In this week’s roundup of news from the Asia/Pacific region: HNA Group’s investment in Hilton Worldwide Holdings; STR pipeline numbers for the Asia/Pacific region; Plateno continues its European expansion; 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.
Analysts call HNA Group's Hilton deal a strategic move
Hong Kong-based HNA Group purchased 25% equity interest in Hilton Worldwide Holdings from The Blackstone Group for $6.5 billion—a development industry analysts call a strategic move for the Chinese travel company, writes HNN’s Bryan Wroten.
This is more than just a Chinese company trying to move its capital out of the country, said Whitney Stevenson, senior analyst at JMP Securities. HNA is the largest shareholder in three public hospitality companies. “I think once people get comfortable with real estate ownership and have ownership at scale, it’s a natural transition to get into the operating businesses as well,” Stevenson said.
STR: Asia/Pacific hotel data for Q3, September 2016
Hotels in the Asia/Pacific region reported mixed results for the third quarter of 2016, according to data from STR, HNN’s parent company. The region experienced a 1.9% year-over-year increase in occupancy to 71.3%, while average daily rate dropped by 1.9% to $97.34. As a result, revenue per available room remained nearly flat, slipping 0.1% to $69.44.
Indonesia reported a 5% increase in occupancy to 64.5%, but ADR dropped 7.7% to 1,067,144.50 Indonesian rupiah ($81.76), bringing RevPAR down 3.1% to IDR688,492 ($52.75).
The Philippines reported nearly flat occupancy, dipping 0.4% to 65.7%, while ADR grew 2% to 5,129.42 Philippine pesos ($106.24) and RevPAR increased 1.5% to PHP3,368.74 ($69.78).
Famed Hoshino Resorts to open outside of Japan
Japanese hotel chain Hoshino Resorts will open its first global property by the end of the year, a development of particular interest to HNN’s Terence Baker because of his past trip to Japan and stays at the chain’s Hoshinoya Kyoto and Hoshinoya Karuizawa.
The company’s first hotel outside of Japan will be a 30-room ryokan-style property in Bali, Indonesia, near the Pakerisan River. Hoshino Resorts started in 1904 with a focus on silks and 10 years later opened a hot spring resort. It became Hoshino Resorts in 1995 and started a real estate investment trust in 2013.
STR: Asia/Pacific hotel pipeline for September 2016
The Asia Pacific region reported 582,271 rooms in 2,555 projects under contract in September 2016, according to data from STR. This amounts to a 4.6% year-over-year increase in rooms under contract for the region.
There were 238,829 rooms in 1,018 projects reported in construction, a 5.5% decrease compared to September 2015.
The upscale segment had the largest portion of rooms under contract (26.1% with 152,039 rooms) and in construction (27% with 64,536 rooms). The upper upscale segment was the only other segment with 20% or more of rooms under contract (25.4% with 147,788 rooms) or in construction (25.3% with 60,511 rooms).
Plateno Group launches PAI Hotels in European expansion
China’s Plateno Group continued its expansion into Europe with its new PAI Hotels, according to a news release. The company touts the ease of converting existing hotels as an incentive to rebrand to something of greater attractiveness to Chinese tourists.
“Most of the hotel brands have certain strict requirements regarding room size, location, hotel size and amenities that make it difficult for owners of existing hotels to join,” said Roland Paar, RVP Plateno Europe. “As nearly 60% of European hotels are still independent, PAI is the perfect, easy to join solution, offering, on top of all the benefits of a big brand, an opening to the Chinese market. Since its launch in China in May 2015, there were already opened more than 120 hotels, and 200 deals were signed. Now it’s time for international expansion towards new markets, where Chinese outbound travel plays significant role, and Europe is definitely one of them.”
Deals and developments
- Carlson Rezidor Hotel Group and Masterson Sdn Bhd signed the Radisson RED Kuala Lumpur City Center, expected to open in 2022.
- Marriott International announced the opening of the 281-room JW Marriott Kolkota in Kolkata, India.
- Shangri-La Hotels & Resorts opened its second hotel in Harbin, China—the 344-room Songbei Shangri-La, Harbin.
- Sing Holdings is purchasing its first hotel property, the 290-room Travelodge Docklands in Melbourne, Australia, for 107 million Australian dollars ($82 million).
- The 123-room Four Seasons Hotel Kyoto, developed by Berjaya Kyoto Development Kabushiki Kaisha, opened in Kyoto, Japan.
Compiled by Bryan Wroten.