HotelNewsNow.com each week features a news roundup from a different region of the world. Today’s review covers Asia/Pacific.
Hotel supply outlook
The Asia/Pacific hotel development pipeline comprises 1,443 hotels totaling 348,653 rooms, according to the November 2011 STR Global Construction Pipeline Report. STR Global is a sister company of HotelNewsNow.com.
Year-to-date 2011, 361 properties have opened in the region with 64,269 rooms. In the remainder of 2011, 38 projects are expected to open with 8,993 rooms. In 2012, 559 projects are expected to open in the region with 139,432 rooms and in 2013, there are 395 projects planned to open with 97,312 rooms.
Chinese outbound tourism up in Q3
Chinese outbound tourism continued to accelerate during the third quarter. The number of outbound trips reached 19.4 million for the period, or a growth of 26%, according to China Outbound Tourism Research Institute. The growth in the number of Chinese travelers to Asia was 28%, to the Americas 31%, to Europe 25%, to Africa 15%, and to other regions 72%.
Not surprisingly, the institute found visa services are the key factor when Chinese travelers choose a destination.
The top 10 destinations for Chinese outbound travelers:
1. Hong Kong
3. South Korea
Mixed fortunes for Australian hotel performance
Australian hotel performance presented a mixed picture across the major markets, according to a report by STR Global. For the year-to-date October 2011, hotel performance in terms of occupancy, average daily rate and revenue per available room varied significantly from city to city.
Notably, the performance of hotels in Brisbane, the major city at the center of the flooding in January 2011, appears to have weathered the storm remarkably well. However, it is the performance of the Western Australian capital of Perth that catches the eye with the best results in both actual occupancy (84.3%) and average daily rate (AUD199.50 or US$200.44).
STR Global’s market coverage extends to a number of secondary cities, two of which reported the lowest actual performances. Wollongong, in New South Wales, had the lowest occupancy (58.7%), while the northern city of Cairns, in Queensland, had the lowest ADR (AUD118.70 or US$119.32) and revenue per available room (AUD85.90 or US$86.34).
Indonesian hotels expect fewer foreign guests
Indonesian hotels will see fewer foreign guests early next year as the economic slowdown in the United States and Europe will reduce tourist arrivals to the country, reports The Jakarta Post.
“The crisis will definitely have impacts on the hotel business in the country because of fewer foreign tourist arrivals from regions experiencing the crisis,” said Carla Parengkuan, executive director of the Indonesian Hotel and Restaurant Association, to The Jakarta Post.
The Tourism and Creative Economy Ministry estimates foreign tourist arrivals will grow only 3.8% to approximately 8 million in 2012, from the 7.7 million people projected to visit this year.
Parengkuan estimated the projected decline in foreign arrivals would not seriously affect hotel occupancy rates because the number of domestic tourists would remain high despite the global economic slowdown.
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Accor acquires 48-hotel portfolio in Australia
Accor’s certainly been busy in recent weeks. After selling its 52.6% stake in Hotel Formula 1 earlier this month, the Paris-based hotel chain announced Friday the purchase of Mirvac, a real-estate investment trust and hotel management company in Australia.
The total amount paid by Accor for this acquisition is €195 million (US$255 million) and includes:
• Mirvac Hotels & Resorts, a management company of 48 hotels (including two owned hotels), representing 6,100 rooms, for €149 million (US$195 million);
• A 21.9% stake in the Mirvac Wholesale Hotel Fund, an investment vehicle with ownership of seven of the hotels, for €46 million (US$60 million). Accor and Ascendas, the Singapore real-estate developer, are to acquire together Mirvac’s 49.2% stake in MWHF.
This deal, along with the earlier Hotel Formula 1 sale, is in line with Accor’s ambitious asset-light development strategy, which includes a target of 40,000 room openings each year in 2012 and 2013. Accor’s network in Australia and New Zealand will reach 241 hotels and 32,500 rooms.
HNA calls off €431.6m deal with NH Hoteles
HNA Group has pulled out of its previously agreed upon deal with Spanish hotel chain NH Hoteles because of economic volatility, reported HotelNewsNow.com’s Patrick Mayock.
The deal, which was signed in May 2011 and subject to mandatory approvals from the Chinese government, would have had the China-based tourism and airline group acquire a 20% holding in NH Hoteles totaling €431.6 million (then US$594 million), including a capital increase at a price of €7 per share (then US$9.87 per share).
The agreement also would have allowed for the two groups to pursue a joint venture for managing hotels in China.
NH Hoteles received approximately €11.4 million (US$15 million) in compensation from HNA in accordance with the terms and conditions set forth in the investment agreement, according to a news release.
Key openings, transactions
• Hilton Hotels & Resorts announced the opening of the 411-room Hilton Nanjing Riverside, the second Hilton property to open in Nanjing, China, in less than a month.
• Starwood Hotels & Resorts Worldwide announced the debut of its Aloft brand in Thailand with the opening of the 296-room Aloft Bangkok - Sukhumvit 11.
• Marriott International opened the 720-room Shanghai Marriott Hotel City Centre in China.
• Accor announced the opening of the 317-room Pullman Jakarta Central Park in Indonesia.
• The 295-room DoubleTree by Hilton Langfang opened in Langfang, Hebei Province, China, which represents the eighth DoubleTree by Hilton in China.
• InterContinental Hotels Group signed a two-brand hotel management contract with Yanlord Land Group Limited for two properties in Sanya, a resort destination in China. The 54-room Hotel Indigo Sanya Haitang Bay and the 420-room Crowne Plaza Sanya Haitang Bay are expected to open in 2014.
Compiled by Stephanie Wharton.