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Featured in this Asia Pacific Hospitality Newsletter - Week Ending 12 September 2008
Preferred Hotels and Resorts Group Plans Major Expansion In India
Tourist Arrivals Grow Faster South India Than North India
Mandarin Oriental Bangkok Occupancy Falls In September and October 2008
Construction Begins For Langham Place Vineyard Resort And Spa, Waiheke Island, New Zealand
Franshion Properties To Boost Hotel Operation
Regal Hotels International Holdings Posted Interim Profit Of US$77 Million
Absolute Share Price Performance, As At 12 September 2008
 
Preferred Hotels and Resorts Group Plans Major Expansion In India Return to Headlines
The Preferred Hotels and Resorts Group has announced its plans to undertake major expansion in India to increase its existing number of accommodation rooms from 2,500 to 4,800 or 5,000 by the end of 2009. Currently, the group has 14 hotels in India and plans to add four more hotels by November 2008 before expanding the number to 33 by the end of 2009. Additionally, the group plans to start a hotel chain and residential management chain under its own brand, Preferred Hotels and Preferred Residences, respectively, by 2009.
 
Tourist Arrivals Grow Faster South India Than North India Return to Headlines
According to a study by India’s PHD Chamber, tourist arrivals in southern India, comprising Tamil Nadu, Kerala Karnataka and Andhra Pradesh, accounted for 45% of total tourist arrivals and tourist arrivals to south India had been increasing at a rate of 14% per annum between 2004 and 2007. On the other hand, northern India accounted only for 38% of total tourist arrivals in 2007, a decline from the 70% in 1980. The decline in arrivals is due mainly to obstacles such as high taxation, differential in tourism-related taxes, varying entry tax and parking charges at various states which hinder the growth in the tourism sector. To promote hotel investments, the study recommends government intervention to increase the supply of land and promote investor-friendly policies such as relaxing municipal and zone restrictions.
 
Mandarin Oriental Bangkok Occupancy Falls In September and October 2008 Return to Headlines
The 130-year-old Mandarin Oriental Bangkok is expected to post an occupancy rate of 50% for the months of September and October in 2008 and potentially US$3.5 million loss in revenue as a result of the political crisis in Thailand. Despite that, the hotel, which is managed by Hong Kong’s Mandarin Oriental Hotel Group (MOHG), is likely to achieve an occupancy rate of 67% in 2008 compared over 70% previously expected. According to the hotel’s GM, Kurt Wachtveitl, political coups have taken place in Bangkok before and he is confident travellers who are familiar with Thailand will still come. The hotel is also expected to continue with its US$14.6 million renovation plans to renovate the hotel’s rooms and upgrade its Thai restaurant. Separately, MOHG plans to expand from the existing 22 hotels to 40 hotels by 2010.
 
Construction Begins For Langham Place Vineyard Resort And Spa, Waiheke Island, New Zealand Return to Headlines
Construction works for the five-star US$50 million Langham Place Vineyard Resort and Spa located on Waiheke Island nearby Onetangi in the Hauraki Gulf of New Zealand is scheduled to commence in October 2008. Expected to be completed and open by 2010, the 78-key Tuscan-styled boutique resort will be built by Isola Estate and feature a ‘Chuan’ spa, a fitness centre, tennis courts, a food and beverage outlet, and conference and banquet facilities for up to 300 persons. The resort is the first Langham Place outside Asia, following the debut of Langham Places in Hong Kong and Thailand. In addition, Langham Place Hotel Beijing which offers 422 rooms and 55 apartments is expected to be opened in November 2009.
 
Franshion Properties To Boost Hotel Operation Return to Headlines
Shanghai’s developer, Franshion Properties (China) has announced its plans to raise its exposure to hotel and investment properties to achieve a balanced revenue mix. The plan will be enhanced by the US$1.6 billion acquisition of the Jin Mao Group which owns the Jin Mao Tower and several hotels in China. The first-half profit of Franshion reveals that the firm’s hotel operations rose by 10% to US$7.4 million.
 
Regal Hotels International Holdings Posted Interim Profit Of US$77 Million Return to Headlines
Regal Hotels International Holdings, the hotel management arm of Century City Group, posted a net profit of approximately US$77 million for the first six months in 2008, a 76% decline compared to the same period in 2007. The decline is due to the inclusion of a one-off gain of US$298 million from the sale of five hotels to Regal REIT in 2007. Average room rate grew by 9.7% in the first half of 2008, surpassing the industry average of 4.8% while revenue per available room (RevPAR) increased by 7.8%. Currently, Regal’s portfolio includes 31 houses in Regalia Bay, a luxury project in Stanley and a 545,000-square-metre mixed-used project in Chengdu, jointly developed with Cosmopolitan International Holdings.
 
Absolute Share Price Performance, as at 12 September 2008
 
Closing Share Price as at September 12 2008 September 5 2008 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings 4.67 4.80 -3%
General Property Group 1.94 1.79 8%
Mirvac Group 2.88 2.92 -1%
Ocean Capital Limited 0.40 0.42 -5%
Thakral Holdings Group 0.75 0.735 2%
Living and Leisure Australia Group 0.04 0.038 -5%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 5.10 4.70 9%
Dusit Thani Public Co Ltd 39.50 40.00 -1%
The Erawan Group Public Limited 3.40 3.22 6%
Grande Asset Development 3.36 2.62 28%
Laguna Resorts & Hotel Public Co Ltd 38.75 40.00 -3%
Minor International PCL 12.30 11.10 11%
Hong Kong Stock Exchange (HK$)
Miramar Hotel International Ltd 9.45 9.48
Regal Hotels International Holdings Ltd 0.24 0.275 -12%
Sino Hotels Holdings Ltd 3.55 3.60 -1%
The Hong Kong & Shanghai Hotels Ltd 10.20 10.62 -4%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.32 0.33 -3%
ART Management Pte Ltd 0.72 0.83 -13%
Banyan Tree Holdings Limited 1.01 1.03 -2%
CDL HTrust 1.16 1.16
Hotel Grand Central Ltd 0.81 0.79 3%
Hotel Plaza Ltd 1.41 1.36 4%
Hotel Properties Ltd 1.65 1.71 -4%
Mandarin Oriental International Ltd (US$) 1.79 1.67 7%
Shangri-La Asia Ltd 13.86 14.02 -1%
Stamford Land 0.41 0.45 -9%
 
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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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