Big Loss Hits Shaanxi Star-rated Hotels

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.

MRG Hospitality Purchases Mumbai’s Aura Grande Hotel for INR100 crore

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.

Shangri-La Opens its First Hotel in Bengaluru, its Second in India

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.

First Toll Road to be Developed in Kalimantan

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 Welcomes New CEO

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.

Absolute Share Price Performance, as on 1 Oct 2015