In this week’s roundup of news from the Asia/Pacific region: Capella’s expansion plans; eliminating plastic straws; China Lodging Group’s strong Q1 2018; 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.
Capella planning rapid growth and a third brand
Singapore-based Capella Hotel Group plans to expand, opening three hotels in the next eight months and introducing a third brand, HNN contributor Harvey Chipkin writes. CEO Nicholas Clayton said Asia is a “ripe market” for tourism.
The company intends to open a hotel in Bali in June, another in Sanya, China, in October and one in Bangkok in early 2019. The third brand, named Patina, will be a luxury lifestyle hotel. It will debut in Sydney in 2020.
Hilton to eliminate plastic straws at its APAC hotels
Hilton will eliminate plastic straws from its managed hotels in the Asia Pacific region by the end of the year, according to a company news release. It will also transition away from plastic bottles at its conference and event spaces.
The company also pledged to double the amount it spends on local and minority-owned suppliers, according to the release. It will also double its investments in programs that help women and youth around the world.
“As a global hospitality company operating more than 5,300 hotels in over 100 countries and territories, we are committed to have a positive impact on the communities we operate our hotels in,” said Alan Watts, executive president and president, Asia Pacific at Hilton, in the news release. “We believe waste is a solvable problem. By focusing first on plastic straws and plastic bottled water, we take another step forward in our journey to ensure that the destinations where travelers work, relax, learn and explore are vibrant and resilient for future generations to come.”
Thailand’s Minor ups stake in NH Hotels to 8.6%
Thailand-based Minor International increased its stake in NH Hotels Group by acquiring 30 million shares of the company, a transaction valued at €192 million ($225 million), according to a news release. The acquisition of shares brings Minor’s stake in NH Hotels up to 8.6%.
“This investment represents a significant milestone for Minor Hotels,” said Dillip Rajakarier, CEO Minor Hotels, in the news release. “We are excited by the opportunity to accelerate our global exposure with our investment in NH Hotel Group, which has a highly complementary business and asset portfolio to MINT. The investment is financially attractive, with high liquidity on the Madrid Stock Exchange and proven performance by the business.”
STR: Asia/Pacific hotel performance for April 2018
Hotels in the Asia/Pacific region reported positive year-over-year performance during the month of April 2018, according to data from STR, parent company of HNN. Occupancy grew 1.5% to 73.2% and average daily rate increased by 3.2% to $110.37, leading to revenue-per-available-room growth of 4.7% to $80.77.
In India, occupancy grew by 2% to 67%. ADR grew 4.4% to 5,734.42 Indian rupees ($86.59). RevPAR jumped 6.5% to 3,844.59 rupees ($58.05).
New Zealand saw occupancy dip by 0.4% to 81.3%, but ADR grew by 0.5% to 184.20 New Zealand dollars ($129.52), resulting in RevPAR growth of 0.1% to NZ$149.76 ($105.25).
Hilton partners with China’s Country Garden
Hilton has entered into a strategic partnership with Shanghai’s Country Garden Hotels Group, according to a news release. The deal will allow Hilton to manage many of Country Garden Hotels’ properties, mostly under the DoubleTree by Hilton and Hilton Garden Inn brands.
“Country Garden is a widely admired property developer and we are thrilled to be extending our partnership with them,” Hilton President and CEO Chris Nassetta said in the release. “Ultimately, our goal is to provide exceptional experiences to our guests wherever they may be, and through this partnership, we have an opportunity to bring Hilton's signature hospitality to even more locations across the country.”
China Lodging focuses on midscale, RevPAR growth
Shanghai-based China Lodging Group executives touted the company’s strong year-over-year performance in Q1 2018 during the company’s earnings call, writes HNN’s Bryan Wroten. RevPAR grew 13.7%, net revenue rose 29.6%, operating income margin increased from 10.7% to 14.7% and adjusted earnings before interest, taxes, depreciation and amortization grew from 23.5% to 26.8%.
The company plans to continue growing its midscale and upscale presence, citing the increase in room count in those two segments from 63,442 rooms in Q1 2017 to 122,074 rooms in Q1 2018. The pipeline for both segments has increased by 136% to approximately 61,500 rooms as of the first quarter 2018.
Deals and developments
- Singapore-based Ascendas Hospitality Trust acquired South Korea’s 215-key KY-Heritage Hotel Dongdaemun for 72.1 billion South Korean won ($67.2 million), marking Ascendas’ first entry into the country.
- Marriott International debuted its Renaissance brand in Indonesia with the 207-key Renaissance Bali Uluwatu Resort & Spa.
- AccorHotels opened its first Fairmont-branded property in the Maldives with the 112-key Fairmont Maldives Sirru Fen Fushi on Gaakoshibee Island, Shaviyani Atoll.
Compiled by Bryan Wroten.