In this week’s roundup of news from the Asia/Pacific region: bids for two Asian hotel companies; the influence of Chinese hotel companies, travelers; APAC pipeline 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.
Accor, CDL bids highlight appetite for acquisitions
Two hotel companies have made significant bids for two Asian hotel companies: Singapore-based real estate company City Developments Limited has offered to fully acquire Millennium & Copthorne Hotels for 3.2 billion Singapore dollars ($2.36 billion); and AccorHotels is attempting a non-binding takeover of Mantra Group in Australia for 1.2 billion Australian dollars ($932.03 million), writes HNN’s Terence Baker.
Millennium & Copthorne operates and owns 190 hotels in 22 countries under its Millennium, Coprthorne, Grand Millennium and M brands. Mantra operates more than 20,000 rooms in more than 125 properties in Australia, Indonesia and New Zealand.
Global influence of Chinese travelers, companies grows
Chinese hotel companies continue to reshape the global hotel industry, writes HNN’s Jeff Higley from the International Society of Hospitality Consultants annual conference in Bangkok, and the number of Chinese international travelers continues to grow.
“(Numbers) one through five (of the) most important trends are China,” said Mark Edleson, president of Two Roads Hospitality Asia, during the “Bird’s eye view: Leaders discussion.” “The outbound story, the domestic travel within China that didn’t happen 10 years ago, the outbound investment from China—all of those stories are transforming the industry globally.”
Joint venture spends $909m on Sheraton Grande Tokyo
A joint venture between Singapore’s sovereign wealth fund, GIC, and public hotel and residential J-REIT Invincible Investment Corporation will acquire the Sheraton Grande Tokyo Bay Hotel for about 100 billion Japanese yen ($909.1 million), according to a news release. GIC will hold the majority stake of 51%.
“Sheraton Grande Tokyo Bay Hotel, with its close proximity to Tokyo Disney Resort, has shown strong and resilient cash-flows,” said Lee Kok Sun, chief investment officer at GIC Real Estate, in the release. “As a long-term value investor, we are confident in the continued growth and demand in Japan. In partnership with Invincible Investment Corporation, we will seek to enhance the Sheraton Grande Tokyo Bay Hotel and support it in its next phase of growth. We have been investing in Japan for more than 20 years and are continually on the lookout for quality assets with stable cash-flow potential.”
STR: Asia/Pacific hotel performance for August 2017
The Asia/Pacific region reported positive year-over-year performance for its hotel industry in the month of August, according to data from STR, parent company of HNN. Occupancy grew 3.3% to 75.3% and average daily rate increased 2.3% to $99.98, combining for revenue per available room growth of 5.7% to $75.33.
Occupancy in Singapore grew 1.8% to 85.8% while ADR dropped 2.6% to 273.20 Singapore dollars ($201.46), resulting in a 0.8% decline in RevPAR to 234.28 Singapore dollars ($172.76). The growth of occupancy in Thailand by 2.3% to 80.9% and ADR of 3.5% to 3,440.35 Thai baht ($103.55) combined for RevPAR growth of 5.9% to 2,782.71 Thai baht ($83.76).
STR: Asia/Pacific hotel pipeline for August 2017
The August 2017 Pipeline Report by STR shows 622,666 rooms in 2,818 hotels under contract in the Asia/Pacific region, representing a 6.6% year-over-year increase in rooms under contract. The region reported 284,542 rooms in 1,239 projects in construction during the month, a 16.4% year-over-year increase.
Six countries in the region reported more than 10,000 rooms in construction. China reported 164,538 rooms in 649 projects. Indonesia had 21,925 rooms in 116 projects. India had 20,149 rooms in 121 projects. Vietnam reported 11,556 rooms in 44 projects. Malaysia had 11,107 rooms in 47 projects. Australia had 10,486 rooms in 61 projects.
Deals and developments
- Ayana will open the 201-room Ayana Komodo Resort, Waecicu Beach in Indonesia in the summer of 2018.
- Millennium Hotels and Resorts has opened the 190-room M Social in Auckland, New Zealand.
- The Roots Corporation has opened the 72-room Ginger Lucknow in Lucknow, India.
- The Ritz-Carlton Hotel Company opened the 114-key Ritz-Carlton Langkawi on the Malaysian island of Langkawi.
- Keong Hong Holdings with joint venture partners Sansui Holding, BRC Asia and L3 Development have opened their first overseas hotel, the 68-key Mercure Maldives Kooddoo Resort.
- Thailand’s Hop Inn Hotels opened its second property in the Philippines, the 144-room Hop Inn Hotel Makati Avenue.
- Dream Hotel Group announced the signing of the Dram Na Jomtien Pattaya in Thailand, set to open in August 2018.
Compiled by Bryan Wroten.