Hotel Destinations Asia Pacific - Hotels & Hospitality Group | October 2016 - The Investor JLL
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Hotels & Hospitality Group | October 2016 Hotel Destinations Asia Pacific
2 Hotel Destinations Asia Pacific
Is it time for a change?
A carefully considered rebrand can help hotel owners make their property stand
out in a crowded hospitality market.
Hotel Destinations Asia Pacific 3
“ 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 RK
Chief Executive of RB Capital
As global icons ranging from tech giants Apple to men’s Resort and Spa Sentosa to, respectively, JW Marriott In 2016, South Beach Consortium Pte. Ltd. (a joint
grooming specialists Old Spice know, a reinvention can be Hotel Singapore South Beach, InterContinental Singapore venture between Singapore-listed international real estate
a wonderful thing. It wasn’t all that long ago that Apple was Robertson Quay, Four Points by Sheraton Singapore operating company City Developments Limited (CDL) and
pigeonholed as appealing to only artists and designers and Riverview and Sofitel Singapore Sentosa Resort and Spa. IOI Properties Group Berhad) signed a hotel management
Old Spice was saddled with a dated image that made it a According to Kousloglou, a number of other hotel owners agreement with Marriott International for The South Beach
subject of derision. around the region are looking to rebrand or reposition their hotel to be rebranded as Singapore’s first JW Marriott.
After carefully repositioning in the market with new lines of properties. In his view, there is nothing surprising about the “First and foremost you need to decide what exactly your
product and a different way of presenting themselves, the fact that so many owners seek to put some global gloss on expectations are from this asset and the selected operator
two are now among the world’s most potent brands. their rebrand. as deliverables from different brands may vary,” comments
Unlike companies in other fields, most hotel owners who opt “Well established brands often serve as a source of strategic Ananda R. Arawwawela, Executive Vice President, Hotel
to go through the rebranding process do so under the aegis advantage. Their ability to generate cash flows via relatively Assets Management of CDL. “Marriott International was
of a different operator or management company. However, higher room rates and profit margins and their efficient picked based on a strict selection criteria.”
similar to other shining examples of successful reinvention, and extensive distribution and sales network in key source While most rebrandings are undertaken smoothly, owners
hotels too can benefit from a change of approach. markets make them highly desirable,” adds Kousloglou. should be aware that finding international operators carries
There are myriad factors as to why a hotel owner in Asia One of the latest hotels in Singapore to take on an its own set of – often costly – requirements. Financially, a
might consider putting a property through a rebranding international guise is the InterContinental Robertson Quay, rebranding might require extensive changes in the current
exercise, not least of which is the sheer competition in the due to open in 2017. Housed in the former Gallery Hotel, product and service offering and operation of the hotel. From
market. In Singapore, for example, hotel investments are InterContinental Robertson Quay aims to bring new life to a financial perspective, a decision also needs to be made
booming across the island. According to JLL estimates, that the existing building by entirely transforming its interiors well in advance as to whether the hotel will remain open
there will be approximately 70,000 hotel rooms in the country façade and adjacent outdoor spaces. The hotel will be the during the rebranding.
by the end of 2018 – a sharp rise from the circa 55,000 centerpiece of developer RB Capital’s Robertson Quay “Owners will need to evaluate carefully the benefits of the
rooms at the end of 2013. Project, a major reimagining of the riverside area as a rebranding exercise against the overall cost. A strategically
“In an increasingly competitive and changing hotel market lifestyle destination. rebranded hotel can be repositioned with a higher Average
environment, branding, positioning and distribution are “We decided on an international operator in order to tap Daily Rate (ADR), take advantage of additional revenue
critical success factors for the success and profitability of into the global distribution systems and network of a global opportunities due to space and other efficiencies, and better
the hotel,” comments Tasos Kousloglou, Executive Vice brand which we thought was important to achieve the respond to changing client needs,” concludes Kousloglou. “A
President, Asset Management Asia at JLL. highest financial efficiency of the property,” says Kishin new brand could also allow the hotel to leverage operator’s
RK, Chief Executive of RB Capital. “The owner would like economies of scale, tap into the extensive distribution
In a packed market place it is no longer enough to rely on
to see the property post refurbishment to tap its maximum channels, and source experienced senior management in
friendly pricing and customer loyalty. Nowadays it is vital for
potential both from a financial and business point of view. a tight labour market, all of which ultimately contribute to
a hotel to find its target audience or niche, and to maximise
The operator’s ideal outcome will be to have the rebranding higher cash flows.”
its revenue potential from a variety of channels. It can do so
by analysing the market and assessing whether its brand as a launch pad for its brand in the sub market the property A rebranding exercise is not something to be done lightly.
positioning is in line with the current demand drivers. If that’s is located in.” The process, when applied to a hotel, involves so much
not the case, then a rebrand is something worth considering. Deciding to look for an international operator is a relatively more than a figurative lick of paint and a few cosmetic
straightforward move. What is more complicated is selecting changes. More often, it is a wholesale change of identity
In Singapore, several examples of rebranding have taken
the right brand and operator for a hotel. Choosing the right decided upon after painstaking research and market
place over recent years. Although some international
operator and negotiating a suitable hotel management analysis. But, as freshly reimagined properties around the
branded hotels have swapped operators, the trend
agreement can have a significant long-term impact on the globe can testify, such a process is well worth the effort
has mostly been for unbranded hotels to align with an
hotel’s financing, profitability and asset value. Therefore the when it comes to standing out in competitive hospitality
internationally recognisable operator. Notable examples
selection process is not simply a question of picking a name environment.
include the rebranding of the existing The South Beach
hotel, Gallery Hotel, Riverview Hotel and Singapore out of a hat.
4 Hotel Destinations Asia Pacific
Market on the move: Da Nang
With the APEC Leaders’ Summit around the corner, Da Nang is cementing its
position as Vietnam’s leading destination for investment.
Hotel Destinations Asia Pacific 5
“ Da Nang is very much on the radar of
investors given the continued year-on-year
”
increases in market performance
Adam Bury
Senior Vice President, Investment Sales Asia at JLL
One of the most fast-paced countries in Southeast Asia, taken place during the first half of 2016, which saw over Accor, IHG, Hyatt and Melia, as well as leading Asian based
Vietnam is famed for its dynamism and energy. USD230million of transactions across the country – including groups such as Minor International and Centarta have a
Nowhere is this sense of perpetual forward motion more on the in-vogue central coast. presence on the central coast.
apparent than in Da Nang, which continues to go from “Da Nang is very much on the radar of investors given the Joining them in the near future will be Marriott, which is set
strength to strength as a business and tourism hub to rival continued year-on-year increases in market performance,” to make its debut in the area with the 390-room Four points
traditional resort powerhouses in the region such as Bali and states Adam Bury, Senior Vice President, Investment Sales by Sheraton and 800-room JW Marriot on My Khe beach in
Phuket. Asia at JLL. “The increase in investment activity is clearly 2017.
Blessed with an enviable location on one of Vietnam’s finest reflective of strong market fundamentals but also reflective “We see huge long-term potential in Da Nang,” continues
stretches of sand, the city offers easy access to an array of of a growing sophistication in the market.” Penny Trinh. “. With more direct flights operating between
draws including world-class golf courses, casinos and the Next year marks another milestone in Da Nang’s emergence major regional destinations and Da Nang, there is likely to
heritage sights in history-steeped Hue and Hoi An. as a key player in the region when it hosts the Asia Pacific be a significant uptick in visitor numbers.
While its natural and leisure attributes don’t harm its cause, Economic Cooperation (APEC) leaders’ forum. “If visa requirements are also eased – something that is
belief in Da Nang’s potential is founded on other key areas. The summit is expected to offer a significant boost to the being seriously considered – it will make the central coast of
Developers, tour operators and hoteliers repeatedly credit Da Nang area’s image as a top tourist destination. When Vietnam as convenient and appealing as any destination in
the party leaders in and around Da Nang and Hoi An with Bali hosted the conference in 2013, hotel occupancy rates the region.”
fast-tracking projects, making sure the new airport terminal shot up with around 30,000 rooms used by delegates Trinh cites the MICE market as one potential growth area.
was built and other infrastructure initiatives fast-tracked. during the event. The Indonesian island also benefited from New properties in the area have placed a strong emphasis
major infrastructure improvements carried out ahead of the on catering to MICE clients, with extensive conferencing and
Out of 63 provinces in Vietnam, Da Nang has topped
summit, and Da Nang is expected to benefit similarly. meeting facilities. The burgeoning MICE industry has been
the PCI (Provincial Competitiveness Index) from 2013
to 2015. The PCI ranks the performance, capacity and To welcome the heads of the forum’s member nations as growing steadily in Asia. According to an ICCA (International
willingness of provincial authorities in creating a favourable well as participating delegates, city officials have approved Congress and Convention Association) statistics report in
business environment for private sector development. The a project to upgrade 34 major roads in the city to the tune of 2014, there were over 2,400 meetings held in Asia Pacific
PCI assesses each province by looking at its business USD10.9million. & Middle East, which occupied 20% of worldwide meetings.
entry costs, accessibility to and security of land, business The construction of the international passenger terminal Considered a market leader in Asia, Thailand’s MICE
transparency, time efficiency in administrative procedures, at Da Nang International Airport, which broke ground on industry generated around USD14 million in the first three
and quality of support services. Based on the criteria, Da November 15, 2015 with investment capital of USD157 quarters of 2015. The industry in Vietnam will be hoping for
Nang has the best business environment, due to the city million is also slated for completion in March next year. The similar windfalls from Da Nang.
authorities’ constant efforts in administrative reforms and new terminal, with a capacity of four million passengers a World-class leisure attractions continue to proliferate, with
commitment to developing a business friendly environment. year, will exclusively service international flights while the the Luke Donald-designed Ba Na Hills the latest addition
“These initiatives put Da Nang ahead of other provinces in existing terminal will become domestic. to the area’s impressive golf portfolio – one that includes
Vietnam for the ease of doing business,” says David Lim, The existing terminal was designed to handle six million courses designed by legends of the game such as Greg
managing partner of ZICO Law Vietnam, a firm that provides passengers a year. But with a 15 percent annual growth rate Norman and Colin Montgomerie.
legal knowledge and advice to local and foreign investors in passenger numbers, its capacity is now overstretched. “Da Nang has grown continuously over the years, recording
“With Da Nang you are getting a really rounded package,” Da Nang International Airport already services direct flights an average annual economic growth of 14% from 1997 to
concurs Penny Trinh, country representative for Marriott, from Singapore, Korea, Japan, China, Hong Kong, Macau 2012, compared with the national average of 7%,” comments
which is poised to unveil five new properties on the central and Malaysia. In 2016, meanwhile, Bangkok Airways Lim of ZICO Law Vietnam. “Further, the local authority is
coast by the end of 2018. launched a direct link between Bangkok and Da Nang. attracting investments in advanced and green technologies
by offering incentives such as tax reduction/exemption and
“Not only is there the beach, the fantastic lifestyle and all Da Nang will also benefit from the construction of a 1500-
land rental exemption. It is evident that Da Nang is setting
the other leisure attractions, it has also become a very easy seat, 3922sqm international convention centre – a major
a good foundation for long-term development, and coupled
place for businesses to operate. Many companies, both potential plus for the MICE market – and a USD2.25 million
together with its business-friendly environment, it is likely
domestic and international, are opening regional offices in upgrade to facilities in the city’s Thanh Nien Park.
that the city will see an increase in foreign investment.”
this part of Vietnam. Therefore the supply/demand ratio is “With these advances to infrastructure, most notably the
very healthy.” In Da Nang life rarely stands still. The streets of the city
airport expansion to coincide with the 2017 APEC Summit,
are a blur of motorbikes and colourful markets. These are
Vietnam as a whole has witnessed a renaissance in investor we see no reason why the strong performance run of Da
familiar sights in Vietnam, but it is the plethora of fresh
interest of late. Investors once more have a spring in their Nang will come to an end,” continues Bury.
investment prospects on the central coast that are truly
step, with factors such as improved lending rates and Certainly major hotel groups – both domestic and indicative of a region that is going places.
relaxation in foreign ownership rules contributing to the feel- international – are looking far beyond next year’s summit.
good factor. In the hotel sector record levels of activity have An impressive contingent of names including global leaders
6 Hotel Destinations Asia Pacific
TOURISM DEMAND SUPPLY OUTLOOK
Auckland International Airport, which is the Auckland’s reported average occupancy Eight projects (comprising a total of 1,328 In the near term, Auckland’s accommodation
gateway for New Zealand overseas visitors, levels of 85.8% for the period year ending rooms) are currently under construction market is poised for further occupancy gains
has experienced strong growth. For the July 2016 were the highest level on record and are forecast to enter the market over and in particular room rate growth. Beyond
period YTD June 2016, total passenger in over 20 years. Auckland’s market the next two and a half years, with around the short term (from 2018/19) however,
movements have increased 11.6% with an occupancy has risen every year since 2010, half of the hotel categorised as 5-star. The some caution is warranted as the market
increase recorded in domestic passenger after reaching a post GFC low of 69.5% eight new hotel projects represents an begins to absorb significant levels of room
movements, up 13.4% and international in 2009. FIT and corporate dominate the approximate 21% increase in rooms, which supply, which ultimately is expected to
passengers increasing by 10.1%. business mix of Auckland hotels contributing is an unprecedented level of new supply. soften current historic high occupancy
International visitor arrivals to New Zealand 47.8% and 20.3% of hotel guest nights, However, as this is expected to be entering (of above 80%). Occupancy is likely to
reached 3.3 million for the period year respectively, through YTD July 2016. the market in a staggered manner (over a revert in the medium to longer term to the
ending June 2016, a 10.6% improvement International sourced guests accounted for two to three year period), this should ease mid-70% range.
over 2015. 45% of guest nights sold, while domestic concerns of an oversupply shock.
guests accounted for 55%.
AUCKLAND
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.
NEW NOTABLE HOTELS
NOTABLE
HOTEL DEALS
Heartland Hotel Auckland Airport
60
rooms
Ibis Wellington, Auckland
Tanoa Aspen Hotel Queenstown
Goldridge Resort Queenstown
Jet Inn Auckland
Airport Extension
QUICK FACTS
UPCOMING
3.3million 60rooms 85.8% NZD 174 NZD 149 HOTELS
International Visitor Number of New Rooms Occupancy Average Daily Rate Revenue per Available SKYCITY Hobson Street Hotel
Arrivals (YTD July 2016) (YTD July 2016) (ADR) Room (RevPAR) Novotel Auckland
Park Hyatt Auckland
Millennium Auckland Hotel
Note: Auckland Hotels refers to Marketwide
Source: Tourism Industry Association, Statistics New Zealand, JLL Lakewood Court Hotel
ADR - Average daily rate, RevPAR - Revenue per available room
Hotel Destinations Asia Pacific 7
TOURISM DEMAND SUPPLY OUTLOOK
As at YTD June 2016, visitor arrivals to As at March 2016, the visa waiver policy A staggering 9,000 rooms are anticipated Looking forward, we expect visitor arrivals
Bali achieved robust growth, increasing has been implemented by the Indonesian to be added to room supply (if all proposed from the main source markets to continue
18.3% y-o-y to 2.3 million. For the full year government for visitors from 169 countries, stock materialises) from 2016 to 2019. The growing in the short to medium term with
2016, the Bali Provincial Tourism Agency including Australia which was added to the majority of the new supply is clustered in improvements in airport accessibility from
is targeting 4.2 million international visitor list recently, the USA, UK, Mainland China the upscale sector (40%) followed by the the Benoa-Ngurah Rai-Nusa Dua toll road
arrivals. The strong growth in arrivals can be and India, enabling them to stay up to 30 luxury sector (29%). In terms of location, the and the Simpang Siur underpass. With the
attributed to the visa waiver scheme which days. The visa waiver scheme coupled with supply will be concentrated in the Jimbaran visa-free policy applicable for 169 countries
was extended to an additional 79 countries the depreciation of the Indonesian Rupiah, and Nusa Dua areas. However, it is not from March 2016, the Ministry of Tourism
in March 2016 as well as increased has greatly boosted demand from several unusual for several projects to be postponed Indonesia expects inbound tourism to
marketing campaigns by the government source markets. or cancelled due to financing difficulties. improve as a result of the visa-free facilities
to promote the country’s tourism in and Bali would possibly be one of the
overseas markets. largest beneficiaries of this increase.
BALI
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.
NEW NOTABLE HOTELS
NOTABLE
HOTEL DEALS
Tune Hotel Bali Portfolio (Legian & Kuta)
The Villas Bali Hotel & Spa 292rooms
214rooms
187rooms
106rooms
Hilton Garden Inn Bali Novotel Bali Holiday Inn Express Ibis Bali Legian
Ngurah Rai Airport Ngurah Rai Airport Baruna Bali Street
QUICK FACTS
UPCOMING
HOTELS
2.3million 2,493rooms 57.9% USD 422 USD 244
The Westin Ubud Resort & Spa International Visitor Number of New Rooms Occupancy Average Daily Rate Revenue per Available
Renaissance Bali Uluwatu Resort & Spa Arrivals (YTD June 2016) 2016 (ADR) Room (RevPAR)
Mövenpick Resort & Spa Jimbaran Bay, Bali
Note: Bali Hotels refers to Luxury
Source: STR Global (YTD July 2016), Bali Government Tourism Office, JLL
ADR - Average daily rate, RevPAR - Revenue per available room
8 Hotel Destinations Asia Pacific
TOURISM DEMAND SUPPLY OUTLOOK
Bangkok received 19.4 million international Mainland China remains the biggest source Since the beginning of 2016, approximately With the expansion of Suvarnabhumi
visitors in 2015, representing a y-o-y market to Bangkok, followed by Japan, 1,027 rooms have been added to the Airport, expecting to increase the capacity
increase of 24.8%, as a result of the year’s South Korea and India. As at YTD April Bangkok market with another 969 rooms to 60 million from the current 45 million by
strong recovery from 2014’s political unrest 2016, Bangkok has seen a slight recovery estimated to enter the market by year-end. 2019, and the renovation of the existing
in the city. Record arrivals are expected in in Russian tourist arrivals, growing at 5.7% Over 40% of future supply for the next passenger terminal at Don Mueang Airport,
2016 as YTD April 2016 has seen tourist on the same period last year. However, the four years is concentrated in the upscale serving 12 million more passengers than
arrivals reaching 7.5 million, 12% up y-o-y, Russian market has not recovered to its segment. Key new projects include The the current 28 million, JLL expect Bangkok
which was however, prior to the recent historical high, and is still outside of the top Bangkok Edition Hotel by Ritz Carlton at market performance to grow as increasing
security concerns witnessed in the south 10 source markets to Bangkok ever since its Sathorn, Park Hyatt Central Embassy at arrivals is likely to be translated to lodging
during August. decline in 2015. Ploenchit, and Waldorf Astoria Bangkok at demand growth. However, the continued
Pathumwan. security issues in Thailand are taking a toll
on travellers’ confidence and could impact
the tourism industry negatively.
BANGKOK
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.
NEW NOTABLE HOTELS
NOTABLE
HOTEL DEALS
Hotel De’Moc
297 rooms
201 rooms
184rooms
Liberty Garden Hotel Saphankwai
Mövenpick Bangkok Red Planet Hotel Best Western
Sukhumvit 15 Surawong Wanda Hotel
QUICK FACTS
UPCOMING
7.5million 1,996rooms 73.2% THB 5,996 THB 4,387 HOTELS
International Visitor Number of New Rooms Occupancy Average Daily Rate Revenue per Available The Bangkok Edition hotel by Ritz Carlton
Arrivals (YTD April 2016) 2016 (ADR) Room (RevPAR) Park Hyatt Central Embassy
Waldorf Astoria Bangkok
Note: Bangkok Hotels refers to Luxury
Source: STR Global (YTD July 2016), Tourism Authority of Thailand, JLL
ADR - Average daily rate, RevPAR - Revenue per available room
Hotel Destinations Asia Pacific 9
TOURISM DEMAND SUPPLY OUTLOOK
As at YTD June 2016, international visitor Corporate and MICE demand still remain Beijing foresees a relatively slow hotel Improvements in trading performance of
arrivals to Beijing decreased by 1.2% y-o-y as the major demand drivers as Beijing is development phase due to slowing Beijing hotels is expected in the medium
to 1.9 million. Major source markets such the political commercial centre in Mainland macro economy. Investors are becoming term, as the city is gradually recovering
as Japan and Korea have seen contraction, China. As domestic travel continues to increasingly cautious on hotel investment from the loss of high-end government
declining at 5.6% and 6.0% respectively. grow, the number of leisure free individual and development. At present, there are demand due to the government’s austerity
On a brighter note, visitor growth from key travellers (FITs) with higher disposable approximately 40,000 rooms in Beijing measures, and tertiary industries are
international source markets including the incomes is increasing. market. As at YTD June 2016, only increasingly contributing to demand. Strict
USA and Europe have been positive. 226 rooms have entered the market. regulations have also been imposed on new
For H2 2016, approximately 760 rooms projects within the fourth ring area to limit
are expected to open. From 2017 onwards, the number of new hotel developments.
approximately 4,700 rooms will be added, Longer term, a gradual increase in supply
amounting to 10% of the total and expected improvements in demand is
existing supply. expected to strengthen trading performance.
BEIJING
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.
NEW NOTABLE HOTELS
NOTABLE
HOTEL DEALS
There were no hotel transactions in H1 2016
309rooms
Intercontinental
Beijing Sanlitun
QUICK FACTS
UPCOMING
HOTELS
1.9million 986rooms 68.8% RMB 1,020 RMB 701
Beijing Bulgari International Visitor Number of New Rooms Occupancy Average Daily Rate Revenue per Available
Mandarin Oriental Wangfujing Arrivals (YTD June 2016) 2016 (ADR) Room (RevPAR)
Hualuxe Beijing Xinan
Note: Beijing Hotels refers to Five-star.
Source: Beijing Tourism Bureau, STR Global (YTD July 2016), JLL
ADR - Average daily rate, RevPAR - Revenue per available room
10 Hotel Destinations Asia Pacific
TOURISM DEMAND SUPPLY OUTLOOK
In 2015, a total of 23 million visitor nights Mainland China remains the biggest source In H1 2016, the supply of short term Brisbane’s accommodation market has
were spent in Brisbane City. International market to Brisbane, followed by the United accommodation in the Brisbane City moderated since its trading highs prior
visitor nights accounted for 69.4% and Kingdom, Korea and the USA. In 2015, market increased by approximately to mid-2012. Notwithstanding, trading
domestic nights accounted for 30.6%. Chinese visitor nights in Brisbane City grew 686 rooms or an increase of approximately performance showed some signs of
Domestic visitor nights in Brisbane 23.7% y-o-y and have grown at an average 9.5% on the existing stock. Looking forward, stabilisation in 2014, boosted by the
decreased by 2.1% y-o-y however, annual rate of 15.4% over the last 10 years. we are aware of a further ten short term G20 summit in November. However, the
international visitor nights in Brisbane While leisure related demand remains the accommodation development currently subsequent demand growth during 2015
increased by 15.6%. primary purpose of visit, the education under construction and due for completion was outpaced by a significant increase in
segment grew by a reported 26.4% in 2015 between 2017 and 2018. If all projects hotel room supply resulting in softer trading
in Brisbane City. materialise, this will represent an increase of conditions overall.
2,049 rooms or 25.4% on the existing stock.
BRISBANE
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.
NEW NOTABLE HOTELS
NOTABLE
HOTEL DEALS
Tryp Fortitude Valley
368rooms
208rooms
110rooms
83
rooms
Ibis Styles Brisbane Rydges Fortitude Richmont Hotel Art Series Hotel
Valley by Mantra The Johnson
QUICK FACTS
UPCOMING
500,000 769rooms 73.2% AUD 168 AUD 123 HOTELS
International Visitor Number of New Occupancy Average Daily Rate (ADR) Revenue per Available Swiss Belhotel Brisbane
Arrivals (YTD June 2016) Rooms 2016 Room (RevPAR) Holiday Inn Express Brisbane Spring Hill
Emporium Hotel Southpoint
Calile Hotel Fortitude Valley
Note: Hotel supply within the Brisbane City Region.
Source: STR Global (YTD July 2016), Tourism Research Australia, JLL
ADR - Average daily rate, RevPAR - Revenue per available roomHotel Destinations Asia Pacific 11
TOURISM DEMAND SUPPLY OUTLOOK
Delhi has shown growth of 9% in Delhi reported an average occupancy of The Roseate House in the Delhi Aerocity The hospitality sector in Delhi has remained
international passenger arrivals during 65% in 2015, and the city has seen city-wide hospitality district is the most notable hotel resilient despite substantial supply additions
the period of January to July 2016 occupancy levels rise for two consecutive opening in 2016. Future supply in Delhi in the Delhi Aerocity district, with occupancy
from approximately 1.3 million during years, despite supply additions on a large remains fairly limited due to scarcity of land levels remaining high, however room rates
the corresponding period in 2015 to scale. This has been driven by growing and high land prices in the city and new were significantly impacted across the wider
approximately 1.43 million. Foreign arrivals corporate and MICE demand, and the supply will be largely concentrated in the market this year. With limited future supply
have also seen a steady rise due to the increased presence of low-cost air carriers. Delhi Aerocity hospitality district: The Andaz of hotel rooms, the demand outlook remains
e-visa facility introduced, which is now Demand is expected to remain strong over in Aerocity expected to open in the second strong with rising corporate and leisure
available to over 150 countries, boosting the next year. The newly developed Delhi half of 2016 and the Aloft Delhi Aerocity travellers continuing to drive long term room
leisure demand from foreign visitors. The Aerocity district has seen promising demand expected to open early next year. night demand in Delhi.
new visa improvements are relevant to levels with the availability of Grade A office
leisure tourism including visiting friends and space supported by 2,850 hotel rooms.
family, short duration medical treatment and
business visits.
DELHI
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.
NEW NOTABLE HOTELS
NOTABLE
HOTEL DEALS
There were no hotel transactions in H1 2016
216 rooms
Roseate House
New Delhi Aerocity
QUICK FACTS
UPCOMING
HOTELS
1.4million 216rooms 65% INR 6,177 INR 4,012
Aloft New Delhi Aerocity International Passenger Number of New Rooms Occupancy Average Daily Rate Revenue per Available
Hyatt Andaz Delhi Aerocity Arrivals (YTD July 2016) 2016 (ADR) Room (RevPAR)
Note: Delhi hotels refers to Luxury
Press Information Bureau, Ministry of Tourism
Source: Delhi Tourism Bureau, STR Global (YTD July 2016), JLL
ADR - Average daily rate, RevPAR - Revenue per available room12 Hotel Destinations Asia Pacific
TOURISM DEMAND SUPPLY OUTLOOK
During 2015, international arrivals to Hanoi Top source markets to Hanoi include Approximately 400 hotel rooms are The VNAT expects international arrivals to
reached an all-time high of 3.3 million visitor Mainland China, South Korea, Japan expected to re-enter the market with reach 3.8 million in 2016, translating to a
arrivals, showing sustained growth for six and the USA. As at YTD June 2016, the the rebranding of the Pan Pacific Hanoi 15.2% y-o-y growth. In addition to promoting
consecutive years. As at YTD June 2016, city received a 15.6% increase in tourism (formerly the Sofitel Plaza Hanoi) and the Hanoi’s popular sites, the government is
the city recorded an impressive growth in revenue over the same period last year. The Eastin Hotel Hanoi (formerly the Lakeside creating new attractions in the city including
international arrivals increasing by 39.3% Vietnam National Administration of Tourism Hotel) by the end of 2016. As at YTD June the introduction of a new walking street
y-o-y to 1.5 million arrivals. (VNAT) targets countries in Western Europe, 2016, a notable opening was the 151-room opening in 2017 and there are plans to build
Northeast Asia and North America, as well Novotel Suites Hanoi. Approximately 1,700 25 parks over the next five years. New air
as Australia as the potential source markets new three-star to five-star internationally routes including Dubai-Hanoi by Emirates
of the city. branded rooms are expected to enter the are expected to further facilitate the growth
market over the next three years. of international visitor arrivals to the city.
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.
NEW NOTABLE HOTELS
NOTABLE
HOTEL DEALS
Sedona Suites Hanoi
151 rooms
Novotel Suites Hanoi
QUICK FACTS
UPCOMING
1.5million 151rooms 76.4% USD 106 USD 81 HOTELS
International Visitor Number of New Rooms Occupancy Average Daily Rate Revenue per Available Mercure Hanoi
Arrivals (YTD June 2016) 2016 (ADR) Room (RevPAR) Novotel Hanoi Thai Ha
Somerset West Point Hanoi
Note: Hanoi Hotels refers to Marketwide.
Source: STR Global (YTD July 2016), Vietnam National Administration of Tourism, JLL
ADR - Average daily rate, RevPAR - Revenue per available roomHotel Destinations Asia Pacific 13
TOURISM DEMAND SUPPLY OUTLOOK
International arrivals to Ho Chi Minh City Top source markets to HCMC include During 2015, 804 new rooms were added to The Vietnam National Administration of
(HCMC) reached 4.7 million in 2015, Mainland China, South Korea, Japan and the HCMC market. Hotel supply is expected Tourism is targeting a continued growth in
registering a Compound Annual Growth the USA. As at YTD May 2016, tourism to grow further with the addition of 1,032 visitor numbers in 2016 with international
Rate (CAGR) of 11.0% between 2011 and revenue has increased 4.7% y-o-y. Source rooms throughout 2016. As at June 2016, arrivals expected to increase by 8.5% y-o-y
2015. As at YTD May 2016, international markets experiencing fast growth in the the notable opening was the 251-room Bay to 5.1 million arrivals. Improvements in
arrivals recorded a 13.5% y-o-y growth, number of visitors include South Korea, Hotel Ho Chi Minh. Approximately 2,500 quality of tourism products and services,
reaching 2.1 million arrivals. Japan, the USA and Canada. new rooms are anticipated to enter the training of human resources for the
market over the next three years. hospitality sector and encouragement
of river tourism have become the major
development plans of the government to
boost the city’s tourism industry.
HO CHI MINH CITY
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.
NEW NOTABLE HOTELS
NOTABLE
HOTEL DEALS
InterContinental Asiana Saigon
Duxton Hotel Saigon 251 rooms
Bay Hotel
Ho Chi Minh
QUICK FACTS
UPCOMING
HOTELS
2.1million 1,032rooms 66.8% USD 118 USD 79
Ascott Waterfront Saigon International Visitor Number of New Rooms Occupancy Average Daily Rate Revenue per Available
ibis Saigon Airport Arrivals (YTD May 2016) 2016 (ADR) Room (RevPAR)
Ritz-Carlton Saigon
Note: Ho Chi Minh City Hotels refers to Marketwide.
Source: STR Global (YTD July 2016), Vietnam National Administration of Tourism, JLL
ADR - Average daily rate, RevPAR - Revenue per available room14 Hotel Destinations Asia Pacific
TOURISM DEMAND SUPPLY OUTLOOK
Visitor arrivals to Hong Kong fell 7.4% Hong Kong is a major corporate and As at YTD July 2016, approximately Going forward, weakness in trading
y-o-y to 27.2 million as at YTD June 2016, meetings, incentives, conventions and 431 rooms have been added into the performance continues to dampen the
primarily due to the decline in visitors from exhibitions (MICE) hub and an established market, including Cruise Hotel, Metro market outlook in the short to medium
its top source market, Mainland China. tourist destination. The Hong Kong Winner Hotel, and Eco Tree Hotel. An term. Various factors such as currency
Mainland Chinese visitors dipped by 10.6% Convention and Exhibition Centre and additional 2,088 rooms are expected to depreciation of other major tourist markets
y-o-y to 20.4 million arrivals, which can be AsiaWorld-Expo have once again been enter the market in the months to come in as well as the socio-political tension with
attributed to the depreciation of the Chinese awarded as the top three ‘Best Convention 2016, most of which are small-to-mid-sized Mainland China have put a damper on the
Renminbi and Hong Kong’s local tension and Exhibition Centre’ in the CEI Asia properties under 100 rooms. city’s short to medium outlook. However,
towards Mainland China. On a brighter note, Industry Awards in 2015. Tourist attractions we are cautiously optimistic that hotel
short haul markets (excluding Mainland are also being enhanced in Hong Kong. The performance is likely to stabilise over the
China) recorded a growth of 4.9% y-o-y, Ocean Park is developing an all-weather medium to long run, as Hong Kong has
while long haul markets sustained a growth indoor and outdoor waterpark which is proven itself to be a resilient city on the
of 2.4% y-o-y during the same period. expected to be completed in H2 2018. back of its multi-faceted appeal for leisure,
corporate as well as MICE-related demand.
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.
NEW NOTABLE HOTELS
NOTABLE
HOTEL DEALS
There were no hotel transactions in H1 2016
161rooms
90
rooms
85
rooms
38
rooms
32
rooms
Cruise Hotel Metro Winner Hotel Eco Tree Hotel Madera Hollywood The Olympian Hotel
Hong Kong
QUICK FACTS
UPCOMING
27.1million 2,519rooms 74.7% HKD 3,341 HKD 2,496 HOTELS
International Visitor Number of New Rooms Occupancy Average Daily Rate Revenue per Available Kerry Hotel by Shangri-La
Arrivals (YTD June 2016) 2016 (ADR) Room (RevPAR) i Hotel (Kowloon South)
Hilton Garden Inn
Hotel 108 (by Onyx)
Note: Hong Kong hotels refers to luxury
Source: Hong Kong Tourism Bureau, STR Global (YTD July 2016), JLL Rosewood Hong Kong
ADR - Average daily rate, RevPAR - Revenue per available roomHotel Destinations Asia Pacific 15
TOURISM DEMAND SUPPLY OUTLOOK
As at YTD June 2016, international visitor Jakarta remains a key business gateway Major hotel openings as at YTD July 2016 Indonesia’s visa exemption policy has been
arrivals to Jakarta were recorded at 1.0 in Indonesia and a major corporate comprised international brands including extended to a total of 169 countries as at
million, registering a marginal decline of destination. The capital city of Indonesia the 119-room Days Hotel & Suites Jakarta March 2016, which will increase the ease of
1.5% y-o-y. Visitor arrivals were affected will continue to attract both international Airport, the 121-room Four Points by accessibility to the country. Indonesia aims
by the bombing attacks in the Indonesian and domestic corporate demand to the Sheraton Jakarta, Thamrin, the 125-room to attract 12 million tourists to the country in
capital, Jakarta in January 2016, which city. However, concerns over terrorism and Four Seasons Hotel Jakarta and the 207- 2016 and is adopting a “single destination,
resulted in an overall decline in visitation as overall regional and global market volatility room Mercure Cikini. Moving ahead, several single management” concept to develop ten
at YTD June 2016. However, visitor arrivals may affect demand to the capital city. The new international brands will be introduced priority tourist destinations. While the new
picked up in April 2016, showing a 17.8% top three source markets to Jakarta were in the next few years, including luxury hotel supply of upcoming hotels will add to the
y-o-y growth during the month but dipped by regional countries, namely, Mainland China, brands such as Park Hyatt, Waldorf Astoria, diversity of Jakarta’s hotel landscape, the
13.4% y-o-y in June 2016 due to the fasting Malaysia and Singapore as at YTD St. Regis and upscale / midscale brands, for significant supply additions totalling over
month of Ramadan. March 2016. instance, Indigo and Radisson Red. 11,000 rooms from 2016 to 2021.
J A K A RTA
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.
NEW NOTABLE HOTELS
NOTABLE
HOTEL DEALS
There were no hotel transactions in H1 2016
207rooms
125rooms
121
rooms
119
rooms
Mercure Jakarta Four Seasons Hotel Four Points by Sheraton Days Hotel & Suites
Cikini Jakarta Jakarta, Thamrin Jakarta Airport
QUICK FACTS
UPCOMING
HOTELS
1million 1,506rooms 49.5% USD 167 USD 83
The Westin Jakarta International Visitor Number of New Rooms Occupancy Average Daily Rate Revenue per Available
Holiday Inn Hotel & Suites Jakarta Arrivals (YTD June 2016) 2016 (ADR) Room (RevPAR)
Gajah Mada
Waldorf Astoria Jakarta
JW Marriott Jakarta Kemang Village Note: Jakarta Hotels refers to Five-star
Source: Jakarta Tourism Bureau, STR Global (YTD July 2016), JLL
ADR - Average daily rate, RevPAR - Revenue per available room16 Hotel Destinations Asia Pacific
TOURISM DEMAND SUPPLY OUTLOOK
According to Tourism Malaysia, international Kuala Lumpur is predominantly a corporate There is a significant amount of new In the short to medium term, Kuala Lumpur
visitor arrivals into Malaysia reached 25.7 market with strong weekday business, supply coming up in the Kuala Lumpur. could face an oversupply of new hotel
million in 2015, down by 6.3% compared to but relatively limited leisure demand and JLL estimates that there are approximately rooms although the Malaysian government
2014. As at YTD March 2016, international lower weekend occupancy. The major 7,600 hotel rooms and 4,000 serviced remains committed to promoting the city as
visitor arrivals to Malaysia were up by 1.4% leisure business comprises tour groups apartment units in the pipeline expected a key Meetings, Incentives, Conventions
y-o-y to 6.6 million, mainly as a result of from Mainland China and the Middle East. between 2016 and 2020. Recent openings and Exhibitions (MICE) destination, which
the return of Mainland Chinese visitors. Demand from Mainland China has started in the market include the 208-room St Regis is expected to drive inbound corporate
The slowdown in 2015 can be attributed to to return to Kuala Lumpur, and as at YTD Hotel in KL Sentral, and the 160-apartment demand over the coming years. In
several reasons including street protests in March 2016, visitor arrivals from Mainland St Regis Residences, which opened in June February 2016, the Kuala Lumpur City Hall
late August 2015 and the regional economic China were up by 35.2% y-o-y. Singapore 2016, the 383-room Holiday Inn Express implemented a moratorium to limit new hotel
slowdown, exacerbated by a weakness remains the top source market to Malaysia Kuala Lumpur City Centre as well as the developments, which will help to manage
in the oil and gas industry, which is a key and enjoyed a marginal growth of completion of a comprehensive renovation the supply pipeline and have a positive
industry in Malaysia. 0.5% y-o-y. of the 364-room Ritz-Carlton. impact on the Kuala Lumpur market in
the long term.
KUALA LUMPUR
Kuala 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.
NEW NOTABLE HOTELS
NOTABLE
HOTEL DEALS
Sky Express Hotel Bukit Bintang
383 rooms
296
apartments
247rooms
208rooms
160
apartments
Aloft Kuala Lumpur Sentral
Holiday Inn Express Kuala The Ritz-Carlton Oasia Suites Kuala The St Regis Residences
Lumpur City Centre Residences Lumpur The St Regis Hotel
QUICK FACTS
UPCOMING
6.6million 2,798rooms 64.6% MYR 497 MYR 321 HOTELS
International Visitor Number of New Rooms Occupancy Average Daily Rate Revenue per Available W Kuala Lumpur
Arrivals (YTD March 2016 (ADR) Room (RevPAR) Four Seasons Place
2016) The RuMa Hotel & Residences
Royale Pavilion Hotel
Note: Kuala Lumpur Hotels refers to Luxury & Upscale
Source: Kuala Lumpur Tourism Bureau, STR Global (YTD July 2016), JLL Banyan Tree Signatures
ADR - Average daily rate, RevPAR - Revenue per available roomHotel Destinations Asia Pacific 17
TOURISM DEMAND SUPPLY OUTLOOK
As at YTD June 2016, international visitor Gaming is the major driver for demand in As at YTD June 2016, total hotel rooms in Macau’s economy has mainly been driven
arrivals to Macau increased marginally by Macau. As at YTD July 2016, gaming gross Macau amounted to 32,972 hotel rooms. by the gaming sector for the past decade.
0.1% y-o-y to 14.8 million arrivals. Mainland revenue fell by -10.5% y-o-y, despite the According to the Macau Government However, as gaming revenue continues to
China continues to be Macau’s largest easing of visa requirements for Mainland Tourism Office, 723 new rooms were shrink, as evident from the recent statistics,
source market, accounting for 66% of the Chinese transit visitors. The crackdown added to the market as at YTD June 2016, casino operators are keen to diversify
total visitor arrivals, followed by Hong Kong on corruption and competition from other accounting for less than 3% of existing into other non-gaming sectors including
(21%), both of which have experienced gaming destinations may have contributed supply. However, there are two major hotel meetings and entertainment. To attract more
declines of -0.4% y-o-y and -3.1% y-o-y to the continuous decline in gaming revenue openings in H2 2016. The 1,700-room visitors, the government is also improving
respectively. However, all other top source for Macau’s gaming industry. Wynn Palace opened in August 2016 and infrastructure including the development of
markets showed improvements in visitation the 3,000-room Parisian Macau opening in the Taipa Ferry Terminal, the Macau Light
during this period. In Q1 2016, Mainlanders’ September 2016, both of which are located Rapid Transit and the development of a
spending fell -18.1% y-o-y, contributing on the Cotai Strip in Macau. large scale integrated development zone
largely to the decline in total traveller with strong finance, technology, and leisure
spending at -14.2%. generators on Hengqin Island.
MACAU
Take 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.
NEW NOTABLE HOTELS
NOTABLE
HOTEL DEALS
There were no hotel transactions in H1 2016
3,000 rooms
1,700 rooms
The Parisian Wynn Palace
QUICK FACTS
UPCOMING
HOTELS
14.8million 6,443rooms 83.4% MOP 1,443 MOP 1,204
Roosevelt Hotel Macau International Visitor Number of New Rooms Occupancy Average Daily Rate Revenue per Available
MGM Cotai Resort Arrivals (YTD June 2016) 2016 (ADR) Room (RevPAR)
Grand Lisboa Palace Hotel
Palazzo Versace Macau
Karl Lagerfeld Hotel Note: Macau Hotels refers to Marketwide.
Source: Macao Government Tourism Office, Gaming Inspection and Coordination Bureau Macau, STR Global (YTD July 2016), JLL
ADR - Average daily rate, RevPAR - Revenue per available room18 Hotel Destinations Asia Pacific
TOURISM DEMAND SUPPLY OUTLOOK
Despite geopolitical pressures and volatility While international visitor arrivals from the Four new resorts have opened in the The Maldives will continue to rely heavily
in the global economy as well as decreasing top source market, Mainland China, were Maldives so far in 2016, adding 441 rooms on tourism and the government is aiming
demand from major source markets, down by 11.4% y-o-y as at YTD June 2016, to supply. This includes the upscale Amari to increase international visitor arrivals to
international visitor arrivals to the Maldives it still made up 25.4% of total visitors arrivals Havodda (120 rooms) which is in the Gaafu 1.6 million by 2017 and potentially to 2.5
have proved resilient and as at YTD June to the Maldives. The overall growth in visitor Dhaalu Atoll, an approximately 55 minute million by 2021. Greater focus will be placed
2016 were up by 1.8% y-o-y to reach 0.6 arrivals has been supported by increasing domestic flight from Male, the upscale on growing tourist arrivals from the Asia
million. Tourism remains a major contributor arrivals from several of the top ten source Furaveri Island Resort & Spa (105 rooms) Pacific region, especially from the growing
to the Maldivian economy, contributing 23% markets, notably India (+18.8%), the United in the Raa Atoll, the luxury 126-room Amilla economies of Mainland China, India and
to Gross Domestic Product (GDP) in 2015. Kingdom (+10.3%) and Japan (+9.8%). Finolhu in the UNESCO world biosphere Southeast Asia. New flight routes and
International visitor arrivals also increased of Baa Atoll and OZEN by Atmosphere (90 the opening of more resorts will make the
from the USA (+7.0%), Italy (+5.9%), rooms), a luxury all-inclusive property in the Maldives more attractive to a wider market
Germany (+4.0%) and Russia (+1.2%). South Male Atoll. and help to support further growth in tourism
numbers.
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.
NEW NOTABLE HOTELS
NOTABLE
HOTEL DEALS
Kuda Rah
126rooms
120rooms
105 rooms
90
rooms
Zitahli Kuda Funafaru
Gaakoshibee Island Maldives
Amilla Finolhu Amari Havodda Furaveri Island OZEN by Atmosphere
Resort & Spa
QUICK FACTS
UPCOMING
620,000 586rooms 58.5% USD 1,441 USD 843 HOTELS
International Visitor Number of New Rooms Occupancy Average Daily Rate Revenue per Available Hurawalhi Resort & Spa
Arrivals (YTD June 2016) 2016 (ADR) Room (RevPAR) The Residences Maldives at Dhigurah
St Regis Vommuli
Kanuhura Resort & Spa
Note: Maldives Hotels refers to Luxury.
Source: Maldives Tourism Bureau, STR Global (YTD July 2016), JLL Radisson Blu Maldives Hulhumale
ADR - Average daily rate, RevPAR - Revenue per available roomHotel Destinations Asia Pacific 19
TOURISM DEMAND SUPPLY OUTLOOK
International visitor arrivals to the Philippines Between January and May 2016, total The supply pipeline in Manila is expected to The city’s attractiveness to both the
reached 2.5 million as at YTD May 2016, earnings from tourism activities amounted show significant growth with an estimated corporate and leisure markets combined
an increase of 13.0% y-o-y. Consistent to around PHP 106.6 billion, an increase of 7,700 hotel rooms due to open up until with the government’s proactive marketing
monthly growth has been seen in 2016 in 13.5% y-o-y. The major source markets for 2020. The bulk of this new supply is planned of the Philippines through its tagline “It’s
the Philippines, with the country enjoying international visitor arrivals to the Philippines for the Manila Bay area where several more fun in the Philippines” and the “Visit
monthly double digit y-o-y increases which are South Korea, which comprises 22.9% integrated resorts are being developed and the Philippines again 2016” campaign
peaked in February at 549,725 visitors, of total visitor arrivals, the USA (15%) and the existing resorts expanded to attract should support further growth in tourism
up 20.4% over the same period in 2015. Mainland China (11.3%). more guests. Recent openings in Manila and the hotel sector going forward. The
Regionally, East Asia provides the bulk of include the 576-room Shangri-La at the continuing development of the integrated
arrivals to the Philippines, followed by North Fort Manila which began operations in casino resorts in Manila Bay and the Pasay
America and ASEAN countries. March 2016, the Conrad Manila, a 347- area are attracting a new source of regional
room hotel located in the heart of the Mall leisure demand and helping to transform the
of Asia complex in Manila Bay and the local tourism industry.
150-apartment Somerset Alabang Manila.
MANILA
In 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.
NEW NOTABLE HOTELS
NOTABLE
HOTEL DEALS
There were no hotel transactions in H1 2016
576rooms
518 401 rooms
347rooms
Shangri-La at the Fort Hotel 101-Manila Novotel Araneta Conrad Manila
Manila
QUICK FACTS
UPCOMING
HOTELS
2.5million 3,612rooms 68.5% PHP 5,347 PHP 3,665
Grand Hyatt Manila International Visitor Number of New Rooms Occupancy Average Daily Rate Revenue per Available
Citadines Millennium Ortigas Arrivals (YTD May 2016) 2016 (ADR) Room (RevPAR)
Mövenpick Hotel Makati
Marriott Hotel West Wing
Note: Manila Hotels refers to Marketwide
Sheraton Hotel Manila Source: Manila Tourism Bureau, STR Global (YTD July 2016), JLL
ADR - Average daily rate, RevPAR - Revenue per available roomYou can also read
