In this week’s roundup of news from the Asia/Pacific region: Asia/Pacific hotels' 2018 performance; lavish weddings in India; Jin Jiang’s plans for Radisson; 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 2018 hotel performance
Hotels in the Asia/Pacific region reported positive year-over-year performance for full-year 2018, according to data from STR, parent company of HNN. Occupancy grew by 0.2% to 70.6% and average daily rate grew 1% to $106.99, resulting in revenue per available room growth of 1.2% to $75.53.
Hotels in Singapore reported a 3.1% increase in occupancy to 83.7%, which combined with 0.7% ADR growth to 271.49 Singapore dollars ($200.76) led to a 3.8% increase in RevPAR to SG$227.35 ($168.12).
Hotels in Ho Chi Minh City in Vietnam saw occupancy decrease by 1.8% to 73.4%, but ADR grew by 7% to 2,637,846.90 Vietnamese dong ($113.73), resulting in RevPAR growth of 5.1% to 1,936,823.10 Vietnamese dong ($83.51).
Four Seasons to open $400m Okinawa resort
Four Seasons Hotels & Resorts will open a $400-million resort on Okinawa with developer Berjaya Okinawa Development, according to a news release. The property will rest on 100 acres of beachfront and is close to tourist attractions.
“We are proud to continue our successful partnership with Berjaya Group with another exceptional project in Japan, extending our presence in the region and offering both guests and residents more chances to experience Four Seasons,” said Bart Carnahan, EVP, global business development at Four Seasons Hotels and Resorts, in the release. “Together with Berjaya, we will not only create the very finest resort and residences of the highest quality, but will also offer a level of unparalleled service, one that is synonymous with the name Four Seasons around the globe.”
AccorHotels to debut Orient Express brand in Bangkok
AccorHotels will open its first Orient Express-branded hotel in the King Power Mahanakhon Building in Bangkok, according to a news release.
AccorHotels Chairman and CEO Sébastien Bazin said, “Orient Express has always acted as a passport between worlds and a trip on these legendary trains was historical, touristic and cinematic with an inimitable experience. This linking of Occident and Orient, of history and modernity, and of curiosity and cultures will be a hallmark of the new Orient Express Hotels, and we are excited to bring back this spirit of luxurious adventure to today’s modern travelers.”
Hotels say ‘I do’ to lavish, profitable Indian weddings
Weddings in India are growing larger and more expensive, writes HNN contributor Chitra Balasubramaniam, and hoteliers are benefiting from this trend.
“Weddings are an important part of the (meetings, incentives, conventions and expositions) business for hotels. The MICE segment has historically contributed about 15% of the overall pie,” said Achin Khanna, managing partner at business consultancy Hotelivate.
“However, now with every passing year its contribution is growing. We are quite certain that on a pan-India level, it could be as much as a quarter of the business of big-box hotels,” he said.
Jin Jiang’s Radisson bid highlights capital differences
As of early December 2018, Shanghai’s Jin Jiang International Hotels sought complete ownership of Radisson Hotel Group, writes HNN’s Terence Baker, and this was after the company bought a 50.21% stake in the company from HNA Group the previous August.
“Of course, we knew that Jin Jiang had until the deadline of (11 December) to make an offer, or to sell down their ownership as per (Stockholm) stock exchange rules,” said Knut Kleiven, Radisson Hospitality’s deputy president and CFO. “(The stock exchange) is very clear on that. And so then they came in with this offer, and at the same time it was also announced the timing of the acceptance period. It is now the job of our independent committee of the board of directors to recommend a course of action to shareholders.”
Deals and developments
- Singapore-based Banyan Tree Hotels & Resorts announced the opening of 407-key Angsana Xishuangbanna, its first Angsana resort in Xishuangbanna, Yunnan Province and its fifth resort in China.
- Singapore-based hotel owner and operator Park Hotel Group opened its first property in Seoul, South Korea, the newly built 140-key Park Hotel Yeongdeungpo.
- Hilton announced the debut of its flagship brand in Da Nang with the opening of 223-key Hilton Da Nang, Vietnam.
- Singapore-based Oxley Holdings Limited wholly-owned subsidiary Oxley GEM Pte. Ltd. will sell its 518-room Mercure Singapore and 254-room Novotel Singapore for a total of 950 million Singapore dollars ($702.3 million).
- Singapore-based Ascott Residence Trust reached an agreement to sell its Ascott Raffles Place Singapore for SG$353 million ($260.9 million).
Compiled by Bryan Wroten.