Weekly Hotel Industry News Roundup from Asia Pacific
Hilton To Increase Doubletree By Hilton Presence In Malaysia
Hilton Hotels Corporation (HHC) has expressed its interests to open more hotels under its Hilton and Doubletree by Hilton brands in Malaysia, particularly in resort destinations such as Langkawi, Penang and Kota Kinabalu, as well as Kuala Lumpur and Malacca. According to HHC President for Asia Pacific, Koos Klein, Malaysia's growing affluence and attraction as an international tourist destination, especially for Middle Eastern tourists, has presented an opportunity for the Doubletree by Hilton brand to value-add Malaysian hotels as a new-build or conversion brand which has the potential to be located in central business districts, resort destinations, airports, and office or industrial areas. HHC currently has four Hilton hotels in Malaysia which have booked average revenue per available room (RevPAR) growth of 12% and average room rate growth of 14% year-on-year.
Asia Pacific Tourism To Grow Strongly In Medium Term
According to Pacific Asia Travel Association (PATA), tourism in Asia Pacific is forecast to grow strongly from 2008 to 2010 despite high oil prices, a weak US dollar and a possible recession in the USA as two-thirds of international arrivals in Asia Pacific are generated within the region. It is expected that tourism revenue and visitor arrivals in the region will reach US$4.6 trillion and 500 million, respectively, by the end of 2010, registering an average annual growth in arrivals at 7% to 8%. Tourism growth in Asia Pacific is likely to be fuelled by high-profile events in the region such as the Beijing Olympics in August 2008, the 2008 Formula One Grand Prix in Singapore and the World Expo in Shanghai in 2010. In addition, the growth of low-cost carriers, the increasing liberalisation of the aviation industry in the region, the delivery of more efficient aircraft and the expansion of hotel capacity are expected to increase accessibility in the region and provide more choices for travellers.
Hong Kong's Ocean Park Corporation To Develop Three Hotels
Hong Kong's Ocean Park Corporation has announced its plans to develop three hotels at its Ocean Park theme park. Totalling 1,300 guestrooms, each of the proposed hotels is expected to have a distinctive theme and targets particularly the leisure travellers. These projects are expected to attract 36,800 additional visitors in the first year of operation and create some 320 jobs upon the opening of the hotels. Subject to town planning approval, plans are underway to invite tenders for hotel development by the end of 2008 and construction is expected to commence by the third quarter of 2009 and completed in phases by 2011 and 2012. Quantifiable economic benefits driven by these hotel developments are estimated to increase from approximately US$13.1 million in 2011 to US$33.3 million in 2030.
Stamford Land Declined Extension To Exclusive Sale Agreement
Singapore-listed Stamford Land, the hotel and property arm of Hai Sun Hup Holdings, has rejected to extend an exclusive agreement to sell its hotel portfolio for US$776 million. The unidentified interested buyer, a large pension fund with portfolio of residential properties and hotels, had wanted to extend the unsolicited exclusive offer agreement which lapsed on 7 March 2008. The portfolio comprises eight hotel properties, including Stamford Plaza properties in Auckland, Adelaide, Melbourne and Sydney Airport. According to Stamford Land, the initial agreement was entered as it offered an option to unlock shareholders' value at an acceptable price for the properties. Should the hotel portfolio be eventually sold, the company would increase its investment in its second core business of property development.
Best Western Targets To Be Largest Hotel Chain In Japan By 2010
Best Western International has announced its plans to be the largest international hotel chain in Japan by 2010, with 30 properties. Between March to April 2008, the 214-room Best Western Shinjuku Astina, the 103-key Best Western Matsumoto, the Best Western New World Sendai with 203 rooms and the 134-room Best Western Hotel New City Hirosaki are scheduled to open. The 136-room Best Western Tosu in Saga-Ken and the 292-room Best Western in Sapporo are expected to open in June and August, 2008, respectively. Ten properties are in various stages of rebranding, refurbishment, and construction are likely to commence operations in 2009 and 2010. Currently, Best Western operates five properties in Japan: Best Western Takayama, Best Western Kochi, Best Western Premier Hotel Nagasaki, Best Western Joytel Osaka, and Best Western Wakayama.
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