| Featured in this Asia Pacific Hospitality Newsletter - Week Ending 27 October 2006 |
| China Jin Mao Group Confirms IPO Plans | Return to Headlines |
|
China Jin Mao Group confirmed media reports that it is considering an initial public offering. "We are working on a plan to go public, but it is still at the preliminary stage and much has yet to be settled," a spokeswoman said. The Shanghai-based property developer owns the tallest building in mainland China, Jin Mao Tower, and it also operates two deluxe hotels, Hilton Sanya Resort & Spa and Ritz-Carlton Sanya in Hainan province. The company was established in 1993 by ten corporate investors, including Sinochem Corp, China National Cereals, Oils & Foodstuffs Corp and China Minmetals Corp with registered capital of US$334 million. |
|
| IHG Signs Joint Venture Agreement In Japan | Return to Headlines |
|
InterContinental Hotels Group (IHG) signed a joint venture agreement with All Nippon Airways Company (ANA) for a majority share in ANA Hotels & Resorts. The joint venture, which will take effect from 1 December 2006, will create Japan's leading international hotel group with a total of 42 hotels throughout Japan. Re-branding of some of the hotels within the network will start in April 2007. “Japan is the second largest economy in the world and also the second largest travel and tourism economy,” said Patrick Imbardelli, IHG’s Chief Executive Asia Pacific. He added, "With 30 million Japanese expected to travel abroad each year by 2008, there are significant opportunities for our hotels worldwide to gain from the impact that this joint venture will have on our brand in Japan." |
|
| Vietnam's Hospitality Sector Draws Investors | Return to Headlines |
|
Major foreign companies are expressing increased interest in Vietnam's tourism prospects, which are expected to improve after the country accedes to the World Trade Organisation, according to the Ministry of Planning and Investment. Aware of the increasing flow of foreign tourists, several companies from Japan, the UK, South Korea and the US have sought investment opportunities in recent months. Along with major hotel chains and multinational companies, foreign investment funds are getting more involved in the tourism industry. According to the Ministry of Planning and Investment, of the total US$5.2 billion in foreign investment in Vietnam over the last nine months, tourism and services accounted for US$2.2 billion. |
|
| Dragonair Relaunches HK – Phuket Flights | Return to Headlines |
| Dragonair will re-open the Hong Kong-Phuket route in December 2006 with direct daily flights. The airline's CEO, Mr Kenny Tang, said: "We're delighted to be re-launching services to Phuket. Flights will operate on a daily basis with Airbus 320 aircraft, starting from 15 December 2006. "Following our integration with Cathay Pacific, and its ability to deliver overseas passengers to the Hong Kong hub, we now believe demand is at a level that can sustain a daily service." Dragonair is the latest in a growing list of carriers to resume services to the island following the tsunami pullout. | |
| China's Home Inns IPO Raises US$109 Million | Return to Headlines |
| Home Inns & Hotels rallied more than 60% on 26 October 2006 after pricing above its range as China deals took center stage both in the US and internationally. Home Inns & Hotels Management Inc. (HMIN) priced 3.95 million American depositary receipts at US$13.80 a share, raising US$109 million. The stock opened at US$22 and changed hands at US$21.96 for a gain of nearly 60%. Yunxin Mei, co-chairman of Home Inns, rang the opening bell at the Nasdaq to celebrate the IPO. Home Inns has quickly grown to 82 hotels in 26 cities in China. “The IPO will help the company finance its aggressive expansion plans as it opens new hotels and builds its brand in 100 cities in China,” Renaissance Capital said in its IPO of the week column. | |
| Queenland's Sea Temple Plans Hit The Rocks | Return to Headlines |
| Juniper has abandoned plans to build a US$133 million Sea Temple resort at Yorkey's Knob in Cairns and has also put another proposed Sea Temple on hold, canceling sales contracts of nearly US$69 million and refunding deposits to 109 buyers for Cairns project. Juniper Sales and Marketing Manager David Kortlang said that increased construction costs over the last 18 months and the shortage of labour in North Queensland were the main reasons for the decision on the Yorkey's Knob site. Mr Kortlang added that the Company will consider other opportunity available for the site. Juniper opened two Sea Temple resorts in north Queensland, one at Port Douglas in May 2006 and another at Palm Cove in August 2004. | |
| Absolute Share Price Performance, as at 27 October 2006 |
