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Featured in this Asia Pacific Hospitality Newsletter - Week Ending 23 October 2009
Foreign Hotels Raise Star Value In India
Indonesia Expects European Union To Remove Travel Ban In 2010
Recovery Of Macau Gaming Industry Likely To Fuel Taiwan's Casino Hopes
Ritz-Carlton Reserve To Debut In Thailand
Obstacles For Luxury Hotel Expansion In Hong Kong
Sumitomo And AXA To Start Property Fund
Absolute Share Price Performance, As At 23 October 2009
Foreign Hotels Raise Star Value In India Return to Headlines
As a result of India's unique hospitality business model which places a high emphasis on food and beverage facilities, ‘select service hotels' in the mid-market segment do not exist. According to industry estimates, food and beverages account for around one-third of a hotel's overall revenues and the total ancillary services, including the renting of banquet halls, spas and nightclubs, in a five-star hotel could account for approximately 45% of a hotel's business in India. Due to the nature of the hospitality landscape in India, mid-market hotels such as Courtyard by Marriott features elaborate food and beverage services. Additionally, HVS India has pointed out that the high real estate costs in India, which stand at around 35% to 40% of total project costs, are also one of the reasons for international hotel brands having to take a higher positioning than their global standards.
Indonesia Expects European Union To Remove Travel Ban In 2010 Return to Headlines
According to the Indonesian Transport Ministry, the European Union (EU) is expected to remove its travel ban on 37 of Indonesia's airlines in 2010. This is following the country's improved air safety standards which resulted in the lifting of the restriction on four leading Indonesian carriers in July 2009. Although it is less likely for the Indonesian airlines to fly to Europe, the removal of the travel ban is likely to improve their image in the eyes of European visitors to Indonesia.
Recovery Of Macau Gaming Industry Likely To Fuel Taiwan's Casino Hopes Return to Headlines
Macau's recovery in the gaming industry, which was reflected by Wynn Macau's recent 13% growth in stock prices, has revived hopes for the approval of casino developments in Taiwan. Its southern offshore island, Penghu, has voted against the referendum for casino developments in September 2009. However, investors have recently shifted their focus to the islands of Kinmen, which are located off the southeastern coast of China. According to reports, the Kinmen authorities are planning to hold a similar referendum by early 2010.
Ritz-Carlton Reserve To Debut In Thailand Return to Headlines
The global launch of the Ritz-Carlton Hotel (Ritz-Carlton) group's new Ritz-Carlton Reserve brand is scheduled to take place in Thailand. Phulay Bay, A Ritz-Carlton Reserve is set to make its debut in Krabi, Thailand, by December 2009. The resort, which features 54 keys, will be the flagship property of the brand in Asia. Owned by PB Partner Group, the resort was developed at a total investment cost of approximately US$90 million. According to Ritz-Carlton, the company is targeting to manage at least 20 properties under the brand in Asia by 2014.
Obstacles For Luxury Hotel Expansion In Hong Kong Return to Headlines
According to interviews with luxury hotel operators, the high cost of land and lack of suitable sites are limiting their plans to expand in Hong Kong. Although the Hong Kong authorities have piloted a hotel-only site tender scheme last year, the Central Business District (CBD) is still facing a shortage in luxury room supply due to an exodus of hotels since 2000. Furama, Hilton and Ritz-Carlton are examples of hotels which had exited the market as a result of conversions. Currently, Hong Kong offers approximately 14,700 luxury rooms, with 1,000 rooms located in the CBD.
Sumitomo And AXA To Start Property Fund Return to Headlines
Sumitomo Trust and Banking has announced plans to partner French insurer group, AXA, to set up a US$1.1 billion real estate investment fund to buy office buildings in Tokyo. Tokyo's office market was the most active globally in the first half of 2009 as investors return to the market after the global credit crunch lowered property values and squeezed financing. The new fund is expected to be ready by 2010 and approximately US$550 million of the funds will be from global investors while the remaining amount will be sought in lending from financial institutions.
Absolute Share Price Performance, as at 23 October 2009
Closing Share Price as at 23 Oct 2009 16 Oct 2009 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited  5.85 5.74 2%
General Property Group 0.64 0.66 -2%
Mirvac Group 1.63 1.64 -1%
Ocean Capital Limited 0.40 0.40
Thakral Holdings Group 0.44 0.44 1%
Living and Leisure Australia Group 0.03 0.04 -11%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 4.28 4.26 0%
Dusit Thani Public Co Ltd 32.00 31.00 3%
The Erawan Group Public Co Ltd 2.44 2.56 -5%
Grande Asset Hotels and Property Public Co Ltd 1.30 1.30 0%
Laguna Resorts & Hotel Public Co Ltd 35.75 35.50 1%
Minor International Public Co Ltd 10.90 11.60 -6%
China Shanghai Stock Exchange (RMB)
Shanghai Jinjiang International Hotels Development  19.90 19.41 3%
Beijing Capital Tourism Co Ltd 18.02 17.06 6%
Jinling Hotel Corporation Ltd 7.56 7.04 7%
China Shenzhen Stock Exchange (RMB)
Hunan Huatian Great Hotel Co Ltd 7.32 7.04 4%
Guangzhou Dong Fang Hotel Co Ltd 7.94 7.77 2%
Shenzhen Century Plaza Hotel Co Ltd 6.87 6.06 13%
Home Inns & Hotels Management Inc 30.79 31.03 -1%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 8.45 8.31 2%
Regal Hotels International Holdings Ltd 2.98 2.80 6%
Sino Hotels Holdings Ltd 2.36 2.37 0%
The Hong Kong & Shanghai Hotels Ltd 10.94 10.28 6%
Korea Exchange (KRW)
The Shilla  18,300 18,150 1%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.53 0.52 2%
ART Management Limited 1.05 1.03 2%
Banyan Tree Holdings Limited 0.90 0.88 2%
CDL HTrust  1.58 1.57 1%
Hotel Grand Central Ltd 0.70 0.69 1%
Hotel Properties Ltd 2.26 2.22 2%
Mandarin Oriental International Ltd (US$) 1.35 1.27 6%
Pan Pacific Hotels Group Limited 1.36 1.40 -3%
Shangri-La Asia Limited (HK$) 15.02 15.34 -2%
Stamford Land Corporation Ltd 0.42 0.42
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation  410.00 407.00 1%
The Ambassador Hotel, Ltd  33.15 32.10 3%
Tokyo Stock Exchange (JPY)
Nippon Hotel Fund Investment Corporation  156,900 157,200 0%
Japan Hotel and Resort Inc 129,300 130,600 -1%
Imperial Hotel, Ltd  1,860 1,808 3%
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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