Featured in this Asia Pacific Hospitality Newsletter - Week Ending 22 September 2006
New Airport Hotel To Be Opened By 2009
Marriott Plans Third Shanghai Renaissance Hotel
KHI Builds Raffles In Phang Nga, Next To Phuket, Thailand
Accor's Renaissance In Australia
Major Players Divide Local Timeshare Loot
Shanghai Gets Last Le Méridien
Absolute Share Price Performance, as at 22 September 2006

New Airport Hotel To Be Opened By 2009 Return to Headlines

China Airlines (CAL), Taiwan's largest air carrier, has obtained the right to build a new hotel at Taoyuan International Airport, the country's main gateway. CAL plans to rebuild a 360-room, four-star hotel on the site in three years and will get an international hotel chain to manage the new hotel. If all goes smoothly, the new hotel will begin operations in 2009 to coincide with CAL's 50th anniversary. The hotel's construction is part of a build-operate-transfer (BOT) contract that was signed between CAL and the Civil Aeronautics Administration (CAA) under the Ministry of Transportation and Communications. Under the BOT contract, CAL will invest a total of US$132 million to construct an operation centre on a 47,747-square metre plot at Taoyuan International Airport, formerly known as Chiang Kai-shek International Airport, in Taoyuan County, some 40 kilometres south of Taipei. Construction of the centre will take three years and it will be in operation for 47 years before the government takes over ownership, a CAL spokesman said. CAL plans to move its corporate head office and its crew training and dispatch centre to the new complex nearby the new airport hotel. The airline said it expects to relocate operations to Taoyuan International Airport after 2009.

Marriott Plans Third Shanghai Renaissance Hotel Return to Headlines

Marriott International will manage its third Renaissance-branded hotel in Shanghai under an agreement reached with Shanghai Yuyuan Hotel Development Company. The property will be called the Renaissance Shanghai Yuyuan Hotel and is expected to open in 2008. It will join two other Renaissance hotels in the city, the Renaissance Shanghai Pudong Hotel and the Renaissance Shanghai Yangtze Hotel, and will be the ninth Renaissance-branded hotel in China. The Renaissance Shanghai Yuyuan Hotel will be located on Henan South Road in the Huangpu district of Puxi and will be targeted to the individual corporate and leisure traveller. Nearby is Yuyuan Park, one of the main tourist attractions in Shanghai. In addition to the two Renaissance properties now in operation in Shanghai, the Marriott International portfolio is currently represented in the city by the JW Marriott Hotel Shanghai, the Shanghai Marriott Hotel Hongqiao, the Shanghai Marriott Executive Apartments and the Courtyard by Marriott Pudong.

KHI Builds Raffles In Phang Nga, Next To Phuket, Thailand Return to Headlines

Kingdom Hotel Investments will develop the Raffles Phang Nga Resort and Residences at an estimated cost of US$115 million. Land was recently acquired through a joint venture company, 80% owned by KHI and 20% by European Hotels Corporation. The proposed Raffles Phang Nga Resort and Residences will start operations in 2009, with 150 rooms and 25 luxury residential villas located on 240,000 square metres of prime freehold land. It is anticipated that standard rooms will contain a gross area in excess of 100 square metres per unit. The built up areas of the villas will be approximately 500 square metres per villa. The site is populated with mature palm trees and overlooks the Andaman Sea. It includes an 80,000-square-metre fresh water lake and benefits from approximately 400 metres of direct beachfront. The proposed resort is located 35 minutes drive from Phuket International Airport. Residential villas will be offered for sale during the development period on a long-term leasehold basis. KHI is targeting to invest US$12 million for an 80% ownership stake in the proposed development. KHI will seek debt financing to fund approximately 50% of the total project. The sale of the villas during the development period will contribute to the funding of the project.

Accor's Renaissance In Australia Return to Headlines
Hotel management company Accor wants to take on the Gold Coast's biggest tourist fish at its own game, after beating it to the management rights for one of the region's flagship properties. The plans follow Accor after winning a tender for the unit management rights at the Raptis Group's Towers of Chevron Renaissance, ending the tenure of Surfers Paradise based S8, Australia's largest travel company. Accor is promising better returns for unit owners and more visitors to the Coast as it looks to use the granting of the rights to mount a serious push into the lucrative unit management market, dominated by S8.

Major Players Divide Local Timeshare Loot Return to Headlines
It is one of the fastest growing sectors in the tourism market, but timeshare in Australia still remains concentrated among two major players: Trendwest South Pacific and Accor Premier Vacation Club. With an estimated increase in timeshare owners of 10 per cent a year over the past five years, the industry is attracting buyers who spend an average of US$12,500 on their initial timeshare purchase. The Australian Timeshare and Holiday Ownership Council predicts the ownership base of 125,700 will more than double over the next decade. Accor Asia Pacific's recent buyout of APVC joint-venture partner Becton for approximately US$30 million means the company is now owned outright by the accommodation giant with plans for better links with Accor's hotel business.

Shanghai Gets Last Le Méridien Return to Headlines
Shanghai's Le Royal Méridien will be the last in the world to bear the Le Royal Méridien branding, according to general manager, Mr Akram Touma. The new 770-room luxury property, located next to People's Square on Nanjing Road, features the city's largest presidential suite of 377 square metres, more than 2,000 square metres of meeting space, and 10 food and beverage outlets. Starwood Asia-Pacific vice-president and area manager, Mr Qian Jin, said the group would be opening five to six Le Méridien hotels - a notch lower than Le Royal Méridien - in China over the next two years. There are three Le Méridiens in China.

Absolute Share Price Performance, as at 22 September 2006
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