;
HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 15 April 2016 (April 18, 2016)

ITC Hotels Renews Partnership with Starwood in India

Indian luxury hospitality chain ITC Hotels announced the renewal of its partnership with Starwood Hotels and Resorts this week. The agreement covers 11 existing ITC hotels co-branded under the Luxury Collection brand and one Sheraton property. Three forthcoming ITC Luxury Collection hotels in India namely the ITC Kohinoor in Hyderabad, ITC Narmada in Ahmedabad and ITC Royal Bengal in Kolkata, which are due to open in the next four years are also included in the agreement. The ITC and Starwood partnership dating back to 1979 began with the signing of the Sheraton brand. In 2007, the companies signed an agreement through which Starwood launched The Luxury Collection brand in India, operated by ITC.

Bombay High Court Invalidates the Sale of Park Hyatt in Goa to ITC

The Bombay High Court has quashed the sale of the luxury resort Park Hyatt in Goa to ITC Limited, by lender Industrial Financial Corporation of India (IFCI). ITC had emerged as the highest bidder of the property in February last year with an offer of approximately INR515 crore.The auction, initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) 2002, as a result of default on loan repayments to IFCI by Blue Coast Hotels, was challenged by Blue Coast with the argument that the price quoted by the top bidder (ITC), was lower than half the marquee property's value. The latest ruling dated 23 March 2016, has allowed Blue Coast to retain physical possession of the property and also provided six weeks to ITC and IFCI from the date of passing this order to challenge the ruling in the Supreme Court. The 250-room hotel in Goa, the first Park Hyatt in India, is spread across 45 acres and has a built-up area of 25,812m2.

Marriott International’s Starwood Takeover Approved by Shareholders

On April 8, 2016, shareholders from both Marriott International and Starwood Hotels and Resorts Worldwide finally approved Marriott’s bid on Starwood, which marks the beginning of a merger between the two companies. Holders of more than 97 percent of Marriott shares and over 95 percent of Starwood shares voted in favor of the cash-and-stock deal, which was valued at US$12.41 billion. The transaction is expected to close by mid-2016 once Starwood ceases its timeshare business by the end of April this year. At closing Starwood stockholders will receive 0.8 shares of Marriott common stock plus US$21.00 in cash for each share of Starwood common stock.

Absolute Share Price Performance, as on 15 Aprl 2016

Closing Share Price as at
15 Apr 2016
7 Apr 2016
% Change
Australia Stock Exchange (ASX)
Event Hospitality and Entertainment Ltd
15.00
15.00
0.3%
General Property Group
4.93
4.93
0.4%
Mirvac Group
1.94
1.94
2.4%
Mantra Group
4.26
4.26
-2.5%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd
41.75
42.25
-1.2%
Dusit Thani Public Co Ltd
80.75
79.00
2.2%
The Erawan Group Public Co Ltd
4.58
4.50
1.8%
Grande Asset Hotels and Property Public Co Ltd
0.82
0.83
-1.2%
Laguna Resorts & Hotel Public Co Ltd
24.60
24.40
0.8%
Minor International Public Co Ltd
38.75
36.75
5.4%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd
13.34
12.56
6.2%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd
7.9
7.68
2.9%
Guangzhou Dong Fang Hotel Co Ltd
13.12
13.12
0.0%
NASDAQ (US$)
China Lodging Group Ltd
37.32
36.90
1.1%
Home Inns & Hotels Management Inc
35.71
35.71
0.0%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd
13.68
13.48
1.5%
Regal Hotels International Holdings Ltd
3.66
3.68
-0.5%
Sino Hotels Holdings Ltd
2.65
2.65
0.0%
The Hong Kong & Shanghai Hotels Ltd
8.30
7.89
5.2%
Shangri-La Asia Limited
9.43
9.20
2.5%
Dorsett Hospitality International
1.54
1.54
0.0%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces)
104.00
101.10
2.9%
EIH (Oberoi Hotels & Resorts)
107.10
105.75
1.3%
Hotel Leela Ventures
19.60
19.40
1.0%
Korea Exchange (KRW)
The Shilla
71300
67600
5.5%
Singapore Stock Exchange (S$)
Amara Holdings Ltd
0.41
0.40
2.5%
Ascendas Hospitality Trust
0.68
0.68
0.0%
Ascott Residence Trust
1.13
1.10
2.3%
Banyan Tree Holdings Limited
0.51
0.50
2.0%
CDL Hospitality Trusts
1.41
1.30
8.1%
Far East Hospitality Trust
0.66
0.64
3.9%
Hotel Grand Central Ltd
1.24
1.22
1.2%
Hotel Properties Ltd
3.55
3.56
-0.3%
Mandarin Oriental International Ltd (US$)
1.47
1.41
4.3%
OUE Hospitality Trust
0.69
0.67
2.2%
Stamford Land Corporation Ltd
0.53
0.51
4.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation
190.5
188
1.3%
The Ambassador Hotel, Ltd
26.15
26.50
-1.3%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.
99500
102900
-3.3%
Imperial Hotel, Ltd
2388
2341
2.0%

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.

Superior Results through Unrivaled Hospitality Intelligence. Everywhere.

HVS.com