HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 26 Feb 2016 (February 29, 2016)

Homeinns to Start Homestay Business in March

Homeinns Hotel Group is set to launch its homestay business, which will be operating under its sub-brand ‘Fairyland Homestay’ (or Yun Shang Si Ji Homestay), through partnerships with qualified house-owners. After having conducted a research in the second half of 2015, the company has now sealed agreements with 33 B&B owners across eight cities in China, in order to run pilot tests on the operations and management system. The homestay business and operator recruitment will be officially launched in March, with the Yunnan province, the Jiangsu Zhejiang Shanghai region, Hainan, Fujian, and Guangxi provinces being the initial targets. The Fairyland Homestay brand was spun off from the Fairland Hotel brand, which was fully acquired by Homeinns at a cost of RMB230 million in 2014. Unlike the standardized franchise model of Homeinns hotels, its homestay business will not charge a franchise fee or other fees, except the cost on brand services, resulting in 50% lowers costs as compared to its regular hotel franchise fee.

Marriott International Expands in Japan with Rebanding of Five Mori Trust Hotels

Marriott International and Japan’s leading lodging company Mori Trust Group announced the signing of five hotels in Japan, under the ‘Marriott Hotels’ brand. The agreements will see Marriott International double the footprint of its flagship ‘Marriott Hotels’ brand in Japan and increase its Japanese presence to 20 properties.  Mori Trust Group is expected to renovate five existing Laforet properties and rebrand them as Marriott Hotels, over the next two years. Offering approximately 840 rooms, these five properties are part of the large-scale hotel renovation plan announced by Mori Trust Group in October last year, with an estimated investment of 16 billion yen. The agreements between the two companies will further strenghten their existing relationship that had earlier led to the successful opening of three other properties in Japan, under the ‘Marriott’ and ‘Courtyard by Marriott’ brands. This collaboration is in line with Marriott International’s strategic expansion plans across Asia, and aims to meet the needs of the rapidly growing number of inbound travelers into Japan.

IHG Adds InterContinental Pattaya Resort to Its Portfolio

InterContinental Hotel Group (IHG) signed a management agreement with Thai-based developer, Amburaya Hotels & Resorts, to rebrand the Sheraton Pattaya Resort to InterContinental Pattaya Resort. The resort will begin operation under the ‘InterContinental’ brand from 1st April, 2016. The refurbishment program will be conducted in phases, throughout the first two years of operations, and is scheduled to complete in 2018. Located on Phra Tamnak Hill in Pattaya, the 156-room resort is a five-minute walk from the Pattaya Exhibition and Convention Centre. Currently, IHG operates three InterContinental hotels and resorts in Thailand, including the InterContinental Hotel Bangkok, InterContinental Hua Hin Resort and InterContinental Samui Baan Taling Ngam Resort.

Courtyard by Marriott Opens in Raipur, India

Marriott International opened the Courtyard by Marriott Raipur − its 14th Courtyard in the country and second in the state (Chhattisgarh). The hotel features 96 rooms and 12 suites, an all day dining restaurant,  a coffee bar and a bar, approximately 13,832 ft2 of meetings and events space, a spa (yet to commence operations), a fitness centre, and a swimming pool. Raipur, the capital of Chhattisgarh, is regarded as an important industrial hub for coal, power, steel, and aluminium based industries.

Absolute Share Price Performance, as on 25 Feb 2016

Closing Share Price as at
25 Feb 2016
18 Feb 2016
% Change
Australia Stock Exchange (ASX)
Event Hospitality and Entertainment Ltd
15.38
15.1
1.9%
General Property Group
4.98
4.99
-0.2%
Mirvac Group
1.84
1.835
0.3%
Mantra Group
3.9
4.6
-15.2%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd
39.75
36.75
8.2%
Dusit Thani Public Co Ltd
67
64.75
3.5%
The Erawan Group Public Co Ltd
4.06
3.94
3.0%
Grande Asset Hotels and Property Public Co Ltd
0.78
0.78
0.0%
Laguna Resorts & Hotel Public Co Ltd
24.6
23.7
3.8%
Minor International Public Co Ltd
35.75
35
2.1%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd
11.33
11.71
-3.2%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd
6.89
7.4
-6.9%
Guangzhou Dong Fang Hotel Co Ltd
12.99
13.5
-3.8%
NASDAQ (US$)
China Lodging Group Ltd
27.89
27.33
2.0%
Home Inns & Hotels Management Inc
34.89
34.26
1.8%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd
12.84
12.74
0.8%
Regal Hotels International Holdings Ltd
3.87
3.74
3.5%
Sino Hotels Holdings Ltd
2.3
2.24
2.7%
The Hong Kong & Shanghai Hotels Ltd
7.64
7.76
-1.5%
Shangri-La Asia Limited
7.26
7.24
0.3%
Dorsett Hospitality International
1.54
1.54
0.0%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)
100.9
102.45
-1.5%
EIH (Oberoi Hotels & Resorts)
106.65
104.3
2.3%
Hotel Leela Ventures
17
17.3
-1.7%
Korea Exchange (KRW)
The Shilla
63200
65700
-3.8%
Singapore Stock Exchange (S$)
Amara Holdings Ltd
0.4
0.37
8.1%
Ascendas Hospitality Trust
0.765
0.74
3.4%
Ascott Residence Trust
1.11
1.1
0.9%
Banyan Tree Holdings Limited
0.455
0.45
1.1%
CDL Hospitality Trusts
1.275
1.28
-0.4%
Far East Hospitality Trust
0.64
0.635
0.8%
Hotel Grand Central Ltd
1.23
1.19
3.4%
Hotel Properties Ltd
3.48
3.4
2.4%
Mandarin Oriental International Ltd (US$)
1.255
1.22
2.9%
OUE Hospitality Trust
0.745
0.74
0.7%
Stamford Land Corporation Ltd
0.475
0.485
-2.1%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation
212.5
214.5
-0.9%
The Ambassador Hotel, Ltd
26.25
26.3
-0.2%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.
96800
91000
6.4%
Imperial Hotel, Ltd
2451
2427
1.0%

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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