In this week’s roundup of news from the Asia/Pacific region: July 2018 performance; an acquisition by Gaw Capital Partners; hotel design 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.
STR: Asia/Pacific hotel performance for July 2018
Hotels in the Asia Pacific region reported mixed year-over-year results for the month of July 2018, according to data from STR, parent company of HNN. Occupancy dipped by 0.2% to 73.6%, but average daily rate grew by 1.6% to $104.16, resulting in revenue per available room growth of 1.3% to $76.65.
In Shanghai, supply growth (3.5%) outpaced demand (0.7%), resulting in a drop in occupancy of 2.7% to 76.5%. While ADR grew by 0.5% to 606.69 Chinese yuan ($90.03), RevPAR fell by 2.2% to 463.94 yuan ($68.85).
Similarly in Bangkok, supply growth (1.2%) mixed with a slip in demand (-0.1%) resulted in a 1.3% decline in occupancy to 79.7%. However, ADR grew by 4.5% to 3,336.85 Thai baht ($101.77), resulting in RevPAR growth of 3.1% to 2,660.09 baht ($81.13).
Huazhu Hotels Group makes headway with strategic focus
Huazhu Hotels Group reported a solid second quarter, citing strong performance at its hotels and a growing portfolio, reports HNN’s Bryan Wroten. CEO Jenny Zhang cited the continuing growth of Chinese consumers’ domestic travel spending as one of the reasons behind the company’s success.
“Therefore, we are confident that the travel demand has driven by general economy, increased affluence in the society and the lifestyle change in this country will continue to grow robustly and exceed the growth rate in retail sales,” she said. “Therefore, we are not significantly concerned about some of the recent trends in the consumer retail sales growth fluctuation.”
Gaw buys two-hotel mixed-use property in Melbourne
Hong Kong-based Gaw Capital Partners acquired the Bell City mixed-use development for 157 million Australian dollars ($112.7 million) in Melbourne, Australia’s, Preston precinct, according to a news release. The company purchased the development through its funds under management and its hospitality arm, GCP Hospitality.
The Bell City development includes two hotels totaling 844 guestrooms under the Mantra and BreakFree brands as well as a conference complex, commercial tenancies, a car park and serviced offices.
“We are excited about the opportunities this acquisition presents,” said Kenneth Gaw, president and managing principal of Gaw Capital Partners, in the news release. “In addition to giving us a foothold in the Melbourne market, this major hospitality asset will allow us to effectively roll out multiple concepts within the same project. After this acquisition, we look forward to further expansion opportunities in the Australia market.”
Simplicity, ingenuity take center stage for designers
Hotel designers are looking for ways to maximize revenue-producing space while being responsible to the environment and enhancing the guest experience, reports HNN’s Jeff Higley from the recent HotelsWorld in Sydney. Designers are working to adjust to the changing demographics of hotel guests while making sure they meet more than just guests’ basic needs.
It’s proving a challenge to keep up with a trend toward “affordable luxury in many aspects of life, including hotels,” Higley reports.
“(It’s) really very much about thinking about the experience as opposed to sort of opulent materials,” said Jeffery Copolov, director of interior design for Bates Smart. “On the whole, the use of sort of garish and opulent materials is (no longer desired). We see a much more sophisticated clientele, and a much more worldly clientele ... there’s as much beauty in a simply painted interior, for instance, than a heavily marble-lined interior.”
Deals and developments
- Singapore-based KOP Limited has entered into a joint venture with Chinese state-owned enterprises Shanghai Lujiazui Development and Shanghai Harbour City Development to form Shanghai Snow Star Properties to develop a ski resort, Wintastar Shanghai, that includes four themed hotels for 1.2 billion Singapore dollars ($871.6 million).
- Marriott International has opened its first W Hotel in Malaysia with the 150-room W Hotel Kuala Lampur.
- Wyndham Hotel Group opened its first Wingate by Wyndham in Sanya City, China, with the 190-room Wyndham Sanya Luhuitou.
- Australia’s ErdiGroup has sold the 179-room Hotel Urban Brisbane to Facilimate Pty for AU$31 million ($22.3 million).
- Australia-based BPM sold its 241-room hotel that is still under development in Melbourne to India’s InterGlobe Enterprises for AU$91 million ($65.31 million).
- Hyatt Hotels Corporation has opened its first Japanese beach resort, the 344-room Hyatt Regency Seragaki Island Okinawa.
- Singapore’s TCRE Partners acquired the 41-room boutique Wangz Hotel for S$46 million ($33.5 million).
- Marriott International opened its first complex hotel in Fujian Province, China, with the 537-room Marriott & Courtyard Xiamen Haicang.
Compiled by Bryan Wroten.