In this week’s roundup of news from the Asia/Pacific region: Chinese companies look to invest in Europe; Vienna House seeks global expansion; China Lodging to acquire Crystal Orange Hotels; 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.
New sources of Asian investment buying European hotels
Smaller, private Chinese hotel companies are following the example of their larger counterparts by, looking for investment opportunities in Europe, writes HNN’s Terence Baker.
As these midsize companies consider expanding to a new region, they need to navigate their government’s capital control and labor problems that might follow Brexit.
“It always is difficult to prioritize when moving into a new market,” said Hansen Zhao, president of Dossen Hotel Group. “Even with a defined brief, that is always changed when feet are on the ground.”
Thai ownership to spark Vienna House’s global growth
Thai developer U City has agreed to buy Europe’s Vienna House’s assets and management for about €330 million ($356 million), writes HNN’s Terence Baker. As its new owner, U City would likely set Vienna House on a path toward global growth in Europe as well as Asia and the Middle East.
Vienna House CEO Rupert Simoner said he hopes the deal will strengthen his company and retain its identity.
“We are seeking synergies with regards to distribution and new development opportunities in Asia, but the DNA of Vienna House remains exactly the same and will develop its way, which was one of the main reasons U City became the sole shareholder,” said Simoner, who referred to Vienna House as “one of the last independent European brands.”
Hotel, welcome preserve Singapore’s Peranakan culture
Being the hotel manager at the Naumi Liora in Singapore’s Chinese district is where Spencer Han feels he belongs, writes HNN’s Terence Baker. Han began in the hotel industry at the Hard Rock Hotel Singapore after earning a degree in hospitality and tourism management from Murdoch University in Australia.
“It was a choice between the F&B business or a backpacker hostel,” Han said. “I picked a hostel over a café because I thought that running a hostel was like opening up my home to strangers and then making them feel at home. I liked the idea of the human interaction, whilst extending something that was personalized.”
China Lodging reaches deal to buy Crystal Orange Hotels
Shanghai-based China Lodging Group announced its wholly owned subsidiary China Lodging Holdings entered into a definitive share purchase agreement with the shareholders of Crystal Orange Hotel Holdings for the equity interests of Crystal Orange for approximately 3.65 billion Chinese yuan ($529 million), according to a news release.
The deal is contingent upon the approval of the Antitrust Bureau of the Ministry of Commerce of China.
STR: Asia/Pacific hotel performance for January 2017
Data from STR, HNN’s parent company, reports hotels in the Asia/ Pacific region saw mostly positive performance for the month of January 2017, according to a news release. Occupancy dropped 0.8% year over year to 64.8%, but a 4.6% year-over-year increase in average daily rate to $108.10 pushed revenue per available room up 3.7% to $70.07.
Deals and developments
- Best Western Hotels & Resorts signed a management agreement with Habitat Group for BluPhere Pattaya in Thailand, introducing the company’s BW Premier Collection to Asia.
- Hyatt Hotels Coproration has signed a management agreement with Tokyo Bay Resort Development for the first Hyatt Place hotel in Japan, the Hyatt Place Tokyo Bay.
- Carlson Rezidor Hotel Group announced the opening of the Radisson Blu Atria Bengaluru in Karnataka, Indonesia.
- AccorHotels opened the Ibis Saigon Airport Hotel in Ho Chi Minh City, Vietnam.
- Choice Hotels announced it opened the 90-room Clarion Inn, Jaipur, in India.
- The Ayala Land Hotels and Resorts Corporation will invest 15 billion Philippine pesos ($300 million) to expand its Seda brand over the next three years.
- IntelliStay Hotels Pvt. announced the launch of i-Stay Hotels, its third brand, with the 33-room i-Stay Hotel – Raipur Junction.
- InterContinental Hotel Group signed a management agreement with Golden Wave Sdn Bhd for the 367-room Crowne Plaza Kota Kinabalu Waterfront Hotel in Malaysia, which is scheduled to open in 2021.
- Crowne Resorts and its partner Schiavello received conditional planning approval for a 90-story hotel and apartment skyscraper, the One Queensbridge, which would be Australia’s next tallest building.
- The 48-room Best Western Thousand Island Hotel has opened in Myanmar.
Compiled by Bryan Wroten.