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HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 22 April 2016 (April 22, 2016)

Best Western Signs 4,150 Keys in Thailand, in Its Largest-Ever Hotel Pact

Best Western Hotels & Resorts announced the signing of its largest-ever multi-hotel agreement with real estate developer A D Houses Co. Ltd. to manage four hotels under the ‘Best Western Plus’ brand, in resort destinations across Thailand. The four hotels include the 1,400-room Best Western Plus AD The Grand Jomtien Beach Pattaya, the 1,200-room Best Western Plus AD Bang Saray Lake and Resort in Pattaya, the 1,050-room Best Western Plus AD Hua Hin Lake & Resort, and the 500-room Best Western Plus AD Wongamart Pattaya. These will add to the company’s existing collection of eight properties in Thailand, located in Bangkok, Phuket and Buriram. Three of these four hotels will also be the largest properties in Best Western’s international hotels portfolio. According to Ron Pohl, Best Western’s Senior Vice President of Brand Management, “In addition to celebrating Best Western’s 70th birthday this year, 2016 also marks our 15th year of having a strong presence in Asia. I am thrilled to mark these milestones with the signing of such an important agreement.” Furthermore, the company announced its first two Vīb hotels in Thailand, expected to open in Bangkok in 2017 and 2018.  

Alila Announces Opening of Its First Hotel in China

Alila Hotels and Resorts has announced the opening of Alila Anji, its first property in China. Anji is China’s first national ecological county, and one of the nation’s sustainable environmental development zones, in the Zhejiang province. The Alila Anji is a private resort situated in the hills overlooking a picturesque lake in the heart of leisure agriculture and rural tourism. With 74 villas and rooms, the Alila Anji is designed to resemble a traditional Chinese village with white washed exteriors and sweeping dark-tiled roofs. The property also features the brand’s signature Alila Spa, a main restaurant serving international cuisine, a Chinese restaurant, and a conference centre comprising several meeting rooms, an exclusive VIP lounge and a ballroom. Taking into account the area’s outstanding natural beauty, the resort is built in accordance with Alila’s strict environmental and design standards.

Marriott and Neo Capricorn Plaza Agree to End Management Contract for Courtyard By Marriott Pune City Centre

Marriott International and Neo Capricorn Plaza Pvt. Ltd. have mutually agreed to terminate the operating contract for the Courtyard by Marriott Pune City Centre in Pune, India. The hotel, which is located near Jehangir Hospital has been operated by Marriott since July 2011. The latter will cease to operate the property from June 10, 2016. The two companies have amicably decided to part ways and the decision will have no bearing on existing or future business ventures between them. The companies issued a joint press statement assuring their customers and Marriott Rewards members that the transition will be smooth and seamless with all commitments being honoured in terms of bookings, until the last day of operations.

Planned Expansion for Krabi Airport to Support Arrival Growth in Phuket

The Civil Aviation Authority of Thailand (CAAT) plans to expand Krabi Airport to handle more passenger arrivals expected. Krabi Airport is forecasted to receive an estimated two million additional passengers per year as the tourism growth in Krabi remains positive. The expansion will also help to accommodate the spillover from Phuket airport. The full conceptual plan for this expansion is due to be inked in June this year, according to CAAT. The initial steps will involve improving and enlarging the facility’s service areas, and increasing the number of runways and parking bays to facilitate long haul and low-cost carrier flights. The expansion will result in an expected increase in capacity from three million passengers per year to around five million passengers

Correction: In the blub titled ‘Deal Confirmed: The World’s Largest Hotel Company’ in the preceding HVS Asia Pacific Newsletter (dated 19 April, 2016), we had incorrectly stated that InterContinental Hotel Group is currently the “world’s largest hotel company by room inventory presently with a room inventory of 744,278 rooms worldwide”. We apologise for the error and hereby stand corrected. As per the annual reports of respective hotel companies, Marriott was the largest hotel company globally as of 31 December 2015 with a total inventory of 759,330 rooms followed by Hilton Worldwide (758,502 rooms) and InterContinental Hotels (744,368 rooms). Additionally, Starwood’s inventory for year-end 2015 was 369,967 rooms as published by them in their annual report. In the wake of the Marriott-Starwood deal confirmation, the two will now jointly consist of more than 1.1 million rooms with over 5,500 hotel properties across the globe. The amended blurb has now been updated in the online version of the newsletter on our website. (CLICK HERE TO READ) 

Absolute Share Price Performance, as on 21 April 2016

Closing Share Price as at

21 Apr 2016

15 Apr 2016

% Change

Australia Stock Exchange (ASX)

Event Hospitality and Entertainment Ltd

15.31

15.00

2.1%

General Property Group

4.77

4.93

-3.2%

Mirvac Group

1.91

1.94

-1.5%

Mantra Group

3.73

4.26

-12.4%

Bangkok Stock Exchange (THB)

Central Plaza Hotel Public Co Ltd

42.75

41.75

2.4%

Dusit Thani Public Co Ltd

82.00

80.75

1.5%

The Erawan Group Public Co Ltd

4.48

4.58

-2.2%

Grande Asset Hotels and Property Public Co Ltd

0.83

0.82

1.2%

Laguna Resorts & Hotel Public Co Ltd

24.50

24.60

-0.4%

Minor International Public Co Ltd

39.50

38.75

1.9%

China Shanghai Stock Exchange (RMB)

Jinling Hotel Corporation Ltd

12.31

13.34

-7.7%

China Shenzhen Stock Exchange (RMB)

Huatian Hotel Group Co Ltd

7.36

7.9

-6.8%

Guangzhou Dong Fang Hotel Co Ltd

13.12

13.12

0.0%

NASDAQ (US$)

China Lodging Group Ltd

36.63

37.32

-1.8%

Home Inns & Hotels Management Inc

35.71

35.71

0.0%

Hong Kong Stock Exchange (HK$)

Miramar Hotel & Investment Co Ltd

14.24

13.68

4.1%

Regal Hotels International Holdings Ltd

3.68

3.66

0.5%

Sino Hotels Holdings Ltd

2.53

2.65

-4.5%

The Hong Kong & Shanghai Hotels Ltd

8.65

8.30

4.2%

Shangri-La Asia Limited

9.15

9.43

-3.0%

Dorsett Hospitality International

1.54

1.54

0.0%

National Stock Exchange (INR)

IHCL (Taj Hotels, Resorts & Palaces)

106.85

104.00

2.7%

EIH (Oberoi Hotels & Resorts)

106.40

107.10

-0.7%

Hotel Leela Ventures

19.05

19.60

-2.8%

Korea Exchange (KRW)

The Shilla

70300

71300

-1.4%

Singapore Stock Exchange (S$)

Amara Holdings Ltd

0.43

0.41

4.9%

Ascendas Hospitality Trust

0.68

0.68

0.0%

Ascott Residence Trust

1.13

1.13

0.0%

Banyan Tree Holdings Limited

0.51

0.51

1.0%

CDL Hospitality Trusts

1.44

1.41

2.5%

Far East Hospitality Trust

0.67

0.66

0.8%

Hotel Grand Central Ltd

1.29

1.24

4.5%

Hotel Properties Ltd

3.49

3.55

-1.7%

Mandarin Oriental International Ltd (US$)

1.47

1.47

0.0%

OUE Hospitality Trust

0.70

0.69

2.2%

Stamford Land Corporation Ltd

0.54

0.53

1.9%

Taiwan Stock Exchange (NT$)

Formosa International Hotels Corporation

194

190.5

1.8%

The Ambassador Hotel, Ltd

26.1

26.15

-0.2%

Tokyo Stock Exchange (JPY)

Japan Hotel REIT Investment Corp.

96500

99500

-3.0%

Imperial Hotel, Ltd

2399

2388

0.5%

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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