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Featured in this Asia Pacific Hospitality Newsletter - Week Ending 5 November 2009
Stimulus Measures In China's Property Sector Likely To Be Discontinued
Sands Aims To Raise US$2.5 Billion With Hong Kong IPO
Demand Of Vietnam's Luxury Hotels Continue To Remain Soft
Berjaya To Spend US$38 Million In Refurbishment Programme
Tune Hotels To Add 64 More Hotels By 2013
Walt Disney Gets Approval For Development In Shanghai
Absolute Share Price Performance, As At 5 November 2009
Stimulus Measures In China's Property Sector Likely To Be Discontinued Return to Headlines
It was reported that China's Ministry of Housing and Urban-Rural Development (MHURD) is unlikely to propose the extension of stimulus measures introduced in October 2008 to boost the property sector during the global financial crisis. Taking effect on 1 November 2008, the measures include discounts on mortgage rates, lowering of stamp duty for purchase of apartments smaller than 90 square metres and reducing the downpayment requirement to 20%. The mainland Chinese property market has recovered solidly due to the effectiveness of these measures.
Sands Aims To Raise US$2.5 Billion With Hong Kong IPO Return to Headlines
Las Vegas Sands Corporation (Sands) is targeting to raise US$2.5 billion through an initial public offering (IPO) in Hong Kong. The plan, which has received preliminary approval from the Hong Kong authorities, is likely to help inject capital into its delayed projects in Macau. The projects, which include a Shangri-La hotel, a Sheraton hotel and three casinos within two neighbouring sites, have been delayed since the onset of the global financial crisis. Wynn Resorts, another casino operator, has also recently launched its IPO worth US$1.63 billion in October 2009.
Demand Of Vietnam's Luxury Hotels Continue To Remain Soft Return to Headlines
On the back of a year-on-year 16% decline in international arrivals for the first nine months of 2009, Vietnam's luxury hotels have witnessed substantial decline in their occupancies. In the capital Hanoi, it was reported that five-star hotels recorded an average occupancy of 55%, an eight-percentage-point decline from the same period in 2008. Similarly, five-star hotels in Ho Chi Minh City registered an almost ten-percentage-point decline to average 49% in year-to-date September figures. These figures reflected a significant decline in the market which was recording occupancy levels between 70% to 80% in 2007.
Berjaya To Spend US$38 Million In Refurbishment Programme Return to Headlines
Berjaya Hotels and Resorts (Berjaya) is planning to spend approximately US$38 million to refurbish its six existing hotels in Malaysia. The plan includes a US$15 million refurbishment of the rooms and public areas at the 502-key Berjaya Langkawi by the third quarter of 2010. In addition, Berjaya Times Square Hotel, the company's best-performing city hotel, will undergo a US$21 million upgrade by the first quarter of 2011. It was reported that the Berjaya hotels have generally maintained their revenue per available room (RevPAR) in spite of the current economic slowdown. They averaged 66% in occupancy in the financial year ending April 2009.
Tune Hotels To Add 64 More Hotels By 2013 Return to Headlines
Tune Hotels, controlled by Malaysian budget carrier AirAsia, has announced that a total of 64 hotels are currently under development across cities such as India, Thailand and Indonesia. Presently, Tune Hotels operates seven hotels and a further 64 hotels are scheduled to be completed by 2013. In addition, the group is planning to launch Tune Hotels in London, Melbourne and other Australian cities as AirAsia has recently commenced new flights to these destinations. It was also reported that Singapore, despite its high development costs, and China are on the radar of the group.
Walt Disney Gets Approval For Development In Shanghai Return to Headlines
Walt Disney Co has announced that it has received approval from the mainland Chinese authorities to set up a Disney Theme Park in Pudong District of Shanghai. To be developed on a four-million-square-metre site, the development is envisaged to include a Magic Kingdom-style theme park, hotels and retail facilities. The project is expected to cost a total of US$3.6 billion and forecast to be completed within six years. It was reported that Walt Disney Co is likely to own about 40% of the development while the remaining shares are likely to be held by a holding company formed by a consortium of Chinese companies.
Absolute Share Price Performance, as at 5 November 2009
Closing Share Price as at 5 Nov 2009 30 Oct 2009 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited  6.15 5.97 3%
General Property Group 0.58 0.59 -2%
Mirvac Group 1.39 1.50 -7%
Ocean Capital Limited 0.39 0.39
Thakral Holdings Group 0.40 0.44 -8%
Living and Leisure Australia Group 0.03 0.03 0%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 4.22 4.20 0%
Dusit Thani Public Co Ltd 31.00 31.00
The Erawan Group Public Co Ltd 2.52 2.42 4%
Grande Asset Hotels and Property Public Co Ltd 1.33 1.32 1%
Laguna Resorts & Hotel Public Co Ltd 40.00 38.25 5%
Minor International Public Co Ltd 10.90 10.70 2%
China Shanghai Stock Exchange (RMB)
Shanghai Jinjiang International Hotels Development  22.50 20.15 12%
Beijing Capital Tourism Co Ltd 18.80 16.50 14%
Jinling Hotel Corporation Ltd 7.75 7.17 8%
China Shenzhen Stock Exchange (RMB)
Hunan Huatian Great Hotel Co Ltd 7.30 6.90 6%
Guangzhou Dong Fang Hotel Co Ltd 8.24 7.49 10%
Shenzhen Century Plaza Hotel Co Ltd 7.31 6.82 7%
Home Inns & Hotels Management Inc 32.12
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 8.35 8.55 -2%
Regal Hotels International Holdings Ltd 2.83 2.93 -3%
Sino Hotels Holdings Ltd 2.31 2.39 -3%
The Hong Kong & Shanghai Hotels Ltd 10.60 11.14 -5%
Korea Exchange (KRW)
The Shilla  17,350 17,700 -2%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.47 0.50 -6%
ART Management Limited 1.05 1.06 -1%
Banyan Tree Holdings Limited 0.79 0.81 -2%
CDL HTrust  1.50 1.59 -6%
Hotel Grand Central Ltd 0.64 0.66 -3%
Hotel Properties Ltd 1.38 2.09 -34%
Mandarin Oriental International Ltd (US$) 1.98 1.27 56%
Pan Pacific Hotels Group Limited 1.24 1.31 -5%
Shangri-La Asia Limited (HK$) 14.80 15.20 -3%
Stamford Land Corporation Ltd 0.40 0.41 -2%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation  403.00 412.50 -2%
The Ambassador Hotel, Ltd  33.00 33.40 -1%
Tokyo Stock Exchange (JPY)
Nippon Hotel Fund Investment Corporation  155,000 158,900 -2%
Japan Hotel and Resort Inc 127,200 129,000 -1%
Imperial Hotel, Ltd  1,830 1,825 0%
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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