Featured in this Asia Pacific Hospitality Newsletter - Week Ending 5 May 2006
CHIS 2006 - Thank You For Your Support And Participation!
Kingdom Hotel Investments (KHI) Buys Phuket Hotel
Budget Hotels Expand In China
Millennium & Copthorne In A Joint Venture To Develop New Millennium Hotel In Beijing
Acacia Hotel In Perth To Be Re-branded As All Seasons
EasyGroup To Expand Budget Hotel Chain
Kempinski To Manage The Redeveloped Hotel Indonesia
Absolute Share Price Performance, as at 5 May 2006

CHIS 2006 - Thank You For Your Support And Participation! Return to Headlines

Dear Industry Colleagues,

The 2nd annual China Hotel Investment Summit (CHIS) hosted by HVS International and Beijing International Studies University was held at the Grand Hyatt Shanghai from 26 to 28 April 2006. The event was a great success, with a record of 450 international and local participants this year from 16 countries. We hope the CHIS was informative and fruitful for all as it was for us.

HVS International would like to extend our greatest appreciation to all sponsors, moderators, panelists, delegates, media partners, supporters. Your contributions have brought CHIS to scale greater heights this year. Thank you.

Sincerely yours,

HVS International Shanghai

Kingdom Hotel Investments (KHI) Buys Phuket Hotel Return to Headlines

KHI has announced that it has signed a contract to acquire the Karon Beach Hotel, Phuket. The hotel, currently managed by Crowne Plaza, has been purchased from LaSalle Investment Management for US$98.5 million, including US$30.5 million of debt. This is KHI's first acquisition in Asia. The property is a freehold asset in a prime area of rebounding tourism demand. KHI will re-brand the Hotel as a Mövenpick, with no specific date disclosed.

Budget Hotels Expand In China Return to Headlines

Budget hotel groups are quickly expanding their business in the Chinese mainland's hotel market. Since its first hotel launch in 1996, Jinjiang Inn has become the largest budget hotel group in China with 18,000 rooms in 37 cities. 40% of the group's hotels are run on a franchise basis. Home Inn, another budget hotel operator, has expanded to more than 120 hotels across the nation since it started business in 2002. Home Inn manages all its hotels without any franchising. Super8 started its business in P.R.China in 2004 and now totals 18 hotels across the country. Finally, Accor, the French hotel brand, signed a contract to launch the first Ibis hotel in Shanghai on April 20.

Millennium & Copthorne In A Joint Venture To Develop New Millennium Hotel In Beijing Return to Headlines

Millennium & Copthorne Hotels PLC entered a joint venture to develop a new hotel in Beijing at a cost of US$144 million. The group said it signed an agreement with Beijing Xiangjiang Xingli Real Estate Development Co Ltd and other parties to develop and operate a five-star hotel in the heart of the new Central Business District in the Chinese capital. The hotel, to be called The Millennium Beijing, will feature 28 floors with 520 guest rooms. It is scheduled to open during the first half of 2008, before the Beijing Olympics. The London-listed company will initially hold 30% of the joint venture, but its stake will increase to 70% by the end of December 2006, which means its proportion of the development costs will be around US$101 million. The Millennium Beijing will be the group's second hotel in China after the Millennium Hongqiao Shanghai.

Acacia Hotel In Perth To Be Re-branded As All Seasons Return to Headlines
Accor will add its sixth hotel in Perth following the completion of the sale of the Acacia Hotel in Northbridge to GPR Hotels Pty Ltd. The sale is expected to be completed in June, with Accor taking over the hotel and re-branding it to All Seasons Perth by the end of the month. It will join the existing Novotel Langley, Mercure Perth, Ibis Perth, Formule 1 Perth Airport, and Novotel Vines Resort in the Swan Valley. The All Seasons Perth is located in bustling Northbridge, considered as Perth’s premier restaurant and entertainment district. The All Seasons brand has been the fastest-growing brand in Australia over the past year, with 16 new hotels since April 2005.

EasyGroup To Expand Budget Hotel Chain Return to Headlines
EasyGroup, the owner of the no-frills airline easyJet, said it plans to expand its easyHotel.com budget hotel chain in the Middle East, North Africa, India and Pakistan. The group has agreed a licensing deal with Istithmar Hotels, a subsidiary of United Arab Emirates investment group Istithmar. The alliance plans to open a total of 38 hotels, which will have between 80 and 120 rooms. The first eight hotels are scheduled to open next year in Dubai, Bahrain, Saudi Arabia, Oman and Morocco. Further 18 properties will be operational by the end of 2008 and the remaining 12 will be operational over the following three years, including eight in India.

Kempinski To Manage The Redeveloped Hotel Indonesia Return to Headlines
The luxury hotel, apartment and office complex currently being built at a cost of US$247 million on the sites of the former Hotel Indonesia and Hotel Inna Wisata on Jl Thamrin, Central Jakarta will be officially opened some time next year. The massive development, which will be called the Grand Indonesia Center, will boast a 270 room five-star hotel, a 192-unit apartment block, an office building and two shopping malls. The hotel will be named the Hotel Indonesia Kempinski, while the apartments will be called the Kempinski Residences. The state-owned Hotel Indonesia, completed in 1962, was the first five-star hotel in the country. Kempinski currently has nine projects in Asia, including seven in China, one in Thailand and Indonesia.

Absolute Share Price Performance, as at 5 May 2006
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