Featured in this Asia Pacific Hospitality Newsletter - Week Ending 18 May 2007
Singapore CDL Hospitality Trusts To Buy Novotel Clarke Quay For US$133.1 Million
Hong Kong And Shanghai Hotels Sells Indonesia Asset For US$13.0 Million
Starwood To Build Two Hotels In Halong Bay
MDLR To Build Four Hotels For US$246 Million
Vietnam Needs More Five-Star Hotels
Mandarin Oriental To Manage New Hotel In Beijing
Absolute Share Price Performance, As At 18 May 2007


Singapore CDL Hospitality Trusts To Buy Novotel Clarke Quay For US$133.1 Million Return to Headlines
CDL Hospitality Real Estate Investment Trust (H-REIT) announced it will buy Novotel Clarke Quay for approximately US$133.1 million via the acquisition of the hotel's holding firm, Singapore Hotel Investment Holdings Co. The acquisition of the 25-storey hotel, which is situated on top of a six-storey shopping mall, is expected to be completed by June 2007. H-REIT reported that the projected annualized property yield of the Novotel Clarke Quay in 2007 is 5.5 percent compared to its current portfolio's projected property yield of 3.9 percent. H-REIT said with this acquisition, its asset size will grow by 20 percent to US$887.4 million, with the number of its hotel rooms in Singapore increasing to 2,324 from 1,926.

Hong Kong And Shanghai Hotels Sells Indonesia Asset For US$13.0 Million Return to Headlines
Hong Kong and Shanghai Hotels said it has entered into an agreement to sell a 20 percent interest in PT Ciputra Adigraha of Indonesia for US$13.0 million. It said the sale is in line with its program to sell non-core assets and focus its resources on developing and marketing its principal businesses, specifically ownership and management of upmarket hotels, commercial and residential properties in key destinations. The sales proceeds are to be used to reduce bank borrowings and as general working capital.

Starwood To Build Two Hotels In Halong Bay Return to Headlines
Visitors to Halong Bay are set for more accommodation options following an announcement in May 2007 by Starwood Hotels and Resorts Worldwide that it has reached an agreement with Royal International Corp. to develop two hotels in the bay. The 160-room Four Points by Sheraton hotel is expected to open in early 2008 while the 300-room Sheraton Halong Bay Resort is planned to open in 2010. In Vietnam, Starwood currently operates Sheraton Saigon Hotel and Towers and Sheraton Hanoi Hotel. Starwood currently operates 13 hotels in Thailand and in the Indochina region, with 11 more under development in Bangkok, Chiang Mai, Chiang Rai, Pattaya, Hua Hin, Koh Samui, Angkor and now Halong Bay.

MDLR To Build Four Hotels For US$246 Million Return to Headlines
The hotel room shortage in India is attracting new players to set up hotels. The latest to join the bandwagon is Gurgaon-based MDLR Group which will be opening four luxury hotels with a proposed investment of US$246 million (excluding land price) between 2007 and 2010. The group which has forayed into the aviation sector with MDLR Airlines, as well as real estate and multiplexes, will be opening four hotels in Manesar, Gurgaon (near Delhi), Shimla and Jaipur. While the Shimla property will start operations in the first half 2007, the properties located in the national capital region (NCR) -- the metropolitan region of New Delhi, are targeting to open before the 2010 Commonwealth games.

Vietnam Needs More Five-Star Hotels Return to Headlines
The Vietnam National Administration of Tourism (VNAT) has proposed major cities and tourism centres nationwide to allocate land for luxury hotel and resort projects. According to statistics of the VNAT's Hotel Department, Vietnam has only 90 four and five-star hotels totalling over 15,000 rooms, accounting for nine percent of the country's total star-rated rooms. The shortage of hotels in Vietnam in recent years has resulted in higher room prices. Vietnam which hosted nearly 3.6 million foreign visitors in 2006, welcomed 1.5 million international arrivals in the first four months of 2007, a year-on-year rise of 12.5 percent. The country has targeted about 5.5 million international arrivals and 25 million domestic visitors by 2010.

Mandarin Oriental To Manage New Hotel In Beijing Return to Headlines
Mandarin Oriental Hotel Group will manage a new hotel in Beijing opening in mid-2008, as announced by the group's Chief Executive Edouard Ettedgui. Ettedgui said the Beijing hotel will feature 203 rooms and is part of the capital's China Central Television (CCTV) development in the Chaoyang district. It is due to open just ahead of the 2008 Olympic Games. The hotel will be the group's third property under development in the mainland following new management contracts signed in Guangzhou and Hainan.

Absolute Share Price Performance, as at 18 May 2007
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