HVS Monday Musings: Crystal Gazing into 2021 – Top Trends

By Mandeep S Lamba and Dipti Mohan
This article highlights some of the key trends that we expect to see in the Indian hospitality sector in 2021.

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Brown Investments Acquires 55.65% Controlling Stake of Serendib Hotels

Sri Lanka-based LOLC Holdings PLC’s strategic Investment arm, Brown Investments PLC (“BI”), has acquired the controlling stake of 55.65% of Serendib Hotel PLC’s (“Serendib”) through its subsidiary, Eden Hotel Lanka PLC, for approximately INR792 million. With this, BI will now hold 56.67% of voting shares and 53.48% of non-voting shares. This acquisition will then add Club Hotel Dolphin, Hotel Sigirya, Avani Bentota Resort and Lantern Beach Collection, Mirissa along with their management companies to their current line-up. BI’s chairman, Ishara Nanayakkara, has emphasised the company’s strategy to focus on the leisure sector and has stated that the group plans to capitalise on the post-COVID growth in the tourism business. The Serendib acquisition is also said to complement BI’s long-term strategy of building a diverse leisure portfolio in Sri Lanka and in the Maldives. In the Maldives, the company also has several leisure properties under construction including the 100-key Bodufinolhu in the Ari Atol and Nasandhura Palace Hotel in the city of Malé, a mixed-development consisting of 118 luxury apartments, a five-star hotel with 135 keys and an upscale mall. BI also has the lease rights to three islands reclaimed in North Malé, Bodufaru and Kaafu Atol which will be developed as three five-star properties with a total of 470 keys.

The Big Banana Set to Embark on AUD50 million Masterplan Over 20 Years in Australia

Australia-based developers, Village Building Co. Limited, has announced an AUD50 million masterplan for The Big Banana Fun Park. Situated in Coffs Harbor, between Sydney and Gold Coast, the investment comes more than 50 years after the Water Park first opened in 1964. This masterplan aims to expand the park’s offerings, through the development of 15 hectares of unused land within its vicinity. The masterplan plan is expected to span over the next 20 years, with certain attractions expected to be completed as early as 2023. This includes the expansion of the current waterpark, a new brewery and restaurant, two new amusement rides, and 50 family friendly holiday cabins for accommodations. Beyond 2023, the park plans to further increase the number of attractions, retail, food and beverage options, and conference and event facilities. A four and a half star, multi-level resort is also expected to be constructed as part of the masterplan. Mr Michael Lockman, general manager of The Big Banana, stated that this investment would further solidify the park’s position as a key destination for Coffs Harbor, and would further boost tourism and employment in the local region.

Tripartite Partnership to Launch Stimulus Recovery Plan Campaign in Malaysia

Tourism Malaysia, Malaysian Association of Hotels and Shopee Malaysia have embarked on a new strategic partnership to revive domestic tourism and unveil the Stimulus Recovery Plan (Pre 1.0) campaign “Jom Cuti-Cuti Malaysia! Experience Malaysia Like Never Before”. Taking place from 31 December 2020 until 31 March 2021, the campaign offer holiday-goers e-vouchers for hotel rooms including an e-voucher of MYR50 with a minimum 3D2N stay at one- to three-star hotels, or an e-voucher of MYR100 with a minimum 3D2N stay at four- to five-star hotels across the country. The first 18,750 early-birds purchasers will also enjoy an additional MYR20 shopping voucher to shop online. The e-voucher is only redeemable for Malaysians, eligible for one-time use only and on a first-come-first-serve basis. All commissions and transaction charges on Shopee platform will be waived for this campaign as an added boost for the industry players.

New MYR425 Million Ipoh Convention Centre to Boost Business Tourism

Slated to be fully operational this month, the new MYR425 million Ipoh International Convention Centre (“IICC”) is expected to attract more business travellers into the city. The IICC will consist of a 0.56-hectare convention centre, a 0.34-hectare five-star hotel and a 0.38-hectare serviced apartment. A collaboration agreement for the management of the 2,600-square metre IICC was signed last month by Malaysia-based, property developer, Bond Holdings Sdn Bhd (“Bond Holdings”) as the manager, the Ipoh City Council (“MBI”) as the landowner, and construction firm, Sycal Bhd. Bond Holdings will be managing the Bond Suites located next to the IICC, to provide business travellers with ideal workspace facilities. Ipoh Mayor, Datuk Rumaizi Baharin, commented that the IICC will help rebrand the city due to their strategic location and state-of-the-art facilities. He added that the main purpose of the collaboration was to manage the IICC more effectively, including the banquet halls.  Datuk Saarani Mohamad, the head of government in Perak, mentioned in his speech that he hopes that the MBI could continue to explore strategic collaborations to position Ipoh as an internationally renowned city with quality investments, job opportunities, sustainable physical developments, and sophisticated infrastructures.

Absolute Share Price Performance, as on 8 January 2021