In this week’s roundup of news from the Asia/Pacific region: a timeline of Chinese investment in Western hotels; Asia/Pacific pipeline numbers; new joint ventures; 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.
Chinese capital’s growing impact on Western hotels
Chinese companies have been increasing their investment in the Western hotel industry, writes HNN’s Terence Baker. Some recent developments include Anbang Insurance Group’s attempted acquisition of Starwood Hotels & Resorts Worldwide and HNA Group’s purchase of Carlson Hotels.
To better illustrate Chinese investment over the years, Baker compiled a timeline highlighting some of the most notable developments, starting with former U.S. President Richard Nixon’s trip to China to meet with Chairman Mao Zedong in 1972.
STR: Asia/Pacific hotel pipeline for March 2017
The March 2017 Pipeline Report by STR, HNN’s parent company, shows the Asia/Pacific region reported 583,054 rooms in 2,611 projects under contract, a 1.6% year-over-year decrease in rooms under contract. The region reported 267,986 rooms in 1,169 projects in construction, representing a 4.1% year-over-year increase.
The upscale segment saw the largest portion of rooms in construction, making up 26.7% of the total amount with 71,631 rooms. The upper upscale segment came in second with 66,360 rooms, or 24.8%.
Starwood Capital, China's Shimao announce partnership
Chinese property developer and operator Shimao Property Holdings has partnered with Starwood Capital Group to create a new joint venture in China, according to a news release. The joint venture will develop, operate and brand assets through management and leasing agreements.
"We believe that this partnership will benefit from Starwood Capital Group's global investment expertise and world-class marketing and revenue-management capabilities, together with Shimao's impressive domestic development track record, strong brand recognition and expansive partner network,” said Kevin Colket, managing director and head of hotels for Asia at Starwood Capital Group. “As one of the world's fastest-growing economies, with a large and growing middle class with increasing disposable income, China represents an exciting market for us, and we are looking forward to meeting Chinese consumers' rapidly evolving lodging needs through this partnership."
Dusit, Colours International form Japan joint venture
Thailand’s Dusit International joined with Japans’s Colours International to form joint-venture company Dusit Colours, according to a news release. The joint venture will develop and operate Dusit-branded hotels and hotel management-related education in Japan.
Dusit Colours will focus on Japan’s major cities, such as Kyoto, for the Dusit Thani brand as well as dusitD2, DusitPrincess and Dusit Devarana.
“In the next three years we aim to broaden our portfolio to have more than 50% of our operations outside of Thailand, and entering key markets such as Japan will be essential to reaching this goal,” said Suphajee Suthumpun, group CEO of Dusit International and director of Dusit Colours. “We are delighted to partner with Colours International for this joint venture. Their local expertise and knowledge will prove invaluable as we explore projects designed to delight visitors and residents alike in Kyoto.”
Deals and developments
- Hilton signed six management agreements with Melwa Hotels & Resorts in Sri Lanka to manage the Hilton Kandy Resort, the Hilton Yala Resort & Spa, the Hilton Kosgoda Resort, the DoubleTree by Hilton Nuwara-Eliya, the DoubleTree by Hilton Colombo International Airport and the DoubleTree by Hilton Negombo.
- Louvre Hotels Group and parent company Jin Jiang International have partnered with Magnuson Hotels to launch a new distribution platform for 8,000 properties worldwide.
- Marriott International sold the Westin Maui for $317 million to Trinity Investments and Oaktree Capital Management while still managing the property.
- TCC Assets and Frasers Centrepoint will develop a $3.5-billion destination site in Bangkok that includes five luxury hotels.
- Tribe Hotel Group, a new brand in Australia, is opening its first property, the 126-room Tribe Perth, in May 2017.
- Centara Hotels & Resorts signed a new management agreement with Muthaafushi Orient Investments and Well Land Investment to manage and operate the new Centara Grand Muthaafushi Resort & Spa Maldives.
- Hyatt Hotels Corporation announced the opening of the 101-room Hyatt Place Rameswaram in Tamil Nadu, India.
- InterContinental Hotels Group opened the 202-room Holiday Inn Chennai OMR IT Expressway, its fifth property in Chennai, India.
- Paramount Corp will build a Mercure Hotel at its university metropolis township in the city of Shah Alam, Malaysia.
- PT MNC Land Tbk and Hyatt Hotels Corporation will launch a Park Hyatt hotel at the MNC Center, Kebon Sirih, in Jakarta, Indonesia.
Compiled by Bryan Wroten.