HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 15 Jan 2016 (January 19, 2016)

Shanghai Disney Resort to Open in June 2016

The Shanghai Disney Resort comprising six themed lands, a 420-key Shanghai Disneyland Hotel, an 800-key Toy Story Hotel, Disneytown and the Wishing Star Park, will soon open its gates to visitors, with its grand opening celebration scheduled on 16th June, 2016. This world-class resort, located in the Pudong District of Shanghai, will be Disney’s first destination resort in mainland China. Reportedly worth US$5.5 billion, the Shanghai Disney Resort is a joint venture between Disney and Shanghai Shendi Group, a Chinese state-run consortium. Besides the Disney Resort, two other large theme parks are expected to come up in Shanghai − the Hydron Polar Ocean Park in Pudong area, which is slated to open in 2017 and will be the biggest polar ocean park in China; and the first Legoland Discovery Center in Shanghai, announced by Merlin Entertainments Group last year. The opening of these theme parks will provide a solid thrust to the leisure segment and significantly contribute to hotel performance in the Shanghai market.

China's Ctrip to Invest US$180 Million in MakeMyTrip

India’s largest online travel agency, MakeMyTrip, announced an agreement under which Ctrip.com International Ltd., a leading travel service provider in China, will invest US$180 million in MakeMyTrip through convertible bonds. Additionally, the Chinese company, which is backed by US travel website Priceline.com, is expected to pick up additional shares of MakeMyTrip in the open market that will see the US$12.7 billion travel major own a 26.6% stake in the company, and assume the position of its largest stakeholder, ahead of SAIF Partners, T Rowe Price, Tiger Global and Founder and CEO, Deep Kalra. On completion of the investment, Ctrip will also have the right to appoint a director to the MakeMyTrip board. According to a statement, MakeMyTrip will use proceeds to strengthen its market share in the Indian online travel market, especially through the mobile platform, and on further building its technology.

Best Western Signs a New Premier Resort in Phuket

Best Western Hotels & Resorts has unveiled plans to open a new upscale resort in the Kamala area of Phuket Island. The company has penned an agreement to operate the Best Western Premier Himalai Resort, slated to open in 2019. The resort will offer 425 rooms and suites, an outdoor swimming pool, a fitness center, two food and beverage outlets, as well as meetings facilities and a business center to cater to corporate guests. Best Western Hotels & Resorts currently operates three properties in Phuket and a total of nine hotels and resorts across Thailand.

Hyatt Opens Fourth Hyatt Place Hotel in India

American hospitality chain Hyatt Hotels has opened the new Hyatt Place in Goa, which is the fourth hotel under their select-service brand ‘Hyatt Place’, after Hampi, Gurgaon and Pune. The hotel is located in north Goa, proximate to the state’s beaches − Calangute and Candolim, approximately 36 kilometers northwest of Goa’s Dabolim Airport and 21 kilometers southwest of Thivim Railway Station.  The hotel features 147 rooms, three food and beverage outlets, 1,006 square feet of meeting space, a 24-hour gym, and an outdoor swimming pool. The hotel is the brand’s third hotel in Goa after Grand Hyatt and Park Hyatt.

Carlson Rezidor Opens Radisson Blu Hotel in Udaipur, India

Carlson Rezidor has opened the Radisson Blu Udaipur Palace Resort & Spa, at the Lake City Mall of Riddhi Siddhi Group, in the heart of Udaipur. The hotel is situated in close proximity to the city’s key attractions and is less than an hour’s drive from the airport and ten minutes’ from the railway station. Radisson Blu Udaipur features 56 guest rooms, a 3,000 square feet banquet hall, an all-day dining restaurant, a lounge bar, a fitness center, a spa and a swimming pool. With the opening of this hotel, Carlson Rezidor now has 75 operational hotels in India and another 45 under various stages of development.

Kuoni India Brand Name to be Discontinued in the Country

Fairfax Financial Holdings, which owns Thomas Cook India, will discontinue the Kuoni brand name in India, in the coming months. Last year, Fairfax had acquired Kuoni Group’s travel businesses in India and Hong Kong. Under the agreement, Fairfax was granted access to the Kuoni name for one year in India and for five years in Hong Kong. Kuoni Hong Kong will remain in use. According to Madhavan Menon, Chairman and Managing Director − Thomas Cook India, SOTC and SITA are better known brands in India and therefore they would drop the Kuoni name going forward. Additionally, Kuoni India’s inbound business, Kuoni Destination Management, which operates under the SITA brand, will be merged with Fairfax’s Travel Corporation of India. Meanwhile, its outbound businesses, Thomas Cook India and SOTC India, will continue to operate as two different companies but share back-end services.

Absolute Share Price Performance, as on 14 January 2016

Closing Share Price as at
14  Jan 2016
7 Jan 2016
% Change
Australia Stock Exchange (ASX)
Event Hospitality and Entertainment Ltd
15.26
14.79
3.2%
General Property Group
4.63
4.53
2.2%
Mirvac Group
1.895
1.89
0.3%
Mantra Group
4.57
4.53
0.9%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd
41
41
0.0%
Dusit Thani Public Co Ltd
68.25
68.5
-0.4%
The Erawan Group Public Co Ltd
3.88
4.12
-5.8%
Grande Asset Hotels and Property Public Co Ltd
0.76
0.79
-3.8%
Laguna Resorts & Hotel Public Co Ltd
23.5
23.4
0.4%
Minor International Public Co Ltd
32.5
32.5
0.0%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd
11.56
12.9
-10.4%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd
7.49
8.47
-11.6%
Guangzhou Dong Fang Hotel Co Ltd
14.1
15.68
-10.1%
NASDAQ (US$)
China Lodging Group Ltd
27.04
29.8
-9.3%
Home Inns & Hotels Management Inc
33.82
33.95
-0.4%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd
14.12
13.6
3.8%
Regal Hotels International Holdings Ltd
4.17
4.26
-2.1%
Sino Hotels Holdings Ltd
2.2
2.31
-4.8%
The Hong Kong & Shanghai Hotels Ltd
7.71
8.07
-4.5%
Shangri-La Asia Limited
7.09
7.23
-1.9%
Dorsett Hospitality International
1.54
1.54
0.0%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)
117.7
117.8
-0.1%
EIH (Oberoi Hotels & Resorts)
120.5
129.5
-6.9%
Hotel Leela Ventures
19.8
21.5
-7.9%
Korea Exchange (KRW)
The Shilla
69300
72900
-4.9%
Singapore Stock Exchange (S$)
Amara Holdings Ltd
0.4
0.45
-11.1%
Ascendas Hospitality Trust
0.73
0.755
-3.3%
Ascott Residence Trust
1.125
1.15
-2.2%
Banyan Tree Holdings Limited
0.415
0.41
1.2%
CDL Hospitality Trusts
1.3
1.3
0.0%
Far East Hospitality Trust
0.63
0.635
-0.8%
Hotel Grand Central Ltd
1.18
1.18
0.0%
Hotel Properties Ltd
3.72
3.6
3.3%
Mandarin Oriental International Ltd (US$)
1.32
1.47
-10.2%
OUE Hospitality Trust
0.745
0.76
-2.0%
Stamford Land Corporation Ltd
0.495
0.49
1.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation
217
219.5
-1.1%
The Ambassador Hotel, Ltd
26.5
26.7
-0.7%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.
86400
87100
-0.8%
Imperial Hotel, Ltd
2390
2332
2.5%

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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