Malaysia Upcoming Hotel Tax Rate Undergoes Revision

In response to the backlash from the industry, the proposed tourism tax rate was revised prior to its implementation. According to the Minister of Tourism and Culture, Nazri Aziz, the revised tourism tax will see foreigners staying at paid accommodations be charged a flat rate of RM10 per night, while Malaysians will be exempted from it completely. When the tourism tax was first announced, a rate between RM2 and RM20 per night, depending on the type of accommodation, was proposed, applicable to both the local and foreign population. However, strong protests, especially from the state of Sarawak, subsequently led to the revision of the tourism tax. The ministry estimates tax proceeds of RM210,956,797 a year based on an average occupancy rate of 60 percent of currently registered rooms, and the proceeds will be used to fund state-level tourism promotion activities. While initially thought to be implemented from 1st August, Mr. Nazri has reportedly said that the date of implementation is now contingent on the prime minister’s decision.

Post-Merger Scoot to Introduce Five New Routes

Following its merger with Tigerair Singapore, Scoot, one of Singapore’s low-cost carriers, has announced the addition of five new routes that are set to commence by 2018. Of these, two will be long haul destinations – Honolulu, Scoot’s first US destination, and Harbin – and the other three will be short haul destinations – Kuching and Kuantan in Malaysia, and Palembang in Indonesia. As a result of both the merger and the additional routes, Scoot will serve 65 destinations across 18 countries. Moreover, all Tigerair flights will now operate under the Scoot brand and under one operating license, however, the former will retain its TR flight designator code. Post-merger, Scoot will launch its inaugural A320 aircraft, previously operated by Tigerair, with the Scoot livery named “Conscious Coupling” that was specially designed to commemorate the takeover. Scoot targets to double its existing fleet size of 37 planes within the next five years.

Ascott Acquires 80 per cent Stake in Synergy Global Housing for US$33.7 million

CapitaLand’s wholly owned serviced residence, The Ascott Ltd, has acquired 80 per cent stake in American company Synergy Global Housing for US$ 33.7 million, following the recent acquisition of Quest Apartment Hotels in Australia. The deal will expand Ascott’s portfolio from over 1,000 units to about 3,000 units in the US. Synergy Global Housing holds a strong footprint in the US, where it leases apartments from partners and property owners to rent to corporate clients. The company also has Global Solution Centers located in Dublin, Ireland, Hyderabad in India, and Singapore. According to Ascott’s CEO Lee Chee Koon, “The US is Ascott’s third largest source market for guests. The acquisition will give Ascott direct access to Synergy’s corporate customers in the US that include world-renowned technology brands in the Bay Area and beyond.” Prior to the foray into the corporate housing market in the US, Ascott Residence Trust acquired four hotel properties situated in New York’s prime area.

First Pentahotel to Launch in Bangkok in 2020

Pentahotels, a design-orientated and lifestyle brand will launch its first property in Thailand in 2020. The company has signed a management agreement with The Nest Property Company Ltd., a subsidiary of Thailand’s PM Group, marking the official expansion of Pentahotels in Southeast Asia, with plans to open a second Hong Kong property this year. Pentahotel Bangkok, Ploenchit will comprise 157 guestrooms and facilities including a gym and swimming pool. Located in Lumpini district, the new property will be tailored to Pentahotels’ design standards, featuring many of the brand’s signature touches such as the Pentalounge, a social reception and bar area combining function and entertainment.

Sofitel Makes its Debut in Foshan, China

Sofitel Hotels & Resorts recently announced the opening of its first hotel product in Foshan, China. Representing the 23rd property in Greater China, Sofitel Foshan Hotel is located in Lecong, Shunde District, Foshan City and connected to Louvre International Furniture Exhibition Center. The 236-metre hotel is the highest property with 62 floors in Foshan, overlooking the city. Sofitel Foshan Hotel offers 325 superbly decorated and spacious rooms and suites with four different styles: Modern, Post Modern, Chinese and French. Food and beverage outlets at the hotel includes Kwee Zeen (an all-day dining French restaurant), Allegria (an Italian restaurant), Noble Bar, Le Bar and Sky Bar. Sofitel Foshan Hotel features 3,000-square-metre meeting space, comprising a grand ballroom, six meeting rooms and an outdoor terrace, to cater for all kinds of weddings, meetings and events. In addition, the hotel is equipped with a Spa, an indoor swimming pool and a 24-hour fitness centre. It is only 20 minutes’ drive from Foshan downtown and approximately 60 minutes’ drive from Guangzhou Baiyun International Airport.

Absolute Share Price Performance, as on 28 July 2017