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Featured in this Asia Pacific Hospitality Newsletter - Week Ending 22 August 2008
Tokyo’s Luxury Hotel Business Grows Despite High Fuel Prices
Thailand’s Shinawatra Family Plans Luxury Project In Phuket
India’s Taj Hotels Resorts And Palaces Plans Luxury Resort In Andaman and Nicobar Islands
Sichuan To Spend US$11.6 Billion To Restore Tourism Industry
Wyndham To Open Nine Hotels In Japan
Miramar Plans To Expand In China After Rebranding Hong Kong Property
Absolute Share Price Performance, As At 22 August 2008
Tokyo’s Luxury Hotel Business Grows Despite High Fuel Prices Return to Headlines
Five-star hotels in central Tokyo witnessed higher occupancy growth during Japan’s Bon holidays from 13 August to 16 August 2008. Unlike the usual Bon holidays which tend to be a quieter period for central Tokyo hotels, in 2008, more families chose to spend their Bon holidays in Tokyo amidst surging fuel prices. During this period, there was strong demand for higher priced hotel rooms costing around US$454 or more per night, with hotels such as Hotel Okura Tokyo in Minato Ward and Royal Park Hotel posting higher occupancy rates at 60% and above. Conversely, the number of outbound Japanese tourists is expected to decline approximately 7% year on year.
Thailand’s Shinawatra Family Plans Luxury Project In Phuket Return to Headlines
Thailand’s Shinawatra family has announced plans to develop a luxury residential project comprising a hotel, condominium and villas at a sale price of approximately US$2 million to US$3 million per unit on a 256,000-square-metre land plot located on Mai Khao Beach in Phuket, Thailand by 2009. According to industry sources, this proposed development is not undertaken by the family’s property arm, SET-listed SC Asset Corporation Plc, and is estimated at an investment cost of at least US$296 million, excluding land cost. Other new developments on Mai Khao include Minor International Plc’s Anantara Phuket Resort and Spa which is expected to be launched by October 2008 and plans to develop a Villa Market to house supermarket and high-end restaurants by the end of 2008. A Dubai-based group has also acquired a 288,000-square-metre land parcel on Mai Khao for US$60 million and intends to further invest US$250 million to develop a Venice-style hotel. Additionally, a joint venture between local and foreign investors has plans to develop a five-star hotel and luxury villas on a 160,000-square-metre land plot.
India’s Taj Hotels Resorts And Palaces Plans Luxury Resort In Andaman and Nicobar Islands Return to Headlines
India’s Taj Hotels Resorts and Palaces has successfully bid for a 161,900-square-metre land plot, 38 kilometres away from Port Blair, the capital of Andaman and Nicobar Islands, a union territory of India, at an annual ground lease of US$574,000 for a period of 30 years and beyond. The offer was put up by the Andaman and Nicobar Islands Integrated Development Corporation with plans to build a luxury resort with around 100 rooms having either a beachfront or an elevated ocean view. According to industry estimates, the territory attracted 150,000 tourists in 2007 compared to 100,000 tourists in 2004, with the peak months from October to March.
Sichuan To Spend US$11.6 Billion To Restore Tourism Industry Return to Headlines
Sichuan Province, in southwestern China, has announced it is likely to invest approximately US$11.6 billion on a reconstruction plan featuring 300 projects affected during the major earthquake in May 2008. The funds, out of which 30% are provided by the central government, will be used to reconstruct scenic spots, roads, hotels and restaurants. Tourism officials have also revealed the plans for an ‘experimental tourist zone’, which is likely to consist of a tourist route along a fault line that runs through Wenchuan County, showcasing the earthquake ruins, a memorial in Yingxiu, a museum in Beichuan and a lake created during the earthquake in Tangjiashan.
Wyndham To Open Nine Hotels In Japan Return to Headlines
Wyndham Hotel Group (Wyndham) has announced that it has gone into a non-exclusive agreement with Green Hospitality Management Co Ltd of Tokyo to open nine hotels in Japan. The hotels, which will be developed and/or managed by Green Hospitality Management Co Ltd, will be operating under the Ramada and Days Inn brands. The development of the nine hotels is likely to start between 2008 and 2013. Currently, Wyndham franchises three hotels in Japan: the Ramada Sapporo, Ramada Osaka and Ramada Kansai International Airport.
Miramar Plans To Expand In China After Rebranding Hong Kong Property Return to Headlines
Hong Kong’s Miramar Hotel and Investment Company Limited (Miramar) plans to expand in China following the completion of the refurbishments and renaming of its flagship hotel in Hong Kong to ‘The Mira’. The refurbishments, which include a new façade, refurbished function spaces, redesigned restaurants and more spacious rooms, cost approximately US$50 million. According to the management, the refurbishments are likely to allow the hotel to increase its average room rate by 40% to approximately US$256. Miramar also commented that its low debt ratio is expected to enable substantial leveraging in its planned expansions into Beijing and Shanghai.
Absolute Share Price Performance, as at 22 August 2008
Closing Share Price as at August 22 2008 August 15 2008 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings 4.55 4.40 3%
General Property Group 1.65 1.72 -4%
Mirvac Group 2.68 2.76 -3%
Ocean Capital Limited 0.40 0.40
Thakral Holdings Group 0.76 0.78 -2%
Living and Leisure Australia Group 0.05 0.05 -4%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 4.84 4.90 -1%
Dusit Thani Public Co Ltd 39.00 37.75 3%
The Erawan Group Public Limited 3.40 3.40
Grande Asset Development 3.30 3.02 9%
Laguna Resorts & Hotel Public Co Ltd 40.25 41.00 -2%
Minor International PCL 13.40 14.20 -6%
Hong Kong Stock Exchange (HK$)
Miramar Hotel International Ltd 10.00 10.26 -3%
Regal Hotels International Holdings Ltd 0.31 0.34 -7%
Sino Hotels Holdings Ltd 3.50 3.60 -3%
The Hong Kong & Shanghai Hotels Ltd 10.44 11.00 -5%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.34 0.39 -13%
ART Management Pte Ltd 0.96 1.01 -5%
Banyan Tree Holdings Limited 1.10 1.18 -7%
CDL HTrust 1.15 1.16 -1%
Hotel Grand Central Ltd 0.79 0.83 -5%
Hotel Plaza Ltd 1.43 1.51 -5%
Hotel Properties Ltd 1.86 2.09 -11%
Mandarin Oriental International Ltd (US$) 1.68 1.62 4%
Shangri-La Asia Ltd 14.00 17.00 -18%
Stamford Land 0.47 0.50 -2%-6%
Return to Headlines
HVS Beijing
David Ling
HVS Hong Kong
Mark Keith & David Ling
HVS Mumbai
Manav Thadani
HVS New Delhi
Manav Thadani
HVS Shanghai
David Ling
HVS Singapore
David Ling
Disclaimer: Information provided above has been gathered from various market sources. HVS has not independently verified the accuracy of the information provided. Interested parties should not rely on the information as statement of facts and are advised to make their own independent checks to verify the information provided. For further information, please feel free to contact HVS Singapore.
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