HVS Asia Pacific Hospitality Newsletter - Week Ending 22 December 2017 (December 22, 2017)

Wishing You a Very Happy New Year 2018!

We take this opportunity to wish all our readers, clients and friends a wonderful New Year holiday.

Hilton Kuala Lumpur Sold for RM497 Million to Daito Trust Construction

Japan-based Daito Trust Construction Co., Ltd. (“Daito”) has acquired the 503-key Hilton Kuala Lumpur for RM497 million (RM988,000 per key) from Japanese billionaire, Katsumi Tada, through the acquisition of Daisho Asia Development (M) Sdn Bhd (“Daisho Asia”), which owns the hotel. Daito, a company founded by Tada in 1974, also owns the Le Meridien Kuala Lumpur, located adjacent to the Hilton in Kuala Lumpur Sentral. Tada is said to have cut ties with Daito in 2011. The 35-storey hotel, with ten F&B outlets and nine function rooms, occupies approximately 12,300 square meters of freehold land with a gross floor area of 53,700 square meters, exclusive of the carpark. Its 15-year management contract with Hilton is also set to expire in 2019.

Israel-based Dan Hotels Debuts in India with The Den, Bengaluru

Israeli hotel group, The Dan Hotels, opened its first property outside of Israel with The Den hotel in Bengaluru, India. Located in Whitefield, the hotel features 226 rooms and suites with base category rooms measuring 360 square feet. On the food and beverage front, the hotel features an all-day dining restaurant, a bar & lounge, a delicatessen, a specialty restaurant, over 10,000 square feet of indoor meeting and event space that includes a 75-seater auditorium, and an amphitheatre. Other facilities at the hotel include a swimming pool, a fitness centre, a spa, a game room and a 15-seater cinema theatre. The Den was built at a cost of INR490 crore (including land) under the company Den Hotels India Pvt. Ltd., which received 100 per cent investment from The Dan Hotels, Israel. 

Minor Hotels Signs AVANI Hotel in Muscat, Oman

Thailand-based hotel operator, Minor Hotels has signed a management agreement with Safari International Group for a new AVANI hotel in Muscat, the capital of Oman. Slated to open by mid-2020, the Avani Muscat Hotel will be located to the west of the city in Seeb, near the Muscat International Airport. The hotel will be connected to the upcoming Al Araimi Boulevard Mall, scheduled to open in 2018, which will feature over 250 retail and dining outlets, a medical center and a cinema complex. With an investment of USD50 million, the 250-key property will be developed in two phases. The first phase will include 160 guest rooms and suites, a rooftop lounge, an all-day dining restaurant, a swimming pool and health club, as well as meeting facilities and a 1,000-square-meter ballroom. The second phase, commencing two years after the opening of the hotel, will offer 90 serviced apartments ranging from studios to three-bedroom apartments. 

Hotel Nikko Set for Bali Return in 2018

Okura Nikko Hotel Management Co., Ltd., a subsidiary of Hotel Okura Co., Ltd., has reached an agreement with P.T. Karya Tehnik Hotelindo to operate one of their existing properties in Bali. To be rebranded as Hotel Nikko Bali, the property is sited along the coastline of Badung peninsula in south eastern Bali, and is accessible via a 30-minute drive from Ngurah Rai International Airport. The rebranded hotel will offer 188 rooms averaging 45 square meters of floor space, each offering private balconies or porches. with an average size of 45 square meters, including 20 luxury guestrooms which are double the size of the standard rooms. Other facilities at the hotel comprise a nursing room, an outdoor pool for children, six dining outlets, a spa and a fitness centre. Hotel Nikko Bali is part of Hotel Okura Co., Ltd.’s expansion plan to increase its portfolio to 100 properties in Asia.

Royal Orchid Forays into Dwarka, Gujarat, with the Opening of the Regenta Inn The Dwarika

Royal Orchid Hotels opened its first property in Dwarka, Gujarat, with the opening of the Regenta Inn The Dwarika. The hotel features 57 rooms and suites with base category rooms measuring 154 square feet.  Other facilities at the hotel comprise an all-day dining restaurant, a vegetarian restaurant, two banquet halls, a swimming pool, a fitness centre, a spa 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 22 December 2017

Closing Share Price as at 22 December 2017 15 December 2017 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.12 2.13 -0.5%
Event Hospitality & Entertainment Ltd 13.27 12.90 2.9%
General Property Group 5.28 5.38 -1.9%
Mirvac Group 2.41 2.46 -2.0%
Mantra Group 3.90 3.90 0.0%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 53.5 55.0 -2.7%
Dusit Thani Public Co Ltd 10.4 10.5 -1.0%
The Erawan Group Public Co Ltd 8.1 8.0 1.9%
Grande Asset Hotels & Property Public Co Ltd 1.2 1.1 4.4%
Laguna Resorts & Hotel Public Co Ltd 23.8 24.4 -2.5%
Minor International Public Co Ltd 43.3 42.8 1.2%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 10.61 10.83 -2.0%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 4.04 4.08 -1.0%
Guangzhou Dong Fang Hotel Co Ltd 11.53 11.76 -2.0%
China Lodging Group Ltd 137.40 125.48 9.5%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 15.82 15.36 3.0%
Regal Hotels International Holdings Ltd 5.87 5.78 1.6%
Sino Hotels Holdings Ltd 3.10 3.10 0.0%
The Hong Kong & Shanghai Hotels Ltd 11.28 11.00 2.5%
Shangri-La Asia Limited 16.32 16.50 -1.1%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 120.5 119.5 0.8%
EIH (Oberoi Hotels & Resorts) 149.0 149.0 0.0%
Hotel Leela Ventures 20.8 19.3 7.5%
Korea Exchange (KRW)
The Shilla 82700 87200 -5.2%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.53 0.53 0.0%
Ascendas Hospitality Trust 0.88 0.86 1.7%
Ascott Residence Trust 1.22 1.21 0.8%
Banyan Tree Holdings Limited 0.56 0.56 -0.9%
CDL Hospitality Trusts 1.66 1.66 0.0%
Far East Hospitality Trust 0.71 0.71 0.0%
Frasers Hospitality Trust 0.79 0.79 -0.6%
Hotel Grand Central Ltd 1.42 1.40 1.4%
Hotel Properties Ltd 3.80 3.85 -1.3%
Mandarin Oriental International Ltd (US$) 1.92 1.92 0.0%
OUE Hospitality Trust 0.85 0.83 2.4%
Stamford Land Corporation Ltd 0.49 0.49 0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 153.5 154.0 -0.3%
The Ambassador Hotel, Ltd 23.1 23.2 -0.4%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 79100 79900 -1.0%
Imperial Hotel, Ltd 2155 2143 0.6%
Red Planet Japan Inc 31 35 -11.4%

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