IFC Invests up to US$12.8 Million in Discovery World Corporation

International Finance Corporation (IFC), World Bank’s private investment arm, is investing up to US$12.8 million (₱650 million) in Philippines-listed hotel and resort developer, Discovery World Corporation (DWC). Both parties have signed a subscription agreement, subject to approval by the stockholders of DWC and the Securities and Exchange Commission, wherein IFC will subscribe up to 216.6 million preferred shares in DWC at ₱3 per share. The preferred shares shall be convertible to common shares at any time after the expiry of 48 months from the date of subscription. IFC’s investment will aid DWC to meet the growing demand for hospitality infrastructure in the country, and finance the setup of two new properties for DWC in key frontier locations, El Nido, Palawan and La Trinidad, Benguet.

Indonesia’s CT Corp and AccorHotels in Partnership to Open 30 Hotels in Indonesia

CT Corp has penned a Memorandum of Understanding (MoU) with AccorHotels for the addition of 30 hotels, representing 6,000 keys, in Indonesia. Prior to the MoU, the first partnership between the two companies commenced with the management of the 568-key ibis Bandung Trans Studio, which opened in 2012. The hotel is located within the integrated Trans Studio Bandung complex, and is adjacent to a shopping mall and an indoor theme park. Under the newly signed MoU, future developments will adopt a similar concept of integrated hotels and lifestyles properties. Two of such developments are already in the pipeline – one in East Jakarta (2018) and the other in Surabaya (2019). This partnership will help accelerate tourism development in Indonesia; allow CT Corp to benefit from AccorHotels’ strong distribution network and diverse portfolio of brands; as well as solidify AccorHotels’ holding as the leading hotel company in Indonesia.

Ratchada Honda Automobile Company to Open Holiday Inn Express Bangkok Ratchada in 2020

InterContinental Hotels Group (IHG) has signed a management agreement with Ratchada Honda Automobile Company Limited for the Holiday Inn Express Bangkok Ratchada. Set to open in 2020, the hotel will be developed along Ratchadaphisek Road, a five-minute walk from the Huai Khwang MRT station. The 220-room property will feature a boardroom, a self-service business center, a laundry room and a 24-hour fitness center. The Holiday Inn Express brand currently has 17 hotels and resorts in Southeast Asia, five of which are located in Thailand.

IHG Extends Franchise Model in China

InterContinental Hotels Group (IHG) has extended the franchise business model in China to its Crowne Plaza, Holiday Inn and Holiday Inn Resort brands, aiming to accelerate expansion in the country. Under the franchise model, IHG grants licenses to franchisees, allowing them to operate hotels under the IHG brands; the franchisees are responsible for the operation of the hotels while IHG provides regular audits and training to ensure its standards are met. IHG has been operating a franchise model for its Holiday Inn Express brand since last May in a trial. The model had proved quite popular with Chinese owners, with 68 deals signed and six hotels already opened. It is reported that HK CTS Hotels will rebrand its Metropark Lido Hotel Beijing as Holiday Inn Beijing Lido in late 2018, and IHG’s existing Crowne Plaza Beijing Lido will transfer from direct management to a franchise in early 2018. Both hotels will be managed by Kew Green Hotels, a subsidiary of HK CTS Hotels and one of IHG’s largest partners in Europe.

Absolute Share Price Performance, as on 1 December 2017