In this week’s roundup of news from the Asia/Pacific region: luxury hotel development in India; STR performance data; 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.
Luxury development returns to India as demand grows
Though new hotel supply over the last 10 years in India mainly fell in the budget and midscale segments, there’s now renewed interest in developing higher-end hotels in the country, reports HNN contributor Chitra Balasubramaniam.
“The Indian hotel industry for most part of this decade, similar to it counterparts in the West, had focused on standardizing hotels across all segments to cater to the burgeoning demand of travelers,” said Akash Datta, SVP of consulting and valuations in the New Delhi office of HVS. “While standardization in hotels across segments will continue to grow, in the luxury space the Indian diaspora is pushing for more experiential stays. We anticipate more such players to enter the (luxury) market as price points in the segment can be very attractive.”
Hyatt, BTG Homeinns announce joint-venture brand UrCove
Hyatt Hotels Corporation and BTG Homeinns Hotels Group announced the name of its new joint-venture brand, UrCove, according to a news release. The two companies teased the creation of a new brand back in February. UrCove will compete in the upper-midscale segment and is aimed at Chinese travelers within China.
“As we commemorate our 50th year in Asia Pacific and Greater China region, we are committed to maximizing our core business to drive purposeful growth and cater to the high end travelers of every segment we serve,” said Stephen Ho, president of Greater China, global operations, Hyatt, in the release. “Given China’s growing economic importance and the phenomenal growth of its middle-class segment, the UrCove brand strengthens our representation in the underserved upper-midscale segment, and we believe that this locally developed brand will advance our commitment to this important market.”
STR: Asia/Pacific hotel performance May 2019
Hotels in the Asia Pacific reported positive year-over-year performance in May 2019, according to data from HNN’s parent company, STR. Occupancy grew by 0.4% to 68.5% and average daily rate increased by 1.1% to $96.53, resulting in revenue per available room growth of 1.5% to $66.15.
Hotels in Auckland, New Zealand, reported negative results during the month. Occupancy declined by 4.2% to 78.2%, which combined with a 6.3% decrease in ADR to 178.04 New Zealand dollars ($119.68), led to a 10.2% drop in RevPAR to NZ$139.18 ($93.56).
Hotels in Sydney also reported negative results. Occupancy dipped by 0.9% to 81.8%, and ADR dropped by 2.7% to 208.98 Australian dollars ($147.10), resulting in a RevPAR drop of 3.6% to AU$170.91 ($120.30).
Deals and developments
- South Korea’s Hana Financial Investment Company, NH Investment & Securities Company and Meritz Securities Company jointly acquired the 579-room Hilton Vienna in Austria for $375 million.
- India’s OYO Hotels and Homes intends to commit $50 million to gain 20,000 guestrooms in 10 Vietnamese cities by the end of 2020.
- Alpha Asia Macro Trends Fund II, which is managed by Singapore’s Alpha Investment Partners, sold the 241-room Ibis Singapore Novena for almost 170 million Singapore dollars ($125.3 million).
- Thailand-based MHMA Hotels & Resorts, a third-party management company, announced its rebranding to Cross Hotels and Resorts.
- Japan’s Belluna Honolulu acquired the 92-room Ewa Hotel Waikiki for $19.6 million.
Compiled by Bryan Wroten.