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Featured
in this Asia Pacific Hospitality Newsletter - Week Ending 24
October 2008 |
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| The
global economic slowdown has impacted the hospitality business
in India, especially the star-rated hotels, as occupancies decline
and food and beverage sales drop. According to market sources,
average occupancy rates across the hospitality industry have
declined by 10% since May 2008 as a result of the United States
subprime crisis that began in September 2007 and rising domestic
terrorism. During the off-peak period from May to October 2008,
hotels registered an average occupancy of 70%, compared to 75%
during the same period in 2007. In addition, foreign tourists
to India, who typically make up 70% to 80% of an Indian hotel’s
revenues, in 2008 are expected to decrease due to the bombing
incidents in several Indian cities. Currently, most hotels are
inclined to offer corporate discounts as high as 40% to 50%
to attract guests. Food and beverage revenues have also declined
due to lower room occupancies and lesser number of walk-in guests. |
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| Dubai’s
government-owned luxury hotel operator, Jumeirah Group, has
announced that it will move forward with its global expansion
plan which is expected to open 60 hotels by 2012, despite the
global financial crisis. Since the beginning of October 2008,
the group has signed management agreements for five new hotels,
namely Jumeirah Bali Resort in Indonesia, Jumeirah Maldives
Resort in the South Malé Atoll, Jumeirah Al Salam Resort
in Bahrain, Jumeirah Al Salam Yiti Resort in Oman and Jumeirah
Messilah Beach Hotel in Kuwait, which are scheduled to open
by 2011. Currently, the group manages 11 hotels and resorts,
and 19 properties are under construction. |
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| The
Federation of Hong Kong Hotel Owners has estimated hotels’
occupancy rates to witness a year-on-year decline of around
five percentage points in the fourth quarter of 2008 as business
visitors from the United States and Europe decline and meetings,
incentives, conventions and exhibitions (MICE) travellers are
expected to drop as well. However, hotels are expected to achieve
an overall occupancy rate of approximately 84% to 85%, close
to last year’s, as visitor arrivals were strong in the
first three quarters of 2008. |
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| Carlson
Hotels Worldwide (Carlson), which is scheduled to add 12,000
rooms in Asia Pacific, is expected to face a postponement in
15% of these planned additions while a further 30% of these
rooms may not materialise due to liquidity problems. However,
the slowdown in supply is likely to result in reduced competition
and hence, the outlook may not turn out as bleak. Moreover,
Carlson has added that domestic tourism in China and India are
likely to soften the impact of the decline in international
travel for their hotels. |
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| The
336-key Park Hotel Clarke Quay is scheduled to open in Singapore
by March 2009. With a total development cost of between approximately
US$85 million and US$100 million, the hotel will be Singapore-based
Park Hotel Group’s third in Singapore after Park Hotel
Orchard and Grand Plaza Park Hotel City Hall. The group also
announced the acquisition of its third hotel in Xi’an,
China and its first in Japan. The group plans to acquire another
ten to 12 more hotels within the next few years, mainly in the
Asia Pacific region. |
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| Sri
Lanka’s Kosgoda Beach Resort is set to undergo a US$95,000
refurbishment to be repositioned as a luxury boutique resort
after it was recently rebuilt for US$1.6 million. Built in 1984
and featuring 54 rooms, the hotel is expected to add a water
sports centre in addition to a room and a pool butler service.
The management is targeting high-end luxury travellers and expecting
a 25% increase in revenue after the additions. |
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Absolute
Share Price Performance, as at 24 October 2008 |
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Closing Share Price as at |
October
24 2008 |
October
17 2008 |
%
Change |
| Australia
Stock Exchange (ASX) |
| Amalgamated
Holdings |
4.20 |
4.25 |
-1% |
| General
Property Group |
1.15 |
1.09 |
6% |
| Mirvac
Group |
1.64 |
2.06 |
-20% |
| Ocean
Capital Limited |
0.40 |
0.35 |
14% |
| Thakral
Holdings Group |
0.64 |
0.72 |
-11% |
| Living
and Leisure Australia Group |
0.02 |
0.03 |
-8% |
| Bangkok
Stock Exchange (THB) |
| Central
Plaza Hotel Public Co Ltd |
3.98 |
4.14 |
-4% |
| Dusit
Thani Public Co Ltd |
18.90 |
20.00 |
-6% |
| The
Erawan Group Public Limited |
1.90 |
2.12 |
-10% |
| Grande
Asset Development |
2.00 |
2.20 |
-9% |
| Laguna
Resorts & Hotel Public Co Ltd |
24.00 |
23.60 |
2% |
| Minor
International PCL |
7.60 |
7.45 |
2% |
| Hong
Kong Stock Exchange (HK$) |
| Miramar
Hotel International Ltd |
5.06 |
6.65 |
-24% |
| Regal
Hotels International Holdings Ltd |
1.62 |
1.80 |
-10% |
| Sino
Hotels Holdings Ltd |
3.20 |
3.20 |
– |
| The
Hong Kong & Shanghai Hotels Ltd |
6.12 |
6.55 |
-7% |
| Singapore
Stock Exchange (S$) |
| Amara
Holdings Ltd |
0.17 |
0.19 |
-11% |
| ART
Management Pte Ltd |
0.47 |
0.44 |
6% |
| Banyan
Tree Holdings Limited |
0.53 |
0.58 |
-9% |
| CDL
HTrust |
0.64 |
0.70 |
-8% |
| Hotel
Grand Central Ltd |
0.48 |
0.50 |
-4% |
| Hotel
Plaza Ltd |
1.23 |
1.22 |
1% |
| Hotel
Properties Ltd |
0.94 |
1.02 |
-8% |
| Mandarin
Oriental International Ltd (US$) |
1.10 |
1.00 |
10% |
| Shangri-La
Asia Ltd |
8.00 |
8.00 |
– |
| Stamford
Land |
0.22 |
0.28 |
-100% |
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Return to Headlines |
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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. |
