HVS APAC Hospitality Newsletter Week Ending 30 June 2017 (June 30, 2017)

CDL Hospitality Trust Acquires Pullman Hotel Munich in Germany

Singapore-based CDL Hospitality Trust (CDLHT) marks its first foray into continental Europe with the acquisition of Munich’s Pullman Hotel, along with its office and retail components for €98.9 million (S$154 million). Situated close to the major business district, the four-star hotel features 174 rooms and has easy access to the Allianz Arena, the English Garden, Olympic Stadium, and the fair grounds. The deal is accretive with a net property income yield of 5.6 per cent for FY2016 and will be fully funded by debt financing. According to Chief Executive Vincent Yeo, the move will strengthen the trust’s balance sheet and enhance financial flexibility, allowing it to pursue future growth opportunities through acquisitions and asset enhancements initiatives. CDLHT plans to acquire two additional European properties in 2017 once the existing deal is completed. Meanwhile, CDLHT also disclosed of raising S$255.4 million by launching a fully underwritten and renounceable rights issue as it realigns its capital structure through partially repaying its existing borrowings. 

Mandarin Oriental to Debut in Australia

Luxury hotel operator, Mandarin Oriental Hotel Group plans to open its first Australian hotel in Melbourne in 2023. The hotel will be situated in a 50-storey mixed-use tower on Collin Street, which is planned to be part of the Central Business District regeneration development. The property will feature 196 guestrooms and suites, in addition to 148 Mandarin-branded residences on the tower’s upper floors, which aim to be some of the most luxurious private apartments in the city. Additionally, the hotel will offer an all-day dining restaurant, a roof terrace bar overlooking the city landscape, an executive club lounge, and a range of meeting spaces. The entry of new luxury hotels and residences into Melbourne, including the Ritz-Carlton Residences and the recently announced Shangri-la Hotel, partly signals the rising demand for luxury accommodations in the country.

Mövenpick to Launch Its First Project in Danang, Vietnam

Mövenpick Hotels & Resorts has announced its first project in Danang, slated to open in Q3-2019. With 150 hotel rooms and 354 branded residences, the Mövenpick Hotel & Residences Danang Vietnam will be situated on the banks of the Han River, in the commercial heart of the city, six kilometers from Danang International Airport. The hotel will provide a range of amenities such as a swimming pool, a fitness center, a spa and a kids’ club, and state-of-the-art meeting rooms including a ballroom. Food & beverage outlets at the hotel will include a signature rooftop bar and restaurant, a lobby lounge, a Café and wine bar, a pool bar, and a specialty restaurant. In Vietnam, the Swiss hotel management company already operates the Mövenpick Hotel Hanoi in Vietnam. Other properties in the development stage include the Mövenpick Resort Cam Ranh Bay (2018), Mövenpick Hotel Quảng Bình (2019), Mövenpick Resort Phu Quoc (2019) and Mövenpick Hotel Quy Nhon (2020).  

Thailand’s U City Acquires 24 Hotels in Europe

U City Public Company Limited, a property unit of Thailand’s BTS Group Holdings, has recently acquired 24 European hotels as part of a THB12.3 billion-deal. Through its Austrian subsidiary, Vienna House Capital GmbH (VH Capital), U City assumes full ownership of Vienna International Hotel Management AG with a portfolio of upscale leisure properties as well as business hotels spread across Europe in locations such as Germany, Romania and Poland. In addition to the hotel assets, the deal also includes a management platform that currently operates these 24 hotels, as well as an additional 12 third-party hotels. U City expects VH Capital’s earnings to grow on an average of 20 per cent per annum, over the next four years. The transaction is being financed through a combination of new loans from financial institutions as well as existing cash. 

Royal Orchid Hotels Launches the Regenta LP Vilas in Dehradun

Last week, Royal Orchid Hotels announced the opening of the Regenta LP Vilas in Dehradun, in the Indian state of Uttarakhand. Located approximately 39 kilometers northwest of the city’s Jolly Grand Airport, the hotel features 74 rooms and suites. On the food and beverage front, the hotel features a multi-cuisine restaurant, a coffee lounge, a bar and seven meeting rooms. Other facilities at the hotel include a gym, a spa, a salon and a gaming zone. 

Mantra Group Introduces New Masterbrand – Mantra Hotels

Australia’s leading hotel and resort operator, Mantra Group, has integrated all 128 properties across Australia, New Zealand, Bali and Hawaii, consolidating its multi-branded portfolio into a new single consumer brand, known as Mantra Hotels. The new Mantra Hotels masterbrand represents the Group's three brands – Peppers, Mantra and BreakFree. All Mantra Group properties are now featured on one website, offering an overarching consumer brand website for the entire group portfolio for the first time. In additional to a new ‘Mantra Hotels’ logo, which will be used across all consumer communications channels, the group has launched a new and renewed loyalty program called Mantra+.

China Is Leading the Mobile Booking Market

According to a report by Phocuswright, China, which is now the second largest travel market in the world, is also set to become the most highly penetrated online market in the APAC region this year. Most online bookings worldwide are still made on desktop. In both America and the UK, the rate of mobile bookings is under 30 per cent; however, over half of all travel bookings in China are made on mobile, and this trend is going to continue in 2017. Mobile growth will be driven by demographic changes and technological improvements. 58 per cent of people aged between 18 and 24 agree that searching or booking flight tickets on mobile is relatively easy, while only 17 per cent of those aged above 45 agree with this. Those online travel agencies which differentiate themselves on mobile could win big, and this should be of great importance to companies operating in rapidly emerging mobile markets such as such as India, Indonesia and Brazil.

Absolute Share Price Performance, as on 30 June 2017

Closing Share Price as at 30 Jun 2017 23 Jun 2017 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.14 2.18 -1.8%
Event Hospitality and Entertainment Ltd 13.27 13.07 1.5%
General Property Group 4.8 5.12 -6.3%
Mirvac Group 2.15 2.27 -5.3%
Mantra Group 3.05 3.06 -0.3%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 38.5 38.5 0.0%
Dusit Thani Public Co Ltd 9.75 9.6 1.6%
The Erawan Group Public Co Ltd 5.15 5.25 -1.9%
Grande Asset Hotels and Property Public Co Ltd 0.9 0.92 -2.2%
Laguna Resorts & Hotel Public Co Ltd 26.5 26.5 0.0%
Minor International Public Co Ltd 40.25 40.75 -1.2%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 11.67 11.29 3.4%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 5.1 5.03 1.4%
Guangzhou Dong Fang Hotel Co Ltd 13.48 12.34 9.2%
China Lodging Group Ltd 80.96 82.7 -2.1%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 18.08 18.16 -0.4%
Regal Hotels International Holdings Ltd 6.85 7.00 -2.1%
Sino Hotels Holdings Ltd 3 2.9 3.4%
The Hong Kong & Shanghai Hotels Ltd 14.1 11.02 27.9%
Shangri-La Asia Limited 13.24 13.4 -1.2%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 128.7 130.25 -1.2%
EIH (Oberoi Hotels & Resorts) 138.4 137.55 0.6%
Hotel Leela Ventures 21.3 21.6 -1.4%
Korea Exchange (KRW)
The Shilla 57500 55500 3.6%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.52 0.52 0.0%
Ascendas Hospitality Trust 0.825 0.82 0.6%
Ascott Residence Trust 1.155 1.12 3.1%
Banyan Tree Holdings Limited 0.505 0.48 5.2%
CDL Hospitality Trusts 1.59 1.68 -5.4%
Far East Hospitality Trust 0.67 0.68 -1.5%
Frasers Hospitality Trust 0.725 0.73 -0.7%
Hotel Grand Central Ltd 1.34 1.38 -2.9%
Hotel Properties Ltd 3.93 3.93 0.0%
Mandarin Oriental International Ltd (US$) 1.995 2 -0.2%
OUE Hospitality Trust 0.75 0.73 2.7%
Stamford Land Corporation Ltd 0.510 0.520 -1.9%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 165.5 164 0.9%
The Ambassador Hotel, Ltd 23.5 23.4 0.4%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 79800 80600 -1.0%
Imperial Hotel, Ltd 2254 2199 2.5%
Red Planet Japan Inc 30 28 7.1%

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