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March 16, 2012 Sign up to automatically receive HVS mailings
Featured in this Asia Pacific Hospitality Newsletter
Top Asian Hotel Chains Strong Showing in Shanghai at CHIC 2012
IHG Rolls Out China-Focused Hotel Brand Hualuxe
Jin Jiang And Louvre Hotels To Co-Launch Sino-French Hotel Brand
Swissôtel Launches Global Fitness Programm
Hilton To Open Four Hotels In Thailand In Five Years
Absolute Share Price Performance, As At 16 March
 
Top Asian Hotel Chains Strong Showing in Shanghai at CHIC 2012 Return to Headlines

Asia Pacific is providing hotel chains exponential opportunities for growth, within which China is one of the main focus for the business development efforts of hotel chains. According to HVS research in January 2012, amongst the top five hotel chains in Asia Pacific by number of rooms, Home Inns tops the list with 147,524 rooms across 174 cities in China; followed by Jin Jiang Hotels Group with 93,520 rooms; Europe-based giants, IHG and Accor and Nasdaq-listed 7 Days Inn. Three of the five - Home Inns, Jin Jiang and 7 Days Inn are all China homegrown hotel chains.

One of the interesting points is that Home Inns and Jin Jiang Inns have adopted merger and acquisition strategy to expand. Jin Jiang Hotels acquired a stake in IHR in March 2010, while Home Inns successfully completed its acquisition of Motel 168 International Holdings Limited in September 2011. Is merger and acquisition a sustainable viable expansion strategy for hotel chains? At CHIC 2012, Yang Weimin, Chairman, Jin Jiang International Hotels (Group) Company Limited will present a case study review of its successful acquisition of InterState Hotels & Resorts; David Sun, CEO, Home Inns will also share insights into the Motel 168 transaction.

Among the five hotel chains mentioned, the three China-based firms (Home Inns, Jin Jiang Hotels, 7 Days Inn) have focused largely on the economy and mid-tier segments, which gives indication of the potential and size of this segment. The hotel chains are also taking it one-step further to create organic growth by diversifying its brand portfolio. Senior decision-makers will share topics discussed in the boardroom on brand strategy and profile. CHIC 2012 also welcomes Xu Shuguang, Chairman & CEO, GreenTree Inn Chain; Chen Han, CEO, Super 8 Hotel (China) Co., Ltd; Christopher Zhang, Vice President, Starwood Hotels & Resorts and other leaders from the sector sharing their insights.

Within the exponential growing market, hotel chains are pursuing the essence of a new breed of hospitality brand required for China. Join James Stuart, Founder, The Brand Company at CHIC 2012 discussing what are the critical success factors for such brands? Which are the most successful Navigator hospitality brands in China today? Where will we see such brands emerging in the future? What are the likely advantages of being global versus local, new, versus established in becoming a Navigator hospitality brand in China and for Chinese travellers elsewhere?

Organised by HVS, co-hosted by China Tourism Academy and Beijing International Studies University, the 8th China Hotel Investment Conference will be held on April 18-20, 2012 at Grand Hyatt Shanghai. For registration and more information, please visit www.chinahotelconference.com, or call +86 21 5171 7003.

IHG Rolls Out China-Focused Hotel Brand Hualuxe Return to Headlines

InterContinental Hotels Group (IHG), a leading UK-based hotel operator, has announced the launch of a long-awaited new brand for the Chinese market. The new chain will be called Hualuxe Hotels and Resorts and its first hotel is expected to open in late 2013. Hualuxe Hotels and Resorts' name is derived from the Chinese word 'hua' for majestic and the English word 'luxe' for luxury. The hotel is targeted at more traditional Chinese consumers who value teahouses over western-style bars and intimate private dining rooms over banquet halls. IHG, which already owns a high-end hotel brand, Crowne Plaza, has signed 20 letters of intent with property developers to build Hualuxe hotels across the country, especially in second-tier and third-tier cities. The group aims to open Hualuxe hotels in 100 cities across China in the next 15 to 20 years and is also mulling extending the Chinese-featured brand overseas.

 
Jin Jiang And Louvre Hotels To Co-Launch Sino-French Hotel Brand Return to Headlines

Louvre Hotels Group from France has partnered Chinese group Jin Jiang International Hotels to unveil the Campanile & Jin Jiang Inn co-branded initiative. Louvre Hotels, which is owned by Starwood Capital and currently has three hotels in China, plans to open 25 mid-scale or luxury hotels in the Shanghai region within five years. Louvre Hotels bought Dutch hotel operator Golden Tulip in 2009 and takes the second spot for budget hotels in Europe after France's Accor. The partnership, as a way to cash in on the growing number of Chinese tourists visiting France, applies to 15 Campanile hotels in Paris, Bordeaux, Lyon, Marseille and Nice, and will result in both brand names being displayed at the entrance, Chinese-language brochures, Chinese speaking staff, Chinese food items in the buffet and Chinese TV channels in each room. Visitors can also make hotel bookings for the two-star to three-star Campanile hotels through Jinjiang Inn's website.

 
Swissôtel Launches Global Fitness Programme Return to Headlines
Swissôtel has launched a new health and fitness programme for guests at all of its global hotels. Its new Vitality Programme allows guests to exercise in their room, in the gym or outdoors. The Vitality Programme is being implemented in several stages over the course of 2012. A particular highlight gives guests the opportunity to order gym equipment to be set up in their room. Provided with instructions, guests can use a Swiss ball, Aero Step, yoga mats, Thera-Bands or Pilates rings. Anyone who prefers outdoor training can use special jogging maps which show planned routes of various distances for different levels of fitness. The weekly activity programme offered by every Swissôtel in the world will also include guided walks or jogging tours. The Swissôtel Vitality Programme will start with a week-long campaign from 21 March at all the Swiss hotel chain's destinations worldwide.
 
Hilton To Open Four Hotels In Thailand In Five Years Return to Headlines
Hilton Worldwide Hotels and Resorts plans to open four hotels in Thailand over the next five years, including the introduction of the Double Tree by Hilton and the Waldorf Astoria which have not been represented in the country so far. In 2012, DoubleTree by Hilton will open in Bangkok, while the Waldorf Astoria is slated to debut in 2015. Both properties are owned by TCC Group. A Hilton Bangkok is also in the works, along with a Hilton in Samui. Currently, Hilton manages six hotels in Thailand and the introduction of the Waldorf Astoria to Bangkok marks the beginning of Hilton's policy to have a Waldorf in every gateway city in the region.
 
Absolute Share Price Performance, as at 16 March 2012
 
Closing Share Price as at 16 March 2012 9 March 2012 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings Limited 6.07 5.89 3%
General Property Group 3.09 3.11 -1%
Mirvac Group 1.21 1.22 -
Ocean Capital Limited 0.16 0.16 -
Thakral Holdings Group 0.54 0.55 -2%
Living and Leisure Australia Group 0.051 0.051 -
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 12.50 11.40 10%
Dusit Thani Public Co Ltd 34.50 35.00 -1%
The Erawan Group Public Co Ltd 2.68 2.60 3%
Grande Asset Hotels and Property Public Co Ltd 1.28 1.33 -4%
Laguna Resorts & Hotel Public Co Ltd 43.50 43.00 1%
Minor International Public Co Ltd 13.70 12.70 8%
China Shanghai Stock Exchange (RMB)
Shanghai Jinjiang International Hotels Development 17.54 17.76 -1%
Beijing Capital Tourism Co Ltd 14.60 14.78 -1%
Jinling Hotel Corporation Ltd 7.59 7.50 1%
China Shenzhen Stock Exchange (RMB)
Hunan Huatian Great Hotel Co Ltd 4.97 4.76 4%
Guangzhou Dong Fang Hotel Co Ltd 7.25 7.79 -7%
Shenzhen Century Plaza Hotel Co Ltd 4.76 4.62 3%
NASDAQ (US$)
Home Inns & Hotels Management Inc 26.05 27.80 -6%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 8.96 8.45 6%
Regal Hotels International Holdings Ltd 3.01 2.90 -4%
Sino Hotels Holdings Ltd 2.60 2.69 -3%
The Hong Kong & Shanghai Hotels Ltd 11.42 10.88 5%
Shangri-La Asia Limited 18.26 19.10 -4%
kosmopolito Hotel International 1.42 1.45 -2%
Bombay Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 64.2 66.8 -4%
EIH (Oberoi Hotels & Resorts) 85.1 87.9 -3%
Hotel Leela Ventures 34.9 35.2 -1%
Korea Exchange (KRW)
The Shilla 46,500 43,300 7%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.37 0.35 6%
Ascott Residence Trust 1.09 1.08 1%
Banyan Tree Holdings Limited 0.62 0.61 2%
CDL HTrust 1.76 1.73 -
Hotel Grand Central Ltd 0.81 0.80 1%
Hotel Properties Ltd 1.92 1.89 2%
Mandarin Oriental International Ltd (US$) 1.64 1.66 -1%
Pan Pacific Hotels Group Limited 1.86 1.81 3%
Shangri-La Asia Limited (HK$) 17.82 19.02 -6%
Stamford Land Corporation Ltd 0.54 0.54 -
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 441 451 -2%
The Ambassador Hotel, Ltd 38.35 38.55 -1%
Tokyo Stock Exchange (JPY)
Nippon Hotel Fund Investment Corporation 230,300 221,700 4%
Japan Hotel and Resort Inc 207,000 200,000 3%
Imperial Hotel, Ltd 2,115 1,995 6%
 
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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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