Featured in this Asia Pacific Hospitality Newsletter - Week Ending 28 July 2006
Cebu To Invest In A High-end Resort And Spa, An 18-hole Golf Course And A Retirement Village On Mactan Island
China Rings Up US$219 Billion Of Foreign Tourism Revenue Since Reforms Began
New Regulations To Curb Foreign Investment In The Real-Estate Market In China
Four Points By Sheraton Expanding In China
Thakral Forecast Surges After US$72 Million Revaluation
Frasers Measures Up Saville Hotels
Absolute Share Price Performance, as at 28 July 2006


Cebu To Invest In A High-end Resort And Spa, An 18-hole Golf Course And A Retirement Village On Mactan Island Return to Headlines

Tourism Secretary Joseph H. Durano hailed the Mactan Island Cebu venture as the biggest Korean investment so far in the Philippine tourism industry. It is expected to boost Cebu's capacity to accommodate foreign tourists, help attract more tourists and encourage more Korean investments. The new resort will comprise 616 rooms spread over six medium-rise buildings, three low-rise buildings and 40 single units. It will be managed by the Imperial Palace Hotel, a deluxe hotel based in Seoul, on a 7.5-hectare site in Barangay Maribago, Lapu-Lapu City in Mactan in the next two years.


China Rings Up US$219 Billion Of Foreign Tourism Revenue Since Reforms Began Return to Headlines

Since China initiated its reform in 1978, 1.239 billion tourists have entered China and a total of US$219 billion has been collected in foreign tourism revenue. According to statistics from the China National Tourism Administration (CNTA), in the period from 1978 through to 2005, the number of China's inbound tourists increased from less than 2 million to 120 million per year. Revenues from foreign tourism income leapt from US$263 million to US$29.3 billion. That translates to a 17 percent annual growth in numbers and a 19 percent annual growth in revenues. In terms of the number of inbound travelers, China now ranks fourth in the world and sixth in terms of foreign currency income. Developing inbound tourism is an important avenue to increase China's foreign currency income and provides capital for China's economic development. The tourism industry can also enhance China's international stature as well as promote exchanges and cooperation between China and other nations.


New Regulations To Curb Foreign Investment In The Real-Estate Market In China Return to Headlines

Jun Ma, Deutsche Bank's Greater China chief economist, estimates that measures to curb foreign investment measures, which were signaled by China weeks in advance, should cut foreign-fund flows into the luxury segment of major cities such as Shanghai and other metropolitan areas by 50%. "It will virtually eliminate all of the speculative foreign demand," Ma said, adding he expects the luxury segment to decline by 5% to 20% in the wake of the new regulations. Key among the new rules is a requirement stipulating individuals must live or work in the country for a year before purchasing property. Overseas investors who do not plan to occupy the properties they buy must first set up a foreign-funded enterprise. For property investments over $10 million, the capital adequacy ratio will rise to 50% from 33% previously.


Four Points By Sheraton Expanding In China Return to Headlines
Starwood Hotels & Resorts Worldwide continues its expansion in China with the signing of two new hotels: Four Points by Sheraton Tianjin and Four Points by Sheraton Hangzhou. Starwood Hotels & Resorts and Tianjin City Sun Real Estate Development signed an agreement whereby Starwood will manage the newly build Four Points by Sheraton Tianjin. The hotel is scheduled to open in mid-2008 and is located within a mixed-use development on Zhongshan Road in the district of Hebei District. The management agreement of the Four Points by Sheraton Hangzhou was signed with Zhejiang Dragon Happy Investment Group. The hotel is scheduled to open in mid-2008 and will be located within a mixed-use development located about 30 minutes by car from Hangzhou Xiaoshan International Airport. The first Four Points in China was opened in Shanghai in 2006. Other Four Points soon to open in China will be located in Dalian, Daning (Shanghai) and Changshu.

Thakral Forecast Surges After US$72 Million Revaluation Return to Headlines
Hotelier and developer Thakral Holdings Group has forecasted a 145% increase in after-tax profit after US$72 million in asset revaluations. The group said the hefty revaluation was a result of the new International Financial Reporting Standards (IFRS). "The changes to IFRS accounting standards from Australian Generally Accepted Principles (AGAP) have resulted in a significant favourable impact on the group's profit and loss account," Thakral said. "It would be unreasonable to expect this level of valuation increase each year." More than half the revaluation gain was from the group's retail and commercial assets. He said that excluding the revaluation, after-tax profit was expected to rise by about US$28 million or 25%. Thakral said reporting under IFRS would add to greater volatility in the group's results because of valuation increases and the way profits were recorded.

Frasers Measures Up Saville Hotels Return to Headlines
Frasers Serviced Residences (FSR) Regional General Manager said the group was looking at the management business which operates 11 Australian hotels and was officially put on the market by Stockland. The Saville Hotel Group has a book value of approximately US$15 million, but higher 2006 profits are expected to push up the eventual sale price. FSR, the hotel arm of Singapore-based diversified group Fraser & Neave, plans to open five new five-star hotels in Australia's capital cities over the next five years as part of a global rollout of 35 hotels in that period. The group's first Australian hotel, the 201-room Fraser Suites Sydney, is expected to open in October. The hotel will form part of the US$460 million Lumiere Residences development on the corner of Kent and George Streets in Sydney's CBD. The hotel would be the first five-star hotel to open in Sydney since the 2000 Olympic Games. Frasers also plans to open a 150-room hotel as part of a US$153 million mixed-use development in East Perth in the first quarter of 2009.

Absolute Share Price Performance, as at 28 July 2006
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