;
HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 11 Dec 2015 (December 11, 2015)

AccorHotels Acquires FRHI for US$2.9 Billion

AccorHotels announced the signing of an agreement with the Qatar Investment Authority (QIA), Kingdom Holding Company of Saudi Arabia and Oxford Properties, the real estate division of the Ontario Municipal Employees Retirement System, for the acquisition of FRHI Holdings Ltd (FRHI), parent company of Fairmont, Raffles, and Swissôtel chains. The US$2.9 billion deal will include FRHI’s three global luxury hotel brands, covering 155 hotels and resorts – of which 40 are under development – and more than 56,000 rooms spanning across 34 countries. According to Sébastien Bazin, Chairman and CEO of AccorHotels, the acquisition of these three global brands will strategically enhance the group’s portfolio and their geographic reach, in particular in the United States − the primary issuing market for international tourism. With its new portfolio of nearly 500 luxury and upscale properties, AccorHotels aims to generate about €65million in revenue and cost synergies in the medium-term from the amalgamation of brands, the maximization of hotel earnings, and the increased efficiency of marketing, sales and distribution channel initiatives. The deal comes shortly after Marriott’s US$12 billion takeover of Starwood, and continues with the rising trend of consolidation in the hotel industry.

Homeinns Sold to BTG for for RMB11.05 billion

Chinese state-owned BTG Hotels Group has announced that it will acquire domestic rival and leading economy hotel chain Homeinns Hotel Group for RMB11 billion (US$1.7 billion). BTG Hotels Group’s brands presently include BTG-Jianguo Hotels and Resorts, BTG-Jinglun Hotels and Shindom Inn, and the addition of Homeinns’ five brands will certainly help BTG round out its portfolio of brands. Listed on NASDAQ, Homeinns is the largest Chinese economy hotel chain, with more than 2,700 hotels in operation across 346 cities in China.

Carlson Rezidor Opens Park Inn by Radisson in Amritsar, India

Carlson Rezidor launched the Park Inn by Radisson hotel in Amritsar earlier this week. Located on the Airport Road, the hotel features 89 rooms, one restaurant and a lounge, a swimming pool, a fitness center and 53 square meters of meeting space. Complimentary shuttle services from the hotel to the city centre, railway station, airport, and the Golden Temple will be available to guests. The owner, Mr. Rajan Gill, also owns another hotel operating in the city − the Radisson Blu Amritsar. Amritsar, one of the oldest cities in the state of Punjab, is renowned world over for its famous religious and historical sites such as the Golden Temple, Jallianwala Bagh and Wagah border.

AccorHotels Strengthens Presence in Beijing

AccorHotels has joined hands with Luneng Group to open three hotels in the next three years. The first of the three openings will be the Mercure Beijing Luneng, a 75-room conversion project slated to open in Q4 2017. The other two newly-build properties – Pullman Beijing Luneng and MGallery Beijing Luneng – are expected to welcome its first guests in Q4 2018. Mercure Beijing Luneng will be located in Shunyi district, featuring two restaurants, a lounge and a function space. Pullman Beijing Luneng, also will be located in Shunyi district and will be a part of a mixed-use development that includes residential, retail and office components. On the other hand, MGallery will be built in Grasse Town, an upscale villa development in Tongzhou district, situated in the vicinity of several golf courses and a 15 minutes drive from the Beijing Capital International Airport.

Absolute Share Price Performance, as on 10 December 2015

Closing Share Price as at
10 Dec 2015
3 Nov 2015
% Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited
15.3
15.56
-1.7%
General Property Group
4.58
4.59
-0.2%
Mirvac Group
1.89
1.83
3.3%
Mantra Group
4.63
4.62
0.2%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd
47.25
42.5
11.2%
Dusit Thani Public Co Ltd
62.75
63
-0.4%
The Erawan Group Public Co Ltd
4.22
4.2
0.5%
Grande Asset Hotels and Property Public Co Ltd
0.82
0.92
-10.9%
Laguna Resorts & Hotel Public Co Ltd
24.7
24.9
-0.8%
Minor International Public Co Ltd
36.25
34.25
5.8%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd
15.02
17.05
-11.9%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd
8.85
9.37
-5.5%
Guangzhou Dong Fang Hotel Co Ltd
18.35
18.75
-2.1%
NASDAQ (US$)
China Lodging Group Ltd
30.04
29.83
0.7%
Home Inns & Hotels Management Inc
34.28
31.82
7.7%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd
13.46
13.36
0.7%
Regal Hotels International Holdings Ltd
3.8
3.82
-0.5%
Sino Hotels Holdings Ltd
2.3
2.3
0.0%
The Hong Kong & Shanghai Hotels Ltd
8.16
8.1
0.7%
Shangri-La Asia Limited
7.08
7.15
-1.0%
Dorsett Hospitality International
1.54
1.54
0.0%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)
107
104.7
2.2%
EIH (Oberoi Hotels & Resorts)
122
133
-8.3%
Hotel Leela Ventures
19.8
22.2
-10.8%
Korea Exchange (KRW)
The Shilla
82200
91600
-10.3%
Singapore Stock Exchange (S$)
Amara Holdings Ltd
0.435
0.425
2.4%
Ascendas Hospitality Trust
0.645
0.645
0.0%
Ascott Residence Trust
1.17
1.19
-1.7%
Banyan Tree Holdings Limited
0.44
0.475
-7.4%
CDL Hospitality Trusts
1.305
1.305
0.0%
Far East Hospitality Trust
0.635
0.625
1.6%
Hotel Grand Central Ltd
1.21
1.2
0.8%
Hotel Properties Ltd
3.65
3.7
-0.8%
Mandarin Oriental International Ltd (US$)
1.5
1.48
1.4%
OUE Hospitality Trust
0.77
0.79
-2.5%
Stamford Land Corporation Ltd
0.505
0.505
0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation
221.5
225.5
-1.8%
The Ambassador Hotel, Ltd
25.75
27.5
-6.4%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.
89400
90100
-0.8%
Imperial Hotel, Ltd
2435
2502
-2.7%

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.

Superior Results through Unrivaled Hospitality Intelligence. Everywhere.

HVS.com