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Featured in this Asia Pacific Hospitality Newsletter - Week Ending 23 January 2009
Mainland Chinese Outbound Travel Increases During Lunar New Year Festival
Mandarin Oriental In Macau Sold For US$206 Million
Major Hotel Operators To Continue Expansion Plans In India
Tourist Arrivals Increased By 7.5% In Cambodia
Queenstown Lakes, New Zealand Accommodation Statistics Reflect Tourism Decline
New Highlights for CHIS – Part II
Absolute Share Price Performance, As At 23 January 2009
Mainland Chinese Outbound Travel Increases During Lunar New Year Festival Return to Headlines
Despite the global financial recession, mainland Chinese outbound travel has increased during the 2009 Lunar New Year festive period, attributed mainly to the appreciation of the Chinese yuan which resulted in lower hotel and flight prices, discounted tour packages and luxury shopping deals in destinations such as the United States, Europe, Australia and Japan. According to China National Tourism Administration (CNTA), 46 million mainland Chinese tourists travelled overseas in 2008, a 12% increase compared to 2007. In spite of the current recession, CNTA forecast that outbound travel would increase by 9% to 50 million tourists in 2009 as consumers reach out for more cost-effective travel and family tours. Based on a survey carried out by Nielson Company and Pacific Asia Travel Association (PATA), mainland Chinese travellers spend an average of US$1,359 per luxury good in Europe, the highest amount across all destinations.
Mandarin Oriental In Macau Sold For US$206 Million Return to Headlines
Mandarin Oriental International and Shun Tak Holdings have agreed to divest their respective 50% interest in the 416-room Mandarin Oriental, Macau, to Sociedade de Turismo e Diversoes de Macau (STDM) for approximately US$206 million. As part of the deal, the two sellers will have the right to share any incremental value if the property is redeveloped or sold to a third party in the future. The transaction will also end Mandarin Oriental’s management of the 25-year-old hotel as STDM is looking to rebrand the hotel. A transition agreement will allow Mandarin Oriental to operate the hotel for up to two years from completion of the deal, which is scheduled for 31 May 2009.
Major Hotel Operators To Continue Expansion Plans In India Return to Headlines
Despite the global economic slowdown, leading global hotel operators such as Marriott International (Marriott), Global Hyatt Corporation (Hyatt) and Carlson Hotels (Carlson) are set to continue their expansion plans in India. Marriott is scheduled to add seven new hotels in 2009 and targeting a total of 14 hotels by 2012. Hyatt, which currently has six operational hotels in India, plans to add 20 new hotels including its new brand, Hyatt Place, by 2013. Six of the new Hyatt Place hotels are likely to be completed by 2011 in a joint venture with Emaar MGF. Similarly, Carlson is looking to add 50 properties totalling approximately 6,000 rooms to its India portfolio by 2011.
Tourist Arrivals Increased By 7.5% In Cambodia Return to Headlines
Total tourist arrivals in Cambodia recorded 2.15 million in 2008, reflecting a 7.5% growth from the two million in 2007. 2008 was also the first time that the growth in tourist arrivals has been lower than 18% since 2003. According to the Cambodian tourism authorities, tourist arrivals were up by 10–11% percent in the first half of 2008 but declined significantly to grow by 3% in the second half of the year after the Thailand political crisis and global financial crisis hit. The authorities are forecasting a 5–7% growth in tourist arrivals for 2009.
Queenstown Lakes, New Zealand Accommodation Statistics Reflect Tourism Decline Return to Headlines
Visitor arrivals to Queenstown Lakes, New Zealand recorded a 5% decline from 113,804 arrivals in November 2007 to 95,432 arrivals in November 2008. Despite the falling arrival numbers since April 2008, the hotel room supply increased by 5.2% in 2008 with accommodation arrivals dropping by 16.1% in November 2008. The increase in hotel rooms was due mainly to the surge in visitor accommodation in mid-2007 which drove investors to buy into individual hotel rooms under the strata schemes, whereby the hotel rooms were in turn managed for a return. According to the Motel Association, the motels in areas such as Southland were not as affected as the hotel segment. However, motels at tourist spots like Queenstown and Rotorua witnessed a reduction in tour groups.
New Highlights for CHIS – Part II Return to Headlines

Learn From the Industry Experts – Asset Management

Asset management is the cornerstone to realising the potential of your hotel investments. It requires an appreciation and understanding of your hotel real estate, the operational dynamics, aspects that drive revenue, profit margin and your investment value.

  • Revenue drivers
  • Effective cost management
  • Selecting your hotel operator and management team
  • Sales and marketing programme
  • Talent retention
  • Driving the bottom-line
  • Asset enhancement measures

The Asset Management Series will be led by Michel van der Hoeven, Senior Vice President – Development of Minor International PCL, the largest publicly traded hospitality company in Thailand. Mr van der Hoeven is no stranger to hotel and resort development in Asia. He has been with both Minor and Six Senses previously, responsible for managing luxury resorts and hotels in Singapore, Thailand and Vietnam. Prior to re-joining Minor, Mr van der Hoeven was regional director and shareholder of holistic resort operator Sanctuary Resorts for which he was instrumental in developing their resorts in Bali, Cambodia and Thailand.

Save the date and sign up today! For the registration form and more information, visit www.chinahotelsummit.com

Entering its fifth installment, CHIS is the most established and successful hotel investment conference in China. It is widely recognised as an international level event held in Shanghai annually and attended by over 600 industry leaders, owners, developers, investors, financiers and professionals from China and 22 other countries. Co-hosted by Beijing International Studies University (BISU), Beijing Hospitality Institute (BHI) and HVS, the 2009 event is expected to be an important platform for key industry players with an interest in China.

For other information and queries, please contact:

Adeline Phua
Tel: +65 62934415 Ext 17
Fax: +65 62935426
Email: aphua@hvs.com or chis@chinahotelsummit.com

Absolute Share Price Performance, as at 23 January 2009
Closing Share Price as at 23 January 2009 16 January 2009 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings 4.65 4.60 1%
General Property Group 0.74 0.85 -12%
Mirvac Group 1.19 1.35 -12%
Ocean Capital Limited 0.30 0.30
Thakral Holdings Group 0.47 0.45 3%
Living and Leisure Australia Group 0.02 0.03 -8%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 3.12 3.20 -3%
Dusit Thani Public Co Ltd 19.10 19.90 -4%
The Erawan Group Public Limited 1.23 1.26 -2%
Grande Asset Development 2.18 2.18
Laguna Resorts & Hotel Public Co Ltd 25.00 24.50 2%
Minor International PCL 7.35 7.85 -6%
Hong Kong Stock Exchange (HK$)
Miramar Hotel International Ltd 5.28 5.11 3%
Regal Hotels International Holdings Ltd 1.88 1.90 -1%
Sino Hotels Holdings Ltd 2.65 2.78 -5%
The Hong Kong & Shanghai Hotels Ltd 5.81 5.96 -3%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.20 0.23 -13%
ART Management Pte Ltd 0.53 0.54 -2%
Banyan Tree Holdings Limited 0.47 0.45 4%
CDL HTrust 0.64 0.65 -2%
Hotel Grand Central Ltd 0.52 0.51 2%
Hotel Plaza Ltd 1.00 1.10 -9%
Hotel Properties Ltd 1.05 1.09 -4%
Mandarin Oriental International Ltd (US$) 0.80 0.91 -12%
Shangri-La Asia Ltd 8.62 9.00 -4%
Stamford Land 0.25 0.25
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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