According to the latest data published by Shaanxi Province Bureau of Statistics, 108 star-rated hotels lost 162 million RMB in the first half of 2015, with a total GOP Margin of -6.9%. Of these, only 29 hotels had a GOP Margin above 0%. What’s more, low occupancies and ageing properties are causing some of the star-rated hotels to close down. While the National day in China has been a big draw for travellers in the past, a lot of hotels in the province are struggling to attract customers this year despite offering heavy discounts. This is in drastic contrast to the scenario three years ago: in 2012, rooms were sold out long before the National day.
Bengaluru-based MRG Hospitality and Infrastructure has acquired Mumbai’s Aura Grande Hotel operated by Annakoot Properties Private Limited, for a consideration of INR100 crore. The company will additionally invest INR10 crore for revamping the hotel. The 94-room four-star hotel opened in 2003 and is located in Andheri, a suburb in North Mumbai. Started in 2009, MRG Hospitality currently runs four hotels and resorts under the brand name ‘Goldfinch’ in Bengaluru and Mangalore along with 15 restaurants, and plans to grow its portfolio to 12 hotels under its own brand over the next three years.
Hong Kong-headquartered Shangri-La Hotels opened the Shangri-La Bengaluru last week. Its first hotel in the city, the Shangri-La Bengaluru became the hotel group’s second property in India. Located on Palace Road, the hotel features 397 rooms including 30 suites, nine food and beverage outlets, a grand ballroom measuring 739 m2 along with supporting meeting spaces, a business centre, a fitness centre and CHI, The Spa.
The Indonesian Public Works and Public Housing Ministry (PUPR) signed an agreement for the development of the fifth-section which makes up 11 kilometers of the 99.02-kilometer toll road connecting Balikpapan and Samarinda. The government signed the US$57.87-million project with Chinese contractor Beijing Urban Construction Group Ltd. along with state-owned construction firms Wijaya Karya and Pembangunan Perumahan. The land procurement is expected to be fully completed by the year end and this section of the toll road is scheduled to be finished within two years and entirely completed in mid-2019. The project is envisaged to greatly improve accessibility and road network capacity between the two major East Kalimantan cities, which is essential to the thriving industrial activities and domestic tourism growth in the region. East Kalimantan saw a 16.3% increase in number of domestic hotel guests from 2013, reaching approximately 1.3 million guest in 2014. Ongoing infrastructure improvements, coupled with the depreciating Rupiah and higher average disposable income of middle class Indonesians, are expected to promote the growth of domestic travel.
Dusit Thani has appointed Suphajee Suthumpun as the group’s new CEO with a goal to enhance the development of its human resources and technology. Chanin Donavanik, the incumbent CEO, will become the group’s vice chairman and the chairman of the executive committee. These appointments will be effective as of 1 January 2016. Prior to her appointment at Dusit Thani, Suphajee was the CEO of Thaicom since 2011 and has held numerous senior executive positions. According to Dusit Thani, this is an opportune time to bring in new leadership as the company is undergoing significant transformation to support its growth in various industries such as hospitality, education and property development. Chanin expects that the group’s hotel portfolio will double in size in the next two to three years. In addition to that, the group sees large growth potential in the education sector with its Dusit Thani College and Le Cordon Bleu Dusit Culinary School.
Closing Share Price as at
1 Oct 2015
24 Sep 2015
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited
General Property Group
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd
Dusit Thani Public Co Ltd
The Erawan Group Public Co Ltd
Grande Asset Hotels and Property Public Co Ltd
Laguna Resorts & Hotel Public Co Ltd
Minor International Public Co Ltd
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd
Guangzhou Dong Fang Hotel Co Ltd
China Lodging Group Ltd
Home Inns & Hotels Management Inc
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd
Regal Hotels International Holdings Ltd
Sino Hotels Holdings Ltd
The Hong Kong & Shanghai Hotels Ltd
Shangri-La Asia Limited
Dorsett Hospitality International
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)
EIH (Oberoi Hotels & Resorts)
Hotel Leela Ventures
Korea Exchange (KRW)
Singapore Stock Exchange (S$)
Amara Holdings Ltd
Ascendas Hospitality Trust
Ascott Residence Trust
Banyan Tree Holdings Limited
CDL Hospitality Trusts
Far East Hospitality Trust
Hotel Grand Central Ltd
Hotel Properties Ltd
Mandarin Oriental International Ltd (US$)
OUE Hospitality Trust
Stamford Land Corporation Ltd
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation
The Ambassador Hotel, Ltd
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.
Imperial Hotel, Ltd
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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