In this week’s roundup of news from the Asia/Pacific region: Hong Kong hotel struggles; regional performance; charitable efforts in India; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
Hong Kong hotels struggle amid political protests
Data from the Hong Kong Tourism Board shows visitor arrivals in July decreased 4.8% year over year, and preliminary numbers for the first half of August show a 30% drop, both declines are a result of the ongoing political protests in the city, reports HNN’s Terence Baker. Hoteliers in the market worry what this means for future business.
Jesper Palmqvist, area director of the Asia/Pacific region at STR, the parent company of Hotel News Now, said STR has revised its forecast for Hong Kong.
“But the big turn was in August, and what’s on the books for September,” he said. “Early estimates of August data is showing a year-over-year decline between 40% and 50% in RevPAR, and as per reports from Hong Kong, it’s hitting hard across retail, (food and beverage), hotels and much more, and as reported it’s been commonplace for hotels to enforce staff to take leave during this loss of demand from mainland China.”
STR: Asia Pacific hotel performance for August 2019
Hotels in the Asia/Pacific region reported mostly negative year-over-year results for August 2019, according to data from STR. Occupancy decreased by 2.2% to 73.4%, and while average daily rate increased by 0.3% to $101.54, revenue per available room dropped by 1.9% to $74.57.
Hotels in Seoul, South Korea, reported mostly positive results. Occupancy jumped 10.8% to 81.8%, outset slightly by a 1.6% decrease in ADR to 159,048.02 South Korean won ($132.93), but RevPAR grew by 9.1% to 130,158.81 won ($108.79).
Hotels in Shanghai also reported mostly positive results. Occupancy fell by 3.1% to 74.4%, but ADR grew by 3.4% to 631.21 Chinese yuan ($88.30), resulting in RevPAR growth of 0.2% to 469.48 yuan ($65.68).
Indian hoteliers see returns from charitable causes
The Indian hotel industry is becoming more active with corporate social responsibility initiatives, reports HNN contributor Chitra Balasubramaniam. These initiatives are helping hoteliers connect better with their customers through religious services, F&B and charitable events.
“Contributing to social projects has been a part of the ethos of the Kamat Group since my grandfather’s time,” said Vishal Kamat, CEO of Kamat Hotels. “At that time, there were few corporate structures. … Everyone who worked was a part of the family, so contributions to social welfare projects were natural.”
JLL assists Mirae Asset in deal for Strategic portfolio
South Korea’s Mirae Asset Global Investments entered into a definitive agreement to acquire the remainder of the Strategic Hotels portfolio from Anbang Insurance Group, according to a news release. Anbang had purchased most of the Strategic portfolio from Blackstone in 2016.
“This project is the result of Mirae Asset’s continued effort in the overseas real estate market since 2003. We will continue to strive to provide investors with the opportunity to diversify their portfolio with core real estate assets located in key, global markets,” Choi Chang-hoon, head of the real estate unit at Mirae Asset, said in the release.
Deals and developments
- Australia’s ABH Hotel Group acquired the 80-room Airlie Beach Hotel for 22 million Australian dollars ($148.2 million).
- Through a joint venture, Japan’s Mori Trust Asset Management Company and Moir Trust Hotel REIT acquired the 163-room Hilton Odawara Resort and Spa for $119 million.
- Oyo Hotels and Homes acquired the 90-room Fortune Select Metropolitan Juipur from Emaar Properties.
- Australia’s Facilimate Hotels acquired the 82-room Coral Cay Resort in Mackay, Queensland.
- Oyo Hotels and Homes acquired the 657-room Hooters Casino Hotel in Las Vegas for $135 million.
Compiled by Bryan Wroten.