Renaissance Hotel Kuala Lumpur Sold by IGB Corp for RM765 Million

Last week, IGB Corporation sold the 921-key Renaissance Hotel Kuala Lumpur (Renaissance KL) to Ventura International Sdn Bhd for RM765 million. A conditional sale and purchase agreement (SPA) was signed between IGB Corp’s wholly-owned subsidiary, Great Union Properties Sdn Bhd, and Ventura International. The hotel commenced operations in mid-1996 with an original investment of RM506.6 million and as at 31 December, 2015, the audited net book value of the asset, which includes all buildings, structures, plant, machinery and equipment as well as fitting, furnishings and fixtures, was RM667.2 million. As a result of the disposal, IGB Corporation expects to make a gain of RM85 million net of tax for the fiscal year ending December, 2017, which would improve its net assets per share and earnings per share by six sen. IGB intends to utilise the proceeds for working capital and to support its continued growth for suitable acquisitions or investments when such opportunity or opportunities arise. After the announcement of the proposed disposal, shares of IGB rose by 1.56% in early trade on 16 August.

First Four Points Hotel Opens in Jakarta

Starwood Hotels & Resorts Worldwide and PT Thamrin Ekspress Indonesia jointly announced the opening of the first Four Points property in Jakarta, Indonesia. Strategically located along JL M.H. Thamrin in Jakarta’s Central Business District, and half-a-mile north of the famous Selamat Datang roundabout, the Four Points Jakarta, Thamrin is in close proximity to multinational corporate offices, embassies, major retail malls, restaurants and bars. The hotel features 164 rooms, an all-day restaurant and three meeting spaces totalling 1,615 square feet, and is part of a 159,000 square foot mixed use development that consists of offices located on the upper floors of the building and the hotel. Starwood Hotels & Resorts currently has 19 properties in Indonesia, including 15 hotels under construction. In Jakarta, there are five Starwood properties and six more hotels in the pipeline, to open by 2020, including the debut of the Westin brand by August, 2016 and the Aloft brand by 2018.

Meliá Announces the Opening of Meliá Makassar and Meliá Yangon

In line with Meliá Hotels International’s expansion strategy in the Asia Pacific region, the company has recently announced the opening of the Meliá Yangon in Myanmar and the Meliá Makassar in Indonesia. The 430-room Meliá Yangon, Myanmar is strategically located on the Kaba Aye Pagoda Road and is within 15-minute drive of the Yangon International Airport, the city centre, and the iconic Shwedagon Pagoda. The hotel also features three restaurants and more than 2000 square meters of meeting and convention space. In Indonesia, Meliá continues to expand its footprint with the opening of the 135-key Meliá Makassar, the brand’s sixth property in the country. This new four-star hotel is 25 minutes away from the Sultan Hassanuddin International Airport, and in close proximity to Makassar’s main shopping and business district. Currently, Meliá has ten more hotels in the development pipeline in Indonesia.

Conrad Brand Debuts in Xiamen, China

The first Conrad hotel in Xiamen opened last week. The new Conrad Xiamen features 241 rooms, five top-end restaurants and lounges, 2000 square metre meeting space, a swimming pool, a fitness centre and a spa. The hotel is located from the 37th to the 54th floor of the Xiamen Shimao Tower, a 300-metre-high landmark in the city, which also offers shopping, leisure, business and other components. Situated in the Siming District – the political, economic, cultural and financial centre of Xiamen, it is in close proximity to the Xiamen University, Nanputuo Temple, Gulangyu Island and office areas. Conrad Xiamen is the first Conrad hotel in the Fujian Province and the sixth hotel in China, after the Conrad Hong Kong, Conrad Sanya Haitang Bay, Conrad Dalian, Conrad Macao, Cotai Central and Conrad Beijing.

Tourism in Thailand Likely to Take a Hit in the Short Term

The bomb attacks in seven southern provinces last week are likely to have serious repercussions on the tourism industry in Thailand, at least in the short term. According to the Tourism Council of Thailand, the country may experience a sharp drop in international tourists in the immediate future, especially to Phuket, Hua Hin, Krabi and such other tourist destinations. Similarly, Tourism Authority of Thailand (TAT) estimates that around 200,000 international tourists may cancel or postpone travel plans to Thailand, which could potentially reduce tourism earnings by more than five billion Thai Baht. The attacks came just less than a year after the Erawan Shrine explosion on 17 August, 2015. In the aftermath of last year’s attack, tourist arrivals dropped substantially to Bangkok for approximately six weeks; however, the country made a strong recovery during the last quarter of the year. In 2015, Thailand welcomed 29.88 million international tourists. TAT estimates international tourists will reach 33 million and will generate a total of 1.84 trillion Thai Baht in revenue by the end of this year.

Absolute Share Price Performance, as on 18 August 2016