HVS Asia Pacific Hospitality Newsletter - Week Ending 26 October 2018 (October 29, 2018)

Malaysia and Azerbaijan Strengthens Tourism Ties with MoU

Malaysian Association of Tour and Travel Agents (“MATTA”) and Azerbaijan Tourism Association (“AZTA”) have signed a Memorandum of Understanding (MoU) to increase bilateral tourism between Malaysia and Azerbaijan to woo more tourists from Azerbaijan and the Caucasus region to Malaysia. Despite the lack of direct flights, visa application issue and limited tourism promotions, Malaysia recorded 1,035 tourist arrivals from Azerbaijan, an increase of 12.1% over the previous year. Between January and April 2018, an 18.8% year-on-year increase has been recorded. The two-year cooperation will include the development of special tour packages as well as collaboration to pave the way for direct flight connections. Currently, visitors between the two countries fly via Doha with Emirates, Turkish Airlines, or Qatar Airways.

Westin Hotels & Resorts Debuts in Maldives

The Westin Maldives Miriandhoo Resort, which opened in October, is the Westin Hotels & Resorts’ (“Westin”) first Maldivian property. The property was developed by Japan-based mail-order firm Belluna Co. (“Belluna”) and Sri Lanka-based investment bank Asia Capital (“Asia Capital”). Located in the Baa Atoll, a UNESCO Biosphere Reserve site, Miriandhoo Island is a coral island which is also home to a turtle sanctuary. The resort is also in close proximity to Bay, the largest known site where manta rays gather. The resort features 70 villas and suites, of which 41 are on the island while 29 are overwater units. Its overwater units boast a space of almost 200 square metres, one of the largest in Baa Atoll. The resort also features three restaurants, a bar, a spa, multifunctional event spaces, the 24-hour WestinWORKOUT Fitness Studio, a PADI dive centre, a boutique store, an outdoor pool, the Westin Family Kids Club and recreational grounds for tennis, volleyball and basketball.

Launch of The Sapphire By The Gardens Construction in Melbourne

Malaysia-based property developer S P Setia Berhad (“S P Setia”), Australia-based construction company Multiplex (“Multiplex”), Hong Kong-based hotel company Shangri-La International Hotel Management Limited (“Shangri-La”) and the City of Melbourne have jointly launched the construction of Melbourne’s most iconic development, The Sapphire By The Gardens. Developed by S P Setia, the AUD 565 million mixed-use project will consist of two towers connected by a Sky Lounge overlooking the Royal Exhibition Building and Carlton Gardens, a UNESCO world heritage site. Shangri-La will operate a 500-key luxury hotel on the western tower, due to open in 2022, and 300 luxury residential apartments will be located on the eastern tower, with 95 per cent already sold. Multiplex, parts of Canada-based asset management company Brookfield Asset Management (“Brookfield”) will be the construction company for both Sapphire By The Gardens and Shangri-La Melbourne. 

Singapore Tourism Board and Tourism Malaysia to Jointly Promote Nature Parks

Singapore Tourism Board (STB) and Tourism Malaysia are launching a joint-campaign, Passport 2 Nature, to encourage nature-lovers to visit and discover both Singapore’s Sungei Buloh Wetland Reserve and Malaysia’s Pulau Kurup Johor National Park. The campaign, under the Joint Ministerial Committee for Iskandar Malaysia's Tourism Working Group, follows a Memorandum of Understanding (MoU) that was signed between Singapore's National Parks Board (NParks) and the Johor National Parks Corporation (JNPC) on 21 February 2018 to establish both parks as sister sites. Home to migratory birds on the East Asian-Australian Flyway, this collaboration hopes to build up knowledge of migratory patterns and requirements of these birds, enhancing conservation efforts to ensure long-term survival. Pulau Kukup, which has eco-tourism facilities, is one of five national parks in Johor under JNPC. Based on Singapore Tourism Board (“STB”), Pulau Kukup has been enjoying a 30% to 40% year-on-year increase in visitor arrivals since upgrading works between 2015 and 2017. This upward trend is set to continue with the establishment of nearby Kampung Permas Besar as a "Kawan Iskandar Malaysia" (Friend of Iskandar Malaysia) village, focusing on developing Community-Based Ecotourism in supporting Pulau Kukup to become a leading ecotourism site in Johor

Opening of Hong Kong-Zhuhai-Macao Bridge Favors Regional Tourism in China

The Hong Kong-Zhuhai-Macao Bridge, the world’s longest cross-sea bridge, officially opened on 24 October 2018. The 55-kilometer-long bridge links Hong Kong with the southern mainland city of Zhuhai and Macao across the Pearl River Estuary. This massive project includes a combination of sea bridge, underwater sea tunnel and artificial island entrances. It shortens the driving distance between Hong Kong International Airport and Zhuhai from four hours to just 45 minutes. Together with the road networks and rail links to other cities, the bridge has been opened to reshape the tourism landscape to form a ‘golden three-hour tour circle’, bringing the attractions of Macao and Guangdong Province within easy reach. The opening of the bridge has been expected to not only boost the regional economic growth and tourism demand but also consolidate Hong Kong's position as an international hub for tourist destination. The Chinese government had previously stated that the bridge would attract 29,000 vehicles daily by 2030.

Absolute Share Price Performance, as on 26 October 2018

Closing Share Price as at 26 October 2018 19 October 2018 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 1.77 1.88 -6.1%
Event Hospitality & Entertainment Ltd 12.96 14.15 -8.4%
General Property Group 5.18 5.10 1.7%
Mirvac Group 2.21 2.26 -2.2%
Mantra Group 3.95 3.95 0.0%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 39.25 39.25 0.0%
Dusit Thani Public Co Ltd 11.00 12.10 -9.1%
The Erawan Group Public Co Ltd 7.10 7.85 -9.6%
Grande Asset Hotels & Property Public Co Ltd 0.99 1.03 -3.9%
Laguna Resorts & Hotel Public Co Ltd 38.50 38.50 0.0%
Minor International Public Co Ltd 36.50 38.50 -5.2%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 8.30 8.08 2.7%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 2.53 2.42 4.5%
Guangzhou Dong Fang Hotel Co Ltd 6.69 6.33 5.7%
China Lodging Group Ltd 26.11 28.16 -7.3%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 13.72 13.98 -1.9%
Regal Hotels International Holdings Ltd 4.22 4.27 -1.2%
Sino Hotels Holdings Ltd 3.29 3.40 -3.2%
The Hong Kong & Shanghai Hotels Ltd 10.84 10.88 -0.4%
Shangri-La Asia Limited 10.70 10.98 -2.6%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 128.6 122.3 5.2%
EIH (Oberoi Hotels & Resorts) 158.4 156.9 1.0%
Hotel Leela Ventures 13.5 13.3 1.9%
Korea Exchange (KRW)
The Shilla 75800 84300 -10.1%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.42 0.43 -3.5%
Ascendas Hospitality Trust 0.79 0.80 -0.6%
Ascott Residence Trust 1.05 1.07 -1.9%
Banyan Tree Holdings Limited 0.50 0.50 0.0%
CDL Hospitality Trusts 1.48 1.50 -1.3%
Far East Hospitality Trust 0.60 0.61 -1.6%
Frasers Hospitality Trust 0.70 0.70 0.7%
Hotel Grand Central Ltd 1.34 1.37 -2.2%
Hotel Properties Ltd 3.72 3.81 -2.4%
Mandarin Oriental International Ltd (US$) 1.87 1.90 -1.6%
OUE Hospitality Trust 0.67 0.67 0.0%
Stamford Land Corporation Ltd 0.49 0.50 -2.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 133.0 134.0 -0.7%
The Ambassador Hotel, Ltd 22.1 22.1 -0.2%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 79500 82100 -3.2%
Imperial Hotel, Ltd 2009 1980 1.5%
Red Planet Japan Inc 19 19 0.0%

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]
Daniel J Voellm, Managing Partner – HVS Hong Kong [email protected]
Mei Leng Ho, Associate Director – HVS Singapore [email protected]
Paola Orneli Bock, Vice President – HVS Bangkok [email protected]
Steven Zhu, Vice President – HVS Shanghai [email protected]
Florian Kittler, Managing Director – HVS Executive Search Asia Pacific [email protected]

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