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Hotels & Hospitality Group | March 2015
Hotel Destinations Asia Pacific
Welcome to the March 2015 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.
Enjoy the read and look out for the next edition!
Scott HetheringtonChief Executive Officer, AsiaJLL Hotels & Hospitality Group
Craig CollinsChief Executive Officer, AustralasiaJLL Hotels & Hospitality Group
Beijing
SeoulTokyo
OsakaShanghai
Taipei
Hong KongMacau
Singapore
KualaLumpur
PhuketHo ChiMinh
ManilaBangkok
YangonHanoiMumbai
Delhi
BaliJakarta
Sri Lanka
Seychelles
Maldives
AucklandMelbourne
Sydney
03Hotel Destinations Asia Pacific
Contents
36Quick Facts
08
38
City Profiles
Contributors
10 Hong Kong11 Macau12 Singapore 13 Kuala Lumpur14 Sydney15 Melbourne16 Auckland17 Manila18 Seoul19 Taipei20 Tokyo21 Osaka22 Shanghai
06
04
08
23 Beijing24 Bangkok25 Phuket26 Mumbai27 Delhi28 Ho Chi Minh City29 Hanoi30 Bali31 Jakarta32 Yangon33 Seychelles34 Maldives35 Sri Lanka
The Rise and Rise of Bali
Asia Pacific’s Key Destinations
A Sporting Nation
A Sporting Nation
Major sporting events profiting Australia’s hotel industry
05Hotel Destinations Asia Pacific
The Cricket World Cup and the Asian Cup are just two major sporting events that have benefited the hotel industry enormously around Australia in the first quarter of 2015.
The economic benefits are expected to reach in the multi-millions of dollars as more than 100,000 tourists visit Australia amidst nine weeks of sporting action.
The expected TV audiences for both the Asian Cup and Cricket World Cup are anticipated to topple more than two billion, therefore exposing Australia to new potential tourists.
That’s on top of the recently completed Australian Open (tennis), the forthcoming F1, Super Rugby and the domestic AFL and NRL seasons about to kick off.
With events played around the country, hotels of all shapes and sizes can count on an increase in guests and therefore extend an opportunity to promote their customer loyalty programmes.
Tourism Research Australia’s (TRA) International and National Visitor Survey reports, released in December 2014, reveals that international visitors grew at 8% over the year-to-date September 2014, the fastest growing rate in a decade, while domestic visitor nights rose by 7% for the same period, the fastest growth rate in two decades.
But Australian hotels shouldn’t be relying on international sporting events hitting our shores or fluctuations in our currency to boost accommodation numbers and revenue per room.
“Hotel operators recognise the need for building brand loyalty so that no matter what is happening in Australia, people will always choose to stay at their hotels. ” Ross Beardsell, Senior Vice President - Strategic Advisory, JLL Hotels & Hospitality Group, said.
“Successful brand loyalty programmes combined with innovative marketing of services to individuals and corporate groups can ensure that hotels are always growing an increased share of business.
“Furthermore, by establishing strong brand loyalty relationships with frequent individual travellers, combined with corporates who are looking to stage conferences, events and meetings, hotel operators can gain great reward from the services they offer, and moreover increase owner’s returns.
“Most people are conservative by nature and would prefer to stay somewhere that they know and can trust, so if hotel operators can establish a strong rapport with any frequent individual travellers and corporate groups they should grow their market share accordingly.”
Combined with a falling Australian dollar, TRA forecasts a continued increase in tourism in 2015 and beyond, with Chinese tourists becoming the most lucrative, spending more and staying longer, than any other international tourist.
A lower Australian dollar also encourages locals to travel more domestically.
“There are many positives for the hotel industry in the future,” Mr Beardsell says.
“Every hotel in Australia can market their additional services to increase additional spend from their visitors, whether they be local or international. Hotels can tailor packages to individual and corporate needs that will not only increase brand loyalty but also their occupancy rates.” Mr Beardsell said.
“Now is the time to capitalise on growing visitor numbers.”
“Hotel operators recognise the need for building brand
loyalty so that no matter what is happening in Australia, people
will always choose to stay at their hotels,”
Ross Beardsell, Senior Vice President Strategic Advisory, JLL Hotels & Hospitality Group
The Rise and Rise of BaliBali’s hospitality sector is booming, tourism is rising and Bali’s future success seems assured
07Hotel Destinations Asia Pacific
In many ways, Bali is the holiday destination that has it all. Feted for its immense beauty and deep-rooted Hindu/Animist culture, the little island near the geographical heart of the Indonesian archipelago attracts a steady flowing stream of visitors looking to sample its heady ambrosia.
From thrill-seeking surfers in hunt of the perfect break and nightlife enthusiast enticed by the island’s many beach clubs and bars to more cerebral types in quest of stimulation for the body and mind in bohemian hubs such as Ubud, Indonesia’s premier tourist draw satisfies all sorts.
“There are few destinations that can cater quite so capably for such a wide range of demographics,” agrees Djodi Trisusanto, Chief Representative for Hotel Development in Indonesia for Marriott International. “Those who like nightlife, beaches and shopping can opt for Kuta, Legian and Seminyak. Nusa Dua is better for families due to its host of kid-friendly resorts. Ubud is a cultural destination with some fantastic resorts while the rest of island offers everything from river rafting to hiking. Quite simply, there’s something for everyone.”
There’s certainly no denying the variety of experiences that Bali can offer. Historically much of the development has been focused on South Bali. This part of the island is home to the buzzing beach enclaves of Seminyak, Legian and Kuta as well as quieter, higher-end destinations such as Sanur and Nusa Dua. Further north, the town of Ubud is recognized as the spiritual home of Balinese culture.
Yet, outside these main tourist areas, the island remains largely untouched, with fantastic scenery, excellent beaches and cultural attractions to spare. This extra scope for development means that saturation point outside South Bali remains a long way off.
Given its wide-ranging appeal it is no surprise that the so-called “Island of the Gods” continues to witness extraordinary growth in popularity. In 2014, international visitors arriving via the island’s Ngurah Rai airport rose to 3.73 million, an increase of 15% from the previous year. With Indonesian visitor numbers up 12% to a total of 6.05 million in 2014, it is clear that Bali’s magnetic qualities are as compelling to a domestic audience as they are to those from abroad.
Indonesia’s tourism authorities have ambitious plans to grow the country’s international visitor numbers to 20 million by 2020 from a current figure of approximately 9 million. And experts believe that Bali – the undisputed jewel in the nation’s tourism crown – will be key to realizing these aspirations.
“Although Indonesia can still be considered an emerging economy, many investors now consider Bali hotel real estate to be an established investment,” states Adam Bury, Vice President - Investment Sales Asia at JLL Hotels & Hospitality Group. “An apt comparison would be Phuket in Thailand, which also has a well-established brand, developed infrastructure and an impressive portfolio of properties from ultra-luxurious to more affordable options.”
“Bali is rightly seen as very solid bet,” continues Bury. “Rules for investment are relatively transparent compared to other countries in the region and the Indonesian government is highly supportive of further growth.”
Bali’s infrastructure has improved significantly in recent years with major achievements including the refurbishment of the international airport and the construction of the Bali Mandara toll road, linking Kuta with Nusa
Dua. However, with visitor numbers set to boom, the completion of even further new infrastructure projects is seen as being key to Bali’s continued success.
Construction of a new international airport in the north of the island has been green-lighted by the authorities. Approval has also been granted for the improvement of roads linking South Bali and the capital Denpasar to East, West and North Bali – a move seen as the most essential requirement to harnessing the untapped potential for development in the remoter areas of the island.
“The Indonesian government has a good record for putting its money where its mouth is as far as developing infrastructure in Bali is concerned,” comments Dan Miller, Head of the Bali Office for JLL. “It stepped in to expand the airport and build new roads ahead of the APEC conference in Bali in 2013 and if tourist numbers continue to rise at the current rate, further improvements will have to be made.”
“One of the ways in which we can see Bali evolving is as a base for a multi-destination holiday in this part of Indonesia. Visitors would arrive and depart from Bali as a principal gateway to explore Indonesia, and use it as a jumping off point to neighboring islands such as Java, Lombok, Sumba, Flores, and Raja Ampat. The idea is to market the areas within a 1-2 hour flight time as “Greater Bali”. If that tactic is to be a success, there needs to be significant improvements in the marine tourism and transportation segments, which is also receiving substantial support from the current administration. Accessibility to the myriad of islands and diversity which Indonesia has to offer will be its ultimate driver for success in sustainable tourism growth.”
Yet while infrastructural challenges such as road access and occasional water and electricity shortages remain, Bali’s future success seems assured.
This is also reflected by a host of new air routes linking the island to Mainland China and the Middle East. Meanwhile, as of January 2015, visa-free entry is now granted to nationals from Japan, South Korea, Mainland China and Russia, a sign of the government’s desire to grow new markets beyond Bali’s traditional base of Australian tourists, who constituted 25% of international arrivals in 2014.
“Bali is maturing as a destination and the hotel market is maturing also,” adds Miller. “Previously there was not a whole lot of trading, but now property owners are considering selling at reasonable market values. Ally this with the variety on offer and Bali’s dynamism as a destination and it is clear there is plenty of scope for further growth.”
“There are few destinations that can cater quite so capably
for such a wide range of demographics”
Djodi TrisusantoChief Representative for Hotel Development in Indonesia, Marriott International
Beijing
SeoulTokyo
OsakaShanghai
Taipei
Hong KongMacau
Singapore
KualaLumpur
PhuketHo ChiMinh
ManilaBangkok
YangonHanoiMumbai
Delhi
BaliJakarta
Sri Lanka
Seychelles
Maldives
AucklandMelbourne
Sydney
Asia Pacific’s Key Destinations
Hotel Destinations Asia Pacific08
09Hotel Destinations Asia Pacific
Asia Pacific Top 10 Single Asset Transactions in 2014 2014 Key Metrics
Average price per key:
USD 221,000
Number of keys traded:
34,000
CITY COUNTRY PRICE / KEY (USD)HOTELRANK PRICE (USD)
1 Sheraton on the Park Sydney Australia 398.2 million 714,865
3 Shanghai JC Mandarin Hotel Shanghai China 338.9 million 659,300
6 Sofitel Sydney Wentworth Sydney Australia 190.9 million 437,959
8 Hilton Hua Hin Resort Hua Hin Thailand 98.7 million 331,168
2 Marriott Executive Apartments Tomorrow Square Shanghai China 386.7 million 1,631,742
5 Sofitel Sydney ICC Sydney Australia 318.7 million 536,587
4 Tokyo Bay Maihama Hotel Club Resort Tokyo Japan 343 million 487,909
7 Mercure Tokyo Ginza Tokyo Japan 117.6 million 565,365
10 Sheraton Noosa Resort & Spa
Noosa Heads Australia 90.5 million 514,125
9 Park Hyatt Melbourne Australia 94.1 million 392,229
of all deals were cross border
Cross-borded transactions:
2/3 Source: JLL Note: Only arm’s length transactions considered
Across Asia Pacific in 2014
in hotel transactions
USD 7.5 BILLION
throughout the region146 DEALS
Hotel Destinations Asia Pacific10
HIGHLIGHTS
Hong KongHong 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.
Tourism Demand Supply Outlook
Despite political unrest, total visitor arrivals in 2014 increased 12.0% y-o-y to reach 60.8 million. Mainland China remained the largest source market (78% of total visitor arrivals) growing 16.0% y-o-y. Short haul markets grew
and long haul markets declined, both by marginally below 0.1%.
Hong Kong is an attractive leisure destination due to its numerous
shopping and entertainment options. As a leading financial centre, corporate
travel is another major demand generator for Hong Kong due to the
favourable business environment and close proximity to Mainland China.
Approximately 2,553 rooms are expected to enter the market in 2015. As at the end of 2014, Hong Kong had 230 hotels comprising 71,767 rooms. 1,750 new hotel rooms were opened throughout the year and consisted
of a mix of international and independent operators.
Mainland Chinese demand has diversified, shifting away from midscale
and budget tour groups towards more high-end leisure and corporate
travellers. Performance outlook is expected to remain stable, with
marginal improvements to ADR and occupancy supported by demand from leisure, corporate, and MICE as well as
the return of tour groups.
Hotel sávBest Western HotelEmperor HotelThe Kush HotelHoliday Inn Express Mongkok
UPCOMING HOTELS
NEW HOTELS
iClub Fortress Hill Hotel
iClub Sheung Wan Hotel
Ovolo Hotel Southside
Somerset Victoria Park Hong Kong
Dorsett Tsuen Wan Hotel
QUICK FACTS
rooms338
rooms248
rooms162
rooms92
rooms548
Mercer by Kosmopolito – HKD 545 millionPrintemp Hotel Apartment – HKD 340 million
NOTABLE HOTEL DEALS
Note: Hong Kong Hotels refers to Luxury stock only.Source: STR Global (YTD December 2014), Hong Kong Tourism Board, JLLADR - Average daily rate, RevPAR - Revenue per available room
60.8 millionInternational Visitor
Arrivals 2014
1,750 roomsNumber of New Rooms
2014 Revenue per Available
Room (RevPAR)
HKD
2,896HKD
3,689Average Daily
Rate (ADR)
78.5%Occupancy
11Hotel Destinations Asia Pacific
MacauTake 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.
Tourism Demand Supply Outlook
Total visitor arrivals in 2014 reached a record high of 31.5 million, representing a 7.5% increase y-o-y driven by Macau’s primary source market Mainland China. 54% of total visitor arrivals were same-day. The average length of stay in 2014 remained on par with 2013 at 0.9 day.
Macau’s top three source markets were Mainland China, Hong Kong and Taiwan,
together contributing around 90% of total visitor arrivals. For the year 2014, visitors from Mainland China rose by
14% y-o-y, while those from Hong Kong and Taiwan decreased by 5%.
While there were no hotel openings in 2014, the 200-room Crowne Plaza
Macau opened early this year. In the next three to five years, there are a significant number of hotel rooms
scheduled for completion, with around 12,000 confirmed hotel rooms in
the pipeline.
Macau’s gambling revenue dropped in 2014, the first time in twelve years.
Rather than relying heavily on gambling revenue going forward, the government
will diversify Macau’s economy by developing the city into a major tourist
destination. The focus on tourism along with improved relations with Mainland
China is expected to benefit the hotel market.
There were no hotel transactions in 2014
NOTABLE HOTEL DEALS
JW Marriott MacauSt Regis Macau Cotai CentralHollywood Roosevelt MacauRitz Carlton MacauAscott Macau
UPCOMING HOTELS
NEW HOTELS
QUICK FACTS
HIGHLIGHTS
Note: Macau Hotels refers to Luxury stock only.Source: STR Global (YTD December 2014), Macau Government Tourist Office, JLLADR - Average daily rate, RevPAR - Revenue per available room
31.5 millionInternational Visitor
Arrivals 2014
NoneNumber of New Rooms
2014 Revenue per Available
Room (RevPAR)
MOP
1,559MOP
1,721Average Daily
Rate (ADR)
90.6%Occupancy
Crowne Plaza Macau
rooms200rooms
Hotel Destinations Asia Pacific12
HIGHLIGHTS
SingaporeRanked 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.
Tourism Demand Supply Outlook
International visitor arrivals to Singapore shrunk to 15.1 million in 2014,
a 3.1% decline over 2013 and failing to achieve the forecast of 16.3 to 16.8 million arrivals set by the Singapore Tourism Board (STB). This marks the
first time since 2009 that visitor arrivals to Singapore have fallen.
According to the Singapore Tourism Board (STB), Mainland Chinese visitor
arrivals, the second largest source market for Singapore, faced a 25.4% y-o-y decline as at November 2014. This was primarily due to a spate of negative events in the South East
region, including the disappearance of Malaysia Airlines flight MH370, political
tensions in Thailand and anti-China demonstrations in Vietnam.
The 502-room Hotel Jen Orchardgateway, which opened in September 2014, was the first ever “Jen” branded hotel to debut in the
world. Shangri-La International Hotel Management Ltd also announced the
rebranding of the Traders Hotel on Cuscaden Road to Hotel Jen Singapore.
This brings the total number of Hotel Jen room keys in Singapore to
over 1000.
The STB acknowledges that its 2015 target of 17 million visitors (set in 2004) - will probably not be met this year as the uncertain global economy and currency volatility looks likely to impact tourism. STB will also aim to ramp up marketing efforts in major tourism markets to drive demand, targeting secondary cities in China and Indonesia, and marketing Singapore as a solo destination to
decrease dependency on multi-tour destination travellers.
South Beach Hotel & ClubJurong Lake HotelHotel Grand Chancellor OrchardPark Hotel AlexandraMidlink Hotel
UPCOMING HOTELS
NEW HOTELS
Holiday Inn Express Clarke Quay
Parc Sovereign Hotel Tyrwhitt
One FarrerHotel & Spa
Sofitel So Singapore
Hotel Jen Orchardgateway
QUICK FACTS
rooms442
rooms270
rooms243
rooms134
rooms502
Hotel Grand Chancellor – SGD 248 million
NOTABLE HOTEL DEALS
Note: Singapore Hotels refers to Luxury stock only.Source: STR Global (YTD December 2014), Singapore Tourism Board, JLLADR - Average daily rate, RevPAR - Revenue per available room
15.1 millionInternational Visitor
Arrivals 2014
1,773 roomsNumber of New Rooms
2014 Revenue per Available
Room (RevPAR)
SGD
329SGD
410Average Daily
Rate (ADR)
80.3%Occupancy
13Hotel Destinations Asia Pacific
Kuala LumpurKuala 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.
Tourism Demand Supply Outlook
Kuala Lumpur, the capital city of Malaysia, is predominantly a corporate market with strong weekday business and relatively limited leisure demand, except for weekends. Malaysia has
moved up in the global business rankings from 12th to 6th position,
according to the World Bank’s 2014 Doing Business Report which assesses
the ease of conducting business in the country.
According to Tourism Malaysia, international visitor arrivals reached
25.7 million in 2013, representing growth of 2.7% y-o-y. Despite the negativity surrounding the country’s national
airline carrier and the consequential fall in inbound Chinese travellers,
international visitor arrivals continue to grow. YTD October 2014 was 22.9 million
(up 9.6% y-o-y).
Additions to hotel supply were limited in 2014 with 739 hotel rooms and 160 serviced apartment units opening in
the city. The majority of the new supply is focused in KL Sentral and KLCC (the
Golden Triangle). JLL forecast that around 4,700 hotel rooms and 1,700
serviced residence units are likely to enter the market from 2015 to 2018.
Tourism Malaysia is trying to recover Mainland Chinese arrivals, sourcing marketing partnerships with airlines
and working with outbound operators to arrange for chartered flights. The
intention is to offer more direct flights to Kuala Lumpur and secondary
destinations such as Penang, Langkawi and Kota Kinabalu.
There were no hotel transactions in 2014
NOTABLE HOTEL DEALS
St. RegisD’ Majestic by Swiss GardenRitz Carlton ResidencesFour Seasons PlaceMövenpick Hotel & Convention Centre KLIA
UPCOMING HOTELS
NEW HOTELS
Fraser Residence
QUICK FACTS
rooms445rooms
HIGHLIGHTS
Note: Kuala Lumpur Hotels refers to Luxury & Upscale stock only.Source: STR Global (YTD December 2014), Malaysia Tourism Board, JLLADR- Average daily rate, RevPAR - Revenue per available room
22.9 millionInternational Visitor
Arrivals 2014(YTD October 2014)
739 roomsNumber of New Rooms
2014 Revenue per Available
Room (RevPAR)
MYR
360MYR
492Average Daily
Rate (ADR)
73.3%Occupancy
Hotel Destinations Asia Pacific14
HIGHLIGHTS
SydneySydney 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.
Tourism Demand Supply Outlook
International visitor nights to Sydney reached 22.6 million YTD September 2014, recording a 5.6% improvement
over the same period in 2013. This was in line with international visitors
increasing by 8% over the same period to 1.6 million visitors.
According to Tourism Research Australia (TRA), China was the most
prominent source of visitor night demand (14.2%) despite an 8.6% decline
over YTD September 2014. In terms of overall visitor night demand, China was followed by the United Kingdom (12.7%), Korea (5.8%) and Taiwan (5.2%). Source markets with the strongest growth were
Malaysia (47.1%), Taiwan (46.5%) and Hong Kong (45.9%), whilst significant
decreases were seen from the United States of America (-25.8%) and
Korea (-17.6%)
No new hotels opened in Sydney City throughout 2014, with only an extension
of Swissotel Sydney (ten rooms) and Base Backpackers (three rooms)
completed.
The outlook for Sydney’s accommodation market remains strong
following the recovery which has been evident over the past four years.
Occupancy levels have reverted to a very high level and ADR growth is strengthening in line with the benign
supply outlook and more stable demand environment, with growth across a
variety of segments including corporate, cruise and inbound.
Tankstream Hotel57 HotelOld Clare Hotel
UPCOMING HOTELS
NEW HOTELS
No new hotels opened in Sydney during H2 2014.
QUICK FACTS
Sheraton on the Park, Sydney – AUD 463.0 millionSofitel Sydney ICC Hotel – AUD 341.0 millionSofitel Sydney Wentworth – AUD 201.0 millionHotel 1888 – AUD 32.8 millionBlue Sydney – AUD 32.0 million
NOTABLE HOTEL DEALS
Source: STR Global (YTD December 2014), Tourism Research Australia, JLLADR - Average daily rate, RevPAR - Revenue per available room
22.6 millionInternational Visitor
Arrivals 2014(YTD September 2014)
NoneNumber of New Rooms
2014 Revenue per Available
Room (RevPAR)
AUD
198AUD
228Average Daily
Rate (ADR)
87.1%Occupancy
15Hotel Destinations Asia Pacific
MelbourneMelbourne 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.
Tourism Demand Supply Outlook
International visitor nights to Melbourne City reached 14.8 million in the year to
date September 2014, recording a 4.2% improvement over the same period in
2013. This was in line with international visitors increasing by 11.4% over the same period to one million visitors.
According to Tourism Research Australia (TRA), China was the most prominent source of visitor night demand (22.1%)
with a substantial 23.9% increase in visitor nights over the YTD September 2014. In terms of overall visitor night demand, China was followed by the
United Kingdom (9.2%), Korea (5.6%) and Malaysia (5.6%). In relation to growth,
the source markets that increased most rapidly were Germany (73.3%), Thailand (47.1%) and Canada (39.9%), whilst the most significant decreases were seen
from Japan (-50.3%), Indonesia (-22.6%) and Taiwan (-21.0%).
Four hotels opened in Melbourne City throughout 2014, comprising the
Wyndham on William (200 rooms), Sheraton Melbourne (174 rooms), Oaks Pinnacle (37 rooms) and the
Coppersmith Boutique Hotel (15 rooms).
The medium term outlook for Melbourne’s accommodation market remains positive after trading results show continual RevPAR growth over the twelve months to December 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.
Park Hyatt Melbourne – AUD 100.0 millionOaks on Lonsdale – AUD 65.0 millionIbis Styles Kingsgate – AUD 30.0 millionThe Albany Hotel – AUD 16.4 millionParade Inn Parkville – AUD 10.75 million
NOTABLE HOTEL DEALS
Hotel Sophia (extension)UPCOMING HOTELS
NEW HOTELS
QUICK FACTS
HIGHLIGHTS
Source: STR Global (YTD Dec 2014), Tourism Research Australia, JLLADR - Average daily rate, RevPAR - Revenue per available room
14.8 millionInternational Visitor
Arrivals 2014 (YTD September 2014)
426 roomsNumber of New Rooms
2014 Revenue per Available
Room (RevPAR)
AUD
169AUD
197Average Daily
Rate (ADR)
85.8%Occupancy
Sheraton Melbourne Oaks Pinnacle Coppersmith Boutique Hotel
Wyndham on William
rooms174
rooms37
rooms200rooms rooms
15
Hotel Destinations Asia Pacific16
HIGHLIGHTS
AucklandAuckland 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.
Tourism Demand Supply Outlook
International visitor arrivals to New Zealand reached 2.85 million in 2014, a 5.1% improvement over 2013. Over
the past five years (2009 to 2014), international visitor arrivals to New Zealand have recorded compound average growth of 3.1% per annum.
Over the past five years, Auckland’s accommodation market has recorded
strong RevPAR growth, increasing on average by 5.3% per annum, with modest gains in ADR averaging 1.5%
per annum and occupancy rising from circa 70% in 2009 to over 80% in 2014. Auckland reported occupancy levels of 82.2% in 2014, the highest level on record in over 15 years. In 2014, ADR
improved by 5.1% to NZD 147 resulting in revenue per available room (RevPAR)
growth of 9.7% to NZD 121.
A 73 room extension to the existing 125-room Ibis Budget Auckland Airport
Hotel completed during Q4 2014 and an 80-room VR Queen Street Hotel
opened in May 2014. Two hotels are currently under construction, namely the conversion of the Reserve Bank
office building into a 130-room, five-star Sofitel, which is scheduled to open in Q1 2016 and in Manukau (South Auckland), construction is well advanced for a 152-room hotel which will be independently
operated and form part of the wider South Auckland/ Auckland International
Airport competitive set.
We expect the continuation of the balanced demand/ supply fundamentals.
The sound domestic economy and Auckland’s ongoing ability to capture its fair share of the forecast growth
in international visitors is expected to continue into the foreseeable future. These are seen as the main factors
which will continue to drive Auckland’s hotel accommodation market.
Lakewood Court Sofitel So
UPCOMING HOTELS
NEW HOTELS
QUICK FACTS
Hotel Grand Chancellor Auckland Airport – NZD 23.3 million
NOTABLE HOTEL DEALS
Source: NZHC (YTD December 2014), Statistics New Zealand, JLLADR - Average daily rate, RevPAR - Revenue per available room
2.8 millionInternational Visitor
Arrivals 2014
153 roomsNumber of New Rooms
2014 Revenue per Available
Room (RevPAR)
NZD
121NZD
147Average Daily
Rate (ADR)
82.2%Occupancy
Ibis Budget Auckland Airport addition
VR Queen Street Hotel
rooms80
rooms73
17Hotel Destinations Asia Pacific
ManilaIn 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.
Tourism Demand Supply Outlook
According to the Department of Tourism Philippines, international visitor arrivals to the Philippines were recorded at 2.7
million at YTD July 2014, achieving a 2.4% growth over YTD July 2013.
South Korea remained the top source market to the Philippines during YTD
July 2014, with a 24.2% share of visitors. However, this represented a 6.3%
decrease over the same period last year. The majority of the top ten source
markets to the Philippines registered improvements, in particular Mainland
China showed a significant 8.5% improvement during YTD July 2014 with the launch of more direct and chartered
flights as well as growing 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.
The Department of Tourism Philippines is aiming for ten million international
visitors by 2016. The upcoming pipeline of international branded hotels in the
next few years is also expected to boost tourism demand for Manila and
the Philippines. Along with this, the Department of Tourism is launching its “Visit the Philippines Year 2015”
campaign which should draw more visitors.
There were no hotel transactions in 2014
NOTABLE HOTEL DEALS
Mercure Manila OrtigasNovotel Manila AranetaRadisson Hotel Manila BayJin Jiang Inn OrtigasJin Jiang Inn Greenbelt
UPCOMING HOTELS
NEW HOTELS
City of Dreams Hyatt
QUICK FACTS
rooms365rooms
HIGHLIGHTS
Note: Manila Hotels refers to Marketwide hotels.Source: STR Global (YTD December 2014), Department of Tourism Philippines, JLL.ADR – Average daily rate, RevPAR – Revenue per available room.
2.7 millionInternational Visitor
Arrivals 2014 (YTD July 2014)
2,658 roomsNumber of New Rooms
2014 Revenue per Available
Room (RevPAR)
PHP
3,767PHP
5,592Average Daily
Rate (ADR)
67.4%Occupancy
Hotel Destinations Asia Pacific18
HIGHLIGHTS
SeoulAs 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. There has been a significant increase in hotel development against a backdrop of demand growth and limited room supply in recent years.
Tourism Demand Supply Outlook
International visitor arrivals to South Korea recorded a 16.6% growth to 14.2
million in 2014. All major source markets registered improvements in visitation apart from Japan which reflected a
17.0% y-o-y decline in 2014, primarily due to the depreciation of the Japanese
Yen and territorial issues between Japan and South Korea which affected
outbound travel from Japan.
Visitation from the Mainland Chinese market remains robust, showing a y-o-y growth of 41.6% in 2014 and accounting for 43.1% of all arrivals to South Korea. Regional source markets also recorded
strong growth including Hong Kong (+39.4% y-o-y), Thailand (+25.2% y-o-y),
Taiwan (+18.2% y-o-y) and Malaysia (+17.7%).
In 2014, 1,665 new hotel rooms entered the Seoul market. New
supply comprised both domestic and international brands. Lotte and Shilla continue to expand their presence in Seoul with the addition of the Lotte
Hotel City Guro and Shilla Stay Yeoksam. The majority of the new hotel supply
features economy and midscale brands such as Ibis, Aloft and Ramada Encore.
Moving forward, visitor arrivals are expected to continue on the upward
trajectory, particularly regional visitors and Mainland Chinese. South Korea’s
diverse tourism offerings including historical sights, medical tourism, MICE
and corporate travel remain the key demand drivers. The influence from
the ‘Korean Wave’ and easing of visa regulations for major source markets
will also encourage visitation.
Ibis Styles Ambassador Seoul MyeongdongFour Seasons Seoul
UPCOMING HOTELS
NEW HOTELS
QUICK FACTS
Seoul Stars Hotel – KRW 42.9 billion
NOTABLE HOTEL DEALS
Note: Seoul Hotels refers to Marketwide Hotels.Source: STR Global (YTD December 2014), Korean Ministry of Culture, Sports and Tourism, JLLADR - Average daily rate, RevPAR - Revenue per available room
14.2 millionInternational Visitor
Arrivals 2014
1,665 roomsNumber of New Rooms
2014Revenue per Available
Room (RevPAR)
KRW
157,756KRW
202,054Average Daily
Rate (ADR)
78.1%Occupancy
rooms306
Lotte Hotel City Guro Dormy Inn Premium Seoul Garosugil
Ramada Encore Seoul Dongdaemun
Ibis budget Ambassador Seoul Dongdaemun
Shilla Stay Yeoksam
rooms283
rooms212
rooms195
rooms306rooms rooms
204
19Hotel Destinations Asia Pacific
TaipeiTaipei 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 tree-lined 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.
Tourism Demand Supply Outlook
Mainland China continued to be the main contributor to growth in visitor arrivals by overall share (up 38.2%
from last year), however South Korea outpaced Mainland Chinese growth at 56.2%. Taipei also acts as a gateway to Taichung and Kaohsiung, providing an
impetus for upscale hotel developers to build in anticipation for the increase in
room demand over the long term.
As at YTD December 2014, visitors to Taipei (measured by arrivals to Taoyuan
and Songshan International Airports) increased by 24.2% to nine million
visitor arrivals over the same period last year. This indicates arrivals to Taipei are mirroring the rest of the country’s rapid
growth in arrivals, particularly from Mainland China.
In the near future, large supply growth is imminent as tourist arrivals increase
at the fast pace realised. Since the recent opening of the W Hotel Taipei
and Le Méridien in 2012 and the impressive Mandarin Oriental last year, Taipei is becoming a mecca for upscale and luxury branded hotel development with a pipeline of 2,000 rooms over the
next three years.
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. However, in November 2014 Taiwan achieved its target of nine million visitor arrivals. Importantly, the overdue Taoyuan International Airport MRT is expected to commence service
by the end of the year.
There were no hotel transactions in 2014
NOTABLE HOTEL DEALS
Farglory Taipei Dome ComplexTaipei MarriottCourtyard by MarriottCitizenM Taipei
UPCOMING HOTELS
NEW HOTELS
Amba Taipei Zhongshan
QUICK FACTS
rooms90
rooms
HIGHLIGHTS
Note: Taipei Hotels refers to Luxury & Upper Upscale stock only.Source: STR Global (YTD December 2014), Dept. of Information and Tourism, JLLADR - Average daily rate, RevPAR - Revenue per available room
9.0 millionInternational Visitor
Arrivals 2014(YTD November 2014)
803 roomsNumber of New Rooms
2014 Revenue per Available
Room (RevPAR)
TWD
5,108TWD
7,585Average Daily
Rate (ADR)
67.3%Occupancy
Hotel Destinations Asia Pacific20
HIGHLIGHTS
TokyoThe 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.
Tourism Demand Supply Outlook
According to the Japan National Tourism Organization (JNTO), visitor
arrivals to Japan reached approximately 13.4 million in 2014. The number of inbound tourists in 2014 surpassed
the yearly total history record of 10.4 million achieved in 2013. The high
number of inbound tourists, as well as the increasing number of domestic
accommodation guests due to the Japanese economic recovery had a
positive impact on the Tokyo hotel market.
International accommodation guests, who account for approximately 25% of total accommodation demand in
Tokyo, reached an estimated 8.7 million as at YTD September 2014, registering
year-on-year growth of 25%. On the other hand, the number of domestic accommodation guests declined by
4.1% from the previous year to 26.6 million.
According to Japan Ministry of Health, Labour and Welfare, hotel supply in Tokyo comprised 680 hotels (97,879
rooms) as at March 2014, representing an increase of 2.1% in room supply from 2013. Over the second half of 2014, the 84-room Aman Tokyo opened its doors.
In order to achieve its goal of 20 million international visitors to Japan by
2020, the government has announced several initiatives and strategies
such as improved accessibility for foreign visitors. The above mentioned
strategies and the weakened Japanese Yen will continue to further support the increasing inbound demand and hotel trading performances are expected to improve. RevPAR growth in the short
term is likely to be driven by a rising ADR.
There are no known hotels forTokyo in 2015.
UPCOMING HOTELS
NEW HOTELS
AMAN TokyoANDAZ Tokyo
QUICK FACTS
rooms84
rooms164
Mercure Tokyo Ginza – UndisclosedTokyo Bay Maihama Hotel Club Resort – UndisclosedHotel Unizo Ginza Itchome – JPY 9.5 billionBest Western Shinjuku Astina Hotel Tokyo – JPY 8 billion
NOTABLE HOTEL DEALS
Note: Tokyo Hotels refers to Luxury stock only, unless otherwise stated.Source: STR Global (YTD September 2014), Japan Tourism Agency, JLLADR - Average daily rate, RevPAR - Revenue per available room
8.7millionInternational Visitor
Arrivals 2014 (YTD Septembe 2014)
248 roomsNumber of New Rooms
2014 Revenue per Available
Room (RevPAR)
JPY
38,070JPY
46,005Average Daily
Rate (ADR)
82.8%Occupancy
21Hotel Destinations Asia Pacific
OsakaOsaka 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’.
Tourism Demand Supply Outlook
Osaka is positioned as one of the top destinations in Japan both domestically
and internationally, recording strong growth in demand due to stable economic fundamentals and its
promotion of art and culture. Its close proximity to other destinations such as Kyoto, Nara and Kobe has also boosted
tourism as Osaka is normally included as part of the popular ‘Golden Route’.
The accommodation demand from international tourists remains strong in
the Osaka market. As at YTD September 2014, international accommodation
guests in Osaka Prefecture recorded a y-o-y increase of 32% to 4.2 million. The
number of domestic accommodation guests in Osaka prefecture reached
15.4 million as at YTD September 2014, an 8.2% increase from the same period
of the previous year. A new area in Universal Studio Japan (USJ), featuring Harry Potter, had a positive influence on
tourism demand in Osaka in 2014.
According to Japan Ministry of Health, Labour and Welfare, hotel supply
in Osaka prefecture comprised 374 hotels (56,992 rooms) as at March 2014, representing an increase of
2.9% in room supply from 2013. As for the pipeline, “The Park Front Hotel at Universal Studio Japan,” a 598-room
full-service hotel, is scheduled to open as one of USJ’s official hotels, in the
summer of 2015.
International visitor arrivals are anticipated to increase within the next few years. Kansai International Airport announced a plan to construct a third
terminal in 2015 for the exclusive use of international LCCs. Kansai International Airport aims to double the annual airport
capacity to eight million people upon the completion of Terminal 3, which will be able to accommodate more demand
from international travellers.
Hyatt Regency Osaka – UndisclosedOsaka Namba Washington Hotel Plaza – JPY 8.9 billionR&B Hotel Umeda-Higashi – JPY 1.5 billionDormy Inn Namba – JPY 700 million
NOTABLE HOTEL DEALS
The Park Front Hotel at Universal Studio Japan
UPCOMING HOTELS
NEW HOTELS
Osaka Marriott Miyako Hotel
QUICK FACTS
rooms360rooms
HIGHLIGHTS
Note: Osaka Hotels refers to Luxury and Up-scale stock, unless otherwise stated.Source: STR Global (YTD December 2014), Japan Tourism Agency, JLLADR - Average daily rate, RevPAR - Revenue per available room
4.2 millionInternational
Accommodation Guests (YTD Septembe 2014)
360 roomsNumber of New Rooms
2014 Revenue per Available
Room (RevPAR)
JPY
14,506JPY
17,960Average Daily
Rate (ADR)
80.8%Occupancy
Hotel Destinations Asia Pacific22
HIGHLIGHTS
ShanghaiAs 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.
Tourism Demand Supply Outlook
International visitor arrivals to Shanghai increased by 4.5% to 7.9 million in
2014, almost double Beijing’s arrivals. Shanghai received more than 8.8 million tourists during the week long National
Day holidays, an increase of 15.8% from 2013, mainly due to effective promotion
of domestic tourism.
The development of Hongqiao Central Business District, Shanghai Pilot Free
Trade Zone and Shanghai Disney Resort (although we note the opening date has now been delayed until early 2016) has stimulated demand from both corporate and leisure visitors. The opening of the
National Exhibition and Convention Center will further stimulate growth of
MICE demand.
The pace of new hotel rooms entering the market slowed in 2014 compared to previous years. There were four hotels with 1,662 rooms opened, mainly in the first half of 2014. Over 5,000 rooms are expected to enter the market this year
but it should be noted that opening dates are often delayed in Shanghai and
several projects may well extend into the 2016 pipeline.
Hotel demand is expected to increase in 2015, as the global economy recovers
and Shanghai Pilot Free Trade Zone, Hongqiao Central Business District and Shanghai Disneyland increase visitors
arrivals. The improvement of MICE facilities will also attract more MICE
demand to Shanghai.
Shanghai Disney Resort HUALUXE Shanghai Pudong Kangqiao InterContinental Shanghai WonderlandW Shanghai – PudongSheraton Shanghai Jiading Hotel
UPCOMING HOTELS
NEW HOTELS
Shanghai Marriott Hotel Parkview
Crowne Plaza Shanghai Noah Square
Hyatt Regency Shanghai Chongming
Pullman Shanghai South
QUICK FACTS
rooms317
rooms313
rooms235
rooms333
Yueda Nanjiao Huadu – RMB 75 million18 Hebao Rd – RMB 60 million
NOTABLE HOTEL DEALS
Note: Beijing Hotels refers to upscale stock only.Source: STR Global (YTD December 2014), Shanghai Tourism Bureau, JLLADR - Average daily rate, RevPAR - Revenue per available room
7.9 millionInternational Visitor
Arrivals 2014
1,662 roomsNumber of New Rooms
2014Revenue per Available
Room (RevPAR)
RMB
697RMB
1,051Average Daily
Rate (ADR)
66.3%Occupancy
23Hotel Destinations Asia Pacific
BeijingIn 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 the end of 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.
Tourism Demand Supply Outlook
International visitor arrivals to Beijing declined by 5.0% over 2013, recording 4.3 million arrivals in 2014. However,
domestic tourism has shown dynamic performance throughout 2014, reaching 257.2 million visitor arrivals to Beijing, which is a 4.0% increase compared
to 2013.
Although there was some recovery in 2014, driven by new opportunities from domestic tourism and economy
transformation, hotels still experienced difficulties due to restrictions on
government consumption and slowing economic growth. MICE demand has remained strong through the ongoing
APEC meetings during 2014.
The main supply in 2014 was through international brands in the high-end category, with 1,860 rooms entering
the market. With several projects postponed from 2014, there are
estimated to be more than 2,000 rooms in the pipeline for 2015. New brands
including Hotel Nuo and the Mandarin Oriental will be making an entrance into
the Beijing market.
The integration of Beijing, Tianjin, and development of the capital economic
circle will continue to attract MICE demand in the future. As well as this, the construction of Tongzhou District
Universal Studios and a second airport will help facilitate international arrivals.
There were no hotel transactions in 2014
NOTABLE HOTEL DEALS
NEW HOTELS
Beijing Wangfujing Renaissance hotel
Rosewood Beijing Grand Mecure DongCheng
Yanqi Lake hotel by Kempinski Beijing
Sunrise
W Beijing
QUICK FACTS
rooms329
rooms283
rooms111
rooms349rooms rooms
200
HIGHLIGHTS
Note: Beijing Hotels refers to upscale stock only.Source: STR Global (YTD December 2014), Beijing Tourism Bureau, JLLADR - Average daily rate, RevPAR - Revenue per available room
4.3 millionInternational Visitor
Arrivals 2014
1,860 roomsNumber of New Rooms
2014Revenue per Available
Room (RevPAR)
RMB
672RMB
967Average Daily
Rate (ADR)
69.4%Occupancy
Kempinski Beijing SunriseCTS tower MetroparkInterContinental Beijing City CenterTangram HotelMandarin Oriental Beijing
UPCOMING HOTELS
Hotel Destinations Asia Pacific24
HIGHLIGHTS
BangkokBangkok 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.
Tourism Demand Supply Outlook
International tourist arrivals to Bangkok numbered 15.5 million in 2014, recording
an 11.3% decline over 2013. This represented the first decline since 2009,
due to the political demonstrations during the first quarter across the
capital city followed by a military coup.
China remains the biggest source market to Bangkok, followed by Japan, India and Russia. It must be noted that
each of the top ten feeder markets witnessed a decline in the number of
visitor arrivals during 2014. The primary purpose of visit for the majority of
tourists to Bangkok is leisure, followed by business and MICE.
New room supply declined in 2014 compared to the past few years.
Nevertheless, hotel room supply is expected to grow in the near future
with more than 3,000 rooms expected to enter the market during 2015. Notable
hotel openings in 2014 included the Radisson Blu Plaza Hotel (four-star) and
Holiday Inn Express Sukhumvit Soi 11 (three-star).
Bangkok saw some respite in international visitor numbers towards
the end of 2014 as the political situation stabilised. In the medium term, we
expect market performance to rebound as political tensions ease and Bangkok
tourism shows its resilience once again. Demand is forecast to continue to
recover strongly in 2015.
Ibis IMPACTCrowne Plaza SukhumvitAmara BangkokPremier Inn Soi 11Park Hyatt Central Embassy
UPCOMING HOTELS
NEW HOTELS
QUICK FACTS
Four Points By Sheraton, Sukhumvit 15– UndisclosedOakwood Apartments Trilliant Sukhumvit 18– UndisclosedCitrus Sukhumvit 22– Undisclosed
NOTABLE HOTEL DEALS
Note: Bangkok Hotels refers to Luxury stock only.Source: STR Global (YTD December 2014), Tourism Authority of Thailand, JLLADR - Average daily rate, RevPAR - Revenue per available room
15.5 millionInternational Visitor
Arrivals 2014
1,264 roomsNumber of New Rooms
2014Revenue per Available
Room (RevPAR)
THB
3,181THB
5,820Average Daily
Rate (ADR)
54.7%Occupancy
rooms306
Le Méridien Suvarnabhumi Golf
Resort and Spa
Holiday Inn Express Sathorn
Holiday Inn Express Sukhumvit Soi 11
U Sathorn BangkokRadisson Blu Plaza Hotel
rooms214
rooms184
rooms86
rooms290rooms rooms
161
25Hotel Destinations Asia Pacific
PhuketPhuket 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.
Tourism Demand Supply Outlook
International visitor arrivals to Phuket reached 3.2 million in 2014, recording a marginal improvement of 0.3% over
2013. Phuket may have benefited from tourists looking for alternatives to Bangkok as they tried to avoid the
political demonstrations.
During 2013 (latest available), China, Russia and Australia were Phuket’s
top three source markets, according to the Department of Tourism. Among
Phuket’s top ten source markets in 2013, Russia, Japan and China were the
fastest growing markets registering a y-o-y growth of 68.7%, 21.4% and 19.5%
respectively.
During 2014, Phuket witnessed an addition of 1,421 new rooms, the
majority of which were categorised in the upscale segment. The total
number of rooms in Phuket stood at 57,358 at year-end 2014. The west coast (including Patong, Layan and Kamala) remains the most popular location for
new hotel developments capturing 53.3% of total future supply between
2015 and 2018.
International tourist arrivals should continue to grow driven by Chinese tourists and facilitated by the future completion of the expansion of the Phuket International Airport. In the medium to longer term, we expect
occupancy levels to bounce back in light of growing demand and limited
future room supply.
Burasari Patong Phuket– THB 1.3 billion
NOTABLE HOTEL DEALS
Centara Grand Moringa Resort & SpaRamada Phuket DeevanaNovotel Phuket TownNikki Beach Hotel & SpaIbis Styles Phuket Town
UPCOMING HOTELS
NEW HOTELS
QUICK FACTS
HIGHLIGHTS
Note: Phuket Hotels refers to Marketwide Hotels.Source: STR Global (YTD December 2014), Tourism Authority of Thailand, JLLADR - Average daily rate, RevPAR - Revenue per available room
3.2 millionInternational Visitor
Arrivals 2014
1,421 roomsNumber of New Rooms
2014 Revenue per Available
Room (RevPAR)
THB
2,881THB
4,178Average Daily
Rate (ADR)
69.0%Occupancy
Novotel Phuket Karon Resort & Spa
Best Western Patong Beach Hotel
Tune Hotel Eastin Yama Hotel Phuket
Grand Mercure Phuket Patong
rooms224
rooms224
rooms105
rooms314rooms rooms
144
Hotel Destinations Asia Pacific26
HIGHLIGHTS
MumbaiHome 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.
Tourism Demand Supply Outlook
During 2014, both domestic as well as international passenger traffic to Mumbai airport grew to an all-time high of 23.9 million and 11.1 million respectively. For foreign tourists,
Mumbai also serves as an entry point into India for connectivity to other
destinations within the country. Hotels located 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 contributes close to 75% of the city’s overall lodging
demand. MICE demand is typically generated from a number of large
conventions organised in Mumbai and is expected to grow further with the
development of proposed facilities like the Dhirubhai Ambani International Convention and Exhibition Centre
(DAICEC) in BKC by 2017.
Mumbai has seen very limited new hotel openings in the branded segment over
the past few years. However, future supply includes 25 hotels comprising of
6,633 rooms currently under different stages of development and planning.
While the 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.
JW Marriott Sahar Airport RoadTaj Airport Hotel, Terminal 1C
UPCOMING HOTELS
NEW HOTELS
Majestic Court Sarovar Portico Navi Mumbai
The Palladium Hotel
QUICK FACTS
rooms58
rooms390
There were no hotel transactions in 2014
NOTABLE HOTEL DEALS
Note: Mumbai performance pertains to Luxury stock only.Source: STR Global (YTD December 2014), Airports Authority of India, JLLADR - Average daily rate, RevPAR - Revenue per available room
11.1 millionInternational Visitor
Arrivals 2014
NoneNumber of New Rooms
2014Revenue per Available
Room (RevPAR)
INR
5,859INR
8,769Average Daily
Rate (ADR)
66.8%Occupancy
27Hotel Destinations Asia Pacific
DelhiDelhi 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.
Tourism Demand Supply Outlook
International passenger traffic reached an all-time high during 2014 at 13.4
million, a growth of 4.7% y-on-y. With the launch of an e-visa facility for
visitors from 43 countries in November 2014, international arrivals are expected
to grow further in the near term.
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 driven by growing foreign investment into
the country.
The 316-room Ibis Delhi Airport opened in August, making it the first property operated by Accor in Delhi. There will
be two additional hotels from the same operator – Novotel and Pullman New
Delhi Aerocity – which are expected to be operational in 2015.
Demand levels have shown an upward trend during 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 the tourism industry.
Novotel New Delhi Aerocity Pride Hotel Aerocity Pullman New Delhi Aerocity Vivanta by Taj Dwarka Dusit D2 Aerocity
UPCOMING HOTELS
NEW HOTELS
Lemon Tree Premier, Delhi Airport
Holiday Inn New Delhi International Airport
Red Fox Hotel, Delhi Airport
Park Inn by Radisson IP Extension
Ibis Delhi Airport
QUICK FACTS
rooms280
rooms265
rooms76
rooms316rooms rooms
207
HIGHLIGHTS
Note: Delhi performance pertains to Luxury stock only.Source: STR Global (YTD December 2014), Airports Authority of India, JLLADR - Average daily rate, RevPAR - Revenue per available room
13.4 millionInternational Visitor
Arrivals 2014
1,144 roomsNumber of New Rooms
2014 Revenue per Available
Room (RevPAR)
INR
6,328INR
9,372Average Daily
Rate (ADR)
67.5%Occupancy
There were no hotel transactions in 2014
NOTABLE HOTEL DEALS
Hotel Destinations Asia Pacific28
HIGHLIGHTS
Ho Chi Minh CityAs 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.
Tourism Demand Supply Outlook
International arrivals registered a y-o-y growth of 7.1% in 2014 to reach 4.4
million. 2014 was the third consecutive year of positive international arrival
growth with a CAGR of 12.4% between 2011 and 2014.
Top source markets to Ho Chi Minh City include China, South Korea,
Japan and USA. The Vietnam National Administration of Tourism targets
4.7 million foreign arrivals to the city in 2015.
During 2014, the Starcity Airport Hotel with 300 rooms was the only addition in supply in Ho Chi Minh City. Hotel supply
is expected to grow further with the addition of 1,577 rooms during 2015.
The tourism department plans to improve the quality of tourism products and services in hotels and river tourism,
as they try to sustain the growth in tourism. The department aims to
improve human resources and promote the city overseas.
Le Méridien SaigonIbis Grand Palace
UPCOMING HOTELS
NEW HOTELS
Starcity Airport Hotel
QUICK FACTS
rooms126 rooms
68rooms300
Mövenpick Hotel Saigon– USD 30.4 million
NOTABLE HOTEL DEALS
Note: Ho Chi Minh City Hotels refers to Marketwide Hotels.Source: STR Global (YTD December 2014), Vietnam National Administration of Tourism (VNAT), JLLADR – Average daily rate, RevPAR – Revenue per available room.
4.4 millionInternational Visitor
Arrivals 2014
651 roomsNumber of New Rooms
2014 Revenue per Available
Room (RevPAR)
USD
77USD
116Average Daily
Rate (ADR)
66.4%Occupancy
29Hotel Destinations Asia Pacific
HanoiHanoi, 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, lemon-hued 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.
Tourism Demand Supply Outlook
During 2014, international arrivals to Hanoi increased by 16.3% from 2013 to reach an all-time high of three million. Visitor arrivals to Hanoi have shown
sustained growth for five consecutive years.
Top source markets to Hanoi include China, South Korea, Japan and USA.
The growing number of domestic flights from Hanoi is benefiting the overall tourism industry as visitors
are encouraged to travel to multiple destinations throughout Vietnam.
During 2014, 1,021 new rooms entered the market, with the most notable
openings being the Lotte Centre and JW Marriott. 2015 is expected to witness
an additional supply of 359 rooms in the branded segment.
Hanoi is continuing to work on its tourism development plan through to
2020, including the development of the Ba Vi-Suoi Hai zone into a national
tourist zone. Moreover, the government continues to promote MICE tours by
organising various international sports, cultural and political events
and festivals.
There were no hotel transactions in 2014
NOTABLE HOTEL DEALS
The InterContinental HanoiUPCOMING HOTELS
NEW HOTELS
JW Marriott
QUICK FACTS
rooms445rooms
HIGHLIGHTS
Note: Hanoi Hotels refers to Marketwide Hotels.Source: STR Global (YTD December 2014), Vietnam National Administration of Tourism (VNAT), JLL.ADR - Average daily rate, RevPAR - Revenue per available room
3.0 millionInternational Visitor
Arrivals 2014
748 roomsNumber of New Rooms
2014Revenue per Available
Room (RevPAR)
USD
74USD
109Average Daily
Rate (ADR)
68.0%Occupancy
Lotte Centre
rooms318
Hotel Destinations Asia Pacific30
HIGHLIGHTS
BaliKnown 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.
Tourism Demand Supply Outlook
In 2014, international visitor arrivals to Bali registered a 15.1% increase over
the previous year to 3.7 million visitors, recording a new peak for Bali. The anti-
Chinese riots in Vietnam, the MH370 flight incident and the military coup in Thailand resulted in a diversion of
visitors from those countries directly to Bali and contributed to the growth
in visitation.
Major source markets to Bali showed remarkable growth in 2014 including
Mainland China (+51.2% y-o-y), Singapore (+28.6% y-o-y) and Australia
(+19.1% y-o-y). Improvements in infrastructure including the expansion
of Ngurah Rai International Airport in June 2014 and an increase in flight connectivity from the major source
markets have encouraged visitation to the resort destination.
Hotel supply in the pipeline will be mainly located in the Seminyak, Pecatu, Kuta and Nusa Dua areas. If all projects
materialise, JLL expect an addition of 12,831 rooms between 2015 and 2018,
representing an increase of 40.6% from 2014 to 2018.
The increase in airlift as well as a visa-free initiative for several major
source markets from 2015 is expected to draw more visitors to the resort island.
However, in light of the significant increase in hotel supply over the next few years, this will put some pressure
on the hotel market and also on existing hotels to upgrade their properties.
Eaton Luxe Nirwana BaliCentara Crystal on the Bay Nusa DuaHilton Garden Inn Bali Ngurah Rai AirportHotel Indigo Seminyak
UPCOMING HOTELSQUICK FACTS
There were no hotel transactions in 2014
NOTABLE HOTEL DEALS
Note: Bali Hotels refers to Luxury stock only.Source: STR Global (YTD December 2014), Statistics Indonesia, JLLADR - Average daily rate, RevPAR - Revenue per available room.
3.7 millionInternational Visitor
Arrivals 2014
3,838 roomsNumber of New Rooms
2014Revenue per Available
Room (RevPAR)
USD
319USD
452Average Daily
Rate (ADR)
70.5%Occupancy
The Ritz-Carlton Bali Ramada Encore Bali Seminyak
Double-Six Seminyak Golden Tulip Essential Denpasar
Mercure Bali Legian
rooms313
rooms280
rooms94
rooms321rooms rooms
146
NEW HOTELS
31Hotel Destinations Asia Pacific
JakartaPrimarily a city of government, business, industry and trade, Jakarta is also the main gateway to Indonesia’s many tourism destinations. In 2014 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.
Tourism Demand Supply Outlook
In 2014, international visitor arrivals to Jakarta were recorded at 2.3 million, a marginal 0.3% increase from 2013.
Growth in international visitor arrivals slowed from 9.1% in 2013, possibly due to the presidential elections which took
place during H1 2014.
International visitors to Jakarta are mainly derived from corporate and meetings, incentives, conventions
and exhibitions (MICE) demand. The increase in flight connectivity between Jakarta and major gateway cities, and infrastructure improvements in the city, will continue to encourage visitation to
the capital city.
We estimate that 2,454 rooms opened in Jakarta in 2014, most of which are
in the economy and midscale sectors. Hotel openings comprised domestic brands such as Swiss-Belinn as well
as international brands including Holiday Inn Express, Ibis, Mercure,
Best Western and Doubletree by Hilton. There were no upscale or luxury hotel
openings in 2014.
Jakarta and Indonesia as a whole experienced a volatile early 2014 with
the depreciation of the Indonesia Rupiah and the presidential elections. However, with the elections over and the economic situation stabilising, a
cautious optimism has returned to the country with investors relooking at one of Southeast Asia’s largest economies.
The upcoming pipeline of luxury and upscale hotel developments will also
strengthen Jakarta’s standing as a key gateway city in Indonesia.
There were no hotel transactions in 2014
NOTABLE HOTEL DEALS
Fairmont JakartaRaffles JakartaThe Westin JakartaInterContinental Pondok Indah JakartaSheraton Jakarta Gandaria City Hotel
UPCOMING HOTELS
NEW HOTELS
QUICK FACTS
HIGHLIGHTS
Note: Jakarta Hotels refers to Upscale stock only.Source: STR Global (YTD December 2014), Statistics Indonesia, JLLADR - Average daily rate, RevPAR - Revenue per available room
2.2 millionInternational Visitor
Arrivals 2014
2,454 roomsNumber of New Rooms
2014Revenue per Available
Room (RevPAR)
USD
115USD
181Average Daily
Rate (ADR)
63.7%Occupancy
Ibis Styles Jakarta Airport
Mercure Jakarta Sabang
Swiss-Belinn Kemayoran
Swiss-Belinn Airport
Holiday Inn Express Jakarta Pluit Citigate
rooms251
rooms166
rooms145
rooms297rooms rooms
156
Hotel Destinations Asia Pacific32
HIGHLIGHTS
YangonWhile no longer the nation’s capital, Yangon remains the largest and most commercially important city in Myanmar and is a melting pot of different cultures and communities. Serving as the country’s main entrance and seaport, it is the country’s centre of business. The magnificent Shwedagon Pagoda dominates the city skyline, while at street level Yangon is a paradise for hunting out a variety of exotic arts and crafts. It still maintains its colonial charm with wide tree lined avenues, tranquil lakes, and gracious turn of the century architecture. Since the 2010 elections, Yangon’s fortunes have skyrocketed along with its land prices, as both local and foreign investors scrambled to gain a foothold.
Tourism Demand Supply Outlook
Foreign visitor arrivals to Yangon have grown rapidly after cyclone Nargis in 2008, achieving a CAGR of 31.5% over the seven year period, albeit starting
from a very low base. Arrivals grew by 18.9% to 972,597 during 2014 compared
to the previous year.
Thailand and Mainland China have been the top source markets to Myanmar over the past few years given their close proximity and long-standing
economic cooperation. During 2014, Thailand was the top source market to Myanmar, followed by Mainland China
and Japan.
The majority of lodging supply in Yangon can be characterised as unbranded,
while supply considered to be of international standard remains fairly
limited. However, there are more than 5,000 rooms (mostly branded) slated to
enter the market over the next three to five years. Once operational, total
supply of international standard rooms will more than double in Yangon.
Tourist arrivals to Yangon are expected to continue growing aided by the
expansion of the existing airport and construction of a new Hanthawaddy
International Airport by 2018. In terms of supply, while the majority of future supply is categorised as luxury and
upscale, we see a strong opportunity for branded midscale hotels since the
segment remains largely untapped.
Novotel Hotel MaxHilton YangonRose Garden Hotel (Phase-2)
UPCOMING HOTELS
NEW HOTELS
Rose Garden Hotel (Phase-1)
Shangri-La Residences (Phase-2)
Sule Shangri-La Expansion
(formerly Traders Hotel)
QUICK FACTS
rooms123
rooms120
rooms214
There were no hotel transactions in 2014
NOTABLE HOTEL DEALS
Note: Yangon hotels refer to Luxury and upscale hotels only.Source: Ministry of Hotels & Tourism, JLLADR - Average daily rate, RevPAR - Revenue per available room, CAGR – Compound Annual Growth Rate
972,597International Visitor
Arrivals 2014
457 roomsNumber of New Rooms
2014Revenue per Available
Room (RevPAR)
USD
121USD
169Average Daily
Rate (ADR)
71.9%Occupancy
33Hotel Destinations Asia Pacific
SeychellesThe 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.
Tourism Demand Supply Outlook
In 2014, international visitor arrivals to Seychelles increased to 232,667, largely driven by European countries. However,
the growth rate has slowed to 1.0% in 2014 compared to 10.7% in 2013.
Germany, France and Italy remain the dominant source markets with a
contribution of 15.4%, 13.9% and 8.5%, respectively. However, visitor arrivals
from France and Italy declined by 9.4% and 8.7% y-o-y during 2014. Chinese
visitors offset this decline with a y-o-y growth of 72.4%.
The Savoy Resort & Spa opened in May 2014, adding 163 rooms to the market.
Supply is expected to continue to grow during 2015 with a total inventory of 284
rooms, including the 124-room Avani Seychelles Barbarons Resort & Spa that
was launched in February 2015.
The Seychelles Tourism Board plans to launch its “I love Seychelles” tourism
promotion campaign during 2015, with the aim of raising Seychelles’ profile and strengthen awareness of Seychelles as a destination. The
board plans to concentrate on the key European source markets and China,
which includes the commencement of non-stop direct flights from Beijing to
Seychelles.
Banyan Tree Seychelles (70%)– USD 25 million
NOTABLE HOTEL DEALS
Six Senses Zil PasyonNira Sathwa
UPCOMING HOTELS
NEW HOTELS
Avani Seychelles Barbarons Resort & Spa
QUICK FACTS
rooms123 rooms
HIGHLIGHTS
Note: Seychelles Hotels refers to Marketwide Hotels.Source: Seychelles’ National Bureau of Statistics, JLL.ADR – Average daily rate, RevPAR – Revenue per available room.
232,667International Visitor
Arrivals 2014
123 roomsNumber of New Rooms
2014 Revenue per Available
Room (RevPAR)(2013)
USD
260USD
400Average Daily
Rate (ADR)(2013)
65.0%Occupancy
(2013)
Hotel Destinations Asia Pacific34
HIGHLIGHTS
MaldivesA 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.
Tourism Demand Supply Outlook
As at YTD December 2014, visitor arrivals increased by 7.1% y-o-y to
1.2 million visitors. This increase was underpinned by strong growth in visitors from Mainland China, South Korea and
India. The Mainland Chinese market has been a major source market that has
resulted in a surge in visitor arrivals to the Maldives over the last few years.
As the leading source market to the Maldives, Mainland China comprises about 30.2% of total visitor arrivals to
the country in 2014, which is more than three times that of the second leading source market; Germany. The fastest growing source markets as at the end
of 2014 included India, South Korea and Mainland China with 19.9%, 15.1% and
9.6% growth, respectively.
The latest resort to open in the Maldives is Amilla Fushi on Baa Atoll in December
2014. The property is the first property under the Amilla brand created by The Small Maldives Island Co., and
comprises 34 over-water villas and 36 land suites/villas. There were four resort
openings in 2014, adding 280 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.
Outrigger Konotta Island Resort Radisson Blu Maldives HulhumaleAmilla Finolhu Maldives
UPCOMING HOTELS
NEW HOTELS
QUICK FACTS
Outrigger Konotta Island Resort– UndisclosedBeach House Iruveli– USD 72 millionHerathera Island Resort– USD 33.3 million
NOTABLE HOTEL DEALS
Note: Maldives Hotels refers to Marketwide Hotels.Source: STR Global (YTD December 2014), Ministry of Tourism, Arts & Culture, JLLADR - Average daily rate, RevPAR - Revenue per available room
1.2 millionInternational Visitor
Arrivals 2014
280 roomsNumber of New Rooms
2014Revenue per Available
Room (RevPAR)
USD
517USD
756Average Daily
Rate (ADR)
68.4%Occupancy
JA Manafaru Amilla Fushi Maalifushi by COMO Club Med Finolhu Villas
Loama Resort Maldives at Maamigili
rooms84
rooms70
rooms52
rooms105rooms rooms
66
35Hotel Destinations Asia Pacific
Sri LankaLocated 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. Six 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.
Tourism Demand Supply Outlook
Sri Lanka continued on its high growth trajectory, with 2014 arrivals growing by 19.8% year-on-year to 1.5 million
tourists. Total tourism earnings during the nine-month period from January through September (latest available)
increased 31.4% to USD 1.6 billion in 2014. The Sri Lankan Tourism
Development Authority (SLTDA) has set a target of 2.5 million annual arrivals by 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. Visitors from Mainland China grew 136.1% in 2014 making it one of
the fastest growing source markets to Sri Lanka, while India remained the top source market with a share of 15.9%.
The 158-room Ozo Colombo opened in May, marking the entry of Onyx Hospitality in Sri Lanka. The hotel
operator will open a 122-key Ozo Kandy in April 2015 and has also announced
the ground breaking of the construction of a 172-key Amari branded resort in
Galle in February 2015.
With a new government formation under the leadership of President Maithripala
Sirisena, the government remains committed on its focus to improve the overall tourism infrastructure
in the country. 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.
Anantara Tangalle (49.9%)– USD 11.6 millionDickwella Resort & Spa – USD 11.4 million
NOTABLE HOTEL DEALS
Marriott Weligama Anantara Tangalle Ozo Kandy
UPCOMING HOTELS
NEW HOTELS
Centara Ceysands Resort & Spa, Bentota
Ozo ColomboCinnamon Red Colombo
QUICK FACTS
rooms165
rooms158
rooms242 rooms
HIGHLIGHTS
Note: Sri Lanka Hotels refers to Luxury Hotels only.Source: SLTDA, JLLADR - Average daily rate, RevPAR - Revenue per available room
1.5 millionInternational Visitor
Arrivals 2014
617 roomsNumber of New Rooms
2014Revenue per Available
Room (RevPAR)
USD
82USD
114Average Daily
Rate (ADR)
72.0%Occupancy
Best Western Elyon Hotel Colombo
rooms60
Hotel Destinations Asia Pacific36
Quick Facts
Seoul 1,665 78.1% 14914.2 million 191
Taipei(Luxury & Upscale)
803 67.3% 1679.0 million(YTD December 2014)
249
Tokyo(Luxury)
248 82.8% 3578.7 million 432
NUMBER OFNEW ROOMS 2014
OCCUPANCYUSD REVENUE PER AVAILABLE ROOM
(REVPAR)INTERNATIONAL VISITOR
ARRIVALS 2014
Hong Kong
(Luxury)
1,750 78.5% 37360.8 million 476
USD AVERAGE DAILY RATE (ADR)
Macau(Luxury)
0 90.6% 19131.5 million 211
Singapore
(Luxury)
1,773 80.3% 25915.1 million 323
Kuala Lumpur
(Luxury & Upscale) 739 73.3% 11022.9 million
(YTD October 2014)
150
Sydney 0 87.1% 17822.6 million(YTD September 2014)
204
Melbourne 426 85.8% 15214.8 million(YTD September 2014)
177
Manila 2,658 67.4% 852.7 million(YTD July 2014)
126
Shanghai
(Upscale)
1,662 66.3% 1137.9 million 171
Osaka(Luxury & Upscale)
360 80.8% 1364.2 million 168
Auckland 153 82.2% 1012.8 million 123
37Hotel Destinations Asia Pacific
Jakarta
(Upscale)
2,454 63.7% 1152.2 million 181
Seychelles 123 65.0%(2013)
260(2013)
232,667 400(2013)
NUMBER OFNEW ROOMS 2014
OCCUPANCYUSD REVENUE PER AVAILABLE ROOM
(REVPAR)INTERNATIONAL VISITOR
ARRIVALS 2014
Beijing(Upscale)
1,860 69.4 % 1094.3 million 157
USD AVERAGE DAILY RATE (ADR)
Bangkok
(Luxury)
1,264 54.7% 9715.5 million 178
Phuket 1,421 69.0% 883.2 million 128
Mumbai
(Luxury)
0 66.8% 9611.1 million 143
Delhi(Luxury)
1,144 67.5% 10313.4 million 153
Ho Chi Minh
City
651 66.4% 774.4 million 116
Bali(Luxury)
3,838 70.5% 3193.7 million 452
Sri Lanka
(Luxury)
617 72.0% 821.5 million 114
Maldives 280 68.4% 5171.2 million 756
Hanoi 748 68.0% 743.0 million 109
Yangon
(Luxury and Upscale) 457 71.9% 121972,597 169
38
Contributors
Frank SorgiovanniHead of ResearchAsia [email protected]
Scott HetheringtonChief Executive Officer [email protected]
Craig Collins Chief Executive OfficerAustralasia [email protected]
Troy Craig Managing Director Strategic Advisory Asia Pacific [email protected]
Mike Batchelor Managing Director Investment Sales [email protected]
Mark Durran Managing Director Investment SalesAustralasia [email protected]
Tom Sawayanagi Managing Director Japan [email protected]
Hotel Destinations Asia Pacific
Front cover Shanghai skyline, China
About JLL Hotels & Hospitality GroupJLL’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 more than 320 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 more than US $48 billion, while also completing approximately 4,500 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, download the Hotels & Hospitality Group app for iOS and Android, or view our e-magazine The Hotel Investor, available for iPad.
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