Hotel industry and travel news from around the Asia Pacific region; this week: Singapore vs Macau Casinos, Four Seasons to start offering Private Jet itineraries, Hotel REITS in India expected to pick up and more...

Singapore vs Macau Casinos
The slower economic growth, recent corruption crackdown and credit tightening in China, has reduced the number of Chinese VIP gamers. Gentings Singapore reported a 43 percent decline in net profit with gaming revenue declining by 21 percent. Similarly, MBS saw a decline of betting volume by 34 percent, resulting in a decline of 8.7% in gaming revenue. The world’s largest gaming centre, Macau, also saw one of the lowest records in gaming revenue this October since 2005, with revenue declining by 23.2 percent. In August this year, Singapore saw a decline of 28.2 percent in Chinese arrivals compared to the same time last year. With declining number of Chinese travellers, competition between casinos is expected to heat up.

Chinese Hotel Group Acquires Louvre Hotel Group
Jin Jiang International Holdings Co. announced its acquisition of Louvre Hotel Group which has 1100 hotels in 47 countries. The purchase has since been rumored to be around US$1.49 billion. Jin Jiang intends on capitalizing on synergies to grow both brands globally. The transaction is expected to be completed in the first quarter of 2015. Global Chinese acquisition of hotel properties have been on the rise with Waldof-Astoria (New York) and South Park Hotel (Los Angeles) being two other properties sold recently.

Four Seasons 2016 Private Jet Itineraries
Four Seasons will offer four all inclusive itineraries in 2016 with prices starting at USD100, 000. A new itinerary for September to October will bring adventure seekers to Austin, Costa Rica, Hawaii, Sydney, Langkawi, Mauritius, Serengeti, Petra and Lisbon. The private jet will provide connections to many destinations that were previously not connected by direct flights. Tokyo, Beijing, Maldives, Bali, Chiang Mai and Mumbai will be some of the other APAC destinations the private jet will stopover in.

Hotel REITS in India expected to pick up next year
Taking cue from the commercial real estate sector, the hotel industry in India is also evaluating prospects of entering the Real Estate Investment Trusts (REITs) business. Experts believe that the process might pick up from March 2015 onwards as a clearer picture is expected to emerge with the union budget in February and the Foreign Exchange Management Act (FEMA) approval for foreign investments expected shortly. Moreover, the Indian hospitality industry is poised for growth with the next ‘upcycle’ on its way, after a six-year down cycle since 2009-10. Achin Khanna, Managing Director - Consulting & Valuation for HVS South Asia said, growth will be driven by occupancies crossing the threshold limit of 60 per cent this fiscal year, as overall supply pressure dips. The stable government, improving economy and overall investor sentiment along with improved occupancies would drive the REITs story, he added.

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