HVS Asia Pacific Hospitality Newsletter - Week Ending 15 March 2019 (March 18, 2019)

Japan Airlines’ New Low-Cost Carrier, ZIPAIR Tokyo, to Launch Flights in 2020

Japan Airlines (“JAL”) has announced its new low-cost carrier (“LCC”), ZIPAIR Tokyo (“ZIPAIR”), which will cater for medium- to long-haul destinations. The first two connecting routes will be from its home base, Tokyo’s Narita airport, to Bangkok’s Suvarnabhumi airport and Seoul’s Incheon airport. Serviced by Boeing 787-8 Dreamliners, the carrier is set to commence operations in the summer of 2020, just in time for the Summer Olympics in Tokyo which will be held from July 24 to August 9, 2020.  ZIPAIR will be JAL’s second LCC business in Japan. The airline also operates the short-haul LCC, Jetstar Japan (“Jetstar”), a joint venture between JAL, Australia’s Qantas Airways, Japan-based Mitsubishi Corporation and Japan-based Century Tokyo Leasing Corporation (“CTLC”). There are plans for ZIPAIR to increase its fleet by two 787-8s annually for the next four years, bringing it to a total of 10 aircrafts. While the initial focus will be on shorter routes in Asia, ZIPAIR will eventually target US west coast destinations from Narita.

Accor and SBE to Debut Hyde Brand in Gold Coast, Australia

Following France-based Accor’s (“Accor”) acquisition of a 50% stake in US-based SBE Entertainment Group (“SBE”) in October 2018, Accor has selected Australia as the first Asia Pacific market to expand its partnership with SBE with its ultra-trendy luxury lifestyle hospitality brand, Hyde. Slated to debut on Queensland’s Gold Coast in March 2019, Hyde Paradiso will be a fashionable playground, inspired by Los Angeles’ famous Sunset Strip. The venue will open all day as a contemporary beach-themed hub of relaxation before evolving into a lounge and dining venue during the evenings. Accor and SBE has also recently launch a new luxury hotel brand collection, House of Originals, in places including Sanderson and St. Martins Lane in London, 10 Karakoy in Istanbul, and the Shore Club in Miami Beach. Sam Nazarian, founder and CEO of SBE, revealed that the SBE’s portfolio will grow to over 50 hotels by 2020. Accor boasts a portfolio of 1,005 hotels with approximately 196,600 rooms across 22 countries and a pipeline of 415 hotels with approximately 82,600 rooms across 19 countries in the Asia Pacific region.

Rejuvenation of The Spit Gold Coast in Queensland, Australia

The Spit Gold Coast, Queensland, Australia is slated for rejuvenation with the development of Australia’s biggest Ocean Park. Almost 140 hectares of The Spit’s 201 hectares is set aside for the park, as detailed in the latest draft master plan, and is set to rival some of the best parks in the world, including New York’s Central Park (340 hectares) and Hyde Park London (142 hectares). The draft plan features a 4,000-square-metre restored shore rainforest, more than 800 accommodation rooms, a light rail extension to Sea World, a super-yacht marina, an Aboriginal cultural centre, improved cycle and walkways through the dunes, and potentially a cruise terminal. Parts of the park are earmarked for commercial development, but with a three-story height restriction imposed by the Gold Coast City Council. The final master plan is expected to be released in mid-2019.

Six Senses Opens in Cambodia

International hotel and spa management company, Six Senses Hotels Resorts Spa (“Six Senses”), has debuted their flagship resort in Cambodia with the opening of the Six Senses Krabey Island. Consisting of 40 private pool villas, the new resort is located on a 12-hectare private island, located five kilometres from Ream National Park in the Gulf of Thailand in Southern Cambodia. The resort is accessible via a 10-minute drive from Sihanouk International Airport and a 15-minute speedboat crossing to Krabey Island. Other facilities include two restaurants, a bar, an ice cream parlor, a Six Senses Spa with gym, and rooftop yoga pavilion. Six Senses, with its portfolio of 16 hotels and resorts, 37 spas and sister companies, Evason and Raison d’Etre, was recently acquired by UK-based InterContinental Hotels Group plc (“IHG”) for USD300 million in February 2019.

HKCTS International Investment Signs Detian Waterfall Project in Guangxi, China

China Travel International Investment Hong Kong Limited (“HKCTS International Investment”), an affiliate of The China National Travel Service (HK) Group Corporation (“HKCTS”), has recently completed the signing of Detian Waterfall Project. With a total investment of RMB1.45 billion, the project will be operated by HKCTS International Investment. Located on the Sino-Vietnamese border in Daxin County, Chongzuo City, Guangxi Zhuang Autonomous Region, China, the Detian Waterfall adjoins the Ban Gioc Waterfall on the Vietnamese side. It is known as Asia’s largest transnational waterfall and national AAAAA level scenic spot in China. By leveraging the local rich resources and huge development potential, the project will help to enhance HKCTS’s business base and market power in natural and cultural attractions which will also contribute as a new revenue generator. Looking ahead, HKCTS International Investment aims to uplift products by focusing on waterfall landscape, eco resort experience, transnational culture appreciation and night entertainment to further meet the market demands.

Absolute Share Price Performance, as on 15 March 2019

Closing Share Price as at 15 March 2019 8 March 2019 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 1.70 1.74 -2.0%
Event Hospitality & Entertainment Ltd 12.90 12.98 -0.6%
General Property Group 6.15 6.00 2.5%
Mirvac Group 2.75 2.61 5.4%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 43.50 45.25 -3.9%
Dusit Thani Public Co Ltd 10.50 10.60 -0.9%
The Erawan Group Public Co Ltd 7.30 7.35 -0.7%
Grande Asset Hotels & Property Public Co Ltd 0.99 0.96 3.1%
Laguna Resorts & Hotel Public Co Ltd 61.75 61.25 0.8%
Minor International Public Co Ltd 39.25 38.50 1.9%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 9.84 9.25 6.4%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 3.25 3.08 5.5%
Guangzhou Dong Fang Hotel Co Ltd 7.90 7.52 5.1%
Huazhu Group Limited 36.12 32.64 10.7%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 16.34 16.00 2.1%
Regal Hotels International Holdings Ltd 4.98 4.89 1.8%
Sino Hotels Holdings Ltd 3.50 3.45 1.4%
The Hong Kong & Shanghai Hotels Ltd 11.40 11.72 -2.7%
Shangri-La Asia Limited 11.14 11.24 -0.9%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 150.0 144.6 3.7%
EIH (Oberoi Hotels & Resorts) 205.0 198.0 3.5%
Hotel Leela Ventures 11.0 12.0 -8.3%
Korea Exchange (KRW)
The Shilla 87300 83500 4.6%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.47 0.46 3.3%
Ascendas Hospitality Trust 0.88 0.87 1.1%
Ascott Residence Trust 1.16 1.15 0.9%
Banyan Tree Holdings Limited 0.58 0.57 0.9%
CDL Hospitality Trusts 1.64 1.62 1.2%
Far East Hospitality Trust 0.66 0.65 1.5%
Frasers Hospitality Trust 0.73 0.73 0.0%
Hotel Grand Central Ltd 1.37 1.35 1.5%
Hotel Properties Ltd 3.72 3.75 -0.8%
Mandarin Oriental International Ltd (US$) 2.02 1.95 3.6%
OUE Hospitality Trust 0.73 0.73 0.7%
Stamford Land Corporation Ltd 0.51 0.51 1.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 138.0 136.5 1.1%
The Ambassador Hotel, Ltd 22.0 22.1 -0.2%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 87100 85300 2.1%
Imperial Hotel, Ltd 2004 1986 0.9%
Red Planet Japan Inc 15 14 7.1%

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, Senior Vice President – 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 Europe & Asia Pacific [email protected]

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