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HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 16 Oct 2015 (October 23, 2015)

Record-Breaking Sale of Non-CBD Hotel in New Zealand

Auckland-based private hotel owner CP Group has acquired the 247-room Novotel Ibis Ellerslie hotel for a record NZ$55 million (US$37.2 million). This is the largest hotel transaction in the country since the sale of the Hilton Auckland in 2012 and has set a new benchmark for sale prices of hotels outside the CBD area. New Zealand hotels are increasingly attracting investor interest due to their high level of return, with year-on-year RevPAR growth of 10 to 15% in many New Zealand tourism centers – higher than major cities in Australia, such as Melbourne and Sydney. From January to September 2015, New Zealand saw more than NZ$200 million (US$135.3 million) in hotel sales – up by a staggering 500% as compared to the same period last year. Furthermore, New Zealand continues to gain popularity as a tourism destination, as the New Zealand dollar hit its six-year low against the US dollar earlier this September. The country welcomed 3 million visitors between January and August, a 7.8% increase over the previous 12 months.

China Reported the Highest Number of Hotel Rooms Under Construction Among Countries in the Asia Pacific

According to the September 2015 STR Global Construction Pipeline Report, there are 2,393 hotels totaling 556,637 rooms Under Contract in the Asia Pacific region. This represents a 4.3% increase in rooms Under Contract as compared to September 2014, but a 2.7% year-on-year decrease in rooms under construction. The ‘Under Contract’ data includes projects in the In-Construction, Final Planning and Planning stages, but does not include projects in the Unconfirmed stage. The region reported a total of 252,686 rooms in 1,013 hotels under construction for the month. Among countries in the Asia Pacific, China reported the most number of rooms under construction with 141,656 rooms in 441 hotels. The two other countries that reported more than 20,000 rooms under construction were India (24,900 rooms) and Indonesia (24,014 rooms).

Red Roof Inn Partners with Paragon Hotels for Expansion in Thailand

US-based hotel chain Red Roof Inn has formed a partnership with Thailand’s Paragon Hotels to expand its upscale economy hotel brand in Thailand. Paragon Hotels will break ground for the first property in 2016, with more hotels planned in major tourist locations, between 2017 and 2020. According to Paragon Hotels, their strategy for Red Roof will be to roll out a series of new-build hotels in strategic locations across Thailand in order to create brand consistency, exposure and loyalty, deploying Red Roof’s NexGen concept to ensure that hotel features are easily recognizable and distinguishable from other hotels in the country. The key success of Red Roof is to maintain its high upscale economy hotel standards. According to Rajinder S. Sidhu, Paragon Hotels, “Red Roof is quality at a comfortable price and that’s exactly what the Thai travel market needed.” Targeting both leisure and business international and domestic travelers, Paragon Hotels hopes to expand Red Roof’s presence across Asia including Myanmar, Laos, Cambodia and Bangladesh. Meanwhile, Red Roof Inn has opened its first international location in Brazil, in partnership with the Brazil-based Nobile Hoteis.

First InterContinental Resort in India Opens in Chennai

The InterContinental Chennai Mahabalipuram Resort that opened earlier this week became the first resort under the InterContinental brand to open in India, and only the second InterContinental hotel in the country. Located 30 kilometers south of the Chennai International Airport on East Coast Road, the resort offers 105 rooms, two restaurants, a bar, a variety of indoor and outdoor meeting and conference venues, a health club, a spa, and a swimming pool. The resort is owned by Adyar Gate Hotels, which also owns The Crowne Plaza Chennai Adyar Park, operated by InterContinental Hotels Group under the Crowne Plaza brand. 

Sarovar Hotels and Resorts launches the Crystal Sarovar Premier Agra

In another hotel opening this week, India-based Sarovar Hotels and Resorts unveiled the Crystal Sarovar Premier in Agra. Located on Fatehabad Road, the hotel offers 136 rooms, three food and beverage outlets, 5,670 ft² of meeting and conferencing space, a health club, a spa, and a swimming pool. The property is owned by Shree Sharanam Real Estate Pvt. Ltd. Agra is one of the leading tourist destinations in the country and a vital component of the Golden Triangle itinerary, along with Delhi and Jaipur.

Absolute Share Price Performance, as on 22 October 2015

 

Closing Share Price as at

22 Oct 2015

16 Oct 2015

% Change

Australia Stock Exchange (ASX)

Amalgamated Holdings Limited

13.8

13.7

0.9%

General Property Group

4.72

4.68

0.9%

Mirvac Group

1.795

1.75

2.6%

Mantra Group

4.1

4.11

-0.2%

Bangkok Stock Exchange (THB)

Central Plaza Hotel Public Co Ltd

39.25

39

0.6%

Dusit Thani Public Co Ltd

64.75

65

-0.4%

The Erawan Group Public Co Ltd

3.94

4.08

-3.4%

Grande Asset Hotels and Property Public Co Ltd

1.02

1.03

-1.0%

Laguna Resorts & Hotel Public Co Ltd

26.25

26

1.0%

Minor International Public Co Ltd

30.75

30.75

0.0%

China Shanghai Stock Exchange (RMB)

Jinling Hotel Corporation Ltd

14.9

13.36

11.5%

China Shenzhen Stock Exchange (RMB)

Huatian Hotel Group Co Ltd

7.72

7.85

-1.7%

Guangzhou Dong Fang Hotel Co Ltd

19.22

19.9

-3.4%

NASDAQ (US$)

China Lodging Group Ltd

27.9

28.22

-1.1%

Home Inns & Hotels Management Inc

29.12

29.53

-1.4%

Hong Kong Stock Exchange (HK$)

Miramar Hotel & Investment Co Ltd

12.94

13.1

-1.2%

Regal Hotels International Holdings Ltd

4.15

4.03

3.0%

Sino Hotels Holdings Ltd

2.35

2.38

-1.3%

The Hong Kong & Shanghai Hotels Ltd

8.7

8.95

-2.8%

Shangri-La Asia Limited

7.16

7.15

0.1%

Dorsett Hospitality International

1.54

1.54

0.0%

National Stock Exchange (INR)

IHCL (Taj Hotels, Resorts & Palaces)

90

87.9

2.4%

EIH (Oberoi Hotels & Resorts)

110.5

108

2.3%

Hotel Leela Ventures

20.2

20.25

-0.2%

Korea Exchange (KRW)

The Shilla

105000

106500

-1.4%

Singapore Stock Exchange (S$)

Amara Holdings Ltd

0.44

0.44

0.0%

Ascendas Hospitality Trust

0.67

0.655

2.3%

Ascott Residence Trust

1.215

1.22

-0.4%

Banyan Tree Holdings Limited

0.5

0.54

-7.4%

CDL Hospitality Trusts

1.39

1.37

1.5%

Far East Hospitality Trust

0.685

0.67

2.2%

Hotel Grand Central Ltd

1.28

1.25

2.4%

Hotel Properties Ltd

3.75

3.7

1.4%

Mandarin Oriental International Ltd (US$)

1.525

1.53

-0.3%

OUE Hospitality Trust

0.815

0.825

-1.2%

Stamford Land Corporation Ltd

0.51

0.51

0.0%

Taiwan Stock Exchange (NT$)

Formosa International Hotels Corporation

219

211.5

3.5%

The Ambassador Hotel, Ltd

27.2

27.2

0.0%

Tokyo Stock Exchange (JPY)

Japan Hotel REIT Investment Corp.

80900

80100

1.0%

Imperial Hotel, Ltd

2693

2515

7.1%

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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