HVS Asia Pacific Hospitality Newsletter - Week Ending 15 December 2017 (December 15, 2017)

Maldives Tourist Arrivals on Track for Record Year

According to statistics from the Maldives’ Ministry of Tourism, the country recorded 1,125,995 tourist arrivals as of October 2017, a 6 percent increase over the previous year. With figures yet to include the peak month of December, total tourist arrivals for the full year 2017 could outpace that recorded for the full year 2016 (1,286,135 tourist arrivals). In terms of source markets, while arrivals from China continue to decrease, this is offset by the increase in arrivals from traditional European markets and double-digit growth in arrivals from new markets such as United States, India and South Korea. However, despite the decline, tourist arrivals from China still hold the largest market share at 22.4% as of October 2017. Occupancy of accommodation nationwide dropped to 60.3 percent from 63.4 percent the year before, reflecting that the increase in bed supply has counteracted the increase in total arrivals.

Thakral Corp Expands with Dual Investments in Osaka

Singapore’s mainboard-listed Thakral Corp has expanded into Osaka with two investments consisting of a hotel and a retail redevelopment site. The 120-room R Hotels Inn Kita Umeda has recently completed an estimated 500-million-yen refurbishment. Meanwhile, for the retail redevelopment site, construction will likely commence in March 2018 for a three-level retail building with an estimated cost of 300 million yen. An agreement has been reached to lease the development to one of the leading retail chains in Japan upon completion. Both investments will be conducted through a jointly owned pooled investment vehicle, Thakral Japan Properties. Its current portfolio in Japan includes the Best Western Osaka Tsukamoto Hotel and two office buildings.

First Sponsor Partners with CDL and Tai Tak to Acquire Le Meridien Frankfurt Hotel

Singapore-based property company, First Sponsor Group Limited (“First Sponsor”), in partnership with two key shareholders, Singapore-based City Developments Limited (“CDL”) and Tai Tak Estates Sendirian Berhad (“Tai Tak”), has entered into a sale and purchase agreement for the proposed acquisition of the Le Meridien Frankfurt Hotel in Germany for €85.0 million (S$135.9 million), inclusive of transaction costs. The acquisition is expected to be completed later this month or early January 2018. Located close to the Frankfurt Central Station, the 300-key freehold property is currently leased to MHP Parkhotel with a lease expiry date of May 31, 2040, and is operated under the Le Meridien brand via a franchise. The acquisition marks First Sponsor’s first foray into Germany and CDL’s second property in the country, the latter having previously entered Munich through CDL Hospitality Trusts’ acquisition of the 337-key Pullman Hotel Munich for €98.9 million (S$153.8 million).

Club Med to Take Over Beachcomber Seychelles Saint Anne Resort & Spa

France-based Club Med has reached an agreement with The New Mauritius Hotels Ltd, which wholly owns Ste Anne Resort Ltd, for the redevelopment of the existing Beachcomber Seychelles Saint Anne Resort & Spa. Post completion, the redeveloped resort will be leased out to Club Med for an initial term of 12 years. The 87-key Beachcomber Seychelles Sainte Anne Resort & Spa first began operations in 2001, subsequently, closing for redevelopment in September 2017. Construction will commence in the first half of 2018, and is expected to be completed by the end of 2019. The entire redevelopment project will cost approximately 70 million euros and will see the former 87-key resort reopen with 295 rooms, along with an estimated provision of 500 jobs.

InterContinental Hotels Group’s Kimpton Brand to Debut in Taiwan

InterContinental Hotels Group PLC (IHG) has reached a partnership agreement with Malaysia’s Cornerstone Partners Group for the first Kimpton Hotel in Taipei, Taiwan. Since the acquisition of the Kimpton brand by IHG in 2015, the company has brought the brand to Asia with previous signings in Shanghai, Sanya and Bali. Representing the latest addition in the region, Kimpton Taipei will provide 129 boutique rooms and suites, which will be distributed within a 14-storey tower. The hotel is also a new addition to IHG’s existing portfolio of five properties in Taiwan, which consists of brands such as Crowne Plaza Hotels & Resorts, Hotel Indigo, Holiday Inn and Holiday Inn Express. Furthermore, there are another five properties in the pipeline for Taiwan. Kimpton Taipei is slated to open in 2018.

Absolute Share Price Performance, as on 15 December 2017

Closing Share Price as at 15 December 2017 8 December 2017 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.13 2.14 -0.5%
Event Hospitality & Entertainment Ltd 12.90 13.08 -1.4%
General Property Group 5.38 5.39 -0.2%
Mirvac Group 2.46 2.47 -0.4%
Mantra Group 3.90 3.91 -0.3%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 55.0 57.0 -3.5%
Dusit Thani Public Co Ltd 10.5 10.4 1.0%
The Erawan Group Public Co Ltd 8.0 8.4 -4.8%
Grande Asset Hotels & Property Public Co Ltd 1.1 1.2 -5.0%
Laguna Resorts & Hotel Public Co Ltd 24.4 26.8 -8.8%
Minor International Public Co Ltd 42.8 42.8 0.0%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 10.83 10.59 2.3%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 4.08 3.98 2.5%
Guangzhou Dong Fang Hotel Co Ltd 11.76 11.96 -1.7%
China Lodging Group Ltd 125.48 120.24 4.4%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 15.36 16.00 -4.0%
Regal Hotels International Holdings Ltd 5.78 5.59 3.4%
Sino Hotels Holdings Ltd 3.10 3.11 -0.3%
The Hong Kong & Shanghai Hotels Ltd 11.00 10.74 2.4%
Shangri-La Asia Limited 16.50 16.90 -2.4%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 119.5 122.2 -2.2%
EIH (Oberoi Hotels & Resorts) 149.0 145.1 2.7%
Hotel Leela Ventures 19.3 19.6 -1.5%
Korea Exchange (KRW)
The Shilla 87200 86700 0.6%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.53 0.55 -3.6%
Ascendas Hospitality Trust 0.86 0.85 1.2%
Ascott Residence Trust 1.21 1.19 1.7%
Banyan Tree Holdings Limited 0.56 0.54 3.7%
CDL Hospitality Trusts 1.66 1.68 -1.2%
Far East Hospitality Trust 0.71 0.71 0.0%
Frasers Hospitality Trust 0.79 0.78 1.3%
Hotel Grand Central Ltd 1.40 1.41 -0.7%
Hotel Properties Ltd 3.85 3.75 2.7%
Mandarin Oriental International Ltd (US$) 1.92 2.01 -4.5%
OUE Hospitality Trust 0.83 0.82 1.8%
Stamford Land Corporation Ltd 0.49 0.50 -2.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 154.0 155.0 -0.6%
The Ambassador Hotel, Ltd 23.2 23.0 0.9%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 79900 78800 1.4%
Imperial Hotel, Ltd 2143 2111 1.5%
Red Planet Japan Inc 35 33 6.1%

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