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Featured in this Asia Pacific Hospitality Newsletter - Week Ending 12 June 2009
Asia Pacific Hotel Performance Falls 30%
China's SPG Land Diversifies Into Hotels And Malls
Starwood Capital Group Plans Five-Year Expansion
First Five-Star Hotel To Be Developed In Hamilton, New Zealand
Nan Fung To Invest In Singapore's South Beach Project
Unexpected Increase In Visitor Arrivals In Seychelles For May
Absolute Share Price Performance, As At 12 June 2009
Asia Pacific Hotel Performance Falls 30% Return to Headlines
Hotels in Asia Pacific continue to suffer under the current global economic crisis with revenue per available room (RevPAR) declining about 30% during the first quarter of 2009 with occupancy and average room rates falling 15% and 17.4%, respectively. Occupancy in the Asia Pacific region hovered around 57.9% while average room rates fell US$26, resulting in a RevPAR decline of US$30 to US$69 at the end of the first quarter of 2009. In terms of hotel performance, Asia Pacific was the second most affected region in the world following Europe. Double-digit declines in RevPAR have been witnessed in most markets across the region, with Indian cities worse off. In Mumbai, RevPAR fell 53.2% to US$112 in the first quarter of 2009.
China's SPG Land Diversifies Into Hotels And Malls Return to Headlines
Mainland China developer SPG Land (Holdings) has announced plans to diversify from being solely a residential developer into one that develops projects including hotels, shopping centres and offices in order to survive in a highly competitive market. In 2004, the company entered a 50-50 joint venture with Hongkong and Shanghai Hotels, Limited to acquire a prime site on the Bund in Shanghai where the Shanghai Peninsula project is currently under construction. With a total gross floor area of 92,520 square metres, the project comprises the 325-key Peninsula hotel, the 39-unit Peninsula Residence and the Peninsula Arcada. The soft opening of the Peninsula hotel is scheduled to take place in September 2009 while the Peninsula Residence is expected to be offered for private sale by end of 2009.
Starwood Capital Group Plans Five-Year Expansion Return to Headlines
Starwood Capital Group has announced its plans to expand in mainland China and Hong Kong after raising around US$2 billion. Under a five-year plan, the group is planing more than 20 new properties under the Baccarat and 1 Hotel and Residences brands through establishing management agreements, equity investments or by forming joint ventures with domestic developers. Among these new properties, the group aims to open at least one to three Baccarat Residences in each major mainland Chinese city by 2014. The group is expected to launch its first managed 308-unit Baccarat Residences located at 8 Ji Nan Road, Xintiandi, Shanghai, in June and is working on a 1 hotel, a luxury green brand for eco-conscious travellers in Shanghai. Currently, the group has no direct investment with the mainland property market; however, it has bought around 3% of Jinjiang International Hotels Development Company Limited in 2006.
First Five-Star Hotel To Be Developed In Hamilton, New Zealand Return to Headlines
A mixed-use development, 120 on Victoria, is in the pipeline to be developed in central Hamilton, New Zealand, and it is likely to comprise a US$126million five-star hotel, a 2,200-seated theatre, an art gallery, a conference centre and a wide variety of food and beverage outlets. The hotel, which is likely to feature 200 keys, will be Hamilton's first five-star hotel and tallest building once completed. The viability of the project is reliant on the authorities approving the leasing of the land, which is located in the heart of the designated arts precinct. Construction is expected to take two years once it is given the go-ahead.
Nan Fung To Invest In Singapore's South Beach Project Return to Headlines
Nan Fung Group (Nan Fung), a Hong Kong-based developer, is looking to invest approximately US$141 million as part of a refinancing exercise by South Beach Consortium, in the South Beach Project in Singapore. The consortium, which is a joint venture by City Developments Limited, El-Ad Group and Dubai World, is expected to commence development by 2010 and it has up till 2016 to complete the development. The project, which is likely to cost a total of approximately US$1.7 billion, is envisaged to comprise two tower blocks and four conserved buildings featuring offices, luxury hotels, retail space and residences.
Unexpected Increase In Visitor Arrivals In Seychelles For May Return to Headlines
Seychelles recorded an unexpected 5% increase in visitor arrivals in May 2009 as compared to May 2008. However, visitor arrivals still suffered a 9% decline for the first five months of 2009, compared to the same period in 2008. The average length of stay for visitors also declined from 10.2 nights recorded in May 2008 to 9.9 nights in May 2009. In general, the majority of visitors to Seychelles comprise Europeans. As most of these economies are badly hit by the global economic downturn, Seychelles' tourism industry is expected to moderate in the near term.
Absolute Share Price Performance, as at 12 June 2009
Closing Share Price as at 12 June 2009 5 June 2009 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings 4.50 4.40 2%
General Property Group 0.50 0.53 -6%
Mirvac Group 1.20 1.33 -10%
Ocean Capital Limited 0.31 0.30 2%
Thakral Holdings Group 0.26 0.23 16%
Living and Leisure Australia Group 0.02 0.02 6%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 3.20 2.96 8%
Dusit Thani Public Co Ltd 22.50 21.20 6%
The Erawan Group Public Limited 1.98 1.61 23%
Grande Asset Development 1.59 1.53 4%
Laguna Resorts & Hotel Public Co Ltd 27.00 26.50 2%
Minor International PCL 9.00 9.15 -2%
China Shanghai Stock Exchange (RMB)
Shanghai Jinjiang International Hotels Development 17.65 18.52 -5%
Beijing Capital Tourism Co Ltd 15.53 15.77 -2%
Jinling Hotel Corporation Ltd 6.78 6.69 1%
China Shenzhen Stock Exchange (RMB)
Hunan Huatian Great Hotel Co Ltd 10.95 10.80 1%
Guangzhou Dong Fang Hotel Co Ltd 8.10 7.93 2%
Shenzhen Century Plaza Hotel Co Ltd 5.71 6.20 -8%
Home Inns & Hotels Management Inc 16.90 18.34 -8%
Hong Kong Stock Exchange (HK$)
Miramar Hotel International Ltd 7.50 7.80 -4%
Regal Hotels International Holdings Ltd 2.12 2.05 3%
Sino Hotels Holdings Ltd 2.60 2.76 -6%
The Hong Kong & Shanghai Hotels Ltd 8.29 7.25 14%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.32 0.33 -3%
ART Management Pte Ltd 0.69 0.71 -3%
Banyan Tree Holdings Limited 0.64 0.69 -7%
CDL HTrust 0.77 0.79 -3%
Hotel Grand Central Ltd 0.57 0.57
Hotel Plaza Ltd 1.00 1.03 -3%
Hotel Properties Ltd 1.68 1.74 -3%
Mandarin Oriental International Ltd (US$) 1.54 1.41 9%
Shangri-La Asia Ltd (HK$) 13.70 13.42 2%
Stamford Land 0.34 0.36 -6%
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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