Hotel Destinations Asia Pacific - The Investor...A rebranding exercise is not something to be done...

Hotels & Hospitality Group | October 2016

Hotel Destinations Asia Pacific

Hotel Destinations Asia Pacific2

Is it time for a change?A carefully considered rebrand can help hotel owners make their property stand out in a crowded hospitality market.

3Hotel Destinations Asia Pacific

As global icons ranging from tech giants Apple to men’s grooming specialists Old Spice know, a reinvention can be a wonderful thing. It wasn’t all that long ago that Apple was pigeonholed as appealing to only artists and designers and Old Spice was saddled with a dated image that made it a subject of derision. After carefully repositioning in the market with new lines of product and a different way of presenting themselves, the two are now among the world’s most potent brands.Unlike companies in other fields, most hotel owners who opt to go through the rebranding process do so under the aegis of a different operator or management company. However, similar to other shining examples of successful reinvention, hotels too can benefit from a change of approach. There are myriad factors as to why a hotel owner in Asia might consider putting a property through a rebranding exercise, not least of which is the sheer competition in the market. In Singapore, for example, hotel investments are booming across the island. According to JLL estimates, that there will be approximately 70,000 hotel rooms in the country by the end of 2018 – a sharp rise from the circa 55,000 rooms at the end of 2013. “In an increasingly competitive and changing hotel market environment, branding, positioning and distribution are critical success factors for the success and profitability of the hotel,” comments Tasos Kousloglou, Executive Vice President, Asset Management Asia at JLL. In a packed market place it is no longer enough to rely on friendly pricing and customer loyalty. Nowadays it is vital for a hotel to find its target audience or niche, and to maximise its revenue potential from a variety of channels. It can do so by analysing the market and assessing whether its brand positioning is in line with the current demand drivers. If that’s not the case, then a rebrand is something worth considering.In Singapore, several examples of rebranding have taken place over recent years. Although some international branded hotels have swapped operators, the trend has mostly been for unbranded hotels to align with an internationally recognisable operator. Notable examples include the rebranding of the existing The South Beach hotel, Gallery Hotel, Riverview Hotel and Singapore

Resort and Spa Sentosa to, respectively, JW Marriott Hotel Singapore South Beach, InterContinental Singapore Robertson Quay, Four Points by Sheraton Singapore Riverview and Sofitel Singapore Sentosa Resort and Spa. According to Kousloglou, a number of other hotel owners around the region are looking to rebrand or reposition their properties. In his view, there is nothing surprising about the fact that so many owners seek to put some global gloss on their rebrand. “Well established brands often serve as a source of strategic advantage. Their ability to generate cash flows via relatively higher room rates and profit margins and their efficient and extensive distribution and sales network in key source markets make them highly desirable,” adds Kousloglou.One of the latest hotels in Singapore to take on an international guise is the InterContinental Robertson Quay, due to open in 2017. Housed in the former Gallery Hotel, InterContinental Robertson Quay aims to bring new life to the existing building by entirely transforming its interiors façade and adjacent outdoor spaces. The hotel will be the centerpiece of developer RB Capital’s Robertson Quay Project, a major reimagining of the riverside area as a lifestyle destination. “We decided on an international operator in order to tap into the global distribution systems and network of a global brand which we thought was important to achieve the highest financial efficiency of the property,” says Kishin RK, Chief Executive of RB Capital. “The owner would like to see the property post refurbishment to tap its maximum potential both from a financial and business point of view. The operator’s ideal outcome will be to have the rebranding as a launch pad for its brand in the sub market the property is located in.” Deciding to look for an international operator is a relatively straightforward move. What is more complicated is selecting the right brand and operator for a hotel. Choosing the right operator and negotiating a suitable hotel management agreement can have a significant long-term impact on the hotel’s financing, profitability and asset value. Therefore the selection process is not simply a question of picking a name out of a hat.

In 2016, South Beach Consortium Pte. Ltd. (a joint venture between Singapore-listed international real estate operating company City Developments Limited (CDL) and IOI Properties Group Berhad) signed a hotel management agreement with Marriott International for The South Beach hotel to be rebranded as Singapore’s first JW Marriott. “First and foremost you need to decide what exactly your expectations are from this asset and the selected operator as deliverables from different brands may vary,” comments Ananda R. Arawwawela, Executive Vice President, Hotel Assets Management of CDL. “Marriott International was picked based on a strict selection criteria.”While most rebrandings are undertaken smoothly, owners should be aware that finding international operators carries its own set of – often costly – requirements. Financially, a rebranding might require extensive changes in the current product and service offering and operation of the hotel. From a financial perspective, a decision also needs to be made well in advance as to whether the hotel will remain open during the rebranding. “Owners will need to evaluate carefully the benefits of the rebranding exercise against the overall cost. A strategically rebranded hotel can be repositioned with a higher Average Daily Rate (ADR), take advantage of additional revenue opportunities due to space and other efficiencies, and better respond to changing client needs,” concludes Kousloglou. “A new brand could also allow the hotel to leverage operator’s economies of scale, tap into the extensive distribution channels, and source experienced senior management in a tight labour market, all of which ultimately contribute to higher cash flows.”A rebranding exercise is not something to be done lightly. The process, when applied to a hotel, involves so much more than a figurative lick of paint and a few cosmetic changes. More often, it is a wholesale change of identity decided upon after painstaking research and market analysis. But, as freshly reimagined properties around the globe can testify, such a process is well worth the effort when it comes to standing out in competitive hospitality environment.

“”

We decided on an international operator in order to tap into the global distribution

systems and network of a global brand which we thought was important to achieve the

highest financial efficiency of the property

Kishin RKChief Executive of RB Capital


Market on the move: Da NangWith the APEC Leaders’ Summit around the corner, Da Nang is cementing its position as Vietnam’s leading destination for investment.


One of the most fast-paced countries in Southeast Asia, Vietnam is famed for its dynamism and energy. Nowhere is this sense of perpetual forward motion more apparent than in Da Nang, which continues to go from strength to strength as a business and tourism hub to rival traditional resort powerhouses in the region such as Bali and Phuket.Blessed with an enviable location on one of Vietnam’s finest stretches of sand, the city offers easy access to an array of draws including world-class golf courses, casinos and the heritage sights in history-steeped Hue and Hoi An. While its natural and leisure attributes don’t harm its cause, belief in Da Nang’s potential is founded on other key areas. Developers, tour operators and hoteliers repeatedly credit the party leaders in and around Da Nang and Hoi An with fast-tracking projects, making sure the new airport terminal was built and other infrastructure initiatives fast-tracked.Out of 63 provinces in Vietnam, Da Nang has topped the PCI (Provincial Competitiveness Index) from 2013 to 2015. The PCI ranks the performance, capacity and willingness of provincial authorities in creating a favourable business environment for private sector development. The PCI assesses each province by looking at its business entry costs, accessibility to and security of land, business transparency, time efficiency in administrative procedures, and quality of support services. Based on the criteria, Da Nang has the best business environment, due to the city authorities’ constant efforts in administrative reforms and commitment to developing a business friendly environment.“These initiatives put Da Nang ahead of other provinces in Vietnam for the ease of doing business,” says David Lim, managing partner of ZICO Law Vietnam, a firm that provides legal knowledge and advice to local and foreign investors“With Da Nang you are getting a really rounded package,” concurs Penny Trinh, country representative for Marriott, which is poised to unveil five new properties on the central coast by the end of 2018. “Not only is there the beach, the fantastic lifestyle and all the other leisure attractions, it has also become a very easy place for businesses to operate. Many companies, both domestic and international, are opening regional offices in this part of Vietnam. Therefore the supply/demand ratio is very healthy.” Vietnam as a whole has witnessed a renaissance in investor interest of late. Investors once more have a spring in their step, with factors such as improved lending rates and relaxation in foreign ownership rules contributing to the feel-good factor. In the hotel sector record levels of activity have

taken place during the first half of 2016, which saw over USD230million of transactions across the country – including on the in-vogue central coast. “Da Nang is very much on the radar of investors given the continued year-on-year increases in market performance,” states Adam Bury, Senior Vice President, Investment Sales Asia at JLL. “The increase in investment activity is clearly reflective of strong market fundamentals but also reflective of a growing sophistication in the market.”Next year marks another milestone in Da Nang’s emergence as a key player in the region when it hosts the Asia Pacific Economic Cooperation (APEC) leaders’ forum. The summit is expected to offer a significant boost to the Da Nang area’s image as a top tourist destination. When Bali hosted the conference in 2013, hotel occupancy rates shot up with around 30,000 rooms used by delegates during the event. The Indonesian island also benefited from major infrastructure improvements carried out ahead of the summit, and Da Nang is expected to benefit similarly. To welcome the heads of the forum’s member nations as well as participating delegates, city officials have approved a project to upgrade 34 major roads in the city to the tune of USD10.9million. The construction of the international passenger terminal at Da Nang International Airport, which broke ground on November 15, 2015 with investment capital of USD157 million is also slated for completion in March next year. The new terminal, with a capacity of four million passengers a year, will exclusively service international flights while the existing terminal will become domestic.The existing terminal was designed to handle six million passengers a year. But with a 15 percent annual growth rate in passenger numbers, its capacity is now overstretched. Da Nang International Airport already services direct flights from Singapore, Korea, Japan, China, Hong Kong, Macau and Malaysia. In 2016, meanwhile, Bangkok Airways launched a direct link between Bangkok and Da Nang.Da Nang will also benefit from the construction of a 1500-seat, 3922sqm international convention centre – a major potential plus for the MICE market – and a USD2.25 million upgrade to facilities in the city’s Thanh Nien Park. “With these advances to infrastructure, most notably the airport expansion to coincide with the 2017 APEC Summit, we see no reason why the strong performance run of Da Nang will come to an end,” continues Bury. Certainly major hotel groups – both domestic and international – are looking far beyond next year’s summit. An impressive contingent of names including global leaders

Accor, IHG, Hyatt and Melia, as well as leading Asian based groups such as Minor International and Centarta have a presence on the central coast. Joining them in the near future will be Marriott, which is set to make its debut in the area with the 390-room Four points by Sheraton and 800-room JW Marriot on My Khe beach in 2017. “We see huge long-term potential in Da Nang,” continues Penny Trinh. “. With more direct flights operating between major regional destinations and Da Nang, there is likely to be a significant uptick in visitor numbers. “If visa requirements are also eased – something that is being seriously considered – it will make the central coast of Vietnam as convenient and appealing as any destination in the region.”Trinh cites the MICE market as one potential growth area. New properties in the area have placed a strong emphasis on catering to MICE clients, with extensive conferencing and meeting facilities. The burgeoning MICE industry has been growing steadily in Asia. According to an ICCA (International Congress and Convention Association) statistics report in 2014, there were over 2,400 meetings held in Asia Pacific & Middle East, which occupied 20% of worldwide meetings. Considered a market leader in Asia, Thailand’s MICE industry generated around USD14 million in the first three quarters of 2015. The industry in Vietnam will be hoping for similar windfalls from Da Nang.World-class leisure attractions continue to proliferate, with the Luke Donald-designed Ba Na Hills the latest addition to the area’s impressive golf portfolio – one that includes courses designed by legends of the game such as Greg Norman and Colin Montgomerie. “Da Nang has grown continuously over the years, recording an average annual economic growth of 14% from 1997 to 2012, compared with the national average of 7%,” comments Lim of ZICO Law Vietnam. “Further, the local authority is attracting investments in advanced and green technologies by offering incentives such as tax reduction/exemption and land rental exemption. It is evident that Da Nang is setting a good foundation for long-term development, and coupled together with its business-friendly environment, it is likely that the city will see an increase in foreign investment.”In Da Nang life rarely stands still. The streets of the city are a blur of motorbikes and colourful markets. These are familiar sights in Vietnam, but it is the plethora of fresh investment prospects on the central coast that are truly indicative of a region that is going places.

“”

Da Nang is very much on the radar of investors given the continued year-on-year

increases in market performance

Adam BurySenior Vice President, Investment Sales Asia at JLL


A U C K L A N D

NEW NOTABLE HOTELSNOTABLE

HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

Heartland Hotel Auckland AirportIbis Wellington, Auckland

Tanoa Aspen Hotel QueenstownGoldridge Resort Queenstown

SKYCITY Hobson Street HotelNovotel Auckland

Park Hyatt AucklandMillennium Auckland Hotel

Lakewood Court HotelNote: Auckland Hotels refers to MarketwideSource: Tourism Industry Association, Statistics New Zealand, JLLADR - Average daily rate, RevPAR - Revenue per available room

60rooms

Jet Inn Auckland Airport Extension

In the near term, Auckland’s accommodation market is poised for further occupancy gains and in particular room rate growth. Beyond

the short term (from 2018/19) however, some caution is warranted as the market

begins to absorb significant levels of room supply, which ultimately is expected to soften current historic high occupancy (of above 80%). Occupancy is likely to

revert in the medium to longer term to the mid-70% range.

Eight projects (comprising a total of 1,328 rooms) are currently under construction

and are forecast to enter the market over the next two and a half years, with around half of the hotel categorised as 5-star. The

eight new hotel projects represents an approximate 21% increase in rooms, which is an unprecedented level of new supply.

However, as this is expected to be entering the market in a staggered manner (over a two to three year period), this should ease

concerns of an oversupply shock.

Auckland’s reported average occupancy levels of 85.8% for the period year ending July 2016 were the highest level on record

in over 20 years. Auckland’s market occupancy has risen every year since 2010,

after reaching a post GFC low of 69.5% in 2009. FIT and corporate dominate the

business mix of Auckland hotels contributing 47.8% and 20.3% of hotel guest nights,

respectively, through YTD July 2016. International sourced guests accounted for 45% of guest nights sold, while domestic

guests accounted for 55%.

Auckland International Airport, which is the gateway for New Zealand overseas visitors,

has experienced strong growth. For the period YTD June 2016, total passenger

movements have increased 11.6% with an increase recorded in domestic passenger movements, up 13.4% and international

passengers increasing by 10.1%. International visitor arrivals to New Zealand

reached 3.3 million for the period year ending June 2016, a 10.6% improvement

over 2015.

Auckland is New Zealand’s largest and most populous city, situated in the upper half of the North Island. It is centred between two harbours, surrounded by 48 volcanic cones and borders the rainforest hills of the Waitakere and Hunua Ranges. Auckland is renowned for being a multi-cultural city and is often referred to as the ‘City of Sails’ due to the popularity of sailing in the region and the dominant feature of Westhaven Marina on the city’s skyline. Construction of the proposed SKYCITY New Zealand International Convention Centre (NZICC) across the road from its Auckland casino has commenced and is expected to be completed during the first quarter of 2019.

3.3million 60rooms 85.8%NZD 174 NZD 149

International Visitor Arrivals (YTD July 2016)

Number of New Rooms (YTD July 2016)

Occupancy Average Daily Rate (ADR)

Revenue per Available Room (RevPAR)

TOURISM DEMAND SUPPLY OUTLOOK


B A L I

NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

Tune Hotel Bali Portfolio (Legian & Kuta)The Villas Bali Hotel & Spa

The Westin Ubud Resort & Spa Renaissance Bali Uluwatu Resort & Spa

Mövenpick Resort & Spa Jimbaran Bay, Bali

Note: Bali Hotels refers to LuxurySource: STR Global (YTD July 2016), Bali Government Tourism Office, JLLADR - Average daily rate, RevPAR - Revenue per available room

Looking forward, we expect visitor arrivals from the main source markets to continue growing in the short to medium term with improvements in airport accessibility from the Benoa-Ngurah Rai-Nusa Dua toll road and the Simpang Siur underpass. With the visa-free policy applicable for 169 countries from March 2016, the Ministry of Tourism

Indonesia expects inbound tourism to improve as a result of the visa-free facilities

and Bali would possibly be one of the largest beneficiaries of this increase.

A staggering 9,000 rooms are anticipated to be added to room supply (if all proposed stock materialises) from 2016 to 2019. The majority of the new supply is clustered in the upscale sector (40%) followed by the

luxury sector (29%). In terms of location, the supply will be concentrated in the Jimbaran

and Nusa Dua areas. However, it is not unusual for several projects to be postponed

or cancelled due to financing difficulties.

As at March 2016, the visa waiver policy has been implemented by the Indonesian

government for visitors from 169 countries, including Australia which was added to the list recently, the USA, UK, Mainland China and India, enabling them to stay up to 30

days. The visa waiver scheme coupled with the depreciation of the Indonesian Rupiah, has greatly boosted demand from several

source markets.

As at YTD June 2016, visitor arrivals to Bali achieved robust growth, increasing

18.3% y-o-y to 2.3 million. For the full year 2016, the Bali Provincial Tourism Agency is targeting 4.2 million international visitor

arrivals. The strong growth in arrivals can be attributed to the visa waiver scheme which was extended to an additional 79 countries

in March 2016 as well as increased marketing campaigns by the government

to promote the country’s tourism in overseas markets.

292rooms

Hilton Garden Inn Bali Ngurah Rai Airport

NEW NOTABLE HOTELS

Known as the island of the gods, Bali is one of the most popular tourist destinations in the world. Few places on earth are blessed with the amount of sandy beaches, rugged coastlines, lush rice terraces, barren volcanic hillsides, panoramic views, art galleries, local traditions, culture and nightlife that Bali has to offer. On top of all this, Bali is benefiting from increased domestic and international visitor arrivals thanks to its continuously improving infrastructure, affordable air connections and Indonesia’s stable economic growth.

Novotel Bali Ngurah Rai Airport

214rooms

Ibis Bali Legian Street

106rooms

187rooms

Holiday Inn Express Baruna Bali

2.3million 2,493rooms 57.9%USD 422 USD 244

International Visitor Arrivals (YTD June 2016)

Number of New Rooms 2016






HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

297rooms

Mövenpick Bangkok Sukhumvit 15

7.5million 1,996rooms 73.2%THB 5,996 THB 4,387

International Visitor Arrivals (YTD April 2016)




The Bangkok Edition hotel by Ritz CarltonPark Hyatt Central Embassy

Waldorf Astoria Bangkok

Hotel De’MocLiberty Garden Hotel Saphankwai

Note: Bangkok Hotels refers to LuxurySource: STR Global (YTD July 2016), Tourism Authority of Thailand, JLLADR - Average daily rate, RevPAR - Revenue per available room

Bangkok has been resilient to the challenges it consistently faces, and with ongoing infrastructure improvements, the medium to long term prospect of the Thai capital’s hotel and hospitality sector still looks positive. Bangkok offers a mix between the old world charm of Royal palaces and temples to modern shopping, dining out and a vibrant night life. Its location also serves as a starting point for international visitors to enjoy a colourful city break enrooted to the rest of the country’s paradise coastlines.

B A N G K O K

Bangkok received 19.4 million international visitors in 2015, representing a y-o-y

increase of 24.8%, as a result of the year’s strong recovery from 2014’s political unrest in the city. Record arrivals are expected in 2016 as YTD April 2016 has seen tourist

arrivals reaching 7.5 million, 12% up y-o-y, which was however, prior to the recent

security concerns witnessed in the south during August.

Mainland China remains the biggest source market to Bangkok, followed by Japan, South Korea and India. As at YTD April

2016, Bangkok has seen a slight recovery in Russian tourist arrivals, growing at 5.7% on the same period last year. However, the

Russian market has not recovered to its historical high, and is still outside of the top

10 source markets to Bangkok ever since its decline in 2015.

Since the beginning of 2016, approximately 1,027 rooms have been added to the

Bangkok market with another 969 rooms estimated to enter the market by year-end.

Over 40% of future supply for the next four years is concentrated in the upscale segment. Key new projects include The Bangkok Edition Hotel by Ritz Carlton at Sathorn, Park Hyatt Central Embassy at

Ploenchit, and Waldorf Astoria Bangkok at Pathumwan.

With the expansion of Suvarnabhumi Airport, expecting to increase the capacity to 60 million from the current 45 million by 2019, and the renovation of the existing

passenger terminal at Don Mueang Airport, serving 12 million more passengers than

the current 28 million, JLL expect Bangkok market performance to grow as increasing arrivals is likely to be translated to lodging demand growth. However, the continued

security issues in Thailand are taking a toll on travellers’ confidence and could impact

the tourism industry negatively.

Red Planet Hotel Surawong

201rooms

184rooms

Best Western Wanda Hotel



NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

NEW NOTABLE HOTELS

1.9million 986rooms 68.8%RMB 1,020 RMB 701





Beijing Bulgari Mandarin Oriental Wangfujing

Hualuxe Beijing Xinan

There were no hotel transactions in H1 2016

Note: Beijing Hotels refers to Five-star.Source: Beijing Tourism Bureau, STR Global (YTD July 2016), JLLADR - Average daily rate, RevPAR - Revenue per available room

Beijing is Mainland China’s political, cultural and educational centre. It is home to the top 500 corporates in the world and is a major hub for the national highway, railway and high speed rail networks. In addition to the MICE business generated from the corporates, Beijing’s history which dates back to three millennia makes it a popular leisure destination for traditional culture and history. Beijing is also the official host city for the 2022 Olympic Games, which will help to expose the city even more on the international stage.

B E I J I N G

As at YTD June 2016, international visitor arrivals to Beijing decreased by 1.2% y-o-y to 1.9 million. Major source markets such

as Japan and Korea have seen contraction, declining at 5.6% and 6.0% respectively.

On a brighter note, visitor growth from key international source markets including the

USA and Europe have been positive.

Corporate and MICE demand still remain as the major demand drivers as Beijing is

the political commercial centre in Mainland China. As domestic travel continues to

grow, the number of leisure free individual travellers (FITs) with higher disposable

incomes is increasing.

Beijing foresees a relatively slow hotel development phase due to slowing

macro economy. Investors are becoming increasingly cautious on hotel investment and development. At present, there are approximately 40,000 rooms in Beijing

market. As at YTD June 2016, only 226 rooms have entered the market.

For H2 2016, approximately 760 rooms are expected to open. From 2017 onwards, approximately 4,700 rooms will be added,

amounting to 10% of the total existing supply.

Improvements in trading performance of Beijing hotels is expected in the medium term, as the city is gradually recovering from the loss of high-end government

demand due to the government’s austerity measures, and tertiary industries are

increasingly contributing to demand. Strict regulations have also been imposed on new

projects within the fourth ring area to limit the number of new hotel developments.

Longer term, a gradual increase in supply and expected improvements in demand is

expected to strengthen trading performance.

309rooms

Intercontinental Beijing Sanlitun




HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

500,000 769rooms 73.2%AUD 168 AUD 123



Occupancy Average Daily Rate (ADR) Revenue per Available Room (RevPAR)

Swiss Belhotel BrisbaneHoliday Inn Express Brisbane Spring Hill

Emporium Hotel SouthpointCalile Hotel Fortitude Valley

Tryp Fortitude Valley

Brisbane is Queensland’s State capital and the primary gateway to the region and a major corporate centre. The city is the largest economy between Sydney and Singapore with a population of approximately 2.1 million within the Greater Brisbane Statistical Area. Brisbane has experienced economic growth that has been in recent years underpinned by the State’s resources sector. Other major industries include information technology, financial services and public sector administration. Like much of Queensland tourism is also an important part of the Brisbane economy.

In 2015, a total of 23 million visitor nights were spent in Brisbane City. International

visitor nights accounted for 69.4% and domestic nights accounted for 30.6%.

Domestic visitor nights in Brisbane decreased by 2.1% y-o-y however,

international visitor nights in Brisbane increased by 15.6%.

Mainland China remains the biggest source market to Brisbane, followed by the United

Kingdom, Korea and the USA. In 2015, Chinese visitor nights in Brisbane City grew 23.7% y-o-y and have grown at an average annual rate of 15.4% over the last 10 years. While leisure related demand remains the

primary purpose of visit, the education segment grew by a reported 26.4% in 2015

in Brisbane City.

In H1 2016, the supply of short term accommodation in the Brisbane City market increased by approximately

686 rooms or an increase of approximately 9.5% on the existing stock. Looking forward,

we are aware of a further ten short term accommodation development currently

under construction and due for completion between 2017 and 2018. If all projects

materialise, this will represent an increase of 2,049 rooms or 25.4% on the existing stock.

Brisbane’s accommodation market has moderated since its trading highs prior to mid-2012. Notwithstanding, trading performance showed some signs of stabilisation in 2014, boosted by the

G20 summit in November. However, the subsequent demand growth during 2015 was outpaced by a significant increase in

hotel room supply resulting in softer trading conditions overall.

B R I S B A N E

368rooms

Ibis Styles Brisbane Rydges Fortitude Valley

208rooms

110rooms

Richmont Hotel by Mantra

83rooms

Art Series Hotel The Johnson

Note: Hotel supply within the Brisbane City Region.Source: STR Global (YTD July 2016), Tourism Research Australia, JLLADR - Average daily rate, RevPAR - Revenue per available room



NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

NEW NOTABLE HOTELS

1.4million 216rooms 65%INR 6,177 INR 4,012

International Passenger Arrivals (YTD July 2016)




Note: Delhi hotels refers to Luxury Press Information Bureau, Ministry of TourismSource: Delhi Tourism Bureau, STR Global (YTD July 2016), JLLADR - Average daily rate, RevPAR - Revenue per available room

Aloft New Delhi AerocityHyatt Andaz Delhi Aerocity


Delhi is the national capital of India and the political seat of the country. It is also the second most populous city of India and the world’s third largest urban area. The Delhi cityscape exhibits a mix of Islamic architecture and colonial-era style buildings and one can witness a rich past and a thriving present. Modern Delhi has seen a massive transformation and today it is a major economic hub. Delhi has seen improved infrastructure and connectivity through airport expansion, extensive metro network upgrades, roadways and the presence of malls, entertainment centres and public health. The hospitality sector in Delhi is driven by the commercial sector, with a growing contribution coming via the leisure and MICE segments.

Delhi has shown growth of 9% in international passenger arrivals during

the period of January to July 2016 from approximately 1.3 million during the corresponding period in 2015 to

approximately 1.43 million. Foreign arrivals have also seen a steady rise due to the e-visa facility introduced, which is now

available to over 150 countries, boosting leisure demand from foreign visitors. The new visa improvements are relevant to

leisure tourism including visiting friends and family, short duration medical treatment and

business visits.

Delhi reported an average occupancy of 65% in 2015, and the city has seen city-wide

occupancy levels rise for two consecutive years, despite supply additions on a large

scale. This has been driven by growing corporate and MICE demand, and the

increased presence of low-cost air carriers. Demand is expected to remain strong over the next year. The newly developed Delhi

Aerocity district has seen promising demand levels with the availability of Grade A office

space supported by 2,850 hotel rooms.

The Roseate House in the Delhi Aerocity hospitality district is the most notable hotel

opening in 2016. Future supply in Delhi remains fairly limited due to scarcity of land

and high land prices in the city and new supply will be largely concentrated in the

Delhi Aerocity hospitality district: The Andaz in Aerocity expected to open in the second

half of 2016 and the Aloft Delhi Aerocity expected to open early next year.

The hospitality sector in Delhi has remained resilient despite substantial supply additions in the Delhi Aerocity district, with occupancy levels remaining high, however room rates

were significantly impacted across the wider market this year. With limited future supply

of hotel rooms, the demand outlook remains strong with rising corporate and leisure

travellers continuing to drive long term room night demand in Delhi.

D E L H I

216rooms

Roseate House New Delhi Aerocity




HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

Note: Hanoi Hotels refers to Marketwide.Source: STR Global (YTD July 2016), Vietnam National Administration of Tourism, JLLADR - Average daily rate, RevPAR - Revenue per available room

Mercure HanoiNovotel Hanoi Thai Ha

Somerset West Point Hanoi

Sedona Suites Hanoi

151rooms

Novotel Suites Hanoi

Hanoi, the capital of Vietnam and second largest city in the country, offers a fascinating blend of East and West, combining traditional Sino-Vietnamese motifs with French flair. It is largely unscathed from the Augustades of war, and is now going through a building boom, making it a rapidly developing city in Southeast Asia. Motorbikes and pedestrians flow through the lemon-hued colonial architecture, with hawker stalls serving up their famous delights, leaving a sweet aroma in the air. Old traditions and new developments are adding an air of grace to this atmospheric capital.

During 2015, international arrivals to Hanoi reached an all-time high of 3.3 million visitor

arrivals, showing sustained growth for six consecutive years. As at YTD June 2016, the city recorded an impressive growth in international arrivals increasing by 39.3%

y-o-y to 1.5 million arrivals.

Top source markets to Hanoi include Mainland China, South Korea, Japan

and the USA. As at YTD June 2016, the city received a 15.6% increase in tourism

revenue over the same period last year. The Vietnam National Administration of Tourism

(VNAT) targets countries in Western Europe, Northeast Asia and North America, as well

as Australia as the potential source markets of the city.

Approximately 400 hotel rooms are expected to re-enter the market with

the rebranding of the Pan Pacific Hanoi (formerly the Sofitel Plaza Hanoi) and the Eastin Hotel Hanoi (formerly the Lakeside Hotel) by the end of 2016. As at YTD June 2016, a notable opening was the 151-room Novotel Suites Hanoi. Approximately 1,700

new three-star to five-star internationally branded rooms are expected to enter the

market over the next three years.

The VNAT expects international arrivals to reach 3.8 million in 2016, translating to a

15.2% y-o-y growth. In addition to promoting Hanoi’s popular sites, the government is

creating new attractions in the city including the introduction of a new walking street

opening in 2017 and there are plans to build 25 parks over the next five years. New air routes including Dubai-Hanoi by Emirates

are expected to further facilitate the growth of international visitor arrivals to the city.

H A N O I

1.5million 151rooms 76.4%USD 106 USD 81







NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

NEW NOTABLE HOTELS

Note: Ho Chi Minh City Hotels refers to Marketwide.Source: STR Global (YTD July 2016), Vietnam National Administration of Tourism, JLLADR - Average daily rate, RevPAR - Revenue per available room

251rooms

Bay Hotel Ho Chi Minh

Ascott Waterfront Saigonibis Saigon Airport

Ritz-Carlton Saigon

InterContinental Asiana SaigonDuxton Hotel Saigon

Though still known to over eight million inhabitants as Saigon, a war torn city, Ho Chi Minh City is rapidly redeveloping and standing out as a thriving metropolis. Visitors to HCMC can experience fine dining, luxury hotels and rooftop clubs. Keeping some of the original French colonial architecture, pagoda temples and soviet style housing blocks, visitors can find a unique experience and sight at the turn of every corner.

International arrivals to Ho Chi Minh City (HCMC) reached 4.7 million in 2015,

registering a Compound Annual Growth Rate (CAGR) of 11.0% between 2011 and 2015. As at YTD May 2016, international arrivals recorded a 13.5% y-o-y growth,

reaching 2.1 million arrivals.

Top source markets to HCMC include Mainland China, South Korea, Japan and the USA. As at YTD May 2016, tourism

revenue has increased 4.7% y-o-y. Source markets experiencing fast growth in the number of visitors include South Korea,

Japan, the USA and Canada.

During 2015, 804 new rooms were added to the HCMC market. Hotel supply is expected

to grow further with the addition of 1,032 rooms throughout 2016. As at June 2016,

the notable opening was the 251-room Bay Hotel Ho Chi Minh. Approximately 2,500 new rooms are anticipated to enter the

market over the next three years.

The Vietnam National Administration of Tourism is targeting a continued growth in visitor numbers in 2016 with international

arrivals expected to increase by 8.5% y-o-y to 5.1 million arrivals. Improvements in

quality of tourism products and services, training of human resources for the

hospitality sector and encouragement of river tourism have become the major development plans of the government to

boost the city’s tourism industry.

H O C H I M I N H C I T Y

2.1million 1,032rooms 66.8%USD 118 USD 79

International Visitor Arrivals (YTD May 2016)







HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

85rooms

Eco Tree Hotel

38rooms

Madera Hollywood

90rooms

Metro Winner Hotel

32rooms

The Olympian Hotel Hong Kong

161rooms

Cruise Hotel

Note: Hong Kong hotels refers to luxurySource: Hong Kong Tourism Bureau, STR Global (YTD July 2016), JLLADR - Average daily rate, RevPAR - Revenue per available room

Kerry Hotel by Shangri-Lai Hotel (Kowloon South)

Hilton Garden InnHotel 108 (by Onyx)

Rosewood Hong Kong


Hong Kong is much more than a harbour city. The traveller weary of its crowded streets should not forget that this territory with its cloudy mountains and rocky islands is mostly a rural landscape. Hong Kong has long been a gateway between East and West and the result is an intoxicating mix of Chinese and Western history, commerce, culture and cuisine. The hospitality scene is equally dynamic from luxury hotels within skyscrapers to smaller midscale options and economy hotels.

H O N G K O N G

Visitor arrivals to Hong Kong fell 7.4% y-o-y to 27.2 million as at YTD June 2016, primarily due to the decline in visitors from

its top source market, Mainland China. Mainland Chinese visitors dipped by 10.6% y-o-y to 20.4 million arrivals, which can be

attributed to the depreciation of the Chinese Renminbi and Hong Kong’s local tension

towards Mainland China. On a brighter note, short haul markets (excluding Mainland China) recorded a growth of 4.9% y-o-y,

while long haul markets sustained a growth of 2.4% y-o-y during the same period.

Hong Kong is a major corporate and meetings, incentives, conventions and

exhibitions (MICE) hub and an established tourist destination. The Hong Kong

Convention and Exhibition Centre and AsiaWorld-Expo have once again been

awarded as the top three ‘Best Convention and Exhibition Centre’ in the CEI Asia

Industry Awards in 2015. Tourist attractions are also being enhanced in Hong Kong. The

Ocean Park is developing an all-weather indoor and outdoor waterpark which is expected to be completed in H2 2018.

As at YTD July 2016, approximately 431 rooms have been added into the market, including Cruise Hotel, Metro Winner Hotel, and Eco Tree Hotel. An

additional 2,088 rooms are expected to enter the market in the months to come in 2016, most of which are small-to-mid-sized

properties under 100 rooms.

Going forward, weakness in trading performance continues to dampen the market outlook in the short to medium term. Various factors such as currency

depreciation of other major tourist markets as well as the socio-political tension with

Mainland China have put a damper on the city’s short to medium outlook. However,

we are cautiously optimistic that hotel performance is likely to stabilise over the medium to long run, as Hong Kong has proven itself to be a resilient city on the

back of its multi-faceted appeal for leisure, corporate as well as MICE-related demand.

27.1million 2,519rooms 74.7%HKD 3,341 HKD 2,496







NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

NEW NOTABLE HOTELS

Note: Jakarta Hotels refers to Five-starSource: Jakarta Tourism Bureau, STR Global (YTD July 2016), JLLADR - Average daily rate, RevPAR - Revenue per available room

The Westin JakartaHoliday Inn Hotel & Suites Jakarta

Gajah MadaWaldorf Astoria Jakarta

JW Marriott Jakarta Kemang Village


Primarily a city of government, business, industry and trade, Jakarta is also the main gateway to Indonesia’s many tourism destinations. Although the capital of the world’s fourth most populous nation is seldom viewed as a centre for tourism and culture itself, efforts to improve the city’s reputation as a service and tourism city have been stepped-up. In recent years, Jakarta has expanded its facilities for visitors by developing new multi-star luxury hotels, entertainment centres, fine restaurants as well as tourist attractions in an effort to boost visitor arrivals.

J A K A R T A

As at YTD June 2016, international visitor arrivals to Jakarta were recorded at 1.0 million, registering a marginal decline of 1.5% y-o-y. Visitor arrivals were affected by the bombing attacks in the Indonesian capital, Jakarta in January 2016, which

resulted in an overall decline in visitation as at YTD June 2016. However, visitor arrivals picked up in April 2016, showing a 17.8%

y-o-y growth during the month but dipped by 13.4% y-o-y in June 2016 due to the fasting

month of Ramadan.

Jakarta remains a key business gateway in Indonesia and a major corporate

destination. The capital city of Indonesia will continue to attract both international and domestic corporate demand to the

city. However, concerns over terrorism and overall regional and global market volatility may affect demand to the capital city. The top three source markets to Jakarta were

regional countries, namely, Mainland China, Malaysia and Singapore as at YTD

March 2016.

Major hotel openings as at YTD July 2016 comprised international brands including

the 119-room Days Hotel & Suites Jakarta Airport, the 121-room Four Points by

Sheraton Jakarta, Thamrin, the 125-room Four Seasons Hotel Jakarta and the 207-

room Mercure Cikini. Moving ahead, several new international brands will be introduced in the next few years, including luxury hotel brands such as Park Hyatt, Waldorf Astoria, St. Regis and upscale / midscale brands, for

instance, Indigo and Radisson Red.

Indonesia’s visa exemption policy has been extended to a total of 169 countries as at

March 2016, which will increase the ease of accessibility to the country. Indonesia aims to attract 12 million tourists to the country in 2016 and is adopting a “single destination,

single management” concept to develop ten priority tourist destinations. While the new supply of upcoming hotels will add to the diversity of Jakarta’s hotel landscape, the significant supply additions totalling over

11,000 rooms from 2016 to 2021.

1million 1,506rooms 49.5%USD167 USD 83





207rooms

Mercure Jakarta Cikini

121rooms

Four Points by Sheraton Jakarta, Thamrin

125rooms

Four Seasons Hotel Jakarta

119rooms

Days Hotel & Suites Jakarta Airport




HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

W Kuala LumpurFour Seasons Place

The RuMa Hotel & ResidencesRoyale Pavilion Hotel

Banyan Tree Signatures

Sky Express Hotel Bukit BintangAloft Kuala Lumpur Sentral

Note: Kuala Lumpur Hotels refers to Luxury & UpscaleSource: Kuala Lumpur Tourism Bureau, STR Global (YTD July 2016), JLLADR - Average daily rate, RevPAR - Revenue per available room

K U A L A L U M P U RKuala Lumpur, the national capital and most populous city in Malaysia, is a popular destination for business and leisure. A modern and cosmopolitan city, it is a melting pot of different cultures and religions of Asia. The city is an endearing contradiction, from its colonial and Moorish-styled buildings to traditional pre-war shop houses and western-style shopping malls, international hotels, branded residences and green-rated office buildings.

According to Tourism Malaysia, international visitor arrivals into Malaysia reached 25.7

million in 2015, down by 6.3% compared to 2014. As at YTD March 2016, international visitor arrivals to Malaysia were up by 1.4%

y-o-y to 6.6 million, mainly as a result of the return of Mainland Chinese visitors.

The slowdown in 2015 can be attributed to several reasons including street protests in late August 2015 and the regional economic

slowdown, exacerbated by a weakness in the oil and gas industry, which is a key

industry in Malaysia.

Kuala Lumpur is predominantly a corporate market with strong weekday business,

but relatively limited leisure demand and lower weekend occupancy. The major

leisure business comprises tour groups from Mainland China and the Middle East. Demand from Mainland China has started to return to Kuala Lumpur, and as at YTD March 2016, visitor arrivals from Mainland China were up by 35.2% y-o-y. Singapore remains the top source market to Malaysia

and enjoyed a marginal growth of 0.5% y-o-y.

There is a significant amount of new supply coming up in the Kuala Lumpur.

JLL estimates that there are approximately 7,600 hotel rooms and 4,000 serviced

apartment units in the pipeline expected between 2016 and 2020. Recent openings

in the market include the 208-room St Regis Hotel in KL Sentral, and the 160-apartment St Regis Residences, which opened in June

2016, the 383-room Holiday Inn Express Kuala Lumpur City Centre as well as the

completion of a comprehensive renovation of the 364-room Ritz-Carlton.

In the short to medium term, Kuala Lumpur could face an oversupply of new hotel

rooms although the Malaysian government remains committed to promoting the city as

a key Meetings, Incentives, Conventions and Exhibitions (MICE) destination, which

is expected to drive inbound corporate demand over the coming years. In

February 2016, the Kuala Lumpur City Hall implemented a moratorium to limit new hotel

developments, which will help to manage the supply pipeline and have a positive impact on the Kuala Lumpur market in

the long term.

208rooms

The St Regis Hotel

160apartments

The St Regis Residences

247rooms

Oasia Suites Kuala Lumpur

383rooms

Holiday Inn Express Kuala Lumpur City Centre

296apartments

The Ritz-Carlton Residences

6.6million 2,798rooms 64.6%MYR 497 MYR 321

International Visitor Arrivals (YTD March

2016)






NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

Note: Macau Hotels refers to Marketwide.Source: Macao Government Tourism Office, Gaming Inspection and Coordination Bureau Macau, STR Global (YTD July 2016), JLLADR - Average daily rate, RevPAR - Revenue per available room

3,000rooms

The Parisian

1,700rooms

Wynn Palace

Roosevelt Hotel Macau MGM Cotai Resort

Grand Lisboa Palace HotelPalazzo Versace Macau

Karl Lagerfeld Hotel


M A C A UTake a stroll along the cobbled streets of today’s Macau, and you will find European influences interspersed with its Chinese heritage. This is due to the Portuguese traders who established a settlement in Macau during the 16th century, and subsequently administered the region for over 400 years. Since the handover in 1999, the Macau government shortly liberalised gambling licenses in 2001, stimulating the launch of several gaming investment projects after the issue of three licenses in 2002. Before the opening of Macau’s very first foreign-funded casino in 2004, Macau only had 9,000 hotel rooms. Today it has over 30,000.

As at YTD June 2016, international visitor arrivals to Macau increased marginally by

0.1% y-o-y to 14.8 million arrivals. Mainland China continues to be Macau’s largest

source market, accounting for 66% of the total visitor arrivals, followed by Hong Kong

(21%), both of which have experienced declines of -0.4% y-o-y and -3.1% y-o-y

respectively. However, all other top source markets showed improvements in visitation during this period. In Q1 2016, Mainlanders’

spending fell -18.1% y-o-y, contributing largely to the decline in total traveller

spending at -14.2%.

Gaming is the major driver for demand in Macau. As at YTD July 2016, gaming gross

revenue fell by -10.5% y-o-y, despite the easing of visa requirements for Mainland Chinese transit visitors. The crackdown

on corruption and competition from other gaming destinations may have contributed

to the continuous decline in gaming revenue for Macau’s gaming industry.

As at YTD June 2016, total hotel rooms in Macau amounted to 32,972 hotel rooms.

According to the Macau Government Tourism Office, 723 new rooms were

added to the market as at YTD June 2016, accounting for less than 3% of existing

supply. However, there are two major hotel openings in H2 2016. The 1,700-room

Wynn Palace opened in August 2016 and the 3,000-room Parisian Macau opening in September 2016, both of which are located

on the Cotai Strip in Macau.

Macau’s economy has mainly been driven by the gaming sector for the past decade. However, as gaming revenue continues to

shrink, as evident from the recent statistics, casino operators are keen to diversify

into other non-gaming sectors including meetings and entertainment. To attract more

visitors, the government is also improving infrastructure including the development of the Taipa Ferry Terminal, the Macau Light Rapid Transit and the development of a large scale integrated development zone

with strong finance, technology, and leisure generators on Hengqin Island.

14.8million 6,443rooms 83.4%MOP 1,443 MOP1,204





NEW NOTABLE HOTELS



NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

Note: Maldives Hotels refers to Luxury.Source: Maldives Tourism Bureau, STR Global (YTD July 2016), JLLADR - Average daily rate, RevPAR - Revenue per available room

Hurawalhi Resort & SpaThe Residences Maldives at Dhigurah

St Regis VommuliKanuhura Resort & Spa

Radisson Blu Maldives Hulhumale

Kuda RahZitahli Kuda Funafaru

Gaakoshibee Island Maldives

Known for its crystal-clear waters and sandy beaches, the Maldives has established itself as the leading destination for luxury vacations, boasting one of the highest concentrations of luxury resorts in the world. The Maldives is a nation of low-lying coral islands scattered across the Indian Ocean, just north of the equator and southwest of the Indian sub-continent. Stretching for more than 800 kilometres from north to south and covering a total area of 90,000 square kilometres, the Maldivian Archipelago comprises a total of 1,192 coral islands (of which only about 200 are inhabited) formed around a double chain of 26 atolls.

M A L D I V E S

Despite geopolitical pressures and volatility in the global economy as well as decreasing

demand from major source markets, international visitor arrivals to the Maldives have proved resilient and as at YTD June 2016 were up by 1.8% y-o-y to reach 0.6

million. Tourism remains a major contributor to the Maldivian economy, contributing 23% to Gross Domestic Product (GDP) in 2015.

While international visitor arrivals from the top source market, Mainland China, were

down by 11.4% y-o-y as at YTD June 2016, it still made up 25.4% of total visitors arrivals to the Maldives. The overall growth in visitor arrivals has been supported by increasing arrivals from several of the top ten source

markets, notably India (+18.8%), the United Kingdom (+10.3%) and Japan (+9.8%).

International visitor arrivals also increased from the USA (+7.0%), Italy (+5.9%),

Germany (+4.0%) and Russia (+1.2%).

Four new resorts have opened in the Maldives so far in 2016, adding 441 rooms to supply. This includes the upscale Amari

Havodda (120 rooms) which is in the Gaafu Dhaalu Atoll, an approximately 55 minute

domestic flight from Male, the upscale Furaveri Island Resort & Spa (105 rooms)

in the Raa Atoll, the luxury 126-room Amilla Finolhu in the UNESCO world biosphere

of Baa Atoll and OZEN by Atmosphere (90 rooms), a luxury all-inclusive property in the

South Male Atoll.

The Maldives will continue to rely heavily on tourism and the government is aiming to increase international visitor arrivals to 1.6 million by 2017 and potentially to 2.5

million by 2021. Greater focus will be placed on growing tourist arrivals from the Asia

Pacific region, especially from the growing economies of Mainland China, India and

Southeast Asia. New flight routes and the opening of more resorts will make the Maldives more attractive to a wider market

and help to support further growth in tourism numbers.

120rooms

Amari Havodda

105rooms

Furaveri Island Resort & Spa

126rooms

Amilla Finolhu

90rooms

OZEN by Atmosphere

620,000 586rooms 58.5%USD 1,441 USD 843





NEW NOTABLE HOTELS



NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

NEW NOTABLE HOTELS

Note: Manila Hotels refers to MarketwideSource: Manila Tourism Bureau, STR Global (YTD July 2016), JLLADR - Average daily rate, RevPAR - Revenue per available room

Grand Hyatt Manila Citadines Millennium Ortigas

Mövenpick Hotel MakatiMarriott Hotel West Wing

Sheraton Hotel Manila


M A N I L AIn the heart of an archipelago of over 7,000 islands, the bustling city of Manila has emerged as a rising economic powerhouse, a growing destination for multinational corporations and a developing hospitality market. The Philippines’ economy is the fifth largest in South East Asia and has remained relatively resilient to global economic shocks, with GDP growth of 5.8% y-o-y in 2015. The integrated gambling and entertainment strip know as Entertainment City continues to take shape, showcasing a diverse range of world class facilities, integrated resorts, hotels, theatres, celebrity-chef-themed restaurants, shopping malls and convention halls.

International visitor arrivals to the Philippines reached 2.5 million as at YTD May 2016, an increase of 13.0% y-o-y. Consistent

monthly growth has been seen in 2016 in the Philippines, with the country enjoying

monthly double digit y-o-y increases which peaked in February at 549,725 visitors, up 20.4% over the same period in 2015. Regionally, East Asia provides the bulk of

arrivals to the Philippines, followed by North America and ASEAN countries.

Between January and May 2016, total earnings from tourism activities amounted to around PHP 106.6 billion, an increase of 13.5% y-o-y. The major source markets for

international visitor arrivals to the Philippines are South Korea, which comprises 22.9% of total visitor arrivals, the USA (15%) and

Mainland China (11.3%).

The supply pipeline in Manila is expected to show significant growth with an estimated

7,700 hotel rooms due to open up until 2020. The bulk of this new supply is planned

for the Manila Bay area where several integrated resorts are being developed and

the existing resorts expanded to attract more guests. Recent openings in Manila include the 576-room Shangri-La at the Fort Manila which began operations in March 2016, the Conrad Manila, a 347-

room hotel located in the heart of the Mall of Asia complex in Manila Bay and the

150-apartment Somerset Alabang Manila.

The city’s attractiveness to both the corporate and leisure markets combined

with the government’s proactive marketing of the Philippines through its tagline “It’s more fun in the Philippines” and the “Visit

the Philippines again 2016” campaign should support further growth in tourism and the hotel sector going forward. The

continuing development of the integrated casino resorts in Manila Bay and the Pasay area are attracting a new source of regional leisure demand and helping to transform the

local tourism industry.

576rooms

Shangri-La at the Fort Manila

518Hotel 101-Manila

401rooms

Novotel Araneta

347rooms

Conrad Manila

2.5million 3,612rooms 68.5%PHP 5,347 PHP 3,665

International Visitor Arrivals (YTD May 2016)







HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

184rooms

QT Hotel Melbourne

87rooms

Peppers Docklands

130rooms

Punthill Northbank Melbourne

Note: Hotel supply within the Melbourne City RegionCrowne Plaza Melbourne sale was part of a portfolioSource: Tourism Research Australia (YTD March 2016), STR Global (YTD July 2016), JLLADR - Average daily rate, RevPAR - Revenue per available room

Four Points by SheratonNovotel Southbank

Ritz Carlton Hotel & Residences Melbourne

Crowne Plaza Melbourne*InterContinental Melbourne*

Novotel on Collins

(*Part of a portfolio transaction)

M E L B O U R N EMelbourne is Australia’s second most populous city and a major corporate centre for the financial, manufacturing, education and logistics industries. In 2015 Melbourne was ranked the world’s most liveable city in the annual liveability ranking by the Economist Intelligence Unit. Melbourne’s accommodation market has experienced a robust level of growth over the last five years capitalising on the city’s extensive calendar of events and the closure of the Sydney Convention and Exhibition Centre between 2014 and 2016. Melbourne City also has a long history of investment in tourism and transport infrastructure as well as successful marketing of the city nationally and globally.

In 2015, a total of 33.9 million visitor nights were spent in Melbourne City representing

5.9% of all visitor nights in Australia. International visitor nights accounted for

66.0% and domestic nights accounted for 34.0%. Domestic visitor nights in Melbourne increased by 0.6% y-o-y and international visitor nights in Melbourne increased by

10.7% y-o-y.

Melbourne’s calendar of major global events and international conference

program is a draw card for visitors to the city and has contributed to the growth in the accommodation market. Melbourne

City has hosted a number of major events during in the first half of the year, including

The Australian Open, Twenty20 International Cricket, Virgin Australia Melbourne Fashion

Festival, Formula 1 Australia Grand Prix and the Melbourne International Comedy

Festival as well as a range of major theatre productions and exhibitions.

During H1 2016, the luxury positioned Peppers Docklands hotel was opened,

adding 87 rooms to the market. Looking forward we are aware of five short term accommodation developments currently

under construction and due for completion by 2019. If all projects materialise, this will

represent an increase of 817 rooms of 4.7% on the existing stock.

The new convention centre in Sydney (opening in December 2016) may slow

the pace of demand growth in Melbourne over 2017 and 2018. Supply increases in Melbourne City are likely to result in some downward pressure on occupancy levels

to the low 80% range which we note is still very strong.

900,000 401rooms 86%AUD 200 AUD 172






NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

NEW NOTABLE HOTELS

279rooms

Taj Santa Cruz

Radisson Blu Hotel, PowaiRitz Carlton Mumbai


Mumbai is the financial, commercial and entertainment capital of India and one of the country’s largest Metropolises. It features amongst the world’s top ten centres of global financial flow, with a robust commercial economy supported by key industries such as maritime trade, industrial production, capital transactions, real estate and information technology. Mumbai is a major gateway for tourism in the country, with the city featuring the second busiest airport in the country after Delhi. Room night demand is largely dominated by the commercial segment, followed by MICE and Leisure.

M U M B A I

Mumbai has seen a growth of 2% in international passenger arrivals from

approximately 0.71 million as at YTD June 2015 to approximately 0.73 million over the corresponding period in 2016. Total domestic passenger traffic has shown a

strong growth by 13.2% to reach 16 million by YTD June 2016.

Mumbai has been one of the strongest hospitality markets in the country, with an

average city-wide occupancy of over 70% during the last three year period.

Mumbai being the commercial and financial hub of the country, witnesses a significant number of corporate movements during

the year, with the city accounting for a total office stock of 105 million square feet as

of Q2 2016.

Hotel supply growth has been relatively muted, with limited land availability in Mumbai and new supply concentrated

towards the suburbs of the city and future supply expected at the Mumbai International Airport Hospitality district. Major new hotel openings include the 585-room JW Marriott Hotel and the 279-room Taj Santa Cruz in the luxury segment. By the end of 2017, there are approximately 1,300 new hotel

rooms.

Mumbai is expected to witness robust growth in the near future. Furthermore, the

Mumbai office market is expected to witness strong growth with established businesses

expanding and new foreign corporates entering the market. As a result of this

upturn, demand is expected to grow and continue to outpace supply in the short to

medium term.

730,000 279rooms 73.4%INR 7,583 INR 5,564

International Passenger Arrivals (YTD June 2016)




Note: Mumbai Hotels refers to Five-starSource: Mumbai Tourism Bureau, STR Global (YTD July 2016), Press Information Bureau, Ministry of Tourism, JLLADR - Average daily rate, RevPAR - Revenue per available room




HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

None

Note: Osaka Hotels refers to Luxury and UpscaleSource: STR Global (YTD July 2016) Japan Tourism Agency, JLLADR - Average daily rate, RevPAR - Revenue per available room

Conrad Osaka

Hotel Vista Grande Osaka

Osaka is the second largest city in Japan, located in the Kansai region on the western side of Japan. Osaka is a home to Universal Studios Japan which attracted 13.9 million annual visitors in 2015. In addition, its close proximity to other tourist destinations such as Kyoto, Nara and Kobe has also boosted tourism as Osaka houses Kansai International Airport which connects cities of major source markets.

O S A K A

As at YTD May 2016, a total of 6.4 million visitor nights were spent in Osaka City. The

number of international accommodation guests which accounts for 34.5% of total

accommodation guests in Osaka, increased by 33.4% y-o-y. The number of domestic accommodation guests also increased by 3.5% y-o-y. The expansion of Universal

Studios Japan (USJ) in July 2014 and the continuous introduction of seasonal events at USJ has benefited the tourism industry

in Osaka.

International demand remains strong in Osaka during H1 2016, although growth in

visitor arrivals is slowing down as compared to 2015 due mainly to the appreciation of the Japanese Yen (JPY) in 2016. Improvements in international tourist demand is primarily

driven by the JPY depreciation from 2012 to 2015, relaxation of visa requirements since 2012, the proliferation of low cost carriers and the increase in direct flights to Kansai

International Airport from major Asian cities.

According to the Japan Ministry of Health, Labour and Welfare, hotel and ryokan (Japanese Style Inns) supply in Osaka

City accounted for 674 properties (58,383 rooms) as at March 2015. The 598-room The Park Front Hotel at Universal Studios Japan which opened in August 2015 was the only addition of the full service hotel in Osaka since March 2015. There were no

other major hotel openings in 2016.

Further improvements in hotel trading performance are expected for the rest of 2016 and onwards, given the continual

growth in international visitor arrivals as well as limited additions to hotel supply.

2.2million NONE 82.6%JPY 23,409 JPY 19,333

International Accommodation Guests

(YTD May 2016)





NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

Rosewood Phuket


Note: Phuket Hotels refers to Marketwide.Source: Department of Tourism Thailand, STR Global (YTD July 2016), JLLADR - Average daily rate, RevPAR - Revenue per available room

Phuket is Thailand’s largest island and one of the most popular tourist destinations in Southeast Asia. Located in the Andaman Sea, the island’s long history has shaped the Phuket of the present with its diverse ethnic groups, culture and architectural influence. These attributes have made Phuket a complete tourist destination that offers a lot more beyond its natural heritage of sea, sand, forest, and world-renowned diving sites. Sino-Portuguese architecture casts its spell delighting visitors, while Phuket’s style of hospitality has never failed to impress tourists from all walks of life.

P H U K E T

International visitor arrivals to Phuket reached 1.5 million visitors as at YTD April 2016, recording an improvement of 18.1% over the same period in 2015. Phuket has

benefited from the increase in arrivals, largely driven by the growth of the Mainland

China source market.

In 2015, Mainland China, Russia and Australia were Phuket’s top three source

markets, according to arrivals passing through immigration at Phuket International Airport. Mainland China showed the highest growth y-o-y, while Russian visitors declined heavily as a result of the Russian Economic Crisis and the depreciated Ruble. However,

as at YTD April 2016, arrivals of Russian visitors has picked up over the same period

last year by 34.7%.

During 2016, approximately 1,773 rooms are expected to enter the market, of

which 898 rooms have been completed as at August 2016. The total number of

rooms in Phuket stands at approximately 58,200 as at end-2015. The west coast (including Patong, Layan and Kamala)

remains the most popular location for new developments, comprising 54.4% of future

supply between mid-2016 and 2019.

With the expansion and upgrade of Phuket International Airport which will increase

the airport capacity from 7.5 million to 12.5 million by end-2016, the increase in supply is likely to be absorbed by further growth in arrivals which translates to hotel demand. In the medium to longer term, we expect occupancy to remain strong while ADR

remains flat in light of growing demand from Mainland China.

174rooms

Dream Phuket Hotel & Spa

221rooms

Cassia Phuket

161rooms

Hyatt Place

1.5million 1,773rooms 78.9%THB 3,878 THB3,061





NEW NOTABLE HOTELS




HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

Note: Seoul Hotels refers to MarketwideSource: Seoul Tourism Bureau, STR Global (YTD July 2016), JLLADR - Average daily rate, RevPAR - Revenue per available room

Hyatt Place SeoulFour Points by Sheraton Seoul Gangnam

Aloft Seoul MyeongdongNine Tree Myeongdong II

Autograph Collection Mapo


As South Korea’s political, economic and financial hub, Seoul is a bustling metropolitan city within Asia. With its rich heritage and traditions, scenic landscapes and modern infrastructures, Seoul is a major corporate and leisure destination, offering tourists a diverse mix of cultural, entertainment, dining and retail experiences. There has been a significant increase in hotel development against a backdrop of demand growth and limited room supply in recent years.

S E O U L

As at YTD June 2016, visitor arrivals to South Korea recorded a significant

improvement of 21.5% y-o-y to 8.1 million. Visitor arrivals have shown a strong rebound since the Middle East Respiratory Syndrome

(MERS) from May to July 2015. Mainland China remains the country’s top source market, comprising 47.1% of total visitor arrivals. The visa fee waiver for Mainland Chinese travelling in groups which was

initially adopted to aid the tourism industry during MERS has been extended to

end-2016 and this has further encouraged visitation.

Visitor arrivals from all top 10 source markets registered double digit increases as at YTD June 2016. Indonesia (+37.5%

y-o-y), Taiwan (+36.2% y-o-y) and Malaysia (+29.6% y-o-y) recorded the most significant

improvements as at YTD June 2016. The second largest source market, Japan, which

recorded declines in 2014 and 2015, has registered a 10.0% y-o-y increase as at YTD

June 2016. This was possibly due to the appreciation of the Japanese Yen in 2016

and the aggressive tourist promotions by the South Korean government.

As at YTD July 2016, major hotel openings amounted to approximately 2,952 hotel rooms in Seoul, majority of which are in the midscale sector. New hotels include local hotel groups such as the 430-room Lotte City Hotel Myeongdong, the 245-room L7 Myeongdong, the 310-room

Shilla Stay Guro, the 409-room Courtyard Seoul Namdaemun and the 242-room ibis Ambassador Seoul Dongdaemun. Hotel

openings in 2016 were concentrated in the Myeongdong, Namdaemun and

Dongdaemun areas.

Moving forward, the significant increase in hotel rooms, particularly in the midscale

sector is expected to result in greater competition amongst the hotels in Seoul. There are also concerns on a potential

backlash from Mainland China against the deployment of a missile defence system

planned by the United States military in South Korea by end 2017. This may

subsequently have an impact on Mainland Chinese visitation to South Korea.

576rooms

Tmark Grand Hotel Myeongdong

430rooms

Golden Tulip Seoul M Hotel

409rooms

Courtyard Seoul Namdaemun

242rooms

Ibis Ambassador Seoul Dongdaemun

8.1million 2,952rooms 73.5%KRW 180,171KRW132,375






NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

NEW NOTABLE HOTELS

40rooms

Carana Beach Hotel

Note: Seychelles Hotels refers to Five-starSource: Seychelles Tourism Bureau, Seychelles National Statistics Bureau, STR Global (YTD May 2016), JLLADR - Average daily rate, RevPAR - Revenue per available room

Six Senses Zil PasyonFour Seasons Resorts Seychelles at

Desroches Island


The Republic of the Seychelles comprises 115 islands spread over 460 square kilometres of the Indian Ocean. The islands of the archipelago cluster around the main island of Mahé, home to the country’s international airport and its capital, Victoria. Measuring 28 kilometres long by eight kilometres wide, the island is home to almost 90% of the Seychelles’ total population, reflecting the country’s diverse ethnicity and descent from African, Indian, Chinese, and European populations. Together, the islands of Mahé, Praslin and La Digue form the cultural and economic hub of the nation and contain the majority of the Seychelles’ tourism facilities as well as its most stunning beaches.

S E Y C H E L L E S

International arrivals to the Seychelles grew from 128,000 in 2006 to a record number of 280,000 in 2015, representing a CAGR of 7.9% over the 10-year period. Tourist

arrivals have enjoyed continued growth, up by 8.9% y-o-y as at YTD June 2016 to reach almost 140,000 international visitor arrivals as a result of continued improvements in air access as well as more and improving

hotel offerings.

France continues to be the top source market to the Seychelles and makes up

16.1% of total international visitor arrivals to the islands. Visitor arrivals from France have been growing strongly and reached 22,398 as at YTD June 2016, an increase

of 20.1% y-o-y. Growth in visitor arrivals has also been seen in many of the top 10 source

markets including significant growth in arrivals from India (+63.5%), the United Arab

Emirates (+14.2%), Italy (+7.9%), Germany (+6.5%), Switzerland (+5.4%)

and Mainland China (+4.8%).

According to the Seychelles National Statistics Bureau there were a total of

976,856 beds available in Q4 2015, 54% of which were located on Mahé, 25%

on Praslin and 10% on La Digue. As at December 2015, there were a total of 2,760

rooms available in the Seychelles. New hotel openings include the Carana Beach

Hotel, a 40 chalet hotel on Mahé with amenities including a beachside restaurant,

poolside eatery and spa.

Relative to other resort destinations in the Indian Ocean such as the Maldives, the Seychelles has a small future supply

pipeline. Further improvements in air accessibility and the increasing number

of codeshare agreements held by Air Seychelles will further help to support

growth in tourist numbers, enabling the Seychelles to reach out to newer markets,

and bolster hotel demand and trading performance.

140,000 40rooms 69.7%USD 534 USD372







NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

Note: Shanghai Hotels refers to Five-star.Source: Shanghai Tourism Bureau, STR Global (YTD July 2016), JLLADR - Average daily rate, RevPAR - Revenue per available room

InterContinental Shanghai National Exhibition and Convention CentreThe St. Regis Shanghai Jing’an

The Shanghai Tower J HotelW Shanghai PuxiBulgari Shanghai


As the Chinese middle class swells, domestic tourism is booming and Shanghai is among the biggest beneficiaries. With more than 25 million inhabitants, the port is an economic powerhouse connected to Beijing by high speed rail. Cutting edge infrastructure is also transforming the international visitor experience: a magnetic levitation train, which links the international airport to the city at a speed of 430 kilometres per hour, providing a heady start to any stay. As Shanghai Disney Resort commenced trading in June 2016 and Polar Ocean Park is scheduled to open in 2017, this is expected to make the city more exciting not only as a finance and trading centre, but also as a tourism destination with various entertainment facilities.

S H A N G H A I

As at YTD June 2016, international visitors reached approximately 4.1 million, increasing by 4% y-o-y. The USA, Japan

and South Korea remained as Shanghai’s major source markets. The USA and South

Korea saw a y-o-y growth of 14% and 8% respectively. Japanese visitors have underpinned a downward trend, a result of Japan’s slowing economy and political

indifferences between both countries.

Shanghai is primarily a corporate market. Business activities have generated

considerable corporate demand for hotel accommodation. Leisure demand is also

growing, boosted by the domestic tourism market and the opening of the Shanghai

Disney Resort.

As at YTD June 2016, nine hotels positioned in the midscale and upscale sector have

opened, adding 2,823 rooms to the market. Around 4,000 more rooms are expected in 2016, registering a growth rate of 14%

compared with 2015. The project pipeline in Shanghai is extensive and a number of new openings have been postponed to coincide

with the opening of Shanghai Disney Resort.

MICE and corporate demand continues to contribute to Shanghai’s hotel market.

Shanghai Disney Resort will result in considerable domestic tourism demand. However, many domestic visitors have lower budgets for travelling. In the short

to medium term, Shanghai Disney Resort is expected to generate demand for the midscale hotel market. The significant

supply pipeline is also likely to put downward pressure on performance,

if all the projects materialise.

300rooms

Wanda Reign Shanghai

306rooms

Hyatt Regency Shanghai Wujiaochang

226rooms

Radisson Exhibition Center Shanghai

35rooms

Ahn Luh Zhujiajiao

323rooms

Novotel Shanghai Kangqiao

4.1million 6,660rooms 70.8%RMB 1,051 RMB 744




NEW NOTABLE HOTELS



NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

NEW NOTABLE HOTELS

Note: Singapore Hotels refers to LuxurySource: Singapore Tourism Board, STR Global (YTD July 2016), JLLADR - Average daily rate, RevPAR - Revenue per available room

The Patina, Capitol SingaporeSofitel Singapore City Centre

Courtyard by Marriott Singapore NovenaInterContinental Robertson Quay

Andaz Singapore


S I N G A P O R ERanked by the World Economic Forum as Asia’s best tourism and aviation hub, Singapore is poised to capitalise on the region’s booming tourism industry. In addition to this accolade, Lonely Planet in 2015 ranked Singapore the best in travel category, factoring 2015 was Singapore’s Golden Jubilee and 50 years of independence. Asian travellers are projected to account for at least half of global tourism expenditure by 2020 and Singapore’s combination of leisure, retail and business opportunities is sure to guarantee the Lion State more than its fair share of the growth. The city state’s hotel market peaked in 2013 with the sale of Grand Park Orchard hotel and Knightsbridge retail, which pushed transaction volumes to more than 10 times those recorded in 2012.

International visitor arrivals continue to steadily rise as at YTD June 2016, increasing by 12.5% y-o-y to reach

8.1 million visitors. This can primarily be attributed to the strong growth from

Mainland China which has seen a 49.2% y-o-y improvement and currently comprises 22% of total visitor arrivals. Improvements in air connectivity which serves second-tier

Mainland Chinese cities have helped boost visitation from the Mainland.

Mainland China has overtaken Indonesia to become the top source market to

Singapore as at YTD May 2016, with both markets showing improvements in visitation

numbers. Key government initiatives to boost visitation include a renewed focus on marketing especially to second-tier cities in top source markets and additional financing

worth SGD 700 million for the Tourism Development Fund.

As at YTD July 2016, approximately 4,085 rooms have opened across Singapore.

Notable hotel openings in 2016 include the 293-room M Social Robertson Quay, the 451-room Holiday Inn Express Singapore

Katong, the 298-room Hotel ibis Styles Singapore on Macpherson, the 395-room Mercure Singapore Bugis, the 314-room

Oasia Downtown Hotel and the 131-room Hotel Indigo Singapore Katong. Hotel

openings in 2016 were mostly in city fringe areas or suburban areas.

The Singapore Tourism Board (STB) expects modest growth in the tourism

industry amidst global economic volatility and a relatively strong Singapore dollar

which limits tourist spending. Tourism receipts are forecast to grow between 0 and 2% in 2016 to SGD

22.0-22.4 billion while visitor arrivals are forecasted to record between 15.2 – 15.7

million, a growth of 0 – 3 %.

1,500rooms

Hotel Boss

451rooms

Holiday Inn Express Singapore Katong

395rooms

Mercure Singapore Bugis

314rooms

Oasia Downtown Hotel

300rooms

Premier Inn Singapore Beach Road

8.1million 4,085rooms 79%SGD 399 SGD 316







NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

Note: Sri Lanka Hotels refers to Five-star.Source: Sri Lankan Tourism Development Authority, Annual Statistical Report 2015, JLLADR - Average daily rate, RevPAR - Revenue per available room

Jetwing Colombo Seven, Ward Place, Colombo

Damro Marino Sands, ColomboMarriott Weligama Bay Resort & Spa


Sri Lanka has reaped the benefits of consistent economic growth and an impressive tourism growth over the past five-year period. The country’s economy is largely driven by the services sector, which now contributes 58% of the country’s GDP, and is also supported by strong agriculture and textile sectors. The vibrant tourism industry has seen remarkable growth, driven by the strong government focus on the tourism sector, improved infrastructure growth and enhanced marketing and promotional efforts for the country as a whole. Sri Lanka ranks among the top 100 countries in the World Bank’s “Ease of Doing Business” index, above many other South Asian countries and it has maintained a proactive approach in setting strategic policies to facilitate foreign investment and ensure long-term growth.

S R I L A N K A

Sri Lanka recorded approximately 1.8 million foreign tourist arrivals in 2015. International visitor arrivals have continued on the growth trajectory in 2016, with arrivals registering a y-o-y growth of 17% to approximately 1.2 million as at YTD July 2016. In 2015 Sri Lanka’s largest source market (18%),

followed by Mainland China (12%) and the United Kingdom (9%). Sri Lanka ranked

amongst the “top ten coolest countries” in the world to be visited by Forbes magazine

in 2015.

The hotel market in Sri Lanka has been strong with an average occupancy of

over 70% in the past five years. While the Colombo hotel market has been affected by the slow growth in the corporate sector and reduced foreign investments, leisure

markets across the country have seen impressive growth. Sri Lanka’s tourism appeal has been boosted by increased

destination marketing efforts and improved infrastructure, which has eased connectivity to existing and emerging source markets.

Competition has increased in the hotel market due to a growth in hotel room

supply from both domestic and international players. Approximately 2,600 new branded hotel rooms are expected to open across different segments by the end of 2016.

New international branded hotels are being developed mostly in the southwestern coast

and in Colombo. There has been keen interest from international hotel brands such

as Shangri-La, Anantara, Marriott and Starwood.

Sri Lanka’s diverse tourism landscape comprises of stunning beaches, hilly terrains and a rich cultural heritage which is a huge draw for Sri Lanka’s tourism industry and has contributed to the growth of the hotel market. The increase in international hotel

brands has turned the spotlight on Sri Lanka and contributed to the overall growth in

visitor arrivals. The growth in corporate and MICE segments will also follow suit.

300rooms

Shangri-La’s Hambantota Resort & Spa

Anantara Kalutara Resort, Kalutara

141rooms

500rooms

Hotel Riu Sri Lanka, Ahungalla

1.2million 1,263rooms 74.5%USD 95 USD71

International Passenger Arrivals (YTD June 2016)




NEW NOTABLE HOTELS



NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

NEW NOTABLE HOTELS

Sofitel Sydney Darling HarbourSkye by Crown

Pullman Sydney AirportMercure Parramatta

Park Regis City Centre

Sydney is the major gateway to Australia and a key hub for the Asia Pacific region. Famous for its harbour, the city offers extensive shopping, entertainment and dining experiences as well as countless beaches within the wider metropolitan area. As such it is widely regarded as a must-see tourist destination and targeted by international students, notably from Asia. The city also boasts a large domestic visitor segment, being the primary corporate centre in Australia and a key leisure destination. Sydney Airport – Australia’s most significant tourism, corporate and logistics transport hub – received 39.7 million passengers in 2015 and is forecast to receive circa 74.3 million per annum by 2033. Major infrastructure projects such as the Barangaroo urban renewal project and the development of the International Convention Centre Sydney (ICC Sydney) will provide an added boost to the market over the medium to long term.

S Y D N E Y

In 2015, 40.7 million visitor nights were spent in Sydney City which represents

7.1% of all visitor nights spent in Australia. International visitor nights accounted

for 75.0% and domestic nights 25.0%. Domestic visitor nights in Sydney increased marginally by 2.5% in 2015, which can be

partly attributed to the weakening Australian Dollar, while international visitor nights

moderated by 1.5%.

Sydney has benefitted from a combination of a strong corporate and leisure market, a number of major sporting events, and

demand outstripping supply growth in terms of rooms built, which has resulted in its

robust trading performance.

JLL are aware of five accommodation developments currently under construction

in the city centre due for completion between 2016 and 2018. If all projects

materialise, this will represent an increase of 923 rooms or 5.3% on the existing stock.

We note however that this will be largely offset by two proposed hotel closures which

will result in a reduction of 565 rooms or 3.2% of existing stock.

The outlook for Sydney’s accommodation market remains strong, with a continuation

of recent trends anticipated. Both occupancy and ADR are at record levels on a moving annual average basis, with ADR growth expected to further improve in line with the consistent supply outlook and more stable demand environment with growth across a variety of segments including

corporate, cruise and inbound. Occupancy is predicted to remain in the high 80% range

in the coming years, further strengthening RevPAR.

209rooms

76rooms

Four Points Darling Harbour (Extension) (Rebranded as

Hyatt Regency Sydney)

Sydney Hotel CBD

3.6million 285rooms 87.9%AUD 245 AUD 233





Note: Sydney Hotels refers to MarketwideSource: STR Global (YTD July 2016), Tourism Research Australia, JLLADR - Average daily rate, RevPAR - Revenue per available room



NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

Note: Taipei Hotels refers to Luxury & Upper UpscaleSource: Taipei Tourism Board, STR Global (YTD July 2016), JLLADR - Average daily rate, RevPAR - Revenue per available room

406rooms

Mayfull Hotel Taipei

citizenM Taipei XimendingTaipei Royal Golden Tulip Hotel

Fujita Kanko Hotel Taipei


T A I P E ITaipei has been labelled as “the emporium without end.” Its main shopping area can be divided into two districts: East and West. West Taipei is the old city and is characterised by narrow streets packed with small traders. The Western district is home to most government buildings and the Taipei Main Station. East Taipei boasts wide tree lined boulevards and the city’s four main shopping malls. Popular shopping destinations in East Taipei consist of the area around the ZhongXiao-DunHau intersection and Taipei 101.

As at YTD June 2016, international arrivals reached 5.4 million, increasing by

8.9% y-o-y. Due to the tensions between Taiwan and Mainland China as a result of the Taiwanese elections, visitors from Mainland China declined significantly by

11.9% y-o-y in June 2016.

Mainland China remains as Taiwan’s top source market. However, the growth rate

has slowed down to 2.3% y-o-y. In the same period, As at YTD June 2016 visitors from

Japan and Korea increased significantly by 17.9% and 25.7% y-o-y respectively. The

recent recovery in bilateral trade may have encouraged international visitation.

As at July 2016, there are a total of 491 hotels in Taipei City, amounting to 24,072

rooms. The recent openings include Grand Mayfull Hotel Taipei with 146 rooms. In the next few years, international hotel openings

include the 260-room CitizenM Taipei in Ximending, the 292-room Aloft Taipei

located in Beitou District, the Taipei Royal Golden Tulip Hotel and the 248-room

Fujita Kanko Hotel Taipei located in the central Taipei.

The government is shifting its focus to attract more visitors from South Asian

countries, but Mainland Chinese visitation is still significant and continues to account for the majority of the visitor arrivals. New development proposals include Sky Tower, which was recently announced. The project is expected to be located next to Taipei 101

and will include retail, offices and a luxury hotel.

5.4million 494rooms 66.7%TWD 7,294 TWD 4,868





NEW NOTABLE HOTELS

88rooms

Aloft Taipei Zhongshan



NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

NEW NOTABLE HOTELS

Note: Tokyo Hotels refers to LuxurySource: STR Global (YTD July 2016), Japan Tourism Agency, JLLADR - Average daily rate, RevPAR - Revenue per available room

Ascott Marunouchi TokyoTrunk Hotel

Grand Pacific LE DAIBA Hotel MyStays Gotanda Station

The Peninsula Tokyo (Building Only) Hotel MyStays Hamamatsucho

Hotel Sunroute Shinagawa Seaside

Japan has established its position as one of the top tourist destinations in Asia and Tokyo is benefiting from increased visitor arrivals albeit recent JPY appreciation. Even after the athletes have checked out in 2020 Tokyo Olympic, the world’s most populous metropolis will continue to offer a seemingly endless variety of culture, dining, entertainment, with the usual Olympic legacy of new and improved infrastructure.

T O K Y O

A total of 20.8 million visitor nights were spent in Tokyo as at YTD May 2016,

representing 12.7% of all visitor nights across Japan. International accommodation

guests, which account for 32.4% of total accommodation guests in Tokyo,

increased by 1.9% y-o-y while domestic accommodation guests declined by

7.7% y-o-y.

Although the recent JPY appreciation has contributed to a slowdown of growth in international visitor arrivals, the Tokyo

hotel market continues to see a high demand from inbound leisure tourists. Foreign visitors to Japan reached 19.7 million in 2015, marginally missing the

target of 20 million foreign visitors targeted by the national government by 2020. The government has since revised the goal to

attract 40 million foreigners a year by 2020.

According to Japan Ministry of Health, Labour and Welfare, hotel and ryokan (Japanese Style Inns) supply in Tokyo

accounted for 1,869 properties (143,848 rooms) as at March 2015. From March

2015 onwards, a total of four new luxury products (487 rooms) have been added to

the market.

Tokyo’s hotel trading performances are expected to show further growth but at a

slower pace for the rest of 2016 and moving forward. RevPAR improvement is likely to

be driven by ADR growth as occupancy has already reached a high level.

250rooms

The Prince Gallery Kioi-cho, a Luxury Collection Hotel

123rooms

Oakwood Premier Tokyo (Serviced Apartment with Hotel Licence)

84rooms

Hoshinoya Tokyo (Luxury Ryokan)

30rooms

Allamanda Aoyama

14million 487rooms 81%JPY 55,529 JPY44,991






NOTABLE HOTEL DEALS

UPCOMING HOTELS

QUICK FACTS

Note: Yangon Hotels refers to Five-star.Source: Ministry of Hotels & Tourism, JLL Estimates (Dec 2015)ADR - Average daily rate, RevPAR - Revenue per available room

Hilton YangonIbis Styles Yangon Stadium

Rose Garden HotelMelia Hotel Yangon

Centre Point

Micasa Hotel Apartments

While no longer the nation’s capital, Yangon remains the largest and most commercially important city in Myanmar and is a melting pot of different cultures and communities. Serving as the country’s main entrance and seaport, it is the country’s centre of business. The magnificent Shwedagon Pagoda dominates the city skyline, while at street level Yangon is a paradise for hunting out a variety of exotic arts and crafts. It still maintains its colonial charm with wide tree lined avenues, tranquil lakes, and gracious turn of the century architecture. Since the 2015 elections, Yangon’s fortunes have skyrocketed along with its land prices, as both local and foreign investors scrambled to gain a foothold. The overall business sentiment is expected to improve further in Yangon and the rest of Myanmar.

Y A N G O N

Foreign visitor arrivals to Yangon have grown rapidly after cyclone Nargis in 2008, achieving a compound annual growth rate (CAGR) of 30% over the past seven-year

period, albeit starting from a very low base. Arrivals grew by 15.5% to over 1.2 million

during 2015 compared to the previous year. Further growth is expected in 2016 for Yangon. As at YTD June 2016, the nation experienced a 4% growth in visitor arrivals as compared to the same period last year.

Thailand and Mainland China have been the top source markets to Myanmar over the

past few years given their close proximity and long-standing economic cooperation.

During 2015, other top source markets were Japan at 6.9%, followed by the

United States and South Korea at 5.4% and 4.9% respectively.

The majority of existing lodging supply in Yangon can be characterised as unbranded,

and the supply of international standard remains fairly limited. However, over the

next three to five years, over 5,000 rooms are expected to enter the market and

several upcoming hotels will be managed by international brands and are considered to

be in the luxury and upscale sector, such as the 400-room Melia Hotel Yangon which is

expected to open by the end of 2016.

Tourist arrivals to Yangon are expected to continue growing, aided by the expansion of the existing Yangon International Airport to raise passenger capacity from 2.7 million to 8 million by 2019, alongside the construction of a new Hanthawaddy International Airport to serve a capacity of 12 million passengers

by 2022.

366rooms

Novotel Yangon Max Hotel

Centre Point

60rooms

431rooms

Sedona Hotel Yangon

1.2million 1,151rooms 52%USD 170 USD 88

International Accommodation Guests

(YTD May 2016)




NEW NOTABLE HOTELS



C O N T R I B U T O R S

Frank SorgiovanniSenior Vice PresidentHead of ResearchAsia [email protected]

Scott HetheringtonChief Executive Officer [email protected]

Craig Collins Chief Executive OfficerAustralasia [email protected]

Troy Craig Managing Director Strategic Advisory Asia Pacific [email protected]

Mike Batchelor Managing Director Investment Sales [email protected]

Mandeep Lamba Managing Director [email protected]

Mark Durran Managing Director Investment SalesAustralasia [email protected]

Tom Sawayanagi Managing Director Japan [email protected]

Front cover Mount Fuji at Lake Kawakuchiko in Japan

About JLL Hotels & Hospitality Group JLL’s Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totalling more than $68 billion worldwide. Between negotiating the world’s most extraordinary, enticing, and profitable property deals, the group’s 350-strong global team also closed more than 4,400 advisory, valuation and asset management assignments. Investors worldwide turn to JLL to shape their strategies, tailor their portfolios and maximise the value of their assets. We are recognised as the global leader in real estate services across hospitality properties of all shapes and sizes. Our expert advice is backed by industry-leading research. We apply our broad spectrum of hotel valuation, brokerage, asset management and consultancy services through every phase of the hotel lifecycle. We have helped more hotel investors, owners and operators achieve high returns on their assets than any other real estate advisor in the world. Whether you are looking for a hotel or you’re ready to sell, we’ll use our capital markets expertise, hospitality industry knowledge and global relationships to put the right parties together and execute a bespoke deal that exceeds your objectives.

To find out more, talk to JLL. www.jll.com/hospitality


Q U I C K F A C T S C O M P A R I S O NInternational Visitor

ArrivalsNumber of New

Rooms 2016Occupancy

(YTD July 2016)Average Daily Rate

(ADR) USDRevenue per

Available Room(RevPAR) USD

AUCKLAND(MARKETWIDE)

3.3 million (YTD July 2016)

60 rooms (YTD July 2016)

85.8% $125 $107

BALI (LUXURY)

2.3 million(YTD June 2016)

2,493 rooms 57.9% $422 $244

BANGKOK(LUXURY)

7.5 million(YTD April 2016)

1,996 rooms 73.2% $170 $124

BEIJ ING(F IVE-STAR)


986 rooms 68.8% $155 $107

BRISBANE(MARKETWIDE)

500,000(YTD June 2016)

769 rooms 73.2% $124 $90

DELHI(LUXURY)

1.4 Million(YTD July 2016)

216 rooms 65% $137 $96

HANOI(MARKETWIDE)


151 rooms 76.4% $106 $81

HO CHI MINH CITY(MARKETWIDE)

2.1 million(YTD May 2016)

1,032 rooms 66.8% $118 $79

HONG KONG(LUXURY)


2,519 rooms 74.7% $430 $321

JAKARTA(F IVE-STAR)

1 million(YTD June 2016)

1,506 rooms 49.5% $167 $83

KUALA LUMPUR(LUXURY & UPSCALE)

6.6 million(YTD March 2016)

2,798 rooms 64.6% $123 $79

MACAU(MARKETWIDE)


6,443 rooms 83.4% $180 $150

MALDIVES(LUXURY)

620,000(YTD Jun 2016)

586 rooms 58.5% $1,441 $843

MANILA(MARKETWIDE)


3,612 rooms 68.5% $114 $78


International Visitor Arrivals


Occupancy(YTD July 2016)

Average Daily Rate (ADR) USD

Revenue perAvailable Room(RevPAR) USD

MELBOURNE(MARKETWIDE)

900,000(YTD June 2016)

401 rooms 86% $148 $127

MUMBAI(LUXURY)

730,000(YTD Jun 2016)

279 rooms 73.4% $114 $84

OSAKA(LUXURY & UPSCALE)


None 82.6% $214 $177

PHUKET(MARKETWIDE)

1.5 million(YTD April 2016)

1,773 rooms 78.9% $110 $86

SEOUL(MARKETWIDE)


2,952 rooms 73.5% $155 $114

SEYCHELLES(F IVE-STAR)

140,000(YTD Jun 2016)

40 rooms 69.7% $534 $372

SHANGHAI(F IVE-STAR)


6,660 rooms 70.8% $160 $113

SINGAPORE(LUXURY)


4,085 rooms 79% $291 $230

SRI LANKA(F IVE-STAR)


1,263 rooms 74.5% $95 $71

SYDNEY(MARKETWIDE)


285 rooms 87.9% $181 $159

TAIPEI(LUXURY & UPPER UPSCALE)


494 rooms 66.7% $224 $149

TOKYO(LUXURY)

14 million(YTD Jul 2016)

487 rooms 81% $506 $410

YANGON(F IVE-STAR)

1.2 million(2015)

1,151 rooms 52% $170 $88

JLL Hotels & Hospitality Group offices

Atlanta Tel +1 404 995 2100 Auckland Tel +64 9 366 1666 Bangkok Tel +662 624 6400 Barcelona Tel +34 93 318 5353 Beijing Tel +86 10 5922 1356 Bethesda Tel +1 301 214 1144 Brisbane Tel +61 7 3231 1400 Buenos Aires Tel +54 11 4893 2600Charlotte Tel +1 704 943 2300 Chicago Tel +1 312 782 5800 Dallas Tel +1 214 438 6100 Denver Tel +1 303 260 6500 Dubai Tel +971 4 426 6999

Dublin Tel +353 1 673 1600 Düsseldorf Tel +49 211 13006 780 Edinburgh Tel +44 131 301 6723Exeter Tel +44 1392 423696 Frankfurt Tel +49 69 2003 0 Glasgow Tel +44 141 248 6040 Hong Kong Tel +852 2846 5000 Istanbul Tel +90 212 350 0800 Johannesburg Tel +27 11 507 2200 Leeds Tel +44 113 244 6440 Lisbon Tel +351 21 358 3222London Tel +44 20 7493 6040

Los Angeles Tel +1 213 239 6000 Lyon Tel +33 4 7889 2626 Madrid Tel +34 91 789 1100 Manchester Tel +44 161 828 6440 Marseille Tel +33 4 9509 1313 Melbourne Tel +61 3 9672 6666 Mexico City Tel +52 55 5980 8003 Miami Tel +1 305 529 6345 Milan Tel +39 02 85 86 86 70 Moscow Tel +7 495 737 8000 Munich Tel +49 89 2900 88 182 New Delhi Tel +91 124 460 5000

www.jll.com/hospitality

Jones Lang LaSalle Property Consultants Pte Ltd | CEA Licence No. L3007326E

© 2016 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

New York Tel +1 212 812 5700 Paris Tel +33 1 4055 1718Rome Tel +39 06 4200 6771 San Francisco Tel +1 415 395 4900 Santiago Tel +56 2 2374 0070São Paulo Tel +55 11 3071 0747 Shanghai Tel +86 21 6393 3333 Singapore Tel +65 6536 0606 Sydney Tel +61 2 9220 8777 Tampa Tel +1 813 229 3991 Toronto Tel +1 416 304 6000 Tokyo Tel +81 3 5501 9240

Date post:	12-Jul-2020
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times

Hotel Destinations Asia Pacific - The Investor...A rebranding exercise is not something to be done...

Documents