;
HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 29 Jan 2016 (January 29, 2016)

Southeast Asia Launches 10-Year Plan to Market ASEAN as a Single Destination

During the 35th ASEAN Tourism Forum, which took place on 22nd January 2016, the ASEAN economic bloc officially announced the ASEAN Tourism Strategic Plan 2016-2025 − a ten-year plan to market the region collectively as a single destination. Of the ten strategic actions plans highlighted, expanding connectivity and enhancing travel facilitation was top of the agenda. The member nations are in favour of implementing a common ASEAN visa that will be valid everywhere within the bloc and could possibly come into effect within the next five years. Other areas addressed in the action plan include: intensifying promotion and marketing; diversifying tourism products; attracting tourism investment; raising capacity and capability of human capital; expanding destination infrastructure; upgrading local communities and public-private sector participation; ensuring safety and security; prioritizing protection and management of heritage sites, and increasing responsiveness to environmental protection and climate change. 

BTG Acquires HMIN to Enter Long-Term Rental Apartments Market

In December 2015, BTG Hotels Group acquired Homeinns Hotel Group (HMIN), a leading economy hotel chain in China, for RMB11 billion. Last week, Mr. Duan Qiang, President of BTG, said that while on one hand the reason for this acquisition is to grow BTG’s business in the mid- and low-end hotel markets, on the other hand, this is a strategy for BTG to enter the long-term rental apartments market. This month, Homeinns Group bought a new long-term rental apartment brand ‘Douhao Apartment’, which has seven apartments, totalling 600 rooms, in Shanghai, Shenzhen, Guanghzou and Xi’an. In 2015, a palpable fear of oversupply prompted many economy hotel chains in China to venture into long-term rental apartment products. Statistics indicate that while the cost of building such a product is RMB2 million cheaper than a same scale economy hotel, the revenue generation is higher than the latter. Considering the cost benefits and ROI, long-term rental apartments are soon expected to become a new trend in the hotel industry.

ASEAN Tourism Ministers Launched Inaugural Cruise South-East Asia Brand

In order to establish South-East Asia (SEA) as a cruising region of choice, ASEAN members unveiled a regional cruise product that taps on offering various combinations of destinations and tourism products. With the tagline ‘feel the warmth’, the brand emphasizes on the region’s warm hospitality and also refers to the year-round warm waters, which make it ideal for cruising. Deemed as a new source of growth in the region’s tourism industry, this is the first collaborative cruising brand to be launched with the support of various ASEAN tourism boards. The project, first proposed by Singapore to tap into the region’s potential in cruise tours, received significant support from the ASEAN members. The brand will be unveiled to the international cruise industry in March, at the Seatrade Cruise Global Conference and Tradeshow in Miami, Florida.  

L&H Hotel Management to debut two hotels in Bangkok and Pattaya

L&H Hotel Management Co, the hospitality subsidiary of property company Land & Houses Plc, is set to open two luxury hotels in Bangkok and Pattaya by 2018. Each property will require an investment budget of 2 billion baht and will be operated under its Grande Centre Point brand. The 442-room Grande Centre Point Hotel in Bangkok will be located in Soi Thong Lor, slated to open by the end of this year, while the hotel in North Pattaya will open in 2018. According to Suwanna Buddhaprasart, Director of L&H Hotel Management, “the average room rate of its Grande Centre Point hotels is higher than those under local hotel management chains but lower than international chains. Therefore, the price of Grande Centre Point is quite attractive.” The company believes in its hotel strengths which consist of its location, quality of service and larger rooms. The company forecasts hotel revenue will grow by 10% to 1.65 billion baht this year and RevPAR is expected to increase by 10%.

Absolute Share Price Performance, as on 29 January 2016

Closing Share Price as at
28  Jan 2016
21 Jan 2016
% Change
Australia Stock Exchange (ASX)
Event Hospitality and Entertainment Ltd
14.8
14.93
-2.2%
General Property Group
4.86
4.75
2.6%
Mirvac Group
1.895
1.89
-0.3%
Mantra Group
4.75
4.64
1.5%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd
38.5
40.5
-1.2%
Dusit Thani Public Co Ltd
67
68
-0.4%
The Erawan Group Public Co Ltd
3.88
3.94
1.5%
Grande Asset Hotels and Property Public Co Ltd
0.83
0.76
0.0%
Laguna Resorts & Hotel Public Co Ltd
23.4
23.4
-0.4%
Minor International Public Co Ltd
32.5
32.25
-0.8%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd
10.45
11.79
2.0%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd
6.5
7.14
-4.7%
Guangzhou Dong Fang Hotel Co Ltd
11.57
14
-0.7%
NASDAQ (US$)
China Lodging Group Ltd
28.41
27.43
1.4%
Home Inns & Hotels Management Inc
34.09
33.95
0.4%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd
12.78
12.8
-9.3%
Regal Hotels International Holdings Ltd
3.89
3.69
-11.5%
Sino Hotels Holdings Ltd
2.1
2.2
0.0%
The Hong Kong & Shanghai Hotels Ltd
7.7
7.38
-4.3%
Shangri-La Asia Limited
7.04
6.97
-1.7%
Dorsett Hospitality International
1.54
1.54
0.0%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)
110.4
109
-7.4%
EIH (Oberoi Hotels & Resorts)
121.45
116.9
-3.0%
Hotel Leela Ventures
18.65
18.6
-6.1%
Korea Exchange (KRW)
The Shilla
68500
64200
-7.4%
Singapore Stock Exchange (S$)
Amara Holdings Ltd
0.42
0.385
-3.8%
Ascendas Hospitality Trust
0.76
0.735
0.7%
Ascott Residence Trust
1.13
1.1
-2.2%
Banyan Tree Holdings Limited
0.37
0.35
-15.7%
CDL Hospitality Trusts
1.285
1.275
-1.9%
Far East Hospitality Trust
0.635
0.64
1.6%
Hotel Grand Central Ltd
1.12
1.17
-0.8%
Hotel Properties Ltd
3.59
3.59
-3.5%
Mandarin Oriental International Ltd (US$)
1.31
1.38
4.5%
OUE Hospitality Trust
0.74
0.74
-0.7%
Stamford Land Corporation Ltd
0.485
0.485
-2.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation
214.5
217
-0.2%
The Ambassador Hotel, Ltd
26.6
26.5
-0.9%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.
85900
86400
-4.4%
Imperial Hotel, Ltd
2296
2390
-8.3%

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