HVS Asia Pacific Hospitality Newsletter - Week Ending 19 July 2019 (July 22, 2019)

HVS Market Pulse: Khao Yai, Thailand

By Ruj Masan, Pawinee Chaisiriroj and Paola Orneli Bock
This market pulse provides an overview of the tourism and hotel market performance in Khao Yai, Thailand. The article discusses recent tourism trends, market performance and hotel supply and pipeline.

To view the full article, please click here.

Naumi Hotels Acquires Central Ridge Boutique Hotel in Queenstown, New Zealand

Singapore-based private hotel owner and operator, Naumi Hotels (“Naumi”) has announced the acquisition of 14-key Central Ridge Boutique Hotel in Queenstown, New Zealand, for an undisclosed amount. Naumi’s latest acquisition follows the recent purchase of 13-key The Dairy Private Hotel in Queenstown in June 2019 and two Wellington properties in February 2018, marking its expansion in Australasia. Conveniently located in the heart of Queenstown, Central Ridge Boutique Hotel is approximately a 5-minute walk away from the town centre and a 15-minute drive away from Queenstown International Airport. The hotel features a guest lounge, ski storage facilities, a spa with sauna, a dining room for daily breakfast and a restaurant. To align the newly acquired hotel with the Naumi brand, the guest rooms and facilities will undergo a phased renovation scheduled for completion in 2020. During the renovation phase, the hotel will operate its business as usual. Upon the acquisition, Naumi now owns and/or manages seven hotels in Singapore, New Zealand and Australia.

Former Reef Hotel to Receive USD34 Million Redevelopment in Seychelles

The Seychelles’ government has approved the sale of the former 150-key Reef hotel, which will be demolished and rebuilt as a new establishment. The new owners, Krishan Malhotra, and Jadoo Harmann Dookan from Mauritius, have acquired the hotel at USD6 million, indicating USD40,000 per key. The Seychelles’ government will receive USD300,000 for processing fees and stamp duty. Following the acquisition, developers are planning to invest USD34 million in the redevelopment of a new tourism facility. Located at Anse Aux-Pins on the island of Mahé, the new hotel will retain the name as Reef Hotel. It will feature 135 rooms, including nine residential apartments and villas. Opened in 1972, the former Reef Hotel was the first tourist establishment of international standard and was a popular venue for seminars and local entertainment events.  The hotel closed down in 1990 and was brought by Mauritius-based Beachcomber Resorts & Hotels in 2001.

Indian Airline Vistara to Launch First International Flight to Singapore

India-based full-service airline, Tata SIA Airlines Limited, operating as Vistara, a joint venture between India-based Tata Sons Private Limited (“Tata”) and Singapore-based Singapore Airlines Limited (“SIA”), has announced the launch of daily flights to Singapore as the first international destination, from Delhi and Mumbai. The Singapore-Delhi and Singapore-Mumbai routes will commence from 6th and 7th August 2019, respectively. Vistara expressed that the launch of international flights will give it greater scale to profitability and ease pressure on international airfares from India. The new routes will be serviced by a B737-800 aircraft with 12 business class and 156 economy class seats. The carrier began operations in 2015 with a fleet of 23 A320 and six B737-800 aircraft. In its push to launch more long-haul international flights, Vistara has bought six Boeing 787-9 Dreamliner aircraft, scheduled for delivery between 2020 and 2021.

Beijing Daxing International Airport Emerges as World’s Largest Aviation Hub

The construction for Beijing Daxing International Airport was completed in late June as planned and is expected to be operational by the end of this September. Located at the south of Beijing, the new airport is approximately 46 kilometres from the city center and 67 kilometres from Beijing Capital International Airport. It features the world’s biggest single terminal building measuring over 1.4 million square meters. The new airport will not only help to relieve the current transporation pressure on Beijing Capital International Airport, but also cater for the continuous expansion of Chinese outbound travel. Going ahead, China is expected to overtake the United States as the biggest global aviation market by 2022. Beijing Daxing International Airport is anticipated to become the world’s busiest aviation hub, estimated to be able to handle over 100 million passengers per year

Absolute Share Price Performance, as on 19 July 2019

Closing Share Price as at 19 July 2019 12 July 2019 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 1.87 1.86 0.3%
Event Hospitality & Entertainment Ltd 12.50 12.57 -0.6%
General Property Group 6.16 6.24 -1.3%
Mirvac Group 3.21 3.30 -2.7%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 34.50 35.50 -2.8%
Dusit Thani Public Co Ltd 9.60 9.80 -2.0%
The Erawan Group Public Co Ltd 6.15 6.40 -3.9%
Grande Asset Hotels & Property Public Co Ltd 0.82 0.84 -2.4%
Laguna Resorts & Hotel Public Co Ltd 46.00 46.25 -0.5%
Minor International Public Co Ltd 40.75 41.25 -1.2%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 11.39 11.44 -0.4%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 2.82 2.82 0.0%
Guangzhou Dong Fang Hotel Co Ltd 7.75 8.11 -4.4%
Huazhu Group Limited 31.47 34.79 -9.5%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 17.10 17.22 -0.7%
Regal Hotels International Holdings Ltd 4.87 4.89 -0.4%
Sino Hotels Holdings Ltd 3.30 3.36 -1.8%
The Hong Kong & Shanghai Hotels Ltd 10.64 10.54 0.9%
Shangri-La Asia Limited 9.79 10.04 -2.5%
National Stock Exchange (INR)
IHCL (Taj Hotels, Resorts & Palaces) 147.9 149.0 -0.7%
EIH (Oberoi Hotels & Resorts) 167.8 173.1 -3.1%
Hotel Leela Ventures 8.0 7.9 0.6%
Korea Exchange (KRW)
The Shilla 82500 82400 0.1%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.48 0.48 0.0%
ARA HTrust  (US$) 0.89 0.89 -0.6%
Ascendas Hospitality Trust 1.04 1.04 0.0%
Ascott Residence Trust 1.30 1.29 0.8%
Banyan Tree Holdings Limited 0.49 0.48 1.0%
CDL Hospitality Trusts 1.63 1.65 -1.2%
Eagle HTrust 0.72 0.71 1.4%
Far East Hospitality Trust 0.69 0.69 0.0%
Frasers Hospitality Trust 0.71 0.71 -0.7%
Hotel Grand Central Ltd 1.32 1.31 0.8%
Hotel Properties Ltd 3.67 3.69 -0.5%
Mandarin Oriental International Ltd (US$) 1.70 1.78 -4.5%
OUE Hospitality Trust 0.74 0.73 0.7%
Stamford Land Corporation Ltd 0.48 0.48 0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 178.0 189.5 -6.1%
The Ambassador Hotel, Ltd 22.4 22.7 -1.3%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 90400 89100 1.5%
Imperial Hotel, Ltd 1995 2000 -0.2%
Red Planet Japan Inc 125 133 -6.0%

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]
Paola Orneli Bock, Vice President – HVS Bangkok [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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