Asia/Pacific performance results for March
Hotels in the Asia/Pacific region experienced positive results in the three key performance metrics for March 2012 when reported in U.S. dollars, according to data compiled by STR Global, a sister company of HotelNewsNow.com.
In year-over-year measurements, the Asia/Pacific region’s occupancy increased 4.4% to 69.4%, its average daily rate increased 4.8% to $145.64 and its revenue per available room was up 9.4% to $101.01.
Regional hotel supply
The Asia/Pacific hotel development pipeline comprises 1,602 hotels totaling 366,775 rooms, according to the March 2012 STR Global Construction Pipeline Report.
Among the region’s countries, India reported the largest expected room growth (+35%) if all 60,845 rooms in its total active pipeline open. Other countries to report significant expected room growth: Vietnam (+27.2% with 10,830 rooms in the total active pipeline); Philippines (+23.9% with 8,805 rooms); Indonesia (+22.4% with 25,156 rooms); and China (+14.8% with 203,216).
Vantage forms partnership to develop in India
Vantage Hospitality Group and three companies from the Asian-American hotel community introduced VanMYT Hospitality at the Hotel Investment Conference South Asia in Mumbai and revealed plans to launch Vantage’s Value Inn Worldwide and Value Hotel Worldwide brands in India.
Vantage has given the exclusive right to develop its limited-service and select-service brands in Southeast Asia to VanMYT Hospitality. The group’s goal is to have 16 combined properties in eight key geographic regions of India during the first year and 133 properties in three years.
Accor looks to buy as a way to boost India expansion
Acquisitions might be a way for Accor to accelerate its expansion in India, where the company wants to open 90 hotels by the end of 2015 and overtake market leader Carlson, according to a Reuters report.
Chief Executive Denis Hennequin told Accor's annual shareholders' meeting he is confident about 2012 prospects despite an uncertain economic climate in Europe after achieving strong growth in Asia and Latin America in the first quarter.
Accor has 15 hotels in India, where it has been expanding mostly through joint ventures with local partners.
"Ninety hotels in India is an ambitious but realistic goal, and we may look into making targeted acquisitions to accelerate our development," Hennequin said.
Mövenpick Hotels & Resorts to expand into China
A Chinese name and logo, a new Shanghai executive team, a website in Mandarin and three new hotels under development are paving the way in China for Mövenpick Hotels & Resorts.
In China Mövenpick will be known as Rui Xiang, which means “brings you enjoyment and luck with Swiss quality.” This name and logo were created in collaboration with brand specialists Interbrand and developed following extensive customer research in Hong Kong, Shanghai, Beijing and Guangzhou.
A Mandarin website also has been launched to enable access to Mövenpick for Chinese speaking guests and a VP of development, Sunny Li, has been appointed to steer further expansion in China. The new Shanghai office for Mövenpick also has appointed a director of global sales and a director of technical systems services.
Mövenpick has three projects under development in China: the 300-room Mövenpick Hotel Jiading, Shanghai; the 380-room Mövenpick Resort & Spa, Phoenix Island, Sanya, both opening next year; and the Mövenpick Hotel & State Guest House Chifeng, Inner Mongolia, opening in 2015.
China’s domestic chains talk strategy
7 Days Group Holdings Limited, China Lodging Group and Home Inns & Hotels Management continue to focus on growth strategies despite a slowdown in China’s economy, executives said during earnings conference calls recently.
7 Days remains focused on the brand’s rapid growth strategy during the first quarter, but the company’s initiative to launch a second brand targeting the higher-end market segment will come to the forefront during the second quarter, executives said during the company’s first-quarter earnings call.
China Lodging continues to shift its strategy toward growing the portfolio by way of franchise contracts, upping its 2012 target of new franchise contracts from 140 to 150. The company has accelerated its franchise program by adding a marketing component that will target potential owners and developers.
A focus on third-tier-and-below cities is underway at Home Inns. Chief Strategy Officer May Wu said China’s economy is spreading inland from the coasts, and Home Inns sees opportunity in these inland cities that are expected to grow.
Key openings, transactions
- Hyatt Hotels Corporation announced it will open its first Hyatt branded hotel in Cambodia in 2013. An affiliate, Hôtel de la Paix Siem Reap, has signed an agreement allowing it to be rebranded as the Park Hyatt Siem Reap. The hotel will close on 30 June 2013 to undergo a complete renovation.
- Hyatt announced plans for two Hyatt Regency hotels in India. The 452-room Hyatt Regency Gurgaon and the 167-room Hyatt Regency Ludhiana are expected to open later this year.
- Marriott International opened the 340-room Renaissance Guiyang Hotel in China.
- Marriott also opened the 342-room Renaissance Huizhou Hotel in China. The hotel opened under a long-term management agreement with Guangzhou R&F Properties Development.
- Accor signed the 231-room Sofitel Guiyang in China, which is scheduled to open in 2014.
- Hilton Worldwide signed a management agreement with Hoan Kiem Tourism & Trading Company Limited to introduce the first Hilton Garden Inn and Hilton’s second property in Vietnam. The 86-room Hilton Garden Inn Hanoi is scheduled to open in the second half of 2012.
- Starwood Hotels & Resorts Worldwide announced the signing of an operating agreement for a conversion of Citigate Perth into the Four Points by Sheraton Perth in Australia. The hotel will undergo a renovation and is slated to open on 1 June 2012.
- Best Western International announced the opening of the 170-room Best Western Wana Riverside Hotel in Malaysia.
Compiled by Stephanie Wharton.