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Featured in this Asia Pacific Hospitality Newsletter - Week Ending 17 July 2009
Chinese Investors Interested In Thai Hotels
Sun Capital Management Corporation Unveils Paramount Resort Osaka Plan
Concorde Hotel Kuala Lumpur Undergoes US$11.4 Million Facelift
Leela To Add Seven New Properties Across India By 2013
Macau's Hotels At Their Lowest Levels Since SARS Period
Taiwan Forecast To Receive 700,000 Mainland Chinese Tourists In 2009
Absolute Share Price Performance, As At 17 July 2009
Chinese Investors Interested In Thai Hotels Return to Headlines
Chinese investors are expected to invest in 15 to 16 four-star or five-star hotels in Thailand for approximately US$35 million to US$44 million each as the owners of these hotels are facing financial difficulties amid the ongoing global economic downturn and Influenza A(H1N1) flu epidemic which have resulted in drastic decline in the hotels' revenues. Thailand's Board of Investment has been assigned to negotiate with the Chinese investors on their investment in the country's hospitality sector.
Sun Capital Management Corporation Unveils Paramount Resort Osaka Plan Return to Headlines
Osaka-based Sun Capital Management Corporation has announced plans to collaborate with an affiliate of US movie company Paramount Pictures Corporation to develop a theme park, Paramount Resort Osaka, in Suita, Osaka Prefecture, Japan. Located on the site of the unsuccessful Expoland amusement park, the theme park is expected to comprise entertainment facilities and a five-star hotel. The plan for the theme park development is envisaged as ‘the possible core of Osaka's entertainment city initiative' according to Osaka Governor, Toru Hashimoto.
Concorde Hotel Kuala Lumpur Undergoes US$11.4 Million Facelift Return to Headlines
The four-star 570-key Concorde Hotel Kuala Lumpur is expected to undergo a three-year renovation at approximately US$11.4 million over three phases. Phase 1 of refurbishment which is estimated to cost around US$1.4 million has commenced on 15 June 2009 and involved the facelift of 207 rooms located on five floors of the hotel. Approximately US$4.3 million has been allocated to refurbish the remaining 362 rooms and the rest of the funds will be used to upgrade supporting facilities such as ballroom and meeting rooms by 2012. Additionally, the Concorde hotel chain also has plans to refurbish the 14-year-old Concorde Inn Sepang for around US$1.1 million in the second half of 2010.
Leela To Add Seven New Properties Across India By 2013 Return to Headlines
The Leela Palaces, Hotels and Resorts (Leela) is forecast to invest approximately US$457 million by 2010 as part of its plans to open seven new properties across India by 2013. Two new hotels in Delhi and Chennai are expected to be completed by end of 2009 while five properties in Udaipur, Pune, Hyderabad, Kovalam and Kolkata are envisaged to open by 2013. Currently, Leela operates six hotels across India, totalling approximately 1,800 rooms. Once the seven new properties are in operation, the group's room inventory is expected to total 2,650 keys.
Macau's Hotels At Their Lowest Levels Since SARS Period Return to Headlines
Macau's hotels recorded an average occupancy of 59.4% in May 2009, the lowest level since the height of SARS which saw average occupancies decline to 32.7%. Visitor arrivals fell to 1.59 million in the same month, reflecting an approximate 20% decline from May 2008 and an approximate 15% decline from April 2009, despite dual holidays. Similarly, casino revenue declined by 17% from the same month in 2008, recording at approximately US$1.05 billion in June 2009. This figure also represented a 6% decline from the estimated US$1.12 billion received in May 2009. With regard to the room inventory in the market, it has remained relatively unchanged at approximately 17,500 units since the opening of the 430-key hotel tower at SJM Holdings' Grand Lisboa in December 2008.
Taiwan Forecast To Receive 700,000 Mainland Chinese Tourists In 2009 Return to Headlines
According to official reports, Taiwan is expected to welcome up to 700,000 mainland Chinese tourists in 2009, or approximately 2,000 arrivals a day. In April 2009, the authorities increased the quota on mainland Chinese tourists to 5,000 a day in response to a sharp increase in demand during the Labour Day holidays in May 2009. However, the actual arrivals figures have been declining since then due to the typical low season in June and the Influenza (H1N1) outbreak. The authorities have forecast that investments in the tourism industry are likely to flourish if the mainland Chinese arrivals maintain at 2,000 a day. Since July 2008, there have been approximately 360,000 mainland Chinese tourists visiting Taiwan.
Absolute Share Price Performance, as at 17 July 2009
Closing Share Price as at 17 July 2009 10 July 2009 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited  4.40 4.35 1%
General Property Group 0.53 0.51 4%
Mirvac Group 1.20 1.10 9%
Ocean Capital Limited 0.35 0.32 9%
Thakral Holdings Group 0.21 0.24 -15%
Living and Leisure Australia Group 0.02 0.02 5%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 2.98 2.98
Dusit Thani Public Co Ltd 26.50 26.50
The Erawan Group Public Co Ltd 1.70 1.69 1%
Grande Asset Hotels and Property Public Co Ltd 1.50 1.53 -2%
Laguna Resorts & Hotel Public Co Ltd 25.50 25.00 2%
Minor International Public Co Ltd 7.35 7.40 -1%
China Shanghai Stock Exchange (RMB)
Shanghai Jinjiang International Hotels Development  21.59 19.36 12%
Beijing Capital Tourism Co Ltd 17.30 17.20 1%
Jinling Hotel Corporation Ltd 7.93 7.74 2%
China Shenzhen Stock Exchange (RMB)
Hunan Huatian Great Hotel Co Ltd 8.18 7.35 11%
Guangzhou Dong Fang Hotel Co Ltd 8.70 8.57 2%
Shenzhen Century Plaza Hotel Co Ltd 6.04 6.07
Home Inns & Hotels Management Inc 15.51 13.84 12%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 7.35 7.27 1%
Regal Hotels International Holdings Ltd 1.98 1.90 4%
Sino Hotels Holdings Ltd 2.55 2.50 2%
The Hong Kong & Shanghai Hotels Ltd 8.65 7.75 12%
Korea Exchange (KRW)
The Shilla  15,100 15,850 -5%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.30 0.30
ART Management Limited 0.81 0.68 18%
Banyan Tree Holdings Limited 0.56 0.55 2%
CDL HTrust  0.95 0.84 14%
Hotel Grand Central Ltd 0.56 0.58 -3%
Hotel Properties Ltd 1.65 1.53 8%
Mandarin Oriental International Ltd (US$) 1.24 1.24
Pan Pacific Hotels Group Limited 1.31 1.23 7%
Shangri-La Asia Limited (HK$) 11.50 10.90 6%
Stamford Land Corporation Ltd 0.34 0.31 10%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation  438.00 485.00 -10%
The Ambassador Hotel, Ltd  38.05 39.05 -3%
Tokyo Stock Exchange (JPY)
Nippon Hotel Fund Investment Corporation  153,800 153,900
Japan Hotel and Resort Inc 151,000 151,200
Imperial Hotel, Ltd  1,820 1,925 -5%
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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