HVS Asia Pacific Hospitality Newsletter - Week Ending 29 June 2018 (June 29, 2018)

In Focus: Malaysia - Reinvigorated Opportunities

By Jeremy Teo and Hok Yean Chee
In Focus: Malaysia 2018 summarises Malaysia’s tourism landscape, hotel performance and outlook. The article further highlights four growing destinations including Johor, Kuala Lumpur, Langkawi and Penang.

To view the full article, please click here.

LaSalle Acquires ibis Styles Tokyo Bay in Hinode, Urayasu City, Chiba Prefecture, Japan

US-based LaSalle Investment Management (“LaSalle”) has acquired the ibis Styles Tokyo Bay hotel through its LaSalle Asia Opportunity V Fund (“LAO V”) for an undisclosed sum. LAO V was launched in August 2016 and secured total commitments of US$1.15 billion, of which 85% is assigned to the Fund and 15% is targeted for co-investments. Prior to the acquisition, LAO V had invested about 37% of the committed capital in major Asian cities, such as Tokyo, Osaka, Nagoya, Singapore, Shanghai and Hangzhou across multiple sectors that include hotels / serviced apartments, office, retail, and logistics. Through this acquisition, LaSalle outlines their positive outlook for Japan tourism market and aims to capitalize on the upcoming Tokyo Olympic 2020. Conveniently situated near Tokyo Disneyland and in close proximity to Shin-Urayasu Station, the newly-built 8-storey hotel features 216 guestrooms with a total floor space of 6,715 square metres. Slated to open on 2 July 2018, the property will be operated by AAPC Japan KK, the Japanese subsidiary of France-based Accor S.A. (“AccorHotels”). The ibis Styles Tokyo Bay hotel will mark AccorHotels’ 12th property in Japan.

Pandey Hotel Acquires Best Western President Hotel in Auckland

New Zealand’s largest hotel owner, Pandey Hotel Corporation (“Pandey Hotel”) has acquired the majority interest in the 3.5-star 120-room Best Western President Hotel at 27-35 Victoria Street West in Auckland for an undisclosed sum. This is the first major freehold hotel to sell in the Auckland CBD over the past five years since the Hilton Auckland in 2012. The transaction indicates an investment yield of under 7 per cent. Situated in the heart of the Auckland CBD, the hotel is in proximity to the City Rail Link’s new Aotea Station, SkyCity and the New Zealand International Convention Centre (NZICC). Pandey Hotel has an extensive portfolio of assets in New Zealand including the Pullman Auckland, and the Sofitel and Novotel hotels in Auckland and Wellington.

Renaissance Brand to Debut in Zhejiang Province, China

US-based Marriott International (“Marriott”) has opened its first Renaissance hotel, namely Renaissance Hangzhou Northeast Hotel, in Zhejiang Province, China. Located in Yuhang District of Hangzhou city with convenient accessibility to the Yuhang Economic and Technological Development Zone, the hotel is about ten minutes’ drive from the Linping Station of Hangzhou’s Metro Line 1 and Yuhang Railway Station. It features 172 spacious and comfortable guestrooms which are equipped with PHILIPS 55-inch LCD televisions, LITHOCAST LITE bathrooms, B&W speakers, SEALY matresses and BOSCH SUNY coffee makers. Food and beverage outlets at the hotel include an all-day dining Chinese restaurant and the R Bar. In addition to a 780-square-metre pillar-free ballroom and five function rooms, the hotel offers a fitness centre, an indoor heated swimming pool and other supporting facilities.

Thailand Registers Double-digit Growth in Tourist Arrivals in First Five Months of 2018

According to the Ministry of Tourism and Sports (“MOTS”), Thailand registered a total of 16.5 million international visitors during the first five months of 2018, representing a year-on-year (y-o-y) growth of 12.6%. During this period, tourism receipts from overseas visitors was THB867.5 million, an increase of 16.1% y-o-y. Specifically in the month of May, Thailand welcomed 2.8 million international visitors, an uplift of 6.4% y-o-y and generated more than THB136.7 million in tourism revenue, an increase of 9.0% y-o-y. China was the biggest source market in the month of May, recording a robust growth of 14.0% y-o-y, while visitors from India also contributed to the double-digit growth, registering an increase of 12.1% y-o-y.

Absolute Share Price Performance, as on 29 June 2018

Closing Share Price as at 29 June 2018 22 June 2018 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.06 1.94 6.2%
Event Hospitality & Entertainment Ltd 13.39 13.50 -0.8%
General Property Group 5.06 5.20 -2.7%
Mirvac Group 2.17 2.25 -3.6%
Mantra Group 3.95 3.95 0.0%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 43.00 45.00 -4.4%
Dusit Thani Public Co Ltd 12.00 13.00 -7.7%
The Erawan Group Public Co Ltd 6.30 7.60 -17.1%
Grande Asset Hotels & Property Public Co Ltd 0.84 0.88 -4.5%
Laguna Resorts & Hotel Public Co Ltd 35.00 35.00 0.0%
Minor International Public Co Ltd 32.50 32.50 0.0%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 11.03 10.70 3.1%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 2.82 2.78 1.4%
Guangzhou Dong Fang Hotel Co Ltd 8.87 8.73 1.6%
China Lodging Group Ltd 42.15 47.16 -10.6%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 14.78 15.46 -4.4%
Regal Hotels International Holdings Ltd 4.79 4.86 -1.4%
Sino Hotels Holdings Ltd 3.35 3.42 -2.0%
The Hong Kong & Shanghai Hotels Ltd 11.10 12.00 -7.5%
Shangri-La Asia Limited 14.66 15.38 -4.7%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 132.1 133.5 -1.1%
EIH (Oberoi Hotels & Resorts) 169.8 162.9 4.2%
Hotel Leela Ventures 17.0 18.0 -5.8%
Korea Exchange (KRW)
The Shilla 123500 125000 -1.2%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.52 0.50 4.0%
Ascendas Hospitality Trust 0.78 0.77 2.0%
Ascott Residence Trust 1.07 1.09 -1.8%
Banyan Tree Holdings Limited 0.53 0.50 6.0%
CDL Hospitality Trusts 1.57 1.62 -3.1%
Far East Hospitality Trust 0.64 0.64 -0.8%
Frasers Hospitality Trust 0.68 0.68 0.0%
Hotel Grand Central Ltd 1.38 1.40 -1.4%
Hotel Properties Ltd 3.52 3.77 -6.6%
Mandarin Oriental International Ltd (US$) 2.33 2.38 -2.1%
OUE Hospitality Trust 0.80 0.79 1.3%
Stamford Land Corporation Ltd 0.48 0.48 0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 149.0 151.5 -1.7%
The Ambassador Hotel, Ltd 22.9 22.6 1.6%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 83000 83800 -1.0%
Imperial Hotel, Ltd 2052 2110 -2.7%
Red Planet Japan Inc 23 21 9.5%

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]
Daniel J Voellm, Managing Partner – HVS Hong Kong [email protected]
Mei Leng Ho, Associate Director – HVS Singapore [email protected]
Paola Orneli Bock, Vice President – HVS Bangkok [email protected]
Steven Zhu, Director – HVS Shanghai [email protected]
Florian Kittler, Managing Director – HVS Executive Search Asia Pacific [email protected]

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