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Featured in this Asia Pacific Hospitality Newsletter - Week Ending 2 October 2009
W Hotels Cancels Management Contract In Shanghai, China
Banyan Tree Sets Up Joint Venture To Develop Hotel And Villas In China
Third Wanda Plaza In Wuhan Begins Construction
Traders Hotel Kuala Lumpur Consolidates Its Position
Local Residents Vote Against Casino Gaming In Penghu Island
Hong Kong Property Market On Fast Track To Recovery
Absolute Share Price Performance, As At 2 October 2009
W Hotels Cancels Management Contract In Shanghai, China Return to Headlines
As a result of the economic downturn, W Hotels, part of Starwood Hotels and Resorts Worldwide, has cancelled its intention to manage a luxury hotel located in Shanghai International Financial Centre (IFC) in Lujiazui, part of the Pudong financial district. Owned by Sun Hung Kai Properties (SHKP), the proposed hotel in Shanghai IFC is scheduled to open in 2010 while the entire development is expected to be completed by the first half of 2011. According to market sources, SHKP might convert the rooms which were to be managed by W Hotels into serviced apartments units.
Banyan Tree Sets Up Joint Venture To Develop Hotel And Villas In China Return to Headlines
Banyan Tree Holdings Limited's wholly owned subsidiary, Banyan Tree Hotels and Resorts Private Limited, has announced plans to invest approximately US$1.76 million in a joint venture with Jiuzhaigou Hon-Yee Investment Company Limited (JHY) to develop a hotel, including villas for sale and leaseback, in Baohua Village, Jiuzhaigou County, Sichuan Province, China. The joint venture will be incorporated in China and Banyan Tree will take up minority equity of about 20% in the joint venture company, while JHY will take up the remaining stakes.
Third Wanda Plaza In Wuhan Begins Construction Return to Headlines
Dalian Wanda Group Corporation Limited (Wanda), which specialises in the development of real estate, hotels and departmental stores, has begun the construction of its third Wanda Plaza in Wuhan, Hubei Province. The mixed-use development, which costs a total of approximately US$1.03 billion, will offer 620,000 square metres of gross floor area, consisting of a luxury hotel, an office building and residential apartments. Wanda plans to develop another three Wanda Plazas by end of 2009, bringing its total investments in Wuhan to US$5.87 billion. Currently, Wanda operates 21 Wanda Plazas across China and 30 more are in the pipeline.
Traders Hotel Kuala Lumpur Consolidates Its Position Return to Headlines
The 571-key Traders Hotel Kuala Lumpur, which opened in 2006, is expecting to witness a marginal decline in both its occupancy and average room rate in 2009 as compared to 2008. As such, the hotel is likely to maintain its position as the top four-star hotel in Kuala Lumpur, outperforming even some of the five-star hotels. Owned by KLCC (Holdings) Sdn Bhd, the hotel has successfully changed its guest mix, from 85% of business guests in 2007 to the current 70%, during the economic downturn. According to the hotel management, average room rate is forecast to grow by 2% to 4% in 2010.
Local Residents Vote Against Casino Gaming In Penghu Island Return to Headlines
Residents of Penghu Island off the Straits of Taiwan have voted against the proposal of a casino resort on the island by a margin of 56% to 44%. The project, which is backed by Las Vegas-based Navegante Group, had initially planned for a 600-key hotel and 12,000-square-metre casino along a 27-acre beachfront site on the island. The result of the referendum, which only saw 42% of Penghu's registered voters casting votes, meant that the plan for a casino has to be shelved till 2012. Navegante Group is currently contemplating if it should go ahead with a non-casino development first.
Hong Kong Property Market On Fast Track To Recovery Return to Headlines
According to the weekly Centa-City Leading Index, Hong Kong home prices have risen 26% in 2009. The recovery in Hong Kong's residential market was due mainly to purchases by mainland Chinese buyers and lower mortgage rates offered compared to London and New York. Particularly, the luxury segment outperformed the housing market, driven by the shortage of new supply in the luxury market and improving stock market. According to the Land Registry figures, sales of all residential properties totalled approximately US$5.3 billion in August 2009 compared to a year earlier.
Absolute Share Price Performance, as at 2 October 2009
Closing Share Price as at 2 Oct 2009 25 Sept 2009 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited  5.15 5.28 -2%
General Property Group 0.64 0.64 -1%
Mirvac Group 1.60 1.53 5%
Ocean Capital Limited 0.40 0.40
Thakral Holdings Group 0.42 0.39 6%
Living and Leisure Australia Group 0.03 0.03 -15%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 4.74 4.20 13%
Dusit Thani Public Co Ltd 32.00 32.75 -2%
The Erawan Group Public Co Ltd 2.58 2.44 6%
Grande Asset Hotels and Property Public Co Ltd 1.35 1.35
Laguna Resorts & Hotel Public Co Ltd 35.00 33.75 4%
Minor International Public Co Ltd 12.70 12.00 6%
China Shanghai Stock Exchange (RMB)
Shanghai Jinjiang International Hotels Development  17.73 18.75 -5%
Beijing Capital Tourism Co Ltd 15.99 17.81 -10%
Jinling Hotel Corporation Ltd 6.70 7.28 -8%
China Shenzhen Stock Exchange (RMB)
Hunan Huatian Great Hotel Co Ltd 6.49 6.79 -4%
Guangzhou Dong Fang Hotel Co Ltd 6.77 7.36 -8%
Shenzhen Century Plaza Hotel Co Ltd 4.98 5.49 -9%
Home Inns & Hotels Management Inc 28.50 28.42
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 8.50 8.18 4%
Regal Hotels International Holdings Ltd 2.69 2.64 2%
Sino Hotels Holdings Ltd 2.43 2.41 1%
The Hong Kong & Shanghai Hotels Ltd 10.28 10.74 -4%
Korea Exchange (KRW)
The Shilla  16,900 15,850 7%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.49 0.54 -9%
ART Management Limited 0.96 0.97 -1%
Banyan Tree Holdings Limited 0.83 0.90 -8%
CDL HTrust  1.41 1.52 -7%
Hotel Grand Central Ltd 0.69 0.71 -3%
Hotel Properties Ltd 2.06 2.46 -16%
Mandarin Oriental International Ltd (US$) 1.30 1.31 -1%
Pan Pacific Hotels Group Limited 1.42 1.45
Shangri-La Asia Limited (HK$) 14.06 14.26 -1%
Stamford Land Corporation Ltd 0.40 0.41 -2%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation  397.00 400.00 -1%
The Ambassador Hotel, Ltd  31.25 33.55 -7%
Tokyo Stock Exchange (JPY)
Nippon Hotel Fund Investment Corporation  155,000 159,600 -3%
Japan Hotel and Resort Inc 128,200 128,100
Imperial Hotel, Ltd  1,820 1,826
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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