Hotel Destinations Asia Pacific - Hotels & Hospitality Group May 2017

 
 
Hotel Destinations Asia Pacific - Hotels & Hospitality Group May 2017
Hotels & Hospitality Group | May 2017


Hotel Destinations
Asia Pacific
Hotel Destinations Asia Pacific - Hotels & Hospitality Group May 2017
1        Hotel Destinations – Asia Pacific




    Auckland
    Quick Facts
                                                                                               OCC            ADR               RevPAR
    International Visitor Arrivals (NZ 2016)   Number of New Rooms (2017)
                                                                                               86.6%          NZD 191           NZD 166
    3.5 million                                663 rooms




                                               Tourism                                             Demand
New notable hotels                             Auckland International Airport, which is the       Auckland reported an average occupancy
                                               ‘gateway’ for Auckland and New Zealand             level of 86.6% for the period year ending
Jet Inn Extension,                             overseas visitors, has experienced strong          March 2017, the highest occupancy level on
Auckland International Airport                 growth. For the period YTD December                record in over 20 years. Auckland’s market
60 rooms                                       2016, total passenger movements have               occupancy has risen every year since 2010,
                                               increased 12% with an increase recorded in         after reaching a post-GFC low of 69.5% in
Swiss-Belsuites Victoria Park                  domestic passenger movements, up 12.5%             2009. FIT and Corporate business dominate
40 rooms                                       and international passengers increasing            the business mix of Auckland hotels
                                               by 11.5%. International visitor arrivals to        contributing 47.5% and 20.5% of hotel guest
                                               New Zealand reached 3.5 million for the            nights respectively, y-o-y to March 2017.
                                               period year ending February 2017, a 10.7%          International sourced guests accounted for
Upcoming hotels                                improvement over the corresponding prior           45% of guest nights sold, while domestic
                                               year period.                                       guests accounted for 55%.
SKYCITY Hobson Street Hotel
Four Points by Sheraton
Park Hyatt Auckland
M Social Auckland (former Copthorne
Hotel Auckland Harbourcity)
The Sebel Auckland Manukau
                                               Supply                                              Outlook
                                               Seven projects (comprising a total of 1,291        We anticipate that Auckland’s
                                               rooms) are currently under construction            accommodation market will continue to
Notable hotel deals                            and are forecast to enter the market over          perform strongly in the short term and is
                                               the next two years, with five of the hotel         poised for further rate growth and to solidify
Ibis Christchurch                              projects (818 rooms) comprising 5-star             recent gains in occupancy levels given the
                                               product. The seven new hotel projects              current capacity constraints, although
Novotel Christchurch                           represent an approximate 20% increase in           ultimately the ‘wave’ of new supply is likely
                                               room supply, which is an unprecedented             to ease capacity constraints in the medium
                                               level of stock. However, as the room               term (between 2018 – 2019). Beyond the
                                               supply is expected to enter the market in a        short term some caution is warranted as
                                               staggered manner (over a two to three-year         the market begins to absorb the forecast
                                               period), this should alleviate some concerns       significant levels of room supply, which
                                               of an oversupply shock.                            ultimately is expected to soften the current
                                                                                                  historic high occupancies (above 80%)
                                                                                                  with levels likely to revert in the medium to
                                                                                                  longer term to the mid-70% range.




                                               Note: Auckland Hotels refer to Marketwide
                                               Source: Tourism Industry Association, Statistics New Zealand, JLL
                                               ADR – Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations Asia Pacific - Hotels & Hospitality Group May 2017
Hotel Destinations – Asia Pacific       2




Bali
 Quick Facts
                                                                                                   OCC         ADR            RevPAR
 International Visitor Arrivals (2016)               Number of New Rooms (2017)
                                                                                                   66.4%       USD 146        USD 97
 4.9 million                                         3,892 rooms




Tourism                                             Demand
Total visitor arrivals were 4.9 million in         As of YTD March 2017, Mainland China was            New notable hotels
2016, representing an increase of 22.5%            Bali’s largest source marketing, contributing
compared to 2015. As of YTD March 2017,            29.6% of total visitor arrivals. This is            Mövenpick Resort & Spa Jimbaran
international visitor arrivals continued           followed by Australia contributing 19.8%
an upward trend, increasing 22% y-o-y to           of total visitor arrivals. Mainland China           Wyndham Resort Tamansari Jivva
reach 1.3 million visitors. For the full year      saw the largest y-o-y increase of 58.6%,            Sthala Ubud Bali
2017, the Bali Provincial Tourism Agency           underscoring the burgeoning Chinese travel
is targeting approximately 40% of the              demand in Asia. Despite travel advisories,          Sol House Legian
targeted 15 million foreign tourist arrivals to    most key source markets recorded strong
Indonesia in 2017, which is approximately          growth in YTD March 2017, suggesting that
six million foreign tourists. Strong growth in     foreign tourists are largely unfazed and
arrivals can be attributed to the extension        are increasingly drawn to Bali as premier           Upcoming hotels
of the visa waiver programme in 2015, as           tourism destination.
well as the improvement in air connectivity                                                            Kempinski Nusa Dua
to key source markets such as Greater China                                                            Fairfield by Marriott Bali Legian
and Australia.
                                                                                                       The Westin Ubud Resort & Spa
                                                                                                       Six Senses Bali

Supply                                              Outlook
Approximately 1,737 rooms opened in                Looking forward, visitor arrivals from key
                                                                                                       Notable hotel deals
2016, representing a 9.8% y-o-y increment.         source markets are expected to continue             There were no hotel transactions
Recent major openings in 2016 include              rising. Recent improvements in air
                                                                                                       in H2 2016
the 136-room Sol House Legian, the 222-            connectivity from Ngurah Rai International
room Wyndham Resort Tamansari Jivva,               Airport with new flight routes, ongoing
the 143-room Sthala Ubud Bali and 297-             improvements in airport accessibility, and
room Mövenpick Resort & Spa Jimbaran.              the extension of visa waiver programme
In 2017, approximately 3,892 rooms                 should fuel the continued spike in foreign
are in the pipeline. Majority of the new           tourism demand in Bali. Moreover, the
supply in clustered in the luxury sector           recent corporation between Indonesia and
(44.3%) followed by the upscale sector             Chinese tourism authorities should provide
(34.2%). In terms of location, most will be        an added boost to Indonesia’s overall
concentrated in the Nusa Dua and Uluwatu           tourism sector.
areas. However, it is not unusual for several
projects to be postponed or cancelled due
to financing difficulties.




Note: Bali Hotels refers to Upscale
Source: STR Global (YTD March 2017), Bali Government Tourism Office, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations Asia Pacific - Hotels & Hospitality Group May 2017
3        Hotel Destinations – Asia Pacific




    Bangkok
    Quick Facts
                                                                                               OCC        ADR                  RevPAR
    International Visitor Arrivals (2016)    Number of New Rooms (2017)
                                                                                               86.4% THB 3,453 THB 2,983
    20.8 million                             2,876 rooms




                                              Tourism                                             Demand
New notable hotels                            Bangkok received 20.8 million international        Mainland China remains the biggest source
                                              visitors in 2016, representing an increase of      market to Bangkok, followed by Japan,
Ibis Bangkok IMPACT                           7.5% y-o-y, as Bangkok continues to be a           India and South Korea. Bangkok has seen
587 rooms                                     top global destination after its resurgence        a slowdown in growth in visitor arrivals
                                              in 2015 from the prior year’s 2014 political       from Mainland China to 5.9% growth y-o-y
Grande Centre Point Sukhumvit 55              unrest. The passing of His Majesty King            in 2016 from 82.5% growth y-o-y in 2015.
442 rooms                                     Bhumibol Adulyadej resulted in a minor             This comes as the government launched
                                              dip in arrivals which recovered quickly as         a crackdown on zero-dollar tours in
ibis Styles Bangkok Sukhumvit 50
                                              businesses return to usual. Record arrivals        September, leading a q-o-q drop in Chinese
171 rooms                                     are expected in 2017 as early-year airport         arrivals. Key markets which experienced
                                              statistics are already indicating growth.          strong growth include USA (12.7%), Middle
                                                                                                 Eastern countries (11.1%) and India (8.2%).
Upcoming hotels
The Bangkok EDITION by Ritz Carlton
Park Hyatt Bangkok
Lancaster Bangkok

                                              Supply                                              Outlook
Notable hotel deals                           Since the beginning of 2017, approximately         Bangkok will continue to see strong growth
                                              800 rooms have been added to the Bangkok           in visitor arrivals with ongoing airport
Swissotel Nai Lert Park
                                              market with another 2,100 rooms estimated          expansions to increase capacity from 45
                                              to enter the market by year-end. Over 35%          million to 60 million for Suvarnabhumi
                                              of future supply over the next four years is       Airport, and from 28 million to 40 million
                                              concentrated in the upscale segment. Key           for Don Mueang Airport. Higher airport
                                              new projects include ibis Styles Bangkok           capacities are expected to translate to
                                              Sukhumvit 50, Grande Centre Point                  lodging demand and absorb the oncoming
                                              Sukhumvit 55, and ibis Bangkok IMPACT on           room supply.
                                              Chaengwattana Road.




                                              Note: Bangkok Hotels refers to Upscale
                                              Source: STR Global (YTD March 2017), Tourism Authority of Thailand,
                                              Ministry of Tourism and Sports Thailand, JLL
                                              ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations Asia Pacific - Hotels & Hospitality Group May 2017
Hotel Destinations – Asia Pacific       4




Beijing
 Quick Facts
                                                                                                  OCC         ADR             RevPAR
 International Visitor Arrivals (2016)             Number of New Rooms (2017)
                                                                                                  66.1%       RMB 559         RMB 389
 4.2 million                                       1,479 rooms




Tourism                                             Demand
Data from Beijing’s Tourism Bureau show            Beijing’s hotel demand is driven by business       New notable hotels
the city’s international arrivals dropped          travel as well as the tourism and MICE
0.8% y-o-y to 4.2 million at the end of            (Meetings, Incentives, Conferences and             Grand Metropark Hotel Beijing
2016. Visitors from South Korea and Japan          Exhibitions) travel segments. Corporate            427 rooms
decreased 8.8% and 4.0% respectively, due          demand remains the major demand driver.
to their slower economy and economic               As Beijing is the political and commercial         Grand Metropark Longxi
environment. French and German travelers           centre in Mainland China, a large number of        Conference Center
have also trended downwards by 12.3%               corporates have set up their headquarters          346 rooms
and 2.9% respectively. The recent fall in          in Beijing, generating considerable business
the euro has led to a decline on business          demand.                                            InterContinental Beijing Sanlitun
activities with Beijing’s long haul trading                                                           300 rooms
partners.                                                                                             Tylfull Hotel
                                                                                                      226 rooms
                                                                                                      Chao Clubhouse
                                                                                                      180 rooms



Supply                                              Outlook                                           Upcoming hotels
                                                                                                      Beijing Bvlgari Hotel
Just five new hotels opened in Beijing             The Beijing market will benefit from
in 2016, adding 1,479 rooms to the                 enhanced intercity transportation and              Mandarin Oriental Beijing
market. High-profile openings included             tourism infrastructure development                 Hualuxe Beijing Xinan Hotel
Intercontinental Beijing Sanlitun and Chao         underway. Ahead of the opening of
Clubhouse, both of which are located in            Universal Studios in 2020 and the 2022             The Puxuan Hotel and Spa
Sanlitun. Strict development restrictions          Winter Olympics in Beijing and Zhangjiakou,
                                                                                                      Muji Hotel Beijing
within the city centre are expected                several infrastructure upgrades in and
to continue to restrain future supply.             around the city will support the hotel
Compared with Shanghai, where round 26             sector, including two new highways linking
new hotels are expected to enter the market        Beijing to nearby tourism destinations, such
in 2017, just nine new hotels (2,204 rooms)        as Chongli, Yanqing, and Qinhuangdao.
                                                                                                      Notable hotel deals
are planned for Beijing.                                                                              Somerset ZhongGuanCun Beijing




Note: Beijing refers to Four Star hotels
Source: STR Global (YTD March 2017), Beijing’s Tourism Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations Asia Pacific - Hotels & Hospitality Group May 2017
5        Hotel Destinations – Asia Pacific




    Brisbane
    Quick Facts
                                                                                              OCC          ADR                RevPAR
    International Visitor Arrivals (2016)    Number of New Rooms (2017)
                                                                                              71.5%        AUD 152            AUD 109
    935,000                                  207 rooms




                                             Tourism                                             Demand
New notable hotels                           In 2016, a total of 23.1 million visitor           Mainland China remains the biggest source
                                             nights were spent in Brisbane City.                market to Brisbane, followed by Korea,
Holiday Inn Express Hotel                    International visitor nights accounted for         Taiwan and the United Kingdom. In 2016,
226 rooms                                    67.9% and domestic nights accounted                Chinese visitor nights in Brisbane City
                                             for 32.1%. Domestic visitor nights in              grew 14.7% year-on-year and has grown
Swiss Belhotel Brisbane                      Brisbane increased by 5.3% y-o-y however           at an average annual rate of 25.2% over
134 rooms                                    international visitor nights in Brisbane           the last 10 years. While leisure related
                                             decreased moderately by 1.6%.                      demand remains the primary purpose of
Sage Hotel James Street
                                                                                                visit, the employment segment increased
93 rooms                                                                                        significantly during 2016 in Brisbane City.
Art Series Hotel - The Johnson
83 rooms



Upcoming hotels
W Hotel Brisbane
Southpoint Emporium Hotel
Adina on George Street
                                             Supply                                              Outlook
Westin Hotel Brisbane                        New supply over the second half of 2016            In the short to medium term, conditions are
                                             in the Brisbane City market increased by           likely to remain stagnant as further supply
                                             approximately 217 rooms or an increase of          enters the market. Any notable uplift in
                                             approximately 2% on the existing stock. So         performance will also be dependent on
Notable hotel deals                          far in 2017, two hotels have opened being          the extent of recovery in the corporate
                                             the Sage Hotel James Street and the Holiday        and conference segment as well as
Jephson Hotel                                Inn Express Brisbane Central. Looking              growth in the leisure segment. Resource
                                             forward we are aware of a further six short        sector demand may improve over the
                                             term accommodation development current             medium term with renewed investment in
                                             under construction and due for completion          mining infrastructure projects, however
                                             between 2017 and 2019. If all projects             a timeframe on these potential trends
                                             materialise, this will represent an increase       remains unclear.
                                             of 1,376 rooms or 12% on the existing stock.




                                             Note: Hotel supply within the Brisbane City Region
                                             Source: STR Global (YTD March 2017), Tourism Research Australia (2016), JLL
                                             ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations Asia Pacific - Hotels & Hospitality Group May 2017
Hotel Destinations – Asia Pacific    6




Delhi
 Quick Facts
                                                                                                    OCC        ADR            RevPAR
 International Passenger Traffic (India 2016)            Number of New Rooms (2017)
                                                                                                    83.1%      INR 5,660 INR 4,702
 8.9 million                                             540 rooms




Tourism                                             Demand
Delhi has shown growth of 10.1% in                 In 2016, Delhi witnessed continued growth            New notable hotels
international passenger arrivals YTD               in demand– largely driven by growing
February 2017 from approximately 2.5               MICE and corporate demand, in addition               Andaz Delhi
million to 2.8 million. Foreign arrivals have      to improved spending capacity and the                401 rooms
recorded noticeable rises after the e-visa         increased presence of low-cost air carriers.
facility was introduced, now available             The newly developed Delhi Aerocity                   Muse Sarovar Portico
to over 150 countries, boosting leisure            hospitality district with over 3,200 hotel           73 rooms
demand from foreign visitors. The new              rooms, extensive banqueting space and the
visa improvements are relevant to leisure          presence of significant Grade A office space,
tourism including visiting friends and             has seen promising demand levels.
family, short duration medical treatment                                                                Upcoming hotels
and business visits.
                                                                                                        Aloft New Delhi Aerocity
                                                                                                        Holiday Inn Express & Suites Delhi



                                                                                                        Notable hotel deals
Supply                                              Outlook                                             There were no hotel Transactions
                                                                                                        in H2 2016
Andaz Delhi and the Roseate House in the           The Delhi hospitality market has remained
Aerocity hospitality district have been the        resilient, despite the largest supply increase
most notable hotel openings recently.              that the city has seen in the recent past
Future supply in Delhi remains fairly              - in the form of the Aerocity hospitality
limited due to scarcity of land and high           district. While ADR levels have seen some
land prices in the city and new supply will        softening due to a large volume of supply
be largely concentrated to the Aerocity            in the Midscale to Upper Upscale segments,
hospitality district. The Aerocity has been        demand levels have remained strong. With
a key hospitality district as its strategic        hotel supply slowing and growing demand,
positioning has enabled Aerocity to absorb         Delhi continues to present investors with
commercial, transit arrival and MICE               a strategic entry into the gateway of the
demand from both the Delhi and Gurgaon             country.
micro-markets. The Oberoi New Delhi will
be closed effective from April 1, 2016, for
major renovation and will reopen April 1 in
2018.




Note: Delhi Hotels refers to Delhi Deluxe
Source: STR Global (YTD March 2017), Airports Authority of India, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations Asia Pacific - Hotels & Hospitality Group May 2017
7        Hotel Destinations – Asia Pacific




    Hanoi
    Quick Facts
                                                                                              OCC           ADR              RevPAR
    International Visitor Arrivals (2016)    Number of New Rooms (2017)
                                                                                              85.2%         USD 113          USD 96
    4.0 million                              843 rooms




                                             Tourism                                             Demand
New notable hotels                           In 2016, Hanoi saw four million international      Top source markets to Vietnam include
                                             visitor arrivals, up an impressive 21.2%           Mainland China, South Korea, Japan and
Novotel Suites Hanoi                         y-o-y, and exceeding Vietnam National              the USA. While continuing its promotional
151 rooms                                    Administration of Tourism’s (VNAT) initial         efforts in Japan, Hanoi also aims to expand
                                             expectations of 3.8 million. This represents       its market in Russia and France through
                                             a five-year Combined Annual Growth Rate            cooperation with international agencies and
                                             (CAGR) of 16.1% from 2011 to 2016. As of           diplomatic representatives. In its tourism
Upcoming hotels                              March 2017, the city has seen six million          drive, Hanoi will position itself as a cultural
                                             visitors, a 7% y-o-y growth, of which over         destination for its food culture and well-
Novotel Ciputra Hanoi                        one million are international visitors.            preserved relic sites.
Novotel Hanoi Thai Ha
Somerset West Point Hanoi



Notable hotel deals
There were no hotel transactions
in H2 2016
                                             Supply                                              Outlook
                                             In 2016, just over 200 new rooms were              The VNAT continues to strongly market
                                             added to the Hanoi hotel market in addition        Hanoi as a cultural destination through an
                                             to rebranded supply, however 2017 expects          advertising campaign with CNN across its
                                             to see a much larger addition with over 800        international network. The campaign will
                                             branded hotel rooms to enter the market            run on both CNN’s on air and online media
                                             by year-end. A further 2,000 rooms will be         from 2017 to 2018. In addition to ongoing
                                             launched by 2020. Between 2017 and 2020,           initiatives within Hanoi, to further enhance
                                             almost 60% of new room supply or 1,700             its tourism offerings, Hanoi looks to link its
                                             rooms will be in the luxury segment.               tourism coordination with other northern
                                                                                                localities to lengthen international length
                                                                                                of stay. With VNAT’s initiatives expected
                                                                                                to drive the increase in visitor arrivals the
                                                                                                outlook for the market remains positive.




                                             Note: Hanoi hotels refers to Marketwide
                                             Source: STR Global (YTD March 2017), Vietnam National Administration of Tourism, JLL
                                             ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations Asia Pacific - Hotels & Hospitality Group May 2017
Hotel Destinations – Asia Pacific     8




Ho Chi Minh City
 Quick Facts
                                                                                                   OCC         ADR              RevPAR
 International Visitor Arrivals (2016)                    Number of New Rooms (2017)
                                                                                                   75.7%       USD 117          USD 89
 5.2 million                                              1,007 rooms




Tourism                                             Demand
International arrivals to Ho Chi Minh              Key source markets to Vietnam include               New notable hotels
City reached 5.2 million in 2016, a 10.6%          Mainland China, South Korea, Japan and
growth y-o-y exceeding the government’s            the USA. While continuing its promotional           Ibis Saigon Airport
initial expectations of an 8.5% increase.          efforts in Japan, Ho Chi Minh City also aims        282 rooms
Between 2011 and 2016, the city registered         to expand new markets, targeting Russia
a Compound Annual Growth Rate (CAGR)               and India as future growth markets as the
of 10.9%. The growth comes as the city             city looks to grow international arrivals
stepped up its efforts to enhance arrivals         to near six million in 2017. The domestic           Upcoming hotels
and average spending with more festivals           market relies on the city as a key economic
with a focus on culture and eco-tourism            and recreational hub with 21.8 million              Ascott Waterfront Saigon
as well as attending travel marts and              visitors in 2016, and 24 million targeted for
                                                                                                       Ritz-Carlton Saigon
roadshow overseas.                                 this 2017.
                                                                                                       Starcity Airport Hotel



                                                                                                       Notable hotel deals
                                                                                                       There were no hotel Transactions
Supply                                              Outlook                                            in H2 2016


2016 saw 703 new rooms added to the                Named by Conde Nast Traveler as among
market. As the city gains traction as an           the 50 most beautiful cities in the world,
international tourist destination, over 3,500      Ho Chi Minh City is fast becoming an
rooms are expected to be added to the              international tourist destination as the
market by 2020, with 1,000 keys expected           government continues to focus efforts on
in 2017. While much of the existing                marketing as well as improving tourist
international and locally branded hotels are       attractions and safety. With ongoing
in the Upscale (35.4%) and Midscale (27.8%)        upgrading of museums and approval for
segments, upcoming additions (2017-2020)           a safari and Saigon Cultural and Tourism
are concentrated in the Luxury (48.4%)             Village, the People’s Committee is
and Upscale (42.4%) segments. Notable              developing a tourism development strategy
openings in 2016 include ibis Saigon Airport       through to 2030 and beyond to ensure
in Tan Binh District and Bay Hotel Ho Chi          sustainable tourism development.
Minh in District 1.




Note: Ho Chi Minh City Hotels refers to Marketwide
Source: STR Global (YTD March 2017), Vietnam National Administration of Tourism, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations Asia Pacific - Hotels & Hospitality Group May 2017
9        Hotel Destinations – Asia Pacific




    Hong Kong
    Quick Facts
                                                                                              OCC        ADR                  RevPAR
    International Visitor Arrivals (2016)    Number of New Rooms (2017)
                                                                                              83.7% HKD 1,755 HKD 1,469
    56.7 million                             1,022 rooms




                                             Tourism                                             Demand
New notable hotels                           Total visitor arrivals declined 4.5% in 2016       Mainland China is Hong Kong’s largest
                                             compared to 2015 mainly due to the sharp           source market, contributing 75.5% of all
Silka Tsuen Wan                              decline of same-day visitors from Mainland         total visitor arrivals in 2016. Over the same
409 rooms                                    China. In April 2015, the Mainland restricted      period, the number of overall visitors from
                                             Shenzhen permanent residents to just               Mainland China continued to fall, down by
Attitude on Granville                        one entry per week, which has largely              6.7% y-o-y to 42.8 million arrivals. This can
81 rooms                                     contributed to the same-day visitor decline        be attributed to the socio-political tension,
                                             of 8.7% y-o-y. On the other hand, the rate         stronger local currency, tightened visa
                                             of decline in total overnight visitor arrivals     policy for Shenzhen visitors, and increasing
                                             has slowed from being down 5.2% in 2015            competition from other destinations
Upcoming hotels                              to 0.5% in 2016, showing signs that we are         such as Japan and South Korea, which
                                             beginning to see improvement in Mainland           drew significantly more visitors from the
Kerry Hotel by Shangri-La                    arrivals.                                          Mainland.
Disney’s Explorer’s Lodge
Rosewood Hong Kong
The Murray, a Niccolo Hotel



Notable hotel deals
                                             Supply                                              Outlook
Newton Place Hotel Kwun Tong                 Approximately 888 rooms have been                  The increase in supply and economic
                                             added into the market last year, most of           uncertainties are expected to limit growth
Rosedale Causeway Bay                        which are small to medium sized midscale/          in hotel performance. 2016 has set the
                                             economy properties in Hong Kong Island             stage for a relatively uncertain 2017,
J Plus Hong Kong                             and Kowloon. So far in 2017, two hotels            with ‘Brexit’ expected to limit European
                                             have opened, Attitude on Granville with 81         visitors. As a major corporate hub, Hong
                                             rooms, and the Silka Tsuen Wan with 409            Kong is always affected by global economic
                                             rooms. Approximately 6,000 rooms remain            concerns and this remains still in recovery.
                                             in the pipeline. Notable openings are:             However, we are cautiously optimistic that
                                             Disney’s Explorer’s Lodge with 750 rooms,          hotel performance is likely to return to
                                             Rosewood Hong Kong in Tsim Sha Tsui with           stabilised levels over the medium term, as
                                             600 rooms, the Kerry Hotel by Shangri-La           Hong Kong has proven itself to be a resilient
                                             with 545 rooms, and The Murray, a Niccolo          city on the back of its multi-faceted appeal
                                             Hotel with 336 rooms.                              for FIT, leisure, corporate as well as MICE-
                                                                                                related demand. It is however increasingly
                                                                                                competing with cheaper Shanghai for the
                                                                                                latter.



                                             Note: Hong Kong refers to Upscale hotels
                                             Source: STR Global (YTD March 2017), Hong Kong Tourism Bureau, JLL
                                             ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations – Asia Pacific      10




Jakarta
 Quick Facts
                                                                                                  OCC         ADR            RevPAR
 International Visitor Arrivals (2016)             Number of New Rooms (2017)
                                                                                                  53.8%       USD 166        USD 89
 2.4 million                                       3,193 rooms




Tourism                                             Demand
As of YTD February 2017, international             Despite the recent terror attacks in Jakarta       New notable hotels
visitor arrivals rose by 17.5% y-o-y to reach      in January 2016, overall tourism demand
373,219 visitors. Strong y-o-y growth from         continued its upward trend, underpinned            Westin Jakarta
2016 underpinned the recovery in tourism           by strong corporate demand. This is                272 rooms
confidence following the bombing attacks           attributed to the fact that Jakarta remains
in the Indonesian capital in January 2016,         a key business gateway into Indonesia,             Mercure Jakarta Cikini
particularly amongst foreign tourists.             which holds huge economic potential. This          207 rooms
Continued benefits arising from the                should continue to attract international
                                                                                                      Four Points by Sheraton
extension of the visa waiver programme             and domestic corporate demand into the
to an additional 45 countries in 2015 also         city. However, ongoing global uncertainty,         Jakarta Thamrin
contributed to overall visitor growth.             coupled with terrorism concerns, should            164 rooms
                                                   continue to weigh on tourists’ minds.              Four Seasons Hotel Jakarta
                                                                                                      125 rooms



                                                                                                      Upcoming hotels

Supply                                              Outlook
                                                                                                      Swiss-Belhotel Resuna Epicentrum
                                                                                                      Holiday Inn Simutupang
                                                                                                      Swiss-Belhotel Kelapa Gading
Approximately 1,334 rooms opened in                Continued tourism promotion efforts by the
2016, representing y-o-y increment of 2.3%.        Ministry of Tourism through its “Wonderful         InterContinental Pondok Indah
Majority of the hotel openings were in the         Indonesia” campaign is expected to
Central region. Major openings in 2016             improve visitation into Indonesia. With
include the 125-room Four Seasons Hotel            tourism identified as a key economic
Jakarta, the 272-room Westin Jakarta, the          driver, coupled with ongoing infrastructure        Notable hotel deals
207-room Mercure Jakarta Cikini and the            projects, the tourism sector should expect
125-rooms Four Points by Sheraton Jakarta          to get an added boost. Approximately 9,786         There were no hotel transactions
Thamrin. In 2017, approximately 3,193              rooms are in the pipeline from 2017-2020 in        in H2 2016
rooms are in the pipeline. Notable openings        Jakarta.
in 2017 include the 312-room Swiss-Belhotel
Kelapa Gading, the 323-room Swiss-Belhotel
Resuna Epicentrum, the 316-room Holiday
Inn Express Simatupang and the 300-room
InterContinental Pondok Indah.




Note: Jakarta Hotels refers to Upscale
Source: STR Global (YTD March 2017), Singapore Tourism Board, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
11       Hotel Destinations – Asia Pacific




     Kuala Lumpur
     Quick Facts
                                                                                              OCC         ADR                 RevPAR
     International Visitor Arrivals (Malaysia 2016) Number of New Rooms (2017)
                                                                                              68.7%       MYR 537 MYR 369
     26.8 million                                2,771 rooms




                                             Tourism                                             Demand
New notable hotels                           Total international visitor arrivals to            Kuala Lumpur is predominantly a corporate
                                             Malaysia reached 26.8 million in 2016,             market with strong weekday business, but
St Regis Kuala Lumpur                        an increase of 4.0% compared to 2015.              relatively little leisure demand and lower
208 rooms                                    Tourism receipts rose by 18.8% y-o-y to MYR        weekend occupancy. Singapore was the
                                             82.1 billion compared to MYR 69.1 billion          top source market to Malaysia in 2016 and
Sunway Pyramid Hotel West                    in 2015. Tourism Malaysia is targeting a           accounted for 13.3 million or 49.6% of all
401 rooms                                    total of 31.8 million international tourist        international tourist arrivals to Malaysia, an
                                             arrivals in 2017 with tourism receipts             increase of 2.6% y-o-y. Second to Singapore
                                             of MYR 118 billion. Malaysia’s stronger            was Indonesia with 3.0 million arrivals, an
                                             tourism performance in 2016 is attributed          increase of 26.7% and thirdly Mainland
Upcoming hotels                              to improved flight accessibility as well as        China with 2.1 million arrivals, a significant
                                             currency depreciation making it a more             growth of 9.4% y-o-y.
Element Kuala Lumpur                         affordable destination for international
W Hotel Kuala Lumpur                         tourists. By 2020, the vision is to achieve 36
                                             million tourist arrivals and MYR 168 billion
Four Seasons Place Kuala Lumpur              in tourism receipts.
Fairmont Kuala Lumpur


                                             Supply                                              Outlook
Alila Bangsar



Notable hotel deals                          Approximately 2,200 rooms opened in 2016,          Over supply of hotel rooms remains a
                                             an increase of 5.3% y-o-y. New openings            key concern in Kuala Lumpur despite
There were no hotel Transactions             in 2016 include the 383-room Holiday Inn           the Malaysian governments continued
in H2 2016                                   Express Kuala Lumpur City Centre, the 247-         commitment to promoting the city as a
                                             room Oasia Suites Kuala Lumpur, the 208-           key MICE destination. It is estimated that
                                             room St Regis in KL Sentral and the 347-           approximately 9,000 new hotels rooms are
                                             room The Cosmos Hotel Kuala Lumpur                 in the pipeline between 2017 and 2022, 33%
                                             along Jalan Ampang. The majority of the            of which will be in the luxury segment and
                                             new supply, or 72%, was in the midscale            a further 62.4% in the upscale segment.
                                             segment, with the St Regis the only new            While not all of this supply is guaranteed,
                                             luxury hotel to open in 2016.                      it is a concern for a city which is already
                                                                                                experiencing significant pressure on rates
                                                                                                and occupancy.




                                             Note: Kuala Lumpur Hotels refers to Luxury and Upscale
                                             Source: STR Global (YTD March 2017), Tourism Malaysia, JLL
                                             ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations – Asia Pacific   12




Macau
 Quick Facts
                                                                                                 OCC       ADR             RevPAR
 International Visitor Arrivals (2016)            Number of New Rooms (2017)
                                                                                                 85.2% MOP 1,372 MOP 1,169
 31 million                                       2,000 rooms




Tourism                                            Demand
In 2016, international visitor arrivals to       With a total of 20.5 million visitor arrivals       New notable hotels
Macau stayed relatively flat, improving          recorded in 2016, Mainland China remained
by 0.8% y-o-y to 31.0 million. The gaming        Macau’s top source market, contributing             The Parisian
industry showed signs of recovery with data      66.1% to total visitor arrivals. Following a        3,000 rooms
released by Macau’s Gaming Inspection            drastic fall in 2015, the Mainland Chinese
and Coordination Bureau recording gross          market gained some momentum in                      Wynn Palace
gaming receipts rising 3.1% to MOP 19.3          December 2016, growing by 7.8% compared             1,700 rooms
billion in January 2017.                         to December 2015, ending the year with a
                                                 0.2% negligible improvement.

                                                                                                     Upcoming hotels
                                                                                                     The 13
                                                                                                     MGM Cotai
                                                                                                     Lisboa Palace
                                                                                                     Palazzo Versace Macau


Supply                                             Outlook
                                                                                                     Roosevelt Hotel Macau



According to the Macau Government                Macau’s economy is driven by the gaming             Notable hotel deals
Tourism Office, total hotel rooms in Macau       sector. However, casino operators are
amounted to 37,634 rooms with a 13.9%            keen to diversify into other non-gaming             There were no hotel Transactions
increase in supply compared to 2015. The         sectors including theme parks, sporting and         in H2 2016
growth in supply was contributed mainly          other entertainment options as well as the
by two major hotel openings in 2016: Wynn        international MICE market. To attract more
Palace (1,700 rooms) and at almost double        visitors, the government is also improving
the size Parisian (3,000 rooms). Upcoming        infrastructure including the development of
major supply additions include MGM Cotai         the Taipa Ferry Terminal, the Macau Light
(1,500 rooms) scheduled to open during the       Rapid Transit and the development of a
second half of 2017, and the ultra-luxury        large scale integrated development zone
hotel “The 13” (200 suites) scheduled to         with strong finance, technology, and leisure
open in early 2017.                              generators on Hengqin Island.




Note: Macau refers to Marketwide hotels
Source: STR Global (YTD March 2017), Macao Government Tourism Office, Gaming Inspection &
Coordination Bureau Macau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
13        Hotel Destinations – Asia Pacific




     Maldives
     Quick Facts
                                                                                               OCC           ADR               RevPAR
     International Visitor Arrivals (2016)    Number of New Rooms (2017)
                                                                                               69.0%         USD 843           USD 582
     1.3 million                              1,316 rooms




                                              Tourism                                             Demand
New notable hotels                            In 2016, the Ministry of Tourism launched          As the leading source market to the
                                              the ‘Visit Maldives Year 2016’ campaign,           Maldives, Mainland China made up about
Amilla Finolhu                                aiming to attract 1.5 million international        29.1% of total visitor arrivals in 2015,
125 rooms                                     visitors for the first time. As part of the        approximately three and a half times that
                                              campaign, the government conducted                 of the second largest source market,
Amari Havodda                                 various national and international                 Germany. Growth in the Mainland Chinese
120 rooms                                     activities to strengthen the Maldives’             market has been remarkably fast over the
                                              brand and market the country as an                 past few years, from 60,666 visitors in 2009
Furaveri Island Resort & Spa
                                              exclusive destination.                             to 324,326 in 2016. The latest tourism
105 rooms                                                                                        numbers indicate that while Mainland
Atmosphere OZEN                                                                                  China remains the leading source market,
90 rooms                                                                                         comprising 20.2% of the market as at
                                                                                                 YTD March 2017, overall arrivals fell by
Four Seasons Voavah Private                                                                      7.8% y-o-y.
7 rooms



Upcoming hotels
Zitahli Resort & Spa
(to be rebranded to Noku)
                                              Supply                                              Outlook
                                              According to the Ministry of Tourism, a total      Despite the challenging macro environment,
JW Marriott Maldives                          of 122 resorts with 26,089 beds, 16 hotels         the Maldives government remains
Centara Hudhufushi Resort & Spa               with 1,713 beds, 373 guest houses with             committed to growing and investing in its
                                              5,509 beds and 142 safari vessels with 2,608       tourism market. The Maldives Marketing
Pullman Maldives                              beds were registered in the Maldives as at         & Public Relations Corporation launched
                                              October 2016. Of the registered capacity,          the ‘Visit Maldives Year 2016’ marketing
Cheddi Dhapparu                               28,052 beds are considered operational,            campaign early this year and has organised
                                              comprising 24,516 beds in 114 resorts,             a series of trade road shows in Tier One
                                              1,509 beds in 13 hotels, 929 beds in 58            cities in India such as New Delhi, Bangalore,
Notable hotel deals                           guest houses and 1,098 beds in 63 vessels.
                                              New hotel openings in the Maldives are
                                                                                                 Kolkata, Mumbai and Chennai. Looking
                                                                                                 forward, while the operating market is
Grand Park Kodhipparu                         less common compared to city or other              likely to be challenging in the short term,
                                              established resort destinations because            we expect that increased marketing
J Resorts Kuda Rah                            of the high cost of construction and level         campaigns, ongoing tourism infrastructure
                                              of expertise required in operating a resort.       improvements and increased airlift from
Zitahli Kuda Funafaru Resort & Spa
                                              Nevertheless, we are aware of five openings        other markets will benefit the medium to
                                              in 2015 and a further ten in 2016, adding          long term prospects of the Maldives.
                                              1,316 rooms to supply.

                                              Note: Maldives Hotels refers to Marketwide
                                              Source: STR Global (YTD March 2017), Ministry of Tourism, Arts & Culture, JLL
                                              ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations – Asia Pacific      14




Manila
 Quick Facts
                                                                                                      OCC         ADR            RevPAR
 International Visitor Arrivals (Philippines 2016) Number of New Rooms (2017)
                                                                                                      70.6%       USD 107        USD 75
 5.9 million                                               3,101 rooms




Tourism                                             Demand
Total international visitor arrivals to the        As at YTD February 2017, South Korea is the            New notable hotels
Philippines reached 5.8 million in 2016, an        biggest visitor-generating market to the
increase of 12.9% compared to 2015. As at          Philippines, with total arrivals of 0.3 million,       Shangri-La at The Fort
YTD February 2017, international visitor           or 25.2%, of the total. The USA is the second          576 rooms
arrivals reached 1.2 million, an increase          largest market, followed by Mainland China,
of 13% y-o-y. Tourism activities as at             Japan and Australia. Among the top ten                 Novotel Manila Araneta Center
YTD February 2017 generated earnings               source markets, India showed the highest               396 rooms
amounting to PHP 40.1 billion, down by             growth of 28% y-o-y followed by Mainland
                                                                                                          Conrad Manila
18.9% y-o-y from the 49.4 million achieved         China at 25.4% y-o-y. Other markets which
in the corresponding period of the previous        enjoyed substantial growth were Vietnam                347 rooms
year. Regionally, East Asia contributes the        (+30.0%) and European countries such as                Marriott West Wing –
majority of international visitor arrivals to      France (+27.6%) and Russia (+29.2%).                   Resort World Manila
the Philippines, accounting for 52.6% as at
                                                                                                          228 rooms
YTD February 2017, or 0.6 million.



                                                                                                          Upcoming hotels

Supply                                              Outlook
                                                                                                          Okada Manila
                                                                                                          Grand Hyatt Manila

Approximately 2,429 rooms opened in 2016,          Manila remains attractive to both the                  Sheraton Manila
an increase of 7.3% y-o-y. New openings            corporate and leisure markets given its                Savoy Hotel Newport City
in 2016 included the 576-room Shangri-             status as a hub for the BPO sector and the
La at the Fort in Bonifacio Global City, the       rapidly developing integrated resorts in               Mandarin Oriental Manila
347-room Conrad Manila at the Mall of              the Manila Bay area. Belle Corp recently
Asia Complex, Phase 2 of the Marriott West         announced that it is considering an
Wing at Resorts World Manila, which added          extension of the City of Dreams, Manila
228-rooms to the existing hotel and the 396-       integrated casino resort as it is currently            Notable hotel deals
room Novotel Manila Araneta Center. In             operating at full capacity. Belle Corp has
March 2017, the Okada Manila celebrated            an 8,500 square metre piece of land across             There were no hotel transactions
its grand opening, and the USD 2 billion           from the City of Dreams that could serve               in H2 2016
integrated resort casino will house over 500       as a non-gaming expansion of the resort.
table games, more than 3,000 electronic            The continued development of the gaming
gaming machines and 993 hotel rooms.               industry in Manila will help attract more
                                                   leisure demand and transform the local
                                                   tourism industry.




Note: Manila Hotels refers to Marketwide
Source: STR Global (YTD March 2017), Philippines Department of Tourism, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
15        Hotel Destinations – Asia Pacific




     Melbourne
     Quick Facts
                                                                                               OCC          ADR                RevPAR
     International Visitor Arrivals (2016)    Number of New Rooms (2017)
                                                                                               88.3%        AUD 218            AUD 192
     1.7 million                              273 rooms




                                              Tourism                                             Demand
New notable hotels                            In 2016, a total of 36 million visitor nights      Mainland China is Melbourne’s largest
                                              were spent in Melbourne City representing          source market, contributing 31.9% of
Four Points by Sheraton                       6.1% of all visitor nights in Australia.           all international visitor arrivals in 2016.
273 rooms                                     International visitor nights accounted for         Melbourne’s calendar of major global events
                                              64.5% and domestic nights accounted for            and international conference program
QT Hotel Melbourne                            35.5%. Domestic visitor nights in Melbourne        is a draw card for visitors to the city and
184 rooms                                     increased by 11.1% y-o-y and international         has contributed to the growth in the
                                              visitor nights in Melbourne increased by           accommodation market. A strong calendar
Punthill Northbank Melbourne
                                              3.8% y-o-y.                                        of international events in the second
130 rooms                                                                                        half of the year, including the Melbourne
Stamford Plaza Melbourne Extension                                                               International Film Festival, AFL Grand Final
26 rooms                                                                                         as well as Melbourne Cup Carnival and
                                                                                                 Boxing Day Test Match saw leisure demand
                                                                                                 increase over the balance of the year.

Upcoming hotels
Ibis & Novotel Little Lonsdale Street
Novotel Southbank Melbourne
W Hotel Melbourne
                                              Supply                                              Outlook
                                              During H2 2016, approximately 340 rooms            Melbourne’s accommodation market has
                                              were added into the market, including              experienced a robust level of growth over
                                              Punthill Northbank Melbourne (130 guest            the last five years capitalising on the city’s
Notable hotel deals                           rooms), the QT Hotel Melbourne (184 guest          extensive calendar of events and the closure
Novotel on Collins                            rooms) as well as the completed extension          of the Sydney Convention and Exhibition
                                              of the Stamford Plaza Melbourne (26 guest          Centre between 2014 and 2016. Melbourne
Hilton South Wharf                            rooms). So far in 2017, the Four Points            City also has a long history of investment in
                                              by Sheraton Docklands is the only hotel            tourism and transportation infrastructure
Travelodge Docklands
                                              that has opened. Looking forward we are            as well as successfully marketing of the city
                                              aware of five short term accommodation             nationally and globally. Notwithstanding
                                              developments currently under construction          this, the underlying market buoyancy of
                                              and due for completion by 2020. If all             recent years is anticipated to moderate
                                              projects materialise, this will represent          slightly over the medium term as the
                                              an increase of 1,498 rooms of 7.6% on the          development pipeline continues to build.
                                              existing stock.




                                              Note: Hotel supply within the Melbourne City Region
                                              Source: STR Global (YTD March 2017), Tourism Research Australia, JLL
                                              ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations – Asia Pacific   16




Osaka
 Quick Facts
                                                                                                  OCC        ADR             RevPAR
 International Accommodation Guests (2016)                 Number of New Rooms (2017)
                                                                                                  78.9%      JPY 23,035 JPY 18,170
 9.4 million                                               164 rooms




Tourism                                             Demand
In 2016, a total of 15.6 million visitor nights    International demand remained strong in            New notable hotels
were spent in Osaka City. The number of            Osaka in 2016, although growth has slowed
international accommodation guests which           as compared to 2015, mainly driven by the          Premier Hotel Cabin Osaka
accounts for around one third of total             JPY appreciation trend that started in the         (Rebranded)
accommodation guests in Osaka, increased           second half of 2015. Airbnb has definitively       240 rooms
by 22.8% y-o-y. The number of domestic             made an impact on the local hotel market.
accommodation guests also increased by             According to a recent Airbnb press release,        Natural Hot Spring Onyado
5.4%. New rides added to Universal Studios         Osaka prefecture recorded the highest              Nono Namba
Japan (USJ) as well as seasonal exhibitions        usage rate in Japan last year.                     168 rooms
and events have benefited the tourism
industry in Osaka.                                                                                    Conrad Osaka
                                                                                                      164 rooms
                                                                                                      Hotel Trad
                                                                                                      47 rooms



                                                                                                      Upcoming hotels
Supply                                              Outlook                                           Hotel WBF Yodoyabashi Minami

According to Japan Ministry of Health,             In January 2017, a new terminal designated
Labour and Welfare, hotel and ryokan               for low cost carriers commenced operation          Notable hotel deals
supply in Osaka City accounted 678                 at Kansai International Airport and it
properties (59,272 rooms) as at March 2016.        is expected to boost incoming tourism              Hyatt Regency Osaka
There have been limited new additions              numbers. The supply pipeline remains
to supply of full-service hotels however,          limited with the bulk of new hotels                Hotel Vista Grande Osaka
there were approximately 450 new and               categorised as limited-service hotels.
refurbished rooms that commenced                   Osaka is expected to witness flat trading
trading.                                           performance in 2017 as international
                                                   tourism growth is expected to be the
                                                   same, coming of a strong 2015-16 that
                                                   was unsustainable after visa restrictions
                                                   on countries including China were lifted
                                                   causing record inbound numbers.




Note: Osaka Hotels refers to Marketwide
Source: STR Global (YTD March 2017) Japan Tourism Agency, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
17        Hotel Destinations – Asia Pacific




     Phuket
     Quick Facts
                                                                                               OCC         ADR                 RevPAR
     International Visitor Arrivals (2016)    Number of New Rooms (2017)
                                                                                               87.9%       THB 5,131           THB 4,512
     4.0 million                              950 rooms




                                              Tourism                                             Demand
New notable hotels                            International visitor arrivals through Phuket      In 2016, Mainland China, Russia and
                                              International Airport reached 4 million            Australia remained Phuket’s top three
Fishermen's Harbour Urban Resort              visitors in 2016, recording an improvement         source markets, according to arrivals
389 rooms                                     of 15% over 2015. The resurgence of                passing through immigration at Phuket
                                              Russian visitors was a key driver in tourist       International Airport. Despite continuing
Wyndham Grand Phuket                          arrivals. Further growth is expected in 2017       to account for almost 40% of international
214 rooms                                     with airport statistics already indicating         arrivals through Phuket, Mainland China
                                              growth in the early months of the year. In         showed slower growth compared to
Hyatt Place Phuket Patong
                                              September 2016, the expansion of Phuket            previous years as a result of the year-end
161 rooms                                     International Airport was completed which          crack down on zero dollar tours. The fastest
                                              increased capacity from 6.5 million to 12.5        growing source market was Russia, as
                                              million per year.                                  visitor arrivals saw a resurgence, improving
                                                                                                 47.4% y-o-y in 2016.
Upcoming hotels
Rosewood Phuket
The Hermitage Kata Phuket
Mövenpick Resort Mai Khao Phuket
(Formerly D Varee Mai Khao Beach
Phuket Resort)                                Supply                                              Outlook
                                              During 2017, approximately 950 rooms are           Despite the halt on zero-dollar tours by
                                              expected to enter the market, of which 101         the Thai authorities, the increase in the
Notable hotel deals                           rooms have been completed as at March              number of high-value Chinese independent
                                              2017. The west coast (including Patong,            travellers and the growth of the niche
Boathouse Resort on                           Kalim and Kamala) remains the most                 honeymoon market as well as a resurgence
the Beach Phuket                              popular location for new developments,             of the Russian market have all kept the
                                              comprising approximately 60% of future             island’s tourism industry positive. With
                                              supply between 2017 and 2020.                      the rise of these new markets, we expect
                                                                                                 Phuket to benefit from a positive outlook
                                                                                                 with limited new supply.




                                              Note: Phuket Hotels refers to Marketwide
                                              Source: STR Global (YTD March 2017), Department of Tourism Thailand,
                                              Ministry of Tourism and Sports Thailand, JLL
                                              ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations – Asia Pacific   18




Seoul
 Quick Facts
                                                                                                   OCC      ADR               RevPAR
 International Visitor Arrivals (South Korea 2016) Number of New Rooms (2017)
                                                                                                   71.7% KRW 95,172 KRW 68,284
 17.2 million                                                1,362 rooms




Tourism                                             Demand
Total visitor arrivals to South Korea were         As of YTD March 2017, Mainland China                New notable hotels
17.2 million in 2016, representing an              remained as Seoul’s largest source market,
increase of 30.3% compared to 2015. As             contributing 40.9% of total visitor arrivals.       Courtyard by Marriott Namdaemun
of YTD March 2017, international visitor           This is followed by Japan contributing              409 rooms
arrivals increased 3.2% y-o-y to reach 3.7         16.1% of total visitor arrivals. Most of the
million visitors. Improving visitor arrivals       key source markets experienced y-o-y                Nine Tree Myeongdong II
in 2016 were largely attributed to the             growth in YTD March 2017. The exceptions            408 rooms
record influx of Chinese tourists, buoyed by       were Mainland China and Hong Kong, which
                                                                                                       Shilla Stay Guro
concerted marketing efforts and the easing         registered decreases of 9.2% and 3.8%
of visa rules to target a growing group of         respectively. The significant fall in Chinese       310 rooms
Chinese independent tourists. The ongoing          tourists underscore the negative impact on          Aloft Seoul Myeongdong
difference of opinion between South Korea          South Korea’s tourism sector arising from           223 rooms
and Mainland China over the deployment             the ongoing THAAD dispute, in which Beijing
of THAAD missile system has drastically            recently banned its travel agencies from
affected relations between both countries,         offering travel packages to South Korea in
resulting in a significant fall in Chinese         March 2017.                                         Upcoming hotels
tourism demand.
                                                                                                       Lotte Signiel Hotel Seoul

Supply                                              Outlook                                            Ramada Encore Seoul Magok
                                                                                                       Four Points by Sheraton
                                                                                                       Seoul Gangnam
According to JLL estimates, approximately          Investors continue to pay close attention
3,588 rooms opened in 2016, representing           to the ongoing THAAD dispute, which
a 5.9% y-o-y increment. Most of the recent         could undermine stability in the region.
hotel openings were concentrated in the
Myeongdong area. Recent openings include
                                                   Considering that Mainland China is the
                                                   largest source market to South Korea,
                                                                                                       Notable hotel deals
the 430-room Lotte City Hotel Myeongdong,          any changes in relations between both               Conrad Seoul
the 409-room Courtyard by Marriott Seoul           countries is bound to have a ripple effect on
Namdaemun, the 576-room Tmark Grand                South Korea’s tourism sector. Nevertheless,         Belle Essence Hotel Seoul
Hotel Myeongdong and 408-room Nine Tree            local tourism and hospitality businesses
                                                                                                       Solaria Nishitetsu Seoul
Myeongdong II. In 2017, approximately              which have overly relied on Chinese visitors
1,362 rooms are in the pipeline.                   are currently reassessing developments,
                                                   looking to attract more visitors from other
                                                   countries and promoting domestic travel.




Note: Seoul Hotels refers to Midscale & Economy
Source: STR Global (YTD March 2017), Seoul Tourism Board, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
19        Hotel Destinations – Asia Pacific




     Seychelles
     Quick Facts
                                                                                               OCC           ADR               RevPAR
     International Visitor Arrivals (2016)    Number of New Rooms (2017)
                                                                                               66.8%         USD 333           USD 222
     303,000                                  127 rooms




                                              Tourism                                             Demand
New notable hotels                            With the benefit of improving flight               Last year, the top three source markets
                                              connectivity, Seychelles Tourism Board’s           remained France (14.2%), Germany (13.0%)
Carana Beach                                  strategy to focus on Asia to decrease              and UAE (7.9%). France has traditionally
40 rooms                                      reliance on the European market has                been one of the largest source markets to
                                              worked well, evidenced by the healthy              Seychelles due to its historical connection
Six Senses Zil Pasyon                         growth in Indian and Mainland Chinese              and similar cultural tradition. However,
30 rooms                                      visitor arrivals in the past five years. In        due to France’s sluggish economy and the
                                              2016, the Indian and Mainland Chinese              cancellation of direct flights in 2011, the
The Oasis Hotel & Restaurant
                                              source markets comprised together                  French source market has been stagnant
30 rooms                                      approximately 8.5% of total visitor arrivals,      in the past five years. However, with the
                                              which is a slightly higher proportion              introduction of direct flights from Paris to
                                              compared to 2015, when the two source              Mahé in 2015, the French source market
                                              markets combined comprised 7.8%.                   grew to 40,297 visitor arrivals.
Upcoming hotels
Four Seasons Desroches Island



Notable hotel deals
There were no hotel transactions              Supply                                              Outlook
in 2016
                                              According to the Seychelles Tourism                Although Seychelles has not achieved
                                              Board, there are around 35 large hotels            the same level of tourism growth as the
                                              with 2,360 hotel rooms as at end of 2016.          Maldives over the past few years, the
                                              Most of the hotels are concentrated on             country has the potential to improve in the
                                              Mahé and Praslin, where air access is              short to medium term. Improvements in
                                              easier due to the presence of airports.            air infrastructure and accessibility will be
                                              In the past, the Seychelles hotel market           critical to its success, as evidenced by the
                                              supply has been dominated by small                 new direct flights to Paris and Mainland
                                              owner-operated properties. However,                China having generated a significant
                                              in recent years, there has been a                  increase in international visitor arrivals. A
                                              proliferation of international branded             likely impediment for tourism demand in
                                              hotels, approximately 44.8% of the large           Seychelles would be the spill over effect
                                              hotel rooms are brand affiliated. Some             of ‘Brexit’ on the European economy,
                                              of the international brands include                especially given the country’s reliance on
                                              Le Meridien, Four Seasons, Hilton,                 European source markets. However, the
                                              Avani, Raffles, Berjaya, Banyan Tree               increased emphasis on the Asian and Middle
                                              and Six Senses.                                    Eastern source markets, coupled with
                                                                                                 continued developments in infrastructure
                                                                                                 and airlift, are likely to benefit trading
                                                                                                 performance going forward.
                                              Note: Seychelles Hotels refers to Marketwide
                                              Source: STR Global (YTD December 2016), Seychelles Tourism Board, JLL
                                              ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
Hotel Destinations – Asia Pacific      20




Shanghai
 Quick Facts
                                                                                                   OCC         ADR            RevPAR
 International Visitor Arrivals (2016)               Number of New Rooms (2017)
                                                                                                   65.8%       RMB 560        RMB 539
 8.5 million                                         5,428 rooms




Tourism                                             Demand
The rate of growth in international arrivals       Shanghai’s hotel demand is mainly driven            New notable hotels
has continued its positive trajectory. Data        by the corporate sector. Shanghai is one of
from Shanghai’s Tourism Bureau show                the Yangtze River Delta’s major commercial          InterContinental Shanghai National
the city’s international arrivals climbed          centers, and business travel is the dominant        Exhibition & Convention Center
6.8% y-o-y to 8.5 million at the end of 2016.      source of hotel demand, thanks to a steady          543 rooms
Although economic and trading activities           stream of visitors involved in the city’s
softened in major Asian source markets,            finance and service industries. The recent          Disneyland Hotel-Luxury
visitors to Shanghai grew including a 13.1%        opening of Shanghai Disney Resort has               420 rooms
increase from South Korea and a 3.1%               been a boon for strong growth in domestic
rise from Japanese visitors. This again            tourism in Shanghai and becoming a major            Sofitel Shanghai Macorlink Hotel
proves Shanghai’s leading position as a            drawcard for regional visitors as well.             360 rooms
core trading and financial hub across the                                                              Wanda Reign Shanghai
Mainland.
                                                                                                       300 rooms
                                                                                                       Le Meridien Shanghai Minhang
                                                                                                       240 rooms



Supply                                              Outlook                                            Upcoming hotels
                                                                                                       Bvlgari Shanghai
In 2016, a total of 18 hotels positioned in the    Although Shanghai foresees an influx
upscale and midscale levels commenced              of room additions in the short term, we             W Shanghai the Bund
trading, largely driven by the opening of          expect trading performance to be driven by          The Shanghai Tower J Hotel
Shanghai Disney Resort. Soon, Shanghai             demand generated by fast city development
will overtake the previous 2010 supply peak,       including the expansion of city’s sub-centers       The St. Regis Shanghai Jingan
the year when Shanghai Expo was held.              and entertainment precincts including Polar
From 2017 onwards, approximately 14,000            Ocean World and a potential Lego Land
                                                                                                       Edition Shanghai
rooms will be added to the market over             project. New projects are concentrated in
consecutive years, registering 21% growth          peripheral areas such as Jiading, Songjiang
on existing supply.                                and Chongming so we expect some
                                                   pressure on room rates in the outer areas of
                                                                                                       Notable hotel deals
                                                   Shanghai over the next few years.                   Starway Parkview South Station
                                                                                                       Hotel (70%)
                                                                                                       Amenity Garden
                                                                                                       The Mosaic Collection Grand
                                                                                                       Pujian Residence
                                                                                                       Rainbow Plaza Shanghai
Note: Shanghai refers to Four Star hotels
Source: STR Global (YTD March 2017), Shanghai’s Tourism Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room, OCC - Occupancy
21        Hotel Destinations – Asia Pacific




     Singapore
     Quick Facts
                                                                                              OCC            ADR              RevPAR
     International Visitor Arrivals (2016)      Number of New Rooms (2017)
                                                                                              85.3%          SGD 252          SGD 215
     16.4 million                               2,413 rooms




                                              Tourism                                             Demand
New notable hotels                            Total visitor arrivals reached a historic         As of YTD February 2017, Mainland China
                                              high of 16.4 million in 2016, representing        was Singapore’s largest source market,
JW Marriott Hotel Singapore South             an increase of 7.7% compared to 2015.             contributing 21.4% of total visitor arrivals.
Beach (Rebranded)                             As of YTD February 2017, international            Mainland China also registered the largest
634 rooms                                     visitor arrivals continued an upward trend,       y-o-y increase of 15.5%. This is followed
                                              increasing 3.4% y-o-y to reach 2.8 million        by Indonesia which contributed to 16.3%
Holiday Inn Express Singapore Katong          visitors. Continued visitor growth was            of total arrivals. This is mainly the result
451 rooms                                     driven primarily by the stronger showing          of improved marketing efforts in these
                                              from Mainland China, which is now the             markets, especially in the Tier 1 and 2 cities
Mercure Singapore Bugis                       largest source market. This comes as              of China, India and Indonesia. Positive
395 rooms                                     Singapore continues to benefit from the           growth in these markets helped offset the
Park Hotel Farrer Park                        ongoing marketing efforts by the Singapore        decline in visitor arrivals in other key market
                                              Tourism Board (STB) in Tier 1 and 2 cities of     such as Malaysia, Australia, South Korea and
300 rooms
                                              China, India and Indonesia.                       Japan, where currency depreciation and
Warehouse Hotel                                                                                 weak economic sentiments have impacted
37 rooms                                                                                        travel demand.




Upcoming hotels
Yotel Orchard Road
                                              Supply                                              Outlook
                                              According to STB, Singapore’s room                In 2017, STB forecasts zero to moderate
Andaz Singapore                               inventory comprised a total of 63,850             growth in visitor arrivals and tourism
InterContinental Singapore                    licensed rooms in 2016. Approximately             receipts, targeting visitor arrivals of
                                              4,456 rooms opened last year, a 7.6%              between 16.4 million and 16.7 million. The
Robertson Quay
                                              increment over 2015. Majority of the hotel        larger hotel supply pipeline may impact
Sofitel Singapore City Centre                 openings were in the Central and Eastern          hotel trading performance in Singapore
                                              region of Singapore. Major openings in            over the next two years. Ongoing global
Courtyard by Marriott Novena                  2016 include the 1,500-room Hotel Boss,           economic and political uncertainties as
                                              634-room JW Marriott Hotel Singapore              well as increasing regional competition will
                                              South Beach, the 451-room Holiday Inn             ensure that Singapore remains competitive,
                                              Express Singapore Katong and the 395-             particularly in MICE and group business.
Notable hotel deals                           room Mercure Singapore Bugis. So far in
                                              2017, the 37-room Warehouse Hotel has
Cuscaden Bungalow at
                                              opened. Approximately 2,354 rooms are in
9 Cuscaden Road                               the pipeline. Majority of the new supply is
                                              in the luxury sector (39.3%) followed by the
                                              upscale sector (22.8%).



                                              Note: Singapore Hotels refers to Upscale
                                              Source: STR Global (YTD March 2017), Singapore Tourism Board, JLL
                                              ADR - Average daily rate, RevPAR - Revenue per available room, OCC- Occupancy
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