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Featured in this Asia Pacific Hospitality Newsletter - Week Ending 8 May 2009
China’s Wanda To Build US$470 Million Mixed-Use Development In Wuhan, Hubei Province
Hong Kong Arrivals Rise Amid Recession
Macau Casino Revenue Falls
New Zealand Hotel Up For Sale
India’s Tata Group Buys 2.25 Million Shares In Orient Express
Thailand's Tourism Industry Likely To Face Significant Revenue Drop
Absolute Share Price Performance, As At 8 May 2009
China’s Wanda To Build US$470 Million Mixed-Use Development In Wuhan, Hubei Province Return to Headlines
China’s Dalian Wanda Group Company Limited plans to spend approximately US$470 million to build a mixed-use development, Wanda Plaza, located on New Huaxi Road in Wuhan, Hubei Province. Occupying an area of 9.4 hectares with a likely floor area of 400,000 square metres, the development will feature hotels, shopping malls, office buildings and apartments. The group has acquired the development site land for approximately US$176 million and the construction cost is estimated to be around US$294 million.
Hong Kong Arrivals Rise Amid Recession Return to Headlines
According to statistics revealed by the Hong Kong Tourism Board (HKTB), the number of visitors to Hong Kong grew by 1.7% to 2.4 million in March 2009 compared to the corresponding period in 2008. Year-to-date figures for the first quarter of 2009 reached 7.4 million, 1.8% higher than the first quarter of 2008. The growth in arrivals was attributed mainly to the increase in the number of mainland Chinese visitors amid the financial crisis and outbreak of swine flu. The growth in the mainland Chinese market is likely to offset the decline in long-haul visitors which have declined during times of economic recession. HKTB expects 29 million persons to visit Hong Kong in 2009, a 1.6% dip from 2008.
Macau Casino Revenue Falls Return to Headlines
Macau’s casino revenues reportedly recorded approximately US$1.1 billion in April 2009, around a 9% decline from a year ago and 13% decline from March 2009. This was reported to be the fifth consecutive month that casino revenues have declined. Casino business has suffered due to credit crunch among VIP junket agents and Beijing’s curb on mainland Chinese travelling to the city.
New Zealand Hotel Up For Sale Return to Headlines
New Zealand’s Queenstown Lodge has been placed on the market by its receivers, Grant Thornton, after owing more than US$10.2 million to Equitable, Dorchester Finance Limited and other creditors. The 56-room Fernhill hotel was built in the 1980s and is reportedly valued at US$4.1 million. The property sits on a 1.25-hectare freehold site including four self-contained apartments, a licensed restaurant and bar, a lounge and games room, a spa and other facilities. The sale also includes an additional 932-square-metre parcel of land.
India’s Tata Group Buys 2.25 Million Shares In Orient Express Return to Headlines
Tata Group’s hospitality arm, Indian Hotels, has increased its stake in luxury hotel chain operator, Orient Express (Orient), to 9.7% after its subsidiary, Samsara Properties, agreed to purchase an aggregate of 2,250,000 shares at a price of US$5.75 per share or approximately US$12.93 million. Indian Hotels previously held an 11.5% stake in Orient; however, this dipped to 9.57% after a fresh issue of shares by the hotel operator. According to Indian Hotels, the acquisition, funded by a loan from ICICI Bank UK PLC, will allow them to remain a significant shareholder.
Thailand's Tourism Industry Likely To Face Significant Revenue Drop Return to Headlines
According to industry experts, Thailand’s tourism industry is anticipated to experience a 35% drop in annual revenues due to the combined effects of the prolonged political instability and the global economic situation. The influenza A (H1N1) flu epidemic has not helped the situation, although its effects are expected to remain muted as Asia is well prepared to handle such a potential health crisis in the wake of the SARS crisis in 2003. The Thai government has made tourism its top priority as it accounts for 5% of its GDP and employs up to 7% of the total workforce. Initiatives like reduced visa fees and flight landing charges have been implemented to attract visitor arrivals, which are projected to hover around 11 million visitors in 2009, three million less than 2008.
Absolute Share Price Performance, as at 8 May 2009
Closing Share Price as at 8 May 2009 1 May 2009 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings 4.22 4.12 2%
General Property Group 0.48 0.44 8%
Mirvac Group 1.05 1.07 -2%
Ocean Capital Limited 0.30 0.24 25%
Thakral Holdings Group 0.26 0.27 -4%
Living and Leisure Australia Group 0.02 0.02 -14%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 3.00 3.04 -1%
Dusit Thani Public Co Ltd 21.50 20.10 7%
The Erawan Group Public Limited 1.55 1.33 17%
Grande Asset Development 1.53 1.69 -9%
Laguna Resorts & Hotel Public Co Ltd 27.00 24.10 12%
Minor International PCL 7.40 6.40 16%
China Shanghai Stock Exchange (RMB)
Shanghai Jinjiang International Hotels Development 18.84 16.95 11%
Beijing Capital Tourism Co Ltd 17.40 16.37 6%
Jinling Hotel Corporation Ltd 6.64 6.16 8%
China Shenzhen Stock Exchange (RMB)
Hunan Huatian Great Hotel Co Ltd 11.18 10.68 5%
Guangzhou Dong Fang Hotel Co Ltd 7.21 6.09 18%
Shenzhen Century Plaza Hotel Co Ltd 4.18 4.01 4%
Home Inns & Hotels Management Inc 13.80 13.16 5%
Hong Kong Stock Exchange (HK$)
Miramar Hotel International Ltd 6.06 5.71 6%
Regal Hotels International Holdings Ltd 1.73 1.50 15%
Sino Hotels Holdings Ltd 2.55 2.50 2%
The Hong Kong & Shanghai Hotels Ltd 6.84 5.91 16%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.29 0.23 26%
ART Management Pte Ltd 0.68 0.50 35%
Banyan Tree Holdings Limited 0.56 0.35 60%
CDL HTrust 0.76 0.58 30%
Hotel Grand Central Ltd 0.58 0.55 5%
Hotel Plaza Ltd 0.92 0.92 0%
Hotel Properties Ltd 1.30 1.02 27%
Mandarin Oriental International Ltd (US$) 1.05 0.99 6%
Shangri-La Asia Ltd (HK$) 10.00 11.00 -9%
Stamford Land 0.34 0.25 36%
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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