Featured in this Asia Pacific Hospitality Newsletter - Week Ending 16 June 2006
Pan Pacific Looking For New Kuala Lumpur Site
Controlled Increase of Hotel Prices During Beijing Olympic Games
Marco Polo Hotels to Manage New Hotels in Wuhan And Chengdu
Singapore Goes Big on Hotel Sites
Ramada Melbourne Sells
Accor Buys Puka Park Resort in New Zealand
Recruitment For HVS International
Absolute Share Price Performance, as at 16 June 2006

Pan Pacific Looking For New Kuala Lumpur Site Return to Headlines

Pan Pacific Hotels and Resorts, which recently lost its property in Kuala Lumpur (KL) because of expiration of management contract, is seeking for a new property in the Malaysian Capital. Pan Pacific still has one remaining property in the country - Pan Pacific Kuala Lumpur International Airport. Marketing and Sales Vice-President, Kevin Crowley, said: "The decision not to renew the contract was reached mutually between Seri Pacific and ourselves. We are fairly advanced in discussions with one property in Kuala Lumpur, and if things develop according to plans, it might be something we can open by year end." The brand has properties under development in Shanghai and India, and an announcement for a Taipei hotel might be made by year-end. The former Pan Pacific in downtown KL has been rebranded as the Seri Pacific Kuala Lumpur, and is the flagship hotel of Residence Hotels & Resorts Group. "We want it to be a showcase for the group and hopefully we can acquire more management contracts of five-star hotels in the future," General Manager, Jean Wasser, said. The hotel is undergoing a renovation and refurbishment exercise to be completed by year-end.

Controlled Increase of Hotel Prices During Beijing Olympic Games Return to Headlines

According to Beijing Modern Business Times, prices of a hotel room in Beijing during the 2008 Olympic Games are expected to rise by only one and half time, much lower than in other cities that have hosted the games. Xiong Yumei, Deputy Director of the Beijing Tourism Administration, said that Beijing hotels have been authorized to increase their room rates by 1.4 to 1.6 times. Hotels rates in Sydney and Torino rose two to three times their regular prices when they hosted the games.

Marco Polo Hotels to Manage New Hotels in Wuhan And Chengdu Return to Headlines

Marco Polo Hotels has signed a management agreement for two new properties in China - the Marco Polo Wuhan in Hubei and the Marco Polo Chengdu in Sichuan. Developed and owned by Wharf Estates China Limited, a parent company, both hotels will be part of multi-purpose complexes that will include residential towers and retail centres. Opening in 2007, the Marco Polo Wuhan is situated at the edge of an urban riverfront park with views of the Yangtze River. The 375-room hotel will feature three restaurants and a lounge, a 350-seat ballroom, a branded spa, a swimming pool, a fitness centre and tennis courts. The Marco Polo Chengdu will open in 2009 in the Central Business District of the city. The 425-room hotel will feature guestrooms and suites with an average size of 48 square metres, three restaurants and bars, meeting and banqueting facilities for up to 650 people, a branded spa, a swimming pool, a fitness centre and tennis courts. These two new hotels will bring the number of Marco Polo properties in mainland China to six. The company currently operates 10 hotels in Mainland China, Hong Kong, Philipines and Vietnam.

Singapore Goes Big on Hotel Sites Return to Headlines
Eight of the 15 new sites announced in the Ministry of National Development's (MND) Second-Half Land Sales Program are for either hotel development or have a minimum stipulated hotel component, as Singapore gears to achieve its goal of doubling visitor arrivals to 17 million by 2015. With 14 of the 15 new sites being offered through the reserve list - where sites are released for tender only upon successful application by a developer that undertakes to place a minimum bid acceptable to the state - the latest announcement is seen in property circles as a market-driven approach conducive to the recovery in the property sector. MND said that in addition to the 15 new sites, 19 reserve-list sites from the first half 2006 will be included in the reserve list, resulting in a total of 34 plots for the Government Land Sales. The 34 sites can potentially yield a total of 4,670 private homes, almost 279,000 square metres of commercial space (gross floor area) and 4,155 hotel rooms.

Ramada Melbourne Sells Return to Headlines
The PFA Diversified Property Trust has acquired the Ramada Hotel Melbourne for US$25 million in an off-market deal. Following the completion of the sale the hotel will be managed by Mirvac Hotels and Resorts and will be rebranded under its Citigate Sebel brand. The 182 room, four star hotel is centrally located at 270 Flinders Street in Melbourne, opposite Flinders Street Station and only 100 metres from Federation Square. The Ramada Hotel Melbourne has been owner-operated under the Ramada franchise since its opening in 2002. Citigate Melbourne Pty Ltd will lease the hotel for a ten-year period. The PFA Diversified Property Trust is an open-ended Bendigo Stock Exchange listed property trust. This acquisition is the Trust's first hotel transaction and is an addition to its portfolio of 16 properties valued at US$276 million.

Accor Buys Puka Park Resort in New Zealand Return to Headlines
Accor Premiere Vacation Club (APVC), a joint-venture holiday ownership company set up by international hotel operator Accor Asia Pacific and property developer Becton Corporation, has bought the the Grand Mercure Puka Park in New Zealand in a deal understood to be more than US$6,000,000. The property, located on the the Coromandel Coast, was bought from Puka Park Resort, a wholly owned subsidiary of Tainui Group Holdings. The purchase is the eighth APVC-owned Grand Mercure. APVC Chief Executive Officer Marty Kandel said New Zealand was seen as a priority for expansion for APVC, before Asia and the Pacific. ''The destination is seen as ideal for New Zealand members for weekend getaways, and for short-haul Australian members, maximising air capacity between major ports in Australia and New Zealand,'' he said. The Grand Mercure Puka Park joins other properties owned by APVC at St Moritz in Queenstown (NZ), Grand Mercure Basildene Manor, Margaret River (WA), Mercure Grand Hotel Melbourne (VIC), Mercure Grand Forest Villas near Daylesford (VIC), and at the new Grand Mercure Vintage Golf Resort in the Hunter Valley (NSW).

Recruitment For HVS International Return to Headlines

HVS International is the world's leading hotel consulting, valuation and investment services firm. As part of its growth strategy for Asia, HVS International is seeking suitable candidates to head up / support its practice in the following countries:

  • Japan
  • South Korea
  • Hong Kong SAR / China
  • Singapore

Positions available: Vice President / Director / Manager / Associates.

If you fulfill the following criteria and would like to be considered for a career with HVS International, please send your resume and cover letter in confidence to David Ling at dling@hvs.com

  • Working experience, preferably with a consulting firm (hotel, real estate consulting, valuation, investment banking, accountancy, etc);
  • Good command of written and spoken English and preferably one local language;
  • Holds a relevant University Degree;
  • Highly motivated leader and team player; and
  • Desire to travel.

Absolute Share Price Performance, as at 16 June 2006
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