HVS Asia Pacific Hospitality Newsletter - Week Ending 16 June 2017 (June 19, 2017)

ONYX to Invest US$100 Million in Pattaya Development

ONYX Hospitality Group has announced plans to open a new 406-room hotel adjacent to the existing Ocean Tower of Amari Pattaya. The OZO Pattaya will be positioned as a midscale hotel and is being co-developed by Orion Hospitality, a joint venture between Singapore Hospitality Holdings and ONYX Hospitality Group. As part of the US$100 million investment to redevelop the North Pattaya site, the group will also launch a new 49-key all-suites Amari wing, as well as undertake an extensive refurbishment of the 20-storey Amari Pattaya Ocean Tower and surrounding facilities. Upon completion in early 2019, the site will comprise three hotels with a total of 752 keys, a new state-of-the-art ballroom, a wide range of recreational facilities and dining options, enhanced pool areas and re-landscaped gardens. Based in Bangkok, ONYX Hospitality Group currently has a portfolio of 42 operating properties across three core brands in eight countries. The Group has a development pipeline of more than 20 new properties in markets such as Vietnam, Indonesia and Australia, with a target of having 99 properties open by 2024. 

Ascott Secures Three Properties in China and Singapore Under Its ‘lyf’ Brand

The Ascott Limited, wholly-owned serviced residence business unit of CapitaLand, has signed contracts to manage its first three properties under its latest brand and co-living concept – lyf. The properties are located in its two key markets – China and Singapore, and comprise the 112-unit lyf Wu Tong Island Shenzhen, which will open in the first half of 2018; the 120-unit lyf DDA Dalian, slated to open by end-2018; and the 240-unit lyf Farrer Park Singapore – the biggest of the three lyf properties – scheduled to open in 2021. To meet the needs of the growing proportion of millennial and millennial-minded travelers, the properties feature an unconventional design and provide social spaces with facilities such as social kitchens, and co-working and event spaces. Ascott is actively looking at other potential markets including Australia, France, Germany, Indonesia, Japan, Malaysia, Thailand and the U.K, and targets to open 10,000 units under the lyf brand globally by 2020.

Grand Mercure to Open Its First Hot Spring Resort in China’s Sichuan Province

AccorHotels has announced that Grand Mercure will be opening its first hot spring resort in Panzhihua City, Sichuan, in 2018 when it adds the existing Hongge Hotspring Resort to its network. Opened in 2006, the resort was being managed by Kunming Iron & Steel Group, one of China’s largest state-owned enterprises. The 167-room property, which is set to undergo a rebranding, currently includes seven villas, along with an all-day dining restaurant and a Chinese restaurant; meeting facilities, including a grand ballroom and five function rooms; indoor and outdoor pools; a gym; and a hot spring center. As the city’s first internationally-branded hot spring resort, the Grand Mercure Hongge Hotspring Resort is located is the region’s most scenic destination along Yangtze River in the Southern Sichuan Province. The resort is a 30-minute drive to the city center and the train station, and 45 minutes from the Panzhihua Airport. 

Hind Group Sells Boutique Hotel – Naumi Liora in Chinatown, Singapore

Hind Group is selling Naumi Liora, a 79-room boutique hotel housed in 10 adjoining freehold conservation shophouses in Chinatown. The price is reportedly between S$75-76 million, which works out to about S$2,800 per square foot on a gross floor area (GFA) of just over 27,000 square feet. The shophouses, which are along Keong Saik Road, span two storeys and an attic. Hind Group, controlled by the Jhunjhnuwala family, acquired the property in 2011 for approximately S$42.1 million. After a renovation and rebranding, the former Saff Hotel was relaunched under Hind Group’s Naumi brand in 2012. The new owner will be 8M Real Estate, a privately-held boutique property investment group. According to 8M Real Estate’s founder, Ashish Manchharam, Keong Saik being an established F&B location, their plan is to convert the entire ground level of the asset, including the hotel rooms on that floor, into food and beverage outlets. The upper levels of the property could remain as a hotel or be converted to offices, in order to optimize the large floor plate

New Visas for Singaporeans Pave Way for Longer Stays in Australia

Following the recently announced extended visas for Singapore travelers to Australia, tour operators plan to roll out longer itineraries that extend beyond the typical destinations. Effective January 1, 2018, a new multiple-entry visa, valid for six years, will allow Singaporeans to stay in Australia for up to three months at a time. The second – Work and Holiday Visa, which will commence on August 1 this year, will allow Singapore passport holders under 30 years of age to work while on holiday in Australia, for a year. According to Director of Sales and Marketing at Contiki Asia, Sam Morrah, Singaporean tourists spend an average of seven to 10 days in Australia, and this is expected to go up with the new visa schemes. Additionally, the new Work and Holiday Maker program will make it attractive for young Singaporeans to find part-time work and then take extended holidays. Contiki recorded a 30 per cent growth from 2016 to 2017 amongst Singaporeans aged 25 to 35. According to figures from Tourism Australia, Singapore visitors to Australia grew 7.4 per cent between March 2017 and last year, with a three per cent increase in visitor spend. 

Join Industry Stalwarts, Business Leaders & Decision Makers at the 5th THINC Indonesia Conference

HVS is set to host yet another edition of THINC Indonesia, this September. Having rightfully created a niche for itself as the 'premier hospitality event in the region', THINC Indonesia convenes an impressive conglomeration of business leaders, think tanks and industry top brass. The 2017 event will continue to provide accurate and relevant content through interesting panels discussions, keynotes and master classes on critical subject matter and key issues; allow ample networking opportunities and coordinated meetings with influential decision makers; and facilitate deal-making in a collaborative atmosphere. Notable speakers at this year’s conference include Chairul Tanjung, Chairman, CT Corp; David Su, CEO, Amare-Greenland Hospitality Management; John Flood, President & CEO, Archipelago International; Michael Issenberg, Chairman & CEO - APAC, AccorHotels; Olivier Chavy, President & CEO, Mövenpick Hotels & Resorts; Rajeev Menon, COO - APAC (ex. Greater China), Marriott International; and Steven Pan, Chairman, Regent Hotels Group, among others. The conference is scheduled to be held on 6 & 7 September, at the Sofitel Bali Nusa Dua Beach ResortREGISTER NOW FOR EARLY BIRD DISCOUNTS

Clarification: With reference to the blurb titled ‘Hilton Announces the Debut of Curio Brand in China’ in the preceding HVS Asia Pacific Newsletter (dated 9 June, 2017), we would like to clarify that Studioaria was the interior designer for the Sanya Yazhou Bay Resort, Curio Collection by Hilton in Sanya, Hainan Province, while the architect for the project was FSC Architects. The amended blurb has now been updated in the online version of the newsletter on our website. (CLICK HERE TO READ)

Absolute Share Price Performance, as on 16 June 2017

Closing Share Price as at 16 Jun 2017 9 Jun 2017 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.2 2.13 3.3%
Event Hospitality and Entertainment Ltd 13.11 13.08 0.2%
General Property Group 5.28 5.1 3.5%
Mirvac Group 2.32 2.22 4.5%
Mantra Group 2.98 2.96 0.7%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 38 36.5 4.1%
Dusit Thani Public Co Ltd 9.7 9.65 0.5%
The Erawan Group Public Co Ltd 5.05 4.82 4.8%
Grande Asset Hotels and Property Public Co Ltd 0.9 0.92 -2.2%
Laguna Resorts & Hotel Public Co Ltd 25.75 25.5 1.0%
Minor International Public Co Ltd 39 37.25 4.7%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 11.68 11.56 1.0%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 5.19 5.09 2.0%
Guangzhou Dong Fang Hotel Co Ltd 13.12 12.9 1.7%
China Lodging Group Ltd 77.35 84.54 -8.5%
Home Inns & Hotels Management Inc 35.71 35.71 0.0%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 18.66 17.74 5.2%
Regal Hotels International Holdings Ltd 7.11 6.87 3.5%
Sino Hotels Holdings Ltd 2.89 2.7 7.0%
The Hong Kong & Shanghai Hotels Ltd 10.94 10.36 5.6%
Shangri-La Asia Limited 12.92 12.76 1.3%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 128.55 136 -5.5%
EIH (Oberoi Hotels & Resorts) 134.65 133.1 1.2%
Hotel Leela Ventures 23.05 24.15 -4.6%
Korea Exchange (KRW)
The Shilla 56200 60700 -7.4%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.52 0.535 -2.8%
Ascendas Hospitality Trust 0.81 0.81 0.0%
Ascott Residence Trust 1.15 1.145 0.4%
Banyan Tree Holdings Limited 0.505 0.51 -1.0%
CDL Hospitality Trusts 1.65 1.6 3.1%
Far East Hospitality Trust 0.67 0.655 2.3%
Frasers Hospitality Trust 0.725 0.72 0.7%
Hotel Grand Central Ltd 1.37 1.375 -0.4%
Hotel Properties Ltd 3.92 3.94 -0.5%
Mandarin Oriental International Ltd (US$) 2.02 1.84 9.8%
OUE Hospitality Trust 0.725 0.73 -0.7%
Stamford Land Corporation Ltd 0.530 0.530 0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 158.5 157 1.0%
The Ambassador Hotel, Ltd 23.1 23.6 -2.1%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 80800 81000 -0.2%
Imperial Hotel, Ltd 2177 2160 0.8%
Red Planet Japan Inc 29 29 0.0%

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