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HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 27 Nov 2015 (November 27, 2015)

Best Western Enters Bandung

Best Western Hotels & Resorts is making its debut in Indonesia’s third largest city, Bandung, with the launch of Best Western Premier La Grande Hotel. The 193-room upscale hotel will be equipped with eight meeting rooms, a business center, a spa, a swimming pool, a fitness center and a restaurant. With this opening on December 1, 2015, Best Western’s portfolio across the Indonesian archipelago will stand at 16 hotels. In the past two years, Bandung has witnessed a substantial increase in its hotel inventory and the surplus supply has exerted downward pressure on its hotel performance; Bandung’s annual market-wide RevPAR is expected to drop by 5%, by year-end 2015. However, owing to the continued growth in domestic tourism on the back of a weakening Rupiah, the city’s hotel market is expected to recover in the medium term, with a forecasted increase in market-wide RevPAR by 9% in 2016.

BHMAsia Expanding Its Presence in Bangkok

Bespoke Hospitality Management (BHM) Asia has begun construction of its first hotel in Bangkok. The new X2 Vibe Onnut will feature 267 units, comprising of 145 hotel accommodations and 122 residences. Other facilities will include a  swimming pool, a restaurant, a fitness centre, a spa and 24-hour room service. Scheduled to open in Q4 2016, the hotel will be situated five minutes away from Onnut BTS sky train station, which provides access into central Bangkok’s Sukhumvit districts. The property will also offer easy access to the Suvarnabhumi International Airport via the Bangkok expressway. BHMAsia currently operates a collection of boutique hotels and resorts under its X2, X2 Vibe and Away brands. Besides this new property in Bangkok, new X2 Vibe hotels are being planned in several other destinations, such as, Koh Samui, Phuket and Pattaya.

Taj Group Concludes Its Management Contracts in Jodhpur and Ahmedabad

The Indian Hotels Company Limited, operating Taj Hotels Resorts & Palaces, announced that it will cease to manage the two Gateway Hotels in Jodhpur, Rajasthan and Ahmedabad, Gujarat, post the termination of their management contracts in May, 2016. This exit from the 88-key Jodhpur property and 91-key Ahmedabad property is preceded by earlier exits from the Taj Palace Marrakech in Morocco and Taj Dubai, as well as the sale of the boutique Blue Sydney hotel.

Six Chinese Hotel Groups Invest RMB18 million to Create Online Distribution Platform

Huatian Hotel Group announced that it has entered into an agreement with five other prominent Chinese hotel groups to build a new online distribution platform. The five hotel groups are: New Century Hotel Group, Celebrity City Hotels, Newbeacon Hotel Group (Wuhan), Shuguang Hotel Group and Guangdong (International) Hotel Management Holdings. Each of the six groups will invest RMB3 million for an equal share of 16.66% and Huatian Hotels is making a cash-based investment. The six alliance members are all well known domestic hotel groups that collectively have 75,000 hotel rooms and over five million loyalty members. Increasing pressure from OTA online booking platforms has hampered the hotel groups’ profit growth and pushed them to set up their own platform to reduce their reliance of OTAs and enable the free flow of customer resources and secure direct sales at relatively low costs.

Absolute Share Price Performance, as on 26 November 2015

Closing Share Price as at
26 Nov 2015
19 Nov 2015
% Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited
14.9
14.85
0.3%
General Property Group
4.75
4.69
1.3%
Mirvac Group
1.915
1.88
1.9%
Mantra Group
4.41
4.43
-0.5%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd
44.25
45.75
-3.3%
Dusit Thani Public Co Ltd
64.5
64.5
0.0%
The Erawan Group Public Co Ltd
4.14
4.26
-2.8%
Grande Asset Hotels and Property Public Co Ltd
0.98
1.01
-3.0%
Laguna Resorts & Hotel Public Co Ltd
25
26
-3.8%
Minor International Public Co Ltd
34.5
34
1.5%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd
16.38
16.1
1.7%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd
10.6
9.06
17.0%
Guangzhou Dong Fang Hotel Co Ltd
19.76
19.5
1.3%
NASDAQ (US$)
China Lodging Group Ltd
28.76
28.21
1.9%
Home Inns & Hotels Management Inc
30.5
30
1.7%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd
13.34
13.3
0.3%
Regal Hotels International Holdings Ltd
3.82
3.89
-1.8%
Sino Hotels Holdings Ltd
2.35
2.35
0.0%
The Hong Kong & Shanghai Hotels Ltd
8.16
8.17
-0.1%
Shangri-La Asia Limited
7.25
7.23
0.3%
Dorsett Hospitality International
1.54
1.54
0.0%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)
90.3
94
-3.9%
EIH (Oberoi Hotels & Resorts)
114.75
114.55
0.2%
Hotel Leela Ventures
19.35
19.85
-2.5%
Korea Exchange (KRW)
The Shilla
91200
93300
-2.3%
Singapore Stock Exchange (S$)
Amara Holdings Ltd
0.435
0.435
0.0%
Ascendas Hospitality Trust
0.625
0.625
0.0%
Ascott Residence Trust
1.19
1.195
-0.4%
Banyan Tree Holdings Limited
0.465
0.47
-1.1%
CDL Hospitality Trusts
1.31
1.325
-1.1%
Far East Hospitality Trust
0.605
0.615
-1.6%
Hotel Grand Central Ltd
1.25
1.24
0.8%
Hotel Properties Ltd
3.7
3.71
-0.3%
Mandarin Oriental International Ltd (US$)
1.46
1.465
-0.3%
OUE Hospitality Trust
0.78
0.795
-1.9%
Stamford Land Corporation Ltd
0.515
0.51
1.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation
225
227
-0.9%
The Ambassador Hotel, Ltd
27.7
27.95
-0.9%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.
89300
87900
1.6%
Imperial Hotel, Ltd
2503
2520
-0.7%

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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