Featured in this Asia Pacific Hospitality Newsletter - Week Ending 24 November 2006
Chinese Hotel Operator Markets US$300 Million IPO
Tourism Trusts Feel The Heat Of Listing
Kerzner To Spend US$2 Billion Over 10 Years On Integrated Resort
W To Launch Its First Retreat & Residences Product In Thailand
Australia's Sunland Group To Roll Out 15 Super-luxury Versace Resorts Around The World
Solare Hotels Introduces Third Brand
Absolute Share Price Performance, as at 24 November 2006


Chinese Hotel Operator Markets US$300 Million IPO Return to Headlines

Jinjiang International Hotels Development, which runs budget inns as well as landmark hotels like The Peace Hotel in Shanghai, will be the first pure Chinese hotel operator to list in Hong Kong. Jinjiang will reportedly sell about US$30 million worth of shares to the Starwood group and about US$20 million worth of stock to BOC Investment Group and Bank of East Asia chairman David Li. The deal will have the usual 90-10 split between institutional and retail investors. According to sources, the company is likely to be offered at a discount of at least 30% to its net asset value, which stands at about US$1.9 billion on a pre-money basis. In 2005, the company posted revenues of US$356 million and a net profit of US$40 million.


Tourism Trusts Feel The Heat Of Listing Return to Headlines

Major changes are afoot for the two listed tourism trusts managed by Mirvac's Hotel Capital Partners (HCP). Allan Vidor's Toga Group has announced a takeover proposal of the Tourism & Leisure Trust (TLT). Under the proposed scheme of arrangement Toga would acquire all of TLT’s stock at US$0.99 a unit - a price equivalent to the trust's NTA and an 8.2% premium to the weighted average unit price over the past three months. Meanwhile, HCP has flagged the potential to wind up the Australian Hotel Fund after selling its largest asset, the 210-room Peppers Fairmont Resort in New South Wales for US$34.95 million.


Kerzner To Spend US$2 Billion Over 10 Years On Integrated Resort Return to Headlines

Kerzner International, which has joined forces with CapitaLand to bid for the Sentosa integrated resort, will spend US$2 billion maintaining and refurbishing its US$5.28 billion Atlantis Sentosa project over the first 10 years if it wins the bid. Kerzner also said end November 2006, it plans to have 34 food and beverage outlets that would serve 48,000 meals daily at its resort. The outlets would take up 21,000 square metres of gross floor area and would be located throughout its resort. The company said its 34 F&B options would include cuisine from countries such as India, China, Japan, Australia, Spain, the UK, US, South Africa and Singapore.


W To Launch Its First Retreat & Residences Product In Thailand Return to Headlines
W Hotels, the world's fastest growing style hotel brand, announced plans to open its first hotel in Thailand. W Retreat & Residences-Koh Samui will be the brand's third retreat in the world, following W Maldives which opened in September 2006 and W Vieques, scheduled to open in late 2007. The newly built 70-villa W Retreat & Residences-Koh Samui will cater to upscale leisure travelers when it opens in late 2008. There will also be approximately 20 luxury residential villas on the grounds of the retreat that will be available for purchase. Starwood Hotels & Resorts Worldwide, Inc. the parent company of W Hotels, has entered into a management agreement with Amburaya Resorts to manage the hotel. The signing of W Retreat & Residences-Koh Samui marks the entry of the W brand into Thailand.

Australia's Sunland Group To Roll Out 15 Super-luxury Versace Resorts Around The World Return to Headlines
Gold Coast-based developer Sunland formalised an agreement with the House of Versace of Italy to roll out 15 super-luxury resorts around the world. It also announced a funds-management joint venture with acquisitive funds manager MFS Ltd to target the emerging markets in the Middle East. Sunland signed what was described as a global rollout agreement with Gian Carlo Di Risio, managing director of Gianni Versace Spa in Milan. Sunland would choose the location and build the hotels, under the Palazzo Versace brand, which it says will be valued at around US$800 million each. Sunland expanded into the UAE two years ago when it formed a joint venture, Emirates Sunland, with Emirates International. It will launch three large development projects in Dubai, including Palazzo Versace Dubai.

Solare Hotels Introduces Third Brand Return to Headlines
Solare Hotels & Resorts has announced the launch of their new upscale full service brand, "Loisir", to complement its existing portfolio of Chisuns and the Solare characterized as "Upscale hotels with local flavour". The well-appointed Loisir Hotels will offer a wide range of services, including banqueting and weddings, while incorporating a uniquely local style and atmosphere.

Absolute Share Price Performance, as at 24 November 2006
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