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Featured in this Asia Pacific Hospitality Newsletter - Week Ending 27 November 2009
JKH Likely To Increase Hotel Investments In Sri Lanka
Occupancy Rates At Tokyo Hotels Increase For Fourth Straight Month
Bina Puri Planning For A US$443 Million Luxury Resort Development In Kota Kinabalu
The Oberoi Mumbai To Reopen by First Quarter Of 2010
Developments Resume Construction In Macau
Asian Governments To Monitor Property Prices In Bid To Avoid Bubble
Absolute Share Price Performance, As At 27 November 2009
JKH Likely To Increase Hotel Investments In Sri Lanka Return to Headlines
John Keells Holdings (JKH) has announced that it would invest approximately US$52 million in Sri Lanka over the next three years if tourism picks up as expected. A 190-key hotel in Beruwela, which costs approximately US$15 million, is likely to complete its design work by mid-2010 and will be branded under JKH's mid-market brand 'Chaaya'. Another property, the 115-key Bencota Beach Hotel, is scheduled to undergo a US$7 million refurbishment by end of 2010. In addition, JKH is reportedly ready to develop a 100-key five-star hotel on its existing land in Ahungalle by 2011. Currently, the group has closed its 80-key Club Oceanic Hotel located along the east coast of Trincomalee for a US$3.5 million refurbishment.
Occupancy Rates At Tokyo Hotels Increase For Fourth Straight Month Return to Headlines
From a survey of 19 major hotels in Tokyo carried out by Nikkei, occupancy rates of these hotels recorded 82.7% in October 2009, an increase of 3.2 percentage points from the same month in 2008. The main reasons for the increase were the rise in the number of Chinese travellers and the rebound in business travellers from Europe and America. It was reported that October was the fourth straight month of year-on-year increases. On the other hand, from a survey of 18 hotels in Osaka, occupancy rates in these hotels registered approximately 80.7% in October, reflecting a decline of 2.4 percentage points from October 2008.
Bina Puri Planning For A US$443 Million Luxury Resort Development In Kota Kinabalu Return to Headlines
Malaysia's Bina Puri Holdings Berhad (Bina Puri) is in talks to develop a US$443 million luxury resort development in Kota Kinabalu in east Malaysia. The development, which is envisaged to feature hotels, resorts and high-end condominiums, is likely to be undertaken by a cluster of local developers and foreign partners. It was reported that a joint venture company will be set up once talks are finalised. Although no date has been set for the commencement of the development, Bina Puri has reportedly earmarked a few parcels of land for the development.
The Oberoi Mumbai To Reopen by First Quarter Of 2010 Return to Headlines
The Oberoi Mumbai is scheduled to reopen by either March or April 2010, close to 18 months after the terror attacks. It was reported that several areas within the hotel had to be built from scratch as the majority of its public areas were 'scorched' in the aftermath of the attacks. According to Oberoi, one of the biggest challenges facing the hotel management relates to keeping security 'effective yet unobtrusive'. On the other hand, another hotel which was affected by the attacks, the Trident, Narman Point, was able to open within three weeks of the incident as only its lobby area was affected.
Developments Resume Construction In Macau Return to Headlines
Macau has recently witnessed resumption in construction activities which halted after the onset of the global financial crisis in October 2008, and the balance of developments has shifted towards the Cotai area. The 800-key Grand Hyatt, located within the City of Dreams, was the latest addition to the market. In addition, Las Vegas Sands Corp is scheduled to open its 6,000-key mega resort in mid-2011 after its recent IPO while Galaxy Entertainment has set an opening date of first quarter 2011 for its three hotels, totalling 2,200 rooms, in the Cotai area. It was reported that the influx of hotels is likely to increase the number of rooms in Macau by 42% to 26,884 rooms over the next two years.
Asian Governments To Monitor Property Prices In Bid To Avoid Bubble Return to Headlines
Markets in Asia such as Singapore, China and Malaysia have witnessed the rise of property prices in the last few months and there have been fears that this might adversely impact recovering markets. As such, the Singapore authorities have acted by implementing measures including releasing more land for development and removing deferred payment schemes. In China, its central bank recently advised that the authorities should halt some of its real estate stimulus policies as real estate investments have grown by 19% in the first ten months of 2009.
Absolute Share Price Performance, as at 27 November 2009
Closing Share Price as at 27 Nov 2009 20 Nov 2009 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited  5.58 5.49 2%
General Property Group 0.58 0.64 -9%
Mirvac Group 1.51 1.54 -2%
Ocean Capital Limited 0.37 0.35 6%
Thakral Holdings Group 0.38 0.37 1%
Living and Leisure Australia Group 0.03 0.03 -6%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 4.08 4.12 -1%
Dusit Thani Public Co Ltd 29.75 30.00 -1%
The Erawan Group Public Co Ltd 2.36 2.48 -5%
Grande Asset Hotels and Property Public Co Ltd 1.32 1.38 -4%
Laguna Resorts & Hotel Public Co Ltd 43.00 43.25 -1%
Minor International Public Co Ltd 10.40 10.40
China Shanghai Stock Exchange (RMB)
Shanghai Jinjiang International Hotels Development  21.40 22.33 -4%
Beijing Capital Tourism Co Ltd 20.73 22.73 -9%
Jinling Hotel Corporation Ltd 8.19 8.75 -6%
China Shenzhen Stock Exchange (RMB)
Hunan Huatian Great Hotel Co Ltd 8.14 8.77 -7%
Guangzhou Dong Fang Hotel Co Ltd 8.15 9.03 -10%
Shenzhen Century Plaza Hotel Co Ltd 7.11 7.96 -11%
Home Inns & Hotels Management Inc 33.53 36.05 -7%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 8.35 8.60 -3%
Regal Hotels International Holdings Ltd 3.11 3.26 -5%
Sino Hotels Holdings Ltd 2.36 2.38 -1%
The Hong Kong & Shanghai Hotels Ltd 11.50 11.74 -2%
Korea Exchange (KRW)
The Shilla  18,700 18,700
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.50 0.50
ART Management Limited 1.08 1.04 4%
Banyan Tree Holdings Limited 0.73 0.74 -1%
CDL HTrust  1.50 1.46 3%
Hotel Grand Central Ltd 0.68 0.69 -1%
Hotel Properties Ltd 2.08 2.05 1%
Mandarin Oriental International Ltd (US$) 1.27 1.30 -2%
Pan Pacific Hotels Group Limited 1.47 1.40 5%
Shangri-La Asia Limited (HK$) 14.10 14.50 -3%
Stamford Land Corporation Ltd 0.41 0.40 2%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation  405.00 411.00 -1%
The Ambassador Hotel, Ltd  35.45 38.20 -7%
Tokyo Stock Exchange (JPY)
Nippon Hotel Fund Investment Corporation  129,900 142,900 -9%
Japan Hotel and Resort Inc 113,600 117,300 -3%
Imperial Hotel, Ltd  1,675 1,809 -7%
Return to Headlines
HVS Beijing
Michael Schwarz
HVS Hong Kong
Mark Keith & Daniel Voellm
HVS Mumbai
Manav Thadani
HVS New Delhi
Manav Thadani
HVS Shanghai
Adeline Phua
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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