Hotel Destinations Asia Pacific - Hotels & Hospitality Group | October 2017 - JLL Asia Pacific

 
Hotel Destinations Asia Pacific - Hotels & Hospitality Group | October 2017 - JLL Asia Pacific
Hotels & Hospitality Group | October 2017

Hotel Destinations
Asia Pacific
Hotel Destinations Asia Pacific - Hotels & Hospitality Group | October 2017 - JLL Asia Pacific
1        Hotel Destinations – Asia Pacific

    Auckland
    Quick Facts
                                                                                                       OCC           ADR             RevPAR
    International Visitor Arrivals (YTD June 2017)     Number of New Rooms (2017)
                                                                                                       87.0%         NZD 200         NZD 174
    3.6 million                                        663 rooms

                                                     Tourism                                              Demand
New notable hotels                                   Auckland International Airport, the                 Total (domestic and international) guest
                                                     ‘gateway’ for Auckland and New Zealand              nights in Auckland increased 2.2% for
There were no hotel openings                         overseas visitors, has experienced its              year ended 30 June 2017 compared to
in H1 2017                                           second year of double-digit growth in               the corresponding prior year period. The
                                                     international visitors. For YTD June 2017,          growth in visitor numbers translating to
                                                     international visitors were up by 11.7%,            growth in guest night demand, helped to
                                                     an increase on the 10.5% growth in the              drive Auckland hotel average occupancy
Upcoming hotels                                      previous year. The largest increases came           levels to a record high level of 87.0% (for the
                                                     from USA (31.2%), Australia (6.3%), United          period year ending July 2017). Auckland’s
SKYCITY Hobson Street Hotel                          Kingdom (16.9%), Malaysia (61.6%) and               market occupancy has risen every year
Four Points by Sheraton                              Germany (17%). These increases were                 since 2010, after reaching a post GFC low of
                                                     driven by a 14.4% increase in capacity, with        69.5% in 2009.
Park Hyatt Auckland                                  the strongest growth seen on the Middle
M Social Auckland                                    East, Australia, China, Hong Kong and USA
                                                     routes.
Sofitel So Auckland

Notable hotel deals
Holiday Inn Queenstown
                                                     Supply                                                Outlook
                                                     Modest levels of hotel room supply have             We anticipate that Auckland’s
Quality Hotel Ambassador                             been delivered to the market in recent years        accommodation market will continue to
Quest Napier                                         (a total of 348 rooms over the past three           perform strongly in the short term, and is
                                                     years, comprising an approximate 5.3%               poised for further rate growth, however as
The Park Hotel Ruapehu                               increase over existing stock). However,             the ‘wave’ of new supply enters the market,
                                                     there is an unprecedented level of new              we expect current capacity constraints and
                                                     supply with nine projects (comprising               occupancy to ease. However, beyond the
                                                     a total of 1,398 rooms) currently under             short term some caution is warranted as
                                                     construction and forecast to enter the              the market begins to absorbs the significant
                                                     market over the next one to three years,            levels of forecast room supply.
                                                     with four of the hotel projects (818 rooms)
                                                     comprising 5-star product. The nine new
                                                     hotel projects represent an approximate
                                                     21% increase in room supply.

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

Bali
 Quick Facts
                                                                                                      OCC         ADR            RevPAR
 International Visitor Arrivals (YTD July 2017)             Number of New Rooms (2017)
                                                                                                      72.7%       USD 150        USD 109
 3.4 million                                                1,397 rooms

Tourism                                              Demand
Bali continues to enjoy healthy growth             As at YTD July 2017, Mainland China was                New notable hotels
in international visitor arrivals which            the top source market for Bali, accounting
increased 23.2% y-o-y as at YTD July 2017          for 26.3% of all international visitor arrivals.       Hotel Indigo Bali Seminyak
to reach 3.4 million. All of the top ten           Mainland Chinese arrivals were up by                   289 rooms
source markets to Bali registered notable          57.4% y-o-y. Second to Mainland China
increases in demand except for Australia           is Australia, which accounts for 18.9% of              Swiss-Belresort Pecatu
(-1.1%) and Malaysia (-5.7%). Albeit from          total arrivals, followed by India with 4.6%            199 rooms
lower volumes, significant growth was also         of the total. Arrivals from India enjoyed              Sol House Legian
registered from Russia (+62.9%), Canada            a notable increase of 44.0% y-o-y. Other
                                                                                                          136 rooms
(+28.2%) and the Philippines (+23.8%). At          major markets enjoying double digit growth
this pace, international visitor arrivals are      are South Korea (+24.6%), USA (+19.4%),                Best Western Premier Agung
expected to exceed the 5.5 million target          Germany (+18.6%) and the UK (+14.0%).                  Resorts Ubud
set by the government.                                                                                    75 rooms

                                                                                                          Upcoming hotels

Supply                                               Outlook
                                                                                                          Renaissance Bali Uluwatu
                                                                                                          Resort & Spa
                                                                                                          Element Bali Ubud
Approximately 750 rooms in six hotels have         Recent improvements in air connectivity
been added to supply in Bali in 2017 to            and new flight routes, notably from Europe             Capella Ubud
date. Major additions include the 289-room         and several Chinese cities, to Ngurah                  Solis Ubud Resort & Spa
Hotel Indigo Bali Seminyak, the 136-room           Rai International Airport have helped to
Sol House Legian and the 75-room Best              support the strong growth in international             Fairfield by Marriott Legion
Western Premier Agung Resort Ubud.                 tourism arrivals. Indonesia is targeting 15
                                                   million international tourists in 2017, and
                                                   Bali is expected to account for around 40%
                                                   of these as it remains the prime destination           Notable hotel deals
                                                   for foreign tourists.
                                                                                                          There were no hotel transactions
                                                                                                          in H1 2017

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

    Bangkok
    Quick Facts
                                                                                                       OCC         ADR            RevPAR
    International Visitor Arrivals (YTD July 2017)     Number of New Rooms (2017)
                                                                                                       75.9% THB 6,104            THB 4,630
    13.5 million                                       2,983 rooms

                                                     Tourism                                               Demand
New notable hotels                                   International arrivals reached 13.5 million         Mainland China is Bangkok's largest
                                                     as at YTD July 2017, recording an increase          source market followed by Japan, India
Park Hyatt Bangkok                                   of 4.1% y-o-y. The government’s crackdown           and South Korea. While growth in arrivals
222 rooms                                            on Chinese zero-dollar tours in 4Q2016 has          among the major source markets slowed
                                                     put pressure on Chinese arrivals to Thailand        down in 2016, other source markets such
Mercure Bangkok Makkasan                             and Bangkok with extended impact                    as the USA and Middle East registered high
180 rooms                                            during the first half of 2017. A pick up in         y-o-y improvement of 12.7% and 11.1%
137 Pillars Suites                                   arrival growth is expected in the second            respectively. Additionally, the Tourism
                                                     half of 2017 as seen from a 8.4% y-o-y              Authority of Thailand (TAT) has kicked off
34 rooms
                                                     improvement in arrivals from Mainland               the ‘Women’s Journey Thailand’ campaign
                                                     China for the month of July.                        aiming to enhance Thailand as a female
                                                                                                         friendly destination.
Upcoming hotels
Lancaster Bangkok
The Bangkok EDITION hotel by
Ritz Carlton
Hyatt Regency Bangkok Sukhumvit
                                                     Supply                                                Outlook
                                                     Bangkok has seen almost 1,200 new hotel             Bangkok is expected to see a continual
Notable hotel deals                                  rooms being added to the market as at               increase in hotel supply over the next few
                                                     YTD July 2017 with another 1,800 rooms              years with approximately 8,000 rooms to
Sukhumvit 27 Hotel Development
                                                     expected to open by end-2017. 2Q17 saw              be added by 2019. Hotel performance has
Premier Inn Bangkok                                  two notable openings namely the Park                been driven by improvements in occupancy
                                                     Hyatt Bangkok and 137 Pillars Suites                since 2015 and the trend is expected to
                                                     Bangkok. Over 40% of the future room                continue in the short to medium term.
                                                     additions are in the upscale segment. Key           While the increasing room supply may limit
                                                     upcoming projects include the 231-key               occupancy growth, strong tourist arrivals
                                                     Lancaster, 154-key The Bangkok EDITION              supported by expansions of Don Mueang
                                                     hotel by Ritz Carlton and 273-key Hyatt             and Survarnabhumi International Airports
                                                     Regency Bangkok Sukhumvit.                          are expected to absorb the upcoming
                                                                                                         supply.

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

Beijing
 Quick Facts
                                                                                                    OCC       ADR                 RevPAR
 International Visitor Arrivals (YTD July 2017)              Number of New Rooms (2017)
                                                                                                    72.4%     RMB 1,015           RMB 735
 2.2 million                                                 1,809 rooms

Tourism                                              Demand
Total visitor arrival in Beijing declined           Corporate demand remains the main driver              New notable hotels
5.8% to 2.2 million as at YTD July 2017.            for the Beijing hotel market. An increasing
The decline can be mainly attributed to             number of companies are relocating their              Hotel Jen Beijing
the sharp drop of Korean visitors, which            head offices to the cities’ sub-commercial            450 rooms
recorded a 41.3% fall due to political              centre such as Lize, Wangjing, Yizhuang,
tension that currently exists between the           Tongzhou and Changping. Correspondingly               Bvlgari Hotel Beijing
two countries. On a positive note, the 144-         corporate demand is expanding to these                119 rooms
hour visa exemption policy that is planned          new emerging areas. Leisure demand
to be issued at the end of 2017 should help         is another major demand segment. As
boost international visitation and alleviate        the Jing-jin-ji areas are becoming more
the shortfall of Korean tourists.                   integrated, an increasing number of short-
                                                                                                          Upcoming hotels
                                                    haul travellers from Hebei and Tianjin are            The Puxuan Hotel and Spa
                                                    traveling to the ancient capital city during
                                                    national holidays or over the weekend for             Beijing Pan Pacific Hotel
                                                    short trips.
                                                                                                          Hualuxe Beijing Xinan
                                                                                                          Club Med Hotel

Supply                                               Outlook                                              Notable hotel deals
The 450-room Hotel Jen is the only entrant          Hotel performance is expected to improve              Somerset ZhongGuanCun Beijing
for the first half of 2017. However, another        over the next 12 months. The high-
six hotels are expected to add a total of           positioning and limited rooms of the two
1,400 rooms to the market by year end. Key          new incoming luxury hotels coupled with
openings include two luxury hotels: Bvlgari         a relatively restrained supply pipeline is
Hotel Beijing (120 rooms) and Puxuan Hotel          expected to drive ADR marketwide. We
(116 rooms). The balance of new supply is           are also seeing some hotels in busy trade
mostly concentrated in emerging business            areas upgrading their rooms to serve rising
clusters or suburban areas of Beijing.              demand from travelers seeking higher-
However, development pace is slowing                quality accommodation. This demand will
due to restrictive construction policy and          be further supported by an increase in short-
developers’ remaining overly cautious               haul travel as Beijing continues to grow its
based on current trading fundamentals.              outer areas through the construction of a
                                                    second new airport, and the opening of a
                                                    Universal Studios.

Note: Beijing refers to Upscale
Source: STR Global (YTD Jul 2017), Beijing Tourism Bureau, JLL
ADR - Average daily rate, RevPAR - Revenue per available room
Hotel Destinations Asia Pacific - Hotels & Hospitality Group | October 2017 - JLL Asia Pacific
5         Hotel Destinations – Asia Pacific

    Brisbane
    Quick Facts
                                                                                                        OCC           ADR           RevPAR
    International Visitor Arrivals (YTD March 2017)       Number of New Rooms (2017)
                                                                                                        72.9%         AUD 155       AUD 113
    255,000                                               319 rooms

                                                      Tourism                                               Demand
New notable hotels                                    As at YTD March 2017, visitor arrivals to           While visitation remains largely domestic,
                                                      Brisbane City achieved robust growth,               Mainland China remains the biggest source
Holiday Inn Express Hotel                             increasing 38.3% y-o-y to a total of 1.1            market to Brisbane, followed by Japan,
226 rooms                                             million. International visitor nights               the United Kingdom and Taiwan. In 2016,
                                                      accounted for 23.5% (0.5% increase y-o-y)           Chinese visitor nights in Brisbane City grew
Sage Hotel James Street                               and domestic nights accounted 76.5%                 14.7% year-on-year and has grown at an
93 rooms                                              (56.3% increase y-o-y). The strong growth           average annual rate of 25.2% over the last
                                                      in visitor arrivals can be attributed to            10 years. While ‘leisure’ remains the primary
                                                      a number of significant events held in              purpose of visit, ‘education’ also increased
                                                      the City, including music concerts from             significantly during the three months to
Upcoming hotels                                       renowned musicians such as Adele and                March 2017.
Adina on George Street                                Justin Bieber, as well as the World Science
                                                      Festival.
W Hotel
Southpoint Emporium Hotel
Calile Hotel Fortitude Valley

                                                      Supply                                                Outlook
Westin Brisbane

Notable hotel deals                                   So far in 2017, two hotels have opened,             Year to date, the Brisbane accommodation
                                                      being the Sage Hotel James Street (93               market have been positive, signaling
The New Inchcolm Hotel & Suites                       guest rooms) and the Holiday Inn Express            the early signs of a post resources boom
                                                      Brisbane (226 guest rooms). We are                  recovery. In the medium to long term,
                                                      aware of seven additional short-term                investment in major projects such as the
                                                      accommodation developments currently                Queens Wharf redevelopment, Brisbane
                                                      under construction in central Brisbane              Live precinct and the Howard Smith Wharfs,
                                                      and are due for completion by 2019. If all          is expected to underpin future tourism
                                                      projects materialise, this will represent an        demand along with the addition of a second
                                                      increase of 1,460 rooms or 13.1% on the             runway at Brisbane airport.However,
                                                      existing stock.                                     market growth will likely moderate as new
                                                                                                          projects continue to enter the market.

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

Hanoi
 Quick Facts
                                                                                                   OCC        ADR            RevPAR
 International Visitor Arrivals (YTD July 2017)           Number of New Rooms (2017)
                                                                                                   84.9%      USD 112        USD 95
 2.7 million                                              643 rooms

Tourism                                              Demand
International visitor arrivals to Hanoi            China, South Korea, Japan and the USA               New notable hotels
reached 2.7 million as at YTD July 2017,           continues Vietnam's top source markets as
representing a y-o-y growth of 19%. Country        at YTD July 2017. Hanoi authorities recently        InterContinental Landmark 72
and city-wide tourism promotion, new               cooperated with CNN to broadcast short              359 rooms
domestic and international flights as well         films featuring city’s scenery and heritage
as the extension of the visa waiver program        sites to boost international demand.
for major European countries will provide          Taiwan, Russia,Malaysia,Australia and
impetus for further growth in international        the UK are also among the leading source            Upcoming hotels
visitor arrivals in 2017                           markets to Hanoi. Additionally, the city has
                                                   consistently launched marketing campaigns           Novotel Hanoi Thai Ha
                                                   with a focus to promote tourism to Western          Park Hyatt Hanoi
                                                   Europe, Northeastern Asia and Northern
                                                   America markets.                                    Somerset West Central Hanoi

                                                                                                       Notable hotel deals
                                                                                                       There were no hotel transactions
Supply                                               Outlook                                           in H1 2017

The first half of 2017 saw the soft opening        Hanoi is looking to focus on high-
of the Intercontinental Landmark 72 (170           quality tourism products and services by
out of 350 rooms). Approximately 2,500             encouraging human resource training
rooms are anticipated to enter the market          and local infrastructure improvement.
beyond-2020 with a concentration in                The continual rise in occupancy levels is
the luxury and midscale segments. We               expected to support Hanoi’s hotel trading
understand that the Novotel Hanoi Thai Ha,         performance with arrivals recording upward
as well as the Park Hyatt Hanoi and Four           momentum though upcoming supply might
Seasons are expected to open in the next           put pressure on hotel trading in the short to
few years.                                         medium term.

Note: Hanoi refers to Marketwide
Source: STR Global (YTD Jul 2017), Vietnam National Administration of Tourism, JLL
ADR - Average daily rate, RevPAR - Revenue per available room
Hotel Destinations Asia Pacific - Hotels & Hospitality Group | October 2017 - JLL Asia Pacific
7        Hotel Destinations – Asia Pacific

    Ho Chi Minh City
    Quick Facts
                                                                                                      OCC            ADR              RevPAR
    International Visitor Arrivals (YTD June 2017)     Number of New Rooms (2017)
                                                                                                      74.1%          USD 110          USD 82
    2.8 million                                        71 rooms

                                                     Tourism                                              Demand
New notable hotels                                   Ho Chi Minh City (HCMC) welcomed 2.8               During the past few years, the number of
                                                     international visitor arrivals as at YTD June      tourists from the UK, France, Germany,
Fusion Suites Saigon                                 2017, registering a 14.7% growth y-o-y.            Italy and Spain registered an increase
71 rooms                                             International visitor arrivals are forecast        of 14.0% per year, as a result of the visa
                                                     to reach between 5.6 million to 6 million          exemption program. Vietnam has continued
                                                     by end of 2017, a notable improvement              its cooperation with Japan with new flights
                                                     compared to the 5.2 million recorded.              connecting Hanoi, HCMC and Osaka by
Upcoming hotels                                      The city has organised monthly events              Vietnam Airlines starting from September
                                                     including the promotion of its southern            this year. Additionally, HCMC’s Department
Holiday Inn & Suites Saigon Airport                  cuisine and Vietnamese traditional clothing        of Tourism has also raised a proposal
Citadines Regency Saigon                             (Ao Dai), aiming to attract new visitors and       to extend the visa exemption period
                                                     encourage repeat travellers.                       for international arrivals from Sweden,
                                                                                                        Denmark, Russia, South Korea, the UK,
                                                                                                        Germany, France, Italy and Spain from 15
Notable hotel deals                                                                                     days to 30 days to boost the city’s tourist
                                                                                                        arrivals.
There were no hotel transactions
in H1 2017

                                                     Supply                                               Outlook
                                                     Over 3,600 rooms remain in the 2017-2020           Ho Chi Minh City is fast becoming an
                                                     pipeline with 450 rooms to open by end-            international tourist destination as the
                                                     2017. Half of future room additions are            government continues to focus efforts on
                                                     in the upscale segment. Expected hotel             marketing as well as improving tourist
                                                     openings in 2018 and 2019 include the              attractions and safety. With an ongoing
                                                     217-key Ascott Waterfront Saigon, 350-key          upgrading of museums and approval for
                                                     Holiday Inn & Suites Saigon Airport, and           a safari and Saigon Cultural and Tourism
                                                     350-key Hilton Saigon. Two luxury projects         Village, the People’s Committee is
                                                     scheduled to open in 2020 are the Okura            developing a tourism development strategy
                                                     Prestige Saigon and Ritz-Carlton Saigon.           through to 2030 and beyond to ensure
                                                                                                        sustainable tourism development.

                                                     Note: Ho Chi Minh City refers to Marketwide
                                                     Source: STR Global (YTD Jul 2017), Vietnam National Administration of Tourism, JLL
                                                     ADR - Average daily rate, RevPAR - Revenue per available room
Hotel Destinations Asia Pacific - Hotels & Hospitality Group | October 2017 - JLL Asia Pacific
Hotel Destinations – Asia Pacific    8

Hong Kong
 Quick Facts
                                                                                                  OCC        ADR              RevPAR
 International Visitor Arrivals (YTD June 2017)          Number of New Rooms (2017)
                                                                                                  82.9%      HKD 1,678 HKD 1,392
 27.8 million                                            4,276 rooms

Tourism                                             Demand
As at YTD June 2017, total overnight visitor      Mainland China is Hong Kong’s largest               New notable hotels
arrivals have grown by 5.0% to 13.1 million       source market, contributing 73.7% of
compared to the same period last year. This       all total visitor arrivals as at YTD June           Disney Explorers’ Lodge
growth arises from the Mainland Chinese           2017, which is almost three times all               750 rooms
Market (up by 5.4% y-o-y) and the Short           other markets combined. Despite the
Haul Markets (up by 7.9% y-o-y.) This is          decline in 2015 and 2016, mainland China            Kerry Hotel by Shangri-La
positive news given declining overnight           visitors have begun to recover starting in          546 rooms
arrivals recorded over much of 2015 and           late 2016 and continuing as at YTD June             Silka Tsuen Wan
2016 and the market is now firmly in              2017. Such growth has been assisted by
                                                                                                      400 rooms
recovery.                                         Chinese visitors’ recovering interest as
                                                  well as South Korea's and Taiwan's heated           iClub Ma Tau Wai
                                                  political tensions with China, which could          340 rooms
                                                  have prompted Chinese to visit Hong Kong
                                                  instead.                                            Billion Hotel
                                                                                                      336 rooms

                                                                                                      Upcoming hotels
Supply                                              Outlook                                           Emperor Hotel Wanchai
                                                                                                      Hotel COZI
As at the end of 2016, Hong Kong’s hotel          Due to the changing profile of Mainland
accommodation comprised a total of 263            Chinese visitors and relatively sufficient          The Murray, a Niccolo Hotel
hotels with 74,868 rooms. Approximately           new supply expected, ADR growth is
3,000 hotel rooms have been added into the        estimated to remain subdued this year.              Rosewood Hong Kong
market as at YTD August 2017, representing        Notwithstanding, we believe the Hong Kong           Hotel Vic North Point
4.3% of growth from 2016. The new supply          tourism market has started its recovery in
in the first half of the year is characterized    late 2016 with improving visitor arrivals
by a few large hotel openings such as the         statistics. Although the demographics of
Disney Explorers’ Lodge (750 rooms), Kerry        Mainland Chinese visitors are changing,             Notable hotel deals
Hotel by Shangri-La (546 rooms), Silka            we are cautiously optimistic that hotel
Tsuen Wan (400 rooms), and iClub Ma Tau           performance will return to its stabilised           Rosedale on The Park
Wai (340 rooms.)                                  levels over the medium to long term. Hong
                                                  Kong has proven itself to be a resilient city
                                                                                                      Butterfly Hollywood
                                                  on the back of its multi-faceted appeal for         Bay Bridge Hotel
                                                  leisure, corporate as well as MICE-related
                                                  demand.                                             Newton Inn North Point
                                                                                                      Hotel Bonaparte
Note: Hong Kong refers to Upscale
Source: STR Global (YTD Jul 2017), Hong Kong Tourism Board, JLL
ADR - Average daily rate, RevPAR - Revenue per available room
Hotel Destinations Asia Pacific - Hotels & Hospitality Group | October 2017 - JLL Asia Pacific
9        Hotel Destinations – Asia Pacific

    Jakarta
    Quick Facts
                                                                                                        OCC        ADR             RevPAR
    International Visitor Arrivals (YTD July 2017)       Number of New Rooms (2017)
                                                                                                        52.6% USD 159              USD 83
    1.4 million                                          659 rooms

                                                     Tourism                                                Demand
New notable hotels                                   International visitor arrivals to Jakarta            Jakarta remains a key business gateway
                                                     continue to grow and, as at YTD July 2017,           into Indonesia and demand has continued
HARRIS Vertu Jakarta                                 reached 1.4 million, an increase of 11.1%            to grow. Corporate travellers constitute
240 rooms                                            y-o-y. The extension of the visa waiver              the majority of tourism demand, as
                                                     programme continues to benefit Indonesia,            Jakarta continues to be the main hub and
Yello Hotel Manggarai                                with 169 countries now eligible to receive a         corporate headquarters for Indonesian
102 rooms                                            free 30-day visa upon arrival in the country.        and multinational corporations. Jakarta is
Amaris Hotel Mampang                                                                                      also a popular stop over for international
                                                                                                          visitors travelling to other popular tourist
90 rooms
                                                                                                          destinations in Indonesia such as Bali,
                                                                                                          Lombok and Yogyakarta.

Upcoming hotels
Park Hyatt Jakarta
Alila SCBD
Regent Jakarta

                                                     Supply                                                 Outlook
Notable hotel deals                                  Approximately 432 rooms in three hotels              Incoming hotel supply will add pressure to
There were no hotel transactions                     have opened in Jakarta in 2017 to date. The          hotel trading performance in Jakarta, and
in H1 2017                                           new openings include the 240-room HARRIS             hotels are likely to reduce rates to maintain
                                                     Vertu Jakarta, the 102-room Yello Hotel              occupancy. However, foreign investment
                                                     Manggarai and the 90-room Amaris Hotel               in the country is expected to increase
                                                     Mampang. Another hotel with 227 rooms is             amidst significant reforms in the business
                                                     expected to open before the end of 2017.             environment. This should underpin demand
                                                                                                          for quality accommodation by both
                                                                                                          corporate and leisure travellers.

                                                     Note: Jakarta refers to Upscale
                                                     Source: STR Global (YTD Jul 2017), BPS Statistics Indonesia, JLL
                                                     ADR - Average daily rate, RevPAR - Revenue per available room
Hotel Destinations – Asia Pacific    10

Kuala Lumpur
 Quick Facts
                                                                                                   OCC         ADR            RevPAR
 International Visitor Arrivals (YTD May 2017)              Number of New Rooms (2017)
                                                                                                   66.0%       MYR 534        MYR 353
 10.8 million*                                              1,527 rooms

Tourism                                              Demand
Total international visitor arrivals to            Although Singapore visitor arrivals have            New notable hotels
Malaysia have remained relatively stable           fallen 3.4% as at YTD May 2017, it remains
in 2017, recording a marginal decline of           Malaysia’s top international source market,         Sofitel Kuala Lumpur
0.9% y-o-y as at YTD May 2017 to record            accounting for 48.2% of total arrivals, or          Damansara
10.8 million. The fall has been attributed         5.2 million. Notable growth, however, has           312 rooms
primarily to the decline in Singapore visitor      continued in other key source markets from
arrivals who, buoyed by the strength of the        2016, namely Brunei, Thailand and China,            Element Kuala Lumpur
Singapore Dollar, have been choosing to            which registered y-o-y increases of 37.7%,          252 rooms
travel to other countries instead of Malaysia.     9.8% and 7.8% respectively as at YTD May
                                                                                                       Mercure Kuala Lumpur
Tourism Malaysia is targeting a total of 31.8      2017.
million international tourist arrivals in 2017,
                                                                                                       Shaw Parade
with tourism receipts of MYR 118 billion.                                                              213 rooms
                                                                                                       Hotel Stripes Kuala Lumpur
                                                                                                       184 rooms

                                                                                                       Upcoming hotels
Supply                                               Outlook                                           W Kuala Lumpur
                                                                                                       Sherataon Petaling Java
Approximately 961 rooms in four hotels             The threat of oversupply continues to weigh
have been added to supply in Kuala                 on the Kuala Lumpur market, with close to           Alila Bangsar
Lumpur as of August 2017. This includes            6,000 hotel rooms currently in the pipeline         Citizen M Kuala Lumpur
the 312-room Sofitel Kuala Lumpur                  between 2018 and 2020. While trading
Damansara, the 252-room Element Kuala              performance has seen some improvement               Four Seasons Place Kuala Lumpur
Lumpur, the 213-room Mercure Kuala                 in 2017, the anticipated influx of new supply
Lumpur Shaw Parade and the 184-room                will place further pressure on hoteliers to
Hotel Stripes Kuala Lumpur. A further 566          remain rate competitive.
rooms in two hotels are expected to open                                                               Notable hotel deals
before the end of 2017.                                                                                There were no hotel Transactions
                                                                                                       in H1 2017

Note: Kuala Lumpur refers to Luxury & Upscale
Source: STR Global (YTD Jul 2017), Tourism Malaysia, JLL
ADR - Average daily rate, RevPAR - Revenue per available room
*International visitor arrivals across Malaysia
11        Hotel Destinations – Asia Pacific

     Macau
     Quick Facts
                                                                                                       OCC        ADR              RevPAR
     International Visitor Arrivals (YTD June 2017)       Number of New Rooms (2017)
                                                                                                       87.2%      MOP 1,341 MOP 1,169
     15.6 million                                         6,185 rooms

                                                      Tourism                                             Demand
New notable hotels                                    As at YTD June 2017, international visitor        As at YTD June 2017, Mainland China
                                                      arrivals to Macau increased marginally to         remains Macau’s top source market,
The Macau Roosevelt                                   15.6 million arrivals y-o-y (from 14.8 million    contributing a total of 10.3 million visitors,
368 rooms                                             arrivals one year prior). According to the        or 66.4% to the total visitor arrivals,
                                                      Macau Statistics and Census Service, as at        followed by Hong Kong, which accounts
The Legend Palace Hotel                               the end of 2016 there were 107 operating          for as much as 20.0% of total visitor
223 rooms                                             hotel establishments with a total of 36,278       arrivals. Combined, these two source
                                                      rooms. The Macau hotel market outlook             markets comprise approximately 86.4% of
                                                      is expected to remain cautious due to the         total visitor arrivals as at YTD June 2017.
                                                      uncertainty of the Mainland China market,         Following a drastic fall in 2015, the Mainland
Upcoming hotels                                       the incoming hotel pipeline, and increasing       Chinese market gained some momentum in
                                                      competition from other casino and resort          December 2016, growing by 7.8% compared
Lisboa Palace Hotel
                                                      markets such as Singapore, Malaysia, and          to December 2015, ending the year with a
MGM Cotai                                             South Korea.                                      0.2% marginal improvement.

Morpheus Macau
W Hotel Macau Studio City

                                                      Supply                                              Outlook
Palazzo Versace Macau

Notable hotel deals                                   While most of the hotel projects were             With the continuous growth of Mainland
                                                      previously on the Macau Peninsula, future         China’s economy, we are cautiously
Landmark Hotel Macau                                  hotel supply is primarily located on the          optimistic that hotel performance will
                                                      Cotai Strip which connects Coloane and            return to stabilised levels over the medium
Hotel Lan Kwai Fong Macau
                                                      Taipa Islands. According to the Land, Public      to long term, since Macau has proven itself
                                                      Works and Transport Bureau, as at Q1 2017,        to be a favourable destination for Mainland
                                                      a total of 17 hotels with 5,153 rooms were        Chinese visitors and MICE organisers for its
                                                      under construction, with a further 33 hotels      accessibility and established infrastructure.
                                                      (7,840 rooms) under planning stage.               Recently, a noticeable increase in VIP
                                                                                                        gambling numbers is a welcome sign that
                                                                                                        the market is in recovery.

                                                      Note: Macau refers to Marketwide
                                                      Source: STR Global (YTD Jul 2017), Macau Government Tourism Office, JLL
                                                      ADR - Average daily rate, RevPAR - Revenue per available room
Hotel Destinations – Asia Pacific   12

Maldives
 Quick Facts
                                                                                                     OCC       ADR             RevPAR
 International Visitor Arrivals (YTD June 2017)                Number of New Rooms (2017)
                                                                                                     62.2% USD 668             USD 416
 658,000                                                       1,113 rooms

Tourism                                                Demand
As at YTD June 2017, international arrivals          As at YTD June 2017, the market continued           New notable hotels
registered around 658,000 with 6.1%                  to see the revitalisation of the Russian
growth over the same period last year.               inbound market, increasing by 36.8%                 Cocoon Resort
Under the tagline “Maldives - the sunny              y-o-y. Other top source markets which               150 rooms
side of life”, efforts will continue in 2017 to      grew strongly included Italy (+25.6%), India
market the Maldives as a destination to a            (+24.7%) and the USA (+19.4%). Some top             Grand Park Kodhipparu
global audience. To support these efforts,           source markets saw a drop in arrivals,              120 rooms
in February 2017 the Maldives Marketing              including Mainland China (-10.3%) and               St Regis Vommuli Resort
and Public Relations Corporation officially          Germany (-0.4%). Despite this, Mainland
                                                                                                         77 rooms
launched the “Story of the Maldives”                 China remained the top source market to
campaign 2017/2018.                                  the Maldives accounting for 21.5% of all            Soneva Jani
                                                     international visitor arrivals as at YTD June       25 rooms
                                                     2017.
                                                                                                         Four Seasons Private Island at Voavah
                                                                                                         7 rooms

                                                                                                         Upcoming hotels
Supply                                                 Outlook                                           Noku Maldives
                                                                                                         (former Zitahli Resort & Spa)
According to the Ministry of Tourism, a              Despite the challenging macro environment,
total of 126 resorts with 26,933 beds, 16            the Maldives government remains                     Mercure Maldives Kooddoo
hotels with 1,713 beds, 382 guest houses             committed to growing and investing in its           Gran Melia Maldives
with 5,884 beds and 144 safari vessels with          tourism market. Looking forward, while the
2,694 beds were registered in the Maldives           operating market is likely to be challenging        Fushifaru Maldives
as of December 2016. In 2016 there were 12           in the short term, it is anticipated that
major resort openings, increasing supply             increased marketing campaigns, paired
by 919 rooms, an average of 77 rooms per             with ongoing tourism infrastructure
resort, such as Finolhu, Amari Havodda,              improvements and increased airlift from             Notable hotel deals
Furaveri Island Resort & Spa, Kudafushi              other markets will benefit the medium to
                                                                                                         Grand Park Kodhipparu
Resort & Spa, OZEN by Atmosphere, St Regis           long term prospects of the Maldives.
Vommuli Resort, Milaidhoo Island, Soneva
Jani and the Four Seasons Private Island at
Voavah.

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

     Manila
     Quick Facts
                                                                                                       OCC            ADR             RevPAR
     International Visitor Arrivals (YTD June 2017)       Number of New Rooms (2017)
                                                                                                       67.5%          USD 103         USD 70
     3.4 million                                          2,991 rooms

                                                      Tourism                                              Demand
New notable hotels                                    Following the record growth in 2016,               As at YTD June 2017, South Korea was
                                                      international visitor arrivals to the              the largest tourism source market to the
Okada Manila                                          Philippines have continued to grow strongly        Philippines, with total arrivals of 0.8 million,
993 rooms                                             increasing by 12.7% y-o-y to reach 3.4             or 23.7% of the total. Strong growth was
                                                      million, as of YTD June 2017. The positive         seen in key source markets, notably China
Seda Vertis North                                     figures were attributed to improved                which increased 33.4% y-o-y. This follows
438 rooms                                             tourism marketing efforts and a series of          the lifting of travel advisories against visits
Valero Grand Suites                                   international events such as the ASEAN@50          to the Philippines following President
                                                      meetings. The surge in arrivals were               Rodrigo Duterte’s state visit to China in
271 rooms
                                                      attributed to strong performance in tourist        October 2016. India and South Korea also
Hop Inn Makati Avenue Manila                          arrvials from emerging countries, China in         registered strong growth of 18.4% and
144 rooms                                             particular.                                        15.9% y-o-y, respectively.

Upcoming hotels
Grand Hyatt Manila
Savoy Hotel Newport City
Sheraton Manila
                                                      Supply                                               Outlook
Seda Circuit Makati                                   Approximately four hotels representing             The outlook for tourism remains bright for
                                                      1,846 rooms have opened in Manila in 2017          the Philippines, amidst continued marketing
Seda Bonifacio Global City Extension
                                                      to date. The majority of the rooms come            efforts and infrastructural developments
                                                      from the 993-room Okada Manila which               to support the industry. However, the
                                                      opened in March 2017 in the Manila Bay             impact of the recent terror attacks in the
Notable hotel deals                                   Area. Other hotels include the 438-room            country remains to be seen amid concerns
                                                      Seda Vertis North, 271-room Valero Grand           around safety and security. Tourists will
There were no hotel transactions                      Suites and the 144-room Hop Inn Hotel              need reassuring that the attacks in Marawi
in H1 2017                                            Makati Avenue Manila. A further 1,145              City and Resorts World Manila are isolated
                                                      rooms in two hotels are expected to open           incidents.
                                                      before the end of 2017.

                                                      Note: Manila refers to Marketwide
                                                      Source: STR Global (YTD Jul 2017), Philippines Department of Tourism, JLL
                                                      ADR - Average daily rate, RevPAR - Revenue per available room
Hotel Destinations – Asia Pacific     14

Melbourne
 Quick Facts
                                                                                                     OCC         ADR           RevPAR
 International Visitor Arrivals (YTD Mar 2017)               Number of New Rooms (2017)
                                                                                                     85.6%       AUD 200       AUD 172
 1.7 million                                                 273 rooms

Tourism                                               Demand
In 2016, visitor arrivals totalled 6.6 million      While visitation remains largely domestic,           New notable hotels
in Melbourne City representing 6.7% of all          Mainland China is the City’s largest
visitor arrivals in Australia. As at YTD March      inbound market, contributing 32.9% of all            Four Points by Sheraton
2017, visitor arrivals to Melbourne City            international visitor arrivals as at YTD March       273 rooms
achieved strong growth, increasing 16.0%            2017. A strong calendar of international
y-o-y to a total of 1.7 million. International      events in the first half of 2017 has
visitor arrivals accounted for 31.0% (5.1%          contributed to the growth in international
increase y-o-y) and domestic nights 69.0%           demand, including the Melbourne                      Upcoming hotels
(17.4% increase y-o-y).                             International Comedy Festival, Australian
                                                    Open and Formula One Australian Grand                Ibis & Novotel Little Lonsdale Street
                                                    Prix.                                                Novotel Southbank Melbourne
                                                                                                         Shama Luxe Aurora Melbourne Central
                                                                                                         Quest New Quay Docklands
                                                                                                         W Melbourne

Supply                                                Outlook                                            Notable hotel deals
                                                                                                         Hilton South Wharf
Approximately 427 rooms have been added             The market buoyancy of recent years is
into the market in 2016, most of which are          anticipated to moderate over the medium
upscale/luxury properties in the Melbourne          term as Melbourne’s development pipeline
CBD and Docklands area. During the first            continues to build. A significant number
half of 2017, the Four Points by Sheraton           of large mixed use developments and
Docklands has also opened. We are                   standalone hotel projects are concentrated
aware of six short-term accommodation               around the CBD and Docklands area and
developments currently under construction           are likely to commence operations in the
and due for completion by 2020. If all              five years to 2022. Over the medium to long
projects materialise, this will represent           term, significant projects of note include
an increase of 1,719 rooms or 8.8% on the           the redevelopment of the Melbourne
existing stock.                                     Convention & Exhibition Centre (MCEC) and
                                                    Docklands precinct as well as the proposed
                                                    airport runway extension.

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

     Osaka
     Quick Facts
     International Accomodation Guest         Number of New Rooms                              OCC             ADR            RevPAR
     (YTD June 2017)                          (2017)
                                                                                               83.0%           JPY 23,193     JPY 19,248
     2.9 million                              1,205 rooms

                                               Tourism                                             Demand
New notable hotels                             As at YTD June 2017, a total of 8 million          The growth in international accommodation
                                               visitor nights were spent in Osaka City.           guests has slowed down in the recent
Candeo Hotel Osaka Namba                       International accommodation guests which           months while visitor arrivals to Japan
496 rooms                                      accounts for 36.1% of total accommodation          continue to grow. It is believed that excess
                                               guests in Osaka, increased by 6.7% y-o-y           demand is being absorbed by alternative
The Singulari Hotel & Sky Spa                  to 2.9 million. The number of domestic             accommodation options such as Airbnb. As
390 rooms                                      accommodation guests also increased                at YTD July 2017, RevPAR remains stable,
Conrad Osaka                                   by 2.6% y-o-y to 5.1 million.                      recording a slight y-o-y decline of 0.4%.
164 rooms

Upcoming hotels
Moxy Osaka Honmachi
Hotel Universal Port #2
Yodoyabashi Umeda Tower
APA Hotel Mido-suji
Honmachi Tower
                                               Supply                                              Outlook
Shin Imamiya by Hoshino Resort                 The major new supply in 2Q 2017 include            Osaka is expected to benefit from
                                               the 167-room Conrad Osaka, the 496-room            continued growth in visitor arrivals as
                                               Candeo Hotel Osaka Namba and the                   the city is gaining popularity as a tourism
                                               390-room Singulari Hotel and Sky Spa.              destination. The new international low cost
Notable hotel deals                            Although, there have been limited new              carrier terminal at Kansai International
                                               additions to the supply of full-service            Airport and the expansion of Universal
Tenmabashi Grand Hotel Osaka                   hotels, more than 22,000 additional limited-       Studios Japan are strong growth drivers for
Dojima Hotel                                   service hotel rooms are anticipated in the         Osaka. On the other hand, new supply is
                                               foreseeable future.                                expected to partially offset the benefits of
                                                                                                  demand growth.

                                               Note: Osaka Hotels refers to Upscale
                                               Source: STR Global (YTD July 2017), Japan Tourism Agency, JLL
                                               ADR - Average daily rate, RevPAR - Revenue per available room
Hotel Destinations – Asia Pacific         16

Phuket
 Quick Facts
                                                                                                           OCC         ADR            RevPAR
 International Visitor Arrivals (YTD July 2017)             Number of New Rooms (2017)
                                                                                                           78.5%       THB 4,042      THB 3,175
 2.6 million                                                1,418 rooms

Tourism                                              Demand
International arrivals through Phuket              Mainland China was the largest source                          New notable hotels
airport registered 29.2% y-o-y growth,             market in 2016, albeit a slowdown in
reaching 2.6 million as at YTD July 2017.          growth. Russian arrivals saw significant                       The SIS Resort
Chinese visitors have began showing                y-o-y improvement of 25.1% in 2016 and                         124 rooms
a pickup since the zero-dollar tours               remained the second largest source market.
crackdown in 4Q2016 which impacted                 Australia, the third largest source market,                    MAI HOUSE Patong Hill
arrivals in 1H2017.The growth in arrivals          continued to be on a downward trend with                       79 rooms
has also been supported by the resurgence          arrivals declining by 9.3% y-o-y in 2016.
of Russian visitors due to the steady
appreciation of the Ruble.
                                                                                                                  Upcoming hotels
                                                                                                                  Rosewood Phuket
                                                                                                                  The Hermitage Kata - Phuket
                                                                                                                  Mövenpick Resort Mai Khao Phuket
                                                                                                                  (Formerly D Varee Mai Khao Beach
                                                                                                                  Phuket Resort)

Supply                                               Outlook
                                                                                                                  Notable hotel deals
Phuket has seen few openings since the             With China becoming the island’s biggest
beginning of 2017 with 304 rooms being             source market in recent years, hotel rates                     There were no hotel transactions
added to the market. Over 1,100 rooms              have been on pressure. However, the crack                      in H1 2017
are however slated to open by end-2017.            down on zero-dollar tours is expected to
Future openings are concentrated in the            lead to an improvement in the long run.
upscale segment and Patong area. Notable           Phuket’s infrastructure improvement
upcoming openings include The Hermitage            projects are expected to relieve the traffic
Kata, Rosewoood Phuket and Movenpick               congestion on the island and further boost
Resort Mai Khao Phuket which will be a             its tourism sector. The much-anticipated
rebrand of D Varee Mai Khao Beach Phuket           Light Rail Transit (LRT), extending across
Resort.                                            Phuket to the southern tip of Phang Nga,
                                                   has been set for construction in 2018 with
                                                   opening year in 2021.

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

     Seoul
     Quick Facts
                                                                                                 OCC            ADR           RevPAR
     International Visitor Arrivals (YTD July 2017) Number of New Rooms (2017)
                                                                                                 72.2%          KRW 95,953 KRW 69,290
     7.7 million                                2,308 rooms

                                                Tourism                                              Demand
New notable hotels                              Following heightened tensions between              While Mainland China experienced
                                                Mainland China and South Korea,                    significant falls, growth was seen from
Meridian Seoul (Rebranded from the              international tourist arrivals registered a        some of the other key tourism source
Ritz Carlton Seoul)                             20.9% y-o-y decline as at YTD July 2017 to         markets to South Korea. As at YTD July
336 rooms                                       7.7 million. This was primarily attributed         2017, growth was led by Russia and Taiwan,
                                                to the 46.5% contraction in arrivals from          which increased 17.5% and 12.3% y-o-y,
LOTTE Signiel Hotel Seoul                       Mainland China. Despite this, China                respectively. Japan, South Korea’s second
235 rooms                                       still remains the top source market for            largest source market, also increased 2.8%
                                                international visitor arrivals to the country.     y-o-y to 1.25 million during the same period.
Aloft Hotel Seoul Myeongdong
223 rooms

Upcoming hotels
Park Hotel Yeongdeungpo
Seoul Dragon City
Four Points by Sheraton
Seoul Gangnam                                   Supply                                               Outlook
Fairmont Ambassador Seoul
                                                So far in 2017, two new hotels have                The significant decrease in visitation from
                                                opened, namely the 223-room Aloft Seoul            Mainland China as a result of political
                                                Myeongdong and the 235-room Lotte Signiel          tensions between the two countries will
Notable hotel deals                             Hotel Seoul. A further five hotels providing       continue to affect hotel performance. The
                                                1,850 rooms are expected to open by the            impact of this will continue to be most
Hotel Ellui                                     end of the year. Four of these new hotels          keenly felt in the midscale and budget hotel
                                                will operate under the Accor umbrella at           segments. In addition, heightened tensions
Nine Tree Premier
                                                Seoul Dragon City in Yongsan and are due           with North Korea may also deter visitor
Hotel Myeongdong II                             to open in October 2017.                           arrivals. Both disruptions are expected to
                                                                                                   be short term in nature and the outlook
                                                                                                   for future growth is strong following the
                                                                                                   normalization of these events.

                                                Note: Seoul refers to Midscale & Economy
                                                Source: STR Global (YTD Jul 2017), Seoul Tourism Board, JLL
                                                ADR - Average daily rate, RevPAR - Revenue per available room
Hotel Destinations – Asia Pacific      18

Seychelles
 Quick Facts
                                                                                                      OCC         ADR            RevPAR
 International Visitor Arrivals (YTD July 2017)            Number of New Rooms (2017)
                                                                                                      61.6%       USD 923        USD 568
 199,796                                                   Nil

Tourism                                               Demand
The Seychelles welcomed approximately                Europe remains the dominant source                   New notable hotels
303,000 visitors in 2016, a 10% increase             market to the Seychelles with Germany,
compared to 276,000 the previous                     France, Italy and the United Kingdom                 There were no new hotel openings
year. Visitor arrivals continued to surge            together accounting for approximately 38%            in H1 2017
throughout the first seven months of 2017,           of all international arrivals as at July 2017.
achieving 21% y-o-y increase as at YTD July,         Demand from the UAE market recorded
boosted by increased flight connectivity             robust growth of 24.2% y-o-y as at YTD July
and improved destination marketing.                  2017, supported by direct flights to Dubai,          Upcoming hotels
                                                     Doha and Abu Dhabi in under four hours.
                                                     The ministry of tourism is also targeting            Four Seasons Desroches Island
                                                     visitor arrivals from Asia, with the recent
                                                     introduction of one-stop flights to Beijing
                                                     and chartered flights to Chengdu.
                                                                                                          Notable hotel deals
                                                                                                          There were no hotel transactions
                                                                                                          in H1 2017

Supply                                                Outlook
In line with the nation’s framework to               Tourism fundamentals to the island
protect the environment and encourage                nation remains strong, supported by ever
sustainable development, the government              increasing flight connectivity and growing
introduced a moratorium on large hotel               destination awareness. Air Seychelles
development in 2015, defined as properties           continues to expand direct flights and
having 25 rooms or more. Recently, the               codeshare agreements, which is helping to
government has decided to extend the                 drive visitor arrivals from the major source
moratorium until the end of 2020 which               markets in Europe, Middle East and Africa,
will limit new hotel supply coming into the          as well as tapping into new source markets
market over the medium term.                         in Asia, including China, India and Sri Lanka.
                                                     With limited hotel supply in the horizon,
                                                     due to the moratorium, hotel trading
                                                     performances are likely to remain strong in
                                                     the short to medium term.

Note: Seychelles refers to Five-star
Source: STR Global (YTD Jun 2017), Seychelles National Bureau of Statistics, JLL
ADR - Average daily rate, RevPAR - Revenue per available room
19        Hotel Destinations – Asia Pacific

     Shanghai
     Quick Facts
                                                                                                       OCC         ADR               RevPAR
     International Visitor Arrivals (YTD July 2017)       Number of New Rooms (2017)
                                                                                                       73.6%       RMB 1,061 RMB 781
     4.2 million                                          3,318 rooms

                                                      Tourism                                             Demand
New notable hotels                                    YTD July 2017 data from the Shanghai               As a core commercial hub in the Yangtze
                                                      Tourism Bureau showed 4.2 million in               River Delta, corporate demand continues
St. Regis Shanghai Jingan                             international visitor arrivals which amounts       to be the key driver for Shanghai’s hotel
491 rooms                                             to a 3% increase y-o-y. This improvement           market. In particular, the MICE segment
                                                      can be mainly attributed to strong visitor         continues to grow from strength to strength.
Cordis Shanghai Hongqiao                              growth from Japan and the USA, rising              On the other hand, the opening of Shanghai
396 rooms                                             16.1% and 5.3% respectively. Korean                Disney Resort has generated considerable
W Shanghai The Bund                                   visitation continued falling due to the            leisure demand especially amongst high
                                                      tension existing between both countries.           spending individual domestic and regional
374 rooms
                                                                                                         travelers.
Hyatt Regency Shanghai
Globar Harbor
318 rooms
Melia Shanghai Hongqiao
187 rooms

Upcoming hotels
Bvlgari Shanghai
                                                      Supply                                              Outlook
                                                      There were ten hotels with 3,318 rooms that        From 2018 onwards, an influx of new hotels
The Sukhothai                                         commenced trading during the first half            is set to enter the Shanghai market. We
Dusit Thani Shanghai Zhabei                           of 2017, seven positioned in the upscale           believe trading performance should still
                                                      category and three, midscale. In May 2017,         trend upwards supported by a steady
The Middle House                                      the St. Regis set its first footprint on the       stream of travelers across both corporate
                                                      Shanghai market located in the core area           and leisure demand segments. Additionally,
                                                      of downtown Puxi and a room inventory of           the upcoming opening of Shanghai Polar
                                                      491. There are 7 hotels with around 1,218          Ocean Park is expected to further boost the
Notable hotel deals                                   rooms slated to open over the balance of           city’s leisure tourism offer, further adding to
                                                      2017. However, a delay is expected for many        Disney Resort as a major drawcard in China.
There were no hotel transactions
                                                      of these projects due to developers’ variable
in H1 2017                                            market strategies.

                                                      Note: Shanghai refers to Upscale
                                                      Source: STR Global (YTD Jul 2017), Shanghai Tourism Bureau, JLL
                                                      ADR - Average daily rate, RevPAR - Revenue per available room
Hotel Destinations – Asia Pacific      20

Singapore
 Quick Facts
                                                                                                   OCC        ADR             RevPAR
 International Visitor Arrivals (YTD June 2017)        Number of New Rooms (2017)
                                                                                                   83.7%      SGD 252         SGD 211
 8.5 million                                           3,122 rooms

Tourism                                             Demand
Growth in visitor arrivals continued on a         As of YTD June 2017, Mainland China                  New notable hotels
positive trajectory to a high of 8.5 million      is Singapore’s largest source market
as of YTD June 2017, a 4.5% increase              contributing 18.2% to total visitor arrivals         Aqueen Hotel Little India
Y-O-Y. Strong arrival numbers are a result        with a 5.4% increase y-o-y. In comparison,           70 rooms
of successful marketing initiatives by            the traditional top source market of
the Singapore Tourism Board (STB). This           Indonesia contributed to 17.2% in visitor            The Warehouse Hotel
performance confirms that Singapore is            arrivals and recorded an increase of                 37 rooms
well on its way to achieve the STB’s growth       4% y-o-y. Top growth markets for the                 Villa Samadhi
forecast in tourist arrivals of 16.4-16.7         nation were India(15.0%), the USA (9.4%)
                                                                                                       20 rooms
million by the end of 2017.                       and UK (6.6%) respectively. Growth in
                                                  India and China can be attributed to the             Hotel Nuve Heritage
                                                  STB's agressive marketing campaigns to               19 rooms
                                                  tourist from tier 2 and tier 3 cities of these
                                                  countries.

                                                                                                       Upcoming hotels

Supply                                              Outlook
                                                                                                       Courtyard by Marriott
                                                                                                       Singapore Novena
                                                                                                       The Duxton Club (The Duxton House)
446 rooms entered the market as of YTD            The market is nearing the end of a
September 2017. As a whole, 2017 is               protracted rise in new hotel supply. The             Yotel Orchard Road
expected to see a total supply influx of          number of new hotels opening post-2018               Sofitel Singapore City Centre
3,122 rooms which will lead to a 5%               is substantially less when compared to the
increase in total number of keys in the           supply wave witnessed over the past two              InterContinental Robertson Quay
market. A majority of the new stock arises        years. On the whole, Singapore’s outlook
from the midscale and upscale market              is positive with trading performance
which is in line with falling corporate           comparing favourably to many regional
budgets and the rise of regional leisure          financial hub markets.                               Notable hotel deals
tour groups who tend to prefer more                                                                    There were no hotel transactions
affordable accommodations.
                                                                                                       in H1 2017

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

     Sri Lanka
     Quick Facts
                                                                                                      OCC            ADR                RevPAR
     International Visitor Arrivals (YTD July 2017)      Number of New Rooms (2017)
                                                                                                      66.4%          USD 111            USD 73
     1.2 million                                         1,544 rooms

                                                      Tourism                                             Demand
New notable hotels                                    As at YTD July 2017, international visitor         As at YTD July 2017, India was the top
                                                      arrivals to Sri Lanka reached 1.2 million, an      source market to Sri Lanka, accounting
Movenpick City Hotel Colombo                          increase of 3.6% y-o-y, fuelled by sustained       for 16.6% of the overall total. Second to
219 rooms                                             demand from traditional (UK, Germany               India is Mainland China, which accounts for
                                                      and France) European markets. Sri Lanka            13.4%. Third is the United Kingdom which
Marriott Weligama                                     has set a target of 2.5 million international      comprises 9.8% and enjoyed growth of 8.0%
198 rooms                                             visitor arrivals in 2017 and a medium-term         y-o-y. Significant y-o-y growth was also
Amari Galle                                           goal of 4.2 million by 2020.                       seen in visitors from Russia (+11.8%) and
                                                                                                         Australia (+8.6%).
172 rooms
Jetwing Colombo Seven
80 rooms
Mandarina Colombo
80 rooms

Upcoming hotels
Shangri-La Colombo                                    Supply                                              Outlook
Sheraton Colombo
                                                      Approximately 774 rooms in six hotels have         Hotel development continues apace
The Hotel Colombo                                     been added to supply in Sri Lanka in 2017          within Sri Lanka, with around 2,585
                                                      to date. This includes the 80-room Jetwing         rooms expected to open between 2018
DoubleTree by Hilton Colombo                          Colombo Seven, the 80-room Mandarina               and 2020. Major international operators
International Airport                                 Colombo, the 291-room Movenpick City               such as Hilton, which recently announced
                                                      Hotel Colombo, the 172-room Amari Galle,           seven new properties in the country, are
                                                      the 25-room Sunhill Hotel in Mount Lavinia         continuing to expand their presence. This,
                                                      and the 198-room Marriott Weligama.                combined with continued improvements
Notable hotel deals                                   A further 770 rooms in two hotels are              in international connectivity and domestic
                                                      expected to open before the end of 2017.           infrastructure, will help to support
There were no hotel transactions
                                                      This includes the landmark 500-room                increasing tourism within the country.
in H1 2017
                                                      Shangri-La Hotel Colombo at One Galle
                                                      Face.

                                                      Note: Sri Lanka refers to Marketwide
                                                      Source: STR Global (YTD Dec 2016), Sri Lanka Tourism Development Authority, JLL
                                                      ADR - Average daily rate, RevPAR - Revenue per available room
Hotel Destinations – Asia Pacific    22

Sydney
 Quick Facts
                                                                                                  OCC         ADR            RevPAR
 International Visitor Arrivals (YTD March 2017)         Number of New Rooms (2017)
                                                                                                  89.4%       AUD 254        AUD 227
 678,000                                                 816 rooms

Tourism                                             Demand
For the YTD March 2017, 11.4 million visitor       Mainland China is Sydney’s largest                 New notable hotels
nights were recorded in Sydney City. This          source market, contributing 25.5% of all
represents 6.4% of the total visitor nights        international visitor nights for the year to       There were no new hotel openings
in Australia with international visitor            date March 2017, while also representing           in H1 2017
nights accounting for 75.1% and domestic           growth of 25.5% year on year. The next
nights 24.9% of the total visitor nights           greatest sources of visitation were the UK
within Sydney. International visitor nights        (10.7%), the USA (8.4%) and Japan (6.6%).
recorded a 4.9% Y-O-Y increase to 8.5              Within the current market, demand is               Upcoming hotels
million visitor nights with domestic visitor       outstripping supply growth (in terms of
nights increasing by 27.3% to 2.8 million          rooms built) resulting in a strong trading         Sofitel Sydney Darling Harbour
visitor nights.                                    environment.                                       Crowne Plaza Sydney
                                                                                                      SKYE Hotel Suites Sydney
                                                                                                      Meriton Sydney Sussex Street

Supply                                              Outlook                                           Notable hotel deals
                                                                                                      Four Points by Sheraton
During the first half of 2017 we are aware of      The outlook for Sydney’s accommodation             Sydney Central Park
no new hotel openings within Sydney City.          market remains strong. Both occupancy and          Intercontinental Sydney Double Bay
However, there are six accommodation               ADR are at record levels on a moving annual
developments currently under construction          average basis, with ADR growth expected to
and due for completion the next two                further improve in line with the consistent
years. If all six projects materialise, this       supply outlook and a more stable demand
will represent an increase of 1,256 rooms          environment with growth across a variety
or 7.2% on the existing stock as at 31             of segments including corporate, cruise and
July 2017. For the second half of the year         inbound. Occupancy is predicted to remain
we expect 816 rooms to be added to the             in the high 80% range in the coming years,
market.                                            further strengthening RevPAR.

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

     Taipei
     Quick Facts
                                                                                                     OCC           ADR              RevPAR
     International Visitor Arrivals (YTD June 2017)         Number of New Rooms (2017)
                                                                                                     68.1%         TWD 6,966        TWD 4,742
     5.1 million                                            661 rooms

                                                      Tourism                                          Demand
New notable hotels                                    Total visitor arrivals to Taiwan reached        Mainland China remains Taiwan’s largest
                                                      approximately 5.1 million (YTD June 2017),      source market, amounting to almost a
Aloft Taipei Beitou                                   down 5.7% over the same period in 2016          quarter of total visitor arrivals. To cover the
292 rooms                                             due to the decline of the Mainland Chinese      decline in the Mainland Chinese market,
                                                      market. Due to the tensions between the         Taiwan’s government has been actively
CitizenM Taipei North Gate                            cross strait relations between Taiwan and       promoting to other source markets. In
267 rooms                                             Mainland China, visitors from Mainland          September 2016, visa restrictions to Taiwan
S Hotel                                               China declined significantly by 40.1% y-o-y.    were eased for citizens of ASEAN nations,
                                                                                                      and as a result, the Southeast Asia market
102 rooms
                                                                                                      has grown by 16.1% in 2016. As at YTD June
                                                                                                      2017, the emerging Vietnamese market
                                                                                                      grew by a staggering 113.4% y-o-y and
Upcoming hotels                                                                                       Thailand market grew by 82.2% y-o-y.

Courtyard by Marriott
Taipei Downtown
Renaissance Hotel Taipei
MITSUI Garden Hotel Taipei
Hotel Indigo Taipei
                                                      Supply                                           Outlook
                                                      As at YTD June 2017, a total of 558 hotels      The Taiwanese government has expanded
                                                      with 36,594 rooms were recorded. Taipei         on other key source markets such as the
                                                      hotel supply is characterised by the            ASEAN nations, Japan and South Korea, all
Notable hotel deals                                   dominance of independent and locally            of which have continued to exhibit positive
There were no hotel transactions                      branded hotels, with international hotel        growth as at YTD June 2017. Nevertheless,
in H1 2017                                            operators moving into the market only in        we are cautiously optimistic that the
                                                      recent years. As at the YTD August 2017,        government’s diversification efforts and
                                                      two international hotels were recorded to       the recent opening of the Taiwan Taoyuan
                                                      have opened – Aloft Hotel Taipei Beitou and     International Airport MRT will help anchor
                                                      CitizenM Taipei in Ximending.                   Taipei as a major tourism destination in
                                                                                                      Asia.

                                                 Note: Taipei refers to Luxury & Upper Upscale
                                                 Source: STR Global (YTD Jul 2017), Tourism Bureau, Ministry of
                                                 Transportation and Communications of the Republic of China, JLL
                                                 ADR - Average daily rate, RevPAR - Revenue per available room
Hotel Destinations – Asia Pacific      24

Tokyo
 Quick Facts
 International Accommodation Guest                         Number of New Rooms                    OCC        ADR             RevPAR
 (YTD June 2017)                                           (2017)
                                                                                                  82.3%      JPY 27,045      JPY 22,251
 9.2 million                                               749 rooms

Tourism                                             Demand
A total of 26.5 million visitor nights             In recent months trading performances              New notable hotels
were spent in Tokyo as at YTD June                 in Tokyo has improved due to a steady
2017, representing 13.1% of all visitor            increase in inbound visitors. This is in           Remm Roppongi
nights across Japan. International                 contrast to 2016 where hotel trading               400 rooms
accommodation guests, which contribute             performance in Tokyo showed a slow-down
34.8% of all accommodation guests in               due to higher room rates, diversification of       Moxy Tokyo Kinshicho Hotel
Tokyo increased 15.1% y-0-y to 9.2 million         tourists' destinations and the proliferation       205 rooms
while domestic accommodation demand                of alternative accommodation options such          TRUNK HOTEL
increased by 2.8% y-o-y to 17.3 million.           as Airbnb.
                                                                                                      15 rooms

                                                                                                      Upcoming hotels
                                                                                                      Hyatt Centric Ginza Tokyo
                                                                                                      Pullman Tokyo Tamachi
                                                                                                      The Strings Hotel Shinjuku

Supply                                              Outlook                                           Four Seasons Tokyo Otemachi
                                                                                                      Edition Tranomon
The only new supply in 2Q 2017 was the             Moving forward, Tokyo hotel trading
                                                                                                      Edition Ginza
15-room Trunk Hotel. There are a number            performances are expected to show further
of luxury hotel openings in the pipeline in        growth but at a slower pace than witnessed
anticipation of the 2020 Tokyo Olympics            over the past two years. Future, RevPAR
and the post-Olympics demand. Major new            improvement will likely be driven by ADR           Notable hotel deals
supplies include Hyatt Centric Ginza Tokyo         increases as occupancy is currently at a
and Pullman Tokyo Tamachi which are                relatively high level.                             There were no hotel transactions
scheduled to open in 2018. Two Editions                                                               in H1 2017
and the Four Seasons Otemachi are
scheduled to open in 2020.

Note: Tokyo Hotels refers to Upscale
Source: STR Global (YTD July 2017), Japan Tourism Agency, JLL
ADR - Average daily rate, RevPAR - Revenue per available room
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