HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 19 September 2014 (September 25, 2014)

Emerging destination: Tasmania

In 2013 Tasmania experienced a 33% year on year growth in tourists travelling from the Asia Pacific region to Tasmania with China replacing the US as the island’s top feeder market. Tourism Tasmania highlights affordable travelling in the years to come as the destination hopes to attract a younger segment of those who are 30 and above. With this in mind the government plans to spend US$3.6 million towards promoting tourism for Tasmania, aimed specifically at the Asia Pacific region. Further investment into transportation infrastructure improvements such as the airport and alongside with plans for opening of new hotels and golf courses should support the target of 1.5 million international visitors by 2020, compared with approximately 156,000 million visitors reached in 2013.

Convention and Visitor Bureau in Johor

By 2016, Johor, in southern Malaysia, hopes to attract more hotel investors in order to support its state convention bureau. Iskandar Regional Development Authority (IRDA) and Johor Department of Tourism are working together to attract more business events. Hotel rooms supply is expected to increase by another 1,600 rooms by 2015 in Iskandar, Malaysia while Johor has approximately 17,000 rooms. There are currently two other Convention and Visitor Bureaus in Malaysia which are located in East Sarawak and Penang (to open in early 2015) respectively.

Five Percent Increase for International Tourism in 2014

According to UNTWO Barometer, international tourism increased by 5% in the first half of 2014 which was 22 million more tourists received by worldwide destinations in the same period of 2013. It has been noted that the strongest growth is America at 6%. Following after was both Asia Pacific and Europe at 5%. Best performers in growth were mainly from sub regions such as South Asia and Northern Europe with 8%. Tourist spending followed with an increase as well with the increase in travel. Emerging markets such as the Chinese was up by 16% in the first half of this year in tourism expenditures as compared to 26% whole of last year. Though demand generated by such markets is still going strong, there seem to be a slow down this year.

Thailand and Malaysia Welcomes 7 Days Inn

It is reported that the first 7 Days Inn, China’s major budget hotel brand is expected to open in Chiang Mai, its second property to open in Bangkok, Thailand and third to open in Malacca, Malaysia. 7 Days Inn was started in 2005 and has how 2,000 over properties around China. Plateno Group who owns the brand aims to set up a regional office in Singapore in order to manage the new openings closely and help further with expansion plans for the brand. It is stated that the brand aims to appeal to the local market but still maintain its positioning for young travellers.

Resorts World Bayshore: Soon To Come By 2018

Resorts World Bayshore will open in 2018 at Manila Bay’s Entertainment City with three hotels with a total approximately 2,800 keys. It is expected to be larger than its sister property: Resorts World Manila which opened four years ago with 1,574 rooms. These integrated resorts appear to be successful in attracting leisure and MICE business to the area, creating demand and a need for further developments on this type beyond the Resorts World Manila and Solaire Resort and Casino in Entertainment City.

Singapore: Goodbye Traders, Welcome Hotel Jen

A new fresh, hassle-free, mid-range brand has come to town known as Hotel Jen by Shangri-La International Hotel Management Ltd which was once known as Traders. The opening of its first property, located in Orchard Gateway, marks the beginning of the launch of Hotel Jen across nine other key gateway destinations from September 2014 to March 2015. Having the first property in Singapore due to its maturity as a tourism destination, will support its positioning for guests to have a local cultural experience. The brand highlights three main aspects to its customers: Simple pleasures, Easy efficiency and A Sense of Adventure.

Absolute Share Price Performance, as at 19 September 2014

Closing Share Price as at19 Sep 201412 Sep 2014% Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited9.469.322%
General Property Group3.883.94-2%
Mirvac Group1.751.712%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd39.2539.50-1%
Dusit Thani Public Co Ltd63.0063.50-1%
The Erawan Group Public Co Ltd4.965.20-5%
Grande Asset Hotels and Property Public Co Ltd2.661.7056%
Laguna Resorts & Hotel Public Co Ltd33.2533.75-1%
Minor International Public Co Ltd35.0034.252%
China Shanghai Stock Exchange (RMB)
Shanghai Jinjiang International Hotels Development20.9620.771%
BTG Hotels Group Co Ltd15.2515.25-
Jinling Hotel Corporation Ltd9.699.71-
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd6.246.61-6%
Guangzhou Dong Fang Hotel Co Ltd9.499.46-
Shenzhen Century Plaza Hotel Co Ltd4.994.99-
Huazhu Hotels Group Ltd25.8225.521%
Home Inns & Hotels Management Inc30.0730.24-1%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd10.0210.18-2%
Regal Hotels International Holdings Ltd4.904.655%
Sino Hotels Holdings Ltd2.552.70-6%
The Hong Kong & Shanghai Hotels Ltd11.9212.08-1%
Shangri-La Asia Limited11.8611.98-1%
Dorsett Hospitality International1.481.51-2%
National Stock Exchange
IHCL (Taj Hotels, Resorts & Palaces)98.4098.60-
EIH (Oberoi Hotels & Resorts)97.15104.25-7%
Hotel Leela Ventures23.6024.90-5%
Korea Exchange (KRW)
The Shilla117,000109,5007%
Singapore Stock Exchange (S$)
Amara Holdings Ltd0.540.57-5%
Ascendas Hospitality Trust0.730.721%
Ascott Residence Trust1.221.24-2%
Banyan Tree Holdings Limited0.650.642%
CDL Hospitality Trusts1.641.70-4%
Far East Hospitality Trust0.810.83-2%
Hotel Grand Central Ltd1.341.35-1%
Hotel Properties Ltd4.204.151%
Mandarin Oriental International Ltd (US$)1.771.77-
OUE Hospitality Trust0.940.896%
Shangri-La Asia Limited (HK$)12.0212.02-
Stamford Land Corporation Ltd0.570.60-5%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation330.00333.50-1%
The Ambassador Hotel, Ltd27.6527.451%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp.61,60063,700-3%
Imperial Hotel, Ltd2,3202,2243%

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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