ARTOTEL Group and Sinar Mas Land Established Joint Venture for Rooms Inc. Brand

Indonesia-based hotel management company, ARTOTEL Group (“ARTOTEL”), has entered into a joint venture with Indonesia-based real estate development company, Sinar Mas Land Limited (“Sinar Mas Land”), to establish a company under the name of PT SINAR ARTOTEL INDONESIA (“PT. SAI”). PT. SAI targets to manage Rooms Inc., a modern, lifestyle hotel brand created and owned by Sinar Mas Land. Additionally, PT. SAI also aims to expand Rooms Inc. to become a national hotel network and will manage and expand other hotel brands owned by Sinar Mas Land. An existing 162-key Rooms Inc. Hotel in Semarang city will be the latest addition to ARTOTEL’s portfolio. The hotel provides meeting rooms and entertainment rooms, digital hub, gymnastic and a rooftop overlooking Lawang Sewu and Semarang city. Subsequent to the partnership, ARTOTEL now own various hotel brands targeting a diverse range of market, including ARTOTEL SUITES, ARTOTEL Villa and ARTOTEL Casa catering the premium and luxury market, ARTOTEL and Curated by ARTOTEL for upper middle market, along with Rooms Inc. and Bobotel brand for economy market.

New Tourism Development and Investment for Indonesia’s Lombok Island

Lombok Island, located east of Bali in the West Nusa Tenggara region, has received attention from real estate investors lately following President Joko Widodo declaration of the 10 “New Bali’s” tourism plan in 2017. The Tourism Ministry of Indonesia has pledged over USD65 million to growing the Kuta Beach region’s Meetings, Incentives, Conventions and Exhibitions market. Other development plans include a USD3 billion large-scale commercial and hospitality Mandalika Resort Project and the hosting of the MotoGP in 2021, Indonesia’s first world-class racing event in more than two decades. Currently under construction, the Mandalika Resort Project will house 12,000 hotel rooms, with brands such as Pullman, Paramount Resort, Club Med and Grand Mercure Hotel. There will also be 350,000 square metres of commercial space, a 78-berth yacht marina, a water park, and a theme park. Construction of the MotoGP circuit track is expected to commence in October 2019 and upon completion, the racing event is expected to draw more than 150,000 spectators. In order to accommodate the demand, the state airport operator PT Angkasa Pura I has allocated more than USD14 million for upgrades and expansions at Lombok International Airport.

Philippines to Construct PHP735.6 Billion New Manila International Airport

The Philippine Department of Transportation has approved Philippine-based multinational conglomerate San Miguel Holdings Corporation’s (“SMC”) proposal to construct New Manila International Airport (“NMIA”) on a 2,500-hectare property in Bulakan, within the Bulacan province, north of downtown Manila and adjacent to the Manila Bay. The PHP735.6 billion (USD14 billion) facility will begin construction by the end of 2019 and is slated to complete by 2025. NMIA will feature four parallel runways, with more than four times the capacity of the existing intersecting runways of Ninoy Aquino International Airport (“NAIA”). The design includes development of a new government centre, seaport, industrial, residential, commercial and institutional zones. The airport complex is expected to handle an initial capacity of 100 million passengers annually, and eventually reaching up to 200 million. When fully operational, the new international airport will ease congestion in NAIA, generate approximately 40 million indirect tourism-related jobs, and raise the country’s competitiveness as an investment and tourism destination.

The Bangkok Metropolitan Administration Announced THB48.8 Million Refurbishment of Khao San Road

The Bangkok Metropolitan Administration (“BMA”) has officially announced the plan to transform Khao San road from a backpacking hub into an international walking street. The BMA will spend THB 48.8 million (USD1.6 million) to give 400-metre stretch of the road a major facelift. Construction works is anticipated to commence in October 2019 and complete by February 2020. The refurbishment aimed to solve the problems between street vendors and residents in the area by readjusting pavements for better ease of walking and allocating more space to vendors. In addition, footpaths will be repaved with flame-finished granite tiles. The revamping includes plans for landscaping, rezoning and re-managing of approximately 240 pavement stalls with an assigned trading space on the sidewalks based on product category with 60 centimetres-high collapsible stainless railings to demarcate a one-way traffic lane. Upon completion, the BMA will expand similar landscape developments to adjacent roads including Rambuttri Road, Tani Road, Krai Si Road, Sip Sam Hang Road, Tanao Road and Chakrabongse Road.

Prime Minister of India Provides Monumental Push to India’s Domestic Tourism

Aligned with the government’s goal to make India a USD5 trillion economy by 2022, Prime Minister Narendra Modi in his Independence Day speech has urged Indian nationals to visit at least 15 domestic tourist destinations over the next three years before the country celebrates its 75^th year of independence in 2022. According to a recent report by Google and consultancy firm Bain & Company, 1.8 billion domestic tourism trips were recorded in India in 2018. If every Indian will follow the Prime Minister’s direction, the domestic trips number will increase by 3.5 times to 6.25 billion per year, totalling to 18.75 billion trips over the next three years. If achieved, the increase in number of domestic tourist arrivals across the country will boost infrastructural spending and generate job creation.

Absolute Share Price Performance, as on 23 August 2019