HVS Asia Pacific Hospitality Newsletter - Week Ending 31 August 2018 (September 2, 2018)

Singapore’s KOP Limited in Joint Venture for SGD1.2 Billion Integrated Development in Shanghai

Singapore-based SGX catalist-listed property developer KOP Limited (“KOP”) has entered into a joint venture with Chinese state-owned enterprises, Shanghai Lujiazui Development (Group) Company and Shanghai Harbour City Development (Group) Co. Together, all three companies have set up Shanghai Snow Star Properties to jointly develop the SGD1.2 billion integrated ski resort, Wintastar Shanghai. Slated to open in 2022, the year of the Beijing Winter Olympics, Wintastar Shanghai will cover a gross floor area of 227,000 square metres. The massive development will consist of its centrepiece, a 90,000 square-metre alpine-themed ski and snow park, along with four themed hotels with over 1,000 keys that will be managed by KOP’s luxury hospitality brand, Montigo Resorts. KOP will invest SGD360 million for the integrated resort, equating to a 30 per cent stake in the joint venture company and will also have a 70 per cent stake in the operating company that will run the integrated resort.

Nearly VND162 trillion across 66 projects committed in Quang Binh Province, Vietnam

The Quang Binh province has awarded investment licenses and cooperation deals for 66 projects worth nearly VND162 trillion at the Quang Binh Investment Promotion Conference on 27 August. Certificates of investment registration were granted for 36 projects owned by 23 investors with a total investment of VND29.7 trillion (USD1.27 billion) and investment cooperation agreements were awarded for 30 projects owned by 24 investors with a total investment of VND132.5 trillion (USD6.05 billion). Notable investment registration certificates include a USD47.3 million 357-key Pullman Quang Binh by Hanoi-Quang Binh Tourism JSC, slated to open in 2020 and another USD30.1 million hotel project invested by Quang Binh Investment Co. Ltd.. Among the investment cooperation agreements were the USD104 million Son Hai Resort project by Son Hai Group and the USD208 million TMS Quang Binh resort by TMS Global JSC. The province registered a 71% increase in the number of tourist arrivals and a 110% increase in foreign arrivals last year. With a robust growth in tourist arrivals, the Quang Binh province is looking to further develop its tourism services, including the upgrade of the Dong Hoi Airport into an international airport by 2020.

New Integrated Mixed Development in Bundusan, Penampang

Construction of 360 Boulevard Bundusan, a new integrated mixed development, has begun on 18 August. The development, with a RM1.5 billion gross development value, will be built on a 10-acre site located in the heart of Bundusan Town, Penampang, a suburb of Kota Kinabalu in East Malaysia. 360 Boulevard Bundusan offers approximately 280,000 sqm of commercial space that comprises 50,000 sqm retail space, an eight-hall cinema, an ‘edutaiment’ centre with co-working space, two office towers, a hotel and 750 serviced suites. Developed by Homesign Network and Borneo Kemuncak Riang Sdn Bhd., 360 Boulevard Bundusan is expected to become a tourist destination in Kota Kinabalu, attracting locals and tourists alike. Slated to complete in four years, the development will benefit the surrounding community by offering more business, investment, and job opportunities and will meet the increasing tourism demand in the area. 

Malaysia’s First W Hotel Opens in Kuala Lumpur

W Hotel by US-based Marriott International, Inc (“Marriott”) debuted its first Malaysian hotel in the heart of Kuala Lumpur (KL), strategically located next to the iconic Petronas Twin Towers. Owned by Malaysia-based Tropicana Corporation Berhad (“Tropicana”), the 150-key property provides guest rooms and suites, including two WOW suites and the lavish Extreme WOW Suite (its presidential suite). Other facilities include six diverse food and beverage options, a 1,100-square-metre AWAY®Spa, a FIT gym and over 1,500 m2 of event space. W Hotel Kuala Lumpur will join the list of latest luxury hotel openings in the capital city of Kuala Lumpur, after the opening of the 236-key Four Seasons Hotel Kuala Lumpur and the 323-key Banyan Tree Kuala Lumpur in recent months.

Wingate by Wyndham® Debuts in Sanya, China

US-based Wyndham Hotel Group (“Wyndham”) announced the opening of its first Wingate by Wyndham® Hotel in Sanya City of China, also its first in Asia Pacific. Enjoying an excellent location, Wingate by Wyndham Sanya Luhuitou backs the beautiful Luhuitou Scenic Area, overlooks the natural Nanbain Harbour, while being just a 10-minute drive from downtown and 30-minute drive from both Sanya Phoenix International Airport and Sanya Railway Station. The hotel offers 190 modern, stylish guestrooms designed to provide guests with a comfortable and unique lodging experience. The hotel features five distinctive restaurants and bars as well as flexible meeting spaces. Other entertainment and leisure facilities at the hotel include a fitness center, a yoga room, a large outdoor swimming pool, a photography studio, a kid’s club and a heated kid’s swimming pool. 

Absolute Share Price Performance, as on 31 August 2018

Closing Share Price as at 31 August 2018 24 August 2018 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 1.93 1.98 -2.3%
Event Hospitality & Entertainment Ltd 15.19 14.80 2.6%
General Property Group 5.18 5.13 1.0%
Mirvac Group 2.43 2.36 3.0%
Mantra Group 3.95 3.95 0.0%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 39.75 37.50 6.0%
Dusit Thani Public Co Ltd 11.90 11.90 0.0%
The Erawan Group Public Co Ltd 8.10 7.50 8.0%
Grande Asset Hotels & Property Public Co Ltd 1.04 1.06 -1.9%
Laguna Resorts & Hotel Public Co Ltd 38.25 38.50 -0.6%
Minor International Public Co Ltd 39.50 37.25 6.0%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 9.05 9.07 -0.2%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 2.72 2.74 -0.7%
Guangzhou Dong Fang Hotel Co Ltd 7.80 7.79 0.1%
China Lodging Group Ltd 34.42 34.59 -0.5%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 15.04 14.78 1.8%
Regal Hotels International Holdings Ltd 4.42 4.41 0.2%
Sino Hotels Holdings Ltd 3.50 3.47 0.9%
The Hong Kong & Shanghai Hotels Ltd 11.38 11.14 2.2%
Shangri-La Asia Limited 12.10 11.80 2.5%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 137.3 126.2 8.8%
EIH (Oberoi Hotels & Resorts) 179.6 174.1 3.2%
Hotel Leela Ventures 16.4 16.7 -1.8%
Korea Exchange (KRW)
The Shilla 108500 107000 1.4%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.46 0.48 -4.2%
Ascendas Hospitality Trust 0.80 0.81 -1.2%
Ascott Residence Trust 1.09 1.08 0.9%
Banyan Tree Holdings Limited 0.52 0.54 -2.8%
CDL Hospitality Trusts 1.56 1.53 2.0%
Far East Hospitality Trust 0.65 0.66 -1.5%
Frasers Hospitality Trust 0.71 0.71 0.0%
Hotel Grand Central Ltd 1.37 1.38 -0.7%
Hotel Properties Ltd 3.65 3.67 -0.5%
Mandarin Oriental International Ltd (US$) 2.11 2.14 -1.4%
OUE Hospitality Trust 0.76 0.76 0.0%
Stamford Land Corporation Ltd 0.49 0.50 -2.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 139.5 139.5 0.0%
The Ambassador Hotel, Ltd 22.5 22.6 -0.4%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 84400 83700 0.8%
Imperial Hotel, Ltd 1987 2000 -0.6%
Red Planet Japan Inc 21 22 -4.5%

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, Vice President – HVS Shanghai [email protected]
Florian Kittler, Managing Director – HVS Executive Search Asia Pacific [email protected]

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