HVS Asia Pacific Hospitality Newsletter - Week Ending 18 September 2020 (September 21, 2020)

HVS Monday Musings: Hotel Owners Should Think Like Institutional Owners in the Post-COVID Era

By Akash Datta and Dipti Mohan
Hotel owners need to don the hat of institutional investors now more than ever as creating a well-thought and well-researched ‘development-growth-exit’ strategy for their projects will become critical in capitalizing the asset in the post-COVID world.

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Singapore Increases MICE Event Attendees Limit to 250 from 1 October

Singapore Tourism Board (“STB”) has revealed that Meetings, Incentives, Conventions and Exhibitions (“MICE”) event organisers can apply to hold their event in Singapore with a maximum limit of 250 attendees from 1 October 2020. This was raised from a limit of 50 attendees previously set in July. Event organisers may proceed only upon obtaining Ministry for Trade and Industry’s (“MTI”) approval and must demonstrate their ability to implement Safe Management Measures. Minister of MTI, Chan Chun Sing, has shared that the purpose of this is to continue to strengthen Singapore’s position as the MICE location of choice and to revive the industry. STB has also mentioned that the decision takes into account the importance of the MICE industry, and the strong industry interest in and demand for business events. As part of the reopening, industry members and the government are working to roll out insurance for inbound travellers' critical Covid-related expenses by the fourth quarter. The Singapore Association of Convention and Exhibition Organisers and Suppliers will also launch a work plan in September with the STB and Enterprise Singapore.

South Australia Unveils AUD20 Million Boost for Regional Tourism

The South Australian Tourism Commission (“SATC”) has unveiled an AUD20 million (USD14.6 million) support package to encourage private investment in demand-driving regional tourism infrastructure, create jobs and aid Covid recovery. Grants from AUD20,000 to AUD500,000 are available for new and improved regional accommodation, as well as quality tourism products and experiences that attract more visitors and a higher return. According to Premier Steven Marshall, the programme will span over two years to assist regional tourism businesses to recover quicker and stronger and it is expected to directly create 1,400 ongoing jobs in the sector. It is part of a suite of support packages aimed at the tourism sector, which has been significantly impacted by bushfires and Covid-19. Applications to the Tourism Industry Development Fund are limited to private sector businesses. Projects must commence within three months from time of a successful application. A maximum of 30% state government funding will be committed to the total project value. The funding programme has commenced and will run until 31 March 2022 or until all funds have been allocated.

USD50 Million Beach Golf Course to be Built in Đà Nẵng

The Đà Nẵng’s People’s Committee has approved plans for a 36-hole golf course to be developed by Vietnam-based property developer, VinaCapital Group (“VinaCapital”). According to the city’s planning and investment department, the golf course will cover 22-hectares in the Ngũ Hành Sơn district with an estimated investment of VND1.168 trillion (USD50.8 million). The project will include four-star hotels and villas featuring 500 rooms, a tourism village and entertainment centres. The department shared that the project would enhance the booming golf resorts and tourism projects that will be developed along 30-kilometres of beaches from Đà Nẵng to Hội An in the future. The city also shared that VinaCapital has invested USD200 million in beach resorts, golf courses and apartment complexes in Đà Nẵng. At a conference last year, seven golf courses in central Vietnam agreed to join hands to form a new golf-specific marketing group – the Vietnam Golf Coast. Đà Nẵng alone earned USD68 million annually from golf tourism, and the city expects to increase to USD186 million in the future. The International Association of Golf Tour Operators in co-operation with Đà Nẵng’s Tourism department has built a strategy to develop golf tourism for Đà Nẵng from 2017 to 2022.

Accor to Manage AUD300 Million Port Douglas Resort under Fairmont Brand

Australia-based property developer, Chiodo Corporation, has announced that France-based multinational hospitality group, Accor S.A., will manage the AUD300 million Port Douglas Resort as Australia’s first Fairmont Hotel. Nestled between two UNESCO World Heritage sites – the Great Barrier Reef and the Daintree Rainforest, the 253-key Fairmont Port Douglas is designed sustainably to complement the natural environment. It is the first hotel in the region to achieve Ecotourism Australia’s Eco Destination Certificate. The resort will feature multiple swimming pools, several restaurants and bars, a treetop walk attraction, a day spa and conference facilities. Slated to complete by 2023, the construction will commence early next year.

Absolute Share Price Performance, as on 18 September 2020

Closing Share Price as at 18 September 2020 11 September 2020 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 1.07 1.09 -2.3%
Event Hospitality & Entertainment Ltd 10.01 9.37 6.8%
General Property Group 3.95 3.87 2.1%
Mirvac Group 2.11 2.06 2.4%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 24.20 24.90 -2.8%
Dusit Thani Public Co Ltd 7.10 7.05 0.7%
The Erawan Group Public Co Ltd 3.22 3.20 0.6%
Grande Asset Hotels & Property Public Co Ltd 0.51 0.51 0.0%
Laguna Resorts & Hotel Public Co Ltd 30.75 31.00 -0.8%
Minor International Public Co Ltd 22.70 22.40 1.3%
S Hotels and Resorts Public Company Limited 2.02 1.96 3.1%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 8.67 8.31 4.3%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co.,Ltd. 3.87 3.67 5.4%
Guangzhou Dong Fang Hotel Co Ltd 9.44 9.21 2.5%
Huazhu Group Limited 41.86 41.75 0.3%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 13.48 13.80 -2.3%
Regal Hotels International Holdings Ltd 2.98 3.01 -1.0%
Sino Hotels Holdings Ltd 2.36 2.39 -1.3%
The Hong Kong & Shanghai Hotels Ltd 6.14 6.20 -1.0%
Shangri-La Asia Limited 6.39 6.54 -2.3%
National Stock Exchange (INR)
Chalet Hotels Ltd 155.65 149.05 4.4%
IHCL (Taj Hotels, Resorts & Palaces) 99.7 99.4 0.3%
EIH (Oberoi Hotels & Resorts) 86.4 83.7 3.2%
Hotel Leela Ventures 5.1 5.1 -1.0%
Lemon Tree Hotels Ltd 28.8 27.9 3.2%
Korea Exchange (KRW)
The Shilla 75900 74900 1.3%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.35 0.34 3.0%
ARA Htrust (US$) 0.31 0.35 -11.6%
Ascott Residence Trust 0.95 0.91 4.4%
Banyan Tree Holdings Limited 0.25 0.25 -2.0%
CDL Hospitality Trusts 1.09 1.08 0.9%
Eagle Htrust 0.14 0.14 0.0%
Far East Hospitality Trust 0.60 0.56 7.2%
Frasers Hospitality Trust 0.44 0.44 0.0%
Hotel Grand Central Ltd 0.93 0.93 0.5%
Hotel Properties Ltd 2.91 3.04 -4.3%
Mandarin Oriental International Ltd (US$) 1.80 1.75 2.9%
Stamford Land Corporation Ltd 0.31 0.31 0.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 134.0 132.5 1.1%
The Ambassador Hotel, Ltd 31.2 30.0 3.8%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 50200 48400 3.7%
Imperial Hotel, Ltd 1885 1863 1.2%
Red Planet Japan Inc 72 76 -5.3%

For the latest in the hospitality industry, please visit: http://www.hvs.com/. You are also welcome to contact the following personnel.
Hok Yean Chee, Regional President – HVS Asia Pacific [email protected]
Mandeep S. Lamba, President, South Asia – HVS Anarock [email protected]
Daniel J Voellm, Managing Partner – HVS Hong Kong [email protected]
Mei Leng Ho, Senior Vice President – HVS Singapore [email protected]
Steven Zhu, Vice President – HVS Shanghai [email protected]
Florian Kittler, Managing Director – HVS Executive Search Europe & Asia Pacific [email protected]

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