HotelNewsNow.com each week features a news roundup from a different region of the world. Today’s review covers Asia/Pacific.
Regional hotel performance
In year-over-year measurements, the Asia/Pacific region’s occupancy ended September virtually flat with a 0.4% increase to 68.1%, its average daily rate increased 6.6% to US$140.06, and its revenue per available room jumped 7.1% to US$95.34, according to STR Global, sister company of HotelNewsNow.com.
Highlights from key market performers for September 2011 in U.S. dollars (year-over-year comparisons):
• Three markets reported ADR increases of 20% or more: Hong Kong (+23.5% to US$254.73); Osaka, Japan (+20.8% to US$141.53); and Jakarta (+20% to US$94.79).
• New Delhi reported the largest decreases in ADR (-20.4 % to US$152.34) and RevPAR (-29% to US$94.68) for the month.
• Three markets achieved RevPAR increases of more than 25%: Jakarta (+49.6% to US$67.51); Bangkok (+34.1% to US$66.25); and Beijing (+25.7% to US$80.32).
IHG signs 12 contracts for new China brand
InterContinental Hotels Group has inked 12 contracts for its new China brand, according to a Reuters report.
The first opening of this as-yet-unnamed brand is expected in late 2012 or early 2013. Most of the contracts will be in tier 2 and 3 cities as well as Shanghai and Beijing, said Keith Barr, IHG’s chief executive for the Greater China region.
IHG has previously said that one in four hotel rooms it opens during the next five years will be in China.
Asia/Pac supply outlook
The Asia/Pacific hotel development pipeline comprises 1,309 hotels totaling 314,433 rooms, according to the September 2011 STR Global Construction Pipeline Report.
“The India hotel pipeline is mainly oriented towards upper-upscale and upscale projects, accounting for more than half of the rooms in the in construction or final planning phase,” Elizabeth Randall, managing director of STR Global, said in a news release. “In contrast, the China pipeline growth is mainly geared towards luxury segment, while only 35% of the new supply is from midscale and upper-midscale projects.”
Among the region’s countries, India ended the month with the largest expected growth (+34%) if all 56,302 rooms in the total active pipeline open. Other countries to report a significant growth in existing supply: Philippines (+26.8% with 9,255 rooms); Vietnam (+26.6% with 10,373 rooms); Indonesia (+16.7% with 17,222 rooms); and China (+13.4% with 172,455 rooms).
Asia/Pac well-poised for growth
An ITB release reported United Nations World Tourism Organization and PhoCusWright shared long-term forecasts about travel to the Asia/Pacific region during the open press conference at ITB Asia 2011.
UNWTO secretary-general Taleb Rifai said its long-term forecast showed there will be 1.8 billion international tourists by 2030.
According to travel industry research consultancy PhoCusWright, Europe is still the leading travel market, but Asia/Pacific has surpassed the U.S., with China and India standing out.
However, Clement Wong, PhoCusWright director, research, said while Asia/Pacific represents almost one-third of the global travel market, it accounts for only 21% of online revenue. Nevertheless, rising Internet access and purchasing would see the online travel market enjoy double-digit growth in 2012.
Alila to double portfolio in Asia/Pac by 2013
Alila Hotels and Resorts, which operates seven upscale properties in India, Indonesia, and Cambodia, has 17 new openings in the works that are expected to open during 2013, Mark Edleson, the company’s president, said in an email.
“It is the culmination of an incredible 10-year journey since we started out with a dream to run our own hotels with just the Chedi Ubud, Serai Manggis and a newly completed Alila Jakarta, which was the first Alila flagship hotel,” he said. “The two Alila resorts in Bali were subsequently renamed as we started our corporate (headquarters) in Singapore to grow our management company and build the brand. It is very gratifying to see that the ideals that we started with in the business have translated into commercial success for the Alila brand.”
That expansion has been opportunistic in nature, Edleson said. Whereas major chains can be more discerning in which regions they target for expansion, Alila has taken a flexible approach that has leveraged both new builds and conversions.
The majority of projects in the works are in China and Indonesia, but other possibilities include Portugal, Korea, Malaysia, Vietnam and Oman.
Read “Alila to open 17 new projects in Asia.”
AsiaPacific Ad Will Appear Here
MGM to develop three hotels in Mumbai
MGM Hospitality, the hotel arm of MGM Resorts International, has officially signed deals to develop and run three hotels in Mumbai, India: a Bellagio, a MGM Grand and a Skylofts hotel. The three hotels will be part of the approximately 20-acre Maker Maxity complex in Mumbai, which also includes five commercial office buildings, a luxury retail development and a private club, according to a news release.
"MGM is honored to be selected for this landmark project which marks a huge milestone in our strategy to extend our brand reach in the sophisticated and fast growing Indian hospitality market," MGM Hospitality CEO Gamal Aziz said in a statement.
Hyatt introduces Hyatt Place and Hyatt House in Asia
Hyatt Hotels Corporation announced the introduction of its Hyatt Place and Hyatt House brands in Asia with the signing of management agreements by Hyatt affiliates for two Hyatt Place hotels and one Hyatt House hotel in Shanghai. The company also announced Hyatt affiliates signed management agreements for eight additional full-service hotels in China, bringing the total of announced Hyatt-branded hotels under development in China to 32.
The first Hyatt House and Hyatt Place hotels in China will be located in Shanghai’s Jiading New Town and Xinjiangwan suburbs. Management agreements have been signed for the 210-room Hyatt Place Shanghai Jiading, the 77-room Hyatt House Shanghai Jiading, and the 150-room Hyatt Place Shanghai Xinjiangwan.
Deals, developments and openings
• Hilton Hotels & Resorts opened its seventh hotel in India, the 168-room Hilton New Delhi-Noida-Mayur Vihar.
• Home Inns & Hotels Management announced that it completed its acquisition of 100% ownership interest of Motel 168 International Holdings Limited, according to a definitive share purchase agreement it entered into on 27 May 2011.
• Accor Hotels opened two properties in Thailand: the 174-room Hotel Muse Bangkok Langsuan, the newest addition to its MGallery collection of hotels; and the 213-room Mercure Krabi Deevan.
• Starwood Hotels & Resorts Worldwide announced plans to open the 305-room Westin Singapore Marina Bay in 2013.
• Hyatt opened the 307-room Andaz Shanghai. The 28-story hotel is located in the Xintiandi neighborhood.
• Regal Hotels International announced a partnership with Poly Guizhou Hotel Management Company Limited to manage and operate the 210-room Regal Poly Guiyang Hotel effective 6 October 2011.
• IHG announced the opening of its second Crowne Plaza property in Vietnam: the 535-room Crowne Plaza Danang.
• ONYX Hospitality Group assumed management of a 105-room hotel on Hainan Island, owned by Sanya Daxing Group. The existing landmark property will continue to operate as an upscale boutique offering whilst it undergoes a phase of rebranding before debuting as the Amari Sanya Bay on 1 March 2012.
Compiled by Stephanie Wharton.