HVS - ASIA PACIFIC HOSPITALITY NEWSLETTER - For The Week Ending 2 September 2016 (September 13, 2016)

Frasers to Launch New Serviced Residence in Putrajaya, Malaysia

Frasers Hospitality Group will launch its first Gold-Standard serviced residence, the Fraser Residence Putrajaya in the federal administrative center of Malaysia. Only 20 minutes from the Kuala Lumpur International Airport, Putrajaya is located next to Cyberjaya, a fully integrated high-tech business district. Putrajaya is also well-connected to other commercial and residential areas within the Klang Valley and serves as the venue for a number of large-scale sporting and cultural events. Strategically located between Putrajaya and Cyberjaya, the 253-unit Fraser Residence Putrajaya enjoys unobstructed views of the Putrajaya Lake, which marks the center of the precinct. It also offers convenient access to restaurants, retail outlets and offices within its mixed-use development, as well as other dining options, supermarkets, schools and a hospital within the area. The opening of Fraser Residence Putrajaya in 2019 will add to Frasers Hospitality Group’s growing portfolio in Malaysia, which is targeted to increase to eight properties with more than 2,400 units by 2019.

Four Points by Sheraton Set for Massive Expansion in Indonesia

In just over a year, Four Points by Sheraton – the mid-scale brand under Starwood Hotels & Resorts Worldwide, has opened six properties in key tourist destinations across Indonesia, including Surabaya, Bandung, Makassar, Bali and, most recently, Jakarta with the opening of the 164-room Four Points by Sheraton Jakarta, Thamrin, earlier this year in August. The next phase for the brand’s expansion in Indonesia will include a new property in Manado in 2017 and one each in Bintan and Bali, in the year 2018.  “The Indonesian government is looking into doubling the number of arrivals to the country by 2019 and they would need more hotels, and we see the opportunity to enter the market. We also see there is a huge growth of the middle class and the Four Points by Sheraton brand fits into the middle class.”, said Hazel Ooi, Manager of Brand Management - Asia Pacific at Starwood Hotels & Resorts Worldwide. Four Points by Sheraton currently has 50 operating hotels in the Asia Pacific region, and plans to expand its portfolio of rooms by 60 per cent within the next five years.

Bird Group Ends Alliance with The Dusit Thani Group and Rebrands Its Hotels

Delhi-based Bird Group is ending its association with The Dusit Thani Group, a Thai hospitality company, and is planning on rebranding its hotels in India and the UK under the brand name Roseate Hotels and Resorts, which they would be managing themselves. The group will be launching its second property in Delhi this week under the name Roseate House. The existing Dusit Devarana will be rebranded as the Roseate New Delhi. Additionally, The Royal Park and The Forbury, owned by Bird Group and located in the United Kingdom, will be rebranded as the Royal Park Roseate House and Forbury Roseate, respectively. Roseate House is planned to be more of a city hotel while the Roseate Resort is aimed at providing an out-of-city experience. The group is also targeting to launch hotels in the Indian cities of Jaipur, Rishikesh and Goa.

Chateau on the Park – Christchurch, a DoubleTree by Hilton Hotel Opens in New Zealand

The former Chateau on the Park in Christchurch, New Zealand will be rebranded as Chateau on the Park – Christchurch, a DoubleTree by Hilton. The hotel will be the second DoubleTree by Hilton and the fourth Hilton property in the country. Located on Deans Avenue and adjacent to Hagley Park, the hotel is within walking distance to Christchurch Botanic Gardens and the western business district, and just a five-minute drive into the city. The fully-refurbished hotel features 192 rooms, a bar and a brasserie offering al-fresco style dining. Other facilities include seven meeting rooms, a business center, an outdoor heated swimming pool and a fitness center. "Having DoubleTree by Hilton in Christchurch will signal to prospective visitors that Christchurch is a destination, not just a gateway to the rest of the South Island," said Caroline Blanchfield, Tourism Manager at Christchurch and Canterbury Tourism. "Christchurch's tourism numbers are constantly increasing, therefore it's an ideal time for a well-known, global brand like DoubleTree by Hilton to arrive in the city."

Park Hotel Group Ventures into South Korea

Park Hotel Group has signed a management contract with K2 Group to operate the Park Hotel Yeongdeungpo, Seoul. The 150-key hotel is scheduled to open in early 2017 and marks the company’s first hotel in South Korea. Situated in Seoul’s Yeongdeungpo district and close to the scenic Hangang River, the hotel is only 45 minutes away from the Incheon International Airport and offers easy access to the Yeouido financial hub located just 10 minutes away. Facilities at the hotel include an all-day dining restaurant, a gourmet coffee deli, a rooftop restaurant and bar, a gymnasium and function rooms. “The continued upswing in tourism infrastructure and activity in South Korea complements the Group’s plans to build its brand presence in the country and Park Hotel Yeongdeungpo, Seoul shall serve as a launchpad for further planned expansion in the country. The top feeder markets of South Korea also mirror our hotel destinations in Asia Pacific and this is hugely beneficial as we seek to develop synergies to drive interest and footfall to the hotel.”, commented Allen Law, Chief Executive Officer of Park Hotel Group.

Tourism, Hotel Investment & Networking Conference (THINC) Indonesia 2016 Successfully Concludes

Hosted by HVS, the 4th edition of THINC Indonesia, which took place on 31 August and 1 September at the Sofitel Bali Nusa Dua Beach Resort, concluded on a high note. Like each year, the two-day conference lived up to its reputation of being a one-of-a-kind hospitality event in Indonesia. The event presented two exciting days of networking opportunities, engaging panel discussions and thought-provoking discussions on the hotel and tourism industries in Indonesia and Southeast Asia. Co-Hosted by the Ministry of Tourism, Republic of Indonesia and the Indonesia Investment Coordinating Board (BKPM), the conference brought together 200 industry stakeholders, business leaders and key decision-makers from across 22 nations. The THINC Indonesia organizing committee is grateful to all sponsors, partners, speakers and delegates for their valued support, and for contributing towards yet another successful edition of the conference.

Absolute Share Price Performance, as on 8 September 2016

Closing Share Price as at 8 September 2016 2 September 2016 % Change
Australia Stock Exchange (ASX)
Event Hospitality and Entertainment Ltd 14.35 15.14 -5.2%
General Property Group 5.01 5.21 -3.8%
Mirvac Group 2.19 2.22 -1.4%
Mantra Group 3.08 3.00 2.7%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 38.00 40.50 -6.2%
Dusit Thani Public Co Ltd 10.00 10.50 -4.8%
The Erawan Group Public Co Ltd 4.54 4.92 -7.7%
Grande Asset Hotels and Property Public Co Ltd 0.78 0.86 -9.3%
Laguna Resorts & Hotel Public Co Ltd 24.10 24.80 -2.8%
Minor International Public Co Ltd 37.75 39.75 -5.0%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 13.74 13.83 -0.7%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 7.01 6.91 1.4%
Guangzhou Dong Fang Hotel Co Ltd 16.48 14.39 14.5%
China Lodging Group Ltd 45.26 45.14 0.3%
Home Inns & Hotels Management Inc 35.71 35.71 0.0%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 14.26 13.74 3.8%
Regal Hotels International Holdings Ltd 4.42 4.31 2.6%
Sino Hotels Holdings Ltd 2.58 2.58 0.0%
The Hong Kong & Shanghai Hotels Ltd 7.90 7.91 -0.1%
Shangri-La Asia Limited 8.67 8.55 1.4%
Dorsett Hospitality International 1.54 1.54 0.0%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 134.00 126.00 6.3%
EIH (Oberoi Hotels & Resorts) 112.00 108.70 3.0%
Hotel Leela Ventures 17.90 17.90 0.0%
Korea Exchange (KRW)
The Shilla 66800 68300 -2.2%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.405 0.400 1.3%
Ascendas Hospitality Trust 0.730 0.725 0.7%
Ascott Residence Trust 1.150 1.145 0.4%
Banyan Tree Holdings Limited 0.410 0.440 -6.8%
CDL Hospitality Trusts 1.385 1.380 0.4%
Far East Hospitality Trust 0.600 0.595 0.8%
Frasers Hospitality Trust 0.785 0.790 -0.6%
Hotel Grand Central Ltd 1.340 1.335 0.4%
Hotel Properties Ltd 3.390 3.390 0.0%
Mandarin Oriental International Ltd (US$) 1.335 1.330 0.4%
OUE Hospitality Trust 0.675 0.670 0.7%
Stamford Land Corporation Ltd 0.465 0.465 0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 181.00 180.50 0.3%
The Ambassador Hotel, Ltd 24.85 24.90 -0.2%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 86900 86800 0.1%
Imperial Hotel, Ltd 2102 2157 -2.5%

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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