HVS Asia Pacific Hospitality Newsletter - Week Ending 28 February 2020 (March 2, 2020)

HVS Market Pulse: Bangkok, Thailand

By Pawinee Chaisiriroj, Ruj Masan and Daniel J Voellm
The strengthening of the Thai Baht and the ongoing US-China trade war have resulted in a decline in average rate growth and softer demand level in 2019. Furthermore, the extensive hotel supply growth in Bangkok has been the dominant topic for discussion. While a multitude of factors will impact the market performance in 2020, including the recent Coronavirus outbreak, it is evident that the 4,000 new hotel rooms scheduled set to open this year will put Bangkok’s hotel market under pressure.

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Indonesia Government Announces IDR298.5 Billion Budget to Lift Tourism Business

The Indonesia government has allocated a budget of IDR298.5 billion (USD21.5 million) to stabilise Indonesia’s economy and cushion the impact of economic slowdown on tourism. IDR98.5 billion has been set aside as incentives for airlines and tour operators to encourage provision of special discounts for tourists. IDR103 billion has been earmarked for promotional activities, IDR25 billion will go towards improving tourist destination while IDR72 billion will be invested on influencers. The government will grant IDR443 billion to airlines in the form of a 30% discount for 25% of the total available seats per flight to destinations such as Yogyakarta, Manado, Bali, Mandalika, Labuan Bajo, Bangka Belitung, and Batam, and inject additional incentives of up to 50% for flight tickets to ten tourist destinations. The central government will also provide grants of IDR3.3 trillion to 33 district and city governments in the ten tourist destinations in return for waiving hotel and restaurant taxes for the next six months.

Trepang Hotel Group Acquires Kimberley Sands Resort and Spa in Broome

Australia-based Trepang Hotel Group (“Trepang”), owned by businessman, John ‘Foxy’ Robinson, has announced the acquisition of the 72-key Kimberley Sands Resort and Spa in Broome, for an undisclosed sum on 13 February 2020. Trepang has portfolios located across Western Australia, the Northern Territory and Queensland, including the 72-key Kimberley Grande Resort in Kununurra, the 200-key Rydges Palmerston in Darwin and the 192-room hotel at the Coolangatta Airport on the Gold Coast, which is currently under construction. Subsequent to the acquisition, Kimberley Sands Resort and Spa will be the first niche market luxury hotel in Trepang’s portfolio. Trepang is expected to keep the resort name, remove its adult only policy, invest in modernising and upgrading some facilities before reopening in May 2020.

PHP1.6 Million Partnership Between Metro Pacific Investment Corporation and Dusit International in the Philippines

Philippine-based PSE-listed Metro Pacific Investments Corporation (“MPIC”) has signed a PHP1.6 billion (USD32 million) investment agreement with Thailand-based Dusit Thani Public Company Limited (“Dusit”), branded as Dusit International, to jointly develop and manage hospitality and residential properties in the Philippines. The partnership will focus on the development of two hotels and three condominiums at sites long held by the company in the province of Batangas as well as upgrading Dusit’s existing properties in the country. Under the agreement, Philippines-based Metro Vantage Properties Incorporation, the newest real estate, hospitality, and tourism subsidiary of MPIC, will lead the design, development, marketing, and sales of the real estate properties while Dusit Thani Philippines will oversee the hospitality and tourism business.

VietJet Air to Commence Three New Routes to India

Vietnam-based budget carrier, VietJet Air (“VietJet”), has announced the commencement of three new flights to India. VietJet will begin flying five times per week on the New Delhi-Danang route starting 14 May 2020. VietJet will also connect Mumbai with Hanoi and Ho Chi Minh City through thrice-weekly flights and four-times-weekly flights, commencing on 15 May and 16 May 2020, respectively. The new routes will complement VietJet’s existing service to India, which include direct flights to New Delhi, with the launch of four-times-weekly flights from Ho Chi Minh City, and thrice-weekly flights from Hanoi. The airline is also negotiating with India-based low-cost carrier, IndiGo, to forge a codeshare agreement to expand its reach to other Indian cities where the airline is not operating flights. VietJet is focusing on point-to-point services in the Indian market. VietJet has a joint venture, Thai VietJet Air, established with Thailand-based Kannithi Aviation Company Limited, operating as regional carrier, Kan Air, and may consider operating flights through Thai VietJet Air to India in the future.

Absolute Share Price Performance, as on 28 February 2020

Closing Share Price as at 28 February 2020 21 February 2020 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.03 2.10 -3.3%
Event Hospitality & Entertainment Ltd 11.51 12.52 -8.1%
General Property Group 5.78 6.22 -7.1%
Mirvac Group 3.04 3.33 -8.7%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 18.70 21.20 -11.8%
Dusit Thani Public Co Ltd 8.60 9.05 -5.0%
The Erawan Group Public Co Ltd 3.72 4.34 -14.3%
Grande Asset Hotels & Property Public Co Ltd 0.63 0.66 -4.5%
Laguna Resorts & Hotel Public Co Ltd 36.50 38.25 -4.6%
Minor International Public Co Ltd 27.75 31.50 -11.9%
S Hotels and Resorts Public Co Ltd 1.99 2.36 -15.7%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 8.47 8.54 -0.8%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 2.71 2.47 9.7%
Guangzhou Dong Fang Hotel Co Ltd 6.63 6.85 -3.2%
NASDAQ (US$)
Huazhu Group Limited 33.07 37.03 -10.7%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 14.48 14.28 1.4%
Regal Hotels International Holdings Ltd 3.60 3.94 -8.6%
Sino Hotels Holdings Ltd 2.86 2.94 -2.7%
The Hong Kong & Shanghai Hotels Ltd 8.11 8.40 -3.5%
Shangri-La Asia Limited 6.92 7.60 -8.9%
National Stock Exchange (INR)
Chalet Hotels Ltd 323.90 346.50 -6.5%
IHCL (Taj Hotels, Resorts & Palaces) 141.0 137.2 2.8%
EIH (Oberoi Hotels & Resorts) 132.1 140.4 -5.9%
Hotel Leela Ventures 5.9 5.9 0.0%
Lemon Tree Hotels Ltd 52.8 60.0 -12.0%
Korea Exchange (KRW)
The Shilla 80300 88900 -9.7%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.41 0.43 -4.7%
ARA HTrust (US$) 0.75 0.86 -12.8%
Ascendas Hospitality Trust 1.12 1.12 0.0%
Ascott Residence Trust 1.33 1.33 0.0%
Banyan Tree Holdings Limited 0.35 0.38 -7.9%
CDL Hospitality Trusts 1.45 1.55 -6.5%
Eagle HTrust (US$) 0.41 0.53 -22.9%
Far East Hospitality Trust 0.60 0.66 -9.2%
Frasers Hospitality Trust 0.65 0.70 -7.1%
Hotel Grand Central Ltd 1.17 1.25 -6.4%
Hotel Properties Ltd 3.52 3.61 -2.5%
Mandarin Oriental International Ltd (US$) 1.64 1.75 -6.3%
Stamford Land Corporation Ltd 0.47 0.50 -5.1%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 149.0 151.0 -1.3%
The Ambassador Hotel, Ltd 25.1 25.6 -2.0%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 60400 71000 -14.9%
Imperial Hotel, Ltd 1949 1931 0.9%
Red Planet Japan Inc 66 98 -32.7%

For the latest in the hospitality industry, please visit: http://www.hvs.com/. You are also welcome to contact the following personnel.
 
Hok Yean Chee, Regional President – HVS Asia Pacific [email protected]
Mandeep S. Lamba, President, South Asia – HVS Anarock [email protected]
Daniel J Voellm, Managing Partner – HVS Hong Kong [email protected]
Mei Leng Ho, Senior Vice President – HVS Singapore [email protected]
Steven Zhu, Vice President – HVS Shanghai [email protected]
Florian Kittler, Managing Director – HVS Executive Search Europe & Asia Pacific fkittl[email protected]

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