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Global hotel pulse: Asia/Pacific news
January 18 2011

In this month's roundup of Asia/Pacific news: China’s pipeline grows for the third consecutive quarter; Carlson plans 100 hotels across India by 2015; and more openings and development news.

Highlights
  • Region saw double-digit ADR and RevPAR gains in November.
  • China’s pipeline rivals the U.S.
  • Louvre Hotels announces two projects for Hainan Island, China.

HotelNewsNow.com each week features a news roundup from a different region of the world. Today’s compilation covers Asia/Pacific.

Regional performance data

Hotels in the Asia/Pacific region experienced increases in all three key performance metrics for November 2010 when reported in U.S. dollars, according to STR Global.

In year-over-year measurements, the Asia/Pacific region’s occupancy rose 2.8% to 70%, average daily rate increased 12% to US$142.47, and revenue per available room jumped 15.2% to US$99.70.

• Read “STR Global: Asia/Pac hotels report Nov. increases.”

Pipeline rivals U.S.

Lodging Econometrics released global pipeline data, which indicates the Asia/Pacific region continues to exhibit the strongest recovery from the worldwide recession. The fall-off was briefer and the rebound much faster compared to the rest of the world.

After bottoming during the fourth quarter of 2009, Construction Pipeline totals for Asia/Pacific grew for three quarters in a row and now stand at 2,009 projects/484,161 rooms. Growth patterns, however, are not uniform throughout the region. 

China is the world’s third largest economy and the fastest growing. The country’s pipeline has been increasing for seven consecutive quarters and has now surpassed the decade’s previous peak reached during the second quarter of 2008. At 1,248 projects/336,349 rooms, China is the second largest country pipeline in the world. Most dramatically, with 986 projects/264,382 rooms, it has 35% of the world’s projects and 44% of rooms presently under construction.

For perspective, China’s under construction numbers are larger than the entire pipelines of every other global region, except for the United States. In Q3, China had the largest number of construction starts in the world, and the second largest number of new projects announced into the pipeline, trailing the U.S. by 887 rooms. 

With 454 projects/79,915 rooms, India has the third largest pipeline globally and has been trending upward for three quarters. India is often mentioned in the same hotel growth conversation as China, but the pipeline scale is quite different, as India’s project count is only 36% of China’s and, by rooms, just 24%.

Domestic pipelines in China

Home Inns & Hotels Management announced plans to open a total of 260 to 280 new hotels in 2011, of which 100 to 110 will be leased-and-operated hotels and 160 to 170 will be franchised-and-managed hotels.  In addition, as previously announced, Home Inns has set plans to enter into the midscale hotel segment in China with three to four new hotels in 2011 under a second brand, Yitel.

Taking into account both the expected hotel openings scheduled for 2011 and the estimated hotel development pipeline by the end of 2011, 7 Days Group Holdings Limited expects to achieve its target of having 1,000 hotels in operation and under development (including leased-and operated hotels under conversion and managed hotels contracted but not opened) by the end of 2011.

Carlson’s plans for India

Carlson plans to open 19 additional hotels in India by the end of 2011 across its four brands: Radisson, Country Inns & Suites By Carlson, Park Inn and Park Plaza. This was announced by Hubert Joly, Carlson president and CEO, at the Hotel Investment Forum India in Mumbai.

"This will be another record year for Carlson. Our momentum is in line with our plans to have more than 100 hotels across India by 2015," Joly said.

Carlson's India expansion is part of the company's Ambition 2015 strategy to grow its global portfolio by at least 50% to more than 1,500 hotels by 2015.

Louvre on Hainan

Louvre Hotels-Golden Tulip signed a deal with a Chinese partner to build two hotels on Hainan Island and intends to operate 50 hotels in China by 2015, according to The China Post.

Louvre has opened three hotels in Shanghai. CEO Pierre-Frederic Roulot told AFP that the first two hotels, with 400 and 200 rooms respectively, on Hainan Island should soon be followed by a third.

Thailand JV

Thai hotel management firm InVision Hospitality and Singapore investment company Cinnovation formed a joint venture to open 30 hotels with 3,000 rooms across Asia by 2013, according to the Bangkok Post.

The new company, Zinc InVision Hospitality, has an initial fund of US$170-180 million, with CG holding 51% and InVision 49%.

"It's a great combination. CG has financial strength and a hospitality background to support growth, while InVision has a lot of hospitality experience and know-how to back up all day-to-day works, from sales and marketing to technical," said Kevin Beauvais, CEO of InVision.

Openings, transactions, development briefs

  • Construction is underway to transform the Fairmont Hotel in the Blue Mountains with a US$20-million renovation by new owner Accor, which will rebrand and add the property to its MGallery collection.
  • Nearly US$1 billion of foreign investment will flow into a 500-room hotel and shopping mall in Sri Lanka, the largest investments so far into its post-war tourism boom, according to India’s MoneyControl.com. Shangri-La Hotels Lanka, a subsidiary of Shangri-La Asia Ltd, will build a 500-room hotel along Colombo's sea front, on the site of the army headquarters and defense ministry. • Pan Pacific Hotels Group opened the 486-room Pan Pacific Perth on 6 January 2011, which was rebranded from Sheraton Perth.
  • Wyndham Hotel Group signed a franchise agreement to open its first Wyndham Hotels and Resorts property in India. Located in India’s capital city of New Delhi, the 394-room Wyndham New Delhi Dwarka Hotel is owned by Tirupati Buildings & Offices Pvt. Limited. and is scheduled to open in April.
  • Wyndham also announced the signing of a management agreement for the 350-room Wyndham Chongqing North Hotel, owned by Chongqing Bei Cheng Real Estate Development Company, Limited.
  • Conrad Hotels & Resorts opened the Conrad Sanya Haitang Bay on the southern tip of Hainan Island. The hotel is owned by China’s Wanda Group, a leading real estate developer in China.
  • Langham Hotels International announced the 361-room Langham, Dalian in Northeast China set to open in 2015. Owned by parent company Great Eagle Holdings with joint venture partner, The Blackstone Group, The Langham, Dalian will be part of a luxury multi-use complex that includes serviced apartments.
  • Shangri-La Hotel, Nanchang, China, will be located in a multi-use complex built in two phases in the Honggutan New District, adjacent to the government administration office and the city’s new convention centre.  Phase I will include 319 guestrooms with meeting and function space and recreation facilities.
  • Jumeirah Group signed a management agreement with Liuhe Group, a subsidiary of Hangzhou-based WEI Jun, to operate the Jumeirah Thousand Islands Lake Resort in Qiandaohu, China.
  • Outrigger Hotels and Resorts Asia signed an agreement to open and manage the Outrigger Koh Samui Resort & Spa in Bhoput Beach, Koh Samui, Thailand, on 1 February  2011. The 81-key luxury villa and suite resort is currently operating as the Destination Beach Resort & Spa.
  • The 201-room, US$50-million Sofitel Phnom Penh Phokeethra opened, unveiling eight restaurants and bars, expansive meetings facilities, a spa and fitness complex.
  • Interstate (China) Hotels & Resorts Company Limited, a wholly owned subsidiary of a joint venture between Thayer Lodging Group, a United States-based private equity real estate firm, and Shanghai Jin Jiang International Hotels (Group) Company Limited, China's leading hotel group, was been appointed by Shanghai Tower Group to manage the world's highest luxury hotel—Shanghai Tower J-Hotel.  Due to open in 2014, the new Shanghai Tower J-Hotel is the centerpiece of the stunning Shanghai Tower being constructed in the hub of the central business district of Lujiazui, Pudong, neighboring the Shanghai World Financial Center and Jin Mao Tower.
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