HVS Monday Musings: Tech Driven Ancillary Revenue Push in Indian Hotels Sector

By Ajay Mehtani
Hotel companies in India have finally started focusing on ancillary revenue and now need to take it a step further by embracing technology to push their ancillary revenue strategy.

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Arden Group Acquires Grand Mercure Monaco Hotel in New Zealand

Murali Kodoor, owner of Auckland-based Golden Grand Trading Limited, has announced the acquisition of the Grand Mercure Monaco hotel in Nelson, New Zealand, from Patrick Sanders, who owns the hotel together with his family at an undisclosed sum. The 20-key upscale boutique waterfront property is situated a 5-minutes’ drive from the Nelson Airport, and a 15-minutes’ drive from the Nelson Central Business District. The property features an elegant and modern English decorum and includes a solar-heated swimming pool, gymnasium, stunning cottage-style gardens and village green, an on-site jeweller, hairdresser and beauty salon, ample car parking, and The Monaco Kitchen, an award-winning restaurant and bar that is currently undergoing a refurbishment. In addition to this acquisition, Arden has also acquired the adjacent accommodation and restaurant, Honest Lawyer, and has since announced plans for the two properties. Arden further stated that this acquisition is part of their strategy to expand market presence within the South Island and wishes to serve the community through job creation and the support of local companies.

Hilton Singapore to be Rebranded to Voco Orchard Singapore

Singapore-based Hotel Properties Limited (“HPL”) announced that Hilton Singapore will be rebranded to Voco Orchard Singapore, an upscale brand under UK-based IHG Hotels & Resorts (“IHG”). The 423-key property is slated for reopening in January 2022 and would feature four restaurants and bars, alongside twelve meeting rooms spanning more than 1,750 square metres. The Voco portfolio currently has properties in Australia and China, with several other projects slated to be opened in Vietnam, Thailand, Singapore, South Korea, New Zealand, and Saipan. Stephen Lau, Chairman of HPL stated that the Voco brand is an ideal choice for a hotel within the Orchard precinct, the renowned shopping and entertainment district of Singapore. He also states that the hotel would cater to the leisure and business segments within the vicinity. Voco Singapore will be IHG’s twelfth hotel in Singapore, and the seventh brand within its local portfolio. Other hotels within the portfolio in Singapore include Regent, InterContinental, Crowne Plaza, Hotel Indigo, Holiday Inn, and Holiday Inn Express.

Village Roadshow Theme Parks to Invest AUD70 million in Gold Coast Attractions

Australia-based leading theme park operator, Village Roadshow Theme Parks (“Village Roadshow”) will be investing AUD70 million in Gold Coast attractions across its existing parks in the coming months. Currently, the group’s parks include Warner Bros. Movie World, Sea World, Wet ‘n’ Wild, Paradise Country, and Australian Outback Spectacular. The investment will go into a 23-metre-high waterslide complex in Wet’n’Wild, which will be the tallest tower slide in the country, a Meerkat exhibition in Paradise Country, and a huge parade titled ‘Hooray for Hollywood’ in Warner Bros. Movie World, to celebrate its 30^th birthday. Clark Kirby, Village Roadshow’s Chief Executive Officer, mentioned that the investment is crucial in reviving the Queensland tourism industry and will create 100 new jobs, in addition to the 4,000 staff currently employed by Village Roadshow. Queensland’s Premier Annastacia Palaszczuk also commented that the AUD70 million investment by Village Roadshow signifies Gold Coast’s economic recovery and that new infrastructures will help in the economic recovery of Gold Coast. In a bid to stimulate visitor demand and expenditure for its 4,600 tourism operators, Destination Gold Coast also launched a seven-week, AUD1.75 million marketing blitz to boost visitor numbers before the winter season.

Palm Garden Hotel Malaysia Rebranded into a Tribute Portfolio Hotel

US-based Marriott International has signed an agreement with Malaysia-based real estate developer, IOI Properties Group (“IOI”), to rebrand the Palm Garden Hotel into Marriott’s Tribute Portfolio. Situated in the 318-hectare IOI Resort City, a mixed-land use development in Putrajaya, the 151-key hotel is undergoing a renovation to include a signature Thai restaurant, an alfresco bar, two large swimming pools, and a recreation centre with obstacle courses and various teambuilding facilities. Slated to open later this year, the hotel will also provide eleven multifunctional event spaces including a ballroom with over 550 square metres. With this signing, Marriott International is expecting to operate six hotels for IOI in Malaysia and China, including the Putrajaya Marriott Hotel, Le Méridien Putrajaya and the upcoming Moxy Putrajaya, which are all located in the IOI Resort City. The Palm Garden Hotel will also be the first Tribute Portfolio Hotel in Malaysia.

Correction for Last Week’s Newsletter Titled USD1 Billion Hotel Project Commenced in Phú Yên Province, Vietnam

“Early last month, Indochina Kajima, a joint venture between local property developer Indochina Capital and Kajima Corporation, a Japanese general contractor and property developer, broke ground for a luxury resort in Bai Nom, Phu Yen. It has not been announced that the resort will be managed by Four Seasons Hotels & Resorts upon estimated completion in 2023.”

Absolute Share Price Performance, as on 4 June 2021