.4%
Far East Hospitality Trust 0.61 0.61 -
Hotel Grand Central Ltd 1.23 1.2 2.5%
Hotel Properties Ltd 3.78 3.65 3.6%
Mandarin Oriental International Ltd (US$) 1.5 1.52 -1.3%
OUE Hospitality Trust 0.8 0.85 -5.9%
Stamford Land Corporation Ltd 0.49 0.5 -2.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 211 214.5 -1.6%
The Ambassador Hotel, Ltd 27.8 24.7 12.6%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 71,300 77,300 -7.8%
Imperial Hotel, Ltd 2,500 2,689 -7.0%

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.

Superior Results through Unrivaled Hospitality Intelligence. Everywhere.

HVS.com