HVS India Releases the ‘2016 Hotels in India: Trends & Opportunities’ Report

HVS India released the 2016 edition of the Hotels in India: Trends & Opportunities report last week. The report discusses the key hospitality trends as well as our outlook for the future, highlighting 13 major Indian markets. This year’s edition raises a toast to the first year of a much awaited up-cycle in the branded hotel space in India. As most hotel markets across the country achieved significant growth in overall operating performance over the previous fiscal, a particularly noteworthy trend is the increase in Average Daily Rate (ADR) after four consecutive years of decline. The report analyses the year gone by with the hope that India's hotel industry stakeholders will draw inspiration from their own recent performance and tread a path that continues to augment their Best Available Rate (BAR) offering, especially in light of the fact that occupancies are likely to further strengthen in year 2016/17.  
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RIU Hotels & Resorts Enters Asia with First Property in Sri-Lanka

Spanish hotel group, RIU Hotels & Resorts has entered the Asian market with its first property in Sri Lanka. The 500-room new build hotel is located along the beach in Ahungalla, in the Southeast of the country. The all-inclusive hotel features three large pools and a children’s pool, a jacuzzi, a gym and the Renova Spa wellness center. The hotel offers a multitude of dining options including an Asian restaurant, an Italian restaurant, a beachside al-fresco restaurant, two buffet restaurants, four bars and a night club. Luis Riu, CEO of the Spanish hotel group commented, “(Sri Lanka) has everything to be a great holiday destination. It has a wonderful landscape and beaches, rich culture, hospitable as well as all of the infrastructures needed; and it is a great complement to our portfolio, very attractive to our loyal clientele and to new customers.” The Spanish company is set to open three more hotels between 2018 and 2019, two in the Maldives and one in Dubai. 

Hard Rock Hotels Announces New Property in Malaysia’s Desaru Coast, Opening Fall 2017

Hard Rock International continues the expansion of its hotel brand throughout Asia Pacific with the planned launch of a new property in the southeastern region of Malaysia, in the state of Johor. Slated to open in fall 2017, the 365-room hotel will be part of Malaysia’s newest integrated destination resort, Desaru Coast. The Hard Rock Hotel Desaru Coast will be centrally located in Phase 1 of Desaru Coast, providing easy access to the Desaru Coast Adventure Water Park as well as the Retail Village, the resort’s waterfront shopping and social hub. Hotel guests will also have full access to the Desaru Coast Conference Center and two championship golf courses designed by renowned golf professionals, Ernie Els and Vijay Singh. Other hotel facilities include a pool with poolside bar and grill, an all-day dining restaurant and fast-casual eatery, two spas and a kids’ club. 

Thomas Cook and Fosun’s New Travel Venture to Aim At Affluent Chinese Travellers

Europe’s second-largest tour operator, Thomas Cook and Chinese conglomerate, Fosun International recently joined hands to set up a high-end Chinese travel agency, Thomas Cook China, in order to capture a higher share of China's fast-expanding holiday market. The agency will sell overseas holidays to the wealthiest 20 percent of Chinese travelers and guide them beyond Europe’s obvious destinations, aiming to make China a substantial part of Thomas Cook’s business, said Peter Fankhauser, Chief Executive Officer of Thomas Cook. The companies are hopeful that China’s outbound tourism market, the largest in the world, can help drive growth in Europe, where Brexit and recent terror attacks have negatively affected travel. Furthermore, Fosun expects the number of Chinese outbound travellers to grow by as much as 20 percent annually. Thomas Cook owns 49 percent of the venture, which forms part of a three-pronged tie-up with Fosun that was unveiled last year, when the Chinese giant bought a 5 percent stake in the British company, that has since been increased to 8.2 percent. The two companies are also collaborating on a €500m fund to invest in hotels in Europe and are examining closer ties between Thomas Cook and French resorts business Club Mediterranee, which Fosun bought last year.  

Oaks Hotels Opens Its Seventh Property in Melbourne

Oaks Hotels & Resorts, a division of Minor Hotels, strengthened its presence in Victoria with the recent opening of its seventh property in Melbourne. Located on City Road, in the vibrant dining, entertainment and arts precinct of Southbank, the 87-key Oaks Southbank rises over 37 floors, providing its guests panoramic views of the city. The property offers a selection of one-bedroom and two-bedroom apartments with well-equipped kitchens, living and dining areas, and private balconies for each unit. Chief Operations Officer of Oaks Hotels & Resorts, Mike Anderson, commented, “Now with seven properties spanning the CBD, Southbank and South Yarra, Oaks Hotels & Resorts are pleased to provide guests with even more choice when it comes to contemporary, self-contained accommodation in key locations across Melbourne.”

Zenith to Add Two More Properties in Malaysia

Zenith Hotels & Resorts is expanding its portfolio with two more properties in Malaysia, to be launched in the next 18 months. The Grand Zenith Putrajaya is scheduled to open in the second quarter of 2017. Strategically located in the heart of Putrajaya, the 244-key property will mainly target the corporate and business events segments from both domestic and regional markets. The hotel features a spacious ballroom that can accommodate up to 800 people, suitable for hosting large events. With 177 rooms and 304 serviced apartments, the second property – Zenith Cameron Highlands will open its doors in the first quarter of 2018, and will primarily cater to the leisure market as well as long-stay guests from the Middle-East.
 

Eastin Hotels & Residences Announces the Launch of the Eastin Residences Vadodara

Eastin Hotels & Residences launched the Eastin Residences Vadodara in Vadodara, Gujarat. Located 7 kilometers southwest of Vadodara Airport and 1 kilometer west of Vadodara Railway Station, the hotel features 44 apartments, each equipped with a kitchenette. The property also features an all-day dining restaurant and a gym. The Eastin Residences Vadodara is the first hotel built to cater primarily to the Extended-Stay segment in the city. Vadodara, previously known as Baroda, is regarded as the cultural capital and third largest city in the Indian state of Gujarat.
 

Thailand’s Suvarnabhumi International Airport’s Expansion Earmarked for February 2017

The second phase expansion of Suvarnabhumi International Airport was formally launched last week, after the cabinet approved the plan with a total budget of 62.5 billion baht. With construction scheduled to commence in February 2017, the expansion plan includes a new concourse and facilities located to the south, including a tunnel to link the new structure with the existing terminal. Once completed in 2019, the airport will be able to handle 60 million passengers annually, an increase from the current capacity of 45 million passengers a year. Additionally, with the recent opening of the new four-storey passenger terminal at Phuket International Airport, its capacity has also increased from 6.5 million to 12.5 million passengers annually. Year-to-date international visitor arrivals to Thailand was at 16.6 million in June 2016, registering a growth of 12 percent over the same period last year. 
 

HVS to Feature as the Hospitality Conclave Anchor at BITB 2016

World' leading travel trade show, ITB Berlin has come to India, powering the launch edition of the Bharat International Tourism Bazaar (BITB), to be held in New Delhi from 4-6 October, 2016. BITB is a B2B event with sharp focus on tourism, senior leadership and meaningful networking. Among the many innovations it has worked upon, has been a series of Power Conclaves anchored by leading organizations in different verticals that are critical to Indian travel and tourism industry. HVS will be anchoring the hospitality vertical, bringing together some of the best minds in the business to look at current business trends, with a specific focus on inbound tourism. Manav Thadani, Chairman of HVS Asia Pacific will commence the hospitality conclave with his opening address, followed by a one-one-interview with Kapil Chopra, President of The Oberoi Group. Manav will also be moderating a power packed panel, titled ‘Business Sentiments in Hospitality’, comprising prominent industry bigwigs. Additionally, Achin Khanna, Managing Director of HVS South Asia’s Consulting & Valuation business, will lead a panel of distinguished industry leaders to discuss the pertinent topic of ‘Inbound Tourism and Hospitality’. 
 

Absolute Share Price Performance, as on 22 September 2016