Global Hospitality Report (May 23, 2016)

China Hotel Investment Watch 2016 | Excerpts 
By Daniel Voellm and Cathy Nie

The annual China Hotel Investment Watch, now in its seventh edition, serves as an important indicator of the investment climate in the Chinese hotel market for stakeholders in their effort to evolve the Chinese hotel industry to the next level!

Join HVS Leaders in Lodging Development, Investment, and Finance at NYU 

HVS is proud to participate once again as a patron of the prestigious New York University Hospitality Industry Investment Conference. Stephen Rushmore, Jr., MAI, CRE, FRICS, President and CEO of HVS will present the latest industry trends and forecasts at the Statistically Speaking general session.  Suzanne Mellen, MAI, Senior Managing Director-Practice Leader, will be participating in the panel session “Demand, Prices, Profits, and Values”.  Anne Lloyd-Jones, CRE Senior Managing Director, will be moderating a finance workshop focused on “Navigating the Course: Balancing the Interests of Buyers, Sellers, Lenders and Brokers". Lastly, Jonathan Nehmer, AIA, ISHC, Chairman and Founder of Jonathan Nehmer + Associates, will be moderating a design workshop, “Blurred Vision: Understanding the Hotel Tier Differences”. Meet with us at the NYU Conference on June 5-7, 2016!

Market Pulse: Greater Wilmington, Delaware 
By Dinaker Mallya

Delaware’s business-friendly laws attract thousands of companies with operations across the globe. Many businesses large and small maintain operations and headquarters in Wilmington, providing commercial demand to local hotels.

Eight Asian Low-Cost Carriers Form Value Alliance 

Eight Asian budget carriers have forged the world’s largest and first ever pan-regional LCC alliance. Christened Value Alliance, the group comprises eight airlines – Tigerair Australia; Singapore's Tigerair and Scoot; Cebu Pacific (including subsidiary Cebgo) in the Philippines; South Korea's Jeju Air; Japan’s Vanilla Air; and Thailand's Nok Air and NokScoot. Together the eight members span a third of the globe, serving more than 160 destinations from 17 hubs with a collective fleet of 176 aircrafts across the Asia Pacific region. The partnership is viewed as a strategic move to create greater revenue opportunities by leveraging on the strength of each partner’s website in its home market, in order to increase the geographical reach of its members and to give smaller LCCs more heft against heavyweights budget carriers AirAsia and Jetstar. The alliance will provide customers with a one-stop shop experience wherein the revamped booking interface will offer a comparative view on best available fares and ancillary choices rendered on flights from any of the member airlines. The cooperation model will however be strictly confined to enhancing sales and ticket distribution among members, unlike comprehensive full-service carrier alliances, such as Star Alliance, Oneworld and SkyTeam, which are far more extensive and include cooperation in aspects like marketing, procurement and mileage transfer, along with common quality standards and service offerings.

FDM Management Buys Two European Portfolios  

Hotel investment vehicle FDM Management (which was created by Foncière des Régions) has acquired two portfolios comprising 18 properties across Germany, France and Belgium for €936 million. FDM has signed a preliminary purchase agreement for nine hotels in city centre locations in Berlin, Dresden and Leipzig in Germany. This portfolio comprises 4,131 guest rooms and the hotels are operated under the Park Inn, Radisson Blu, Westin, Pullman, Mercure and ibis brands. The deal is expected to close this summer and Event Hotels will continue to manage the portfolio. The second transaction includes nine hotels in historic city centres in France and Belgium. With a total of 650 rooms, the hotels are affiliated with the Autograph Collection, Best Western, Crowne Plaza and Holiday Inn chains. These properties are run by FDM Management. "With these two major transactions, we are entering high-growth markets in partnership with the main international operators: Marriott, Starwood Hotels and Resort, IHG, AccorHotels, Best Western and Carlson Rezidor. As such, we are securing our position as a major player in hotel investments, and our aim to continue our development in Europe," said Dominique Ozanne, chairman of FDM Management and chief executive officer for Hotels & Hospitality Management at Foncière des Régions.


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