In this week’s roundup of news from the Asia/Pacific region: Hyatt’s focus on China; Sri Lanka’s pricing power; regional Q1 performance; 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.
Hyatt identifies China as key for future growth
During Hyatt Hotels Corporation’s first-quarter earnings call, President and CEO Mark Hoplamazian said he views China as one of the company’s main drivers of future growth because of the opportunities to grow its franchising business, reports HNN’s Sean McCracken.
“We now have 58 hotels or approximately 19,000 rooms in Greater China, which represent approximately 10% of our systemwide base of hotel rooms today,” he said. “While growing our presence in China, we've built a reputation for excellence in the experience we provide high-end travelers, including unique strength in our food and beverage offerings.”
Pricing power persists in Sri Lankan hotel industry
The Sri Lankan hotel industry reported mixed performance in 2017 as record room demand and average daily rates countered declining occupancy rates because of new supply coming online, writes STR’s Jesper Palmqvist and Jan Freitag. Data from STR, parent company of HNN, shows new supply grew by 6.8% while demand remained flat year over year.
“It will be interesting to observe the continued pricing power of Sri Lankan hoteliers as new supply enters the island and new competitors open in the major markets,” the two write.
Gold Coast hotels see growth for Commonwealth Games
Hoteliers on Australia’s Gold Coast reported a “substantial performance uplift” as a result of the 2018 Commonwealth Games, according to data from STR. ADR grew 347.38 Australian dollars ($258.87), a 76.7% increase over the same 12-day period in 2017. Revenue per available room grew by more than 100% most nights of the event, reaching its peak 4 April of AU$294.26 ($218.28), a 205% year-over-year increase.
STR: Asia/Pacific hotel performance for Q1 2018
The Asia/Pacific region reported positive year-over-year performance in the three key metrics during the first quarter of 2018, according to data from STR. Occupancy grew 1.5% to 69% while ADR grew by 3% to $112.48, combining for RevPAR growth of 4.5% to $77.69.
Hong Kong reported occupancy growth of 3.9% to 90.1%, the first time the STR database on Hong Kong reported occupancy above 90%. ADR grew 10.7% to 1,482.02 Hong Kong dollars ($188.81), and RevPAR grew 14.9% to HK$1,335.10 ($170.09).
Occupancy in Vietnam grew 5.9% to 75.7% even with supply growth of 4.3%. ADR grew by 5.5% to 2,917,007.93 Vietnamese dong ($128.09) and RevPAR grew by 11.7% to 2,208,814.66 Vietnamese dong ($96.99).
5 focus areas for drawing Chinese guests to your hotel
Wyndham Hotel Group’s brand leader in China outlined ways to attract Chinese travelers, reports HNN’s Robert McCune. Leo Liu, Wyndham’s president and managing director of the Greater China region, told attendees of the recent Wyndham brand conference they should focus on language, food and beverage, slippers, retail-focused tech and electronic pay.
“Chinese (guests) cannot go without their phone. They can go out without their wallets, but the phone is a must,” Liu said. “When those Chinese travelers come … with the currency changes, with their languages … if we can install that electronic payment, that is definitely another so-critical element to drive Chinese travelers. Japanese or Asian countries, they are doing that so well.”
Why Dusit is targeting millennial travelers with ASAI
Dusit International launched a new brand, ASAI Hotels, with millennials in mind, reports HNN’s Terence Baker. The brand will feature large, communal, mixed-use lobbies, small rooms approximately 161 square feet in size, design that incorporates local elements, showers instead of baths and restaurants influenced by local chefs.
“Making over 190 million trips per year, millennials alone account for 20% of international tourist arrivals,” said Siradej Donavanik, managing director of ASAI Holdings. “This figure is expected to rise to nearly 300 million by 2020, so now is the perfect time to launch a brand that caters to this fast-growing market.”
Deals and developments
- Thailand’s Six Senses Hotels Resorts Spa debuted in Singapore with its first-ever city hotel, the 49-key Six Senses Duxton.
- Wyndham Hotel Group opened its first hotel in Kuala Lumpur, Malaysia, with the 107-room Ramada Suites Kuala Lumpur City Centre. Four more Wyndham properties are scheduled to open in Malaysia by the end of 2019.
- AccorHotels Group opened its first Mercure-branded hotel in Karamy, Xinjiang, China, with the 128-room Mercure Karamy.
Compiled by Bryan Wroten.