Escolar Documentos
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2014
Asia Pacific
A Cushman & Wakefield Research and Hospitality Publication
Foreword
Welcome to our third edition of Hotel Views! Over the years we have not only worked hard to improve the quality of
information on the core markets, but have also added coverage of new destinations that we believe would present new and
interesting opportunities. Hotel Views 2014 features three new cities: Thimphu, Manila and Kathmandu, making the total
count of 23 markets our most comprehensive coverage yet of Asian hotel markets.
The region appears to be facing clouds of economic uncertainty as liquidity tightens particularly in the emerging markets.
China is facing a slowdown in its commodity demand growth, amid the austerity measures imposed by the new Communist
leadership. India saw its Rupee fall to a record low recently, while Indonesia and Malaysia experienced widening current account deficits. Yet, despite the turbulent financial markets and reduced growth forecasts, many believe, and so do we, that
Asias long-term growth story remains sound.
So far in 2013, hotel performances in the region have been mixed. With the dramatic influx of new hotel rooms in the
past few years, there has been some price relief observed in some markets, such as Singapore and Shanghai. On the other
hand, some emerging markets with limited high-end hotel stock amid strong tourism demand are enjoying strong revenue
growth. Yet across the region, hoteliers are also facing similar operational challenges: rising wage and development costs,
shortage of skilled workers and growing financing costs.
All these have not curbed investors acquisition appetite for hospitality assets. 2013 looks to set new heights in the hospitality investment market, with a record turnover year-to-date. Many large and small hotel deals were sealed, as well
as portfolios transacted and operating companies sold. There are healthy levels of transactional activity in core markets
such as Singapore, Hong Kong and Tier 1 Chinese cities, resulting in compressed cap rates and appreciated capital values.
Increasingly, we are witnessing more assets in the less developed markets changing hands.
Looking ahead to 2014, signs are pointing to a broad-based recovery in China, which will have significant positive spillovers
for the region. We expect next years hotel RevPAR growth to make a positive turn as some of the recent excess supply
gets absorbed in several markets. Chinese outbound tourism would continue to drive the regions growth. In the investment market, we expect more consolidation and M&A activities to materialize. Cautious optimism I believe will prevail on
the investors minds.
From our perspective, the establishment of our Singapore hospitality team is a significant milestone for us at Cushman &
Wakefield. We remain as committed as ever to forging partnerships and servicing our clients with our enhanced capabilities, from valuation, transaction and advisory services.
We hope you will find Hotel Views 2014 to be interesting and useful. We welcome your views on how we have delivered
and how we can constantly improve. Please contact me or any member of the Cushman & Wakefield team if you would like
further information or wish to join our research mailing list.
We thank you and look forward to your continued support!
Akshay Kulkarni
Regional Director - Hospitality, South & South-east Asia
Cushman & Wakefield
Akshay.Kulkarni@ap.cushwake.com
Hotel Views
2014
Table Of Contents
4
EXECUTIVE SUMMARY
HOTEL FORECASTS
HOTEL VIEWS
BEIJING, CHINA
11
SHANGHAI, CHINA
14
TOKYO, JAPAN
17
MUMBAI, INDIA
20
NCR, INDIA
23
JAKARTA, INDONESIA
26
29
SINGAPORE
32
35
38
BANGKOK, THAILAND
41
45
REGIONAL HOTSPOTS
46
DHAKA, BANGLADESH
49
THIMPHU, BHUTAN
52
BALI, INDONESIA
55
58
MALE, MALDIVES
61
YANGON, MYANMAR
64
KATHMANDU, NEPAL
67
MANILA, PHILIPPINES
70
MACAU, SAR
73
PHUKET, THAILAND
76
HANOI,VIETNAM
79
TRANSACTION UPDATE
81
CONCLUDING REMARKS
82
CONTACTS
83
PHOTO CREDITS
Glossary
ADB Asian Development Bank
ADR Average Daily Rate
AOR Average Occupancy Rate
APAC Asia Pacific
ASEAN Association of South-east Asian Nations
bn Billion
BOOT Build-Own-Operate-Transfer
CAGR Compound Annual Growth Rate
CBD Central Business District
CPI Consumer Price Index
ETP Economic Transformation Program
FDI Foreign Direct Investment
FY Fiscal Year
GDP Gross Domestic Product
H Half
HCMC Ho Chi Minh City
EXECUTIVE SUMMARY
In recent months, there has been some market turbulence in Asia
due to concerns that the US Fed could be tapering its stimulus
program. However, relative to the 1997 Asian financial crisis,
most economies in the region are in a firmer economic footing
and structurally stronger with less debt and more reserves than
before. Much of the short-term hot money leaving the Asian
markets might result in bouts of volatility, weakened currencies
and lower asset prices, but it should not affect the long-term
growth prospects.
The Asia Pacific market is on track for another record year of
international arrivals in 2013. Estimates showed that arrivals
expanded by over 8% over 1H 2013. Last year, South-east Asia
emerged as the fastest sub-region in Asia Pacific, with a 9.9%
increase in international arrivals over the previous year. Emerging
tourist destinations like Myanmar, Cambodia and Laos have also
seen significant gains in tourist arrivals in percentage terms. South
Asia continued to be the second fastest growing market in terms
of visitor volume in 2012. Japan, Thailand and the Maldives have
registered significant growth and rebound in terms of tourist
arrivals in 1H 2013.
International hotel groups are rapidly expanding into the region,
focusing their efforts particularly in China, India, Indonesia and
Hong Kong. This year, there have been notable Asian forays and
openings for Rosewood Hotels (Rosewood Beijing) and W Hotel
Hotel Views
2014
HOTEL FORECASTS
Market Summary
KPI
2014F
Hotel Views
2014
BEIJING, CHINA
Hotel Views
2014
BEIJING, CHINA
Economy1
In the first half of 2013, Beijings economy remained stable.
Although the growth rates of some sectors have declined, the
quality of GDP growth was enhanced with rapidly growing
residential incomes. Beijings total GDP in the first half of the year
attained USD111.2 bn, and the real GDP growth rate was 7.7%
YOY, 0.5 percentage point higher than a year before. The tertiary
sector developed steadily, with corporate profits continuing to
rise. The added value of the tertiary industry totaled USD87.6 bn,
representing an annual growth rate of 7.3% and accounting for
78.8% of the total GDP volume. Of all tertiary-sector activities,
real estate added value had the fastest growth rate at 13.1%,
although sales increased at a slower pace than previously.
Increases in total retail sales of social consumer goods
decelerated and total revenue reached USD63.2 bn, with an
annual increase of 8.8%. Meanwhile, inflation rates remained stable
since their peak in 2011, with CPI increasing to 3.5% in the first
half of the year. As a result of weak external demand, Beijings
export growth rate declined, and total import and export totaled
USD210.8 bn.
Tourism arrivals
Beijing welcomed a total of 231 mn visitors in 2012, representing
a YOY growth of 8.1%. However, the tourism market showed signs
of a slowdown in 2012, with the growth rate dropping by 8.3
percentage points from 2011. Figures from the Beijing Statistics
Bureau (BSB) indicated that the city received 5 mn overseas
visitors in 2012, representing a negative growth of 3.7% as the
international markets remain sluggish. With a dominant share of
98%, domestic visitors were 226 mn in 2012, up by 8.4% on a YOY
basis. Impacted by the continued international economic
downturn as well as the deteriorating air quality at the beginning
of 2013, international visitations to Beijing continued to
experience a downward pressure in the first half of the year.
International visitors were 2.1 mn in the first six months of 2013,
down by 14.3% over the previous year, while domestic visitors
recorded a moderate YOY growth of 7.2% to 107.7 mn during the
same period. In terms of the country of origin, the US, Korea and
BEIJING, CHINA
Hotel supply
In 2011, the launch of a new star-rating standard by the China
National Tourism Association (CNTA), that sets higher criteria for
star-rated hotels, resulted in a reduction of star-rated hotel
inventory from 729 in 2010 to 612 in 2012. According to the
latest figures from the Beijing Tourism Bureau, the city had 62
five-star, 130 four-star, 207 three-star, 191 two-star and 22
one-star hotels as at the end of 2012. However, it should be
noted that this new policy has had a lesser impact on the
high-end hotel segment. The market continued to see the entry of
new upscale hotels in recent years, especially in traditional prime
locations of the city, such as the CBD, Lufthansa, and Wangfujing.
Notable openings in 2012 included a 289-key Conrad Beijing, a
313-key Four Seasons Hotel, a 369-key East Hotel by Swire and a
220-key Marriott Executive Apartments. Additionally, Waldorf
Astoria, Rosewood, W, a second Four Seasons and Mandarin
Oriental are slated to open in late 2013 and 2014. Our market
research showed that the development of upscale and luxury
hotels will continue to remain active in the next couple of years.
The scarcity of land supply in the city central areas is expected to
increase the competition between developers and operators on
the expansion of their upscale hotel portfolio. In addition, the
governments planning and development on new commercial
zones in suburban areas, such as Tongzhou New City and Dongba
Commerce & Trade Area, will provide new opportunities for the
development of hotel properties in the near future.
Hotel Performance2
Driven by the steady growth of the tourism market, all key
performance metrics for star-rated hotels in Beijing continued to
show a general upward trend in 2012, with occupancy reaching
60.0% and ADR RMB523 (USD83). In the first half of 2013, ADR
grew by 2.6% to RMB534 (USD85) compared to the same period
of 2012. However, overall occupancy fell to 54.9% in the same
period, which may be the result of the governments tightening
financial control measures and leadership change in China. Among
all hotel segments, five-star hotels suffered the most as a result of
the changes in the economic and political environment.
Preliminary figures from BSB indicate that ADR for the five-star
segment was RMB878 (USD140) in the first half of 2013, down by
0.6% compared to the same period last year, while five-star
occupancy level declined YOY by 3.4 percentage points to 58.7%.
It is observed that one of the causes of the stagnant demand
growth might be the eight disciplines called upon by the new
leadership last December, which require local governments to cut
entertainment expenditures, ceremonies, bureaucratic visits and
meetings.
2
KPIs are shown in the local currency first due to recent exchange
rate volatility against the USD. The local currency was converted to
USD at rates indicative for the period and these are shown in brackets.
10
Outlook
Beijing is set to continue to see positive GDP growth in 2014.
However, the growth rate is expected to be more moderate, due
to the global economic slowdown and the governments cooling
measures. Consequently, international visitation is anticipated to
experience a decline as a result of the economic uncertainty in
western countries. However, the domestic market should maintain
a healthy growth trend, boosted by rising disposal income levels.
Market performance for Beijings hotel market, in particular the
luxury segment, is expected to experience continued downward
pressure in 2014 due to the stagnant demand growth and
austerity measures by the government on hotel dining, banqueting
and meetings. However, we would expect that the citys
aggressive tourism planning in the 12th Five-Year Plan should
provide new potential opportunities for the development of the
tourism market in the coming years. A number of key activities
under this plan include the rapid development of citys
transportation infrastructure network; the strategic promotion of
the citys core areas such as the CBD East Expansion Area and
Financial Street Expansion Area; and the development of several
high-end industrial zones such as Tongzhou High-end Business and
Service Zone, Shougang High-end Industrial Integrated Service
Area, Lize Financial Business District and Huairou Culture and
Technology New District. Finally, the capital will also play host to
some international conventions and exhibitions such as the 9th
International Garden Expo in 2013, World Seed Conference in
2014, and the World Athletics Championships in 2015, to name a
few.
ADR (USD90)
AOR (57%)
Hotel Views
2014
SHANGHAI, CHINA
11
SHANGHAI, CHINA
Economy3
Shanghais economy is still facing dual pressure from the complex
external environment and its own development transformation.
Despite such challenges, the citys real GDP grew by 7.7% during
the first half of 2013, exceeding expectations, and 0.1 percentage
point higher than the national growth rate of 7.6%. The tertiary
industry maintained a strong growth (up by 9.6%), accounting for
61.7% of the citys total GDP-added value. Inflation levels remain
modest at 2.3%, down by 1.3 percentage points compared to the
same period last year. Although Shanghai demonstrated steady
growth in general economic development, it still faces challenges
such as instability due to excess liquidity in capital markets and
slowed export growth. Recently, the State Council has approved
the overall plan of Shanghais pilot free-trade zone project. The
RMB will be fully convertible in the zone, enhancing the citys
capability to establish itself as a key regional financial, trading, and
shopping center. The pilot free-trade zone project is expected to
launch on the national stage as it is implemented in other cities in
the future.
Hotel supply
Tourism arrivals
Total visitor arrivals in Shanghai registered a strong growth of
23% per annum between 2008 and 2012, with a sharp increase of
79% to an unprecedented level of 232.8 million in 2010 due to
the hosting of the Shanghai World Expo. International arrivals
declined by 4% and 2% in 2011 and 2012 respectively, since the
substantial growth of 35% in 2010. This can be largely attributed
to the decreased demand in the post-Expo period and the
continued global economic downturn. Nevertheless, the citys
international arrivals still maintained a CAGR of 6% between
2008 and 2012, a reflection of its higher degree of
internationalization compared to other cities in China. The
sluggish international markets continued to be felt in the first half
of 2013. The preliminary figures from the Shanghai Statistics
Bureau (SSB) indicated that the city welcomed approximately 3.6
million international arrivals, a drop of 10.1% compared to the
same period of 2012.Visitors from the traditional top three
overseas source markets (Japan, the US and Korea) reached
410,007, 308,119 and 259,641 respectively in 1H 2013, down by
33%, 7% and 15% respectively, compared to the same period in
12
Hotel Views
2014
SHANGHAI, CHINA
Hotel Performance4
Driven by the increasing demand generated by hosting the 2010
World Expo, market-wide ADR in Shanghai experienced a YOY
growth of 22% from RMB563 (USD82) in 2009 to the historic
peak level of RMB683 (USD103) in 2010. However, low
international arrivals as well as the oversupplied situation in the
post-Expo period caused ADR to suffer in 2011. SSB figures show
that market-wide ADR for star-rated hotels was RMB628
(USD99) in 2011, down by 8% over 2010. The continued global
economic downturn further hindered the ADR growth in 2012
with the KPI remaining stable at RMB628 (USD99). In 1H 2013,
average rates went up by 1.1% to RMB638 (USD101). The
hosting of the 2010 World Expo boosted Shanghais market-wide
occupancy level to a historic peak of 67.2% in 2010, which was
followed by a 12.0 percentage-point decline in 2011, as a result of
star-rated room supply outpacing the growth of room-night
demand post-Expo. Overall occupancy level recovered to 56.9%,
an increase of 1.7 percentage points in 2011. As the market has
yet to absorb much of the supply, occupancy continues to suffer
(55.8% in 1H 2013), remaining at the same level compared to that
in 2012.
Outlook
Several negative factors, such as the slowdown of Chinas
overheated economy, the insufficient domestic consumption
demand, the continued financial crisis in Europe, as well as the
Chinese leadership change, have had a significant impact on the
tourism and hospitality industries in Shanghai. The market also
currently faces an oversupply of hotel rooms and the rapidly
growing numbers of high-end hotel properties might put further
downward pressure on existing hotel performance (especially
ADR). Nevertheless, it is noted that a number of up-coming
opportunities could favor Shanghais hotel industry, such as the
entry of Disneyland and the redevelopment plan for the former
2010 World Expo site. Shanghai Disneyland is estimated to attract
10 mn visitors per annum and to become a new hot spot for
Shanghais tourism industry while boosting the development of
related industries.
ADR (USD105)
AOR (54%)
4
KPIs are shown in the local currency first due to recent exchange
rate volatility against the USD. The local currency was converted to
USD at rates indicative for the period and these are shown in brackets.
13
tokyo, japan
14
Hotel Views
2014
Tokyo, Japan
Economy
The Japanese economy in the first half of 2013 saw stable GDP
growth, up sequentially 1.0% in 1Q13 and 0.9% in 2Q13. This
growth is sustained by stable domestic demand, which includes
robust consumer spending and public investments emergency
economic package as part of the second arrow of Abenomics.
Notably, the corporate sector has been gearing up investment
activities and has switched from defense to offense mode in
response to the bold monetary easing policy called the first
arrow of Abenomics. According to some analysts, the recovery
has proved to be robust, supported by resurges in stock price,
J-REITs and real estate company stock indexes after a decline in
2Q 2013.
Tourism arrivals
According to the Japan National Tourism Organization, Japan
reported a total of 8.4 mn international arrivals in 2012 with a
YOY growth of 34.6%, showing a steady recovery from the
aftermath of the earthquake in early 2011. Seventy-six per cent
of total arrivals came from Asia Pacific, with South Korea as the
largest source market with 24.4% of the total, followed by Taiwan
and China. 2013 showed strong growth along with the weakening
Yen and the recent improvement in the Japanese economy. 1H
2013 recorded 4.9 mn arrivals, with a YOY growth of 21.0%. In
1H 2013, arrivals from Korea recorded 4.9 mn, with a growth of
39.7% compared to 1H 2012, showing a full recovery from the
significant shortfall caused by the 3/11 earthquake.
15
Tokyo, Japan
Hotel supply
Outlook
Hotel Performance
Tokyos hotel market is witnessing a steady recovery in its
performance throughout 2012 and during the first quarter of
2013. According to HOTERES research, hotels in the city enjoyed
an increase in occupancy in 2012. The average occupancy rate of
selected hotels was 82.6%, representing an increase of 12.1
percentage points over 2011. In 1H 2013, the rate was 82.9%,
showing further growth of 1 percentage point over the same
period in 2012. The rebounded occupancy level is likely to lead to
uplifts in ADR.
Tokyo HOTEL MARKET PERFORMANCE 20102012
16
Hotel Views
2014
mumbai, india
17
Mumbai, India
Economy 5
Mumbai, the economic hub of India, contributes over 20% to
Indias total GDP. The urban agglomeration has a population of
nearly 18.4 mn and as of the FY2012-13, it was estimated to have
a GDP of over INR181,366 crores (USD40.4 6 bn), up by 0.03%
YOY. The city houses the headquarters of major corporate houses
like Reliance Industries, Tata Group, Aditya Birla Group and Essar
Group, to name a few. Indias major financial institutions like
Reserve Bank of India, National Stock Exchange and Bombay
Stock Exchange, as well as Multi-Commodity Exchange of India
are also located in Mumbai. The citys diversified economy covers
an entire gamut ranging from entertainment and media, to
software, hospitality, textiles and manufacturing. Although with the
growth of the city there has been a substantial decline in the
number of industries, micro, small and medium size and
manufacturing units in Mumbai still provide employment to nearly
0.24 mn people.
MUMBAI GDP FY08-09 - FY12-13
Hotel supply
As of 2012, the total organized inventory accounted for over
14,000 keys. The inventory is primarily dominated by the luxury
segment with 33%, followed by 26% in the midscale segment, 21%
in the budget segment, 12% in the upper upscale segment and 8%
in the upscale segment. Five new hotels opened for business in
2012, adding a total of 1,193 keys to the existing room supply,
namely Sofitel Mumbai in BKC with 300 keys, Shangri-La (to be
rebranded) in Lower Parel with 390 keys, Ginger in Andheri with
116 keys, Country Inns and Suites with 94 keys, and Ibis and Royal
Tulip in Navi Mumbai with 196 and 97 keys, respectively. 2013 has
seen the introduction of only Residency Sarovar Portico in Malad
with a total of 71 keys.
Tourism arrivals 7
In FY2012-13, the total number of air arrivals surpassed 30 mn, of
which 67% were domestic and 33% were international. Currently,
Mumbai has only one airport with two terminal buildings, known
as the Chhatrapati Shivaji International Airport, which during
FY2012-13 handled an average of 82,760 passengers daily. The key
source markets in terms of total arrivals are the UK with 26%, the
US with 23.7% and Canada with 6.7%. The good news is that the
city is planning to add a new terminal to the existing airport and a
new airport in Navi Mumbai. Chhatrapati Shivaji is expected to
get a new terminal by the end of the year, referred to as T2. The
capacity for the improved airport is approximately 40 mn
passengers annually, spread over an area of 439,000 square meters
(sqm). The new airport is to be called the Navi Mumbai
International Airport and it aims to reduce the heavy congestion
at Chattrapati. The new airport is to be ready by 2014. However,
even though construction has not yet started, the recent approval
by the Union Ministry of Environment and Forests marks a major
milestone for the project.
18
Hotel Views
2014
Mumbai, India
Hotel Performance 8
Outlook
ADR (USD146)
AOR (61%)
5
All financial figures are sourced from the economic survey of
Maharashtra with respect to the Financial Year Calendar (April to
March)
Values include Mumbai City and Suburban and do not reflect Greater
Mumbai. Economic data was converted to USD at constant exchange
rates
6
7
All air travel data provided is by the Airport Authority of India and
with respect to the Financial Year (April to March)
8
KPIs are shown in the local currency first due to recent exchange
rate volatility against the USD. The local currency was converted to
USD at rates indicative for the period and these are shown in brackets.
19
ncr, india
20
Hotel Views
2014
NCR, INDIA
Economy 9
The National Capital Region (NCR) in India comprises urban
areas of the National Capital Territory (Delhi), Gurgaon,
Ghaziabad, Noida, Greater Noida, Faridabad and Manesar and has
a total population of 16.3 mn. Delhis per capita income in
FY2012-13 registered a growth of 6.9% YOY and was significantly
higher than the national average of INR39,168. In FY2012-13,
Delhis GDP registered a growth of 9% annually and contributed
4.0% to the countrys GDP. The regions tertiary sector,
comprising trade, hotels, restaurants, transportation,
communication, business and financial services, real estate,
storage, administration and other services, contributed 85.8% to
Delhis GDP in FY2012-13 compared to 80.5% in FY05. Due to
the continuous increase in the urbanization of the NCR,
contribution from the primary and secondary sectors (i.e.
agriculture and manufacturing) is steadily declining and currently
stands at 0.6% and 13.6% respectively. The trade, hotels and
restaurants sub-sector is the second largest contributor to the
NCRs economy after financial, insurance, real estate and business
services, and contributes to one-fifth of the total State GSDP. This
sector grew at 8.6% during FY13 over the previous year.
Tourism arrivals 10
Air arrivals decreased in FY2012-13 for the second time after a
slump in FY2008-09 in the past five years. The Indira Gandhi
International Airport welcomed total of 34.4 mn visitors, a
decrease of 4.2% in FY2012-13 over FY2011-12. In FY2012-13,
domestic arrivals declined by 9% to 22.8 mn, while foreign arrivals
increased by 8% to 11.6 mn. The ratio of domestic to foreign
arrivals was 66:34 in FY2012-13, against that of 70:30 in FY201112. Delhi alone accounted for 11.3% of the total foreign tourist
arrivals to the country with 2.3 mn. The top three source markets
for foreign tourist arrivals to Delhi are the US, the UK and
Canada with a respective 11%, 8% and 4% of total arrivals at its
airport in 2011. Information retrieved from the Ministry of
Tourism suggests that the total number of tourism arrivals in the
capital state in 2012 was 20.8 mn, with a domestic to foreign ratio
of 89:11. The growth rate was 19.9% for domestic and 8.6% for
9
All economic data is provided by the Directorate of Statistics and
Economics of Delhi and is in relation to the Financial Year (April to
March). Economic data was converted to USD at constant exchange
rates
10
All air arrival data is provided by Airport Authority of India with
respect to the Financial Year (April to March)
21
NCR, INDIA
Hotel supply
NCR currently has over 23,500 units in the organized and
unorganized segments, combined. Seventy-five percent of total
units are in the organized sector. Micro-market wise, NCR has
65% of its total organized inventory in Delhi, 21% in Gurgaon, 5%
in Noida and Greater Noida, 3% each in Manesar and Ghaziabad,
and 2% in Faridabad. In 2012, the total inventory went up by 9%,
that is, approximately 1,500 units entered the market last year.
Prominent new entrants were Park Plaza by Sarovar Hotels and
Kempinski Hotel in Delhi, Pullman Hotel and Double Tree by
Hilton in Gurgaon, Radisson Hotel in Ghaziabad and Savoy Suites
in Manesar. Of the total NCR hotel inventory, the luxury segment
contributes the highest share of about 34% of the total inventory,
followed by midscale with 30%, upscale with 16% and upper
upscale with 12%. The budget segment has the least contribution,
amounting to only 8% of the total inventory. NCR has a robust
pipeline of upcoming hotels with approximately 18,000 keys
expected to enter the market over the next five years. The
majority of this new supply is expected to be in Delhi (34%), given
the development of the Hospitality District near the international
airport. The opening of a number of new hotels in this area has
been delayed by a few months because of safety and security
concerns raised by the Airport Authority of India (AAI). Noida
has a share of about 25%, Gurgaon with 21%, Greater Noida 13%,
Manesar 4%, and Faridabad 3% of the total upcoming supply in the
NCR.
Hotel Performance 11
The hotel performances in NCR have been declining over the
past three years, with the exception of 2010 that showed a minor
improvement over 2009 figures. The urban agglomeration of NCR
has various micro-markets, namely Delhi, Noida, Gurgaon,
Faridabad and a few other cities that perform differently. Overall
in the NCR in 2012, AOR dropped to 62.0% from 64.2% in the
previous year and ADR to INR7,835 (USD147), down by 7% in its
INR value over 2011 (-18.8% on the dollar value). As a result
RevPAR declined to INR4,858 (USD91), marking a decrease of
10.2% on the rupee in 2012 over 2011. The decrease in the key
performance metrics is mainly a result of slower economic
growth and significant additions to supply. Among the micromarkets, Delhi achieved the highest ADR of USD149, while Noida
recorded an AOR of about 64% in 2012. This negative trend
seems set to continue, as preliminary figures for 1H 2013 show a
sluggish performance with ADR estimated to be USD132 against
USD156 in 1H 2012, and AOR plummeting to 54% from 66%
during the same period last year.
Outlook
Historically, NCR has been a lucrative market for most hospitality
players, which can be ascertained by the quantum of inventory
existing and upcoming. The Hospitality District at DIAL 12 will
have an influx of fresh inventory in NCR in the second half of
2013, after obtaining clearance from the AAI. A total of over
4,200 keys are expected to open in the next five years in the
Hospitality District alone. Delhi, the capital city of India, has
outgrown its boundary as an agglomeration to its suburbs to
accommodate its increasing population and livelihood. However,
the demand of hospitality accommodation remains strong in the
prime areas in the city. As the availability of land continues to be a
constraint in these areas, this has triggered hotel development in
micro-markets like Noida, Gurgaon and Faridabad. ADR and AOR
might experience further decreases in 2013, given the economic
instability in the light of the impending General Elections due in
2014, coupled with the strong pipeline of new hotel inventory
entering the market. The stiff competition, together with lower
AOR, is likely to put downward pressure on ADR this year. With
such a scenario, budget and midscale segment hotels are likely to
perform better than the upper upscale and luxury hotels, given
their flexibility to play in a lower price segment.
ADR (USD146)
AOR (61%)
11
KPIs are shown in the local currency first due to recent exchange
rate volatility against the USD. The local currency was converted to
USD at rates indicative for the period and these are shown in brackets.
12
22
Hotel Views
2014
Jakarta, indonesia
23
Jakarta, indonesia
Economy
GDP growth is projected to have reached 6.0-6.2% during 2Q
2013. For the full year, growth is forecast to be within the range
of 6.3-6.8%. The stock market index decreased 6.4% during the
second three months of the year, with the composite index
closing at 4,515 on June 21. On the currency side, the Rupiah
depreciated by 2.3% over the quarter to Rp.9,936 per USD1.00.
Meanwhile, the Bank of Indonesia (BI) took action to increase the
BI Rate to 6.0%, after maintaining the rate at 5.75% for the
previous five consecutive quarters. Inflation over the first five
months of 2013 reached 2.3%, higher than the 1.2% recorded in
the same period last year. This higher inflation was mainly
attributed to rising food prices.
INDONESIA GDP 2008 2012
Tourism arrivals
The city experienced continuous growth in the number of visitors
over the past five years. According to the Jakarta City
Government Tourism and Culture Office, the city welcomed a
total of 28.8 mn air arrivals in 2012. Domestic and international
air arrivals reached over 22.9 mn and 5.9 mn respectively, showing
that the majority of arrivals were generated within the nation. In
growth terms, domestic air arrivals in 2012 grew by 15.3%
compared to 2011, whilst international air arrivals grew at a rate
of 8.4%. As a capital city, Jakarta continued to see growing
demand for MICE along with increased business activities, both
domestically and internationally, and the governments promotion
to encourage the business, which significantly contributed to the
increase of demand for the citys hotel market.
Hotel supply
In 2012, the total room inventory was 26,113, with a growth of
8.4% compared to 2011. As the demand is expected to grow
along with infrastructure (including new air routes), a number of
global hotel operators continue to expand in the nation. An
example is Accor Group that added more than a half dozen new
openings from 2H 2012 to its current portfolio of approximately
11,000 rooms. Local hotel companies also intensified their growth
efforts, such as Santika Hotels & Resorts, one of the major leading
local hotel companies. The group came up with an aggressive
expansion plan to increase its portfolio from its current 57 hotels
to 100 hotels by 2016. Along with other expansion activities of
major hotel operators, it is expected that a further 5,900 rooms
will be added to the existing room inventory by the end of 2015.
24
Hotel Views
2014
Jakarta, indonesia
Hotel Performance
Outlook
ADR (USD90)
AOR (73%)
Source: STR Global, Cushman & Wakefield
25
26
Hotel Views
2014
Economy
The upswing in the local economy in late 2012 carried over into
the first quarter of 2013, whereas GDP growth registered 2.8%
over the same period a year earlier. Second quarter indicators
released thus far point to a similar momentum, but the slowdown
in China and weaker-than-expected recovery of the US economy
serve as reminders that globally, the recovery remains fragile. The
local economy is forecast to expand by 3.3% this year, but its
growth could fall short of this target if the major economies
continue to stall and exports decline. Nonetheless, private
consumption in China will still provide the boost to the economy
and support growth through the remainder of the year, even as
the slowdown continues. Private consumption grew by 7.0% in
the first quarter, after a growth of 2.8% in 4Q 2012. Strong
consumption and tourism growth is supporting much more
sustainable retail sales in 2013. Through the first half of 2013,
retail sales increased by 14.4% YOY. Through June 2013, the
number of total and Mainland China tourist arrivals increased by
13.6% and 20.7% YOY respectively. Tourism will remain a pillar of
the local economy and continue to support growth in the retail
and hotel sectors.
Tourism arrivals
Hong Kongs tourism industry has been closely tied up with
Mainland China. Hong Kong has been the top outbound tourism
destination for mainland residents. China and Hong Kong have
become the worlds largest two-way tourism markets in the 15
years since the territorys return to the mainland. Mainland China
has opened the individual visit scheme to Hong Kong for
residents of 49 Chinese cities, whilst Hong Kongs total tourism
investment in Mainland China reached USD17.1 bn with the
establishment of 2,904 tourism enterprises. The aggregated
numbers of visitors for this two-way tourism market reached 108
mn. Driven by the continued strong growth of Chinese market,
Hong Kong received more than 25.4 mn visitors in the first six
month of 2013, registering a YOY growth of 13.6% from the same
period of 2012.Visitors from Mainland China reached 18.8 mn
during the same period, reflecting a 20.7% YOY growth from the
previous year, accounting for 74.2% of the total visitor arrivals.
Among the short haul markets, Taiwan, South Korea and Japan
27
Hotel supply
As at the end of June 2013, Hong Kong features 217 hotel
accommodations, providing a total of 68,677 hotel rooms. Among
that, the number of High Tariff A, High Tariff B and Medium Tariff
hotels were 29, 63 and 49, offering 14,837, 22,698 and 11,745
rooms, respectively. Although the number of hotels and the
number of rooms maintained CAGRs of 9.1% and 5.3%
respectively over the past five years, such high growth has been
offset by strong growth in room-night demand, which is
considered the main reason behind the buoyant occupancy level
recorded in this market. The strong demand potential as well as
the outstanding performance achieved by existing hotels further
boosts the confidence and interest of hotel owners and
developers in the development of hotel projects. The market is
expected to see an influx of hotel supply in the coming five years,
with the largest on record in 2013 and further strong growth in
2014. The number of hotels and the number of rooms are
expected to increase from an estimated 233 and 71,219 in 2013,
to 277 and 78,025 in 2017, forecasting to maintain CAGRs of
4.4% and 2.3%, respectively in the period of 2013-17. It is
observed that traditional internationally branded hotel operators
are continuing the expansion of their brand portfolio. Examples
are openings of Courtyard by Marriott Hong Kong Sha Tin and
Hotel Indigo Hong Kong Island in 1Q 2013, and the proposed
opening of Penta Kowloon in 2H 2013, Novotel Nathan Road
Kowloon Hong Kong Extension Project in 1Q 2015, Rosewood
Hotel and Shangri-la Hotel in 2016 and 2017 respectively.
Additionally, domestic brands, such as Butterfly, Ovolo, Brighton
and Dorsett, remain active with a number of hotels under
construction and planning.
Hotel Performance
As the third largest financial center in the world following New
York and London, Hong Kong is also a hub for conference and
events, and a strategic business gateway connecting China and the
rest of world. Hong Kongs hotel market has largely benefited
from a continuous annual demand growth generated by the
buoyant business and MICE activities, as well as increasing
numbers of visitor arrivals, which help the citys hotels to achieve
the highest performance levels in recent years. After a successful
2012, figures from HKTB showed that in the first six months of
2013, ADR for all hotels in Hong Kong was HK$1,423 (USD184),
a slight decline of 1.6% compared to the same period of 2012,
whilst occupancy stood at 87%, remaining stable when compared
to the corresponding period of 2012. Market-wide RevPAR was
HK$1,238 (USD160), down by 1.6% over the same period last
year. In terms of performance by market segment, High Tariff A
market-wide occupancy remained flat at 84%, grew moderately by
2 percentage points YOY, while ADR dropped by 2.3% YOY to
HK$2,368 (USD305) in YTD June 2013. As a result, RevPAR of the
luxury hotel market remained stable at HK$1,989 (USD257), up
by 0.1% YOY.
28
Outlook
Since the global economy has not yet showed clear signs of
recovery in 2013, we would expect Hong Kongs tourism market
to continue to be negatively impacted by the shrinking demand as
a result of the global economic recession.Visitor arrivals from
major international source markets might lack growth momentum
to reverse the downward trend or might grow at a moderate rate
in the short-term. However, total visitor arrivals to the city are
expected to rise, largely driven by the increasing demand from
Mainland China as well as the robust growth of the MICE market.
Hong Kongs tourism market will further benefit from the tourism
promotion and cooperation between Hong Kong and Mainland
China, as well as the citys infrastructure construction. According
to HKTB estimates, Hong Kong is estimated to receive 51.9 mn
of visitor arrivals in 2013, representing a YOY growth of 6.8%.
Among that, visitors from Mainland China are expected to grow
by 8.9% on a YOY basis to reach 38.0 mn in the year. In addition,
the development of infrastructure facilities such as the Kai Tak
Cruise Terminal in mid-2013 is expected to further enhance the
tourism appeal of Hong Kong and bring a new growth point for
the tourism industry of Hong Kong. The market supply growth
will likely exert some downward pressures on the hotel market
performance. However, occupancy is still expected to remain high,
supported by the strong demand growth. ADR, albeit in a steady
growth trend, might grow at a more moderate pace, considering
the shrinking corporate travel budget.
ADR (USD185)
AOR (87%)
Hotel Views
2014
singapore
29
SINGAPORE
Economy
Tourism arrivals
According to the Singapore Tourism Board (STB), the preliminary
estimated data for total international arrivals to Singapore in 2012
reached 14.4 mn arrivals, up 9.3% from 13.2 mn in 2011. The
majority of foreign arrivals were from the Asia Pacific region, with
Indonesia as the largest source market, followed by China and
Malaysia. 1H 2013 again showed strong growth in international
arrivals, recording 7.6 mn with growth of 7.5% compared to 1H
2012. According to the International Congress and Convention
Association (ICCA), Singapore was picked as Asias Top
Convention City for 11 years running and hosted a record of 150
ICCA events in 2012, the highest so far. The nations strong
positioning as Asias top convention city contributed to growth in
demand by attracting more MICE demand. In addition, the
improvements in tourism attractions and infrastructure such as
Gardens by the Bay, the River Safari and Marine Life Park, and
Singapore Sports Hub boosted demand growth by enhancing its
destination image and attracting more travelers. Furthermore,
Singapore Changi Airport recently released its expansion plan to
build a fifth terminal by mid 2020, which will significantly
contribute to increases in tourism arrivals by adding up to 50
million passengers per year to the current capacity of around 66
million passengers per year.
30
Hotel Views
2014
SINGAPORE
Hotel supply
The recent surge in new hotel openings in Singapore continued in
2012, though at a much slower pace. Total room-nights available
for 2012 were 12.4 mn, an increase by a mere 1.1% compared to
2011 levels at 12.2 mn. In 2012, a few major international brands
made their debut in Singapore including W Singapore Sentosa
Cove and Park Royal on Pickering. The market expects a sizeable
new supply in 2013, as more than 4,000 rooms are planned to
open by the end of the year. Supply in the pipeline include the
Dorsett Regency (in China Town with 285 keys) opening in 3Q13,
the Westin Singapore Marina Bay (in Asia Square Tower II with 305
rooms) that should be operational before year-end, followed by
Sofitel So Singapore (in the former Ogilvy Centre with 134 keys)
in 1Q14, Holiday Inn Express in 2Q14 (with 442 keys) and Patina
Hotel in 1Q15 (with 157 keys), to name a few.
Hotel Performance
According to STB, the recently updated preliminary data showed
that the estimated hotel room revenue for 2012 almost reached
S$2.8 bn (USD 2.2 bn), resulting in a further 8% growth compared
to 2011. The average occupancy throughout 2012 was 86.0%. That
is a decrease of 0.5 percentage point compared to 2011s
occupancy. With stable occupancy, ADR increased from S$245
(USD195) to S$257 (USD206), reflecting a 4.9% growth from
2011. RevPAR reached a record high of S$221 (USD177), up by
4.3% from 2011. Among Singapores four hotel tiers, luxury hotels
enjoyed the largest growth in RevPAR by 7.3%, recording a new
high at S$344 (USD275). The RevPAR of upscale hotels rose by
6.2% to S$259 (USD207), while mid-tier hotels and economy
hotels recorded RevPAR growth by 4.5% to S$171 (USD137) and
1.6% to S$94 (USD75) respectively. For 1H 2013, the estimated
market-wide average occupancy stayed stable at 86%, dipping by a
mere 0.2 percentage point compared to 1H 2012. However, ADR
for 1H 2013 reached S$255 (USD205), up 2.3% from S$249
(USD199) over the same period last year.
Outlook
While the concerns on any potential impact on demand due to
uncertain global economic climate remain, the market is still
expected to have healthy demand growth, together with an
increased variety of demand generators, supported by the
governments investment in tourism infrastructure and attractions.
Yet, given the sizeable new supply in the medium-term, there also
exist some concerns of slowed growth in hotel performances.
ADR (USD202)
AOR (86%)
31
32
Hotel Views
2014
Economy
Sri Lanka is steadily moving up the middle-income country
rankings, on the back of sustained domestic consumption,
investments and growth in the services sector. After a steady
growth of 8% in 2010 and again in 2011, the economy slowed
down to a more moderate growth rate of 6.4% in 2012 amidst
global headwinds, fiscal consolidation and moderation in external
demand. The growth in 2013 is expected to reach 6.8% and is
likely to accelerate further to 7.2% in 2014, largely supported by
an improving industrial output, monetary easing and a stable
growth in services. The government has prioritized the
improvement of transportation infrastructure over the next two
to three years and the developments are already in progress. A
modernized international airport at Colombo, an expressway
between Colombo and Kandy, a brand new terminal at Colombo
port and developments at Hambantota are underway. The tourism
industry has already crossed USD1 bn revenue target by 2012 and
is all geared up to reach USD3 bn by 2016. Tourist arrivals have
significantly increased at an average of 25% over the last three to
four years and are likely to exceed 1.1 mn this year, the highest
ever recorded. Domestic tourism is also growing at a brisk pace
of 30% per annum, and the overall outlook for the tourism
industry remains exuberant for the short to medium-term.
Source: Sri Lanka Tourism Development Authority, Cushman & Wakefield Research
Tourism arrivals
Sri Lanka received 1.0 mn foreign tourists in 2012, an increase of
17% from 31% in 2011, successfully achieving its set target of 1
mn arrivals for 2012. Total tourist arrivals increased by 15% in
2011, to about 2.4 mn. The government is now focusing on
meeting the target for 2016 set at 2.5 mn tourists. 1H 2013
witnessed arrivals of over 0.5 mn tourists against 0.45 mn in 1H
2012, with a growth rate of 13% over the same period last year.
The highest increase was recorded in the month of May, when
arrivals jumped up by 21.8% over the same month in 2012.
November, December and July have been the peak months for
tourist arrivals in Sri Lanka in the last three years. December
2012 recorded the highest number of arrivals in the three-month
period, and also saw a 15% increase over December 2011. In
terms of source markets, the latest figures available refer to 2011.
33
Hotel supply
Outlook
Hotel Performance
The market-wide occupancy in the graded establishments was
75.8% in 2012, a decrease of 8.8 percentage points over 2011. As
AOR dropped, hotels in Colombo enjoyed higher ADRs, which
went up by 11.0% from USD110 in 2011 to USD122 in 2012.
ADR decreased by 16.1% in 2011 from USD131 in 2010. As
tourist arrivals are on the rise, it would appear that Colombos
hoteliers are trying to optimize occupancy and ADRs to increase
profit levels. An obstacle could come from the minimum room
charge limit posed by the government after the end of the civil
war, with the aim of helping the tourism sector recover. Tourism
accounts for one of the top six foreign exchange earners to the
country and is growing in importance.
COLOMBO HOTEL MARKET PERFORMANCE 2010 2012
ADR (USD125)
AOR (76%)
34
13
Upscale tourism is to target high spending tourists as it is expected
that the average spending per tourist per day to increase to over
USD200 in next ten years
Hotel Views
2014
35
Economy
Koreas growth forecast by the central bank was lowered to 2.6%
from 2.8% due to prolonged uncertainty over the global economy.
Koreas central bank froze the key interest rate at 2.5%, a move
aimed at supporting the governments drive for the economic
stimulus. The South Korean economy grew slower than what was
earlier forecast, as consumer spending remained subdued and
export growth slowed amid the Yens slide. Although the growth
of the global economy had been somewhat more sluggish than
estimated at the beginning of the year, it is showing a gradual
trend of recovery. Although uncertainty surrounding the Korean
economy still persists, the government expects that the economy
will steadily recover due to the fiscal stimulus measures and
monetary policy.
Tourism arrivals
In 2012, the nation welcomed a total of 11.1 mn international
arrivals (out of 24.9 mn total arrivals), with a strong growth of
13.7% YOY, exceeding the nations target of 10 mn international
arrivals for the first time ever. Once again, the Asia Pacific region
made up the majority of international arrivals by taking up almost
80% of the total. Japan continued to be the largest source market,
followed by China and the US. The robust growth was mainly
driven by the Chinese market, which recorded a YOY growth of
27.8%, while the Japanese and US markets grew at a much slower
pace, by 7% and 5.5% respectively. However, 1H 2013 showed
moderate growth with an increase of 3.6% compared to the same
period in 2012. The major shortfall was caused by the Japanese
market, which decreased by 26%. This was mainly due to the sharp
strengthening of the Korean Won against the Japanese Yen, a result
of the current Abenomics policies implemented in early 2013. On
the other hand, the Chinese market expanded by 46% and
became the largest source market for 1H 2013, replacing Japan.
Incheon International Airport is currently undergoing its third
expansion phase, which is to be completed by 2017 and should
bring its handling capacity to 62 mn passengers a year. By 2020,
the airports capacity is expected to reach 100 mn, upon
completion of the fourth expansion phase.
36
Hotel Views
2014
Hotel supply
According to the Ministry of Culture, Sports, and Tourism, Seoul
has 178 hotels with 28,433 rooms as of June 2013, showing a
further increase of 4.7% in total room inventory from 2012,
after 2012s growth of 7.9% from 2011 levels. Notable additions
to the citys inventory include the Conrad Seoul (434 rooms)
that opened in November 2012 as a part of Seouls International
Finance Center, and is located in Yeoido, Seouls financial district,
followed by the new Ibis Insadong with 363 rooms that opened
September 2013. Seouls second JW Marriott is also expected to
open in December 2013. The city also saw the debut of various
mid-tier brands, developed and launched by local hotel companies,
who are expanding across the country. Furthermore, the city
is expected to continue witnessing an influx of new supply over
the next three to four years. While the majority of new supply is
likely to be in the mid-scale and select-service segments, such as
Ibis Budget Ambassador Dongdaemun that plans to open in 2014,
a few projects are expected to be in the upscale or luxury space,
including the Four Seasons Hotel Seoul, which will be opened in
2015, leading to a more diverse mix in the citys hotel inventory in
the near future.
Hotel Performance
While the official hotel performance statistics for 2012 have not
yet been published, Cushman & Wakefields preliminary data
shows that Seouls hotel market had steady but moderate growth
in 2012, albeit the growth rate slowed down relatively to previous
years. The market-wide occupancy rate stayed around at 79%,
slightly decreasing by 1 percentage point compared to 2011.
However, it is estimated that ADR improved by almost 5% YOY,
from KRW157,116 (USD142) to approximately KRW165,000
(USD146), as the market-wide occupancy remained robust. The
resulting market-wide RevPAR grew by 2.5% YOY from
KRW126,867 (USD114.5) to KRW130,053 (USD115.4). With
some changes in demand dynamics mainly caused by a sharp
decline of the Japanese market during early 2013, the market
experienced some downturn in performance. While the marketwide performance data for 2013 is not available yet, our research
showed that selected major hotels experienced a sharp decrease
in RevPAR by around 15-20% in 1Q 2013, as the market was not
ready for the sharp changes in demand dynamics. The industry
stakeholders expect that the market will need some time to
recover to achieve a similar performance level to 2012s.
Source: Ministry of Culture, Sports & Tourism and Cushman & Wakefield Hospitality
Outlook
While concerns remain over the fluctuations in exchange rate and
expected new supply entering the market in the near future,
Seouls hotel market is expected to continue to grow in the midto long-term, thanks to the growing demand from China that is
lessening the effects of the decline in demand from the Japanese
market. The upcoming major international events, including the
2014 Incheon Asian Games and the 2018 Pyeongchang Winter
Olympics, are likely to enhance the awareness of Korea as a
tourism destination.
ADR (USD129)
AOR (71%)
37
bangkok, thailand
38
Hotel Views
2014
BANGKOK, THAILAND
Economy14
According to the National Economic and Social Development
Board (NESDB), the 2013 GDP growth has been revised
downward to 3.8-4.3% from the previous forecast range of
4.2-5.2%, as the Thai economy is slated for weaker-than-expected
economic conditions. This is particularly attributed to the slow
economic reforms by the government, the uncertain recovery of
the global economy and the continuous strengthening of the Thai
Baht. In April 2013, the Baht reached its 16-year strongest value
against the US dollar, leading to lower-than-anticipated growth of
exports, due to the negative impact of the European debt crisis
and quantitative easing in the US. Consequently, economic
management in the remaining quarters is expected to come into
effect. NESDB pointed out that weakening economic momentum
and ensuring the stability of the currency should be considered as
key priorities. With a GDP growth of 5.3% in 1Q 2013, the Thai
economy continued to expand, but at a slower pace than in 4Q
2012.
BANGKOK GDP 2008 2011
Tourism arrivals
Thailand received a total of 22.3 mn international air arrivals in
2012, representing a YOY growth of 16%. Bangkok has two
international airports, Suvarnabhumi Airport (BKK) and Don
Mueang International Airport (DMK). The newer Suvarnabhumi
Airport caters to 90% of the air arrivals, while Don Mueang
International Airport caters to 10% of the arrivals. The
international visitor arrivals at Suvarnabhumi Airport are the main
contributors to the citys overall tourism and hospitality market.
According to the latest air transport statistic by Airport of
Thailand (AOT) Authority, BKK received a total of 25.5 mn
visitors, with a dominant share of 73% foreigners in 2012, up by
4.1% over the previous year. Domestic visitors accounted for 27%
of visitor arrivals, witnessing a growth of 31.3% during 2012.
Arrivals at DMK were 1.4 mn in 2012, mostly domestic.
International tourist arrivals recorded a growth of 20% in 1H
14
39
BANGKOK, THAILAND
Hotel supply
Bangkok has a substantial supply of hotels, with more than 61,000
keys as of 2012. Of the total inventory, 51% belongs to the
midscale and upper midscale segments. The upscale hotels
constitute 18%, followed by upper upscale with 16%, luxury with
14% and the remainder in economy hotels. As per our research,
Bangkok has about 241 star-rated hotels in 2012, including 26
luxury and 36 upper upscale hotels, contributing 26% towards the
total hotel stock. However, the midscale and upper midscale
segments, combined, amount to 55%, followed by 17% of the
upscale segment and the rest being economy hotels. The majority
of the existing upper upscale and luxury hotels in Bangkok are
located in the areas of Ploenchit, Riverside, Sathorn, Silom and
Sukhumvit. A few of the notable openings in 2012 were W hotel,
Sofitel So Hotel, Okura Prestige Hotel, Eastin Grand Hotel,
Oriental Residence, Glow Pratunam, Best Western Plus, Tune
Hotel Asoke and Lit Hotel. Approximately, a total of 2,700 keys
were added across different segments. Forty-one per cent of this
supply belonged to the luxury segment, followed by the upscale
segment with 28%, midscale and upper midscale segments with
14%, upper upscale with 9% and the remainder 8% were economy
hotels. In 1H 2013, about 1,700 keys opened in Bangkok, with
1,000 more waiting to be opened in 2H 2013. Some of these new
hotels are Hilton, Mercure Siam, Ibis Siam, Double Tree by Hilton
Sukhumvit and Holiday Inn Sukhumvit. There will be further
significant additions of more than 3,200 keys between 2014 and
2017.
Hotel Performance
Bangkok hotels enjoyed an increase in ADR of 7.0% to USD105 in
2012. AOR rose by 7.1 percentage points to 69.3%. Room rates
and occupancy levels have moved upwards over the past three
years, given the healthy growth rate of tourist arrivals. In 2012, the
tourism industry rebounded strongly from the impact of political
strife and the 2011 floods. RevPAR jumped by 19.3% in 2012, over
2011, from USD61 to USD73. However, as far as 1H 2013 is
concerned, the momentum seems past, as ADR decreased to
USD97 against that of USD110 in 1H 2012 and AOR only had a
marginal increase of 1 percentage point to 65% over the same
period, which was not enough to offset the negative effect of the
ADR decline.
40
Outlook
The supply of new inventory being added in 2013 is going to
exert some downward pressure on ADRs in the short-term.
However, AOR may not be as affected as Bangkok is likely to see
further improvement in tourist arrivals with Tourism Authority of
Thailands forecast of 24.5 mn arrivals by the end 2013. The
planned expansion of Suvarnabhumi Airport is likely to increase
the hubs handling capacity by 15 mn passengers per annum, to a
total of 60 mn. This is expected to further boost demand for
room-nights for the city in the long-term.
ADR (USD114)
AOR (68%)
Hotel Views
2014
41
Economy
According to the General Statistics Office of Vietnam, HCMC
achieved a GDP growth rate of 9.2% in 2012 a great result,
albeit a slowdown compared to the growth of 10.3% in 2011.
During 1H 2013, HCMCs GDP reached nearly USD16.2 bn, an
increase of approximately 7.9%, slightly under the growth rate of
8.1% in the first half of 2012. In 1H 2013, total new registered and
additional FDI reached approximately USD188.9 mn from 175
projects, decreasing significantly by 23% YOY. The property sector
ranked second with circa USD40.5 mn, accounting for
approximately 21% of the total investment. Singapore continues
to be the leading investor with USD71.6 mn from 28 new
projects, accounting for 38% of the total new investment into
HCMC, followed by Japan (14.4%) and Holland (11%).
Tourism arrivals
Tan Son Nhat Airport is the largest airport in Vietnam and
accounts for the majority of inbound arrivals. By 2020, HCMC is
expected to have a new international airport, which will be
located approximately 40 kilometers from the city and will serve
as its second airport. The new hub is expected to ease the traffic
at Tan Son Nhat and should be able to service approximately 100
mn passengers. During 2012, the total number of air arrivals to
HCMC was 10.2 mn, increasing by 4.2% over 2011. The top three
major source markets were Russia, accounting for 19% of total
tourist arrivals, followed by China with 18% and Korea with 12%.
Of the total air arrivals into HCMC, 30% were international
visitors, whilst 70% were domestic.
42
Hotel Views
2014
Hotel supply
Outlook
Hotel Performance
In 2012, AOR for the city dropped by 6 percentage points to
63.9% YOY, whilst ADR increased by 1.8% YOY to USD112,
resulting in a 7% decline in RevPAR to USD72. This can be partly
attributed to a significant increase in supply that outpaced growth
in demand, thus lowering occupancy levels. In 1H 2013, AOR was
61%, having seen negligible growth over the 1H 2012 level, which
was 60%. ADR climbed 15% to USD120 for 1H 2013, compared
to the USD104 achieved in 1H 2012.
HCMC HOTEL MARKET PERFORMANCE 2008 2012
ADR (USD132)
AOR (63%)
43
44
BANGKOK, THAILAND
Hotel Views
2014
REGIONAL HOTSPOTS
In this third edition of Hotel Views we have again expanded our
coverage of new destinations that we believe present new and
interesting opportunities in 2014. Our Regional Hot Spots now
include Thimphu, Kathmandu and Manila in addition to the eight
destinations that were presented last year. Some of these markets
are among the top exotic travel destinations in Asia, while others
have seen steady tourism growth in recent years. We believe
these hotspots offer great potential to developers, hoteliers and
investors alike to create the ultimate tourists dream of Asian
hospitality.
45
dhaka, bangladesh
46
Hotel Views
2014
DHAKA, BANGLADESH
Economy15
Bangladeshs GDP has managed to record consistent 5.56%
growth rates for the most part of the last decade. From 6.7% in
2011, the growth has slowed to 6.3% in 2012 and is expected to
moderate further to 5.8-6% in 2013. However, the outlook for
2014 remains positive with projections reaching above 6%,
supported by a pick-up in exports, growing investments and
domestic consumption. The country is one of the largest
ready-made exporters in the world and employs more than 3 mn
people with revenues exceeding USD12 bn per year. Dhaka
houses a larger share of garment manufacturers in Bangladesh,
which came under heavy scrutiny after a string of accidents and
the Rana Plaza collapse in April this year. The travel and tourism
sector contributed 2.2% of GDP in 2011 and the sector noticed a
rise of 7.3% in 2012. Demand in the hotel sector arises primarily
from Bangladeshs growing middle class population of over 30 mn,
of which 1.5 mn reside in Dhaka.
Hotel supply
Tourism arrivals16
Dhaka is well connected to India, the Middle East and South-east
Asia. More than 30 international airlines fly into Dhaka, which has
seen passenger traffic grow from approximately 3.2 mn in 2005 to
6 mn passengers in 2012. Dhaka attracts tourists for its numerous
historical and archeological sites; it has the longest natural
uninterrupted beach in the world (124 kilometers) and is home
to several World Heritage Sites. The tourist season in Dhaka
occurs during winter, that is from November to February, as
summers are hot and humid and the city has a long rainy season
that makes it inconvenient to travel for tourists. The government
created a Tourism Board in 2009 in addition to the Bangladesh
Parjatan Corporation, which has existed for the last 40 years to
expedite the growth of tourism in the country. The government is
keen on promoting tourism, and in 2011 allocated USD8.3 mn to
the Board for promoting and branding Bangladesh as a new
tourism destination on the world stage. Dhaka is the main port
of entry for tourists coming into the country. A relatively stable
political environment in 1H 2012 and the improving economic
outlook in the Eurozone boosted tourist arrivals in Dhaka in
2012. The good times, however, did not roll into the first half of
2013. Afraid of being caught up in political turbulence, arrivals of
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16
47
DHAKA, BANGLADESH
Hotel Performance
Outlook
Dhaka has only 1,200 quality rooms at its existing five luxury
hotels, which are not enough to cater to the needs of the visitors
to the capital. These hotels are able to command a premium and
therefore, are also able to achieve robust AOR. The majority of
the existing hotel supply in the city lies in the unorganized
segment, with only six hotels in the branded hotel segment. The
number of hotel reservations coming through travel agents in the
city saw a decline in 1H 2013, as compared to the corresponding
period last year, due to the political turmoil in the country. The
citys hotels noticed a positive spike in 2012 in terms of key
performance indicators; however, the first half of 2013 has not
been very encouraging and KPIs have been declining, indicating
that the year might close below the 2012 figures. Dhaka hotels
collectively achieved an ADR of USD78 with an AOR of 68%
during 1H 2013, while hotels in the branded segment recorded an
ADR of USD157 with an AOR of 75%.
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Hotel Views
2014
THIMPHU, BHUTAN
49
THIMPHU, BHUTAN
Economy17
Nestled between India and China, this landlocked nation, perched
high in the Himalayas, weaves an enigmatic allure. Only
superlatives describe this nation the youngest democracy; the
worlds highest airport; the last Shangri-La. Steeped in Buddhist
culture, the kingdom is known for its adoption of Gross National
Happiness as an alternative development model. However, the
opposition, which swept into power this year, is likely to lean
towards harder economic targets to foster growth. The aim is to
retain the crucial elements of its heritage while modernizing. Its
capital, Thimphu, is an anachronism that symbolizes this evolution:
the only capital city without any traffic lights, yet caught in a
housing boom. Dependent on India for aid as well as a primary
market for its exports, Bhutan has achieved remarkable economic
growth and made significant progress in reducing poverty and
advancing social development over the past decade. The estimated
GDP growth rate for the country slowed in 2011-12, to 8.5%
from 11.7% during 2010-11, as loans dried up in the face of the
Indian Rupee liquidity crunch18.
BHUTAN GDP FY2008-09 - FY2012-13
Hotel supply
The inventory in Thimphu is relatively limited in terms of number
and variety. Currently, the commercial accommodation that is
available is in the form of hotels, guest houses, farm-stays and
home-stays. Of the total 470 keys across all hotels, the budget
segment dominates 86% of the inventory. The only known
branded hotels is the Taj Tashi with 66 keys, operated by Taj
Hotels Resorts & Palaces.
Tourism arrivals
Currently, the only international air access to Thimphu is via Paro,
which lays 55 kilometers west of the capital. The nearest railway
station is Hasimara, 150 kilometers from Thimphu, and is located
in the state of West Bengal. As of 2012, Druk Air - Royal Bhutan
Airlines offers domestic and international connectivity at Paro
International Airport in Bhutan. Internationally, it connects
Bhutan with Bagdogra, Bangkok (Suvarnabhumi), New Delhi,
Dhaka, Gaya, Kathmandu, Kolkata and Singapore. The airport is
also serviced by Buddha Air, which provides charter services from
Kathmandu. According to the latest statistics retrieved from the
National Statistics Bureau of Bhutan, the total number of visitors
to Thimphu in 2011 was 35,282, implying an increase of 32% over
2010. The capital city receives approximately 24% of the total
visitors to the country, making it the second most visited city
after Paro. With respect to seasonality, the city, much like the rest
of the country, sees a maximum inflow of tourists during autumn
(August-October) and spring (February-April). The majority of
travelers visiting Thimphu are from the US, Japan, China and the
UK.
50
17
All financial figures are provided by the Royal Monetary Authority of
Bhutan and are in relation to the Financial Year Calendar (July-June).
Economic data was converted to USD at constant exchange rates
18
Bhutanese Ngultrum is pegged to the Indian Rupee
Hotel Views
2014
THIMPHU, BHUTAN
Hotel Performance
Outlook
51
bali, indonesia
52
Hotel Views
2014
BALI, INDONESIA
Economy
GDP growth is projected to have reached 6.0-6.2% during 2Q
2013. For the full year, growth is forecast to be within the range
of 6.3-6.8%. The stock market index decreased 6.4% during the
second three months of the year, with the composite index
closing at 4,515 on June 21. On the currency side, the Rupiah
depreciated by 2.3% over the quarter to Rp.9,936 per USD1.00.
Meanwhile, the Bank of Indonesia (BI) took action to increase the
BI Rate to 6.0%, after maintaining the rate at 5.75% for the
previous five consecutive quarters. Inflation over the first five
months of 2013 reached 2.3%, higher than the 1.2% recorded in
the same period last year. This higher inflation was mainly
attributed to rising food prices.
INDONESIA GDP 2008 2012
Tourism arrivals
The total number of tourists who visited Bali in 2012 was 8.9 mn,
increasing at a rate of 6.2% over 2011. The domestic to
international tourist ratio was 68:32, against 67:33 in 2011. During
2012, over 6 mn domestic tourists visited Bali. The peak was
witnessed in December 2012 as compared to other years, across
all months with regard to domestic tourists. Close to 0.7 mn
domestic tourists visited during December 2012, with arrivals
increasing at a rate of 30% as compared to the previous year.
Generally, June to December are more favorable months as
compared to January to May, as far as domestic visitors are
concerned. In 2012, the total number of international tourist
arrivals in to Bali was 2.9 mn, having grown by 4.9% over 2011
and, nearly by 47% since 2008. For international tourists, Bali is
not a seasonal destination. For example, in 2012, total
international tourists consistently made up 8-9% of total visitors
with the exception of May when the figure was 7%. The average
length of stay in Bali is 3.2 days. Australia is the top source market
for foreign tourists to Bali, contributing about 28.5% to the total
number of international visitors in 2012. China follows in the
second position with a share of 10.8%. Japan is in the third
position, but is likely to fall behind Malaysia in the near future,
with their respective contributions being 6.6% and 6.2%
respectively.
Hotel supply
According to Badan Pusat Statistik Indonesia, by the end of 2012,
Bali had 24,215 hotel rooms. These rooms are spread over 218
classified hotels. The classified inventory increased by 6% over
2011. Bali has about 1,696 non-classified hotels with about 24,322
keys. In 2012, approximately 1,400 keys entered the market. A few
of the key openings were Sheraton Bali Kuta Resort (203 keys),
Swiss-Belhotel Rainforest (161 Keys), Pop! Hotel Kuta (223 Keys),
Fave hotel ByPass Kuta (160 Keys), and Ibis Styles Kuta Circle
(191 Keys). The pipeline surge can be partly attributed to the
growth of the MICE market with more international conferences
being organized in Bali, such as the ASEAN19 summit, the APEC20
summit and Miss World contest of 2013, to name a few. As per
recent estimates, about 11,200 more keys are likely to enter the
market in the coming five years. Of these, 6,600 keys are in the
pipeline for 2013 itself. Of the upcoming supply in 2013, about
34% belong to the midscale segment, followed by 31% in the
upper upscale segment, 13% in the luxury segment, 11% in the
upscale and 10% in the budget segment. However, overall, 31% of
the total upcoming supply in five years belongs to the midscale
segment, followed by 25% in the upper upscale segment, with 22%
in the luxury segment, 14% in the upscale and 9% in the budget
segment. Brands such as Ritz-Carlton, Ramada, Best Western,
Sofitel, Shangri-La, Regent, Mvenpick, Renaissance and Jumeirah
have hotels in the pipeline.
19
20
53
BALI, INDONESIA
Hotel Performance
Outlook
Over the past five years, Balis hotels have witnessed a continuous
increase in ADR. In 2012, ADR remained stable at USD150 over
2011. AOR, however, declined by 3 percentage points to 69% over
the same period, resulting in a RevPAR decreased by 5% to
USD104. Bali is a popular leisure destination, a market largely
driven by demand from global holiday-makers, but also attracts a
good share of the MICE business. The large addition to its hotel
inventory is one of the reasons driving down AORs, albeit ADR
continues to rise.
54
Hotel Views
2014
55
Economy
Kuala Lumpur (KL) is the federal capital and most populous city in
Malaysia. The city covers an area of 243 square kilometers and
has an estimated population of 1.7 mn as of 2012. The city was
ranked 49th by the A. T. Kearney Global Cities Index 2012 and
66th among global cities for economic and social innovation in the
2012-2013 thinknow Innovation Cities Index. Under the efforts
of the Economic Transformation Programme (ETP) implemented
by the Malaysian government, Kuala Lumpur has been ranked 4th
in CNN Travels Survey on the top 10 best shopping cities in the
world in 2012, and the second best shopping destination in Asia
Pacific by Globe Shopper Index. In relation to the MICE sector,
Kuala Lumpur has been selected to host the 127th International
Olympic Committee event in 2015 and is expected to receive
approximately 1,500 international delegates. The per capita GDP
of Malaysia, in real terms, reached USD6,765 in 2012, an increase
of 3.9% over 2011, on the back of a 5.6% rise in GDP.
Hotel supply
Tourism arrivals
Arrivals to Malaysia went up by 1.3% to a total of 25.0 mn arrivals,
compared to 24.7 mn arrivals in 2011. The growth is expected to
continue to increase throughout the remainder of 2013, based
largely on the strength of the economies of various countries
within the Asia Pacific region. Singapore was the biggest
contributor to Malaysias tourist arrivals, followed by Indonesia,
China and Thailand. Inbound travel will should be boosted by the
burgeoning middle classes in emerging economies, particularly in
China and India. By 2017, the inbound arrivals in the country are
expected to reach over 32 mn per year. In 2012, the arrivals ratio
at Kuala Lumpur International Airport (KLIA) was 69.6% foreign
arrivals to 30.4% domestic. The seasonality of visitor arrivals can
be broadly classified as high season, which occurs between
December to January and June to August; low season between
February to March and September to October; and shoulder
season between April to May and in the month of November. The
tourism sector contributes significantly to the capitals economy,
providing income, employment and business opportunities.
Furthermore, business tourism is on the rise, as conferences and
conventions have become an important source of the income in
the industry. Tourism numbers are expected to stay positive, as
Malaysia is still more affordable than most other options in the
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Hotel Views
2014
Hotel Performance
OUTLOOK
Kuala Lumpur has some of the lowest hotel room rates when
compared to other markets in the region, like Hong Kong and
Singapore. The opening of new upscale hotels in the city is not
expected to impact the AOR for Kuala Lumpur hotel market in
2013. The overall AOR for 1H for Kuala Lumpur went up
marginally to 70% in 2013 from 69% in 2012. This is in tandem
with the increase in international and domestic tourists. The AOR
of upper upscale hotels in Kuala Lumpur for 1H 2013 was 77% as
compared to 75% in the same period in 2012. The upscale hotels
recorded an AOR of 72%, up from 70% in 1H 2012. The midscale
hotels managed an AOR of 70% in 1H 2013 as compared to 69%
in the same period in 2012. Overall, ADR of midscale to upper
upscale in Kuala Lumpur improved in 1H 2013 when it was
recorded at USD53, USD78 and USD122 for midscale, upscale
and upper upscale hotels respectively as compared to USD50,
USD72 and USD114 a year ago. As for budget hotels, AOR
recorded a marginal rise from 60% in 1H 2012 to 62% in 1H
2013. ADR for this segment has largely remained unchanged from
last year at USD30-35. The AOR of serviced apartments in Kuala
Lumpur was 74% in 1H 2013, up from 71% a year ago. ADR stood
at USD87 in 1H 2013 compared to USD85 in the same period in
2012.
57
male, maldives
58
Hotel Views
2014
MALE, MALDIVES
Economy21
The Maldivian economy is powered mainly by tourism and its
multiplier effect in the transportation, communication, and
construction sectors, which accounts for 28% of the GDP. Over
90% of tax revenues come from import duties and tourismrelated taxes. While income disparity remains high and limitations
on resources constrain expansion, the Maldives has yielded
considerable social progress. Between 2000 and 2010, real GDP
growth averaged around 6% per annum. The tourist destination
has recently been affected by a political coup, which ousted the
islands first elected president and led to political unrest. Of the
Maldives 1,191 islands, only 200 are inhabited, with the greatest
concentration on the capital island, Mal and another 100 islands
house resorts. With its pristine beaches and exquisite ecosystem,
the archipelago is portrayed as a tropical paradise, with island
resorts developed for the top-end of the tourist market.
MALDIVES GDP 2008 2012
Tourism Arrivals
Mal is the only entry point to the country of Maldives and the
center of all administration and bureaucracy. Maldivian, the airline
of the Maldives, has its head office in Mal and the city also
houses the head office for the airline FlyMe, which commenced
operations in 2011. Over the past five years (2008-2012), tourist
arrivals to the Maldives increased at a CAGR of 8.8%. After two
years of exceptionally strong positive growth in 2010 (+20.7%)
and 2011 (+17.6%), the Maldives kicked off 2012 with high
expectations to achieve a target of 1 mn tourists during the year.
However, due to a sudden change in government administration in
February and subsequent political unrest within the country, 2012
ended with tough results in terms of tourist arrivals. Despite
arrivals falling short by roughly 42,000 tourists to reach the 1 mn
mark, figures released by the ministry show that overall arrivals
rose 2.9% from 931,333 in 2011 to 958,027 in 2012. Growth rates
were slow and below average for all months, except for the
month of January. Declines were registered during usually peak
months such as February (-4.7%), March (-5.3%), April (-0.8%), May
(-1.4%) and November (-3.7%). The positive growth for the year
accounts for the outstanding performance during the month of
January (+21%). The Ministry of Tourism, Arts and Culture has
devised the Fourth Tourism Master Plan for the period of
21
59
MALE, MALDIVES
HOTEL SUPPLY
The supply of hotel inventory has increased at a steady rate over
the last five years between 2008 and 2012, at a CAGR of 4.8%.
While the number of establishments increased from 274 in 2008
to 352 at the end of 2012, bed capacity of these establishments
increased by 19.8%. At the end of 2012, there were a total of
28,120 beds registered in the Maldives. This inventory is spread
across hotels, marinas, guesthouses, resorts, and safari boats. At
the end of 2012, there were 105 islands developed into resorts
with a total bed capacity of 22,889 registered with the Ministry of
Tourism Arts and Culture, which was 81% of the total bed
capacity of the country in 2012. In 2012, four new islands with a
combined bed capacity of 651 were developed and made available
to the market. These include Vagaru island (Viceroy Maldives) in
Shaviyani Atoll with 97 beds, Mudhdhoo island (Dusit Thani
Maldives) in Baa Atoll with 200 beds, Olhuveli and Embudhufushi
islands as one resort (Niyama) in Dhaalu Atoll with 154 beds, and
Falhumafushi island (The Residence Maldives) in Gaafu Alifu Atoll
with 200 beds. Out of the 19 hotels registered with the Ministry
of Tourism, Arts and Culture, 15 are located in the capital city of
Mal, on Kaafu Atoll, which has the largest concentration of
accommodation supply in the Maldives (39.9% of the total bed
capacity in 2012). The percentage, however, has been dipping over
the last few years with other atolls being developed. After Kaafu
Atoll, Alifu Dhaalu Atoll (South Ari Atoll) with 3,818 beds in 2012
has the second highest supply, followed by Alifu Alifu Atoll (North
Ari Atoll) in third place with 1,988 beds. The Maldives has a total
of over 4,000 beds sanctioned or under construction, of which
3,347 keys are proposed to be functional by 2016. The remainder
of 2013 is expected to see 300 new keys in three different
projects being added to the current supply.
Hotel Performance
Mal, being the epicenter of activity in Maldives, happens to be the
most densely populated island in the country and also has the
highest concentration of resorts and hotels in the country. The
Maldives, with its unique one-island-one-resort concept, is one of
the worlds leading island destinations for tourism. Mal maintains
the highest ADR in the region, being a high-end luxury tourist
destination. The market recorded an AOR of 83.2% in 1H 2013 as
compared to 82.4% during the corresponding period in 2012.
ADR was USD751 in 1H 2013 as compared to USD670 in the
same period in 2012. The Maldives reported a double-digit growth
in RevPAR (13.2%) and ADR (12.1%) in 1H 2013. Being
predominantly a leisure/holiday destination, Mal notices a
relatively high average length of stay, which has seen a marginal dip
from 7.2 days in 2012 to 6.6 days in the current year.
60
Outlook
Despite reports of political instability that led to decreases in
occupancy in last quarter of 2012, hoteliers in the Maldives
managed to achieve an increase in ADR, which indicates the
countrys potential. The economy of the Maldives is forecast to
recover modestly, growing by 4.3% in 2013 and 5.5% in 2014, as
the anticipated gradual global economic recovery boosts tourism.
Higher spending ahead of the 2013 national elections is expected
to add a fillip to growth. In 2014, the new government is likely to
initiate the implementation of its intermediate macroeconomic
policy which, as a result, may improve local investments in the
tourism sector. Rising extremism in the region remains a concern
for the tourism industry in Mal, which has affected the market in
recent years. Southern Maldives is currently being targeted to
pave the growth of future tourism in the country. Inflation will
likely ease to 9.3% by the end of 2013 and subsequently to 8.5%
in 2014, thanks to base effects and the improved availability of
foreign exchange. The modest pick-up in tourism may improve the
current account balance to some extent, but the deficit is
expected to remain wide, even deteriorating slightly to 27.8% of
the GDP in 2013 before improving to 22.0% in 2014.
Hotel Views
2014
YANGON, MYANMAR
61
YANGON, MYANMAR
Economy
In the past two years, the government of Myanmar has enacted
sweeping changes, including ending the house arrest of the
democracy activist Daw Aung San Suu Kyi, allowing elections that
put her into Parliament and liberalizing its economy, as a result.
With longstanding economic sanctions eased, investors are
flocking to the Indochina economy, lured by expectations of
explosive growth in untapped sectors. Companies like Unilever
and Coca-Cola are opening plants in the kingdom and economic
growth is expected to average over 6% in the next five years as
the economy modernizes and its population urbanizes.Yangon, the
erstwhile capital of the nation, is a storied city where the
legendary Strand Hotel still stands. It is the countrys main
commercial hub, with a population estimated to be close to 5 mn.
The importance of tourism to the national economy is likely to
grow dramatically and Yangon is the logical gateway for tourists to
the country.
Hotel supply
Tourism arrivals
Myanmars tourist arrivals are expected to grow by 30% in 2013
to 1.3 mn, and rise to 2 mn by 2015. Tourism has become one of
Myanmars biggest industries. The country, which until 2011 was
largely off-limits to most, welcomed 1.1 mn tourists last year. With
the governments plan to spend USD500 mn to build
infrastructure and accommodation for the tourism industry, the
total number of visitors could increase to 7.5 mn by 2020. With
its natural beauty and its wealth of Buddhist monuments and
pagodas, Myanmar might eventually see as many visitors as
Thailand, which is currently getting about 21 mn a year. According
to the Ministry of Hotels and Tourism, the number of
international arrivals in Yangon totaled approximately 560,000 in
2012, a sharp increase of 53% YOY, and it is expected that this
number will rise by 60% YOY in 2013, reaching 900,000. From
2003 to 2011, international visitor arrivals grew by 12.8% but
growth has been much stronger over the past four years. Post the
relative downtrend in 2007 and 2008, international visitor arrivals
have shown tremendous growth in Yangon, recording growth
rates of 26.8%, 22.7% and 53.4% in 2010, 2011 and 2012,
respectively. Although the growth looks promising, the actual
62
Hotel Views
2014
YANGON, MYANMAR
Hotel Performance
OUTLOOK
22
63
kathmandu, nepal
64
Hotel Views
2014
KATHMANDU, NEPAL
Economy23
After slowing down from 4.5% in FY2011-12 to 3.8% in FY201213, economic growth in Nepal is expected to moderate further to
3.5% during this year due to continued energy crisis, shortfall in
agriculture output and reducing investments. However, the
outlook for 2014 remains positive at 4.04.3%, given a rise in
agricultural output and foreign remittances, in addition to growing
investments in public domain.Visitor arrivals are rising steadily
and reached 600,000 in 2012. The growth is expected to remain
flat to moderate this year, but the upside potential remains
relatively stable, indicating a quick rebound in excess of 10%
annual growth rate recorded in the recent past (2010-12). Private
sector investment in hotels and the promotion of sustainable
tourism is likely to push the numbers upward over the next two
to three years. The National Planning Commission has already
prioritized infrastructure development, conservation of national
heritage sites and promotion of home-stay and village tourism to
increase the number of foreign arrivals.
NEPAL GDP 2008 2012
Tourism Arrivals24
Tourist arrivals via air and land reached a record high of over 0.8
mn in 2012, up by 9% YOY. Out of these, 74% arrivals are by air
and 26% are by land. Kathmandu has the only operational
international airport of Nepal, Tribhuvan International Airport.
India, China, Sri Lanka, the US and the UK are the top five source
markets for tourists into Nepal. India alone contributes to 20.6%
of the total tourists, while China contributes about 9%. In 2012,
January, October and November were the peak months of tourist
arrivals, while July and August were the lean months. The average
length of stay in Nepal is about 12.9 days. Kathmandu serves as
the base for most travelers while they travel to other popular
destinations such as Pokhra, Lumbini, Bagmati and Rapti.
Therefore, a typical stay in Katmandu is usually three to four days.
HOTEL SUPPLY
According to the Ministry of Culture, Tourism and Civil Aviation,
Kathmandu had over 11,000 keys across various star categories in
2012. Out of these, only 822 keys are branded ones. Kathmandu
has a total of about 522 hotels. According to the government data,
the five-star hotels comprise 2% of the total, but contribute 14%
of the total keys inventory, with three-star hotels (2.9%)
contributing about 5% to the total. Similarly, four-star hotels
(0.4%) contribute 2% to the total number of rooms, with two-star
(5.6%) category contributing 11%. The one-star hotels comprise
5% of hotels, contributing 5% of the total inventory. The economy
hotels (84.7%) lead in inventory with 63% contribution. Segmentwise, currently Kathmandu has no luxury hotels. Out of the total
keys, 5% fall in upper upscale category, 6% each in midscale and
upscale category and the rest in the budget category. There was
no fresh addition of new hotels in Kathmandu in the star-rated
categories in 2012. However, few of the four- and five-star hotels
underwent partial renovation. Also, citing the growing popularity
of the destination, a few new hotel projects have been announced
in Kathmandu. A Fairfield by Marriott is one of the announced
projects that are set to open in a couple of years. A Sheraton
hotel is also in the pipeline, which is likely to open by 2018 with
225 rooms. The Civil Aviation Authority of Nepal has proposed
building a five-star airport hotel under the BOOT (Build-OperateOwn-Transfer) model.
23
24
65
KATHMANDU, NEPAL
Hotel Performance
Outlook25
The annual target of tourists has been set at 1.2 mn for FY201314, about 50% higher than that achieved in FY2012-13. The
government is looking forward to increasing the contribution of
tourism to the countrys GDP to 3%, from the current 2%. The
long-term plan is to attract 2 mn foreign tourists per year by
2020. However, in contrast to the target set for arrivals, the air
arrivals at Tribhuvan International Airport have declined by 3.9%
in 1H 2013 over the same period of 2012. Although, the peak
season has yet to come this year, achieving the target will be a
major task. Strong promotion and marketing policies are required,
along with low-cost carriers especially from the top two feeder
markets of India and China. Special emphasis is being put on the
development of the tourism sector. In mid-2012, the Nepal
cabinet approved a high level committees report on the
development of the tourism sector as an industry of national
priority. Thus, the government and the private sector are set to
implement various plans and programs. FDI in tourism in
FY2012-13 has become four times of that in the previous year.
This sector is the third highest recipient of FDI after the services
and manufacturing sectors. Also, Nepal has teamed up with India
to boost its share of Religious Tourism, wherein Lumbini will be
part of two, out of three in total, identified Buddhist Circuits to
be developed. This would also increase footfalls to Nepal,
benefitting Kathmandu partially as a transit location for such visits.
25
Figures provided are with respect to the Financial Year Calendar
(16 July to 15 July)
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Hotel Views
2014
MANILA, PHILIPPINES
67
MANILA, PHILIPPINES
Economy
The Philippines economy continues to surge under the Aquino
administration. After posting a GDP growth rate of 6.8% in 4Q12,
the country surpassed that level in 1Q13, as it grew by 7.8%
during the period. The growth was spurred by aggressive
government spending, improving business confidence and high
consumer expenditure. Moreover, the business process and
outsourcing (BPO) sector continued to support the economy, as
BPO firms continue to expand and strengthen their presence in
the country. Manufacturing, construction, financial intermediation
and trade also provided a boost to the economic growth. In 1H
2013, inflation for the Philippines averaged at 2.9%, lower than the
3.0% in the same period last year. It is still lower than the 3.2%
inflation rate for the whole 2012. The reason for the deceleration
was primarily due to the slower price increase of non-food items
such as petroleum products and electricity. Food items also
posted a lower price increase during the period. Unemployment
rose during 1Q13, climbing to 7.5%. This translates to an
estimated 3 mn unemployed Filipino workers. Moreover,
remittances during the first half of 2013 amounted to USD10.6
bn, exhibiting a 5.6% increase from the same period last year. The
countrys economic outlook remains bright, with the support of
recent investment upgrades by several international ratings
agencies, and the continued growth of the manufacturing,
construction and the BPO industries. Backed by the strong
economic growth of the country, Metro Manilas GDP at current
prices reached Php3,830 bn (USD90.7 bn) in 2012, registering a
YOY growth of 10.7%. The 2012 GDP growth for Manila was 3.4
percentage points higher than the growth registered in 2011.
Tourism arrivals
In order to further promote the development of the tourism
industry, the Department of Tourism (DOT) launched a widely
publicized tourism marketing campaign named Its More Fun in
the Philippines in 2012, which helped the countrys ranking to
rise 12 notches to 82nd place, out of 140 countries in the World
Economic Forum (WEF) 2013 Travel and Tourism
Competitiveness Index. DOT figures show that visitor arrivals
grew from 2.8 mn in 2009 to 4.2 mn in 2012, posting a CAGR of
13% over the past four years. With regard to tourism arrivals in
Manila, according to the latest available figures from the DOT, the
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Hotel Views
2014
MANILA, PHILIPPINES
Hotel supply
According to DOT, Philippines featured 6,873 hotel
establishments, providing a total of 162,403 rooms as at the end
of June 2012. Among that, there were 320 hotels distributed in the
Metro Manila area, with an offering of 31,790 rooms, accounting
for 4.6% and 19.6% of the total number of hotel establishments
and rooms, respectively. The Philippines strong growth potential
of tourist arrivals has strengthened developers determination and
confidence to venture into hospitality-related projects all over
the country. The country has 212 hotels under construction as
at the end of June 2012, that is, 15,030 hotel rooms being added
to the existing inventory. In Metro Manila alone, there were 21
new hotel developments, ranging from budget to deluxe under
construction, with approximately 7,200 rooms. Many of these new
developments will be gaming-oriented as parts of the planned
Entertainment City project in Paraaque, which is envisioned to
become a key gaming center in Asia and to attract 1 mn tourist
arrivals annually. In addition, international hotel operators are and
will be speeding up the hotel brands expansion in the country.
Aside from the recently opened Raffles and Fairmont hotels,
Mvenpick is stepping up its ambitious global expansion with the
signing of a new property in Makati City. Accor is strengthening
its presence with the addition of two new properties, namely
the Mercure Manila Ortigas and Novotel Manila Araneta. Other
notable new additions over next five years include the Belle
Grande Casino and Resort Manila in 2013, Shangri-La at The Fort
in 2014, the expansion of the Manila Marriott Hotel, the Grand
Hyatt Manila in 2015, the Westin Manila Bayshore in 2016 and the
Sheraton Manila in 2017. New openings are mainly clustered in
up-and-coming commercial districts, namely Resorts World and
Pagcor Entertainment City (in Pasay City, near Manila Bay) and
Bonifacio Global City, located near the Makati Area.
Hotel Performance
According to the figures from DOT, the average occupancy levels
for Metro Manila hotels started to decline in 2012, assessing at
67.3% (down by 2.0 percentage points YOY). In terms of
occupancy levels by market segments, the highest level was
achieved by the deluxe segment (defined as four to five-star
hotels), which stood at 72% in 2012, showing a minor decline of
0.8 percentage point over the previous year. Occupancy levels for
standard and first-class hotels (defined as three-star hotels) were
64% and 58% in 2012, down by 2.9 percentage points and 3.0
percentage points respectively from the 2011 levels. Economy
hotels recorded the lowest occupancy level of 55% and
experienced a sharp decline of 4.6 percentage points compared
to the level in 2011. There is no official data in terms of ADR for
Metro Manila. However, it can be said that the market has three
main commercial areas, hence three diversified rate levels: namely
Manila Bay, Ortigas and Makati. The Makati hotel market
continued to be the best performing market, rate-wise.
OUTLOOK
Figures from the Philippines National Statistical Coordination
Board (NSCB) indicated that the country welcomed a total of 4.3
mn tourist arrivals in 2012. Although the figure exceeded the 4
mn mark, it is still below the governments targeted goal of 4.5 mn
arrivals. However, the NSCB expects that the country will
continue to attract increasing numbers of international tourists,
relying on its natural beauty, hospitality as well as the
improvement of some of the countrys main issues, such as traffic
congestion, poor and dirty environment, lack of tourism facilities
and infrastructure. It is estimated that the country will be able to
attract over 10 mn foreign tourists by 2016. The hotel market is
expected to benefit from the steady development of the countrys
tourism industry and to maintain solid occupancy level,
considering the continued positive growth of tourist arrivals as
well as the development of large-scale tourism projects such as
Entertainment City in Paraaque. These elements should induce
significant demand to the hotel market. In relation to supply, the
entry of more internationally branded hotels will not only
alleviate the countrys issue of lacking quality accommodation
facilities, especially in the high-end segment, but also help promote
the overall quality and environment of the hotel market, attracting
increasing numbers of visitation to the Philippines.
69
macau, sar
70
Hotel Views
2014
MACAU, SAR
Economy
The handover of the Portuguese territory back into Chinese
hands in 1999 ended the casino monopoly of Stanley Ho and
since then, roughly three dozen large and small casinos have been
built. Billion-dollar investments from the likes of Sands and Wynn
Resorts have transformed Macau into the worlds premier casino
market. Casino revenues in Macau climbed 13.5% last year to a
record USD38 bn, dwarfing the combined earnings of second- and
third-placed Las Vegas and Singapores of USD12.1 bn. Primarily
built upon Chinese tourism, Mainland Chinese have been flooding
into Macau, the only place in China where gambling is permitted.
Economic growth averaged 14.1% in the last ten years and per
capita income makes the Macanese one of the worlds highest.
New hotel-casino projects are fueling expectations that the
market could hit between USD61 and USD76 bn in annual gaming
revenues by 2017. Much of the development centers on the Cotai
Strip, with projects portioned out over the next three years. Plans
are evolving however, as the gambling mecca is likely to spend
some effort to derive more earnings beyond gaming and to
expand its tourism base.
Tourism Arrivals
Macaus economy is based on four main pillar industries: gaming
and tourism, export processing, finance and insurance, as well as
construction and real estate, among which the gaming and
tourism sector, dominated by the gambling industry, has played a
vital role in the local economy. Figures from the Macau Statistics
and Census Services (MSCS) showed that overseas visitor arrivals
to Macau experienced rapid growth over the past four years,
growing at a CAGR of 8.9%, from 21.8 mn in 2009 to 28.1 mn in
2012. In the first half of 2013, Macau received a total of 14.1 mn
visitor arrivals, representing an increase of 4.2% YOY. As the key
driver of the local tourism market, visitor arrivals from Mainland
China reached 8.9 million, posting a 9.8% YOY growth and
accounting for 63% of total visitor arrivals. Among the other top
five source markets, visitors from Hong Kong and Taiwan declined
by 3.3% and 8.6% to 3.3 mn and 0.5 mn, respectively. The Korea
market grew by 5.3% YOY to 0.2 mn, ranking in fourth place in 1H
2013. Given the prevailing political tensions with China, visitor
arrivals from Japan experienced a sharp decline of 32.8% YOY to
0.1 mn, falling out of the top five markets. The Philippines market,
71
MACAU, SAR
HOTEL SUPPLY
Figures from MSCS indicate that Macau featured 99 hotel
establishments, providing 28,082 hotel rooms as at the end of
June 2013. Although the number of hotels remained unchanged
compared to the same period in 2012, the number of rooms grew
by 15.7% YOY. This is a reflection of the fact that most of newly
opened hotels are large-scale developments. One such example is
the newly opened Sands Cotai Center, which has had three
international branded hotels opening for business successively in
the period of 2012-2013, offering a total of approximately 5,800
hotel rooms. The overall positive hotel performance as well as the
strong demand potential continues to attract development and
expansion interests from developers and hotel operators.
Rosewood Hotel Group is planning to run a hotel under its
Pentahotel brand in Macau, a new destination target for the group.
Versaces first hotel venture in Asia will be the opening of Palazzo
Versace on the Cotai Strip in 2017, in partnership with SJM
Holdings. This hotel will be the third one that Versace opens
globally, following the original Palazzo on Australias Gold Coast
and the recently announced property in Dubai that is currently
under construction. MGM China Holdings got approval to
develop a new gaming resort on Cotai, which will include
approximately 1,600 hotel rooms, 500 gaming tables and 2,500
slots. Other notable new additions to the market include a
439-room St. Regis Hotel and a 250-room Jumeirah in the second
half of 2013, a 1,100-room JW Marriott Hotel, a 250-room
Ritz-Carlton Hotel in 2015, and a 1,700-room Wynn Hotel in
2016.
Hotel Performance
Supported by strong accommodation demand, which is largely
dependent on the growth of gaming-related tourism, Macaus
hotel market achieved robust growth in ADR and a relatively high
level of occupancy. Room rates for all type of hotels to
MOP$1,423 (USD175) in 2012, representing a YOY growth of
5.9%. AOR for all types of hotels declined by 1 percentage point
to 83%, compared to the same period in 2011. According to the
preliminary 2013 half year figures retrieved from the Macau Hotel
Association, three to five-star hotels achieved positive growth in
ADR, up by 1.4% to MOP$1,436 (USD176), compared to the
corresponding period in 2012. Market-wide occupancy stood at
85.8%, with a slight downward adjustment over the same period
in the previous year. Driven by the increase of both ADR and
occupancy rate, RevPAR for all types of hotels reached
MOP$1,232 (USD151) in 1H13, posting a growth of 2.0% on a
YOY basis. In terms of market performance by segment, room
rates posted positive growth in all hotel segments. Except for the
five-star hotel segment, which remained fairly stable, both three
and four-star hotels recorded growth, increasing by 4.4% and 5.1%
to MOP$904 (USD111) and MOP$1,096 (USD134), respectively.
Five-star room rates stood at MOP$1,687(USD206) in the YTD
June 2013, growing only by 0.2% over the corresponding period in
2012.
72
Outlook
Backed by its convenient location (within three-hour flight to
Mainland China and many Asian countries), the unique cultural
and historical background as well as abundant entertainment
facilities, Macaus tourism industry is expected to continue to
flourish in the future. With the opening of the individual visit
scheme to Macau for residents of 49 cities in Mainland China and
the moderate extension of gaming licenses, Macaus economy is
moving from a heavy reliance on the gaming industry to a more
comprehensive growth pattern built on the continuous
development of non-gaming industries such as convention and
exhibition, retail and catering, entertainment, etc. The market is
expected to continue to see the development of large-scale hotel
schemes, which might exert some downward pressure on market
performance in the short-term. However, the further completion
and improvement of entertainment, MICE and commercial
facilities is anticipated to become a strong demand driver and to
boost visitation to Macau. We expect that market performance
for the overall hotel market will continue to remain positive with
strong ADR and high occupancy levels being forecast in the
long-term.
Hotel Views
2014
PHUKET, THAILAND
73
PHUKET, THAILAND
Economy26
According to the National Economic and Social Development
Board (NESDB), the 2013 GDP growth has been revised
downward to 3.8-4.3% from the previous forecast range of
4.2-5.2%, as the Thai economy is slated for weaker-than-expected
economic conditions. This is particularly attributed to the slow
economic reforms by the government, the uncertain recovery of
the global economy and the continuous strengthening of the Thai
Baht. In April 2013, the Baht reached its 16-year strongest value
against the US dollar, leading to lower-than-anticipated growth of
exports, due to the negative impact of the European debt crisis
and quantitative easing in the US. Consequently, economic
management in the remaining quarters is expected to come into
effect. NESDB pointed out that weakening economic momentum
and ensuring the stability of the currency should be considered as
key priorities. With a GDP growth of 5.3% in 1Q 2013, the Thai
economy continued to expand, but at a slower pace than in 4Q
2012.
PHUKET GDP 2008 2011
Hotel supply
The total inventory, as of 1H 2013, is around 32,500 keys
(excluding the economy segment), out of which the upscale
segment comprises 21%, followed by upper midscale (14.5%),
upper upscale (12%) and luxury (10.5%). The existing inventory is
majorly distributed across the midscale hotels, accounting for 42%
of the total inventory. The total upcoming supply pipeline is 5,860
keys by 2016, with 42% of the proposed hotels belonging to the
midscale segment. About 25% of the upcoming supply is being fed
into the upscale segment, followed by luxury (12%), upper upscale
(10%), economy (7%), and upper midscale (4%). The recent
openings in the first half of 2013 have been Regent, Pullman,
Thanyapura Sports Hotel, Avista Hideaway Resort and Spa, Tune
Hotel, Holiday Inn Express and Patong Beach Central, to name a
few. Other hotels in the pipeline that are expected in the second
half of 2013 are Days Inn, COMO Hotel and Hyatt Regency.
Tourism arrivals
The increase in the number of direct flights has made travelling
convenient and Phuket International Airport exceeded its stated
capacity by 30% in 2011. Phuket received 2.4 mn international
tourists in 2012, up by 17% over the previous year. Total
international arrivals from 2008 to 2012 have grown at an 18%
CAGR. The largest number of international visitors came from
China (22%), Russia (15%), Australia (10%), South Korea (9%) and
Malaysia (4%). Domestic arrivals are estimated to have reached
2.2 mn in 2012, up by 7% over the previous year and the domestic
to foreign tourist ratio is 47:53. Phuket International Airport has
37 scheduled passenger airlines running with six newcomers in
2011, namely Aeroflot, Strategic Aviation, Air China, Hong Kong
Airlines, Mahan Air and Jet Airfly. The airport is running at a
capacity more than it is built to handle, although expansions work
are currently underway, which are estimated to be completed by
2015. Meanwhile, by end of 2013, a temporary terminal building
and aircraft bays are being constructed in order to facilitate and
prepare for the busier season in October and November.
26
74
Hotel Views
2014
PHUKET, THAILAND
Hotel Performance
OUTLOOK
75
hanoi, vietnam
76
Hotel Views
2014
HANOI, VIETNAM
Economy
According to the General Statistics Office of Vietnam, Hanoi
witnessed a GDP growth of 8.1% in 2012. Furthermore, the
overall economic growth of Hanoi in 1H 2013 has been higher
than that in the same period of 2012. Particularly, in 1H 2013,
GDP increased by 7.7% compared to the same period in 2012,
while CPI rose by 5.7% compared to the same period last year.
Total new registered and additional FDI in the first half of 2013
into the city reached around USD300 mn (104 projects). Hanois
economy, in 2013, is forecast to continue to face difficulties and
challenges more severe than that in 2012. However, the city has
called on authorities and sectors to exert more effort to keep the
economy of the capital on track. The citys GDP is expected to
see a growth of about 8-8.5% this year.
HANOI GDP 2008 2012
HOTEL SUPPLY
The total inventory present in Hanoi is over 7,600 keys; the city is
largely upscale, which comprises almost 31% of the total
inventory, followed by midscale with 24%, upper upscale with 19%,
luxury with 14%, and budget with 11%. Presently, a number of
brands are expected to venture into Hanoi. During the first half of
2013, Hilton Garden Inn opened in April with 86 rooms, thus
marking the brands debut into Vietnam. Additionally, luxury
brands such as Intercontinental Hanoi (3Q 2013), expected to be
South-east Asias tallest hotel building with 359 keys, and JW
Marriott (3Q 2013) with 450 keys, are expected to change
inventory segmentation substantially.
Tourism Arrivals
During 2012, the total number of tourism arrivals into Hanoi was
12.9 mn (down by 4.4% YOY), of which 85% accounted for
domestic whilst 15% accounted for international travelers.
However, in 1H 2013, Hanoi received 1.2 mn international arrivals
and 7.9 mn domestic tourists, showcasing a YOY increase of 15%
and 8%, respectively. Hanoi currently expects 15.5 mn tourists, of
which 2.25 mn are likely to be foreigners, as per the Municipal
Department of Culture, Sports and Tourisms latest estimates.
Vietnams top three feeder markets are China accounting for 21%
of total tourist arrivals, followed by South Korea with 10%, and
Japan with 8%. Noi Bai International Airport lies approximately 35
kilometers from the city center and is located in the Soc Son
District of Hanoi. The city is expected to host the 18th Asian
Games in 2019; as a result, the airport is expected to see a
second passenger terminal commence service in April 2015.
77
HANOI, VIETNAM
Hotel Performance
Outlook
78
Hotel Views
2014
TRANSACTION UPDATE
79
PROPERTY NAME
CITY/COUNTRY
BUYER
SELLER
Hotel Renaissance
Seoul/S. Korea
Sambu Construction
986.27
Macau/China
GEG
418.81
Urayasu/Japan
Mitsui Fudosan
276.83
Guangzhou/China
271.57
Singapore
Ascendas Hospitality
237.30
Hong Kong
Regal REIT
212.89
Hong Kong
Regal REIT
203.86
Park Regis
Singapore
Unknown
197.75
Peninsula Shanghai
Shanghai/China
Greenland Group
174.62
HCMC/Vietnam
VIPD Group
Vingroup
155.24
Source: RCA
* The exchange rate used is indicative of the prevailing rate at the time of the transaction
80
PRICE
(USD IN MN)*
Hotel Views
2014
CONCLUDING REMARKS
81
CONTACTS
Akshay Kulkarni
Sigrid Zialcita
Managing Director
Research, Asia Pacific
+(65) 6232 0875
Sigrid.Zialcita@ap.cushwake.com
Paola Orneli
Soo Jin
Associate Director,
Head of Hospitality, China,
+(86) 105921 0823
Paola.Orneli@ap.cushwake.com
Senior Manager
Advisory & Consulting, Seoul
+(82 2) 3708 8869
Soo.Jin@ap.cushwake.com
Juhie Tak
GERALD LIM
Manager
Hospitality Services, India
+(91) 124 4695 539
Juhie.Tak@ap.cushwake.com
Manager
Hospitality Services, South East Asia
+(65) 6232 0885
Gerald.Lim@ap.cushwake.com
CHInA
Address: 26/F The Headquarter Building
168 Xizang Zhong Lu
Shanghai, China 200001 PRC
Tel: 8621 2320 0808
JAPAn
Address: Sanno Park Tower 13F
2-11-1 nagatacho Chiyoda-ku,
Tokyo, Japan 100-6113
Tel: 813 3596 7070
SOuTH KOReA
Address: 5/F Korea Computer Building
21 Sogong-dong, Jung-gu
Seoul, South Korea 100-070
Tel: 822 3188 322
HOnG KOnG
Address: 9th Floor, St Georges Building
2 Ice House Street, Central
Hong Kong
Tel: 852 2956 3888
MALAYSIA
Address: Lot 3A-1, Level 4, Wisma W1M
7 Jalan Abang Haji Openg
Taman Tun Dr Ismail
Kuala Lumpur, Malaysia 60000
Tel: 603 7728 8116
TAIWAn
Address: Room
38/F
RePro A,
International
Inc.
Taipei
13F-2, 101
no.Tower,
89, SongRen Road
7exchange
Xinyi Road
Sec.One
5,
Square
Taipei, Taiwan 11049
Tel: 886 2 8101
2758 5115
6000
PHILIPPIneS
Address: 18/F Philamlife Tower
8767 Paseo de Roxas
Makati City Metro Manila
Philipines
Phillipines1226
1226
Tel: 63 2 830 8488
THAILAnD
Address: 31st FI., Bangkok Insurance
Building / Y.W.C.A.
25 South Sathorn Road,
Thungmahamek, Sathorn
Bangkok 10120, Thailand
Tel: 662 286 8899
InDIA
Address: 14th Floor, Tower C, Building 8
DLF Cyber City
Gurgaon, India Haryana-122002
Tel: 91 124 4695555
InDOneSIA
Address: Jakarta Stock exchange Building
Tower 2, 15th Floor
Jl. Jend. Sudirman Kav. 52-53,
Jakarta 12190
Tel: 62 21 2550 9500
82
SInGAPORe
Address: 3 Church Street
#09-03 Samsung Hub,
Singapore 049483
Tel: 65 6535 3232
VIeTnAM
Address: Room 602, Asia Tower,
6 nha Tho street, Hoan Kiem district,
Hanoi,Vietnam
Tel: 84 4 3938 1786
Hotel Views
2014
Photo creditS
1.
15.
DHAKA, BANGLADESH
The Westin Dhaka
Pages 46 & 48: Starwood Hotels & Resorts, Inc.
2.
BEIJING, CHINA
Tangram Hotel Xinyuan Li
Pages 8 & 9: Tangram Hotels Group AG
16.
3.
SHANGHAI, CHINA
W Shanghai The Bund
Page 11: Starwood Hotels & Resorts, Inc.
Page 13: http://www.skyscrapercity.com/showthread.php?p=87419858
THIMPHU, BHUTAN
Taj Tashi Thimphu
Page 49: The Indian Hotels Company Limited
Uma by COMO Paro, Bhutan
Pages 50 & 51: COMO Hotels www.comohotels.com
17.
BALI, INDONESIA
The Samaya Ubud Bali
Pages 52, 53 & 54: The Samaya Villas Bali, Ubud Bali
18.
19.
MALE, MALDIVES
Gili Lankanfushi
Pages 58, 59 & 60: HPL Hotels & Resorts Pte. Ltd. 2013
20.
YANGON, MYANMAR
Summit Parkview Hotel
Page 61: http://www.pandaw.com
Page 63: iStock Photos
21.
KATHMANDU, NEPAL
Radisson Hotel Kathmandu
Pages 64 & 66: Carlson Rezidor Hotel Group
22.
MANILA, PHILIPPINES
The Peninsula Manila
Pages 67 & 68: The Hongkong & Shanghai Hotels, Limited
23.
MACAU, SAR
MGM Macau
Page 70: http://upload.wikimedia.org/wikipedia/commons/c/ce/MGM_Grand_Macau_edit1.
jpg
Pages 71 & 72: MGM Hospitality
24.
PHUKET, THAIL & Sofitel Krabi Phokeethra Golf & Spa Resort
Page 73: Accor http://www.sofitel.com/gb/hotel-6184-sofitel-krabi-phokeethra-golf-and-sparesort/index.shtml
Trisara Hotel, Phuket
Page 74: http://www.wallsforpc.com/wp-content/uploads/2013/05/TrisaraHotelPhuketThailand.jpg
Hotel Phuket
Page 75: http://www.asia-trip.info/wp-content/uploads/2012/11/Hotel-Phuket-Thailand.jpg
25.
HANOI,VIETNAM
Hotel De LOpera Hanoi | A MGallery Collection
Pages 76, 77 & 78: Accor
http://www.mgallery.com/gb/hotel-7832-hotel-de-l-opera-hanoi-mgallery-collection/index.
shtml
26.
TRANSACTION UPDATE
Renaissance Seoul Hotel
Page 80: Baron Reznik http://www.flickr.com/photos/baronreznik/4418052932/sizes/o/
27.
CONCLUDING REMARKS
PARKROYAL on Pickering, a PARKROYAL Collection Hotel
Page 81: Patrick Bingham-Hall
4.
TOKYO, JAPAN
Palace Hotel Tokyo
Page 14: http://commons.wikimedia.org/wiki/File:Palace-Hotel-Tokyo-03.jpg
Tokyo Station Hotel
Pages 15 & 16: Tokyo Station Hotel, JR Hotel Group
5.
MUMBAI, INDIA
Sofitel Mumbai BKC
Pages 17, 18 & 19: Accor http://www.sofitel.com/gb/hotel-6451-sofitel-mumbai-bkc/index.
shtml
6.
NCR, INDIA
Vivanta by Taj - Gurgaon NCR, New Delhi
Pages 20 & 21 The Indian Hotels Company Limited
7.
JAKARTA, INDONESIA
The Westin Jakarta
Page 23: Starwood Hotels & Resorts, Inc.
Page 24: Poole Associates Private Limited http://www.poole-associates.com/Westin-Jakarta.
htm
8.
9.
SINGAPORE
PARKROYAL on Pickering, a PARKROYAL Collection Hotel
Pages 29, 30 & 31: Patrick Bingham-Hall
10.
11.
12.
BANGKOK, THAILAND
W Bangkok
Pages 38, 39 & 40: Starwood Hotels & Resorts, Inc
13.
HCMC,VIETNAM
Novotel Saigon Centre
Pages 41 & 43: Accor http://www.novotel-saigon-centre.com
Page 42: http://bk.asia-city.com/node?page=5
14.
REGIONAL HOTSPOTS
Taj Tashi Thimphu
Page 44: http://www.shafir.info/plain/bhutan~thimphu~taj_tashi_hotel_2.htm
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83
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