|News from around the Asia Pacific region, Jan 09.|
Wednesday, 9th January 2013
Source : HVS International
Hotel, industry and travel news from around the Asia Pacific region; this week: SIA sells Virgin Atlantic, Wyndham debuts in Singapore, a Hyatt Place for SouthEast Asia and more....
Singapore Airlines Sells Virgin Atlantic
Singapore Airlines has agreed to sell its 49% share in Virgin Atlantic to Delta Airlines for US$360 million, which it had acquired back in 2000. Virgin Group founder Sir Richard Branson will retain the majority 51% stake and the Virgin Atlantic brand and operating certificate. With this acquisition, Delta will boost its share of the trans-Atlantic travel market while Virgin will be able to be able to expand its network between Europe and North America.
Tauzia to Open 30 Harris Hotels in Three Years
Indonesia-based hotel operator Tauzia Hotel Management is set to expand its network by opening an additional 30 Harris hotels across Indonesia in the next three years. These new four-star hotels will be built in second -tier cities such as Balikpapan, Kediri, Malang, Kendari and Palembang. The company will be opening four Harris hotels next year - one in Malang, East Java and three in Bali, which will be followed by 16 properties in 2014 and subsequently 10 more in 2015. These 30 properties will add 5,611 new rooms to Tauzia's portfolio. By 2015, there will be a total of 41 Harris hotels with a total inventory of 7,607 rooms. Tauzia is looking to expand the Harris brand to Malaysia and is currently in the process of opening a flagship hotel in Kuala Lumpur.
Wyndham Brands to Debut in Singapore
Wyndham Hotels Group's brands, Days Inn and Ramada, are set to make its debut in Singapore by March 2013. Located at Zhongshan Park, the two hotels will form part of a SGD300 million (US$245 million) development which will include a commercial tower, shopping mall and food and beverage outlets. The 405-room Days Hotel Singapore is scheduled to open on 31 December 2012 while the 384-room Ramada Singapore is expected to open in March 2013. The development is being developed by Singapore's HH Properties Pte Ltd, a joint venture between property development group Hiap Hoe Limited and owner and manager of leisure and commercial properties SuperBowl Holdings Limited. Both hotels are independently owned but will be operated under a management contract with Wyndham Hotel Group.
Hyatt Place to Debut in Southeast Asia
Upscale select-service brand Hyatt Place is scheduled to make its debut in Southeast Asia in 2017 with the opening of the Hyatt Place Bangkok, Sukhumvit on Soi 24. Bangkok-based real east firm Pioneer Property Company Limited and Hyatt Hotels and Resorts have signed an agreement to launch the brand in Southeast Asia. The new property will feature 220 rooms and seven studio suites and will have easy access to Bangkok's business, entertainment and dining areas. Hyatt Place Bangkok will join Hyatt's existing Thailand portfolio, the Grand Hyatt Erawan Bangkok and Hyatt Regency Hua Hin. Hyatt Hotels and Resorts will also be opening the Park Hyatt Bangkok in 2014 and Hyatt Regency Bangkok, Sukhumvit in 2017.
Low Cost Carriers Lead Growth in Intraregional Travel
The low cost sector has helped to drive the strong increase in intra-regional air travel in Asia Pacific over the past decade and is expected to continue doing so. Intra-regional air travel has grown year-on-year by 5% in frequency and 7% in seats in December 2012, while other regional markets excluding Africa are seeing demand fall. The 2012 full year capacity is expected to grow by an additional 84 million seats compared with 2011. The low cost sector has contributed significantly towards this growth with almost 93% of this additional capacity being operated by low cost carriers (LCCs). The share of LCCs in the region has grown from 19% in 2011 to 24% in 2012. In the last decade, capacity in Asia Pacific has seen an annual growth of 7.3%, from 652 million seats in 2003 to over 1.2 billion seats by 2012.
Centara Enters Budget Accommodation
Thailand-based Centara Hotels & Resorts has launched a new hotel brand, COSI Hotels, targeting budget travellers who do their own bookings online and are looking for affordable accommodation. The first COSI Hotel is expected to open in 2015 and the company is aiming to have at least 30 properties by 2020. The brand has been developed in response to the enormous economic growth in the region and the significant expansion of low cost airlines which has aided a rapid growth in travel. COSI Hotels will include free Wi-Fi within the property, "grab-n-go" restaurants, meeting rooms and an entertainment corner in the lobby area for movies and live sport.