BTG Hotels, Ali Travel and Shiji Network Establish Joint Company

BTG Hotels recently announced that it has created a joint company with Ali Travel and Shiji Network. The three have invested 50 million RMB in the joint company, and named it Zhejiang future hotel network technology co., LTD, temporarily. BTG Hotels is a large conglomerate of listed comprehensive tourism companies in China; Ali Travel is an online travel agency; and Shiji Network is the biggest PMS supplier in China. Based on Internet plus and cloud PMS, as well as the three company’s capital, technology, and data, the joint company aims to create new brand operations pattern in China. It seems like an online hotel alliance, offering member hotels the right to use its brand, marketing, distribution, technology, standard PMS data, and so on. Base on the above service, the joint company will also provide the member hotels’ customers self-service technology in choosing rooms, check-in, and printing Fapiao, among others.

Anbang Increases Bid to US$14 billion to Compete with Marriott for Starwood

The bidding war intensifies as the consortium led by Anbang Insurance Group Co. returned with an even higher offer of nearly US$14 billion to buy Starwood Hotels & Resorts Worldwide Inc. It was an industry shaking news when Marriott announced that it had offered US$12.2 billion in cash and stock to buy over Starwood in November 2015. However, the merger was contested by Anbang-led consortium in early March 2016 with a US$13.2 billion all cash bid to spark off the bidding frenzy. After Starwood declared that Anbang’s offer was more superior, Marriott came back with a sweetened offer of US$13.6 billion, which was then accepted by Starwood. However, Marriott’s takeover faces challenges as the consortium’s new offer may be too high for Marriott to outbid. It is unclear if Marriott will come back with a higher offer, but some analysts have expressed concerns over potential regulatory and legal hurdles in an Anbang-Starwood deal. Marriott could also potentially collect a breakup fee of more than US$400 million should it fail to secure Starwood, as part of the negotiation agreement. Starwood has now scheduled a meeting to consider the proposals on April 8.

Update: Starwood-Marriott-Anbang Bidding War Concludes

At the height of the bidding war for Starwood Hotels & Resorts Worldwide Inc., the consortium led by Anbang Insurance Group Co. has withdrawn its bid of US$14 billion, walking away from the non-binding offer it made on March 26 to counter Marriott International Inc.’s US$13.6 billion bid. This paves the way for Marriott to now complete its acquisition of Starwood to form the world’s largest hotel company.  While reasons were not specified, Anbang cited “various market considerations” have led the consortium to determined that it will not proceed further. Starwood and Marriott shareholders are separately scheduled to vote on the deal on April 8.

TAT Expects Significant Growth in Indian Weddings in Thailand

Tourism Authority of Thailand (TAT) organised a familiarization trip for 17 wedding planners from major Indian cities including Mumbai, New Delhi, Kolkata, Jaipur, Chandigarh and Bengaluru. The familiarization trip covered many destinations in Thailand such as Bangkok, Phuket, Khao Lak, Kanchanaburi, Hua Hin, Rayong and Pattaya. Thailand hosts about 300 weddings from India every year and each wedding party comprises 100 to 600 attendees and lasts from three to six days. The budget of these weddings ranges from 10 million baht to 50 million baht per event. According to Mrs. Srisuda Wannapinyosak, Deputy Governor for International Marketing – Asia and South Pacific of TAT, this market has a lot of potential to grow. Indian wedding planners find Thailand attractive for the growing number of destination weddings due to, amongst many other factors, air accessibility, great Thai hospitality and affordability of luxury. TAT is forecasting significant growth in the number of Indian weddings and honeymoons in Thailand.

Mfar Hotel to Invest in the Maldives

Mfar Hotels & Resorts, the hospitality arm of Mfar Group, announced on 24 March 2016, plans to invest approximately US$100 million in resort development in the Maldives. Initital designs consist of a 130-villa resort with the potential of expanding their footprint with two more resorts at a later stage. Currently, construction is expected to commence in the third quarter of 2016.

Absolute Share Price Performance, as on 31 Mar 2016