In this week’s roundup of news from the Asia/Pacific region: regional hotel performance; Mandarin Oriental Hotel Group’s growth plans; IHG’s new Voco brand; 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 hotel performance for May 2018
Hotels in the Asia Pacific region reported positive year-over-year results for May 2018, according to data from STR, parent company of Hotel News Now. Occupancy grew by 0.8% to 68.9% and average daily rate grew by 1.1% to $102.95, resulting in 1.9% growth in revenue per available room to $70.90.
Mainland China reported 1.9% occupancy growth to 68.3%. ADR grew by 1.6% to 514.84 Chinese yuan ($78.82). RevPAR grew by 3.5% to 351.49 yuan ($53.81).
Hotels in Japan reported occupancy growth of 0.6% to 83.2%, ADR growth of 0.1% to 14,788.12 Japanese yen ($133.09) and 0.7% RevPAR growth to 12,301.41 yen ($110.71).
Seoul hotel mark Novotel’s 500th property
Novotel hit a milestone with the opening of its 500th property, the Novotel Ambassador Seoul Dongdaemun Hotels & Residences, according to a news release. The 523-room property is situated near several historical sites, including Heunginjimun, one of the “Eight Gates of Seoul” dating back to the 14th century.
“The opening of Novotel Ambassador Seoul Dongdaemun Hotels & Residences heralds an era of new beginnings for the Novotel brand with the property’s first mixed-use flagship development that combines a hotel and residences,” said Patrick Basset, COO of AccorHotels, Upper Southeast and Northeast Asia. “Seoul is the heart of the national design scene and competes on the world stage as a technological powerhouse—this stunning newly built property combines these two strengths and transposes them onto experiential stays for leisure, business and family travelers.”
Lodgis buys two Raffles assets in Cambodia
Singapore-based Lodgis Hospitality Holdings acquired two historic landmark hotels in Cambodia: the 173-room flagship Raffles Hotel Le Royal Phnom Penh and the 119-room Raffles Grand Hotel d'Angkor Siem Reap, according to a news release. The company now has the largest collection of luxury historic assets in the Indochina region.
"We are very excited with the acquisition of the two historic Raffles hotels in Cambodia,” Lodgis CEO Peter Meyer said in the release. “Together with the Metropole in Hanoi, Lodgis now owns an irreplaceable Indochina heritage hotel portfolio that allows us to achieve significant synergies on both marketing and operations to better serve the rapidly-developing tourism market across Indochina. We see tremendous upside potential for both assets with a highly targeted capital expenditure program to transform the hotels back to their grand stature. Given our close working relationship with Accor as well as our strong in-house expertise, we are confident the hotels will create long-term value for Lodgis and be very well positioned for the overall Indochina market."
Mandarin Oriental keeps laser focus on luxury
Mandarin Oriental Hotel Group intends to take its growth pace “up a considerable notch” while still taking a thoughtful approach, reports HNN’s Stephanie Ricca. In a video interview with Mandarin Oriental Group Chief Executive James Riley, Ricca reports Riley said he wants to transition the company from its practice of opening one property a year to three or four annually.
The company has made it a priority to add a Mandarin Oriental property to the West Coast, ideally in Los Angeles.
Finding the best locations in “a wide range of cities where Mandarin Oriental would add significantly to that city is the top priority,” Riley said. Much of that focus will be on what Riley calls “our Asian heartland,” specifically with the evolution of mainland China to be able to support more “real luxury opportunities.”
Singha Estate buys six Outrigger hotels for $310m
Thailand’s Singha Estate Public Company has acquired six hotels from Honolulu-based Outrigger Hotels and Resorts for $310 million, according to a news release. The hotels acquired are the Outrigger Laguna Phuket Beach Resort and Outrigger Koh Samui Beach Resort in Thailand; Outrigger Fiji Beach Resort and Castaway Island in Fiji; Outrigger Mauritius Beach Resort in Mauritius and the Outrigger Konotta Maldives Resort in the Republic of Maldives for a total of 859 room keys.
“Singha Estate’s vision aims to drive the business to become a ‘premier property development and investment holding company’ generating revenue of THB 20 billion by 2020,” Singha Estate CEO Naris Cheyklin said in the release. “We believe that this strategic investment and acquisition of Outrigger resorts in four countries will generate recurring income and further diversify the company’s profile and geographical risk.”
Outrigger will continue to manage the six properties under the sales agreement.
IHG launches new upscale brand, Voco
InterContinental Hotels Group newest upscale conversion brand, Voco, will grow its presence in the Europe, Middle East, Asia and Africa region, reports HNN’s Dana Miller. The brand’s first signing is the
388-room Watermark Hotel & Spa Gold Coast, Surfers Paradise, Australia.
IHG plans to incrementally grow the brand’s footprint, expecting to open more than 200 properties in attractive urban and leisure locations over the next 10 years, according to the release.
“The brand has the versatility to flex across softer hotel touchpoints and allows us to be sympathetic toward an existing hotel’s character, so that becoming a Voco doesn’t mean becoming one of the same,” said Karin Sheppard, managing director of Europe for IHG. “Every Voco hotel looks and feels a bit different, but guests will come away having had a consistently memorable and dependable stay.”
Deals and developments
- Singapore-based 8M Real Estate is acquiring the 29-key Wanderlust in Little India, Singapore, for $37 million Singapore dollars ($27.3 million).
- U.S.-based LaSalle Investment Management acquired the Ibis Styles Tokyo Bay hotel through its LaSalle Asia Opportunity V Fund for an undisclosed sum.
- New Zealand’s Pandey Hotel Corporation acquired a majority interest in the 120-room Best Western President Hotel in Auckland for an undisclosed sum.
- Marriott International has debuted its Renaissance brand in the Zhejiang Province of China with the opening of the 172-room Renaissance Hangzhou Northeast Hotel.
Compiled by Bryan Wroten.