China Hotel Investment Summit (CHIS)
HVS International is proud to host the first ever China Hotel Investment Summit (CHIS) which will be held in Shanghai on the 28th and 29th April 2005 at The Westin Shanghai Hotel. For more information, please visit CHIS website

Featured in this Asia Pacific Hospitality Newsletter - Week Ending 4 February 2005
Indian Hotel Industry Survey 2003-04
Shangri-La Looks To Double Global Portfolio
Accor Wins Management Contract For Bangkok's New Airport
Accor Adds Two Sofitel Properties In Nanjing
Merrill Lynch Makes First Large Foray Into Chinese Property Market
Fraser Corporate Residences In Shenzhen Opens For Business
Major Transformation In Jakarta Central Business District
Bali Arrivals Hit Record Levels In 2004
Absolute Share Price Performance, as at 4 February 2005

Indian Hotel Industry Survey 2003-04 Return to Headlines

The Federation of Hotel & Restaurant Associations of India presents the seventh annual edition of the Indian Hotel Industry Survey 2003-2004, in cooperation with HVS International and our sponsor CNN. The annual survey is regarded as India's most comprehensive hotel industry report on operational statistics. As in previous years, a unique feature of this report is that it presents the number of participating hotels for each area of analysis - room profile, F&B facilities, occupancy, room rates and a myriad of other information. Click here to download Indian Hotel Industry Survey 2003-2004 (601 KB; PDF format)

Shangri-La Looks To Double Global Portfolio Return to Headlines

According to the Singapore Business Times, Asia's largest luxury hotel group Shangri-La looks to double its number of properties around the world, planning to reach 90 hotels by 2010 as it explores new markets such as North America and China. In the thrust for its "most significant expansion drive ever", the group will also hire 18,000 to 20,000 people in the next four to five years. Of the new hotels, at least 20-25 will be in China. The group, which also manages Traders Hotel, has 19 properties in China and two in Hong Kong. According to Mr. Martin Waechter, the group's Chief Marketing Officer, Shangri-La also plans to tap on the unprecedented outbound traffic from Asia and China and focus on exporting its brand to gateway cities like London, Frankfurt, Paris, New York, Los Angeles and San Francisco. Its strategy for 2005 is to increase rates by 4 to 5 per cent. Shangri-La has said it plans to open two more hotels in Dubai in 2008 and another in Doha, Qatar in late 2006.

Accor Wins Management Contract For Bangkok's New Airport Return to Headlines

Bound to open in July 2005, Bangkok's Novotel Suvarnabhumi Airport Hotel will feature 600 rooms in two square-shaped five-storey buildings, covering 10.5 hectares, with large open atrium areas in the centre of each structure. With a glass atrium lobby covering 2,800sqm five-stories in height, the Novotel will boast the largest hotel lobby in the world. The project, with an investment of THB2.7 billion (US$70 million), is being developed by three partners: the Airports of Thailand Public Company Limited, Thai Airways International Public Company Limited and Krung Thai Bank Public Company Limited. The hotel construction - being undertaken by Italian-Thai Development Public Company Limited - commenced in April 2004 and is due for completion in July 2005. Accor Managing Director Asia Pacific Michael Issenberg said Novotel Suvarnabhumi Airport Hotel will appeal to transit passengers, international conference groups, corporate travellers and air crews. The hotel is well positioned for delegates attending events at the nearby BITEC Convention and Exhibition Centre. With the addition of this property, Accor will count on 59 airport hotels in 17 countries, including 20 under the Novotel brand. These include hotels at some of the world's busiest airports in cities such as Paris, London, Frankfurt, Chicago and Sydney.

Accor Adds Two Sofitel Properties In Nanjing Return to Headlines

On yet another development in China, Accor has added two distinct Sofitel properties in different areas of China's rising commercial capital of Nanjing: the Sofitel Galaxy Nanjing in the city centre and the Sofitel Zhongshan Golf & Resort. Both hotels are scheduled to open by the end of 2005. These two Nanjing hotels continue the largest-ever expansion of the Sofitel brand in China and the Asia Pacific region. Over the next two years, Sofitel will increase from the current 29 hotels in eight countries to 47 hotels in 12 countries. This increase will establish the Sofitel brand as the largest 5-star hotel brand in the region. The 42-storey, 278-key Sofitel Galaxy Nanjing, which will be Nanjings's most prestigious internationally-branded deluxe hotel, is poised to become a landmark property in the city's fast growing central business district. Located within Zhongshan district, the 190-room Sofitel Zhongshan Golf & Resort Nanjing will offer guests an urban retreat just 20 minutes from the bright lights of the city.

Merrill Lynch Makes First Large Foray Into Chinese Property Market Return to Headlines

Merrill Lynch has invested approximately US$30 million in a prime real estate project in Beijing, making it its first major investment in China's property sector. Merrill Lynch has taken a stake in the Beijing Yintai Centre; the mixed-use development will contain a Park Hyatt Hotel, luxury residences and Grade-A office spaces. Construction is anticipated to be completed by January 2007. Having already invested in several small-scale property developments in other Chinese cities, the brokerage firm looks into continuing its foray into the Chinese real estate sector as it foresees an immense potential for capital appreciation and development in China.

Fraser Corporate Residences In Shenzhen Opens For Business Return to Headlines

Fraser Serviced Residences announced this week the official opening of Fraser Corporate Residences, Futian in the Chinese city of Shenzhen. Located in the heart of Shenzhen's CBD, the complex offers customised services to business travellers and expatriate residents. The property is owned by Shenzhen Qinian Industry & Development Co Ltd, a subsidiary of the Tianhong Group - one of the largest property developers in Beijing with considerable investments in Shenzhen. The 35-storey deluxe complex houses 165 units comprising one, two and three bedroom apartments that feature panoramic views over Shenzhen's skyline. The complex is also in close proximity to the new Xiang Mi Hu mass rapid transit railway station, and within walking distance to shopping areas and restaurants. Besides Shenzhen, Fraser also manages gold-standard serviced residences in Singapore, Manila, Seoul, Thailand, London, Paris and Glasgow. Future expansion plans include Beijing, Shanghai, Sydney, Bangkok, Calcutta, Dubai, Leeds, Manchester and Barcelona. In 2004, for the twelfth year, in a row Shenzhen's economy has ended the year ahead of other large and medium-sized Chinese cities in terms of foreign trade. Local customs statistics show that the city had US$147.31 billion worth of foreign trade in 2004, up 25.5% on a year-on-year basis. For 2005, the American Express Global Business Travel Forecast indicates a continued revival of the global business travel industry. Furthermore, the International Air Transport Association says that China is expected to be the world’s fastest-growing market for air travel, forecasting an average annual growth of 12.5% until 2008 versus a global growth of 6%.

Major Transformation In Jakarta Central Business District Return to Headlines

Jakarta's central business district is undergoing a major transformation with more than US$2billion worth of projects underway. With a bullish business sentiment in the air after more than six years of near-flat economic growth, property developers are clamouring to complete a plethora of commercial and retail spaces as well as luxury residential apartments over the next two years. In addition to the new developments, several mega projects that were shelved during the 1998 financial crisis have been revived through new financing. The largest amongst them is the US$250 million Pacific Place Development, behind Jakarta's Stock Exchange. Comprising more than one million square metres, Pacific Place will host one office tower, two apartment towers, a Ritz-Carlton Hotel, serviced apartments and possibly the city's largest shopping and retail centre. Its owner, Chinese business tycoon Tan Kian also owns the JW Marriott in the Mega Kuningan area. These hotel developments bode well with the tourism figures for Indonesia in 2004. Foreign tourist arrivals in Indonesia in 2004 rose 23% as compared to 2003, marking the strongest recovery in tourism since the 2002 Bali bombings. This recovery in tourism was also attributed to the series of successful elections which saw a peaceful transition of country's parliament and president.

Bali Arrivals Hit Record Levels In 2004 Return to Headlines

Final foreign direct arrival numbers for 2004 indicate Bali set a new all-time record for foreign visitors in 2004, totalling 1,458.309 visitors - a number that's 3.2% better than the previous record set in 2000. Also setting new records for Bali arrivals in 2004 was the entire Asia-Pacific region (excluding ASEAN) which generated 926,570 visitors - a number representing 63.5% of all Bali arrivals. The four leading source countries for Bali tourist arrivals were all from the Asia-Pacific region. Japan, South Korea, Taiwan and Australia constituted 58.8% of all arrivals to Bali. Australians are also returning to Bali in the wake of the 2002 Bali bombings. In 2004, more Australians than ever visited Bali returning the island to its former position as Australia's most preferred overseas holiday destination. Meanwhile, Japanese arrivals remained the largest inbound market for Bali (326,397), a total still 10% behind the "best ever" year for Japanese visitors recorded in 2000. Among ASEAN countries, visitors from Singapore and Malaysia led the charge visiting Bali in 2004. In all, 128,456 people from ASEAN countries travelled came to Bali during the year, a total 157% higher than the total generated just five years before in 2000. The upsurge in arrivals from the Asia-Pacific region mitigated the declines in visitors from the Americas and Europe where arrivals still lag behind 1999 figures.

Absolute Share Price Performance, as at 4 February 2005
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