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Featured in this Asia Pacific Hospitality Newsletter - Week Ending 17 October 2008
The Philippines’ Bagong Nayong Pilipino Entertainment City To Begin Construction In Early 2009
The 800th Courtyard By Marriott Hotel To Open In Shanghai, China
Hong Kong To Sign Visa-Free Access Agreement With Russia
Financial Crisis Expected To Slow Room Supply In Asia Pacific
Occupancy In Macau Declined By 7.1 Percentage Points In August
Malaysia Accommodated 10.31 Million International Visitors In First Six Months Of 2008
Absolute Share Price Performance, As At 17 October 2008
 
The Philippines’ Bagong Nayong Pilipino Entertainment City To Begin Construction In Early 2009 Return to Headlines
Construction for the Bagong Nayong Pilipino Entertainment City (Bagong Nayong) located in Manila, the Philippines, is expected to begin in early 2009 on a 1.5-million-square-metre reclaimed land. Governed by the country’s gambling regulator, Philippine Amusement and Gaming Corporation (PAGCOR), Bagong Nayong is expected to feature several casinos. Currently, three private investors are attracted to invest in Bagong Nayong and have put up non-refundable deposits of US$100 million each. These include a joint venture between Malaysia’s Genting International and a local property firm to develop a US$1 billion theme park on a 400,000-square-metre site; Japan’s Aruze Corporation which plans to build a 2,000-room hotel-casino, Okada Resort Manila Bay, on a 300,000-square-metre site which will include an oceanarium and a ferris wheel; and the Philippines’ SM Investments which has a 300,000-square-metre site. These three projects are expected to open partially by the end of 2010.
 
The 800th Courtyard By Marriott Hotel To Open In Shanghai, China Return to Headlines
Marriott International has announced the opening of the 800th Courtyard by Marriott hotel, Courtyard Shanghai Xujiahui, in Shanghai, China by December 2008. Owned by Tibet Hotel Company, the hotel features 364 guestrooms, including 61 executive floor rooms, 18 suites and a Chairman Suite, an indoor pool, a 200-square-metre fitness centre, the signature MoMo café and two Chinese restaurants.
 
Hong Kong To Sign Visa-Free Access Agreement With Russia Return to Headlines
According to Hong Kong Special Administrative Region (HKSAR) Chief Executive, Donald Tsang, Hong Kong is expected to sign a mutual visa-free access agreement with Russia to boost trade and tourism development between the two countries. In addition, HKSAR is expected to conclude an agreement with Macau Special Administrative Region to streamline clearance for residents travelling between Hong Kong and Macau with measures likely to take place in mid-2009. Travelling between HKSAR and Taiwan is also expected to become more convenient with the abolishment of the restriction which limits one person to two iPermit applications within each 30-day period. The limit of stay in Hong Kong is also extended from 14 days to 30 days for holders of iPermits and multiple-entry permits.
 
Financial Crisis Expected To Slow Room Supply In Asia Pacific Return to Headlines
According to industry players, the current financial environment is expected to delay the opening of approximately 90,000 rooms in Asia Pacific due to the credit crunch and rising costs. This figure forms approximately 18% of the 500,000 new rooms planned by the world’s five largest hotel chains. Mainland China is expected to account for 40% of this new inventory in the region. In terms of performance, revenue growth is likely to slow down to single digits from 18% in 2007. In the first eight months of 2008, hotels in Asia Pacific registered an 11.6% growth in revenue per available room (RevPAR) while countries such as Japan, Thailand and Indonesia recorded growth of between 10% and 15%. The region is expected to witness a sharp decline in RevPAR growth in the fourth quarter of 2008.
 
Occupancy In Macau Declined By 7.1 Percentage Points In August Return to Headlines
According to the Statistics and Census Service (DSEC) in Macau, the average occupancy of hotels declined by 7.1 percentage points to 76.7% in August 2008, with the five-star hotels recording 80.7%. The total supply of rooms grew by 5.1% to 16,577 rooms in August 2008 as compared to August 2007. In the first eight months of 2008, the total number of accommodated arrivals registered approximately 4.32 million, reflecting an increase of 17.6% over the same period in 2007. The number of accommodated arrivals made up 43.2% of total visitor arrivals during this period as compared to 42.7% during the corresponding period in 2007.
 
Malaysia Accommodated 10.31 Million International Visitors In First Six Months Of 2008 Return to Headlines
According to an official national occupancy rate study, there were a total of 10.31 million accommodated international visitors and 17.96 million accommodated domestic visitors in Malaysia in the first six months of 2008. Kuala Lumpur recorded the highest accommodated international visitors at 2.74 million, followed by Pahang, Perak, Penang and Johor. In terms of accommodated domestic visitors, Pahang registered the highest volume at 4.18 million visitors, followed by Kuala Lumpur, Perak, Johor and Sarawak. It was noted that 60% of the total visitors stayed over at ecotourism destinations such as Genting Highlands in Pahang.
 
Absolute Share Price Performance, as at 17 October 2008
 
Closing Share Price as at October 17 2008 October 10 2008 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings 4.25 4.37 -3%
General Property Group 1.09 1.19 -8%
Mirvac Group 2.06 2.03 1%
Ocean Capital Limited 0.35 0.35
Thakral Holdings Group 0.72 0.74 -3%
Living and Leisure Australia Group 0.03 0.03
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 4.14 3.96 5%
Dusit Thani Public Co Ltd 20.00 22.00 -9%
The Erawan Group Public Limited 2.12 2.26 -6%
Grande Asset Development 2.20 3.20 -31%
Laguna Resorts & Hotel Public Co Ltd 23.60 23.00 3%
Minor International PCL 7.45 6.95 7%
Hong Kong Stock Exchange (HK$)
Miramar Hotel International Ltd 6.65 7.40 -10%
Regal Hotels International Holdings Ltd 0.18 0.16 10%
Sino Hotels Holdings Ltd 3.20 3.54 -10%
The Hong Kong & Shanghai Hotels Ltd 6.55 6.10 7%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.19 0.22 -14%
ART Management Pte Ltd 0.44 0.53 -17%
Banyan Tree Holdings Limited 0.58 0.62 -6%
CDL HTrust 0.70 0.66 5%
Hotel Grand Central Ltd 0.50 0.58 -14%
Hotel Plaza Ltd 1.22 1.15 6%
Hotel Properties Ltd 1.02 1.05 -3%
Mandarin Oriental International Ltd (US$) 1.00 1.20 -17%
Shangri-La Asia Ltd 8.00 8.48 -6%
Stamford Land 0.28 0.28
 
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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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