In this week’s roundup of news from the Asia/Pacific region: supply growth in China; Wyndham’s growth plans in China; STR Q2 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.
How outsized supply growth is affecting Chinese hotels
Chinese hotel performance follows the country’s general economy, and China’s economic growth has slowed (though still healthy), which means the supply in China is now outpacing demand, writes STR’s SVP of Lodging Insights Jan Freitag. STR is the parent company of HNN.
“The trajectory of demand growth seems to be pointing at much slower growth across the board, a fact that may not inflict much pain on the lower-end hoteliers since their supply increases are much more manageable,” Freitag writes. “But the higher-end hotels will have to contend with rapidly developing new competition. This does not bode well for the future of high-end hotels in China.”
Wyndham to open 500 China hotels in next three years
Wyndham Hotels & Resorts announced it will open 500 hotels in Greater China over the next three years, according to a news release. The company currently has 1,500 hotels representing 149,000 rooms in the country.
“We have sustained our strong growth momentum and delivered robust hotel opening and net rooms growth figures in China,” said Leo Liu, president of Wyndham Hotels & Resorts, Greater China. “Working closely with owners and developers in the region, we are striving to further expand our presence across Greater China, especially in Hong Kong and in the northern and southwestern parts of China, where there is rapid growth and strong potential for further expansion of our footprint.”
Raffles Singapore reopens following 30-month renovation
The Raffles Singapore announced its reopening after a 30-month renovation project that grew its all-suite room count from 103 to 115, according to a news release.
“There are few hotels in the world whose names have become virtually synonymous with the cities in which they are located—and none more so than the Raffles Hotel in Singapore. The newly restored Raffles will provide an experience like no other,” Raffles Singapore GM Christian Westbeld said. “It is our wish and desire that our guests will continue to create treasured memories at the hotel, while rediscovering what makes it so special—the distinctive architecture, heritage and legendary service.”
STR: Asia/Pacific hotel performance for Q2 2019
Hotels in the Asia/Pacific region reported negative year-over-year results across its three key performance metrics during the second quarter, according to data from STR. A drop in occupancy of 1% to 69.1% paired with a dip in average daily rate of 0.7% to $97.32 resulted in a decrease of 1.6% in revenue per available room to $67.25.
Hotels in Jakarta, Indonesia, reported occupancy fell 6.7% to 51.4%. While ADR grew by 1.9% to 1,028,317.03 Indonesian rupiah ($72.46), because of the drop in occupancy, RevPAR declined by 4.9% to 528,620.82 rupiah ($37.25).
Hotels in Manila, Philippines, reported mostly positive results. While occupancy dipped by 1.1% to 66.9%, ADR grew by 3.9% to 5,247.14 Philippine pesos ($100.87), resulting in RevPAR increasing by 2.8% to 3,510.40 Philippine pesos ($67.48).
Deals and developments
- The Thailand-based Siam Resorts Company, a subsidiary of Malaysia’s TA Global Berhad, acquired the 268-key Four Points by Sheraton Bangkok in Thailand for 2.2 billion Thai baht ($72.6 million).
- French fund manager AXA IM – Real Assets announced it acquired the 160-room Red Planet Hiroshima Nagarekawa Hotel for $43 million.
- New Zealand-based sovereign wealth fund New Zealand Super Fund invested 300 million New Zealand dollars ($193.8 million) in a hotel portfolio managed by New Zealand’s Russel Group and Lockwood Group.
- Singapore’s Naumi Hotels acquired the 14-key Central Ridge Boutique Hotel in Queenstown, New Zealand, for an undisclosed amount.
- Singapore-based Datapulse Technology Limited through its subsidiary entered into a shareholder agreement with PAM Holdings I and PAM Holdings II to acquire the 314-key Bay Hotel Singapore for 235 million Singapore dollars ($172.2 million).
Compiled by Bryan Wroten.