Featured in this Asia Pacific Hospitality Newsletter - Week Ending 8 September 2006
Kempinski To Manage Three More New Hotels In Asia
Crown Hotel Investment Purchases The Thai Garden Resort
July Sets New Records In Visitor Arrivals For Singapore
Western Hotel Chains Build In Vietnam
Swissôtel Expands Its Presence In China
Australand Rides Crest Of Tourism Wave
Absolute Share Price Performance, as at 8 September 2006

Kempinski To Manage Three More New Hotels In Asia Return to Headlines

Kempinski Hotels, Europe's oldest luxury hotel group is expanding its portfolio in Asia with the announcement that it will manage three new hotels in the region. The group has signed agreements to manage hotels in Huizhou in China, Jakarta in Indonesia and Khao Lak in Thailand. Kempinski's portfolio in Asia currently includes 10 properties and, with the addition of these three new hotels, the group will open a further 19 hotels by end of 2009. Kempinski will manage a mixed-use complex located in Huizhou's new industrial area near to the new city government office. The newly built complex will feature a 380 room five star luxury hotel. At the heart of Jakarta, Kempinski is set to manage a five star luxury hotel, which will open end 2007 as part of Asia's largest shopping and entertainment complex. The hotel, originally the historic Hotel Indonesia, will be extensively remodelled before it reopens as a Kempinski hotel. The new Kempinski in Khao Lak will be the group's second property in Thailand in addition to the five star luxury hotel project in Bangkok, due to open in 2008.

Crown Hotel Investment Purchases The Thai Garden Resort Return to Headlines

Crown Hotel Investment Inc purchased the Thai Garden Resort in Pattaya, effective as of 4 September 2006. Crown Hotel Investment Inc takes total ownership control over the 181 unit resort hotel including the popular Moon River Pub & Restaurant located at North Pattaya Road. Crown Hotels Investment Inc informed that founding shareholders have been bought out of the company and that Crown Hotel Investments is now the sole owner of the Thai Garden Resort.

July Sets New Records In Visitor Arrivals For Singapore Return to Headlines

Singapores tourism industry hit record highs this July for monthly visitor arrivals and occupancy rates. Reviewing its half-year progress, the Singapore Tourism Board projects the industry will see historical highs for annual visitor arrivals compared to last year. In July, the tourism industry not only broke the 900,000 barrier, setting a record of 913,000 visitor arrivals but also saw average occupancy rates reaching a record high of 91% and average room rates increasing by 18.7% over July 2005. The first half of 2006 has been very positive for the tourism industry. Each month this year has shown a record number of visitor arrivals over the same months in previous years. The Peoples Republic of China, South Korea and the Philippines have consistently shown high visitor arrival growth over the same period last year thanks to successful marketing efforts and attractive carrier deals. The STB set annual targets for 2006 visitor arrivals at 9.4 million and tourism receipts at US$ 5.1 billion. The Board is confident the visitor arrival targets will be met, due to potentially higher visitor arrivals in the school holiday months of July, August and December and the Singapore 2006 meetings in September, which include the International Monetary Fund and World Bank Group Boards of Governors Annual Meetings.

Western Hotel Chains Build In Vietnam Return to Headlines
Six years after the USA lifted its trade embargo on Vietnam, western hotel chains are fueling a boom in high-end hotels. Hyatt last year opened its first hotel in the country in Ho Chi Minh City, formerly Saigon. InterContinental will open its first hotel in 2007 in Hanoi. Accor, with nine hotels, plans four more by 2008. Starwood entered the country in 2003 and operates two Sheratons. Marriott operates two hotels, and Hilton, one. From 2000 to 2005, the number of rooms in Vietnam grew by 72% to 95,700, according to the Vietnamese government. Western companies, for the most part, are building business hotels in big cities like Ho Chi Minh City and Hanoi. Strengthening business ties with the West and Asia are boosting demand for good hotels. In the first eight months this year, the number of visitors grew 10% from a year earlier to about 2.5 million. Nearly 80% of the available rooms in four hotels in Hanoi and Ho Chi Minh City owned by France-based Accor have been filled this year, largely by business travelers from Asia.

Swissôtel Expands Its Presence In China Return to Headlines
Swissôtel Hotels & Resorts signed an agreement today with Foshan Heng’an Real Estate Co., Ltd to manage a 208-room deluxe hotel development in Foshan, Guangdong Province. Scheduled for completion in mid 2008, Swissôtel Foshan will occupy 13 levels of the 50-storey Foshan International Plaza, a mixed-use development comprising retail shops, offices, apartments and hotel. Expected to be the tallest building in Foshan city when completed, the integrated complex is ideally located at the junction of Fenjiang West Road and Chengmentou West Road in the heart of the city’s business district. Swissôtel Foshan is owned by Foshan Heng'an Real Estate Co., Ltd, a subsidiary of Jing'an Chengjian who is also the owner of Swissôtel Grand Shanghai slated for opening in 2007.

Australand Rides Crest Of Tourism Wave Return to Headlines
It is understood that a syndicate, headed by Australand Property Group, has agreed a conditional purchase of Sydney's Crest Hotel, located on Darlinghurst Road in Kings Cross for close to US$ 55 million. The syndicate plans to retain the property as one of the few major hotels in the area. The deal will be a first for Australand, which has previously focused on residential, commercial and industrial sectors.

Absolute Share Price Performance, as at 8 September 2006
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