In this week’s roundup of news from the Asia/Pacific region: Rezidor warns shareholders against HNA offer; opening delay of MGM Cotai; hotel development potential in Myanmar; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
Rezidor recommends rejection of HNA bid
The Rezidor Hotel Group board of directors unanimously recommended shareholders reject an offer from HNA Tourism Group for 34.86 Swedish Krona ($3.88) per share because of “increased risk and uncertainties,” according to a news release.
The board stated Rezidor’s owner structure is already concentrated, and the liquidity of the share is limited. The offer could lead to the liquidity of the Rezidor share being further reduced and making its ownership structure more concentrated.
MGM’s Cotai resort delayed; REIT courting more sellers
The opening of MGM Resorts International’s MGM Cotai hotel in Macau has been delayed again, reports HNN’s Dan Kubacki. Company executives said during a fourth-quarter earnings call they expect the $3-billion property to open in the second half of 2017. Previous announcements said the opening would be in March 2016 and then the second quarter of this year.
“Remember we’re dealing with the construction of a building that is extremely intricate, complex, beautiful as you can see from the investor deck, and very innovative,” CEO Jim Murren said during the call. “We think it’s going to be very additive to the market. As we said earlier, we’re not rushing the opening. We want to make sure we make a very good impression when we do open.”
Newly opened, complicated Myanmar braces for investment
Myanmar has the potential for a strong tourism and hotel industry, writes HNN’s Terence Baker, but the country’s bureaucracy, politics and infrastructure create hurdles to its success.
The recent lifting of U.S. sanctions against the country has opened the door for foreign investment, and already the country has seen a difference.
“Myanmar is growing very quickly and while the development started in Yangon, we are now seeing growth in other areas, including Nay Pyi Taw (and) Inle Lake,” said Gaurav Bhushan, global chief development officer at AccorHotels. “Growing brand awareness and strong investments in infrastructure are driving development in Myanmar’s tourism industry, with record inbound traffic forecast for 2016.”
STR: Asia/Pacific hotel pipeline for January 2017
The Asia/Pacific region reported 598,952 rooms in 2,670 hotel projects under contract, according to the January 2017 Pipeline Report from STR, HNN’s parent company. This is a 2.2% year-over-year increase.
There were 270,803 rooms in 1,176 projects in construction during January, which represents a 6.2% year-over-year increase. Four markets reported more than 5,000 rooms in construction: Shanghai (9,529 rooms in 42 projects); Jakarta, Indonesia (7,240 rooms in 29 projects); Chengdu, China (5,928 rooms in 27 projects); and Bali, Indonesia (5,474 rooms in 31 projects).
Deals and developments
- Mantra Group secured management rights to the “FV” project in Brisbane, Australia, by luxury developer Gurner.
- Choice Hotels announced the opening of the 90-room Clarion Inn, Jaipur in India.
- The Ayala Land Hotels and Resorts Corp. will invest 15 billion Philippine pesos ($298 million) in the expansion of its Seda brand over the next three years.
- IntelliStay Hotels launched its third brand, i-Stay Hotels, starting with the first in Raipur, Chhattisgarh, India.
- InterContinental Hotels Group will open the 367-room Crowne Plaza Kota Kinabalu Waterfront Hotel, to be managed by Golden Wave Sdn Bhd, in 2021 in Malaysia.
- Crown Resorts and Schiavello in a joint-venture project received conditional planning approval for a 90-story hotel and apartment skyscraper, One Queensbridge, which would become Australia’s tallest tower.
- The 48-room Best Western Thousand Island Hotel opened in Myanmar.
Compiled by Bryan Wroten.