Read the latest news from around the Asia-Pacific region.
A look at the strongest and weakest hotel markets across the Asia-Pacific region
In an HNN podcast, STR's Jesper Palmqvist grouped hotel markets in the Asia-Pacific region into three buckets. These are markets with declines in demand and rate; markets with slow and steady growth; and markets that are outperforming the region.
"I think Japan will take a little bit of time for that slowdown at a national level because we still see that rate growth in Tokyo and Osaka and Kyoto to some degree," he said. "So that's going to continue a bit. I would expect Indonesia and Malaysia to soften a bit. Thailand will see something before peak season comes in because growth in peak is always going to be lower than growth in shoulder and low. You can have more impact. I think we'll see percentage gain is going to slow down in some of those markets there. Vietnam will keep going for a while, from that lower end, for sure. I think New Zealand and China will take a little bit longer, for totally different reasons there."
How East Hotels is reimagining its luxury identity
The 14-year-old, Hong Kong-based East Hotels brand is going through a repositioning within the luxury space, writes HNN contributor Harvey Chipkin. Part of Swire Hotels, East is pivoting to "alternative luxury."
Toby Smith, deputy chairman of Swire Hotels, said the goal is “to embrace the desires of consumers — both guests and those in the neighborhood — for a place that is more than a hotel, a place where you can gather as a community."
Leela Palaces’ IPO likely most valuable in Indian hotel history
Schloss Bangalore, parent of Leela Palaces, Hotels & Resorts, is seeking an initial public offering, making it the third Indian company to do so in recent months, reports HNN's Terence Baker. Valued at 50 billion Indian rupees ($594.8 million), it may also be the largest.
“The Indian hospitality sector is expected to deliver strong growth in the coming years as India’s gross domestic product is projected to double from $3.6 trillion in 2023 to $7.1 trillion in 2030,” executives wrote in the company's stock-exchange IPO prospecus. “The luxury hospitality segment in India is underpenetrated constituting only 17% of the branded hotel stock. The total demand for luxury rooms estimated to grow at a compound annual growth rate of 10.6% over financial year 2024 to financial year 2028 against supply growth of only 5.9% over the same period. India is expected to see domestic tourism and foreign tourist arrivals growing at CAGRs of 13.4% and 7.1%, respectively, between 2024 to 2030.”
Oyo parent to acquire G6 Hospitality from Blackstone for $525 million
Oravel Stays, parent company of India's Oyo Hotels & Rooms, will acquire G6 Hospitality from Blackstone Real Estate for $525 million in an all-cash transaction, reports HNN's Trevor Simpson. The deal is expected to close this quarter.
The G6 Hospitality brand portfolio includes more than 1,450 Motel 6 properties across the U.S. and Canada and the more than 200 extended-stay Studio 6 hotels. It also has the Studio 6 Suites brand, an all-suite, extended-stay extension of the Studio 6 brand.
In its expansion in the U.S., Oyo added nearly 100 properties in 2023, and it has plans to add about 250 this year.
Deals, developments, people on the move
- The 234-key Nikko Style Niseko Hanazono hotel, by Okura Nikko Hotels, will open Dec. 15, 2024.
- Australia's Star Management Group bought the 192-key Rydges Gold Coast Airport Hotel for 60 million Australian dollars ($40.2 million).
- Japan-based Nomura Real Estate Master Fund is buying the 120-key Hotel Androoms Shin-Osaka hotel for 4.23 billion Japanese yen ($23.3 million) from Daiban Hotel One Godo Kaisha.
- U.S.-based Fortress Investment Group will acquire Japan's Joban Kosan Co., which operates the Spa Resort Hawaiians in Fukushima, Japan, for $100 million.
- Kasumigaseki Capital Co.'s subsidiary Fav Hospitality Group bought all shares of Japan-based Mid In Hotel and Pantheon Real Estate.
- Australia's Acure Funds Management bought the 65-key Quest Dubbo Hotel from Maas Group Holdings for 17 million Australian dollars.
- Japan Prime Realty Investment Corp. is buying the 153-key The Royal Park Canvas Nagoya for 6.5 billion Japanese yen.
- Australia's TFE Hotels partnered with New Zealand-based Heritage Hotel Management through a multi-property management agreement.
- Singapore-based CapitaLand Ascott Trust is acquiring the 329-key Lyf Funan Singapore from Ascott Serviced Residence Global Fund in a related-party transaction for $263 million Singapore dollars ($200.7 million).
- Singapore-based Invictus Development bought the 140-key Lyf Ginza Tokyo in Japan from Ascott Serviced Residence Fund for 10.5 billion Japanese yen.
- U.S.-based Hilton Grand Vacations acquired the 124-key Citadines Karasuma-Gojo Kyoto from Singapore's CapitaLand Ascott Trust for 6.18 billion Japanese yen.
- Hong Kong-based AB Capital Investment Limited acquired the 175-key Vessel Inn Asakusa Tsukuba Express in Tokyo.
- Australian investment firm Salter Brothers Asset Management will acquire three hotels from Bannisters Hotels Group for more than 100 million Australian dollars: the 34-key Bannisters by the Sea; the 33-key Bannisters Pavilion in Mollymook; and the 78-key Bannisters Port Stephens.