HVS Asia Pacific Hospitality Newsletter - Week Ending 17 November 2017 (November 17, 2017)

Fujita Kanko Enters Indonesia with Cikarang Serviced Apartment

Japan’s leading hotel and tourism company, Fujita Kanko Inc., has announced its expansion into Indonesia with its first serviced apartment in the nation. Located in Cikarang, part of Greater Jakarta, the construction is set to commence soon, with a scheduled opening in the fall of 2019. The serviced apartment which has yet to be branded will provide 214 guestrooms under three categories, with configurations suited for both single guests and families. Additional facilities will include a restaurant, a gym, a club lounge and a Japanese-inspired spa with outdoor bath. Currently also being developed in Cikarang is Kota Jababeka, which is set to be the largest industrial park in Southeast Asia. The area is attracting an increasing number of international companies setting up their Indonesian offices. While Fujito Kanko has over 70 properties in Japan, the company has only recently expanded into external markets, with hotel developments such as Hotel Gracery Seoul and Hotel Gracery Taipei set to open in 2018 and 2019 respectively. 

Hilton Grand Vacations to Debut in Asia with Okinawa Resort

Japanese developer, Mori Trust, Hilton Grand Vacations (HGV) and Hilton have reached an agreement to build a new mixed-use development in Okinawa, Japan. Located on Sesokojima Island, and in close proximity to the northern beaches, the development will comprise the 132-unit timeshare resort that will be owned and managed by Hilton Grand Vacations and the 300-key Hilton Okinawa Sesoko resort. For the Hilton Grand Vacations Club, its 132 units will constitute different configurations ranging from one- to three-bedroom units, along with private balconies and fully-equipped kitchens. Under Hilton Grand Vacations’ timeshare system, ownership of the resort is sold on a weekly basis, and owners can build a stay schedule that is based on their needs. At the Hilton Okinawa Sesoko Resort, all its 300 rooms will offer undisrupted sea views. In addition to two restaurants and a lounge and bar, the resort will also have a wedding chapel and meeting rooms, as well as fitness facilities, an outdoor and indoor pool, a spa and a beach house. HGV timeshare resort is set to open in 2021, while Hilton Okinawa Sesoko is expected to commence operations in 2020. Currently, Hilton has over 56,000 Club Member families in Japan, with Okinawa being one of the most sought after domestic destinations.

Sansiri Public to Buy Stakes in Standard International

Sansiri Public Co. Ltd., a Bangkok-based real estate developer, has announced plans to invest US$58 million to purchase a 35 per cent stake in Standard International, operator of five boutique hotels in the US under ‘The Standard’ brand. The investment in Standard includes a total of three business units – The Standard hotel brand and operations; Bunkhouse Group, a lifestyle hotel brand based in Austin, Texas; and One Night, a mobile booking application developed by Standard International. Sansiri’s US$58 million investment will fuel the investment of new hotels, food and beverage outlets, and to develop the One Night app to its full potential to help it grow internationally, especially in Asia. The Standard Residences in Thailand will be launched with a hotel management contract and two franchises: The Standard and Bunkhouse. The first two properties will be opened in Bangkok and Phuket next year. Sansiri’s investment comes as part of an overall US$80 million investment in six leading global technology and lifestyle businesses.

Latest Hotel Openings in India

Marriott International announced the opening of the Indore Marriott Hotel in Indore, Madhya Pradesh. The hotel features 218 rooms and suites, a coffee shop, a delicatessen, two restaurants and a nightclub. For meetings and events, the hotel offers approximately 14,300 square feet of indoor meeting and event space in addition to a lawn spanning approximately 25,100 square feet. Other facilities at the hotel include a spa, a fitness center and a swimming pool.

AccorHotels opened the Novotel and Ibis Chennai OMR along the Old Mahabalipuram Road (OMR) in Chennai, Tamil Nadu. Featuring a combined inventory of 342 rooms, the hotels are part of a strategic partnership between AccorHotels, Interglobe Enterprises and APHV India Investco Pte. Ltd. The Novotel Chennai OMR features 153 rooms and suites, an all-day dining restaurant, a bar, approximately 451 square meters of meeting space and a fitness center; while the 189-key ibis Chennai OMR features an all-day dining restaurant, a bar, 89 square meters of meeting space and a fitness center.

Genting Cruise Lines and Tint Tint Myanmar Group to Jointly Develop Cruise Facilities at MacLeod Island

Genting Cruise Lines (Genting), a division of Genting Hong Kong Limited, comprising Star Cruises, Dream Cruises and Crystal Cruises, signed an agreement with Tint Tint Myanmar Group (Tint Tint) to jointly develop cruise facilities at MacLeod Island, a private island located in the Myeik archipelago, approximately 55 kilometres off the southern coast of Myanmar. The collaboration represents the first international cruise enterprise to partner with a Myanmar company in cruise port development, opening new opportunities for domestic and regional cruise tourism market. To capitalize on this partnership, Genting also announced new itineraries for Star Cruises and Dream Cruises offer an opportunity to cruise to MacLeod Island. Having already made its maiden call on 3 November, Star Cruises’ four-night roundtrip itinerary includes stops in Kuala Lumpur, Phuket, Macleod Island and Penang, whereas Dream Cruises’ five-night roundtrip itinerary includes stops in Singapore, Penang, Phuket and MacLeod Island.

Absolute Share Price Performance, as on 17 November 2017

Closing Share Price as at 17 November 2017 10 November 2017 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.16 2.17 -0.5%
Event Hospitality and Entertainment Ltd 12.82 12.87 -0.4%
General Property Group 5.25 5.36 -2.1%
Mirvac Group 2.44 2.54 -3.9%
Mantra Group 3.91 3.90 0.3%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 48.0 46.8 2.7%
Dusit Thani Public Co Ltd 11.3 11.8 -4.2%
The Erawan Group Public Co Ltd 8.0 7.5 6.7%
Grande Asset Hotels and Property Public Co Ltd 1.2 1.2 5.1%
Laguna Resorts & Hotel Public Co Ltd 25.5 26.0 -1.9%
Minor International Public Co Ltd 44.3 43.3 2.3%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 10.45 11.57 -9.7%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 4.07 4.52 -10.0%
Guangzhou Dong Fang Hotel Co Ltd 11.60 12.46 -6.9%
China Lodging Group Ltd 124.63 125.60 -0.8%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 16.74 16.74 0.0%
Regal Hotels International Holdings Ltd 5.94 5.85 1.5%
Sino Hotels Holdings Ltd 3.10 3.10 0.0%
The Hong Kong & Shanghai Hotels Ltd 11.48 12.48 -8.0%
Shangri-La Asia Limited 17.78 16.56 7.4%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 111.9 111.3 0.5%
EIH (Oberoi Hotels & Resorts) 155.0 151.0 2.6%
Hotel Leela Ventures 20.0 19.9 0.3%
Korea Exchange (KRW)
The Shilla 83800 84000 -0.2%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.54 0.55 -1.8%
Ascendas Hospitality Trust 0.86 0.86 0.0%
Ascott Residence Trust 1.18 1.21 -2.5%
Banyan Tree Holdings Limited 0.58 0.61 -5.7%
CDL Hospitality Trusts 1.64 1.64 0.0%
Far East Hospitality Trust 0.70 0.71 -1.4%
Frasers Hospitality Trust 0.78 0.78 0.0%
Hotel Grand Central Ltd 1.43 1.41 1.4%
Hotel Properties Ltd 3.96 3.95 0.3%
Mandarin Oriental International Ltd (US$) 2.21 2.24 -1.3%
OUE Hospitality Trust 0.81 0.82 -1.2%
Stamford Land Corporation Ltd 0.51 0.52 -1.9%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 151.0 151.0 0.0%
The Ambassador Hotel, Ltd 23.2 23.0 0.9%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 77700 75200 3.3%
Imperial Hotel, Ltd 2068 2071 -0.1%
Red Planet Japan Inc 30 30 0.0%

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