HVS Asia Pacific Hospitality Newsletter - Week Ending 31 March 2017 (March 31, 2017)

Flagship Park Hyatt Set for Indonesia

PT MNC Land Tbk and Hyatt Hotels Corporation are set to launch the flagship Park Hyatt hotel in Indonesia. Situated in central Jakarta at MNC Center, Kebon Sirih, the hotel will embody Jakarta’s multi-layered and highly diversified culture, which will include modern design elements. Occupying the highest 20 floors of the 37-floor mixed-use development, the Park Hyatt hotel will provide world-class dining and entertainment options through its five premium food and beverage outlets. Guests can also expect a highly personalised and fully-engaged service, complemented with a strong sense of place through the use of indigenous techniques and materials with a contemporary touch. The luxury hotel is expected to commence operations in the first half of 2018, and will represent Hyatt Corporation’s latest addition to its portfolio of four hotels in Indonesia: Grand Hyatt Jakarta, Grand Hyatt Bali, Hyatt Regency Yogyakarta and Hyatt Regency Bali.

AirAsia to Connect Langkawi to Shenzhen

AirAsia schedules to launch Langkawi-Shenzhen direct flights on 16 July 2017, after successfully connecting Langkawi to Singapore, and Guangzhou directly. The new flight will be operated three times per week on Tuesday, Thursday and Saturday. AirAsia has announced Langkawi as the international hub during the Langkawi International Maritime and Aerospace Exhibition (LIMA) in 2015, and currently operates five routes from Langkawi with 106 weekly flights to two international destinations (Singapore and Guangzhou) and three domestic flights (Kuala Lumpur, Penang and Johor Bahru). Since the flights established, the visibility of Langkawi has enhanced, resulting in the number of passengers entering Langkawi via air growing by 30 per cent year-on-year in 2015 and 2016.

Thai Airways Inaugurates Direct Flight between Beijing and Phuket

Thai Airways International (THAI) launches Beijing-Phuket direct flight four times per week operating a 264-seat Dreamliner B787, with the flight time of five hours and 35 minutes. With the route established, Tourism Authority of Thailand (TAT) will be able to promote Phuket as a long weekend destination for travelers from Beijing, which can substantially boost the arrivals to Phuket. To attract more Chinese visitors, TAT and THAI co-organised a three-day family trip to Phuket for travel agents and the media from China. While presenting the best of Phuket’s natural and cultural attractions and its luxurious resort hotels, the trip also showcased some of the island’s signature dishes. In 2017, TAT envisions Thailand to attract nine million Chinese visitors and generate 570 billion baht (US $16.5 billion) for the Thai tourism industry.

Government to Aid Hotel Financing in Japan Amid Tourism Boom

The government of Japan recently announced that a revised rule will allow for the Organization for Promoting Urban Development to provide financial assistance of up to half of the construction cost of tourist accommodation developments, with a minimum total floor space of 2,000 square meters, in areas designated as urban development zone. With key cities such as Tokyo and Osaka barely coping to meet demand during peak periods having annual occupancy rates exceeding 80 percent, the move signifies the government’s intent to boost the accommodation supply in the country. This is in line with the aim of attracting 40 million foreign visitors in 2020, the year of Olympic and Paralympic Games, up from the record 24.04 million in 2016. Developers are required to repay the money within 20 years from completion, with stipulations for provision of green areas and public spaces. Overseen by the Ministry of Land, Infrastructure, Transport and Tourism, the governing body was only allowed to provide financial assistance for the construction of public facilities, including schools, libraries, hospitals, and nursing homes, in areas outside of Tokyo, Osaka and Nagoya in the past.

Dusit International Debuts into Japan with Joint Venture

Dusit Colours Co., Ltd., a joint venture (JV) between global hospitality company Dusit International and Colours International Co., Ltd., represents the Thailand-based company’s debut into Japan. Colours International is the operator of the E-Hotel chain in Japan. The ownership will be split between Dusit International and Colours International with 49 per cent and 51 per cent, respectively. Aiming to develop and operate Dusit-branded hotels as well as hospitality education, the JV will look to establish a unique franchise model that will represent a fusion between Thai and Japanese hospitality cultures. Dusit Colours will actively seek for opportunities in key Japanese cities such as Kyoto for potential sites. Other than the luxury Dusit Thani brand, there could be opportunities for other Dusit hotel brands to enter the Japanese market, including dusitD2, DusitPrincess, and Dusit Devarana. Japan’s visitor numbers increased by an average of 33% per annum between 2011 to 2015, with the government setting a target of 40 million in 2020, up from the current record of 24.04 million in 2016.

Absolute Share Price Performance, as on 31 Mar 2017


Closing Share Price as at 31 Mar 2017 24 Mar 2017 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.12 2.1 1.0%
Event Hospitality and Entertainment Ltd 12.92 12.36 4.5%
General Property Group 5.15 5.06 1.8%
Mirvac Group 2.19 2.18 0.5%
Mantra Group 2.93 2.64 11.0%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 35.5 35 1.4%
Dusit Thani Public Co Ltd 9.3 8.8 5.7%
The Erawan Group Public Co Ltd 4.64 4.5 3.1%
Grande Asset Hotels and Property Public Co Ltd 0.86 0.86 0%
Laguna Resorts & Hotel Public Co Ltd 28 27.25 2.8%
Minor International Public Co Ltd 36.75 36 2.1%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 14.5 15.44 -6.1%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 6.52 7.03 -7.3%
Guangzhou Dong Fang Hotel Co Ltd 15.22 14.99 1.5%
China Lodging Group Ltd 62.45 62.69 -0.4%
Home Inns & Hotels Management Inc 35.71 35.71 0.0%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 16.7 16.58 0.7%
Regal Hotels International Holdings Ltd 4.32 4.28 0.9%
Sino Hotels Holdings Ltd 2.86 2.86 0%
The Hong Kong & Shanghai Hotels Ltd 9.14 9.08 0.7%
Shangri-La Asia Limited 11.32 10.38 9.1%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 125.8 124 1.5%
EIH (Oberoi Hotels & Resorts) 120.55 111 8.6%
Hotel Leela Ventures 16.1 16.1 0%
Korea Exchange (KRW)
The Shilla 45450 45650 -0.4%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.535 0.52 2.9%
Ascendas Hospitality Trust 0.78 0.755 3.3%
Ascott Residence Trust 1.09 1.07 1.9%
Banyan Tree Holdings Limited 0.48 0.47 2.1%
CDL Hospitality Trusts 1.42 1.395 1.8%
Far East Hospitality Trust 0.605 0.59 2.5%
Frasers Hospitality Trust 0.71 0.685 3.6%
Hotel Grand Central Ltd 1.42 1.42 0%
Hotel Properties Ltd 3.97 3.97 0%
Mandarin Oriental International Ltd (US$) 1.315 1.26 4.4%
OUE Hospitality Trust 0.69 0.685 0.7%
Stamford Land Corporation Ltd 0.54 0.52 3.8%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 157 159 -1.3%
The Ambassador Hotel, Ltd 23.55 23.45 0.4%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 77400 77500 -0.1%
Imperial Hotel, Ltd 2090 2100 -0.5%
Red Planet Japan Inc 28 30 -6.7%

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