HotelNewsNow.com each week features a news roundup from a different region of the world. Today’s compilation covers Asia/Pacific.
HICAP emphasizes Asia momentum
There’s no doubt Asia’s hotel industry roared back to life in the eyes of top-level executives who participated in the Hotel Leaders Panel during the opening session of the 21st annual Hotel Investment Conference Asia Pacific, according to a story from HotelNewsNow.com’s editorial director Jeff Higley.
Raymond Bickson, managing director and CEO of India-based Taj Hotels Resorts & Palaces, said India especially has plenty of room to grow. With about 62,000 branded hotel rooms and 100,000 rooms overall, opportunities abound, he said.
“There’s a lack of rooms,” Bickson said. “There’s a lot of room for open space.”
• Read “HICAP: Asia is indeed a hot hotel market.”
Suburban China resorts gain popularity
A new type of hotel category has emerged in China recently, according to a study by Daniel Voellm and Guanlu Feng at HVS. An increasing number of upmarket, internationally branded hotels can be found outside major cities. The suburban getaway is increasingly popular with affluent city dwellers looking for an escape from the busy streets they call home. The push by the government to improve highway infrastructure concurrent with increasing car ownership ratios opened a new market first that has gained momentum since 2005/2006.
Key cities, such as Shanghai, Beijing, Shenzhen, Guangzhou, Hangzhou and Tianjin all have a population where a critical mass of highly affluent individuals and successful companies exists, generating demand for suburban resorts. Further opportunities exist in Wuhan, Chengdu, and Chongqing.
Pipeline updates
The Asia/Pacific hotel development pipeline comprised 1,037 hotels totaling 255,208 rooms, according to the August 2010 STR Global Construction Pipeline Report.
China reported the most rooms in the total active pipeline among the region’s countries with 134,832, followed by India with 47,477 rooms. China also reported the most rooms in the In Construction phase with 92,559 rooms.
• Read “STR Global: Asia/Pacific pipeline for August 2010.”
Also, Lodging Econometrics released its H1 2010 report for Asia/Pacific. Asia/Pacific’s total construction pipeline is up to 1,944 projects/473,613 rooms at the end of Q2 after five consecutive quarters of escalating project and guestroom counts.
China and India, two of the world’s fastest growing economies, are the driving force behind this resurgent construction activity. Both countries’ pipelines receded only slightly from pre-recession highs. Pipeline growth has since bounced back quickly in these countries as developer sentiment is very high. It stands in contrast to still declining pipeline trends seen in other developed economies.
Asia/Pacific tops occupancy ratings: Deloitte
Deloitte reported cities in Asia/Pacific and the Middle East have the top performing hotels when ranking half-year occupancy, average room rate and revenue per available room data.
Asia/Pacific dominated the occupancy rankings as international tourist demand improves. Singapore topped the chart with an astounding 83.2% occupancy as additional tourists were attracted to Resorts World Sentosa–the city-state’s first casino that opened in April. Also making a strong appearance in the occupancy ranking was Australia with Sydney (82.5%), Canberra (81.6%), and Perth (80%) taking second, third, and fourth positions, respectively. Fifth was Seoul (79.8%) as it kicked off its visit Korea Year 2010-2012 campaign. Tokyo, traditionally Asia’s most expensive city, tied for second with Riyadh in the RevPAR rankings (US$174), up 18.7% year-to-June.
Hotel sentiment survey respondents favor Asia/Pac
Results from the latest edition of the Horwath HTL Global Hotel Market Sentiment Survey show hotel operators in all regions of the world continue to believe the recovery in operating performance is on track, although without any strong conviction the worst is over.
The survey, carried out every six months by Horwath HTL, concentrates on four key questions to gauge the level of industry feeling in the short term and the key indicators driving the sentiment.
Asia/Pacific, the region that has been the least affected by the global recession, remains the most optimistic with a survey score of 52.
• Read “Hotel operators remain cautiously optimistic.”
Expansion news
• Taj Hotels announced the second phase of its brand architecture exercise with the roll-over of 19 hotels to its new brand, Vivanta by Taj Hotels & Resorts, an upper upscale segment brand. Sixteen Taj Hotels joined the three existing Vivanta by Taj hotels to create a brand that has an inventory of nearly 2,500 rooms. An expansion program will see the brand grow organically to more than 30 hotels with more than 5,000 rooms during the next two years. Vivanta by Taj includes landmark city hotels, such as Vivanta by Taj-President, Mumbai; Vivanta by Taj-Connemara Chennai; Vivanta by Taj-Fort Aguada, Goa; and Vivanta by Taj- Holiday Village, Goa.
• Wyndham Hotels Group announced three managed contracts in China. The properties include the 300-room Wyndham Grand Boao Resort and Spa, to be part of the brand’s Wyndham Grand Collection; the 106-room Wyndham Boao Resort; and the 350-room Wyndham Boao Resort and Conference Center. The three hotels are owned by Hainan Baolian City (Boao) Company Limited, led by Chairman Weijie Zhu, who also is developing the 337-room, luxury Wyndham Grand Baolian Hotel Shanghai, scheduled to open in late 2011.
• Hyatt Hotels Corporation announced expansion plans in China with management agreements for 11 new Hyatt-branded hotels in emerging cities and resort destinations. The 11 executed agreements announced: Park Hyatt Changbaishan; Hyatt Regency Changbaishan; Hyatt Regency Changchun; Grand Hyatt Dalian; Hyatt Regency Guiyang; Hyatt Regency Jinan; Hyatt Regency Qingdao; Grand Hyatt Sanya Haitang Bay; Grand Hyatt Shenyang; Hyatt Regency Tianjin East; and Hyatt Regency Wenzhou.
• Carlson Hotels Worldwide plans to have more than 100 hotels in operation in India by 2015, said Hubert Joly, president and CEO, during a signing ceremony for two new hotel agreements in India. Setting the momentum for its robust expansion, Carlson announced that after opening eight hotels in 2010, it is planning to add at least 15 more hotels in 2011.
• IHG signed four hotel contracts for Asia during last week’s Hotel Investment Conference Asia Pacific event in Hong Kong. This signings cover contracts for its expansion in Taipei, Hong Kong and Xiamen, adding more than 700 rooms to its pipeline with four hotels, which will open under Hotel Indigo and Holiday Inn Express.
• Best Western International has more than 40 new hotels in Asia and the Middle East in various stages of development. By the end of 2011 the chain expects to have more than 235 Best Western properties open in these regions. The chain has more than 160 properties, representing 8,400 rooms, in various stages of operation, rebranding, and development in mainland China alone.
• Accor will develop five Pullman hotels in Vietnam: Pullman Danang Beach, due to open in the middle of next year; Pullman Vung Tau and Pullman Hanoi Horison, scheduled for opening during Q4 2011; and then Pullman Saigon Centre and Pullman Hai Phong Flamboyant Island Resort in 2013.
Notable openings, transactions
• The 100-room Fullerton Bay Hotel Singapore opened in Marina Bay.
• The Langham, Xintiandi, China luxury hotel opened with 357 guestrooms and suites.
• Mövenpick Hotels & Resorts plans new properties in Bangkok, Chiang Mai and Koh Samui during the next three years. The company has signed a management agreement to operate the Mövenpick Suriwongse Hotel Chiang Mai, the Mövenpick Resort & Spa Mae Nam Beach Koh Samui and the Mövenpick Hotel & Residences Bangkok.
• The Sheraton Nha Trang Hotel & Spa opened in downtown Nha Trang, Vietnam.
• The 380-room Novotel Bangkok Impact was announced in partnership with IMPACT Exhibition Management will open in early 2011. It will be integrated within IMPACT Arena, Exhibition and Convention Center complex.
• Langham Hotels International signed a management agreement for Langham Place, Ningbo Culture Plaza, Ningbo with Ningbo Culture Plaza Investment & Development Company Limited. The move marks the luxury hotel operator’s first flag in one of China’s strategic second tier cities.
• The 278-room Best Western Hotel Sapporo Nakajima Koen was announced for the south side of Sapporo city center by Nakajima Park.
• IHG announced a 241-room Crowne Plaza hotel will replace the Pan-Pacific Bangkok. The rebranding will come into effect 1 January 2011, making Crowne Plaza Bangkok Lumpini Park the fifth IHG property in Bangkok.
• In November, Four Points by Sheraton will inaugurate properties in Bangkok, Thailand (268 rooms), and Tai’an, China (311 rooms). December debuts are planned in Pune, India (215 rooms), and Vishakhapatnam, India (122 rooms).
• Hotels Company, Limited opened the 499-room Hotel Nikko Wuxi in China.
• Carlson and SM Hotels and Conventions Corporation, a wholly owned subsidiary of Philippine conglomerate SM Investments Corporation, jointly announced the first Radisson Blu hotel in Asia Pacific opened. The 400-room Radisson Blu Hotel Cebu opened in the Philippines.
• The St. Regis Lhasa Resort will open in November 2010, which will be the first St. Regis resort in China.