Read the latest news from around the Asia-Pacific region.
Accor's Handwritten Collection Aimed at Hotels With Unique Touch Points at Midscale Price
Accor has launched its new midscale soft brand, Handwritten Collection, with 12 hotels already signed, reports HNN’s Terence Baker. The 368-room Hotel Shanghai Sheshan Oriental in China was one of two properties that opened with the brand’s launch.
“We noticed a gap in the market with a growing number of independent and boutique hotel owners for the midrange segment looking to boost their profile, connect with more audiences and really put themselves back on the map again,” said Camil Yazbeck, global chief development officer of premium, midscale and economy brands at Accor. “Yet they are cautious about the expense of adapting to new brand standards and potentially compromising their own hotel’s unique identity, which they have so carefully curated.”
STR: Most Global Regions Showed Full RevPAR Recovery in 2022
Asia was the only global region that showed a decline in 2022 revenue per available room compared to 2019, according to data from STR, CoStar’s hospitality analytics firm. Occupancy decreased by 23.7% to 52.3% while average daily rate dropped 9.9% to $84.38, resulting in RevPAR falling 31.2% to $44.16.
“While most global regions were impacted by omicron in early 2022, top-line performance recovery made big waves in the latter half of the year,” said Robin Rossmann, STR’s managing director. “The industry’s resilience has been underpinned by significant pent-up leisure travel over the summer along with the return of corporate demand, as the nature and length of this business travel has evolved. Unlike previous downturns, room rates have been the key driver of recovery as each of the global regions, excluding Asia, showed an ADR increase over 2019. Though occupancy came in below the pre-pandemic comparables, the metric is anticipated to stabilize throughout 2023. Despite economic headwinds, the industry is operating from a position of strength in the new year.”
STR: Hotel Pipeline Activity Down Around the World, Except in Middle East and Africa
Every region of the world except for the Middle East and Africa reported an overall decrease in hotel pipeline activity at the end of the fourth quarter of 2022, according to data from STR.
In the Asia-Pacific region, hotels in the planning stage grew 2.6% to 305,339 rooms while the number in final planning dropped 36% to 108,955 rooms. The number of hotels in construction increased by 0.6% to 476,942 rooms. The total number of rooms under contract dipped 5.4% to 891,236.
China has the most rooms in construction in the region with 300,163, followed by Vietnam with 31,570.
As International Tourism Returns, Travel Patterns Resemble Pre-Pandemic Norms
Though travel patterns normalized somewhat in 2022, hoteliers continue to be concerned over the lack of international travel, particularly from Asia, reports HNN’s Trevor Simpson.
John Beck, general manager of Crowne Plaza HY36 in New York, said bookings by international travelers at his hotel increased 83% year over year, mostly from European countries that fully opened up. However, bookings from Asian countries were at 9% of 2019 levels. Once China ends travel restrictions, he said it could still take time for bookings to return to normal levels because of the high rates.
“People understandably don’t want to shell out all this money for a big international trip that they don’t know what’s going to happen to,” Beck said.
Deals, Developments, People on the Move
- Canada-based fund manager BentallGreenOak will acquire the 1,039-key Rihga Royal Hotel Osaka for an undisclosed price.
- Japan Hotel REIT Advisors, the asset manager for Japan Hotel REIT Investment Corp., has acquired the 47-key UAN Kanazawa from GK Esquilino Investment for 20.5 billion Japanese yen ($157.6 million).
- Australia-based Tabet Group acquired the 48-key Lyall Hotel and Spa.
- Hong Kong-based Wang On Properties has partnered with U.S.-based Angelo, Gordon & Co. to acquire the 695-key Pentahotel Hong Kong, Kowloon from New World Development Co. for 2 billion Hong Kong dollars ($255.2 million).
- Singapore-based Chip Eng Seng Corp. sold its 84-key Sebel Mandurah for 18 million Australian dollars ($12.6 million).
- Singapore’s ARA US Hospitality Trust’s subsidiary, ARAUHT, entered a conditional purchase and sale agreement to acquire the 119-key Home2 Suites by Hilton Colorado Springs South from U.S.-based CH Tenderfoot Hill for 38.9 million Singapore dollars ($29.5 million).