HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 26 August 2016 (August 29, 2016)

IHG Announces Global Partnership with Alipay

InterContinental Hotels Group (IHG) has announced a global partnership with Alipay, China’s leading third-party online payment solutions company. The announcement builds on IHG’s existing partnership with Alipay, formed back in 2012, when IHG became the first international hotel company to launch a flagship e-store on Alitrip (ihg.alitrip.com). Through this partnership, IHG now becomes the first global hotel company to give Chinese guests the ability to pay via Alipay through all of IHG's online and mobile channels, as well as across all IHG hotels globally. The partnership, which has been agreed with Alipay’s parent company, Ant Financial will initially apply to more than 270 IHG hotels in Greater China, as well as a number of hotels around the world that participate in IHG’s China Ready Programme, offering a range of tailored services to Chinese travellers. The global rollout of Alipay will begin in 2017. IHG entered the China market more than 30 years ago and China is now its second largest market globally. The partnership will allow IHG to further capitalise on the significant increase in Chinese outbound travel.

Le Meridien Debuts in Putrajaya

Starwood continues its expansion into Southeast Asia with the recent opening of the Le Meridien Putrajaya in Malaysia. This new property becomes the third Le Meridien in Malaysia, after Le Meridien Kuala Lumpur and Le Meridien Kota Kinabalu. Located in Malaysia’s administrative center. Le Meridien Putrajaya features 353 rooms and suites, two swimming pools, a kid’s club, two restaurants and 15 function rooms including one large ballroom that measures approximately 2,500 square meters. On this occasion, Charlie Dang, Starwood’s Regional Vice President for Southeast Asia, commented, “Malaysia continues to be a bright spot for our growth and development. With the country’s growing influx of visitors, the opening of Le Meridien Putrajaya is set to be an inspired alternative to a traditional urban hotel stay.”

Hotel Openings in India this week

ibis Hyderabad HITEC City: AccorHotels and InterGlobe Hotels announced the opening of the ibis Hyderabad HITEC City, marking the debut of the ibis brand in Hyderabad. The hotel features 178 rooms, an all-day dining restaurant and a lobby bar. Hyderabad, known for its heritage, history, and iconic tourist attractions, is an important business and leisure destination in India. In recent years, the city has also emerged as a major MICE destination.

RS Sarovar Portico, Palampur: Sarovar Hotels recently launched the RS Sarovar Portico in Palampur, Himachal Pradesh. With 43 rooms and suites, the hotel features two restaurants, a bar, 8,000 square feet of meeting space, and a fitness center. The new hotel joins Sarovar’s portfolio of more than 75 hotels in 50 destinations across India. The tea capital of Northwest India, Palampur is an important leisure destination that attracts nature lovers and adventure enthusiasts. It is the gateway to numerous tourist and pilgrimage destinations in Himachal Pradesh.

First Oakwood to Open in Vietnam’s Ho Chi Minh City

Oakwood has marked its entry into the Vietnamese market with the signing of a new serviced residence in Ho Chi Minh City. Scheduled to launch in the fourth quarter of 2016, the Oakwood Apartments Ho Chi Minh City will be located in the city’s District 3, not far from the city center. The property will feature 68 units, ranging from studios to one- and two-bedroom apartments. Other facilities will include a gym, a restaurant and an exclusive lounge for residents. “Vietnam’s economy has been growing steadily with strong foreign direct investments. Oakwood Asia Pacific’s core business is in providing serviced apartments for business travelers, and this is a timely opportunity for us to debut in Vietnam,” said by Dean Schreiber, Managing director of Oakwood Asia Pacific. Oakwood currently manages a portfolio of 27 properties in 15 cities across eight Asian countries and territories in Asia.

South Korean Travelers Decline Trips to Europe as Terrorism Attacks Increase

After several terrorist attacks in major European cities and an attempted coup in Turkey, South Korean tourists appear to be reducing their trips to Europe this year. Several outbound travel agents in South Korea have reported declines as high as up to 20 per cent in group bookings. Overall, travel across Europe has declined by about 10 per cent after the series of terrorist attacks in 2016. Turkey, traditionally a popular destination among South Korean tourists, has become a much less desired touristic destination after the attempted coup in July 2016. Instead, South Koreans are gradually shifting their interests towards Southeast Asian destinations. The number of visitors to Taiwan was up 21.8 percent while Vietnam experienced an increase of 12.4 percent.

Absolute Share Price Performance, as on 25 Aug 2016

Closing Share Price as at 25 August 2016 18 August 2016 % Change
Australia Stock Exchange (ASX)
Event Hospitality and Entertainment Ltd 15.39 15.40 -0.1%
General Property Group 5.38 5.37 0.2%
Mirvac Group 2.31 2.28 1.3%
Mantra Group 3.17 3.40 -6.8%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 42.00 41.50 1.2%
Dusit Thani Public Co Ltd 11.00 11.10 -0.9%
The Erawan Group Public Co Ltd 4.94 5.10 -3.1%
Grande Asset Hotels and Property Public Co Ltd 0.88 0.88 0.0%
Laguna Resorts & Hotel Public Co Ltd 25.25 26.00 -2.9%
Minor International Public Co Ltd 40.00 39.25 1.9%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 13.67 13.94 -1.9%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 7.12 7.41 -3.9%
Guangzhou Dong Fang Hotel Co Ltd 13.12 13.12 0.0%
China Lodging Group Ltd 43.57 43.79 -0.5%
Home Inns & Hotels Management Inc 35.71 35.71 0.0%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 13.50 13.60 -0.7%
Regal Hotels International Holdings Ltd 4.03 3.82 5.5%
Sino Hotels Holdings Ltd 2.38 2.48 -4.0%
The Hong Kong & Shanghai Hotels Ltd 8.07 7.90 2.2%
Shangri-La Asia Limited 8.40 8.71 -3.6%
Dorsett Hospitality International 1.54 1.54 0.0%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 131.20 133.00 -1.4%
EIH (Oberoi Hotels & Resorts) 114.95 109.25 5.2%
Hotel Leela Ventures 18.05 17.30 4.3%
Korea Exchange (KRW)
The Shilla 66100 62000 6.6%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.410 0.415 -1.2%
Ascendas Hospitality Trust 0.735 0.730 0.7%
Ascott Residence Trust 1.150 1.145 0.4%
Banyan Tree Holdings Limited 0.415 0.440 -5.7%
CDL Hospitality Trusts 1.415 1.420 -0.4%
Far East Hospitality Trust 0.605 0.610 -0.8%
Frasers Hospitality Trust 0.785 0.790 -0.6%
Hotel Grand Central Ltd 1.350 1.330 1.5%
Hotel Properties Ltd 3.440 3.460 -0.6%
Mandarin Oriental International Ltd (US$) 1.330 1.370 -2.9%
OUE Hospitality Trust 0.685 0.690 -0.7%
Stamford Land Corporation Ltd 0.465 0.465 0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 178.50 178.50 0.0%
The Ambassador Hotel, Ltd 25.45 25.70 -1.0%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 86500 85600 1.1%
Imperial Hotel, Ltd 2137 2137 0.0%

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.