In this week’s roundup of news from the Asia/Pacific region: HNA Group to sell Hilton stock; IHG acquires stake in Regent; China Lodging Group to grow portfolio; 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.
What sale of HNA’s stake could mean for Hilton stock
China’s HNA Group is readying itself to sell off some or all of its 26.1% stake in Hilton, according to a recent SEC filing. The company similarly sold off its shares of Hilton spinoffs Park Hotels & Resorts and Hilton Grand Vacations.
Amanda Sweitzer, senior research associate at Baird, said it appeared pressure from the Chinese government was the reason behind the company’s decision to sell off its stocks and assets despite Hilton’s stock performing well since HNA Group first acquired the stake in October 2016.
Hilton announced Monday it will repurchase 10 million of its own stock from an HNA Tourism Group affiliate making a secondary offering of Hilton shares. Pricing for the deal had not been set at the time.
STR: Asia/Pacific hotel performance for February 2018
According to data from STR, parent company of HNN, hotels in the Asia/Pacific region reported mixed results in February 2018. Occupancy fell 1.8% to 67.1%, but average daily rate jumped 9.4% to $118.17, resulting in revenue per available room growth of 7.5% to $79.25.
South Korea’s occupancy dropped 13.1% to 58.2% while its ADR grew 3.3% to 153,177.72 South Korean won ($153.18), which resulted in RevPAR falling 10.2% to 89,196 South Korean won ($89.20).
In Thailand, hotel occupancy grew 3.9% to 88.9% and ADR jumped 4,619.38 Thai baht ($148.28), which combined to grow RevPAR by 19.1% to 4,106.80 baht ($131.83).
IHG gets luxury Regent flag to sit atop brand pyramid
InterContinental Hotels Group acquired a majority stake in Regent Hotels & Resorts, paying $39 million in cash for a 51% stake in the six-asset brand, reports HNN’s Terence Baker. IHG will make its payments in three tranches with the last due in 2024. It has the option of purchasing the remaining shares through a “phased manner from 2026.”
Regent Hotels & Resorts will fit in the “upper luxury segment” above the InterContinental brand, an IHG spokesperson said in a statement.
“The Regent brand has tremendous heritage and will help us to capitalize on the clear growth opportunity we’ve identified in the luxury market,” the statement said.
Dusit launches millennial brand ASAI
Thailand’s Dusit International launched a new brand, ASAI Hotels, aimed at millennial-minded travelers, according to a news release. ASAI Hotels will have compact rooms, a large mixed-use space for both work and leisure as well as a restaurant curated by local chefs.
The company will debut its new brand in the first quarter of 2019 in the Chatuchak Market in Bangkok. There are another five properties in the pipeline.
STR: Global hotel inventory has grown 18% in 10 years
In marking the 10-year anniversary of STR launching its international business, the company reports that global guestroom inventory grew 17.7% in the past 10 years. In 2008, STR reported there were 170,047 hotels representing 14.4 million guestrooms. As of January 2018, the number of hotels grew to 184,299 and guestrooms grew to 16.9 million.
“The hotel sector and its rate of return continue to attract real-estate investors—that is evident through the substantial growth in performance metrics and development we have seen over the past decade,” said Robin Rossmann, STR’s international managing director. “While the story is rarely the same for any two markets around the world, the industry as a whole continues to perform at robust levels, and we expect continued growth over the coming years.”
China Lodging sets sights on further pipeline growth
China Lodging Group reported 15% revenue-per-available-room growth during the fourth quarter of 2017, reports HNN’s Bryan Wroten. The company opened 86 leased and 579 manachised and franchised hotels in 2017. By the end of the year, the company had 671 leased, 2,874 manachised and 201 franchised hotels in operation across 378 cities, combining for a room count of 379,675, a 14.6% year-over-year increase.
“The hotel pipeline remains robust, standing at 696 at the end of 2017,” CEO Jenny Zhang said. “That’s a 57% year-over-year (growth) increase from the end of 2016.”
Deals and developments
- Hilton made its debut in Mandalay, Malaysia, with the opening of the 231-room Hilton Mandalay.
- Thailand’s Singha Estate will launch a real estate investment trust by 2020 and sell its S Hotel and Resorts and Suntowers buildings to the REIT.
- Hong Kong’s Rosewood Hotels & Resorts opened its first tented villa concept with the 23-key Rosewood Luang Prabang.
- Thailand’s Singha Estate Public Company entered into a franchise agreement with Hilton to open a 198-room boutique resort that will join the Curio Collection by Hilton.
- Movenpick Hotels and Resorts will expand its portfolio in the Thai market by managing the 96-room Movenpick Asara Resort and Spa Hua Hin, the 111-key Movenpick Resort Khao Yai and the Movenpick Resort Mai Khao.
- Banyan Tree Hotels & Resorts announced the opening of the Angsana Zhuhai Phoenix Bay in Zhuhai, Guandong Province, China.
- Singapore’s Travelodge Hotels (Asia) will open the 203-room Travelodge Central Market and the 168-room Travelodge Bukit Bintang, both in Kuala Lumpur.
- Red Planet Japan, a subsidiary of Bangkok’s Red Planet Hotels, announced a $111 million sale-and-leaseback transaction with Goldman Sachs for its four hotels in Asakusa, Naha, Nagoya and Sapporo in Japan.
- Choice Hotels International entered into a franchise agreement with SAC Nominees in Singapore for the 204-room Ingot Hotel Perth, which will join the Ascend Hotel Collection.
- The 300-room Holiday Inn Vana Nava Hua Hin in Thailand has opened as the first Holiday Inn water park resort in Asia.
Compiled by Bryan Wroten.