Asia-Pacific hotel pulse: India's Nifty Tourism Index highlights hospitality sector

Read the latest news from around the Asia Pacific region.

The Nifty Tourism Index in India is giving hoteliers in the country high expectations given that the index focuses on the travel and tourism segment, writes HNN contributor Chitra Balasubramaniam. The index is expected to provide better benchmarking for hotels and resorts, leading to more chances for investment.

Mukesh Agarwal, CEO of NSE Indices, which owns and manages the Nifty index, said its launch will “facilitate the creation of products, which will create opportunities for asset managers to invest in the tourism industry, thereby providing valuable tools for investors aiming to capitalize on the growth and resilience of this vibrant industry.”

Hotel developers are taking advantage of the surging tourism demand in Singapore, writes HNN contributor Selena Oh. Projected visitor numbers are expected to come in at between 15 million and 16.5 million in 2024 after roughly 13.6 million tourists visited the country in 2023.

Big hotel openings in 2024 included the 989-room Mercure ICON Singapore City Centre; the 48-room 21 Carpenter; the 250-room Citadines Science Park Singapore; and the 143-room The Standard, Singapore.

South Korea's draw to international tourists is expected to remain unimpeded despite a brief period of martial law, said STR's Jesper Palmqvist on the HNN podcast with Sean McCracken. Geopolitical issues don't affect hotel performance immediately, he said, and strong demand should continue on.

"Korea, this year and particularly the last six months, has been riding off that positive wave where things have been OK, where domestic travel in Korea has been good," he said. "The few Japanese that travel outside Japan ... they've been going to Korea, and obviously a lot of Chinese have been going to Korea."

Singapore's Kuala Lumpur is working its way up to compete as a destination of choice alongside its neighbors in the Asia-Pacific region, and the opening of The Langham, Kuala Lumpur set for 2027 is pushing it even further, writes HNN contributor Tamara Thiessen. The city also has a Waldorf Astoria hotel and a Kimpton Hotels & Restaurants property in its pipeline as well.

André Jacques, Langham’s regional director of sales and marketing in the Pacific, said Kuala Lumpur’s status as a major business hub in Southeast Asia and cultural melting pot makes it an ideal location for The Langham.

“Kuala Lumpur is a rapidly growing city and holds immense promise for the hotel industry, with its dynamic economies, cultural richness and expanding travel market,” he said.

India-based Oravel Stays, parent company of Oyo Hotels & Rooms, closed on its $525 million, all-cash purchase of G6 Hospitality from Blackstone Real Estate, HNN's Sean McCracken reports. The deal includes the Motel 6 and Studio 6 brands.

With the closing of the deal, Oravel replaced the majority of G6's executive team, including CEO Julie Arrowsmith.

The Oyo brand had been working to increase its presence in the U.S. for several years. At the time the deal was announced, it had more than 320 hotels in the U.S. and plans to add another 250 by the end of 2024. Motel 6 then had more than 1,450 hotels and Studio 6 more than 200.

Australia's hotel franchising business has grown significantly, thanks in part to "normalization" of the model during the pandemic, HNN contributor Tamara Thiessen writes. Deloitte predicted it would become the “preferred operating model for most international brand affiliations” in hotels and hospitality.

David Simpson, managing director at Melbourne-based business advisory Axsia HTL, said his clients “are starting to appreciate the power of franchise agreements.”

“In Australia, hotel franchising is a relatively new concept, but its popularity is skyrocketing as hotel owners and brands recognize the advantages it offers over traditional hotel management agreements,” he added.

• Hong Kong-based Mandarin Oriental Hotel Group has acquired full ownership of its branded luxury vacation homes and rebranded the portfolio as Mandarin Oriental Exceptional Homes.
• Japan-based UFULL Co. bought four villa-style properties from Rakuten Group for 5.583 billion Japanese yen ($35.4 million).
• Australia's WINIM Funds Management bought the 69-key Glenferrie Lodge in Kirribilli, New South Wales, Australia, for 23 million Australian dollars ($14.1 million), with plans to develop a 42-key luxury hotel with residential units.
• U.S.-based Blackstone is buying the Tokyo Garden Terrace Kioicho, a mixed-use complex that includes two high-rise office towers, 135 high-end residential units, food-and-beverage outlets, retail spaces and the 250-key The Prince Gallery Tokyo Kioicho, a Luxury Collection Hotel.
• Singapore-based sovereign wealth fund GIC Private Ltd. is working again with U.S.-based hotel real estate investment trust Summit Hotel Properties to buy the 250-key Hampton Inn Boston-Logan Airport and the 149-key Hilton Garden Inn Tysons Corner for a total price of $96 million.
• Australia's National Rugby League is buying the 45-key Ibis Styles Port Macquarie in New South Wales for about 15 million Australian dollars and the 85-key Mantra Terrace in Brisbane for 23 million Australian dollars.
• Malaysia's Pavilion REIT Management is buying the 55-key Banyan Tree Kuala Lumpur from Lumayan Indah for 140 million Singapore ringgit ($31 million) and the 325-key Pavilion Hotel from Harmoni Perkasa for 340 million ringgit.
• Canada's Brookfield Asset Management bought the 146-key Hotel X Brisbane Fortitude Valley, Vignette Collection for an undisclosed price.
• Australia-based Prendiville Group bought the 224-key Travelodge Resort Darwin, including the 32 self-contained townhouses, for 23 million Australian dollars from TFE Hotels.
• Australia's Vision Hotels bought the 50-key Beachcomber Island Resort in Fiji for an undisclosed amount.
• Japan's Ichigo Hotel REIT Investment Corp. bought the 103-key OneFive Marine Fukuoka for 2.6 billion Japanese yen and the 160-key Nest Hotel Hakata Ekimai for 6.5 billion yen. Ichigo Hotel also sold the 302-key Nest Hotel Osaka Shinsaibashi for 7.75 billion yen.
• Japan Management Fund Investment Corp.'s asset manager, KJR Management, plans to buy a 36-key hotel under development in Kamakura from Hajime Construction. Co. for 3.2 billion Japanese yen.
• A joint partnership of Singapore-based Seacare Hospitality and Thailand-based Compass Hospitality has bought the 88-key Trouville Hotel in Sandown, United Kingdom, for 3 million pounds sterling ($3.6 million).
• Australia's Travellers Group bought the 44-key Burnett Riverside Hotel in Bundaberg for an undisclosed amount.

Read more news on Hotel News Now.