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HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 30 Oct 2015 (November 2, 2015)

Ctrip to Own 45% Voting Interest in Qunar Through Share Swap with Baidu

China’s largest online tourism platform, Ctrip announced a share exchange transaction with Chinese search engine giant Baidu, for rival travel website Qunar. As per the terms of this agreement, Ctrip will now have a 45% voting interest in Qunar while the previous primary shareholder of Qunar, Baidu, will own 25% of Ctrip's aggregate voting interest. Under this deal, Ctrip will become the biggest (non-controlling) shareholder of Qunar, and although Ctrip will now control Qunar’s board of directors, both entities will continue to function as independent companies. The two companies combined will account for 70-80% of China’s online hotel and air ticket booking market, reports Bloomberg. China’s online travel sector has been witnessing a spate of tie-ups and acquistions as companies consolidate to deal with fierce competition. Earlier this year, Ctrip bought a 37.6% equity stake in its other prominent rival, eLong, in addition to acquiring shares of Tuniu and Tongcheng, the other top players in China’s online travel market. Ctrip will now take a leading position in China’s online travel industry and should hopefully be able to ease out the cash-burning war in the online travel market and seek for more efficient development.  

Indonesia’s Komodo Airport to Open International Service

In an effort to boost tourism in the region, the East Nusa Tenggara Transportation Office announced their plan to elevate the status of Komodo Airport, in Labuan Bajo in East Nusa Tenggara, to an international airport by the end of 2015. The airport currently receives flights from Ende in Flores and Denpasar in Bali. Along with its new status, the airport will be further equipped with revamped runway lights, customs and immigration facilities in order to conform to international airport standards. Following the official declaration of the Komodo National Park as one of the seven natural wonders of the world by the ‘New 7 Wonders Foundation’ in 2012, the region truly started attracting the world’s attention. This new upgradation plan for the Komodo Airport is certainly expected to induce further demand for both domestic and international arrivals in the region.

Sterling Holiday Resorts Acquires Nature Trail Resorts in Maharashtra, India

Thomas Cook-owned Sterling Holiday Resorts has forayed into adventure tourism through the acquisition of Nature Trails Resorts. The value of the deal is undisclosed. Nature Trails, which currently operates four resorts in Maharashtra, will become a wholly-owned subsidiary of Sterling Holidays. However, post the acquisition, Sterling will retain the brand and its existing director will continue to lead Nature Trails as Chief Operating Officer. Over the next few years, Sterling plans to upgrade the existing facilities and add MICE options at the Nature Trail properties. 

Laos to Welcome Best Western’s First Vīb Hotel

Best Western Hotels & Resorts has announced their plan to launch a new life style boutique brand - Vīb, in Southeast Asia. To be located in Vientiane, the capital of Laos, the new Vīb hotel is scheduled to open in 2018 and will bring a vibrant new blend of cutting-edge design and international hospitality to the city. The hotel will be located in the center of Vientiane, close to the night market, Lao National Museum, Black Stupa and Patuxai Arch. The hotel will feature 70 rooms, a social lobby area, ‘grab-n-go’ snack station and a ‘Zen Zone’ for relaxation. According to Ron Pohl, Best Western Hotels & Resorts’ Senior Vice President of Brand Management, “Vib is an incredibly exciting new concept for Best Western, and we have seen a high level of interest from developers across the world.” The new Vīb hotel will join the existing Best Western Vientiane Hotel in the heart of Laos’ capital. 

Le Méridien Opens in Paro; Its Second Hotel in Bhutan

Starwood Hotels & Resorts opened the Le Méridien Paro, Riverfront last week. The new hotel is Le Méridien’s second in Bhutan following the opening of the 78-key Le Méridien Thimpu last year. Set on the banks of Paro River, the hotel offers 59 rooms, a restaurant, a swimming pool, a fitness centre and a spa. Additionally, guests staying at this hotel will enjoy a complimentary access to Ta Dzong, Bhutan’s National Museum.

Absolute Share Price Performance, as on 30 October 2015

 

Closing Share Price as at

30 Oct 2015

22 Oct 2015

% Change

Australia Stock Exchange (ASX)

Amalgamated Holdings Limited

14.0

13.8

1.7%

General Property Group

4.79

4.72

1.5%

Mirvac Group

1.8

1.795

0.3%

Mantra Group

4.14

4.1

1.0%

Bangkok Stock Exchange (THB)

Central Plaza Hotel Public Co Ltd

37.75

39.25

-3.8%

Dusit Thani Public Co Ltd

62.5

64.75

-3.5%

The Erawan Group Public Co Ltd

3.94

3.94

0.0%

Grande Asset Hotels and Property Public Co Ltd

0.99

1.02

-2.9%

Laguna Resorts & Hotel Public Co Ltd

25.75

26.25

-1.9%

Minor International Public Co Ltd

30.5

30.75

-0.8%

China Shanghai Stock Exchange (RMB)

Jinling Hotel Corporation Ltd

13.49

14.9

-9.5%

China Shenzhen Stock Exchange (RMB)

Huatian Hotel Group Co Ltd

8.68

7.72

12.6%

Guangzhou Dong Fang Hotel Co Ltd

20

19.22

4.1%

NASDAQ (US$)

China Lodging Group Ltd

29.24

27.9

4.8%

Home Inns & Hotels Management Inc

29.89

29.12

2.6%

Hong Kong Stock Exchange (HK$)

Miramar Hotel & Investment Co Ltd

13

12.94

0.5%

Regal Hotels International Holdings Ltd

4.02

4.15

-3.1%

Sino Hotels Holdings Ltd

2.35

2.35

0.0%

The Hong Kong & Shanghai Hotels Ltd

8.81

8.7

1.3%

Shangri-La Asia Limited

7.1

7.16

-0.8%

Dorsett Hospitality International

1.54

1.54

0.0%

National Stock Exchange (INR)

IHCL (Taj Hotels, Resorts & Palaces)

95.3

90

5.9%

EIH (Oberoi Hotels & Resorts)

113.05

110.5

2.3%

Hotel Leela Ventures

19.85

20.2

-1.7%

Korea Exchange (KRW)

The Shilla

109000

105000

3.8%

Singapore Stock Exchange (S$)

Amara Holdings Ltd

0.45

0.44

2.3%

Ascendas Hospitality Trust

0.68

0.67

1.5%

Ascott Residence Trust

1.215

1.215

0.0%

Banyan Tree Holdings Limited

0.5

0.5

0.0%

CDL Hospitality Trusts

1.36

1.39

-2.2%

Far East Hospitality Trust

0.67

0.685

-2.2%

Hotel Grand Central Ltd

1.28

1.28

0.0%

Hotel Properties Ltd

3.71

3.75

-1.1%

Mandarin Oriental International Ltd (US$)

1.53

1.525

0.3%

OUE Hospitality Trust

0.82

0.815

0.6%

Stamford Land Corporation Ltd

0.515

0.51

1.0%

Taiwan Stock Exchange (NT$)

Formosa International Hotels Corporation

224.5

219

2.5%

The Ambassador Hotel, Ltd

28.1

27.2

3.3%

Tokyo Stock Exchange (JPY)

Japan Hotel REIT Investment Corp.

84700

80900

4.7%

Imperial Hotel, Ltd

2503

2693

-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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