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Featured
in this Asia Pacific Hospitality Newsletter - Week Ending 29
August 2008 |
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Plaza Centres NV Partners With Elbit Imaging Limited For Three
Projects In India |
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to Headlines |
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Plaza
Centres NV (Plaza) has announced its joint venture with Israel’s
Elbit Imaging Limited (Elbit) for developing three projects
in three Indian cities, namely Bangalore, Chennai and Kochi,
with a combined development budget of approximately US$3.4 billion.
Through the joint venture, Plaza is expected to acquire a 47.5%
stake in Elbit India Real Estate Holdings Limited, which owns
around 50% to 80% stake in the three projects together with
the Indian partners. Currently in the planning and design stages
and scheduled to be completed by 2009, the three projects are
expected to meet the demand for high-end residential accommodation,
and five-star and four-star hotels, as well as western-style
retail complexes in India. |
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Thailand
shopping mall operator, The Mall Group, is expected to expand
its business into hotel and residential development in 2009.
The new development projects are likely to be medium-sized investments
aimed at complementing the group’s core business in retail
and shopping malls. These projects will be particularly designed
to fit flagship locations such as Bangkok’s Tha Phra and
Bang Khae areas, where hotel and residential complexes could
be added next to the existing retail and shopping centres. Currently,
the group operates shopping malls in prime areas of Bangkok,
including Ramkhamhaeng, Ngarmwongwan, Tha Phra, Bang Khae, Bang
Kapi, Sukhumvit (The Emporium) and Rama I (Siam Paragon), as
well as in Nakhon Ratchasima. |
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The
476-room Swissôtel Merchant Court, located near Clarke
Quay in Singapore, has been put up for sale by global tender.
Given the growth potential in Singapore’s hospitality
sector and the fact that Singapore hotels are typically tightly
held by investors, the sale presents a rare opportunity for
global investors. LaSalle Investment Management which currently
owns the hotel bought it for about US$175 million to US$210
million in late 2006 from Fairmont Raffles Hotels International.
The hotel has a remaining lease term of 85 years and is subject
to a long-term management agreement with Swissôtel Hotels
and Resorts. The hotel features three food and beverage outlets,
conference facilities and an Amrita Spa with a fitness centre.
The eventual purchaser has the opportunity to further develop
the property through redevelopment of the prime riverfront space
overlooking Clarke Quay. |
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Hong
Kong’s Land Department has put up four hotel sites for
sale, worth an estimated combined US$774 million, from the land
application list. The sites, which are located in Kwun Tong,
Kowloon Bay and Tin Shui Wai, are expected to cost between approximately
US$1,647 and US$4,133 per square metre (psm). The Kwun Tong
site is likely to fetch the highest price, up to US$351 million
or US$4,133 psm, due to its waterfrontage and large development
scale. The 6,600-square-metre site and the 2,579-square-metre
site in Kowloon Bay, which can potentially hold a combined total
of 2,371 hotel keys, are expected to cost approximately US$3,444
psm. The Tin Shui Wai site, which can hold approximately 560
rooms, is worth around US$43 million or US$1,647 psm. |
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Wyndham
Hotel Group (Wyndham) has announced that it has entered into
an exclusive agreement with South Korean company AT Hotels Management
to open 20 Ramada Encore hotels in South Korea over the next
six years. AT Hotels Management will develop and manage the
hotels, which are expected to range in size from 80 to 200 keys.
The 20 hotels will almost triple the brand’s presence
in South Korea. AT Hotels Management has commented that Ramada
Encore hotels ideally cater to the mid-market segment within
the country. |
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According
to official statistics, Beijing recorded 6.52 million visitor
arrivals, including 382,000 international arrivals, during the
Summer Olympics held between 8 August and 24 August 2008. Tourist
attractions in the city earned approximately US$23 million in
total revenue during this period while key attractions such
as the Great Wall, Summer Palace and Forbidden City recorded
more than 230,000 visitors each. Beijing’s five-star hotels
registered 81% in occupancy with an average room rate of US$525
during the Olympics. |
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Absolute Share Price Performance, as at
29 August 2008
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Closing Share Price as at |
August
29 2008 |
August
22 2008 |
%
Change |
Australia
Stock Exchange (ASX) |
Amalgamated
Holdings |
4.70 |
4.55 |
3% |
General
Property Group |
1.74 |
1.65 |
5% |
Mirvac
Group |
2.89 |
2.68 |
8% |
Ocean
Capital Limited |
0.42 |
0.40 |
5% |
Thakral
Holdings Group |
0.75 |
0.76 |
-1% |
Living
and Leisure Australia Group |
0.05 |
0.05 |
– |
Bangkok
Stock Exchange (THB) |
Central
Plaza Hotel Public Co Ltd |
4.82 |
4.84 |
– |
Dusit
Thani Public Co Ltd |
36.75 |
39.00 |
-6% |
The
Erawan Group Public Limited |
3.40 |
3.40 |
– |
Grande
Asset Development |
3.30 |
3.30 |
– |
Laguna
Resorts & Hotel Public Co Ltd |
40.00 |
40.25 |
-1% |
Minor
International PCL |
12.80 |
13.40 |
-4% |
Hong
Kong Stock Exchange (HK$) |
Miramar
Hotel International Ltd |
9.70 |
10.00 |
-3% |
Regal
Hotels International Holdings Ltd |
0.30 |
0.31 |
-3% |
Sino
Hotels Holdings Ltd |
3.60 |
3.50 |
3% |
The
Hong Kong & Shanghai Hotels Ltd |
11.18 |
10.44 |
7% |
Singapore
Stock Exchange (S$) |
Amara
Holdings Ltd |
0.34 |
0.34 |
– |
ART
Management Pte Ltd |
0.88 |
0.96 |
-8% |
Banyan
Tree Holdings Limited |
1.00 |
1.10 |
-9% |
CDL
HTrust |
1.15 |
1.15 |
– |
Hotel
Grand Central Ltd |
0.80 |
0.79 |
1% |
Hotel
Plaza Ltd |
1.41 |
1.43 |
-1% |
Hotel
Properties Ltd |
1.78 |
1.86 |
-4% |
Mandarin
Oriental International Ltd (US$) |
1.76 |
1.68 |
5% |
Shangri-La
Asia Ltd |
14.72 |
14.00 |
5% |
Stamford
Land |
0.47 |
0.47 |
– |
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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. |