Weekly Hotel Industry News Roundup from Asia Pacific
Australia's Abacus Property Buys Five-Star Hotel In Sydney
Abacus Property Group has bought the five-star Swisstel in central Sydney for US$69.5 million. The 359-room hotel will be added to Abacus's Hospitality Fund, but will continue to be managed by Swiss?tel Hotels and Resorts, one of four brands owned by international hotel group Fairmont Raffles Holding International. Since launching the hospitality fund to retail investors in March 2007, Abacus has bought three new hotels, bringing its total assets across six properties to about US$216.6 million. It expects to finalise the Swiss?tel deal in early July 2007.
Genting More Than Doubles First Quarter Net Profit
Genting Bhd, Malaysia's sole casino operator, has announced that its first-quarter net profit more than doubled mainly due to the better performance of its gaming business and one-off gains. The group expects its performance for the rest of 2007 to be satisfactory, it said in a statement to Bursa Malaysia. Genting registered a net profit of US$193.6 million for the financial period ended March 2007 compared with US$90.7 million in the same quarter a year ago. Revenue surged 65 per cent to US$598.6 million. The group, which is valued at US$8.6 billion, also runs oil palm plantations, power plants, hotels, and is involved in oil exploration.
Singapore's URA Reserve Site At Kallang Road / Jellicoe Road For Hotel Development Is Now Open For Application
Singapore's Urban Redevelopment Authority (URA) released the detailed sales conditions for a reserve site at Kallang Road / Jellicoe Road for hotel development on 23 May 2007. The Land Parcel, which has a site area of about 0.42 ha and a gross plot ratio of 4.5, is zoned for hotel use. The site can generate a maximum permissible gross floor area of about 18,980 square metres. The land parcel at Kallang Road / Jellicoe Road is one of the three new hotel sites that were scheduled for release for application on the reserve list in the Government Land Sales Programme for the first half of 2007. The other two hotel sites at New Bridge Road and Victoria Street / Jalan Sultan were made available for application in April 2007.
Tourist Spending In Japan Forecast To Total US$246 Billion In 2010
Spending by international and domestic tourists in Japan is expected to total US$246 billion in fiscal year 2010, up 22 percent from fiscal year 2005, due in part to an increase in the number of visitors from abroad, the transport ministry said in May 2007. The projected spending growth includes US$17.2 billion stemming from an increase in paid holidays taken by company employees and US$9.0 billion from a rise in the number of long-stay tours by baby boomers, the Ministry of Land, Infrastructure and Transport said. In addition, an expenditure increase of US$7.4 billion can be expected if the number of visitors from abroad reaches 10 million as projected by the government's "Visit Japan" campaign.
Far East Consortium Plans To Invest US$500 Million In 10 Hotels
Far East Consortium International will speed up its expansion into the mainland's hospitality industry with plans to invest up to US$500 million to open 10 four-star hotels in the next 12 to 18 months. The group believed it was time to extend its reach into the mainland. In April 2007, Far East Consortium made its first foray into the mainland by acquiring a distressed asset in Chengdu for US$36.4 million. The group plans to invest an additional US$9.3 million to refurbish it into a 600-room four-star hotel. "We have looked at 50 hotels in prime locations in provincial cities such as Shenyang and Changchun," said Deputy Chairman David Chiu Tat-cheong. The group is interested in acquiring distressed assets or renovating existing properties and Mr. Chiu hopes to add nine more hotels, each with an investment budget of between US$38.3 million and US$51.1 million, by end of 2008.
South Korea To Exempt Hotels From Value-Added Tax On Foreign Tourists' Stays
Hotels will be exempt from value-added tax on sales of rooms and other services to foreign tourists beginning in July 2007, government officials said. The decision will be effective for sales to be made between July 2007 and December 2008 by 604 hotels nationwide, said officials at the Ministry of Finance and Economy. An enforcement ordinance has been adopted for the move. "The move is partly aimed at drawing more foreign tourists, as the 2008 Beijing Olympics draws near," a ministry official said. "Local hotels have been having difficulties in attracting foreigners, because a recent hike of the local currency has increased the cost of traveling for foreign tourists."
Logos, product and company names mentioned are the property of their respective owners.
