In Focus: Singapore, Preparing for a Smart Future

In Focus: Singapore 2018 provides an overview of Singapore’s tourism landscape and hotel market performance, infrastructure development, trends in hotel technology, hotel transactions and investment in 2017 and outlook.
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Travelodge to bring back its brand to Kuala Lumpur with two new hotels in Q3 2018

Singapore-based Travelodge Hotels (Asia) Pte. Ltd. (“TLA”), a wholly-owned subsidiary of Singapore-listed ICP Ltd, has announced that it will be bringing back its brand to Kuala Lumpur with two new hotels in Q3 2018. The 203-key Travelodge Central Market will be located only ten minutes from Kuala Lumpur Sentral railway station and a stone’s throw away from the Central Market. Nearby, the newly renovated 168-key Travelodge Bukit Bintang will be situated in Kuala Lumpur’s Golden Triangle, minutes away from the Petronas Twin Towers and Jalan Alor. Both properties will have a fitness centre, self-service laundromats, and grab-and-go breakfast for all guests. TLA currently has five hotels in Asia with expansion plans in countries such as Japan, Vietnam, Singapore, and South Korea.

Changi Airport Group, Singapore Tourism Board, and Qantas announce S$5 million partnership to promote Singapore

Singapore-based Changi Airport Group (“CAG”), Singapore Tourism Board (“STB”), and Australia-based Qantas Airways (“Qantas”) have announced a three-year, S$5 million partnership to promote Singapore as a destination and as a gateway to other Asian and European destinations as well as Australia. The tripartite Memorandum of Understanding (MOU) will have the three parties working together on joint marketing campaigns in Australia, Southeast Asia, and the United Kingdom to promote travel on Qantas services via Singapore. This partnership builds on STB’s approach of cultivating strategic partnerships with airlines and industry partners to promote Singapore as a destination. As Qantas shifts the transit point for its Sydney-London services from Dubai to Singapore, Qantas will operate over 50 return services to and out of Changi Airport every week, making it one of the foreign airlines with the most flights at the airport. Also, London, as Changi Airport’s busiest long-haul destination, will have a total of 53 weekly services (roughly 19,600 one-way weekly seats) from Singapore.

Average Occupancy Rate of Chinese Star-Rated Hotels Registers 57.71% in Q4 2017

According to the China National Tourism Administration, a total of 9,775 star-rated hotels passed the examination of provincial tourism administrations in the fourth quarter of 2017, including 66 one-star hotels, 1,774 two-star hotels, 4,721 three-star hotels, 2,392 four-star hotels, and 822 five-star hotels. All these star-rated hotels generated a total revenue of RMB57.77 billion in the fourth quarter, of which the food & beverage and room revenues constituted RMB24.165 billion (41.83%) and RMB25.251 billion (43.71%), respectively. In the fourth quarter, the average room rate of all star-rated hotels was RMB352.23 per room night, average occupancy rate was 57.71%, revenue per available room (RevPAR) was RMB203.28, and average operating income per room was RMB39,322.08.

Red Planet Japan agreed sale-and-leaseback deal for four hotels with Goldman Sachs

Tokyo Stock Exchange listed Red Planet Japan Inc. (“Red Planet”), a subsidiary of Bangkok’s Red Planet Hotels has announced a US$111 million sale-and-leaseback transaction with US-based financial services company Goldman Sachs. As part of the transaction, Red Planet has sold ownership rights in four hotels in Asakusa, Naha, Nagoya and Sapporo, entering into a lease-and-operate agreement for an initial period of 20 years. In September 2016, Goldman Sachs invested US$70 million in Red Planet Hotels to fund its planned expansion. The hotel company currently has nine hotels in its development pipeline, with two under construction in Sapporo. Parent company Red Planet Hotels currently owns and operates 29 hotels in four countries.

Absolute Share Price Performance, as on 23 March 2018