In this week’s roundup of news from the Asia/Pacific region: July performance data; HanTing 3.0; hotel executives’ thoughts on China; 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 July 2019
Hotels in the Asia/Pacific region reported mostly negative year-over-year performance during July 2019, according to data from STR, parent company of HNN. Occupancy increased by 0.2% to 73.2%, but average daily rate fell by 1.5% to $95.48, resulting in revenue per available room dropping by 1.3% to $69.91.
Hotels in Hong Kong reported occupancy fell by 4.1% to 83.4% and ADR fell by 9.1% to 1,163.21 Hong Kong dollars ($148.37), which combined resulted in a 12.9% drop in RevPAR to HK$970.42 ($123.78).
Hotels in Singapore reported a 1.9% increase in occupancy to 91.8% and a 0.5% increase in ADR to 268.79 Singapore dollars ($194.81), resulting in RevPAR growth of 2.4% to SG$246.80 ($178.88).
Ever-growing Huazhu details HanTing brand upgrade
During the company’s 2019 second-quarter earnings call, Huazhu Hotels Group Jenny Zhang said her company has recently unveiled the latest update to its flagship brand: HanTing 3.0, reports HNN’s Bryan Wroten. The brand originally launched in 2005 and serves business and leisure customers in China.
HanTing 3.0 will offer guests fast, automatic check-in using front desk displays, robot delivery staff and an in-room AI system.
“Our previous market research and our initial customer trials are confirming that this technology application will enhance our guest experience at HanTing hotels,” Zhang said. “And the enthusiastic response from our franchisees also makes us believe this is going to attract many new franchisees and opening more hotels other than HanTing brands going forward.”
Where performance stands across global regions
During his presentation at the 2019 Hotel Data Conference, STR Managing Director Robin Rossmann said performance across the Asia/Pacific region was strong in 2018, but there’s a downturn ahead, especially given the slowing growth of demand, writes HNN’s Danielle Hess.
Supply growth reached 3.6% in 2019, but demand is only at 2.7% growth. While the reasons differ depending on the market, both China and Australia are experiencing RevPAR declines. However, outbound travel from China remains the highest within the APAC region.
Executives optimistic despite pressures in China
While trade tensions with China continue to grow, executives of publicly traded hotel companies said during their Q2 earnings calls they hope for a deal to be made and recovery for the full year, HNN’s Dana Miller reports.
“Obviously, our RevPAR numbers in China were meaningfully better than the industry as a whole,” Marriott International President and CEO Arne Sorenson said. “And I think that's a sign of our strength. But the RevPAR numbers in China were not as good as they were a quarter ago and they were not as good as they were last year. And so I think that's a sign that when you look at the averages rolling up across that very big country, you're seeing somewhat more modest economic growth.”
Indian hoteliers seek new revenue taking F&B off-site
Indian hoteliers are exploring taking their in-house dining experiences outside of their hotels, reports HNN contributor Chitra Balasubramaniam. The National Restaurant Association of India reported the current market size of the food-service industry in India is $61 billion, a figure growing by 9% annually—and hoteliers are taking advantage of this.
“By taking their brands into a standalone model, these hotels will tap into a far wider audience than they could possibly do within the confines of their hotel premises, as fine-dining restaurants are in high demand today,” said Anuj Kejriwal, managing director and CEO of the retail division of real-estate ownership and consultancy company Anarock.
Deals and developments
- Australia’s iProsperity Group acquired AccorInvest Group’s 23-hotel portfolio for 300 million Australian dollars ($205.6 million).
- Singapore-based UOL Group sold its China unit, Suzhou Wugong Hotel Company Limited, to China’s Bao Chang Long Commercial Management Company Limited for 80 million Singapore dollars ($57.9 million).
- Singapore’s City Developments Limited acquired a 62.5% stake in the 240-room W Singapore-Sentosa Cove and Quayside Isle for SG$393 million ($284.8 million).
Compiled by Bryan Wroten.