In this week’s roundup of news from the Asia/Pacific region: insights into Chinese traveler booking and spending; IHG’s acquisition of Six Senses; bleisure and experiential travel in India; and more.
How outbound Chinese travelers book, spend
The number of Chinese travelers continues to grow, and hoteliers are trying to figure out the best way to capture their demand, writes HNN’s Terence Baker from the Gulf & Indian Ocean Hotel Investors’ Summit.
Panelists pointed out that social media plays a large part in the lives of Chinese citizens, especially for travel, and one of the main platforms they use is WeChat.
“(Hoteliers) must master it, and (WeChat) is Instagram, Facebook, Twitter all in one,” said Stefan Leser, CEO of Langham Hospitality Group. “Know who are the influencers and that it is a 24/7 activity, because without this insight it is impossible to do a campaign.”
IHG buys Six Senses as new niche atop luxury portfolio
InterContinental Hotels Group acquired another luxury hotel brand, Six Senses Hotels Resorts Spas, from Greenwich, Connecticut-based Pegasus Capital Advisors for $300 million, writes HNN’s Baker. A non-real estate deal, the acquisition of Bangkok-based Six Senses has the company’s management and portfolio of 16 hotels join IHG as well as the 18 management contracts it has in the pipeline and another 50 active discussions.
“The sale will only make Six Senses stronger,” said Bernhard Bohnenberger, president of Six Senses. “IHG is a world-class hospitality company, and the sale provides Six Senses with access to a dynamic group of business experts, plus additional tools, systems and analytics.”
Bleisure, experiences enhance India’s non-urban hotels
The standard of living and disposable income have both increased in India, which translates into the rise of bleisure and experiential travel in the country, writes HNN contributor Chitra Balasubramaniam.
“Research shows that business travelers who spend between 3,000 Indian rupees ($42) to 5,000 rupees ($70) are willing to spend 15% to 20% more to enjoy an extended weekend and extended holidays,” said Rattan Keswani, deputy managing director of Lemon Tree Hotels and director of Carnation Hotels. “Hospitality majors are sharpening their focus on the growing leisure segment and looking to add resorts to their portfolio.
The top countries by 2019 projected room openings
The Asia/Pacific region has the highest number of projected room openings in 2019 compared to Europe, the Middle East/Africa and the Americas (excluding the United States), according to data from STR, parent company of HNN.
The pipeline in China led the region with 82,559 guestrooms, representing 43.9% of the region’s pipeline. Japan followed with 25,330 rooms, representing 13.5%. Indonesia has 16,678 rooms (8.9%), Vietnam has 13,181 rooms (7%) and India has 8,932 rooms (4.7).
Deals and developments
- Singapore-based Hotel Royal Limited will acquire the Royale Chulan Bukit Bintang Hotel from Malaysia-based Boustead Hotels & Resorts for 65 million Singapore dollars ($48.2 million).
- India-based OYO Hotels and Homes has plans to grow its presence within Southeast Asia thanks to an investment of $800 million from Japan-based SoftBank Group, Canada-based Lightspeed, U.S.-based Sequoia Capital and U.S.-based Greenoaks Capital.
- A group of Chinese investors has acquired the Travelodge Hotel in Rockhampton from Australia’s Tucker Box Hotel Trust for 6.5 million Australian dollars ($4.6 million).
- Japan’s Red Planet Japan will acquire the Thailand-based hotel operations from its parent company, Red Planet Hotels Limited for 6.6 billion Japanese yen ($60.4 million).
Compiled by Bryan Wroten.