HVS APAC Hospitality Newsletter Week Ending 25 August 2017 (August 25, 2017)

HVS Releases the Guide to Hotel Management Contracts | Includes 2017 Global Survey Results

By Manav Thadani and Juie S. Mobar
The HVS Guide to Hotel Management Contracts presents the results of an extensive review of hotel management agreements conducted across the Americas (USA, Canada and South America), Europe, the Middle East, Africa (EMEA), and the Asia Pacific (APAC) regions, in addition to offering an in-depth understanding of the key terms and clauses of such agreements. The global survey sample set comprises 475 hotel management contracts representing close to 120,000 rooms and 55 first-tier (branded) hotel management companies, in addition to several second-tier (third-party) management companies and few independent operators. What’s more, each regional sub-section is accompanied with a foreword by an HVS expert practicing in the area, and the sub-set results are supported by discussions and insights to provide the reader with useful and relevant information. You may order the full guide and survey report, or just a regional report; please select your preferred option prior to making the purchase.

AVANI Set for Maldives Debut in 2019

Thailand-based Minor Hotel Group has entered into a US$70 million joint venture partnership with Cyprea Group to develop the Avani Fares Maldives Resort. The resort will be located on the private 12.4-hectare Fares Island, in Baa Atoll, Maldives. Slated to open by Q4-2019, the 200-key resort with an all-round ocean view will provide a mix of fully-equipped guestrooms and villas. Avani Fares Maldives Resort will adopt a communal living concept with an open plan lobby that will blend reception, lounge, meeting spaces, an all-day dining restaurant and The Pantry, serving comfort food and deli snacks round the clock. Other facilities at the resort will include a specialty restaurant, AVANISPA, AVANI kids’ club and a large communal swimming pool with a pool bar. The resort will be accessible both via a 45-minutes sea plane ride from Maldives’ capital, Male, and a 30-minute speedboat ride from Baa Atoll’s domestic airport. 

China Records RMB2.17 Trillion in Domestic Tourism Expenditure, in H1-2017

According to the latest official data released by China National Tourism Administration, the number of China’s domestic tourists increased by 13.5 per cent to 2.537 billion in the first half of 2017, generating domestic tourism expenditure of RMB 2.17 trillion, up 15.8 per cent YoY. Of those, tourists from urban areas grew by 15.8 per cent to 1.757 billion, generating tourism expenditure of RMB1.71, up 16.1 per cent; while tourists from rural areas increased by 8.5 per cent to 780 million, generating tourism expenditure of RMB0.46 trillion, up 14.8 per cent. Number of inbound tourists was recorded at 69.5 million, posting a year-on-year increase of 2.4 per cent, in the same period. Inbound tourism expenditure totalled RMB60.1 billion, up 4.3 per cent YoY. Outbound tourists from China increased by 5.1 per cent to 62.03 million in the first half of 2017.

Singapore and Australia Sign Pact to Boost Tourism Cooperation

Singapore Tourism Board (STB) and Australia’s Department of Foreign Affairs and Trade have signed a memorandum of understanding (MOU) that aims to enhance tourism services in both Singapore and Australia. The first MOU between the two entities will help facilitate opportunities in investments and infrastructure enhancements for both countries, and intends to improve cooperation in the following core areas: tourism industry’s supply side development, research partnerships and data sharing, and sharing of tourism information and insights. Australia is Singapore’s 4th biggest source market, with a year-on-year growth of 5.7per cent in the first quarter of 2017. Singapore is also an important source market for Australia, being the 5th biggest source market overall; biggest in Southeast Asia; and the 2nd biggest in Asia after China. The MOU came into effect on the 21 August 2017 and will be valid for a period of five years. Thereafter, it may be renewed for similar future periods by written agreement from both sides.  

Jetstar to Introduce Direct Flights from Melbourne to Zhengzhou this December

Jetstar Airways, the low-cost wing of Australian airline Qantas, will launch a new international route in December this year, with its first ever direct flight from Australia to China, aiming to support the boom in Chinese tourist arrivals to Australia. Growing at 8per cent, China is currently the largest source market for Australia with over 674,000 visitors in 2017 year-to-date, having surpassed the 1 million visitors mark back in 2015. .Jetstar commenced operations in China eight years ago, and currently flies from seven Chinese airports with 68 flights a week across Asia to 20 destinations in China. The new direct flight, which will fly twice weekly between both destinations, will add an additional 70,000 seats each way annually and is expected to bring in an extra 35,000 Chinese tourists to the country. Over the past few years, several Chinese airlines have launched direct flights to Australia, including China Eastern Airlines, Air China, Hainan Airlines, China Southern Airlines, Xiamen Airlines, Beijing Capital Airlines, and Sichuan Airlines.

VITS Hotels Launches the VITS Devbhumi in Dwarka, India

VITS Hotels announced the opening of the Hotel VITS Devbhumi in Dwarka, Gujarat, earlier this week. Located along the Okha State Highway, the hotel features 58 rooms. On the food & beverage front, the VITS Devbhumi features two restaurants and approximately 5900 square feet of meeting and event space. Other facilities at the hotel include a spa, a fitness center and a game room. Dwarka is a small city located in the Devbhoomi Dwarka District of Gujarat and is an important Hindu pilgrimage destination, famous for its Dwarkadheesh temple.

Absolute Share Price Performance, as on 25 August 2017

Closing Share Price as at 25 August 2017 18 August 2017 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.17 2.08 4.3%
Event Hospitality and Entertainment Ltd 12.73 12.2 4.3%
General Property Group 4.91 4.98 -1.4%
Mirvac Group 2.26 2.3 -1.7%
Mantra Group 2.95 3.04 -3.0%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 40.25 39.25 2.5%
Dusit Thani Public Co Ltd 10.6 11.3 -6.2%
The Erawan Group Public Co Ltd 6 5.8 3.4%
Grande Asset Hotels and Property Public Co Ltd 0.93 0.93 0.0%
Laguna Resorts & Hotel Public Co Ltd 25.5 25.5 0.0%
Minor International Public Co Ltd 39 39 0.0%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 11.16 10.98 1.6%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 5.24 5.03 4.2%
Guangzhou Dong Fang Hotel Co Ltd 12.99 13.03 -0.3%
China Lodging Group Ltd 112.62 110.76 1.7%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 17.48 17.62 -0.8%
Regal Hotels International Holdings Ltd 5.89 5.60 5.2%
Sino Hotels Holdings Ltd 3.1 3.05 1.6%
The Hong Kong & Shanghai Hotels Ltd 12.98 13 -0.2%
Shangri-La Asia Limited 13.04 13.1 -0.5%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 111.9 125.35 -10.7%
EIH (Oberoi Hotels & Resorts) 132.95 131.25 1.3%
Hotel Leela Ventures 20.35 20.9 -2.6%
Korea Exchange (KRW)
The Shilla 63400 62200 1.9%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.49 0.495 -1.0%
Ascendas Hospitality Trust 0.835 0.835 0.0%
Ascott Residence Trust 1.19 1.185 0.4%
Banyan Tree Holdings Limited 0.575 0.575 0.0%
CDL Hospitality Trusts 1.605 1.62 -0.9%
Far East Hospitality Trust 0.655 0.655 0.0%
Frasers Hospitality Trust 0.735 0.735 0.0%
Hotel Grand Central Ltd 1.33 1.34 -0.7%
Hotel Properties Ltd 3.9 3.89 0.3%
Mandarin Oriental International Ltd (US$) 2 1.995 0.3%
OUE Hospitality Trust 0.755 0.75 0.7%
Stamford Land Corporation Ltd 0.495 0.495 0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 155 151.5 2.3%
The Ambassador Hotel, Ltd 22.45 22.4 0.2%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 77000 76400 0.8%
Imperial Hotel, Ltd 2150 2148 0.1%
Red Planet Japan Inc 27 28 -3.6%

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