HVS APAC Hospitality Newsletter Week Ending 08 September 2017 (September 8, 2017)

CapitaLand Expands in Jakarta with $54.9 million Partnership

CapitaLand and Qatar Investment Authority have entered into a partnership agreement for the S$74.3 million ($54.9 million) acquisition of a 192-key serviced residence located in Indonesia’s capital city, Jakarta. Primed to be named Ascott Sudirman Jakarta, the deal represents CapitaLand’s second joint-project in Jakarta after their S$220 million integrated development, The Stature Jakarta, that is slated to be completed by 2020. Both developments bring CapitaLand’s total investment in Jakarta to above S$300 million. Ascott Sudirman Jakarta, to be developed by one of Indonesia’s largest property firms, Ciputra Development Group, is Ascott’s sixth serviced residence within Jakarta’s Golden Triangle. The serviced residence has been acquired on a turnkey basis, with an expected opening in 2018. Ascott has added Citadines Canggu Bali, Ascott Surdirman Jakarta, and Somerset Sudirman Jakarta into their Indonesia portfolio this year, bringing total units to near 600, further strengthening their position as the market leader for serviced residences.

Australian Tourism Exports Exceed A$40 billion a Year

Tourism Research Australia’s International Visitors Survey, which released on 6 September, shows that Australia’s tourism industry is booming. A total of 7.8 million foreign travellers, an 8.7% increase from year ending June 2016, flocked to Australia in the last twelve months. Tourists expenditure touched a total of A$40.6 billion, a 6.5% growth in international visitor spending. While New Zealand remains the number one source market for Australia with 1.22 million visitors, Chinese visitors have swelled to 1.16 million, a 9.5% increase from the year before, spending a total of A$9.8 billion and accounting for nearly a quarter of total tourism exports. US travellers are also fuelling the tourist spending boom in Australia, with the highest average expenditure per night at A$257; a record 706,000 visitors from the country spent a total of A$3.8 billion. Rod Battye of Tourism Research Australia commented that the trend is expected to continue, with visitors from China tipped to hit 4 million in the next decade, while US visitors could climb up to 1.3 million.

Singapore-based Fragrance Group Adds Two More Hotels to its Portfolio in the United Kingdom

Singapore-listed Fragrance Group has been active in the United Kingdom (UK) regional hotels market. In addition to last week’s acquisition of The Townhouse Hotel in Manchester for £12.5 million, Fragrance Group has also acquired the 300-year old 115-room Crown Hotel in North Yorkshire for £7.2 million and the 141-room Lyndene Hotel for £5.25 million. The three hotels will be operated by Bespoke Hotels and will bring the Fragrance Group’s UK hotel portfolio to five. The portfolio includes its February acquisition of the 180-room Imperial Hotel in Blackpool for £12.8 million, managed by Redefine BDL, and a July acquisition of the 141-room Palace Hotel in Torquay for over £10 million. The group has meanwhile incorporated wholly-owned subsidiaries in the UK as investment holding companies for its acquired properties, with a paid-up capital of £1 million each.

Lanson Place Makes its Debut in Chengdu, China

Lanson Place Hospitality Management Limited recently announced the opening of its first property in Chengdu, China. Strategically located in the heart of Chengdu’s CBD, Tianfu Square Serviced Suites by Lanson Place provides immediate ingress to the city’s bustling business centre, just a few minutes’ walk away from Metro Line 1 and Line 4. Guests can easily find many retail, entertainment and cultural components in the Tianfu Square, including Sichuan Science and Technology Museum, Chengdu Museum and Sichuan Provincial Library. It also offers convenient access to Chengdu's top fashion, shopping and fine dining hotspots, including HD Centre and Chunxi Road. In addition to 162 spacious suites with one- to three-bedroom options, the property features full stylish amenities, such as  complimentary WiFi, satellite and wired TV. Other facilities at the property include a 24-hour fitness centre, a special club for in-house guests, an indoor swimming pool, a children’s playground and a beautiful sky garden. Besides, it offers a full range of guest services, including concierge service, housekeeping, laundry, 24-hour CCTV, food delivery and babysitting.

Hyatt Hotels Opens the Hyatt Regency Lucknow in Lucknow, Uttar Pradesh, India

Hyatt Hotels announced the opening of the Hyatt Regency Lucknow in Lucknow, Uttar Pradesh, earlier this week. Located in Vibhuti Khand, Gomti Nagar, approximately 25 km northeast of Lucknow’s Chaudhary Charan Singh International Airport, the hotel features 206 rooms, with base category rooms measuring 30 m2. On the food & beverage front, the Hyatt Regency Lucknow features an all-day dining restaurant, a specialty restaurant, a bar, a delicatessen and 10,300 ft2 of indoor meeting and event space. Other facilities at the hotel include a swimming pool, a fitness centre and a spa. Lucknow is the capital and largest city of Uttar Pradesh and is an important business destination.

Absolute Share Price Performance, as on 08 September 2017

Closing Share Price as at 08 September 2017 01 September 2017 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.12 2.16 -1.9%
Event Hospitality and Entertainment Ltd 12.28 12.3 -0.2%
General Property Group 5.05 4.98 1.4%
Mirvac Group 2.35 2.31 1.7%
Mantra Group 2.99 2.88 3.8%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 40.5 41 -1.2%
Dusit Thani Public Co Ltd 9.9 10.1 -2.0%
The Erawan Group Public Co Ltd 5.8 6.15 -5.7%
Grande Asset Hotels and Property Public Co Ltd 0.93 0.93 0.0%
Laguna Resorts & Hotel Public Co Ltd 26.5 26.25 1.0%
Minor International Public Co Ltd 39.5 40 -1.3%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 11.85 11.55 2.6%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 5 5.02 -0.4%
Guangzhou Dong Fang Hotel Co Ltd 13.74 12.98 5.9%
China Lodging Group Ltd 114.44 113.99 0.4%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 17.38 17.5 -0.7%
Regal Hotels International Holdings Ltd 5.89 5.84 0.9%
Sino Hotels Holdings Ltd 2.91 3.1 -6.1%
The Hong Kong & Shanghai Hotels Ltd 13.18 13.36 -1.3%
Shangri-La Asia Limited 13.56 13.5 0.4%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 116 119.05 -2.6%
EIH (Oberoi Hotels & Resorts) 137 134.65 1.7%
Hotel Leela Ventures 22.4 21.2 5.7%
Korea Exchange (KRW)
The Shilla 56300 59100 -4.7%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.485 0.495 -2.0%
Ascendas Hospitality Trust 0.83 0.84 -1.2%
Ascott Residence Trust 1.18 1.175 0.4%
Banyan Tree Holdings Limited 0.65 0.615 5.7%
CDL Hospitality Trusts 1.6 1.625 -1.5%
Far East Hospitality Trust 0.665 0.66 0.8%
Frasers Hospitality Trust 0.75 0.745 0.7%
Hotel Grand Central Ltd 1.315 1.34 -1.9%
Hotel Properties Ltd 3.89 3.9 -0.3%
Mandarin Oriental International Ltd (US$) 2.04 1.975 3.3%
OUE Hospitality Trust 0.77 0.76 1.3%
Stamford Land Corporation Ltd 0.495 0.495 0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 155 155 0.0%
The Ambassador Hotel, Ltd 23.55 23.6 -0.2%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 73100 74700 -2.1%
Imperial Hotel, Ltd 2081 2185 -4.8%
Red Planet Japan Inc 26 27 -3.7%

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