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Featured in this Asia Pacific Hospitality Newsletter - Week Ending 29 August 2008
Plaza Centres NV Partners With Elbit Imaging Limited For Three Projects In India
The Mall Group To Expand Into Hotel And Residential Development
Singapore’s Swissôtel Merchant Court For Sale
Four Hotel Sites Up For Auction In Hong Kong
Twenty Ramada Encore Hotels In South Korea By 2014
Beijing Welcomed 6.5 Million Tourists During The Olympics
Absolute Share Price Performance, As At 29 August 2008
Plaza Centres NV Partners With Elbit Imaging Limited For Three Projects In India Return to Headlines
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.
The Mall Group To Expand Into Hotel And Residential Development Return to Headlines
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.
Singapore’s Swissôtel Merchant Court For Sale Return to Headlines
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.
Four Hotel Sites Up For Auction In Hong Kong Return to Headlines
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.
Twenty Ramada Encore Hotels In South Korea By 2014 Return to Headlines
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.
Beijing Welcomed 6.5 Million Tourists During The Olympics Return to Headlines
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$525 during the Olympics.
Absolute Share Price Performance, as at 29 August 2008
Closing Share Price as at August 29 2008 August 22 2008 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings 4.70 4.55 3%
General Property Group 1.74 1.65 5%
Mirvac Group 2.89 2.68 8%
Ocean Capital Limited 0.42 0.40 5%
Thakral Holdings Group 0.75 0.76 -1%
Living and Leisure Australia Group 0.05 0.05
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 4.82 4.84
Dusit Thani Public Co Ltd 36.75 39.00 -6%
The Erawan Group Public Limited 3.40 3.40
Grande Asset Development 3.30 3.30
Laguna Resorts & Hotel Public Co Ltd 40.00 40.25 -1%
Minor International PCL 12.80 13.40 -4%
Hong Kong Stock Exchange (HK$)
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
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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