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Featured in this Asia Pacific Hospitality Newsletter - Week Ending 18 July 2008
Xen Hotels And Resorts To Expand Its Portfolio In Thailand
Vietnam’s Phu Yen Province Approves Licences For Six New Projects
Australia’s GPT Group To Divest Hotels And Resorts Portfolio
Indian Hotels In Major Expansion Plans Across India
Lack Of Interest For Huge Hotel Site In Singapore
Hong Kong and Shanghai Hotel Signs Heads Of Ageement With Qatari Diar Real Estate Company For Paris Hotel
Absolute Share Price Performance, As At 18 July 2008
Xen Hotels And Resorts To Expand Its Portfolio In Thailand Return to Headlines
The newly established Xen Hotels and Resorts (Xen) has announced its plans to operate 11 hotels and one condominium in Thailand by the end of 2008. Currently, Xen manages three hotels in Hua Hin, Kanchanaburi and Bangkok and intends to sign a franchise agreement and another five management agreements, namely three in Bangkok and one each in Pattaya and Khao Yai, by 2008. Additionally, Xen has secured the management of three hotel properties, including Xen Airport and Samudra Residences Hua Hin in 2009, as well as Samudra Retreat in 2010. The 36,800-square-metre Samudra project is to be developed by The Retreat Hua Hin Company, a subsidiary of Xen, in three phases at a budgeted cost of approximately US$45.2 million. Phases 1 and 2 are expected to be completed in October 2009 and offer 123 condominium units starting from approximately US$2,400 per square metre. The last phase of the development, which is scheduled to open in January 2010, is a 120-room hotel and 11 pool villas with an average room rate of approximately US$270.
Vietnam’s Phu Yen Province Approves Licences For Six New Projects Return to Headlines
Six new projects with an investment capital of approximately US$4.41 billion have been licensed in central Phu Yen Province, Vietnam. Among the new projects are four tourism projects which will be carried out in 2008 on an allocated land area of 9.3 million square metres. The biggest project is expected to be a US$4.34 billion high-grade tourism complex by Brunei’s New City Properties Development Company. Covering an area of approximately 5.65 million square metres and located in Tuy Hoa City, the project is scheduled for completion in 2017 and likely to feature luxury hotels and resorts, including 4,300 keys of five-star hotel rooms, 8,900 keys of four-star hotel rooms, 160 luxury villas, a 36-hole golf course and other facilities.
Australia’s GPT Group To Divest Hotels And Resorts Portfolio Return to Headlines
Australia’s Voyages Hotels and Resorts has announced that its parent company, GPT Group, will divest its hotels and resorts portfolio. The sale includes Australian resorts such as Tasmania’s Cradle Mountain Lodge, Queensland’s Lizard Island Resort, Northern Territory’s Ayers Rock Resort and El Questro Wilderness Park. The sales process is expected to commence shortly and there is no timeframe allocated for the completion of the sales process which is expected to continue into 2009. The group first invested in the Australian hotels and resorts sector with the acquisition of Ayers Rock Resort in 1997 and 7% of GPT Group’s current portfolio as tourism assets.
Indian Hotels In Major Expansion Plans Across India Return to Headlines
Roots Corporation, a subsidiary of Tata Group-linked Indian Hotels Company, has plans to set up 60 to 70 budget hotels under the Ginger brand across India by 2013. With investments totalling approximately US$51 million in 13 hotels thus far, the company is expected to commit US$23 million on seven to eight hotels in the fiscal year 2008/09. All the hotels are likely to average 100 rooms and they are expected to be developed in cities such as Gurgaon, Jaipur and Lucknow in addition to Surat, Hyderabad, Bangalore and Mysore where the projects are already under construction. The hotel chain is also pursuing franchising strategies for its Ginger brand as part of its expansion plans.
Lack Of Interest For Huge Hotel Site In Singapore Return to Headlines
A 17,700-square-metre hotel site located along Balestier Road in Singapore attracted just three bids when the tender closed on 16 July 2008. Property developer Hiap Hoe Group was the highest bidder, offering approximately US$54 million or US$127 per square foot of gross floor area. Market experts have attributed the lukewarm response to the current uncertain financial environment, a slowdown in growth of visitor arrivals to Singapore and rising construction costs. Another possible constraint was that the eventual developer will be required to build and manage a 4,600-square-metre park and public event space within the site. The site was initially expected by industry watchers to draw bids of between US$111 million to US$148 million.
Hong Kong and Shanghai Hotel Signs Heads Of Ageement With Qatari Diar Real Estate Company For Paris Hotel Return to Headlines
Hong Kong and Shanghai Hotels Limited (HSH) has entered into a heads of agreement (HOA) with Qatari Diar Real Estate Investment Company (‘QD’) for a proposed hotel development in Paris, France. Located along Avenue Kleber near to the renowned Arc de Triomphe, the building is currently owned by QD and is expected to be jointly developed into a Peninsula hotel, which is scheduled to commence operations by the middle of 2012. Under the HOA, HSH will acquire a 20% stake in the asset and is expected to commit approximately US$222 million, including its share of redevelopment costs.
Absolute Share Price Performance, as at 18 July 2008
Closing Share Price as at July 18 2008 July 11 2008 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings 4.24 4.40 -4%
General Property Group 1.56 1.56
Mirvac Group 2.30 2.11 9%
Ocean Capital Limited 0.40 0.41 -2%
Thakral Holdings Group 0.77 0.78 -1%
Living and Leisure Australia Group 0.04 0.03 12%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 5.65 5.90 -4%
Dusit Thani Public Co Ltd 38.75 38.75
The Erawan Group Public Limited 3.92 3.94 -1%
Grande Asset Development 3.30 4.00 -18%
Laguna Resorts & Hotel Public Co Ltd 44.00 46.50 -5%
Minor International PCL 12.90 13.20 -2%
Hong Kong Stock Exchange (HK$)
Miramar Hotel International Ltd 10.26 11.10 -8%
Regal Hotels International Holdings Ltd 0.37 0.39 -6%
Sino Hotels Holdings Ltd 3.48 3.83 -9%
The Hong Kong & Shanghai Hotels Ltd 11.96 11.64 3%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.47 0.49 -4%
CDL 10.52 11.22 -6%
Hotel Grand Central Ltd 0.90 0.91 -1%
Hotel Plaza Ltd 1.58 1.63 -3%
Hotel Properties Ltd 2.39 2.53 -6%
Mandarin Oriental International Ltd (US$) 1.80 1.91 -6%
Stamford Land 0.57 0.58 -2%
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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