HVS Asia Pacific Hospitality Newsletter - Week Ending 17 January 2020 (January 20, 2020)

HVS Ease of Doing Business in Indian Hospitality Sector

By Mandeep S Lamba, Dipti Mohan and Akash Datta
Ease of doing business in India has improved significantly in past few years due to reforms by the Government. However, approval & licensing requirements in hospitality sector is still very complex compared to global peers. Reforms in this direction are necessary to induce fresh capital in sector.


Surbung Airport Set to Open in Chin State, Myanmar in May 2020

The Surbung Airport in Falam Township is set to open in Chin State, Myanmar, in late May 2020.  The construction commenced in 2015 and was originally planned to be completed in 2022. The MMK37 billion project will be the region’s first airport and will link Chin to seven other states in Myanmar. Upon completion, it is expected to boost tourism in the state which is home to the heart-shaped Rih Lake and Nat Ma Taung National Park. Located at the northern Chin of Falam, the airport will sit on the Surbung mountain range, featuring an 1,830-metre long and 30-metre wide runway to handle ATR-72 aircraft.  Moving forward, the Chin State government also has plans to build smaller airports in Tiddim, Tonzang, Falam and Hakha townships. Currently, Myanmar has three international airports and 58 domestic ones, of which only 31 are currently in operation.

Vietjet Expands Asia Flight Network

Vietnam-based low-cost airline, VietJet Air (“Vietjet”) will be launching seven new routes as it expands its international flight network. The new routes will include flights from Hanoi, Ho Chi Minh City and Da Nang to Nagoya’s Chubu Centrair International Airport, and Hanoi to Fukuoka and Kagoshima. The new flights will increase Vietjet’s routes between Vietnam and Japan to ten. Vietjet’s press release states that the operation will commence in 2020. In addition, Vietjet will also commence its first two international services connecting Can Tho, the hub city of the Mekong Delta region, to Taipei in Taiwan and Seoul in South Korea. The Can Tho – Taipei route operates four return flights per week starting from 12 January 2020, and the Can Tho – Seoul route operates three return flights per week effective 16 January 2020. Vietjet currently operates seven domestic routes and two international routes from Can Tho International Airport. Overall, Vietjet presently serves 17 domestic destinations and 23 international destinations.

IHG Announces Strategic Partnership with AWC

Thailand-based integrated lifestyle real-estate group, Asset World Corporate (“AWC”), has reached an agreement to a strategic partnership with UK-based InterContinental Hotels Group (“IHG”) to manage over 1,200 hotel rooms across Thailand. The first hotel under this agreement will be the conversion of the 371-key Imperial Mae Ping Hotel in Chiang Mai into a 306-key InterContinental Chiang Mai Mae Ping with an investment of THB3 billion. The hotel is slated to open in 2021 with full operations by 2022. AWC currently own 16 hotels with 4,869 rooms and has partnered with six international hotel chains to open 27 hotels with 8,506 rooms by 2024 under a five-year strategic plan. With IHG, AWC will further study other potential areas in Bangkok such as Charoen Krung, Chinatown, Bang Na, and the Chao Phraya River area.

Hotel Management Japan Established Joint Venture with Topotels Hotels & Resorts

Japan-based hotel operator, Hotel Management Japan Company Limited (“HMJ”), has announced the establishment of P.T. HMJ International Indonesia (“HMJII”) through a joint venture between its sister company, HMJ International Company Limited (“HMJI”), and Indonesia-based Topotels Hotels & Resorts (“Topotels”) on 6 January 2020. The new partnership seeks to provide opportunities for HMJ group to expand outside of Japan and pursue the group's goal of becoming an international hotel chain. The joint venture has a growing pipeline of eight hotels with approximately 750 rooms in Indonesia. HMJI and HMJ currently operates 20 hotels throughout Japan with nearly 6,000 hotel rooms, and expects to open four new hotels in 2021. HMJ is also planning to open their latest brand hotel - Amoda, a 4-star hotel in Jakarta, in 2022. Topotels’ portfolio includes 19 hotels with approximately 3,600 rooms in Indonesia and Malaysia under hotel brands including Odua, Ayola, and Renotel.

Absolute Share Price Performance, as on 17 January 2020

Closing Share Price as at 17 January 2020 10 January 2020 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.12 2.10 1.0%
Event Hospitality & Entertainment Ltd 13.70 13.71 -0.1%
General Property Group 5.90 5.80 1.7%
Mirvac Group 3.29 3.27 0.6%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 24.60 23.70 3.8%
Dusit Thani Public Co Ltd 9.60 9.65 -0.5%
The Erawan Group Public Co Ltd 5.25 5.15 1.9%
Grande Asset Hotels & Property Public Co Ltd 0.72 0.70 2.9%
Laguna Resorts & Hotel Public Co Ltd 39.50 41.00 -3.7%
Minor International Public Co Ltd 34.50 33.75 2.2%
S Hotels and Resorts Public Co Ltd 2.90 2.86 1.4%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 9.21 9.36 -1.6%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 2.55 2.66 -4.1%
Guangzhou Dong Fang Hotel Co Ltd 7.61 7.53 1.1%
Huazhu Group Limited 38.70 39.86 -2.9%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 15.44 15.32 0.8%
Regal Hotels International Holdings Ltd 4.41 4.37 0.9%
Sino Hotels Holdings Ltd 2.88 2.90 -0.7%
The Hong Kong & Shanghai Hotels Ltd 8.91 8.58 3.8%
Shangri-La Asia Limited 8.30 8.08 2.7%
National Stock Exchange (INR)
Chalet Hotels Ltd 339.60 338.10 0.4%
IHCL (Taj Hotels, Resorts & Palaces) 141.3 139.7 1.1%
EIH (Oberoi Hotels & Resorts) 147.3 147.2 0.0%
Hotel Leela Ventures 5.9 5.9 0.0%
Lemon Tree Hotels Ltd 56.5 58.5 -3.4%
Korea Exchange (KRW)
The Shilla 108500 102500 5.9%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.46 0.46 1.1%
ARA HTrust (US$) 0.87 0.87 0.0%
Ascendas Hospitality Trust 1.12 1.12 0.0%
Ascott Residence Trust 1.33 1.33 0.0%
Banyan Tree Holdings Limited 0.41 0.43 -4.7%
CDL Hospitality Trusts 1.66 1.64 1.2%
Eagle HTrust (US$) 0.54 0.54 0.0%
Far East Hospitality Trust 0.78 0.75 4.0%
Frasers Hospitality Trust 0.72 0.72 0.7%
Hotel Grand Central Ltd 1.30 1.29 0.8%
Hotel Properties Ltd 3.78 3.70 2.2%
Mandarin Oriental International Ltd (US$) 1.80 1.78 1.1%
Stamford Land Corporation Ltd 0.50 0.50 0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 167.5 172.0 -2.6%
The Ambassador Hotel, Ltd 27.8 31.4 -11.6%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 82000 80800 1.5%
Imperial Hotel, Ltd 1969 1969 0.0%
Red Planet Japan Inc 117 114 2.6%

For the latest in the hospitality industry, please visit: http://www.hvs.com/. You are also welcome to contact the following personnel.
Hok Yean Chee, Regional President – HVS Asia Pacific [email protected]
Mandeep S. Lamba, President, South Asia – HVS Anarock [email protected]
Daniel J Voellm, Managing Partner – HVS Hong Kong [email protected]
Mei Leng Ho, Senior Vice President – HVS Singapore [email protected]
Steven Zhu, Vice President – HVS Shanghai [email protected]
Florian Kittler, Managing Director – HVS Executive Search Europe & Asia Pacific [email protected]

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