HVS Asia Pacific Hospitality Newsletter - Week Ending 23 February 2018 (February 23, 2018)

Qatar Airways acquires Sheraton Melbourne Hotel

Qatar Airways has acquired the 174-room Sheraton Melbourne Hotel from Melbourne-based developer Golden Age Group for A$135 million. Qatar Airways has been expanding their portfolio of properties managed by the airline’s hospitality division, which includes the Sheraton Skyline Hotel at London’s Heathrow Airport, The Novotel Edinburgh Park in Edinburgh, the Oryx Rotana Hotel in Doha, and The Airport Hotel located at Doha’s Hamad International Airport. Sheraton Melbourne Hotel opened in early 2014 and was subsequently put up for sale in 2017 after Golden Age Group completed the A$75 million acquisition of a neighbouring site in Melbourne’s Spring Street from Grocon. The neighbouring site, set to be developed into a A$600 million mixed-use development, has now a joint venture agreement in place between Golden Age Group and Starwood Capital Group affiliates to operate the hotel component upon opening in 2020.

Australia achieves record 8.8 million arrivals for 2017

According to tourism statistics released by the Australian Bureau of Statistics, Australia recorded 8.8 million visitor arrivals for 2017, an increase of 6.5 per cent over the previous year. Tourists from mainland China and India increased the most with a 12% and 15% growth, bringing an additional 147,000 and 39,900 arrivals respectively. Although tourists from New Zealand remained the top source market and account for 15.4% of total arrivals, visitors from mainland China are close to overtaking as the top source market with only 900 arrivals lesser than New Zealand. According to Ryan Felsman, a senior economist at the securities unit of Commonwealth Bank of Australia, the island state of Tasmania has recorded a 40% increase of Chinese arrivals from January to September 2017, leading to the increasing demand for flight services to connect Mainland China and the state capital of Hobart.

Naumi Hotels makes debut in New Zealand and has expansion plans for more

Singapore-based Naumi Hospitality (“Naumi”) has debuted its brand in Australasia with the opening of the Naumi Auckland Airport. Located in the airport precinct and minutes’ drive from Auckland Airport, the 193-key hotel features an outdoor swimming pool, a restaurant and bar, gym, and over 500 square metres of meeting space. Naumi Auckland Airport is the brand’s third property and first hotel outside Singapore with further expansion plans in Australasia. In addition to the opening of a Naumi branded hotel in Sydney this year, Naumi has also acquired CQ Hotels Wellington for an undisclosed sum. Located on the vibrant Cuba Street, CQ Hotels Wellington currently comprises a 3-star 114-key Comfort Hotel and a 4-star 67-key Quality Hotel. Upon handover in late 2018, the properties are expected to be redeveloped and rebranded to Naumi Wellington, adding another 178 keys to Naumi’s growing portfolio.

Onyx Hospitality Group signs Shama Lakeview Asoke, Thailand

Thailand-based Onyx Hospitality Group has entered into a partnership with JR Kyushu Business Development (Thailand) Co. Ltd. for the Shama Lakeview Asoke. Located near the Asoke BTS and Sukhumvit MRT interchange station, the property will offer room types ranging from studio suites to three-bedroom apartments spread across two buildings. Facilities will include an all-day dining restaurant, swimming pool, golf practise range, fitness centre, children’s playroom and a meeting room. Following JR Kyushu’s purchase of the 429-key serviced apartment in December 2017, Onyx Hospitality Group has been appointed as the hotel management company. The Shama Lakeview Asoke is expected to launch in April 2018, with parts of the property undergoing refurbishment between 2018 and 2019. Shama is a brand of premium serviced apartments with 18 properties across Asia Pacific and another 11 in the development pipeline.

Absolute Share Price Performance, as on 23 February 2018

Closing Share Price as at 23 February 2018 16 February 2018 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 1.89 1.96 -3.6%
Event Hospitality & Entertainment Ltd 13.44 13.30 1.1%
General Property Group 4.79 4.74 1.1%
Mirvac Group 2.13 2.08 2.4%
Mantra Group 3.87 3.85 0.5%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 48.75 50.75 -3.9%
Dusit Thani Public Co Ltd 9.80 9.80 0.0%
The Erawan Group Public Co Ltd 8.30 8.55 -2.9%
Grande Asset Hotels & Property Public Co Ltd 1.03 1.08 -4.6%
Laguna Resorts & Hotel Public Co Ltd 29.75 31.25 -4.8%
Minor International Public Co Ltd 40.00 43.25 -7.5%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 9.97 10.05 -0.8%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 3.59 3.61 -0.6%
Guangzhou Dong Fang Hotel Co Ltd 9.94 9.87 0.7%
China Lodging Group Ltd 157.40 146.63 7.3%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 15.80 15.40 2.6%
Regal Hotels International Holdings Ltd 4.95 4.89 1.2%
Sino Hotels Holdings Ltd 3.30 3.20 3.1%
The Hong Kong & Shanghai Hotels Ltd 11.90 11.38 4.6%
Shangri-La Asia Limited 17.24 16.80 2.6%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 133.0 137.0 -2.9%
EIH (Oberoi Hotels & Resorts) 171.1 181.5 -5.8%
Hotel Leela Ventures 19.3 21.3 -9.4%
Korea Exchange (KRW)
The Shilla 83200 84800 -1.9%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.54 0.55 -1.8%
Ascendas Hospitality Trust 0.85 0.86 -1.2%
Ascott Residence Trust 1.18 1.16 1.7%
Banyan Tree Holdings Limited 0.60 0.57 5.3%
CDL Hospitality Trusts 1.67 1.68 -0.6%
Far East Hospitality Trust 0.71 0.72 -0.7%
Frasers Hospitality Trust 0.78 0.79 -1.3%
Hotel Grand Central Ltd 1.45 1.44 0.7%
Hotel Properties Ltd 3.74 3.73 0.3%
Mandarin Oriental International Ltd (US$) 2.14 2.10 1.9%
OUE Hospitality Trust 0.86 0.84 3.0%
Stamford Land Corporation Ltd 0.50 0.50 0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 151.5 151.0 0.3%
The Ambassador Hotel, Ltd 23.1 22.9 0.7%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 79400 78200 1.5%
Imperial Hotel, Ltd 2250 2226 1.1%
Red Planet Japan Inc 31 32 -3.1%

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