Louvre Hotels Group Acquires Majority Stake in Sarovar Hotels & Resorts

French hospitality major, Louvre Hotels Group announced its acquisition of a majority stake in Indian hospitality chain Sarovar Hotels & Resorts, for an undisclosed amount. Sarovar currently operates 75 hotels in the premium, mid-market and budget categories in India and Africa, in addition to ten hotels under the Radisson, Park Plaza and Park Inn brands in India, as well as food & beverage brands such as the Geoffrey’s Pub and Oriental Blossom. Louvre Hotels Group presently manages 22 hotels under its Golden Tulip brand in India, and this deal will position them as one of the largest hotel operators in the country. A subsidiary of Shanghai-based Jin Jiang International Holdings, Louvre Hotels Group considers the deal more of a joint venture than an acquisition, with the existing management of Sarovar Hotels remaining intact. While Sarovar will continue to expand its presence in India and Africa, the deal is expected to lead to synergies in worldwide distribution, loyalty programs, sales and marketing initiatives, and procurement services, between the newly merged entities. HVS India advised Louvre Hotels Group during the acquisition.

Four New Hotels Added to Megaworld’s Portfolio

With the opening of four new hotels in the Philippines this year, property developer Megaworld Corp, owned by tycoon Andrew Tan, will see almost 80% growth in its hotel portfolio. Comprising a total of 1,662 rooms, the four properties will be located in Iloilo, Boracay and Metro Manila. One of the four hotels will be managed by Marriott International while the remaining will be under the group’s own brands. The Courtyard by Marriott, Iloilo Business Park and the Savoy Hotel Boracay in Boracay Newcoast are expected to open in the first half of this year. The remaining two properties located in Manila, the Savoy Newport Hotel and Hotel Lucky Chinatown in Binondo, are expected to open by the second half of 2017.

Hotel Openings in India This Week

Marriott International announced the opening of the Fairfield by Marriott in Belagavi, Karnataka – the fourth ‘Fairfield by Marriott’ hotel in India. The property features 114 guest rooms, an all-day dining restaurant, approximately 1,000 square meters of meeting space, a swimming pool and a fitness center. Belagavi, formerly known as Belgaum, is an emerging commercial hub in Southwest India, and is one of the cities selected by the Government of India under its ‘smart cities’ mission.

Sarovar Hotels & Resorts announced the opening of The Muse Sarovar Portico, Kapashera in Delhi-NCR. The hotel, located approximately 7.4 kilometers southwest of New Delhi’s Indira Gandhi International Airport, features 73 rooms, three ballrooms with a combined area of approximately 6,900 square feet, an all-day dining restaurant and a lounge.

Bintan to Welcome More Chinese Charter Groups

Bintan Lagoon Resort (BLR) recently became the beneficiary of a new joint venture between Indonesian charter specialist, Bintan Cendrawasih Abadi and Chinese travel conglomerate, Wanda Tourism, in a partnership that aims to position Bintan as an alternative to Bali for travelers seeking a resort holiday.  BLR’s diversified food & beverage offerings and extensive golf and recreation facilities makes it an ideal choice for Chinese charter groups, comprising families, couples, golfers and incentive travelers. Starting this month, BLR will house charter groups from China, amounting to approximately 1,000 nights each month. Citilink, Garuda Indonesia’s budget arm, will operate chartered flights twice daily from seven Chinese cities – namely, Wuhan, Fuzhou, Xiamen, Chenzhou, Guiyang, Nanjing and Zhengzhou, to Bintan.

Five-Star Hotels in China Outperform All Other Segments in Occupancy

In the third quarter of 2016, a total of 10,488 star-rated hotels were audited by provincial tourism administrations. One-star hotels in 11 provinces had higher average occupancy as compared to their national average of 44.56%, of which 3 hotels in Hunan, 4 in Tibet, 3 in Xinjiang and 2 in Liaoning achieved an average occupancy of above 70%. Two-star hotels in 14 provinces clocked higher average occupancy than the national average of 54.08%, of which 12 hotels in Tibet and 24 in Shanghai achieved an average occupancy of above 70%. In the three-star segment, hotels in 13 provinces registered higher average occupancy than the national average of 56.37%, of which 19 hotels in Tibet achieved an average occupancy of above 70%. Four-star hotels in 16 provinces achieved higher average occupancy in comparison to the national average of 60.33%, of which 123 hotels in Beijing and 66 in Shanghai achieved an average occupancy of above 70%. At 62.24%, the five-star hotel segment recorded the highest national average occupancy. Hotels in 16 provinces beat the national average, of which 6 hotels in Guizhou, 14 in Xinjiang, 3 in Gansu, 60 in Beijing, 67 in Shanghai, 9 in Inner Mongolia and 6 in Heilongjiang achieved an average occupancy of above 70%.

Domestic Vs International Brands: Is 'Glocalizing' Important?

Global hotel chains must design strategies to create strong individual brand images that are unique and recognizable worldwide. Consequently, each hotel must be in tune with the strategy of the parent company, resulting in a high degree of standardization. How important is it then for international brands to differentiate their products and services, in order to adapt themselves to local demand? Are global hotel chains successful in combining their corporate branding strategies with the personality and culture of each destination; or are domestic, home-grown brands more successful in catering to these cultural nuances? Hear an eminent panel of industry experts at THINC Sri Lanka 2017 engage in a stimulating debate on the significance of ‘glocalization’ for hospitality businesses. Led by Dilip Puri, Guidance Lead - South Asia for Marriott International, the session will comprise representatives from prominent global and domestic hotel groups, including Bruno Huber, VP Operations - Asia, Mövenpick Hotels & Resorts; Dhruva Rathore, VP Development - Indian Subcontinent, Hyatt Hotels; Dmitri Jayasuriya, Founder & MD, Cantaloupe Hotels; Dr. Rohan Fernando, Director and Head of Business Development & Plantations, Aitken Spence, and Ruan Samarasinghe, MD, Jetwing Hotels.
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Absolute Share Price Performance, as on 12 Jan 2017