Hotels & Hospitality Group | October 2014
Hotel Destinations Asia Pacific
Welcome to the October 2014 edition of our
Hotel Destinations Asia Pacific publication,
a biannual overview providing a snapshot of key hotel
markets around Asia Pacific.
As you browse through this guide, you will find a
selection of notable hotel trends, recent transactions,
upcoming new projects and a summary of key market
statistics for each destination. We trust you will find
this publication relevant, concise and insightful.
Enjoy the read and look out for the next edition!
Scott Hetherington
Chief Executive Officer, Asia
JLL Hotels & Hospitality Group
Craig Collins
Chief Executive Officer, Australasia
JLL Hotels & Hospitality Group
Hotel Destinations Asia Pacific
Contents
Sri Lanka has it all
04
06
The new traveller lifts backpacker segment
Seychelles opens its doors
08
08
City Profiles
10 Hong Kong
11Macau
12Singapore
13 Kuala Lumpur
14Sydney
15Melbourne
16Auckland
17Manila
18Seoul
19Taipei
20Tokyo
21Osaka
22Shanghai
Quick Facts
36
38
Contributors
23Beijing
24Bangkok
25Phuket
26Mumbai
27Delhi
28 Ho Chi Minh City
29Hanoi
30Bali
31Jakarta
32Mauritius
33Seychelles
34Maldives
35 Sri Lanka
03
Sri Lanka has it all
Sri Lanka continues to witness
tremendous growth. Visitor arrivals
have almost tripled over the last
decade and we are seeing an
increasing amount of international
hospitality brands appearing in the
capital, Colombo.
Hotel Destinations Asia Pacific
Falling like a tear from India’s flank, Sri Lanka’s otherworld beauty has
moved many visitors down the centuries. Known to Arab traders as
Serendib – fitting source material for the word ‘serendipity’ – and British
colonists as Ceylon, the island nation, with its tropical bounty of paradise
beaches, jungle clad mountains and tumbling waterfalls, is as visually
stunning as any on earth.
The country is now at peace after a protracted civil war that ended in
2009 and the government headed by President Mahinda Rajapaksa is
making sustained and tangible efforts to improve transport and airport
infrastructure. Given the enticing nature of the product, it is not difficult
to see why investors and developers regard Sri Lanka as a potential
heavyweight destination for luxury tourism in Asia.
“We feel very bullish about Sri Lanka,” says Dilip Rajakarier, Chief
Executive Officer of the Bangkok-based Minor Hotel Group, which has
the Anantara and AVANI brands as part of its portfolio. “We entered the
country when the civil war was still raging so we took a long term view to
which is now paying off. We launched 2 AVANI properties over the last few
years and our pipeline is strong.”
The debut of the luxury Anantara brand in Sri Lanka is due in the third
quarter of 2015 with the Anantara Tangalle Resort slated to open on the
country’s south coast. The Anantara Kalutara, adjacent to the existing
AVANI Kalutara Resort, also on the south west coast of Sri Lanka, is also
scheduled to commence operations at the same time.
“I always compare Sri Lanka with Thailand,” continues Rajakarier. “They
have similar attributes in terms of landscapes – spectacular mountains with
cooler weather and classic tropical beaches – plus there is a rich Buddhist
culture and friendly people. Also, everyone who visits Sri Lanka loves it.”
Commenting on the untapped potential of a country that is only now
experiencing sustained peace Rajakarier adds: “While countries like
Thailand advanced over the last 20 or 30 years, Sri Lanka stood still. There
are many factors for this, the civil war not the least of them. There’s a lot of
scope for tourism here, and we are seeing more big brands invest to drive
up the standard of the property inventory.”
The roll call of international hospitality names targeting Sri Lanka is
certainly impressive. Sheraton, Hyatt and Moevenpick have all announced
hotel projects in the capital, Colombo, while other big hotel firms with their
sights set on the country include Shangri-La and Marriot. The addition of
these major players will complement an existing hotel sector that has been
burnished by the presence of several acclaimed independent boutique
hotels as well the award-winning Amangalla and Amanwella run by the
Aman Resorts group.
Peter Henley, CEO of Onyx Hospitality, a Thailand-based hotel group, is
another who is hugely optimistic about the prospects for Sri Lanka. Onyx
debuted its OZO brand in Colombo in 2014 with plans to open a further two
properties in Sri Lanka’s second city Kandy and the historic town of Galle in
the south of the country over the coming two years.
Enthusing about his company’s entry into the market, Henley predicts a
productive return for investors in Sri Lanka. “In many ways the country
“The infrastructure and hotel
inventory is improving all the
time while the destination itself
offers fantastic beaches, vibrant
cities and plentiful wildlife
and nature.”
Peter Henley
CEO of Onyx Hospitality
has it all,” he comments. “It has all the attributes of South East Asia, but
it is more convenient for guests from Europe, India and the Middle East.
Infrastructure has been an issue in the past, but the government has taken
steps to bring up the standards.”
Sri Lanka now has three international airports, Bandaranaike and
Ratmalana near Colombo and the Mattala Rajapaksa Airport in the
southern hub of Hambantota. Meanwhile, new highways such as the
Colombo – Katunatyake Expressway, a fast airport link between the capital
and Bandaranaike Airport that opened end 2013, have cut journey times
significantly.
Infrastructural issues remain. Sri Lanka’s east and southeast coast is
widely held to have the best beaches in the country, but experts say it
will be another few years before it is attractive to investors. “It needs one
major player to go in and lead the way,” confides Rajakarier. Meanwhile,
rebuilding and road construction is on going in the north and northeast of
the country, the areas worst affected by the civil war.
Despite some challenges, the tourism sector in Sri Lanka continues to
witness tremendous growth. Visitor figures have almost tripled over the last
ten years from around 500,000 in 2003 to 1.3 million in 2013. The Sri Lankan
Tourism Development Authority (SLTDA) has set a target of 1.5 million
tourists in 2014, and a long-term target of 2.5 million annual arrivals in 2016,
which amounts to a compounded annual growth of over 25% year on year.
While Sri Lanka earlier depended heavily on European tourist traffic, there
has been a recent increase in tourist inflow from the Asia Pacific region,
particularly from India and Mainland China. Many visitors, meanwhile, are
using Sri Lanka as part of a twin centre holiday due to its proximity to the
Maldives.
“It will continue to evolve as a tourist destination I have no doubt,”
concludes Henley. “The infrastructure and hotel inventory is improving all
the time while the destination itself offers fantastic beaches, vibrant cities
and plentiful wildlife and nature.”
05
Seychelles opens
its doors
The fine balance between
maintaining Seychelles’ prestigious
status of ‘paradise on earth’
and opening its doors to fresh
investments and partnerships.
Hotel Destinations Asia Pacific
Seychelles offers something that very few countries offer – the opportunity
to invest or work in ‘paradise’. The islands are being rebranded following
a slow and steady move towards greater stability. Now, poised for growth
and foreign investment, there is a push for partnerships that will help boost
Seychelles’ tourism credentials.
As Minister of Tourism and Culture for the Seychelles, you would expect
some bias, but Alain St. Ange is unequivocal in his praise for the islands.
“Seychelles is unique because Seychelles is the one last – and I say that
often – paradise on earth,” he says.
There are more selling points: untouched, natural beauty away from mass
tourism; 50 per cent of its land area protected natural reserve; and a mixed
population of French, African, English, Indian and Chinese influences.
The result is a richly diverse blend of culture, including cuisine and music.
With its population of 89,000 people, St. Ange says Seychelles isn’t a tourist
island but, rather, a tourist destination. In fact, the area is dependent on its
tourism. And it’s this very thing that St. Ange has been addressing for the
last three years during his tenure as minister. Prior to taking up the role,
he was Chief Executive Officer of the Tourism Board, and before that the
Director of Marketing of Seychelles.
St. Ange believes “sun, swim and sand” are important but it’s not enough.
For tourism to truly succeed, a focus on culture is a key point.
The essence of the Seychelles’ culture is clear: all are welcome. But St.
Ange claims more elements in the region’s favour.
Seychelles would be considered by many a luxury destination, strictly for
the very wealthy, but St. Ange is quick to counter this label.
“Yes, we have resorts where the best of the world comes here. Every
famous personality, be it in the filming industry, be it in royalties, be it in
superstars – they all descend on Seychelles,” he explains.
“We [also] have what we call the ‘homegrown hotels’, for people on a
budget. Everybody has the right to enjoy Seychelles.”
The luxury segment is not to be disregarded, however. St. Ange
acknowledges its importance – attracting the “high yield tourists” is a
continuing development.
“For this to be develop further we need to encourage airlines to keep
coming here. But for airlines to come, to bring these first-class passengers,
we need also to fill up the tail of the plane, which are the two – and threestar properties. So it is a whole sum approach to tourism that we are
doing.”
With great change and development, however, comes cost – both financial
and environmental. St. Ange argues it’s a “catch-22”. It’s essential
to preserve Seychelles’ natural beauty, it’s very drawcard, ensuring
“developments do not destroy what makes us what we are”.
“There’s a fine line between development being controlled, but at the
same time that it keeps on developing, because we still need direct foreign
investment to keep coming into the country. We need to ensure that the
airlines work with us. And airlines work with us – because we are far, we
must not also be exploiting our guests. So that’s a challenge in itself.”
“We are paving the way to make
our region a solid region, ready
to welcome a new burst
of investment.”
Alain St. Ange
Minister of Tourism and Culture for Seychelles
Another important facet to the development of Seychelles as a tourist
destination is the separation of government and industry.
“We moved government from being the one managing the industry, to
becoming the facilitator. And we’ve allowed the industry to, to move
themselves.”
Seychelles has a tourism board in place, but it’s under the charge of the
private sector, which recommends who, for example, is employed as
Director of Marketing.
“We’ve worked hard into giving ownership of our industry to the private
sector, who are the ones that are in the fore front and the ones that feel the
pain faster when there is a downward trend,” says St. Ange.
“We turned it on its head. The President of the Republic made one
statement that said Seychelles must claim back its industry. And for
Seychelles to claim back its industry, we need to bring in our people, to
get them involved, to get them to feel that they are part and parcel of it,
and not just workers. Because otherwise you get this feeling that happens
often where there is a ‘them and us’ approach. The ‘them’ being foreign
investors.”
It’s an extraordinary change from how Seychelles operated previously – a
heavy bureaucratic process; financial impediments when a lot of foreign,
direct investments were blocked. Seychelles opened the doors to its
smaller operators – telling “everybody who was running an illegal small
hotel to come and register it and bypass the bureaucratic nightmare”.
On the investment front, there are hotels – lots are being built – but also
supporting industries, be it the floating restaurant, an aquarium or a bird
park. Domestic investment is very limited, hence the focus on partnership –
local and international.
“But to make the region grow, we have to ensure that we are stable. Today
we are stable, we’re working with our partner, like Africa. And now I’m
just back from India last week and with India we’ve now opened these two
sides of Seychelles – the Asia side and the Africa side. And we’re working
as a region, to ensure that we are paving the way to make our region a solid
region, ready to welcome a new burst of investment.”
07
The new traveller
lifts backpacker
segment
With strong growth in recent
years, and a shift in market
offerings, the backpacker segment
in Australia is not showing any
signs of slowing down.
Hotel Destinations Asia Pacific
Assessing Tourism Research Australia’s National and International Visitor
Surveys, JLL reports that, over the past two years, the total number of
visitor nights for backpackers has risen to a record high of 50 million visitor
nights.
The segment’s robustness is notable, but also interesting are the market
dynamic shifts contributing to its strength. Backpackers are increasingly
staying in hostels because they are here for work – not play – and the
geographic origin of backpackers is also changing, with a greater number
of backpackers arriving from Asia.
“When we look back at it historically, it’s very much been the domain of
the UK and the European travellers, and that’s still the case. But Asian
travellers now make up about a third or so, or a quarter of total visitor
nights,” says Peter Harper, Senior Vice President – Investment Sales, JLLs’
Hotels & Hospitality Group.
Harper believes we’re going to see a much larger proportion of Asian
travellers in the long term, particularly as more Asians come to Australia to
study.
“I think there is a very large migration of Asian families to Australia, and
so … there will be a lot of travellers coming to visit family as part of that
travel.”
And while Harper also sees a more inquisitive and explorative type of
traveller coming out of Asia, there are cultural differences amongst
backpackers.
“So it’s international travellers coming, getting a Working Holiday Visa
online before they arrive and then purchasing our product, which is really
to enable them to get work ready and then hopefully get employment.”
“The hostels that will continue to prosper and grow are the ones that really
tick the boxes for the new wave of backpacker in Australia. It’s got to be
in a safe location, it’s got to be able to accommodate the fact that a lot
of these people are working. So they want clean facilities that facilitate
a longer stay … more (like) budget hotel accommodation, as opposed to
backpacking accommodation.”
Cue the rise of the “flashpacker” – an upscale backpacker hostel that
provides very good quality and a broad mix of rooms, some with ensuites.
There’s an increasing demand for it, according to Shepherd, who says
events like the GFC forced people to look for alternatives to the more
expensive hotel.
Accommodation innovation
Harper says an increasingly professional approach to product offering from
certain operators has had a positive impact on the segment. And it’s a trend
he anticipates will only continue, though there are challenges for investors
– namely, finding suitable assets and making the property a commercially
viable operation.
“The UK backpacker, once upon a time, only wanted to come here for the
party,” says Harper.
“New development of standard hotels is still quite difficult to make feasible,
and that’s no different for backpacker hostels,” notes Harper. “So the
challenge would really be getting that right market mix so that you can
extract the full dollar out of these travellers but still make that development
feasible.”
“For the Asian backpacker, it’s all about the experience. So it’s about giving
them access to those demand generators that satisfy their thirst for the
experiential side of travel.”
Of the transactions JLL has seen across the major markets, many
backpackers hostels have been sold for redevelopment, because more
often than not they occupied good locations in inner-city suburbs.
Suitable for all ages
“It’s always been a lot of local owner-operators, some of your private equity
firms that get into that style of investment. I don’t think that will change,”
says Harper, who adds that there are some Asian investors forecasting on
where Chinese visitors will travel and who may target those locales in order
to get in at the start of the “up phase”.
Campbell Shepherd, CEO of Base Backpackers, which manages and owns
14 backpacker hostels throughout Australia and New Zealand, agrees that
the experiential component remains intact. But he notes other changes in
the backpacker landscape, particularly age demographics.
“Typically, about three per cent of our traffic’s older than 50. They tend to be
60-plus. And they’re retired, often single, females or two females travelling
together ... And, again, they’re not after a holiday, they want to extend their
travel experience by staying cheap and doing the stuff that’s outdoors.”
Meanwhile, general standards have improved, as well as the service
offering. Base Backpackers offers what Shepherd calls “an employment
hand-holding service” for patrons, in addition to the usual accommodation
and bar offerings. The program has been running in New Zealand for
around 10 years, and in Australia for about a year and a half.
“You’re always looking for new opportunities and new ways to stimulate
demand,” Shepherd explains.
Harper suggests that, moving forward, many of the traditional backpacker
assets may lack infrastructure and good locations to cater to changing
needs.
“And for new players, or people who want to identify a gap in the market,
it’s purely going to be finding a development that works, because the
highest and best use of most suitable assets or sites is going to be an
alternative use. So it’s being able to get that for the right price and then
converting it and undertaking what works is required to have a product
that’s suitable to tomorrow’s market.”
09
10
Hotel Destinations Asia Pacific
Hong Kong
Hong Kong is much more than a harbour city. The traveller weary of
its crowded streets should not forget that this territory with its cloudy
mountains and rocky islands is mostly a rural landscape. The popularity
with inbound visitors from the Mainland continues to drive Hong
Kong’s hotel pipeline with recent government forecasts suggesting a
necessary doubling of hotel room numbers in the coming decade. Hong
Kong has long been a gateway between East and West and the result is
an intoxicating mix of Chinese and Western history, commerce, culture
and cuisine. The hospitality scene is equally dynamic from luxury hotels
within skyscrapers to smaller midscale options and boutiques.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
According to the Hong Kong Tourism
Board (HKTB), the number of
international visitor arrivals exceeded
54 million in 2013, an 11.7% increase
over 2012. Growth in visitation to Hong
Kong has been driven primarily by the
outbound travel market from Mainland
China, which accounted for 75.0% or
40.7 million of total arrivals.
Corporate travel is one of the major
demand generators in Hong Kong
due to its status as one of the world’s
leading financial and business
centres. Hong Kong is regarded as
an attractive location for regional
headquarters, owing to its favourable
business environment, transparent
legal and regulatory conditions, highly
competitive corporate tax levels, and
close proximity to Mainland China.
According to the HKTB, approximately
2,488 hotel rooms are expected to enter
the supply in the second half of 2014.
As at Q2 2014, approximately 843 hotel
rooms have opened, most of which are
independently or locally operated and
relatively small in room count (below
150 rooms). If all projects materialise,
hotel room supply will increase by 4.8%
to 73,348 rooms.
The HKTB has undertaken several
measures such as waiving the Hotel
Accommodation Tax since 1 July 2008,
to attract visitors to extend their length
of stay in Hong Kong. However, the
average length of stay continues to
face downward pressure as corporate
budgets remain tight and leisure
travellers participate in more multicity itineraries (Hong Kong, Macau,
Guangzhou and Taiwan).
NEW HOTELS
NOTABLE HOTEL DEALS
Mercer by Kosmopolito
– HKD 545 million
Printemp Hotel Apartment
– HKD 340 million
547
rooms
Dorsett Tsuen Wan Hotel
162
rooms
Ovolo Hotel Southside
68
rooms
The Pottinger
QUICK FACTS
UPCOMING HOTELS
Hotel sáv
iClub by Regal Tin Hau Hotel
iClub Sheung Wan Hotel
Holiday Inn Express Hong Kong
Mongkok
Somerset Victoria Park Hong Kong
37
rooms
A3 Hotel Hong Kong
HKD
54.3 million 2,623 rooms 77.6% 3,667
International Visitor
Arrivals 2013
Number of New Rooms
2013
Note: Hong Kong Hotels refers to Luxury stock only.
Source: STR Global (YTD July 2014), Hong Kong Tourism Board, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
Occupancy
Average Daily
Rate (ADR)
29
rooms
Residence G Hong Kong
HKD
2,846
Revenue per Available
Room (RevPAR)
Hotel Destinations Asia Pacific
Macau
Take a stroll along the cobbled streets of today’s Macau, and you will
find European influences interspersed with its Chinese heritage. This
is due to the Portuguese traders who established a settlement in Macau
during the 16th century, and subsequently administered the region
for over 400 years. Since the handover in 1999, the Macau government
shortly liberalised gambling licenses in 2001, stimulating the launch of
several gaming investment projects after the issue of three licenses in
2002. Before the opening of Macau’s very first foreign-funded casino in
2004, Macau only held 9,000 hotel rooms. Today it nears 30,000.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
The proportion of same-day visitors to
Macau was approximately half of total
visitor arrivals although the average
length of stay for overnight visitors is
just one to two days. As at YTD June
2014, visitor arrivals showed a more
optimistic 8.1% y-o-y improvement
to 15.3 million, primarily due to the
increase in Mainland Chinese visitors,
who remain the primary source
market to Macau.
As at YTD June 2014, 31.8% of Mainland
Chinese visitors came via the Individual
Visitor Scheme. In terms of Mainland
Chinese provinces and municipalities,
79.2% of Mainland Chinese visitors were
from the Guangdong province, followed
by 6.3% from Shanghai and 4.3% from
Beijing. In addition, 71.1% of Mainland
Chinese travel to Macau via land.
There are a significant number of hotel
rooms scheduled for completion in
the next three to five years, with more
than 9,000 confirmed hotel rooms in
the pipeline. The development of these
projects will depend on availability of
financing although we do not foresee
this as a major hurdle.
Macau’s hotel market will continue
to improve as economic cooperation
with Mainland China strengthens. The
September 2013 legislative election has
further confirmed that voters’ support
for the government’s pro-Beijing, procasino direction, and will likely remain
so under chief executive Fernando
Chui’s leadership term.
NEW HOTELS
No new hotels opened in Macau during H1 2014
NOTABLE HOTEL DEALS
3,896
rooms
There were no hotel transactions
in 2014
QUICK FACTS
UPCOMING HOTELS
St. Regis
JW Marriott Hotel Macau
Ritz Carlton
Macau Studio City
The Parisian Hotel
MOP
29.3 million 2,067 rooms 90.0% 1,700
International Visitor
Arrivals 2013
Number of New Rooms
2013
Occupancy
Note: Macau Hotels refers to Marketwide hotels.
Source: STR Global (YTD July 2014), Macau Government Tourist Office, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
Average Daily
Rate (ADR)
MOP
1,530
Revenue per Available
Room (RevPAR)
11
12
Hotel Destinations Asia Pacific
Singapore
Ranked by the World Economic Forum as Asia’s best tourism and
aviation hub, Singapore is poised to capitalise on the region’s booming
tourism industry. Asian travellers are projected to account for at least
half of global tourism expenditure by 2020 and Singapore’s combination
of leisure, retail and business opportunities is sure to guarantee the
Lion State more than its fair share of the growth. The city state’s hotel
market peaked in 2013 with the sale of Grand Park Orchard hotel and
Knightsbridge retail, the city’s largest single asset sale, which pushed
transaction volumes to more than 10 times those recorded in 2012.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
International visitor arrivals to
Singapore reached 15.5 million in 2013,
recording a 6.9% improvement over 2012
and achieving the forecasts set by the
Singapore Tourism Board (STB), which
targeted 14.8 to 15.5 million arrivals.
Visitor arrivals to Singapore have shown
sustained growth for four consecutive
years.
According to the Singapore Tourism
Board (STB), international visitor
arrivals faced a 0.6% y-o-y decline as at
April 2014 despite a 5.5% y-o-y growth
in visitors from Indonesia, Singapore’s
largest source market. One of the key
reasons for the stagnant arrivals is the
overall decrease in number of Mainland
Chinese visitors (down 21.9%).
The 134-room Sofitel So opened in May,
making it the sixth property operated
by Accor in Singapore. The hotel
operator also announced that they will
be managing two additional hotels –
Novotel Singapore on Stevens with 254
rooms and ibis Stevens with 528 rooms
– at the site of former The Pines Country
Club. The hotels are expected to open
in 2016.
In order to curb the fall in Mainland
Chinese arrivals, Singapore is
marketing itself as a standalone tourism
destination through a SGD 1 million
marketing campaign. A cooperative
between Changi Airport Group and
the STB, the campaign aims to attract
young independent travellers who
are more likely to visit short-haul
destinations like Singapore, due to
shorter vacation times.
NEW HOTELS
NOTABLE HOTEL DEALS
Sentosa Resort & Spa
– SGD 210.9 million
442
rooms
Holiday Inn Express
Clarke Quay
270
rooms
Parc Sovereign Hotel
Tyrwhitt
243
rooms
One Farrer Hotel & Spa
QUICK FACTS
UPCOMING HOTELS
South Beach Hotel & Club
ibis Singapore on Stevens
Hotel Jen Orchardgateway
Novotel Singapore on Stevens
The Patina, Capitol Singapore
15.6 million 3,340 rooms 79.2%
International Visitor
Arrivals 2013
Number of New Rooms
2013
Note: Singapore Hotels refers to Luxury stock only.
Source: STR Global (YTD Jul 2014), Singapore Tourism Board, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
Occupancy
134
rooms
Sofitel So Singapore
SGD
405
Average Daily
Rate (ADR)
75
rooms
Aqueen Jalan Besar
Hotel
SGD
321
Revenue per Available
Room (RevPAR)
Hotel Destinations Asia Pacific
Kuala Lumpur
Kuala Lumpur is an endearing contradiction, from its colonial and
Moorish buildings to grand Western-styled shopping malls and office
towers. The city is helped by its relatively low cost – Trip Advisor in
2013 ranked it the seventh least expensive of major world cities for a
night out – as well as its Islamic heritage which draws visitors from
across the Muslim world. Kuala Lumpur has faced many tourism
challenges in 2014 but will continue to lift demand along with the
growth of its low cost carrier network, which will further develop the
city as a global tourism and aviation hub.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
Kuala Lumpur is predominantly a
corporate market with strong weekday
business. There is relatively limited
leisure demand which places a cap on
occupancy as weekends tend to be
low periods. The major leisure business
comprises of tour groups from Mainland
China and the Middle East which are
price sensitive and not as high yielding.
According to Tourism Malaysia,
international visitor arrivals to
Malaysia recorded 25.7 million in 2013,
representing growth of 2.7%
year-on-year. While statistics on
international visitor arrival growth
to Kuala Lumpur is not available, we
believe that it would be similar to the
growth rate achieved in the rest of the
country. Visitor arrivals recorded a
10-year CAGR of 9.4%.
The majority of new rooms are
positioned in the upscale and luxury
segments and represent a large
increase when compared to the
existing supply. New entrants to the
market include international hotel
chains including Starwood, Hilton, Four
Seasons, Banyan Tree and Accor.
Kuala Lumpur is facing an oversupply
of new hotel rooms in the upscale
and luxury sectors given the current
pipeline of development. Encouragingly,
the Malaysian government remains
committed to promoting the city as a
key MICE market which is expected to
drive inbound corporate travel over the
coming years.
NEW HOTELS
NOTABLE HOTEL DEALS
Somerset Ampang
– MYR 169.4 million
198
rooms
Allson Capital Hotel
157
rooms
Ascott Sentral
Kuala Lumpur
QUICK FACTS
UPCOMING HOTELS
St. Regis
Four Seasons Place Kuala Lumpur
W Hotel & Residences
Ritz-Carlton Residences
25.7 million 1,250 rooms 72.7%
International Visitor
Arrivals 2013
Number of New Rooms
2013
Note: Kuala Lumpur Hotels refers to Luxury & Upscale stock only.
Source: STR Global (YTD July 2014), Malaysia Tourism Board, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
Occupancy
MYR
493
Average Daily
Rate (ADR)
MYR
358
Revenue per Available
Room (RevPAR)
13
14
Hotel Destinations Asia Pacific
Sydney
Sydney is the major gateway to Australia and a key hub for the Asia
Pacific region. Famous for its harbour, the city offers extensive
shopping, entertainment and dining experiences as well as countless
surf beaches within the wider metropolitan area. The city also boasts a
large domestic visitor segment, being both the primary corporate centre
in Australia and key leisure destination. This broad demand base will
therefore underpin the city’s hotel and tourism market in the coming
years whereas major infrastructure projects such as the Barangaroo
urban renewal project and the development of the Sydney International
Convention and Exhibition Precinct will provide an added boost to the
market over the medium to long term.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
YTD March 2014, 11.7 million visitor
nights were spent in Sydney City’s
accommodation segment, up 3.9% y-o-y.
International nights decreased 1.7% to
9.0 million with a decline in business
travel. This was offset by growth in
the leisure segment. Domestic nights
increased 28.6% to 2.7 million with
growth in visiting friends and family
(VFR) and business segment.
Corporate demand has continued
to strengthen in line with increased
business activity. The Ashes Cricket
test, Chinese New Year and strong
cruise season all provided a welcome
boost to trading during the first two
quarters, while the Sydney International
Art Series in November 2014 and the
AFC Asian Cup in January 2015 are
expected to see demand spike over the
coming year.
Sydney City’s accommodation market
comprised 116 establishments with
20,292 rooms at the end of June 2013.
JLL estimate that 181 new rooms
opened in 2013 representing growth
of just 0.9%. With only 342 rooms
anticipated over the next 18 months,
the prevailing demand-supplyimbalance in Sydney City’s
accommodation market is expected to
remain for some time to come.
The outlook for Sydney’s
accommodation market is positive
with occupancy levels continue to
reach new record highs in line with
the improving demand environment
and with very few additions to supply.
Against this backdrop, strong gains in
ADR are expected to be achieved.
NEW HOTELS IN 2014
None although we note that the Langham Sydney is currently closed, undergoing a
major refurbishment. The hotel is scheduled to re-open in December 2014.
NOTABLE HOTEL DEALS
Sofitel Sydney Wentworth
– AUD 201 million
Hotel 1888
– AUD 32.8 million
Blue Sydney
– AUD 30 million
UPCOMING HOTELS
Tankstream Hotel
Central Park, Kensington Lane Hotel
QUICK FACTS
2.0 million
International Visitor
Arrivals 2013
None
Number of New Rooms
2013
Note: Sydney Hotels refers to Marketwide hotels.
Source: STR Global (YTD Jul 2014), Tourism Research Australia, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
86.6%
Occupancy
AUD
222
Average Daily
Rate (ADR)
AUD
193
Revenue per Available
Room (RevPAR)
Hotel Destinations Asia Pacific
Melbourne
Melbourne is Australia’s second most populous city and a major
corporate centre notably the financial, manufacturing, education and
logistics industries. Melbourne is renowned for its extensive annual
calendar of festivals, exhibitions and major sporting events. Increased
domestic and international visitation, as well as investment in tourism,
convention and sporting infrastructure has underpinned investor
confidence and Melbourne has emerged as Australia’s accommodation
development hot spot over the past ten years. Melbourne has the newest
and largest Convention and Exhibition facility in Australia following
the opening of the Melbourne Convention and Exhibition Centre
(MCEC) in 2009.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
YTD March 2014, 8.6 million visitor
nights were spent in Melbourne City’s
accommodation segment, down 3.1%
y-o-y. International nights decreased
8.2% to 5.7 million with a decline in
leisure travel. This was offset by
growth in domestic nights which
increased 8.6% to 2.9 million with
growth in the education, employment
and convention segments.
Corporate demand has continued to
strengthen in line with overall increased
business activity. MICE demand is also
robust with the Melbourne Convention
and Exhibition Centre (MCEC) reporting
to have hosted more than 100 events,
attracting over 87,600 delegates in the
month of August.
Melbourne is the second largest
accommodation centre in Australia
comprising 137 establishments with
18,840 rooms in June 2013. JLL estimate
that 575 new rooms opened in 2013
representing growth of 3.1%. A further
476 rooms are anticipated in 2014.
The medium term outlook for
Melbourne’s accommodation market
remains positive after a strong start to
2014. RevPAR growth is expected to
remain robust over the next few years
with the city expected to increase
its share of national MICE demand
following the closure of the Sydney
Convention and Exhibition Centre in
late 2013.
NEW HOTELS
NOTABLE HOTEL DEALS
Oaks on Lonsdale
– AUD 65 million
Park Hyatt Melbourne
– AUD 130 million
Holiday Inn Melbourne
– AUD 46.7 million
UPCOMING HOTELS
Wyndham on William
Hotel Sophia (extension)
174
rooms
Sheraton Melbourne Hotel
37
15
rooms
Oaks Pinnacle
rooms
Coppersmith Boutique Hotel
QUICK FACTS
1.3 million
International Visitor
Arrivals 2013
226 rooms
Number of New Rooms
2013
Note: Melbourne Hotels refers to Marketwide hotels.
Source: STR Global (YTD Jul 2014), Tourism Research Australia, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
85.4%
Occupancy
AUD
195
Average Daily
Rate (ADR)
AUD
167
Revenue per Available
Room (RevPAR)
15
16
Hotel Destinations Asia Pacific
Auckland
Auckland is New Zealand’s largest and most populous city, situated in
the upper half of the North Island. It is centred between two harbours,
surrounded by 48 volcanic cones and borders the rainforest hills of
the Waitakere and Hunua Ranges. Auckland is renowned for being
a multi-cultural city and is often referred to as the ‘City of Sails’ due
to the popularity of sailing in the region and the dominant feature
of Westhaven Marina on the city’s skyline. Media have reported that
SkyCity Entertainment Group has acquired the necessary CBD land
for the New Zealand International Convention Centre across the road
from its Auckland casino and that final design plans for the NZICC
are expected to be publicly unveiled later this year. Construction of the
NZICC is expected to be completed by late 2017.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
According to the Auckland Airport
statistics, 2013 reported a total of
approximately 6.9 million domestic
and 7.9 million international passenger
movements, the highest number of
movements reported to date. During the
first five months of 2014, total passenger
movements to Auckland increased
2.9% when compared to the same
period last year.
The leisure, corporate and tour
segments dominate tourism demand in
Auckland, comprising circa 47%, 21%
and 15% respectively of visitor nights
to Auckland. The leisure and corporate
markets have reported steady growth of
2.2% and 3.0% respectively whereas the
tours market has declined 5.1% over the
year to May 2014.
Auckland’s accommodation market
comprised 36 hotel and serviced
apartment establishments, totalling
6,820 rooms, at the end of December
2013. JLL estimates that 258 rooms have
entered the market through financial
year 2013/14 which represents y-o-y
growth of 3.8%. It is anticipated that
another 358 rooms will be supplied in
the 2014/15 financial year.
Sound demand fundamentals from
key leisure and corporate segments
will continue to drive the Auckland
accommodation market despite
incremental levels of new supply.
This will be further boosted by strong
growth in the Chinese inbound market
and the continued recovery in the
domestic MICE segment. Inbound
visitors are electing to use Auckland
as their primary base as opposed
to Christchurch which is still in a
rebuilding phase following the February
2011 earthquakes.
NEW HOTELS
80
NOTABLE HOTEL DEALS
There were no hotel transactions
in 2014
rooms
VR Queen Street
QUICK FACTS
UPCOMING HOTELS
No new additions to supply in 2014
2.8 million
International Visitor
Arrivals 2013
258 rooms
Number of New Rooms
2013
80.7%
Occupancy
Note: Auckland Hotels refers to Marketwide hotels.
Source: STR Global (YTD Jul 2014), Auckland Airport, Statistics New Zealand, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
NZD
144
Average Daily
Rate (ADR)
NZD
116
Revenue per Available
Room (RevPAR)
Hotel Destinations Asia Pacific
Manila
In the heart of an archipelago of over 7,000 islands, the bustling city
of Manila has emerged as a rising regional economic powerhouse, a
growing destination for multinational corporations and a flourishing
hospitality market with several exciting prospects in the pipeline.
The main hospitality project which is set to be completed in 2018
is Manila’s very own integrated gambling and entertainment strip
know as Entertainment City. Fashioned on the infamous Las Vegas
Strip, Entertainment City will showcase a diverse range of world class
facilities, integrated resorts, luxury hotels, state of the art theatres,
celebrity-chef-themed restaurants, shopping malls and convention halls.
Once completed, this hospitality complex is expected to reach over
10,000 rooms.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
According to the Department of Tourism
Philippines, international visitor arrivals
to the Philippines were recorded at
4.7 million in 2013, achieving a 9.7%
growth over 2012. Inbound visitation to
the country remained healthy despite
several natural disasters during the
year including Typhoon Haiyan and an
earthquake in central Philippines in 2013.
South Korea remained the top source
market to Philippines in 2013, recording
a 13.1% y-o-y growth due to the
increase in flight frequencies. Majority
of the top ten source markets to the
Philippines registered improvements;
in particular, Mainland China showed a
significant 70.0% y-o-y increase in 2013
due to new regular and chartered flights
as well as more
cruise itineraries.
The supply pipeline in Manila is
expected to show significant growth
with approximately 6,000 rooms from
2014 to 2018 with the penetration of many
international hotel brands alongside the
entry of gaming developments namely
Solaire Resort & Casino Manila (2013),
City of Dreams Manila, Manila Bay Resort
and Resorts World Manila Bayshore.
In 2014, an estimated 2,658 rooms are
expected to open including the City of
Dreams Manila.
The Department of Tourism Philippines
is aiming for six million international
visitors in 2014 as flight frequencies
from major source markets increase.
The upcoming pipeline of international
branded hotels in the next few years is
also expected to boost tourism demand
for Manila and the Philippines.
NEW HOTELS
NOTABLE HOTEL DEALS
There were no hotel transactions
in 2014
316
rooms
Marco Polo Hotel
Ortigas
180
rooms
Tune Hotels
Ortigas
QUICK FACTS
UPCOMING HOTELS
City of Dreams
Mercure Manila Ortigas
Novotel Manila Araneta
Radisson Hotel Manila Bay
Jin Jiang Inn Ortigas
Jin Jiang Inn Greenbelt
4.7 million
International Visitor
Arrivals 2013
PHP
1,288 rooms 69.0% 5,682
Number of New Rooms
2013
Occupancy
Note: Manila Hotels refers to Marketwide hotels.
Source: STR Global (YTD July 2014), Department of Tourism Philippines, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
Average Daily
Rate (ADR)
PHP
3,919
Revenue per Available
Room (RevPAR)
17
18
Hotel Destinations Asia Pacific
Seoul
As South Korea’s political, economic and financial hub, Seoul is a
bustling metropolitan city in Asia. With its rich heritage and traditions,
scenic landscapes and modern infrastructure, Seoul is a major corporate
and leisure destination, offering tourists a diverse mix of cultural,
entertainment, dining and retail experiences. The Korean Wave and the
government’s initiatives to boost tourism as well as the depreciation
of the Won have encouraged strong tourism growth. There has been a
significant increase in hotel development against a backdrop of demand
growth and limited room supply in recent years.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
In 2013, visitor arrivals to South Korea
increased by 9.3% y-o-y, recording 12.2
million visitors. This can primarily by
attributed to the significant growth in
the Mainland Chinese market which
registered a y-o-y growth of 52.5% and
have overtaken Japan, becoming the
top source market to South Korea.
As at YTD July 2014, visitor arrivals
showed an improvement of 18.5%
y-o-y, due to the growth in visitation
from its top source markets including
Mainland China, Taiwan, USA and Hong
Kong. The easing of visa procedures
and improvements in accessibility with
the increase in airline and cruise ship
capacity led to growth in visitor arrivals,
particularly Mainland Chinese tourists.
Two international branded hotels
opened in Dongdaemun as at YTD
August 2014, namely the 170-room JW
Marriott Dongdaemun Square and the
204-room Ramada Encore Dongdaemun
Seoul. Several new luxury brands are
set to enter the market in the next few
years including Four Seasons and A
Luxury Collection hotel.
The Korea Tourism Board has launched
a new campaign ‘Imagine your Korea’
and is targeting 20 million visitors to
the country in the future. Coupled with
the easing of tourist visa regulations
and varied tourism offerings including
leisure attractions, MICE and medical
tourism, this is likely to boost visitation
to the country.
NEW HOTELS
NOTABLE HOTEL DEALS
There were no hotel transactions
in 2014
306
rooms
Shilla Stay Yeoksam
204
rooms
Ramada Encore
Dongdaemun Seoul
170
rooms
JW Marriott
Dongdaemun Square
QUICK FACTS
UPCOMING HOTELS
Aloft Seoul Gangnam
Four Seasons Seoul
Parnas, a Luxury Collection Hotel
KRW
KRW
Average Daily
Rate (ADR)
Revenue per Available
Room (RevPAR)
12.2 million 3,064 rooms 75.4% 201,758 152,193
International Visitor
Arrivals 2013
Number of New Rooms
2013
Occupancy
Note: Seoul Hotels refers to Marketwide Hotels.
Source: STR Global (YTD July 2014), Korean Ministry of Culture, Sports and Tourism, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
Hotel Destinations Asia Pacific
Taipei
Taipei has been labelled as “the emporium without end.” Its main
shopping area can be divided into two districts: East and West. West
Taipei is the old city and is characterised by narrow streets packed
with small traders. The Western district is home to most government
buildings and the Taipei Main Station. East Taipei boasts wide treelined boulevards and the city’s four main shopping malls. Popular
shopping destinations in East Taipei consist of the area around the
ZhongXiao-DunHua intersection and Taipei 101.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
Although Mainland China continued
to be the main contributor to growth in
visitor arrivals, six of the other top ten
source markets registered double digit
growth YTD June 2014 namely, South
Korea (+79.8%), Vietnam (+28.2%),
Malaysia (+27.4%), Japan (+18.5%),
Hong Kong / Macau (+18.1%) and the
USA (+12.2%).
As at YTD June 2014, visitors to Taipei
City (measured by arrivals to Taoyuan
and Songshan International Airports)
increased by 27.4% over the same
period last year indicating that arrivals
to Taipei are mirroring the rest of the
country’s rapid growth in arrivals.
The Mandarin Oriental Taipei officially
opened on 18 May 2014. It features
a 303-key resort and is located in
Songshan district within close proximity
to Songshan International Airport. The
hotel features six restaurants, meeting
facilities and ancillary facilities such as
a spa and fitness centre.
Given the strong performance of the
Taiwanese tourism market, it seems that
the country is on track to reach their
target of nine million visitor arrivals by
the end of the year. The Tourism Bureau
has been successful in its marketing
campaigns by targeting visitors within
Asia although it is uncertain if this pace
of growth will be sustainable in the
medium term.
NEW HOTELS
NOTABLE HOTEL DEALS
There were no hotel transactions
in 2014
303
rooms
Mandarin Oriental Taipei
QUICK FACTS
UPCOMING HOTELS
amba Taipei Zhongshan
6.7 million
International Visitor
Arrivals 2013
255 rooms
Number of New Rooms
2013
TWD
63.3% 7,631
Note: Taipei Hotels refers to Luxury & Upper Upscale stock only.
Source: STR Global (YTD July 2014), Dept. of Information and Tourism, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room
Occupancy
Average Daily
Rate (ADR)
TWD
4,831
Revenue per Available
Room (RevPAR)
19
20
Hotel Destinations Asia Pacific
Tokyo
The 2020 Summer Olympic Games is set to bring a flood of tourism
not only for the host city, but for the country. Tokyo’s hotel sector
is entering an exciting new chapter. Japan’s economic revival is also
providing a boost, with the depreciation of the Yen prompting a surge
of international inbound arrivals and an expanding domestic economy
driving renewed growth in corporate and leisure travel. Even after the
athletes have checked out in 2020, the world’s most populous metropolis
will continue to offer a seemingly endless variety of culture, dining,
entertainment and fashion, with the usual Olympic legacy of new and
improved infrastructure.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
According to the Japan Tourism
Agency, international accommodation
guests in Tokyo reached 2.4 million (YTD
Mar 2014), a 28.3% increase from the
same period in the previous year,
driven by the boosted demand from
inbound tourists.
The government expects a further
increase in the number of inbound
tourists, resulting from marketing
initiatives implemented through the
“Visit Japan Project”, rising number
of direct flights from international
cities, and further relaxation of visa
requirements for South East
Asian countries.
According to Japan Ministry of Health,
Labour and Welfare, new hotel supply
in Tokyo totalled 684 hotels as at
March 2013. Over the first half of 2014,
numerous limited-service hotels and the
new 164-room Andaz Tokyo opened in
central Tokyo. Three old hotels totalling
762 rooms closed in March.
Hotel trading performance is expected
to improve, driven by increasing
accommodation demand from inbound
travellers and the economic recovery.
RevPAR growth in the short term is likely
to be driven by a rising ADR. The Tokyo
Olympic and Paralympic Games in 2020
will stimulate accommodation demand
for both the corporate, MICE and leisure
segments in the middle and long term.
NEW HOTELS
NOTABLE HOTEL DEALS
Tokyo Bay Maihama Hotel Club
Resort
– JPY 35 billion
Chisun Hotel Hamamatsucho
– JPY 6 billion
The b Roppongi
– JPY 3.5 billion
UPCOMING HOTELS
Royal Park The Haneda
Richmond Hotel Premier Asakusa
AMAN Tokyo
164
rooms
ANDAZ Tokyo
150
rooms
Courtyard By Marriott
Tokyo Station
QUICK FACTS
9.4 million
International Visitor
Arrivals 2013
JPY
1,393 rooms 80.5% 45,229
Number of New Rooms
2013
Note: Tokyo Hotels refers to Luxury stock only.
Source: STR Global (YTD Jul 2014), Japan Tourism Agency, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
Occupancy
Average Daily
Rate (ADR)
JPY
36,419
Revenue per Available
Room (RevPAR)
Hotel Destinations Asia Pacific
Osaka
Osaka is the second largest city in Japan, located in the Kansai region
on the western side of Japan. Osaka dates back to the Asuka and Nara
period. Under the name Naniwa, it was the capital of Japan from 683 to
745, long before Kyoto became leader. Even after the capital was moved
elsewhere, Osaka continued to play an important role as a hub for land,
sea and river-canal transportation. Its close proximity to key tourism
destinations such as Kyoto, Nara and Kobe has also boosted inbound
arrivals as Osaka is normally included as part of the popular ‘Golden
Route’.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
According to the Japan Tourism Agency,
international accommodation guests
in Osaka reached 1.1 million (YTD Mar
2014), a significant growth of 48.2% from
the same period in the previous year.
Growth in international accommodation
guests was primarily driven by the
economic growth in the ASEAN
countries, the depreciation of the Yen,
relaxation of visa requirements, the
proliferation of low cost carriers and
increasing direct flights from major
Asian cities.
According to Japan Ministry of Health,
Labour and Welfare, new hotel supply
in Osaka totalled 359 hotels as at March
2014. Over the first half of 2014, the
new 360-room Osaka Marriott Miyako
Hotel and 271-room Mitsui Garden Hotel
Osaka Premier opened.
International visitor arrivals are
anticipated to increase within the
next few years. USJ, one of the major
demand generators for Osaka’s hotel
market, opened a new attraction called
“The Wizarding World of Harry Potter”
in July 2014, which has further boosted
tourism demand.
NEW HOTELS
NOTABLE HOTEL DEALS
Osaka Namba Washington
Hotel Plaza
– JPY 8.9 billion
Dormy Inn Namba
– JPY 700 million
Hyatt Regency Osaka
– Undisclosed
UPCOMING HOTELS
Courtyard by Marriott Shin-Osaka
Station – Rebranding
360
rooms
Osaka Marriott Miyako
Hotel
271
rooms
Mitsui Garden Hotel
Osaka Premier
QUICK FACTS
4.1 million
International Visitor
Arrivals 2013
900 rooms
Number of New Rooms
2013
Note: Osaka Hotels refers to Luxury and upscale stock.
Source: STR Global (YTD Jul 2014), Japan Tourism Agency, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
JPY
77.4% 16,902
Occupancy
Average Daily
Rate (ADR)
JPY
13,077
Revenue per Available
Room (RevPAR)
21
22
Hotel Destinations Asia Pacific
Shanghai
As the Chinese middle class swells, domestic tourism is booming and
Shanghai is among the biggest beneficiaries. With more than 25 million
inhabitants, the port is an economic powerhouse, now connected
to Beijing by high-speed rail. Cutting-edge infrastructure is also
transforming the international visitor experience: a magnetic levitation
train, which links the international airport to the city, reaches speeds of
430 kilometres per hour and provides a heady start to any stay. Visitors
won’t find the must-see attractions of Beijing, New York or Rome but
they will find endless entertainment walking the streets of this exciting
global mega-city.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
According to the Shanghai Statistics
Bureau, international visitor arrivals as
at YTD June 2014 recorded y-o-y growth
of 7.7%, reaching 3.93 million. Key
source markets have recorded a fall
of inbound visitors with the exception
of Singapore and Malaysian, both
increasing market share by 18.3% and
10.0% respectively. This is due to the
promotions of China tourism regionally.
The Shanghai Free-Trade Zone
launched in September 2013 has started
showing its effect on bringing more
corporate travellers in 2014. With the
development of tourism in Mainland
China and policies to encourage
both corporate and leisure travellers,
international arrivals have started
showing recovery.
Several hotels with delayed openings in
2013 have returned to the development
pipeline, thereby ramping up our
medium term supply forecast. Around
6,650 rooms are set to enter the
Shanghai market next year (10% of
existing supply in terms of room count). Whilst visitor arrivals are steadily
growing, the demand and supply
imbalance prevails with a greater
number of hotels opening than the
market is able to absorb.
The 2014 Shanghai Tourism Festival,
held from September 13th to October
6th, includes 56 key tourist attractions to
be offered at discounts. With enriched
urban tourism choices, the Shanghai
Tourism Festival will further promote
the leisure tourism market. The second
half of 2014, usually a peak season for
the MICE market together with new visa
policies, is expected to welcome more
visitors to the city.
NEW HOTELS
NOTABLE HOTEL DEALS
Shanghai JC Mandarin Hotel
– RMB 2,118 million
Regal Jinfeng Hotel
– RMB 600 million
Golden City Garden
– RMB 588.2 million
UPCOMING HOTELS
Sheraton Shanghai Jiading Hotel
333
rooms
Pullman
Shanghai South
317
rooms
Shanghai Marriott
Hotel Parkview
313
rooms
Crowne Plaza
Shanghai Noah Square
QUICK FACTS
6.1 million
International Visitor
Arrivals 2013
235
rooms
Hyatt Regency
Shanghai Chongming
RMB
1,839 rooms 64.0% 1,045
Number of New Rooms
2013
Occupancy
Note: Shanghai Hotels refers to upscale stock only.
Source: STR Global (YTD Jul 2014), Shanghai Municipal Tourism Administration.
ADR – Average daily rate, RevPAR – Revenue per available room.
Average Daily
Rate (ADR)
RMB
668
Revenue per Available
Room (RevPAR)
Hotel Destinations Asia Pacific
Beijing
In Beijing the ancient rubs shoulders with the modern. As one of the
six ancient cities in Mainland China, it has been the heart and soul of
politics and society throughout its long history and consequently there
is an unparalleled wealth of discovery to delight and intrigue travellers
as they explore the city’s ancient past and exciting modern development.
The growth of the city’s hotel industry didn’t stop after the closing of the
2008 Olympic Games. Nor did ambitious infrastructure improvements:
by 2015 the city will have opened 14 new subway lines and last year
city authorities announced 126 new projects that will see the further
upgrading of this booming urban landscape.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
International arrivals to Beijing
experienced a y-o-y decline of 5.9% to
2.36 million by July 2014. Concerns of air
pollution in Beijing and the appreciation
of the Chinese Yuan which potentially
increases the travelling cost in Beijing for
leisure visitors are the two main reasons
contributing to the decline in international
visitor arrivals.
Corporate demand to Beijing is
anticipated to show gradual growth as
the economy recovery continues as well
as new business opportunities which
rises as the reform deepens. Improving
relationships between Taiwan and
Mainland China have also resulted in
more visitor traffic between both sides.
In Q1 2014, approximately 1,208 rooms
were added to the market. Approximately
3,610 hotel rooms of international branded
hotels are planned to be added to the
market by the end of 2014. The second half
of 2014 might see more international hotel
openings with more than 2,200 rooms such
as the Mandarin Oriental Beijing,
W Beijing, Kempinski Beijing and
Rosewood Beijing.
MICE demand in Beijing is set to remain
strong in view of the pipeline of events
in 2014, especially the peak season in
the 2nd half year. We can see China
is more and more active in promoting
themselves in all aspects and most of
them happen in Beijing. The industrial
conferences and forums are expected
to bring demand to the hotels as well as
create demand in the future.
NEW HOTELS
NOTABLE HOTEL DEALS
Holiday Inn Downtown Beijing
– RMB 554 million (alloc’d)
Pacific Century Place Apartments
– RMB 722.4 million (alloc’d)
Aman Summer Palace
– RMB 112.2 million (partially) (alloc’d)
UPCOMING HOTELS
Rosewood Beijing
Kempinski Beijing
InterContinental Beijing City Center
Mandarin Oriental Beijing
W Hotel Beijing
466
rooms
Crowne Plaza
Beijing Lido
407
rooms
Beijing JW Marriott
Hotel Central
312
rooms
Wanda Realm
Beijing
QUICK FACTS
4.5 million
International Visitor
Arrivals 2013
1,008 rooms 67.4%
Number of New Rooms
2013
Occupancy
254
rooms
Holiday Inn Express
Beijing Yizhuang
RMB
971
Average Daily
Rate (ADR)
Note: Beijing Hotels refers to upscale stock only.
Source: STR Global (YTD Jul 2014), China Tourist Hotel Association (YTD July 2014, JLL), Real Capital Analytics.
ADR – Average daily rate, RevPAR – Revenue per available room.
176
rooms
Waldorf Astoria
Beijing
RMB
655
Revenue per Available
Room (RevPAR)
23
24
Hotel Destinations Asia Pacific
Bangkok
Bangkok may be in a period of political upheaval, but few industry
experts doubt the long-term prospects of the Thai capital’s hotel and
hospitality sector. International tourists enjoy a colourful city break en
route to Thailand’s paradise coastlines. Bangkok hotels receive most of
their guests from Asia with China, Japan, India and Korea representing
the top four markets. Bangkok’s sights, attractions, and city life appeal
to diverse groups of tourists. Royal palaces and temples as well as
museums constitute its major historical and cultural tourist attractions.
Shopping and dining experiences offer a range of choices and prices.
The city is also famous for its nightlife.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
International visitor arrivals to Bangkok
registered a 20.1% y-o-y growth to 17.5
million visitors during 2013, according
to the Thailand’s Office of Tourism
Development. The political crisis during
the first half of 2014 culminating with a
military coup has been detrimental to
Bangkok’s tourism market with a strong
decline in the number of
foreign arrivals.
A number of new flights improving
connectivity to Bangkok, as well as
strong inbound Mainland Chinese
tourism have driven demand over the
past few years. Mainland China was
the fastest-growing source market,
representing a substantial increase of
52.7% y-o-y in 2013. Mainland China,
Japan, Russia, India and South Korea,
respectively were the top five
source markets.
Over the course of 2013, the majority
of new hotels (81.5%) are categorised
as upscale, and mainly concentrated
in the Pratunam and Sukhumvit areas.
Over 600 rooms have already become
operational in the first half of 2014, while
another 1,800 rooms are scheduled to
open in the second half of the year, the
majority of which are categorised as
upscale hotels, representing 60.5% of
total
future supply.
Political demonstrations have had
an adverse effect on Hotel trading
performance across all categories
during YTD July 2014. However, the Thai
government lifted the 60-day state of
emergency in March 2014 potentially
leading the way to a return to stability
and recovery in tourist arrivals. In
the near term, we expect the tourism
market to rebound throughout 2015.
NEW HOTELS
NOTABLE HOTEL DEALS
There were no hotel transactions
in 2014
290
rooms
Radisson Blu Plaza
Hotel Bangkok
184
rooms
Holiday Inn Express
Bangkok Sathorn
82
rooms
U Sukhumvit
Bangkok
QUICK FACTS
UPCOMING HOTELS
Hotel Indigo Bangkok
Park Hyatt Central Embassy
Le Méridien Suvarnabhumi Golf
Resort & Spa
THB
17.5 million 2,672 rooms 45.2% 5,831
International Visitor
Arrivals 2013
Number of New Rooms
2013
Note: Bangkok Hotels refers to Luxury stock only.
Source: STR Global (YTD Jul 2014), Tourism Authority of Thailand, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
Occupancy
Average Daily
Rate (ADR)
THB
2,636
Revenue per Available
Room (RevPAR)
Hotel Destinations Asia Pacific
Phuket
Phuket is Thailand’s largest island and one of the most popular tourist
destinations in Southeast Asia. Located in the Andaman Sea, the island’s
long history has shaped the Phuket of the present with its diverse ethnic
groups, culture and architectural influence. These attributes have made
Phuket a complete tourist destination that offers a lot more beyond its
natural heritage of sea, sand, forest, and world-renowned diving sites.
Sino-Portuguese architecture casts its spell delighting visitors, while
Phuket’s style of hospitality has never failed to impress tourists from all
walks of life.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
In 2013, international arrivals to Phuket
grew 25.8% y-o-y to 3.2 million, while
domestic arrivals grew 10.8% to 2.5
million. The political turmoil occurring
in Bangkok in early 2014 had a limited
impact on Phuket tourism overall with
a further 3.7% growth in international
arrivals recorded as at YTD June 2014.
Mainland China has been the fastest
growing source market to Phuket over
the past few years; surpassing Australia
as the largest source market for the first
time in 2012 with 953,000 visitors. The
growth in Mainland Chinese visitors has
been supported by improving
air connectivity.
There were 55,940 rooms in Phuket at
the end of 2013. Supply is expected to
increase by 4,620 rooms between 2014
and 2016, which translates to a growth
rate of 8.3% relative to total supply in
2013. The majority of future rooms will
be concentrated in the upscale segment
(39.9%), followed by the midscale
segment (33.1%).
Political demonstrations in Bangkok
followed by a military coup had a
marginal effect on trading performance
of Phuket hotels with a moderate 4.8%
decline in occupancy levels as at YTD
July 2014. In the medium to longer term,
we expect occupancy levels to bounce
back in light of growing demand and
limited future room supply.
NEW HOTELS
NOTABLE HOTEL DEALS
Burasari Resort Patong
– THB 1.30 billion
Patong Heritage Hotel
– THB 1.05 billion
314
rooms
Grand Mercure Phuket
Patong
144
rooms
Tune Hotel Patong
77
rooms
Anantara Phuket Layan
Resort & Spa
QUICK FACTS
UPCOMING HOTELS
Centara Grand Moringa Resort & Spa
Eastin Yama Hotel Kata Phuket
Days Hotel Phuket Town
3.2 million
International Visitor
Arrivals 2013
THB
1,497 rooms 69.0% 4,424
Number of New Rooms
2013
Note: Phuket Hotels refers to Marketwide Hotels.
Source: STR Global (YTD Jul 2014), Tourism Authority of Thailand, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
Occupancy
Average Daily
Rate (ADR)
THB
3,052
Revenue per Available
Room (RevPAR)
25
26
Hotel Destinations Asia Pacific
Mumbai
Home to major corporate and financial institutions, Mumbai has
emerged as the economic powerhouse of the country and thus known
as the ‘Financial Capital of India’. Mumbai also serves as a gateway to
western India and has the second busiest domestic and international
airport. Apart from business demand, Mumbai is also popular among
leisure tourists as it serves as a base for visiting popular tourist
destinations in Western India including Goa. Such a demand profile has
proven to be a boon for the city’s lodging market.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
During Financial Year 2013-14*, both
domestic as well as international
passenger traffic to Mumbai airport
grew to an all-time high of 21.9 million
and 10.3 million respectively. For foreign
tourists, Mumbai serves as an entry
point into India for connectivity to other
destinations within the country. Hotels
in South Mumbai primarily cater to
demand from the leisure segment.
Mumbai is the commercial capital of
India and thus the nature of lodging
demand tends to be dominated by
commercial demand, which contribute
close to around 75% of the city’s
overall lodging demand. MICE demand
is typically generated from a number
of large conventions organised in
Mumbai. Some of the major events in
2013 included ChemPetro World Expo,
Pharma World Expo, Plastivision India
and India Steel Event.
The latest opening in the 5-star segment
in Mumbai was The Palladium Hotel
(earlier known as Shangri-La Mumbai)
in 2013. Future supply includes 21 hotels
comprising of 5,485 rooms currently
under different stages of development
and planning.
While a strong supply pipeline remains
a challenge for the market in the near
term, substantial improvements in
infrastructure along with a positive
economic outlook shall underpin the
improvement in demand with future
supply to be fully absorbed over the
medium to long term.
NEW HOTELS
NOTABLE HOTEL DEALS
There were no hotel transactions
in 2014
390
rooms
The Palladium Hotel
58
rooms
Majestic Court Sarovar
Portico Navi Mumbai
QUICK FACTS
UPCOMING HOTELS
Taj Airport Hotel, Terminal 1C
JW Marriott Sahar Airport Road
W Hotel, Senapati Bapat Road
10.3 million
International Visitor
Arrivals 2013-2014
448 rooms
Number of New Rooms
2013
INR
64.4% 8,657
Occupancy
Note: Mumbai Hotels refers to Luxury Hotels only.
*Financial Year 2013-14 refers to the period 1st April 2013 to 31st March 2014.
Source: STR Global (YTD July 2014), Airports Authority of India, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
Average Daily
Rate (ADR)
INR
5,578
Revenue per Available
Room (RevPAR)
Hotel Destinations Asia Pacific
Delhi
Delhi is a city that bridges two different worlds. Old Delhi, once the
capital of Islamic India, is a labyrinth of narrow lanes lined with
crumbling havelis and formidable mosques. In contrast, the imperial
city of New Delhi created by the British Raj is composed of spacious,
tree-lined avenues and imposing government buildings. Delhi enjoys a
diverse economic base driven by sectors such as information technology,
banking, financial services and consulting. Apart from its commercial
and political importance, the city is also an important leisure tourist
destination, showcasing a rich and diverse cultural heritage.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
International passenger traffic was
at an all-time high during Financial
Year 2013-14*. As at YTD May 2014,
international arrivals continued to
increase by 0.9% y-o-y to 2.06 million.
Tourist inflow is expected to pick up
momentum during the last quarter of
2014 with the onset of winter.
Lodging demand in Delhi includes
a healthy mix of business, MICE
and leisure. Business demand has
rebounded post the election results
and is likely to remain strong over the
medium term primarily being driven by
growing foreign investment
into the country.
A majority of the new supply as well
future rooms in Delhi is concentrated
along the Delhi Airport at the Aero City.
New hotels in Delhi remain fairly limited
due to scarcity and the higher cost of
development sites in the city.
Demand levels have shown an upward
trend during the first half of 2014 across
all star categories. We expect the
surge in demand to continue over the
medium term underpinned by a stable
government formation at the centre,
business friendly environment and
continued government commitment to
support tourism.
NEW HOTELS
NOTABLE HOTEL DEALS
There were no hotel transactions
in 2014
523
rooms
JW Marriott Hotel New
Delhi Aerocity
315
rooms
ibis Delhi Airport
280
rooms
Lemon Tree Premier,
Delhi Airport
QUICK FACTS
UPCOMING HOTELS
Park Inn by Radisson, IP Extension
Novotel Delhi Airport
Pullman Delhi Airport
Aloft Delhi Airport
Andaz Delhi Airport
12.6 million
International Visitor
Arrivals 2013
672 rooms
Number of New Rooms
2013
265
rooms
Holiday Inn New Delhi
International Airport
INR
66.1% 9,173
Occupancy
Note: Delhi Hotels refers to Luxury Hotels only.
*Financial Year 2013-14 refers to the period 1st April 2013 to 31st March 2014.
Source: STR Global (YTD July 2014), Airports Authority of India, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
Average Daily
Rate (ADR)
207
rooms
Red Fox Hotel,
Delhi Airport
INR
6,064
Revenue per Available
Room (RevPAR)
27
28
Hotel Destinations Asia Pacific
Ho Chi Minh City
As a result of the sweeping economic changes wrought by doi moi in
1986, Ho Chi Minh City, perched on the banks of the Saigon River and
still known as Saigon to its eight million or so inhabitants, has changed
its image from that of a war-torn city to one of a thriving metropolis.
With all the key components of economic success – fine restaurants,
flash hotels, glitzy bars and clubs, and shops selling imported luxury
goods – are here, adding a glossy veneer to the city’s hotchpotch
landscape of French stones of empire, venerable pagodas and austere,
Soviet-style housing blocks.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
International arrivals registered a y-o-y
growth of 8.1% in 2013. As of year-todate June 2014, international arrivals
reached 2.1 million, which translates to
a growth rate of 9% over 2012.
Top source markets include China,
Malaysia, Russia, Australia and Japan.
The Vietnam National Administration of
Tourism has targeted 4.4 million foreign
arrivals to HCMC in 2014.
JLL has identified around 20 Hotels
comprising of about 5,000 rooms
classified as international standard
three to five-star Hotels. According to
our research, future supply includes
2,900 rooms to be added to the market
over the next five years.
With continued growth in the number
of international arrivals, we expect
lodging demand levels to strengthen
further over the short to medium term.
However, new supply slated to enter
the market may put some pressure on
average room rates in the near term.
NEW HOTELS
NOTABLE HOTEL DEALS
Movenpick Hotel Saigon
– USD 30.4 million
306
rooms
Pullman Saigon Centre
126
rooms
68
rooms
Capri by Frasers
QUICK FACTS
UPCOMING HOTELS
Le Méridien Saigon
ibis Grand Palace
Ritz-Carlton Hotel
4.1 million
International Visitor
Arrivals 2013
432 rooms
Number of New Rooms
2013
66.9%
Occupancy
Note: Ho Chi Minh City Hotels refers to Marketwide Hotels.
Source: STR Global (YTD July 2014), Vietnam National Administration of Tourism (VNAT), JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
USD
USD
Average Daily
Rate (ADR)
Revenue per Available
Room (RevPAR)
120
80
Hotel Destinations Asia Pacific
Hanoi
Hanoi, the capital of Vietnam and second largest city in the country,
offers a fascinating blend of East and West, combining traditional
Sino-Vietnamese motifs with French flair. It is largely unscathed from
the decades of war, and is now going through a building boom, making
it a rapidly developing city in Southeast Asia. Its crumbly, lemonhued colonial architecture is a feast for the eyes; swarms of buzzing
motorbikes invade the ear, while the delicate scents and tastes of
delicious street food can be found all across a city that – unlike so many
of its regional contemporaries – is managing to modernise with a degree
of grace.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
During 2013, international arrivals to
Hanoi increased by 12.2% from 2012 to
reach an all-time high of 2.6 million. At
YTD June 2014, international arrivals
to Hanoi reached 1.4 million, which
represents an increase of 17.4%
compared to the same period in 2013.
Top source markets to Hanoi include
China, Japan, Australia, South Korea
and Singapore. Growing number of
domestic flights from Hanoi is benefiting
the overall tourism industry as visitors
are encouraged to travel to multiple
destinations throughout Vietnam.
Existing supply in Hanoi comprises of
44,723 rooms, with more than half of the
establishments being unrated. Some of
the existing hotels are being upgraded
and/or expanded and rebranded to
capture growing demand and remain
competitive. Future supply includes four
hotels with a total inventory of 1,223
rooms expected to enter the market
over the next three years.
The territorial dispute between Vietnam
and China is likely to continue to
affect Chinese visitor arrivals to Hanoi
(currently the top source market to
Hanoi) in the short term. With a recent
decline in the number of Chinese
visitors to Hanoi, the tourism authorities
have been planning focused promotion
campaigns in other key source markets
including Japan, South Korea, Malaysia,
Singapore, Russia and other East
European countries.
NEW HOTELS
NOTABLE HOTEL DEALS
There were no hotel transactions
in 2014
445
rooms
JW Marriott Hotel
Hanoi
318
rooms
Lotte Hotel
Hanoi
86
rooms
Hilton Garden Inn
Hanoi
QUICK FACTS
UPCOMING HOTELS
Mercure Hado Hanoi
The InterContinental Hanoi
Novotel Ciputra Hanoi
2.6 million
International Visitor
Arrivals 2013
531 rooms
Number of New Rooms
2013
64.6%
Occupancy
Note: Hanoi Hotels refers to Marketwide Hotels.
Source: STR Global (YTD July 2014), Vietnam National Administration of Tourism (VNAT), JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
USD
USD
Average Daily
Rate (ADR)
Revenue per Available
Room (RevPAR)
111
72
29
30
Hotel Destinations Asia Pacific
Bali
Known as the island of the gods, Bali is one of the most popular tourist
destinations in the world. Few places on earth are blessed with the
amount of sandy beaches, rugged coastlines, lush rice terraces, barren
volcanic hillsides, panoramic views, art galleries, local traditions,
culture and nightlife that Bali has to offer. On top of all this, Bali is
benefiting from increased domestic and international visitor arrivals
thanks to its continuously improving infrastructure, affordable air
connections and Indonesia’s stable economic growth. Despite the rapid
growth of development and tourism, the Balinese tradition, culture and
lifestyle is still what it was and continues to make the island stand out
from other destinations.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
International visitor arrivals to Bali
recorded a significant double digit
y-o-y growth of 13.0% to reach 3.3
million visitors in 2013 – the island’s
highest climb since the global financial
crisis. The uncertainties in the political
situation in Thailand have benefited Bali
as many visitors were redirected
from Phuket.
Bali is an established resort destination
among international and domestic
travellers alike. Significant growth was
noted in several main source markets
including Mainland China, Malaysia,
Singapore, and Taiwan. The growth
of the MICE (meetings, incentives,
conventions and exhibitions) market is
also expected to generate more room
demand for Bali.
The upcoming supply in the Bali hotel
market is expected to grow significantly
in the next few years across the various
market sectors. From YTD September
2014 to 2017, approximately 9,380 rooms
are anticipated to be added to room
supply, representing an increase of
approximately 35.2% to current
room supply.
Bali’s tourism market remained resilient
as reflected by the strong y-o-y growth
in international arrivals in 2013. In
view of the large number of hotel
developments coming online in Bali, the
island’s ADR and occupancy growth
may be limited in the short term.
NEW HOTELS
NOTABLE HOTEL DEALS
There were no hotel transactions
in 2014
306
rooms
Swiss-Belresort Watu
Jimbar
290
rooms
Courtyard by Marriott
Seminyak
231
rooms
Harris Hotel
Seminyak
QUICK FACTS
UPCOMING HOTELS
Centara Waku Resort
Golden Tulip Jineng Tamansari
Mercure Legian
Meritus Pecatu
U Sameera Pecatu
3.3 million
International Visitor
Arrivals 2013
3,235 rooms 69.2%
Number of New Rooms
2013
Note: Bali Hotels refers to Luxury stock only.
Source: STR Global (YTD Jul 2014), Statistics Indonesia, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
Occupancy
194
rooms
Citadines
Kuta Beach
USD
445
Average Daily
Rate (ADR)
168
rooms
Holiday Inn Express
Raya Kuta
USD
308
Revenue per Available
Room (RevPAR)
Hotel Destinations Asia Pacific
Jakarta
Primarily a city of government, business, industry and trade, Jakarta is
also the main gateway to Indonesia’s many tourism destinations. In 2013
Jakarta witnessed its highest ever number of visitor arrivals. Although
the capital of the world’s fourth most populous nation is seldom viewed
as a centre for tourism and culture itself, efforts to improve the city’s
reputation as a service and tourism city have been stepped-up. In recent
years, Jakarta has expanded its facilities for visitors by developing new
multi-star luxury hotels, entertainment centres, fine restaurants as well
as tourist attractions in an effort to boost visitor arrivals.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
International visitor arrivals in 2013 were
the highest ever recorded for Jakarta,
achieving 2.2 million due to healthy
economic growth and increasing foreign
direct investment. Malaysia remained
the top source market due to its close
proximity to Jakarta and the proliferation
of low-cost carrier, which increased flight
connectivity between the
two countries.
As the capital city of Indonesia,
Jakarta is predominantly a corporate
destination where most businesses are
headquartered. Corporate demand is
likely to remain strong as multinational
companies continue to invest in
Indonesia and demand for office space
continues on the growth trajectory.
As at September 2014, we estimate that
a total of 12 hotels, comprising 2,417
rooms have opened. The new hotels are
primarily in the economy and midscale
segments, which includes ibis, Holiday
Inn Express, and Swiss-Belinn. Another
984 rooms are expected to enter the
supply by the end of 2014.
International and domestic visitor
arrivals to Jakarta are likely to
continue to grow as macroeconomic
fundamentals remain strong. The limited
number of upscale and luxury hotel
additions in the pipeline are likely to
result in stable trading performances
of these sectors while the expansion of
midscale and economy hotels may put a
strain on the market’s rate.
NEW HOTELS
NOTABLE HOTEL DEALS
There were no hotel transactions
in 2014
297
rooms
Holiday Inn Express
Pluit Citygate
297
rooms
Mercure Sabang
257
rooms
Holiday Inn Kemayoran
QUICK FACTS
UPCOMING HOTELS
Aston Priority Simatupang
Harris Hayam Wuruk
Harris Hotel Airport
Swiss-Belinn Pluit
Zest Hotel Airport
2.2 million
International Visitor
Arrivals 2013
2,228 rooms 62.7%
Number of New Rooms
2013
Note: Jakarta Hotels refers to Upscale stock only.
Source: STR Global (YTD Jul 2014), Statistics Indonesia, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
Occupancy
253
rooms
DoubleTree by Hilton
Diponegoro
USD
182
Average Daily
Rate (ADR)
253
rooms
ibis Styles Jakarta
Airport
USD
114
Revenue per Available
Room (RevPAR)
31
32
Hotel Destinations Asia Pacific
Mauritius
Mauritius is a fascinating island paradise. Its very name is synonymous
with tropical luxury and extravagance. Luxury here is surprisingly
affordable – Mauritius has some of the best value accomodation in the
Indian Ocean. While in many destinations famed for cobalt-blue seas,
white sandy beaches and luxury hotels, you may eventually find yourself
wishing for something to do besides sunbathing and swimming, it’s
often hard to know what to do next in Mauritius. It was writer Mark
Twain who said: “You gather the idea that Mauritius was made first and
then heaven was copied after Mauritius.”
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
France is the leading inbound market
to Mauritius at 244,752 tourists in 2013,
representing a quarter of all arrivals.
Europe is the principal source of tourist
travel despite falling 1.5% last year.
The number of visitors across Asia
Pacific rose by 24.3% and visitors from
Mainland China alone increased by over
100% since Air Mauritius introduced
direct flights.
Mauritius attracts tourists looking for a
tropical climate. There is relatively little
business travel with fewer than 5% of
tourists in 2013 arriving for business
purposes. Mauritius competes with
the likes of the Maldives, Sri Lanka and
the Seychelles for the tropical tourist
market.
There were 12,376 available hotel rooms
in Mauritius in 2013. There are a number
of projects that recently opened that
will lead to an increase in available
rooms. Accomodation in Mauritius is
facing increased competition from highend self-catering residences that are
attracting wealthy tourists.
An increase in airline capacity to
Mauritius will support increased
inbound tourism however, Mauritius is
facing stronger competition as a tourist
attraction from nearby resort markets
and an above average pipeline of new
luxury hotels that will place pressure
not only ADR, but also occupancy.
NEW HOTELS
NOTABLE HOTEL DEALS
Movenpick Resort and Spa Mauritius
– USD 40 million
333
rooms
Trou aux Biches
Resort & Spa
172
rooms
St. Regis Mauritius
86
rooms
Centara Grand Azuri
Resort & Spa
QUICK FACTS
UPCOMING HOTELS
Royal Palm Mauritius
Holiday Inn Mauritius Airport
The Westin Mauritius
Mövenpick Mauritius
993,106
International Visitor
Arrivals 2013
664 rooms
Number of New Rooms
2013
Note: Mauritius Hotels refers to Five-star stock only.
Source: Ministry of Tourism and Leisure, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
53.7%
Occupancy
52
rooms
Angsana Balaclava
Mauritius
USD
316
Average Daily
Rate (ADR)
21
rooms
Baystone Boutique
Hotel & Spa
USD
170
Revenue per Available
Room (RevPAR)
Hotel Destinations Asia Pacific
Seychelles
The granite islands of the Seychelles archipelago cluster around the
main island of Mahé, home to the country’s international airport and
its capital, Victoria. Measuring 28 kilometres long by eight kilometres
wide, the island is home to almost 90% of the Seychelles’ total
population, reflecting the country’s diverse ethnicity and descent from
African, Indian, Chinese, and European populations. Together, the
islands of Mahé, Praslin and La Digue form the cultural and economic
hub of the nation and contain the majority of Seychelles’ tourism
facilities as well as its most stunning beaches. An expensive destination
renowned for its ultra-luxurious options, the Seychelles also offers
plenty of quaint, affordable self-catering facilities and guesthouses.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
In 2013, international visitor arrivals to
Seychelles increased 10.7% y-o-y, largely
driven by European countries. However,
arrivals declined marginally by 1.1%
during YTD May 2014 in comparison to
the same period last year.
France and Germany remain the
dominant source markets, comprising
15.5% and 14.5% of total visitor arrivals
during 2013, followed by Italy (9.5%) and
Russia (6.2%). Mainland China has been
the fastest growing source market over
the past few years. During 2013, arrivals
from Mainland China surged 72.7%
y-o-y. This has been supported by the
launch of three weekly flights to Hong
Kong by Air Seychelles.
According to Seychelles’ National
Bureau of Statistics, there are a total
of 32 hotels with 2,468 rooms as at the
end of 2013 excluding smaller hotels
or guesthouses (with an inventory of
less than 25 rooms). Recent openings in
Seychelles include the Savoy Resort &
Spa, 163 keys in Mahe during May 2014.
JLL anticipate a modest growth in
demand from Europe while Middle East
and Asian markets are expected to
drive growth in the near future. Trading
performance is expected to improve
with a surge in demand driven by
growing visitation, while limited supply
pipeline will fuel room rate growth over
the medium term.
NEW HOTELS
NOTABLE HOTEL DEALS
Banyan Tree Seychelles (70%)
– 60 villas, USD 25 million
163
rooms
Savoy Resort & Spa
10
rooms
Enchanted Island Resort
QUICK FACTS
UPCOMING HOTELS
Avani Seychelles Barbarons
Resort & Spa
Shangri-La Resort & Spa
230,272
International Visitor
Arrivals 2013
173 rooms
Number of New Rooms
2013
Note: Seychelles Hotels refers to Marketwide Hotels.
Source: Seychelles’ National Bureau of Statistics, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
65.0%
Occupancy
USD
400
Average Daily
Rate (ADR)
USD
260
Revenue per Available
Room (RevPAR)
33
34
Hotel Destinations Asia Pacific
Maldives
A vast stretch of 26 atolls in the azure waters of the Indian Ocean, the
Maldives is one of the world’s finest paradise resorts. Few destinations
are blessed with such close proximity to so many fast-growing tourist
markets: Russia, India, Mainland China and the emerging markets of
Southeast Asia are all within 10-hour direct flights. But demand from
Europe, the Maldives’ traditional visitor source, is growing too, with
Germany supplying the second highest number of arrivals. Mainland
China takes the top spot. Nightly rates are rocketing as a result, driving
real estate transactions in access of USD 1 million per room as investors
scramble to get their share of paradise.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
As at YTD June 2014, visitor arrivals
increased by 11.2% y-o-y, underpinned
by significant double digit growth in
visitors from Mainland China,
South Korea and India. In 2013,
visitor arrivals to the Maldives surged
by 17.4% y-o-y, largely driven by the
Mainland Chinese market.
As the leading source market to the
Maldives, Mainland China comprises
about 29.5% of total visitor arrivals to
the country in 2013, which is almost
three times that of the second leading
source market, Germany. As at YTD
June 2014, mainland Chinese arrivals
registered strong growth of 20.2% from
the previous year and comprised 28.5%
of total visitor arrivals.
The latest resort to open in the Maldives
is Maalifushi by COMO (the former
Regent) on Thaa Atoll in January 2014.
The property is the second property
under the COMO Hotels and Resorts
brand, and comprises 33 over-water
villas and 33 land suites/villas.
There were four resort openings in 2013,
adding 385 rooms to the
Maldives’ room inventory.
Underpinned by its liberal trade
environment, increasingly dynamic
private sector, and robust growth in
visitor arrivals, we expect investor
interest in the Maldives to remain
strong. Recent legislative changes that
include acquiring islands on longer
leases as well as the opportunity to
extend existing leases will also help
encourage investment demand.
NEW HOTELS
NOTABLE HOTEL DEALS
Beach House Iruveli
– USD 82 million
Six Senses Laamu
– USD 70 million
Jumeirah Dhevanafushi
– USD 59.6 million
UPCOMING HOTELS
Hideaway Beach Resort & Spa
Centara Hudhufushi Resort & Spa
Konotta Island Resort
Radisson Plaza Resort Maldives
Naagoshi
Radisson Maldives Hulhumale
150
rooms
Atmosphere Kanifushi
Maldives
66
rooms
Maalifushi by COMO
50
rooms
Velaa Island Resort
QUICK FACTS
1.1million
International Visitor
Arrivals 2013
385 rooms
Number of New Rooms
2013
69.8%
Note: Maldives Hotels refers to Marketwide Hotels.
Source: STR Global (YTD Jul 2014), Ministry of Tourism, Arts & Culture, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
Occupancy
45
rooms
Cheval Blanc Ranheli
USD
787
Average Daily
Rate (ADR)
USD
549
Revenue per Available
Room (RevPAR)
Hotel Destinations Asia Pacific
Sri Lanka
Located south of the Indian subcontinent and just above the Equator
amid the pleasant waters of the Indian Ocean, the tropical island
nation of Sri Lanka is a place where nature’s beauty remains abundant
and unspoilt. Five years after the end of the Sri Lankan civil war, the
tourism sector has seen tremendous growth. The impressive pace of
infrastructure development including several new expressways and a
second international airport, as well as focused destination marketing
efforts, have strengthened the country’s position as a competitive
tourism destination.
HIGHLIGHTS
Tourism
Demand
Supply
Outlook
Sri Lanka continued on its high growth
trajectory, with 2013 arrivals growing by
26.7% to 1.3 million tourists, generating
total earnings of USD 1.7 billion. The Sri
Lankan Tourism Development Authority
(SLTDA) has set a target of 1.5 million
tourists in 2014, and a long-term target of
2.5 million annual arrivals in 2016, which
amounts to a compounded annual growth
of over 25% y-o-y.
While Sri Lanka earlier depended
heavily on European tourist traffic,
there has been a recent increase in
tourist inflow from the Asia Pacific
region, particularly from India and
Mainland China. Another growing
trend is a phenomenal increase in
domestic tourism, against the backdrop
of improved economic conditions and
higher disposable incomes, while
increased foreign investment and
infrastructure development has fuelled
business demand.
Sri Lanka has approximately 27,000
SLTDA approved existing hotel
rooms, with the majority consisting
of independent boutique hotels and
informal accommodation. Sri Lanka
has seen high levels of interest from
international hospitality players
including the Shangri-la Group, ITC
Hotels, Starwood Hotels and Resorts,
Marriott International, Hyatt Hotels
Corporation and Minor International,
while local hospitality chains including
John Keells, Jetwings and Aitken
Spence have undertaken aggressive
expansion plans.
The government’s focus on improving
tourism infrastructure in the northern
and eastern regions of the country
as well as other emerging tourism
zones have also begun to take shape,
while Colombo is being developed and
positioned as a leading entertainment
destination. Continued focus on
facilitating FDI investment into the
country, particularly in the tourism,
infrastructure, knowledge services,
export and manufacturing sectors will
continue to drive business demand to
Sri Lanka.
NEW HOTELS
NOTABLE HOTEL DEALS
Amangalla
– USD 10.9 million
Unawatuna Beach Resort
– USD 10 million
Centara Passikudah Resort & Spa
(51%)
– USD 8.5 million
UPCOMING HOTELS
Sheraton Colombo
Hyatt Regency Colombo
Marriott Weligama
Mövenpick Colombo
Anantara Tangalle
Shangri-La Hambantota
165
rooms
Centara Ceysands
Resort & Spa, Bentota
158
rooms
Ozo by Onyx Hospitality,
Colombo
87
rooms
Anantaya,
Chilaw
QUICK FACTS
1.3 million
International Visitor
Arrivals 2013
1,800 rooms 70.0%
Number of New Rooms
2013
Source: Sri Lankan Tourism Development Authority, JLL.
ADR – Average daily rate, RevPAR – Revenue per available room.
Occupancy
USD
USD
Average Daily
Rate (ADR)
Revenue per Available
Room (RevPAR)
110
77
35
36
Hotel Destinations Asia Pacific
Quick Facts
INTERNATIONAL VISITOR
ARRIVALS 2013
NUMBER OF
NEW ROOMS 2013
OCCUPANCY
USD AVERAGE
DAILY RATE (ADR)
USD REVENUE PER
AVAILABLE ROOM
(REVPAR)
54.3 million
2,623
77.6%
473
367
29.3 million
2,067
90.0%
209
188
pore
a
g
n
Si y)
15.6 million
3,340
79.2%
322
255
r
mpu
u
L
la
)
Kua upscale
25.7 million
1,250
72.7%
151
110
2.0 million
0
86.6%
204
177
rne
bou
l
e
M
1.26 million
226
85.4%
179
153
d
klan
c
u
A
2.8 million
258
83.7%
124
104
4.7 million
1,288
69.0%
128
88
12.2 million
3064
75.4%
194
146
6.7 million
255
63.3%
253
160
9.4 million
1,393
80.5%
442
356
4.1 million
900
77.4%
165
128
6.1 million
1,839
64.0%
170
109
g
Kon
g
n
Houry)
(Lux
au
Mac
ur
(Lux
ury
(Lux
&
ey
Sydn
ila
Man
l
Seou
le)
ei
psca
Taiupry & upper u
(Lux
yo
Tok )
ury
(Lux
ka
)
Osa & upscale
ury
(Lux
ghai
n
a
Sh cale)
(Ups
Hotel Destinations Asia Pacific
INTERNATIONAL VISITOR
ARRIVALS 2013
NUMBER OF
NEW ROOMS 2013
OCCUPANCY
USD AVERAGE
DAILY RATE (ADR)
USD REVENUE PER
AVAILABLE ROOM
(REVPAR)
ing
Beij le)
4.5 million
1008
67.4%
158
106
gkok
n
a
B )
17.5 million
2672
45.2%
179
81
3.2 million
1497
69.0%
136
93
10.3 million
448
64.4%
142
92
12.6 million
672
66.1%
151
100
4.1 million
432
66.9%
120
80
2.6 million
531
64.6%
111
71
3.3 million
3235
69.2%
445
308
2.2 million
2228
62.7%
182
114
s
ritiu
u
a
M tar)
993,106
664
53.7%
316
170
elles
h
c
y
Se
230,272
173
65.0%
400
260
s
dive
l
a
M
1.1 million
385
69.8%
787
549
nka
a
L
i
Sr
1.3 million
1800
70.0%
110
77
ca
(Ups
ury
(Lux
ket
Phu
bai
m
u
Muxury)
(L
i
Delh
ury)
(Lux
h
Min
i
h
Ho C
City
oi
Han
Bali )
ury
(Lux
rta
Jakaale)
c
(Ups
(5-S
Sources
STR Global (YTD July 2014), Various Country Tourism Boards, JLL.
37
38
Hotel Destinations Asia Pacific
Contributors
Scott Hetherington
Craig Collins
Karen Wales
Frank Sorgiovanni
Chief Executive Officer
Asia
[email protected]
Executive Vice President, Research
Asia Pacific
[email protected]
Chief Executive Officer
Australasia
[email protected]
Vice President, Research
Asia
[email protected]
Front cover
Hong Kong island from Victoria’s Peak
About JLL
JLL’s Hotels & Hospitality Group serves as the hospitality industry’s global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare
and fractional ownership properties; convention centers; mixed-use developments and other hospitality properties. The firm’s 300 dedicated hotel and hospitality experts
partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an
asset. In the last five years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totaling nearly US $36 billion, while
also completing approximately 4,000 advisory, valuation and asset management assignments. The group’s hotels and hospitality specialists provide independent and expert
advice to clients, backed by industry-leading research.
For more news, videos and research from JLL’s Hotels & Hospitality Group, please visit: www.jll.com/hospitality or download the Hotels & Hospitality Group’s iPhone app or
iPad app from the App Store.
JLL’s Hotels & Hospitality Group offices
Atlanta
Tel +1 404 995 2100
Dubai
Tel +971 4 426 6999
Lyon
Tel +33 4 78 89 26 26
New York
Tel +1 212 812 5700
Auckland
Tel +64 9 366 1666
Düsseldorf
Tel +49 211 13006 0
Madrid
Tel +34 91 789 1100
Paris
Tel +33 1 4055 1718
Bangkok
Tel +66 2 624 6400
Exeter
Tel +44 1392 423696
Manchester
Tel +44 161 828 6440
Perth
Tel +61 8 9322 5111
Barcelona
Tel +34 93 318 5353
Frankfurt
Tel +49 69 2003 0
Marseille
Tel +33 4 95 09 13 13
Rome
Tel +39 06 4200 671
Beijing
Tel +86 10 5922 1300
Glasgow
Tel +44 141 248 6040
Melbourne
Tel +61 3 9672 6666
São Paulo
Tel +55 11 3043 6900
Brisbane
Tel +61 7 3231 1400
Hong Kong
Tel +852 2846 5000
Mexico City
Tel +52 55 5980 8054
San Francisco
Tel +1 415 395 4900
Buenos Aires
Tel +54 11 4893 2600
Istanbul
Tel +90 212 350 0800
Miami
Tel +1 305 529 6345
Shanghai
Tel +86 21 6393 3333
Chengdu
Tel +86 28 6680 500
Jakarta
Tel +62 21 2922 3888
Milan
Tel +39 02 8586 8672
Singapore
Tel +65 6536 0606
Chicago
Tel +1 312 782 5800
Leeds
Tel +44 113 244 6440
Moscow
Tel +7 495 737 8000
Sydney
Tel +61 2 9220 8777
Dallas
Tel +1 214 438 6100
London
Tel +44 20 7493 6040
Munich
Tel +49 89 2900 8882
Tokyo
Tel +81 3 5501 9240
Denver
Tel +1 303 260 6500
Los Angeles
Tel +1 213 239 6000
New Delhi
Tel +91 124 331 9600
Washington D.C.
Tel +1 202 719 5000
www.jll.com/hospitality
Jones Lang LaSalle Property Consultants Pte Ltd | CEA Licence No. L3007326E
© 2014 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.