HVS Asia Pacific Hospitality Newsletter - Week Ending 8 June 2018 (June 8, 2018)

Key Takeaways from the 2018 South East Asia Hotel Investor’s Summit (SEAHIS)

By Paola Orneli BockPawinee Chaisiriroj and Hok Yean CHEE
The article features the key takeaways from this year’s South East Asia Hotel Investors’ Summit (SEAHIS) at the Westin Grande Sukhumvit Bangkok on May 14-15, which HVS proudly sponsored for the second consecutive year.

Minor International Acquires Additional Stake in NH Hotel Group from HNA Group

Thailand-based Minor International (“MINT”) has reached an agreement with China-based HNA Group (“HNA”) for the acquisition of an equity stake of 25.2% (on a fully-diluted basis) in NH Hotel Group (“NH”) in a two-tranche transaction valued at EUR 691 million. The acquisition follows MINT’s previous purchase of a 9.5% shareholding (on a fully-diluted basis) in NH. Under the Spanish law, as MINT owns more than 30 percent stake in NH, the company is obligated to launch a takeover bid. As such, MINT has announced intention to proceed with an all-cash public tender offer to acquire remaining NH shares. MINT views the acquisition as an investment strategy to expand into the European hospitality industry and will see its current portfolio of 161 hotels more than triple with the addition of NH’s 382 hotels in Europe, the Americas and Africa. 

Trump-Kim Summit to be Held at Capella Hotel

The historic first meeting between US President Donald Trump and North Korean leader Kim Jong Un will take place at the Capella Hotel on June 12, 2018. Situated on Singapore’s Sentosa Island, the 112-key colonial-style hotel was host to delegations from both countries last week who met to discuss the logistics as well as the appropriate venue for the summit. With security a chief concern for both parties, the location was settled to be the Capella hotel and the meeting is scheduled to take place at 9 a.m. local time. In addition to the area around Shangri-La Singapore that was designated by the Singaporean government as a special event area for the summit, Sentosa and the linkway to the island from Harbourfront have been listed as well, following the site selection. 

W Hotels Debuts in Brisbane, Australia

US-based Marriott International (“Marriott”) has continued their expansion in the Asia-Pacific region with the opening of W Brisbane. Owned by Taiwan-based developer, Shayher Group (“Shayher”), the 34-storey W Brisbane represents the first stage of Shayher’s AUD1 billion mixed-use Brisbane Quarter development along the Brisbane River. The hotel also marks the first five-star hotel to open in Brisbane’s CBD in 20 years since the Marriott Hotel. W Brisbane provides 312 guestrooms, including 32 luxury suites with river views, and three distinct dining venues featuring a signature restaurant, Three Blue Ducks, and two bars. Other facilities include 1,100 square-metres of event space consisting of a 595-square-metre pillarless ballroom, a spa, a fitness centre and a rooftop pool. Elsewhere in Australia, W Sydney at Darling Harbour is scheduled to open in 2019 while W Melbourne in Collins Street is scheduled to open in 2020.

Singapore Airlines to Relaunch Direct Flights to New York

Singapore-based Singapore Airlines Limited (“SIA”) will relaunch the non-stop services between Singapore and New York after having previously stopping the services in 2013 due to weak corporate demand and high fuel price. Starting from October 11, 2018, The flight to Newark Liberty International Airport will utilise the ultra long range (“ULR”) version of the Airbus A350-900. It will be operated thrice weekly before the daily operation commences from Oct 18 when an additional A350-900ULR aircraft enters service. Configured in a two-class layout, the aircraft will offer 67 Business Class seats and 94 Premium Economy Class seats. The route will cover approximately 16,700 kilometres with flight duration of up to 18 hours 45 minutes. Within 2018, SIA will also restart non-stop services to Los Angeles using the same aircraft. Currently, SIA offers direct flights to San Francisco and operates one-stop services to New York (via Frankfurt) and Los Angeles (via South Korea and via Tokyo). With the addition of the direct Singapore-New York route, there will be 72 weekly passenger services operated by four airlines between Changi Airport and the United States. 

Absolute Share Price Performance, as on 8 June 2018

Closing Share Price as at 8 June 2018 1 June 2018 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.04 2.00 2.0%
Event Hospitality & Entertainment Ltd 14.21 14.16 0.4%
General Property Group 5.02 5.03 -0.2%
Mirvac Group 2.20 2.29 -3.9%
Mantra Group 3.95 3.95 0.0%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 46.00 45.25 1.7%
Dusit Thani Public Co Ltd 14.10 14.70 -4.1%
The Erawan Group Public Co Ltd 8.25 8.15 1.2%
Grande Asset Hotels & Property Public Co Ltd 0.95 0.97 -2.1%
Laguna Resorts & Hotel Public Co Ltd 34.50 35.00 -1.4%
Minor International Public Co Ltd 35.75 32.50 10.0%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 10.00 10.00 0.0%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 3.39 3.46 -2.0%
Guangzhou Dong Fang Hotel Co Ltd 9.82 10.02 -2.0%
China Lodging Group Ltd 47.84 44.01 8.7%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 16.00 15.86 0.9%
Regal Hotels International Holdings Ltd 5.12 5.25 -2.5%
Sino Hotels Holdings Ltd 3.42 3.39 0.9%
The Hong Kong & Shanghai Hotels Ltd 13.30 12.76 4.2%
Shangri-La Asia Limited 16.62 15.85 4.9%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 138.1 142.0 -2.7%
EIH (Oberoi Hotels & Resorts) 170.2 176.8 -3.7%
Hotel Leela Ventures 16.8 17.3 -2.9%
Korea Exchange (KRW)
The Shilla 125000 128000 -2.3%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.51 0.51 -1.0%
Ascendas Hospitality Trust 0.76 0.76 0.0%
Ascott Residence Trust 1.10 1.11 -0.9%
Banyan Tree Holdings Limited 0.55 0.56 -2.7%
CDL Hospitality Trusts 1.66 1.68 -1.2%
Far East Hospitality Trust 0.66 0.66 0.8%
Frasers Hospitality Trust 0.71 0.69 2.9%
Hotel Grand Central Ltd 1.41 1.57 -10.2%
Hotel Properties Ltd 3.78 3.74 1.1%
Mandarin Oriental International Ltd (US$) 2.38 2.51 -5.2%
OUE Hospitality Trust 0.80 0.80 0.0%
Stamford Land Corporation Ltd 0.48 0.48 0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 150.5 151.0 -0.3%
The Ambassador Hotel, Ltd 22.7 22.6 0.2%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 82000 81300 0.9%
Imperial Hotel, Ltd 2109 2121 -0.6%
Red Planet Japan Inc 25 25 0.0%

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Sent By: Chee Hok Yean
HVS | Regional President
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