| Room rates in major Australian markets are expected
to increase 45% by 2010, spurred by high demand and limited supply. Despite
achieving marketwide occupancy of approximately 80%, analysts have indicated
the possibility of a new hotel development cycle to be unlikely due to the
increasing construction costs arising from high material and land prices
in Australia. By the end of the first quarter of 2007, average room rates
in Perth have increased by 16% to US$107, Canberra by 12.8% to US$109, Brisbane
by 9.8% to US$116 and Sydney by 8% to US$154. According to Simon McGrath,
Vice President of Accor Asia-Pacific Australia, hotels in the region have
witnessed a trend of declining contracted corporate and wholesale businesses,
which previously accounted for approximately 50% of total occupancy, to
higher room rate segments dependent on market demand like the leisure market.
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| IFA Hotels and Resorts has announced its partnership
with Indian Ocean Resorts Limited (IOR) to develop Zilwa, a US$450 million
mixed-use development comprising a five-star hotel, serviced residences,
a village marina and other facilities on Saint Anne Island, Seychelles.
Accessible via a 10-minute boat or helicopter ride from the main island,
Mahe, Zilwa will offer residents and guests a combination of luxurious nature
island living and marine environment experience with beach front ocean villas,
secluded hillside villas, marina apartments, penthouses, a private residence
club, infinity pools, spa facilities and a beach club, among other facilities. |
| Las Vegas's Wynn Resorts Limited has announced
its plans to increase its investment in Macau by US$600 million following
a 29.6% increase in operating profits to US$53.2 million at the Wynn Macau
casino in the second quarter of 2007. This comes in contrast to a June 2007
announcement that the company is withholding any further investments in
Macau amid competition from new supply and travel restrictions on mainland
China visitors imposed by the central government. Wynn Macau is expected
to open an additional 1,858 square metres of gaming space, a new restaurant
and an increased number of slot machines from 457 to 1,200 units by February
2008. In addition, Wynn will also expand its 600-room casino hotel with
the addition of retail shops, food and beverage outlets and two VIP gaming
areas. The construction cost for this expansion is expected to reach US$347.8
million and is scheduled to complete by 2010. |
| Local newspapers in Taiwan have reported that the
local government is planning to issue three casino permits in a bid to boost
the tourism industry. According to the Chairwoman of Taiwan's Council for
Economic Planning and Development (CEPD), the introduction of casinos serves
only as a tool to boost tourism. A proposal stipulating the guidelines of
the casino operations is currently being drafted by the CEPD and may include
maximum charter periods of 20 years, operation fees of 40% of total revenue
and 60% cap on foreign investment participation in the casino project. A
final version of the statute governing casino operations is expected to
be ready in October 2007. |
| Vietnam's Da Nang city authorities have officially
approved a US$325 million real estate and tourism project by Vietnam's VinaCapital
and is currently reviewing US-based KOR Group's US$200 million project,
both in the central city of Da Nang, Vietnam. VinaCapital Fund is to invest
US$325 million in the construction of the VinaCapital Square Urban Area
development in An Bac Hai Precinct, Son Tra Peninsula, Da Nang, Vietnam.
This development will be built on a nine-hectare site and includes two retail
malls, two four- or five-star hotels with 600 rooms each, a conference and
exhibition centre, more than 1,300 serviced apartments, residential villas
and an office building. KOR Group is currently in discussion with the local
authorities to develop a US$200 million tourism and hotel project on a 39-hectare
site in Hoa Hai Ward, Ngu Hanh Son District, Da Nang. KOR Group expects
the required approvals to be concluded in mid August 2007. |
| Carlson Hotels Worldwide has confirmed its plans
to develop a new Radisson Hotel in Pune Kharadi, India. Owned by Calista
Properties Private Limited, the hotel will be located next to Magarpatta
City, in the outskirts of the city of Pune and will be in close proximity
to large commercial information technology (IT) parks, retail malls, theatres,
restaurants and other tourist attractions. Scheduled to open by August 2008,
the 156-room hotel is expected to offer four food and beverage outlets including
a 24-hour coffee outlet, meeting and function space, gym, spa and other
facilities. With the growth of the IT industry in Pune, the hotel is expected
to attract domestic and international corporate and MICE guests. |
