Fragrance to Develop Hotels Along Waterloo Street and Tanjong Pagar Area, Singapore

Singapore-based development company Fragrance Group Limited (“Fragrance”) is planning to redevelop the Waterloo Apartments in Bras Basah-Bugis area and the Tower 15 in Tanjong Pagar area into hotels. Fragrance acquired the 999-year leasehold Waterloo Apartments for SGD131.1 million, a site of 14,369 square feet that currently comprises of 30 apartments. Outline Planning Permission (OPP) has already been secured to change the property zoning from “residential with first-storey commercial” with a 2.8 plot ratio to hotel use with a 4.2 plot ratio or maximum gross floor area of approximately 60,348 square feet. In addition, Fragrance has applied to the Urban Redevelopment Authority for a change of use for Tower 15, a 29-storey commercial building with a three-storey hotel and multi-level carpark, to full hotel usage. According to Fragrance, the change of use will result in an increase of approximately SGD210 million to the fair value of Tower 15. As one of the largest chains of economy hotels in Singapore, Fragrance hotel is currently operating 21 hotels island-wide. 

Average Occupancy of Chinese Star-Rated Hotels Registers 57.54% in Q2 2018

According to the national statistical management system of star-rated hotels in China, a total of 9,332 star-rated hotels satisfied the reviews of provincial tourism administrations in the second quarter of  2018. These includes 60 one-star hotels, 1,583 two-star hotels, 4,497 three-star hotels, 2,367 four-star hotels and 825 five-star hotels. All these qualified star-rated hotels generated a total revenue of RMB49.959 billion, showing a generally flat year-on-year increase. Food & beverage and room revenues contributed RMB19.509 billion (39.05%) and RMB24.095 billion (48.23%), respectively. The average room rate of all star-rated hotels was RMB349.43 per room night, up by 4.78% year-on-year while average occupancy rate was 57.54%, up by 2.41% year-on-year. This generated revenue per available room (RevPAR) of RMB201.07, up by 7.30% year-on-year and an average operating income per room of RMB35,718.20, up by 7.91% year-on-year.

Tourism Authority of Thailand Launches Domestic Travel Campaign

Tourism Authority of Thailand (TAT) have launched a new campaign in an effort to promote domestic tourism during the high season until the end of the first quarter in 2019. The new initiative called “Let’s go no plan” is set to entice Thais to visit second-tier provinces. TAT aims to target consumer via online and social media channels by promoting local culture, food, and products from designated secondary cities. In an effort to facilitate the campaign, the TAT has teamed up with the Stock Exchange of Thailand (SET) to encourage publicly listed Thai companies to organize packages and corporate social responsibility activities in secondary provinces. Additionally, Thai Airways International (THAI) is currently offering 20 domestic packages ranging from full-tour options to just flight and hotel bookings. TAT forecasts that domestic travel to secondary cities will grow by 5% with over 60 million visitors to the secondary cities, while generating an estimated 165 billion baht, an increase of 9% year on year.

Banyan Tree Debuts Angsana Brand in Cuba

Singapore-based Banyan Tree Hotels & Resorts (“Banyan Tree”) has recently opened its first Angsana hotel in Cayo Santa Maria, Cuba on 15 November 2018. Located within a UNESCO Biosphere Reserve which is home to coral reefs and underwater fauna, the 252-key adults-only beach resort Angsana Cayo Santa Maria is accessible via a 48 kilometre causeway from the Cuba mainland. The property also features 14 room categories, five food and beverage outlets, a 200-metre long private beach, Angsana Spa, a watersports centre, two pools, a marine lab, and a boutique shop. Banyan Tree was the first Asian and Singaporean hospitality brand to enter Cuba in 2017 with the opening of Dhawa Cayo Santa Maria, a 516-key resort. To date, the Banyan Tree Group manages and/or has ownership interests in over 47 hotels and resorts, 59 spas, 71 retail galleries; as well as three golf courses in 25 countries.

Mӧvenpick Debuts in the Maldives

Switzerland-based Mӧvenpick Hotels & Resorts (“Mӧvenpick”) has opened its first resort in the Maldives, Mӧvenpick Resort Kuredhivaru on a private island in the Noonu Atoll. Just 45 minutes by sea plane from Malé, the resort features 105 villas and suites comprising of 72 overwater pool villas, 30 beach pool suites and three beach spa pool residences, each with its own private plunge pool. There are also three restaurants, a wine bar, a diving centre, a tennis court, a fitness centre, a spa, a water sports centre as well as the Mӧvenpick Little Birds Club which offers a range of family activities and babysitting services. The property is one of the few properties located in the Noonu Atoll house reef, home to some of the most beautiful diving spots in the Maldives. With the opening of the new airport on Maafaru island in the same atoll in early 2019, the resort will be accessible by a 15-minute speedboat ride. Part of France-based AccorHotels (“Accor”), Mövenpick Hotels & Resorts has more than 80 properties in 24 countries across Asia, Europe, Africa and the Middle East.

Absolute Share Price Performance, as on 16 November 2018