In this week’s roundup of news from the Asia/Pacific region: dispatches from HotelsWorld and Q2 performance data.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
Day One of HotelsWorld focused on design, brand options
“Experience” and “unique” were two of the most used words during discussions at the opening day of HotelsWorld in Sydney, reports HNN’s Jeff Higley. Developers and investors have kept an eye on boutique and lifestyle hotels in the luxury and upper-upscale segments, particularly in Australia, which has 3,272 luxury rooms and 15,000 upper upscale rooms under contract, according to data from STR, parent company of HNN.
However, investors should take care as they look at developing lifestyle and soft brand opportunities, said Abhijay Sandilya, senior director of development for InterContinental Hotels Group.
“Everything in the investment spectrum, you look at it from a risk and reward matrix,” Sandilya said. “Lifestyle brands, as they penetrate the Australian market, are going to attract a high-risk profile. … The good part is that these brands have proven themselves in overseas markets.”
HotelsWorld Day Two: Investors like Australia’s options
The performance of hotels in Australia and New Zealand are attracting the interest of developers and investors, reports HNN’s Higley from Day Two of HotelsWorld. The two countries have mirrored performance in the rest of the region, he reports, and it’s likely that trend will continue.
“The amount of supply has become more certain—it has advanced through the process,” said Dean Dransfield, managing director of Dransfield Hotels and Resorts. “We have more rooms under construction; we have more proposal activity.”
Lindsay Leeser, VP of development-Pacific for AccorHotels, said the company has expansion plans for Australia.
“We’re seeing some good opportunities for further development,” Leeser said. “What’s really pleasing when you look across the country … is there has been a lot of investment now by the government, but also the private sector, into infrastructure, into tourism events.”
STR: Asia/Pacific hotel performance for Q2 2018
Hotels in the Asia/Pacific region reported positive year-over-year performance during the second quarter, according to data from STR. Occupancy rose 1% to 70.4% and average daily rate grew 3.1% to $105, combining for revenue-per-available-room growth of 4.1% to $73.95.
Hotels in Australia reported occupancy growth of 1.3% to 73.2% during the quarter. ADR grew by 1.5% to 178.57 Australian dollars ($132.48), and RevPAR grew by 2.8% to AU$130.71 ($96.97).
The Indonesian hotel industry reported 2.5% growth in occupancy to 60.6%, ADR growth of 3.5% to 1,039,439.08 Indonesian rupiahs ($103.94) and RevPAR growth of 629,692.74 rupiahs ($62.97).
Hotels in Singapore reported 2.9% occupancy growth to 81.3% with ADR growth of 0.9% to 263.58 Singapore dollars ($193.15), leading to an increase of 3.8% in RevPAR to SG$214.39 ($157.10).
Deals and developments
- Hong Kong’s Gaw Capital Partners has acquired Hospes Hotel Group, a boutique hotel brand out of Spain.
- Singapore-based CDL Hospitality Trusts has started to renovate the 656-room Orchard Hotel Singapore. A makeover of its café and ground floor lobby is expected to be complete by October 2018 and renovation for the guestrooms, ballroom and meeting spaces will roll out in phases between the fourth quarter of 2018 and first quarter of 2019.
- Marriott International has debuted its Renaissance brand in Northwest China with the opening of the 403-room Renaissance Xi’an Hotel.
- United Kingdom-based 90 North Real Estate Partners acquired the 82-room Quest Springfield Central for AU$24.3 million ($18.04 million) in Queensland, Australia.
- Shimao Star Hotels Group, the joint venture between China’s Shimao Group and Starwood Capital Group in the U.S., will launch its first Yuluxe hotel, the 294-room Yuluxe Hotel Chengdu, with an opening scheduled for August 2018.
Compiled by Bryan Wroten.