Featured in this Asia Pacific Hospitality Newsletter - Week Ending 17 March 2006
Growth in India - Kempinski And Leela Expand Their Agreement
Airport Tax Hike Expected in Malaysia
Koh Chang Continues to Grow
Sheraton to Open in Shanxi
Singapore GIC Sells Hotels to Blackstone Group
Hilton to Launch Three New Brands in Australia
Transaction Wrap in Australia And New Zealand
HVS International to Host Two Hotel Conferences in April 2006
Absolute Share Price Performance, as at 17 March 2006


Growth in India - Kempinski And Leela Expand Their Agreement Return to Headlines

Kempinski Hotels and The Leela Palaces & Resorts announced the extension of the Management Alliance in India between the two groups. In addition to The Leela Kempinski hotels in Mumbai, Bangalore and Kovalam, another five hotels in New Delhi - Gurgaon, Udaipur, Chennai, Hyderabad and Pune will be included in the alliance agreement in the next four years.


Airport Tax Hike Expected in Malaysia Return to Headlines

A significant airport tax hike is expected this week in Malaysia. Malaysian Cabinet will be presented with a proposal that International flight tax will rise from US$11.8 to US$15.8-17.1 and domestic flight tax will increase from US$1.5 to US$2.6-3.2.


Koh Chang Continues to Grow Return to Headlines

Royal Princess Hotels and Resorts will open its first beach resort property in the second largest island of Thailand - Koh Chang in November 2006. Developed by Bailann Resort Company Limited, the 96-key resort, the Princess Resort Koh Chang, will occupy 150 metre of beach front on Ao Bai Lan Beach. 70 per cent of construction has been completed to date.


Sheraton to Open in Shanxi Return to Headlines

Starwood has announced the opening of a Sheraton hotel in Taiyuan, Shanxi province, in January 2009. The 400-room property is currently under construction, and is located in the western portion of the city, next to the Fen River Scenic Zone. Starwood currently has 22 hotels and resorts under construction in China under its Westin, Sheraton, W Hotels, Le Meridien, and Four Points by Sheraton brands.


Singapore GIC Sells Hotels to Blackstone Group Return to Headlines

The Financial Times reported Blackstone Group bought Hospitality Europe for $790 million from the Singapore Government's real estate arm and a Qatari consortium. The deal was said to involve eight hotels in Europe, including four Sheratons at Frankfurt Airport, Schiphol Airport in Amsterdam, Brussels airport and Stockholm, as well as the Pulitzer Hotel in Amsterdam. A Hyatt in Paris and two other hotels in Prague and Brussels were also said to be part of the portfolio.


Hilton to Launch Three New Brands in Australia Return to Headlines

Hilton Hotels Corp is looking to capitalise on the acquisition of its United Kingdom-based international arm by introducing three new brands into Australia. The group plans to bring Hilton Grande into the region, where it will operate in the same category as Accor's Novotel and InterContinental's Holiday Inn brands. Hilton might also introduce the Doubletree brand to compete against Mercure and Crowne Plaza hotels in the three- to four-star bracket. Further down the chain, Hilton is also planning to introduce Hampton Inn to the market to compete against Ibis and Travelodge. "Much of the future growth anticipated from new activity that Hilton Hotels Corp can bring to the table is from franchising and those mid-market brands," said Hilton Hotels Corp's president for Middle East and Asia Pacific.


Transaction Wrap in Australia And New Zealand Return to Headlines

Institutions are continuing their buying spree in the hotel market. Two deals worth a total of US$30 million were finalised in Perth and Wellington in March. Abacus Property Group exchanged contracts to buy the four-star Chateau on the Park in Christchurch for US$17.2 million. The 193-room hotel set on two hectares of gardens was sold by NQ Resorts, which is part of Japan's Shipfield group. The move into New Zealand was Abacus's first offshore deal. Meanwhile, the JF Meridian Trust and NRMA venture, which owns the Travelodge Hotel Group, said yesterday it had bought the Commodore Hotel in Perth's CBD for US$12.7 million from private Singapore investors. Toga Hospitality will operate the hotel as the Travelodge Perth under a 20-year lease. The venture will undertake a US$4.5 million refurbishment that will boost the room count to 126. The purchase takes Travelodge's portfolio to 11 hotels valued at more than US$203.2 million.


HVS International to Host Two Hotel Conferences in April 2006 Return to Headlines
We are pleased to announce two conferences to be hosted by HVS International in Shanghai and New Delhi:
CHIS 2006 'WINNING STRATEGIES FOR HOTEL INVESTMENT IN CHINA' (CHIS 2006)
Date: 26 - 28 April 2006
Venue: Grand Hyatt Shanghai
HOTEL INVESTMENT CONFERENCE – SOUTH ASIA (HICSA 2006)
Date: 5 - 6 April 2006
Venue: Taj Lands End Mumbai

Absolute Share Price Performance, as at 17 March 2006
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