TCC Hotels Group announced plans to invest more than US$644 million to build and renovate seven hotels under the management agreement with Marriott International. The purpose of the investment is to serve increasing demand from business travelers coupled with the potential growth in MICE business in Thailand. Under TCC plans, the 1251-room Imperial Queen’s Park Hotel will be rebranded as Bangkok Marriott Hotel Queen’s Park; the 197-room Phuket Marriott Resort & Spa will reopen in April after a renovation worth 2.3 billion baht, while the 322-room Hua Hin Marriott Resort & Spa will open this month after a 3 billion baht facelift. The other four new properties, which are under construction, include a property on Surawong Road, due to open this year, a property along the Chao Phraya River near Asiatique, opening in 2019, and another property in Pattaya, slated for completion in 2020. The last property will be managed under the Ritz-Carlton brand and will be located either on Wireless Road or opposite Lumpini Park.
Wanda Group plans to invest more than €3 billion (US$3.3 billion) in building a world-class integrated theme park in Paris. ‘EuropaCity’, which spans more than 80 hectares, will be located 10 kilometers northeast of Paris. According to a company statement, this will be the biggest single investment project in Europe to date, and will include a theme park, show stage, hotel, retail stores and conference centers. The move indicates a renewed overseas push, emphasizing Wanda’s increasingly global ambitions. As the group faces declining sales from its main real estate business, it increasingly looks towards expanding the film, tourism and sports businesses in order to bolster future growth.
Taj Hotels Resorts and Palaces, a subsidiary of Indian Hotels Company Ltd. (IHCL), said it has decided to discontinue the management contract for The Gateway Hotel Rawalkot Jaisalmer in Rajasthan, from 31 March 2016. This is the third Gateway branded property that the group has decided to exit in the last three months. However, IHCL did not cite any reason for ending the management contract after fourteen years of operating the 31-key property. Post the exit, Taj Group will have a network of 27 Gateway properties in various locations across the country.
Sarovar Hotels & Resorts opened the Kalyan Hometel in Vandalur, Chennai, located in the industrial corridor along GST Road. The hotel offers 108 rooms and suites, an all-day dining restaurant, a bar and a fitness centre. The hotel also offers 3,800 ft2 of banquets and conferences space along with a business center to host meetings and social events. The Kalyan Hometel is the brand’s third hotel in the city. GST Road, which starts at the Chennai airport and extends further south to join the NH-45, continuing till Chengalpet, supports key demand generating areas such as the Madras Export Processing Zone (MEPZ), Gateway and Estancia IT SEZs, Ford Factory and Mahindra World City.
After a record-setting year in 2013, Singapore’s tourism industry has since experienced muted growth in both tourism arrivals and revenue in the following year, a trend that seems to have persisted in 2015. Despite achieving a 0.9% growth in total visitor arrivals in 2015, the Singapore Tourism Board (STB) reported a 6.8% decline in total tourism receipts to reach S$22 billion. This is the first decline since 2009, when the world’s travel industry took a hit due to the global financial crisis in 2008, and the lowest since 2010's S$18.9 billion. STB has attributed the fall in tourism receipts to a decline in high-spending business and MICE travelers, which represents 25% of the city state’s total visitor arrivals. Consequently, the hotel industry felt similar effects, reflected by a consistent decline in trading performance across luxury to economy hotel markets. According to STB statistics, the luxury, upscale, mid-tier and economy hotel markets have experienced a RevPAR decline of 3.9%, 1.8%, 4.9% and 5.2% respectively, driven primarily by a fall in average room rates across the markets in 2015. Going forward, the hotel performance in Singapore is expected to remain under pressure in 2016 as a result of muted travel demand growth exacerbated by new supply coming into the market this year.
Closing Share Price as at
3 Mar 2016
25 Feb 2016
Australia Stock Exchange (ASX)
Event Hospitality and Entertainment Ltd
General Property Group
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd
Dusit Thani Public Co Ltd
The Erawan Group Public Co Ltd
Grande Asset Hotels and Property Public Co Ltd
Laguna Resorts & Hotel Public Co Ltd
Minor International Public Co Ltd
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd
Guangzhou Dong Fang Hotel Co Ltd
China Lodging Group Ltd
Home Inns & Hotels Management Inc
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd
Regal Hotels International Holdings Ltd
Sino Hotels Holdings Ltd
The Hong Kong & Shanghai Hotels Ltd
Shangri-La Asia Limited
Dorsett Hospitality International
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)
EIH (Oberoi Hotels & Resorts)
Hotel Leela Ventures
Korea Exchange (KRW)
Singapore Stock Exchange (S$)
Amara Holdings Ltd
Ascendas Hospitality Trust
Ascott Residence Trust
Banyan Tree Holdings Limited
CDL Hospitality Trusts
Far East Hospitality Trust
Hotel Grand Central Ltd
Hotel Properties Ltd
Mandarin Oriental International Ltd (US$)
OUE Hospitality Trust
Stamford Land Corporation Ltd
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation
The Ambassador Hotel, Ltd
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.
Imperial Hotel, Ltd
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.
Stay current. Click here to receive free HVS newsletters