THE ANNUAL HVS ASIA-PACIFIC

HOTEL OPERATOR GUIDE(AS OF 31 DECEMBER 2019)

2020 EDITION | PRICE US$800EXCERPT

Apichaya WongsuwanAnalyst

Pawinee ChaisirirojSenior Manager

Daniel J VoellmManaging Partner

HVS.com HVS | Level 7, Nan Fung Tower, 88 Connaught Road Central, Hong Kong

FORWARD

Daniel J. Voellm, MRICS

Managing Partner, Asia Pacific

As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE I

A refreshed design for the Hotel Operator Guide brings us into a new decade which fromthe get-go is beset with new challenges. While the industry struggles during the Covid-19pandemic on an unprecedent scale, many development projects continue to moveforward. Owners, now more than ever, need foresight in selecting the right partner to runtheir hotel property. This publication is the most established tool in the industry in AsiaPacific to guide owners in understanding the scale, presence and capabilities of operatorsin the region. HVS has advised numerous owners in the decision-making process to selectthe right structure and operator for their projects and assist in negotiating favorableterms. Great importance is ascribed to the confidence an owner can take in the operatorbeing familiar with the intricacies of doing business in the locale and the brand deliveringthe topline performance according to its positioning. That being said, motivations amongowners in selecting an operator vary, and criteria and objectives can call for a morecreative approach and thinking outside the box.

We greatly appreciate the support from all participants of this guide to provide a morecomprehensive profile of our industry in the region. Should you want to participate in thenext edition of the guide, please do reach out to us.

In this Seventh Edition, we have captured over one million existing and more than half amillion pipeline rooms spread over 7,148 properties. This publication features 55operators and we look forward to have more brands included in forthcoming editions. Ouranalysis covers 33 countries and territories in Asia-Pacific and 1,133 markets with existinghotels as well as 832 markets with proposed hotels. Special thanks also go to my co-authors Pawinee Chaisiriroj and Apichaya Wongsuwan from our Bangkok office who liaisedwith the operators and compiled that data, presenting you with an important resource inour HVS library. Happy reading and stay safe!

As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE II

40%

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70%

0

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600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

2014Edition

2015Edition

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2020Edition

Pip

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Existing Pipeline Pipeline/Existing Growth

Overview

The graph below presents the data collection of The Annual HVS Asia-Pacific Hotel Operator Guide over the past seveneditions. Between the 2014 Edition and the 2020 Edition, the existing room supply, and the pipeline room supply registeredgrowth rates of 9.9% and 14.2% per annum, respectively. The annual growth between pipeline room supply and existing roomsupply hovered between 50% to 60% mark in the past, with the exception of the 2015 Edition and 2020 Edition, where thegrowth was observed at 64% and 63%, respectively.

Between YE2018 and YE2019 data, the existing properties and the existing room supply registered growth rates of 20.1% and 13.9%, respectively.Similarly, the pipeline supply posted healthy double-digit growth of 31.3% in properties and 14.2% in room supply.

Pipeline Supply GrowthCAGR YE2014 – YE2019

Properties +19.4%Rooms +14.2%

1.3 Million

0.8 Million

CAGR: Compound Annual Growth Rate

Existing Supply GrowthCAGR YE2014 – YE2019

Properties +13.8%Rooms +9.9%

As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE III

Geographic Distribution: Existing Supply

TOP 5 EXISTING ROOMS SUPPLY

China 649,043 Rooms

Australia 106,460 Rooms

Indonesia 101,840 Rooms

Thailand 82,662 Rooms

Japan 78,633 Rooms

China 48%

Australia 8%

Indonesia 7%

Thailand 6%

Japan 6%

India 5%

South Korea 4%

Malaysia 3%

Singapore 3%

Hong Kong SAR 2%

Given its sheer size, China dominates the market in terms of

geographic distribution for existing inventory at 48%. The

top five countries have over one million rooms in inventory

combined.

Other significant markets in terms of existing hotel rooms

include India, South Korea, Malaysia, Singapore, and Hong

Kong SAR.

As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE IV

TOP 5 PIPELINE ROOMS SUPPLY

China 504,245 Rooms

Indonesia 56,378 Rooms

Thailand 49,198 Rooms

Vietnam 46,595 Rooms

India 41,052 Rooms

Geographic Distribution: Pipeline Supply

China 58%

Indonesia 7%

Thailand 6%Vietnam 5%

India 5%

Malaysia 4%

Australia 3%

Philippines 3%

Japan 2%

South Korea 1%

0%

20%

40%

60%

80%

100%

LOI/MOU signed Contract signed Initial Planning

Under Construction Pre-Opening Expansion

Approximately 40% of the new supply is under construction, while 45% has signed either a Letter of Intent/Memorandum of Understanding or management agreement.

TOP 10 PIPELINE SUPPLY BY DEVELOPMENT STATUS

Excludes properties with development status not identified

Pipeline Rooms Supply

The top four operators posted the largest market share of 63% by the number of pipeline properties. Each of the top four operators recorded over 100,000 rooms in the pipeline supply. Hilton ranked second, trailing behind Marriott International by approximately 24,000 rooms.

Existing Rooms Supply

The top five recorded a market share of 67% by existing roominventory. While Accor Asia Pacific trailed behind MarriottInternational by just 1,437 rooms in YE2018, Accor Asia Pacificreported 2,674 rooms higher than Marriott International inYE2019. Okura Nikko Hotels made it to the top ten list withapproximately 21,500 rooms.

As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE V

Existing Supply and Pipeline Supply by Operators

45 Operators with Less than 21,100 rooms

40 Operators with Less than 11,000 rooms

As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE VI

Existing Supply and Pipeline Supply by Brands

Existing Rooms Supply Pipeline Rooms Supply

Given the prevalence of multi-brand operators, the brandlandscape is subject to a higher degree of fragmentation. Withits notable presence in China, the economy scale chain Super 8has the largest market share of 6%, followed by full-servicebrands such as Crown Plaza and Sheraton Hotels, accountingfor 4% each, respectively.

The brands in the pipeline are leaning toward a mix of limitedand full service. Hampton by Hilton and Holiday Inn Expresseach has 5% of the market share. Full-service brands includingHilton, Marriott Hotels & Resorts, Holiday Inn, Mercure,DoubleTree by Hilton, Novotel, and Crowne Plaza have 21% ofthe market shared combined.

253 Brands with Less than 18,200

Rooms; 67%

Hampton by Hilton; 5%

Holiday Inn Express; 5%

Hilton; 4%

Marriott Hotels & Resorts; 3%

Holiday Inn; 3%

Mercure; 3%

DoubleTree by Hilton; 3%

Novotel; 2%Crowne Plaza; 2% Hilton Garden Inn; 2%

267 Brands with Less than 30,000

rooms; 66%

Super 8 by Wyndham; 6%

Crowne Plaza; 4%

Sheraton Hotels; 4%

Holiday Inn Express; 3%

Holiday Inn; 3%

Hilton; 3%

Novotel; 3%Ramada by Wyndham; 3%

Ibis; 3%InterContinental; 2%

As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE VII

Top 10 Existing Room Supply by Markets

19%

14%

11%

10%10%

8%

7%

7%

7%

7%

Shanghai

67,864 rooms

Beijing

Hong Kong

Bangkok

Singapore

Seoul

Chengdu

Hangzhou

Jakarta47,746 rooms

34,184 rooms

39,575 rooms

34,233 rooms

25,139 rooms

24,887 rooms

26,404 rooms

27,278 rooms

Tokyo

24,449 rooms

The ten leading markets feature approximately350,000 branded hotel rooms or 26% of the totalsample.

Shanghai has the largest number of branded roomssupply of 67,844 rooms, which is equivalent to 5%of the total sample. Three out of the top tenmarkets are urban cities in China. Tokyo recordedjust under 25,000 hotel rooms as of year-end 2019and made it to the top ten list.

As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE VIII

Existing & New Supply Growth

The size of the bubble in the chart represents the growth rate between existing and pipeline branded supply. Changsha andPattaya recorded the largest growth in supply, with a pipeline of 143% and 121% of their existing room supply, respectively.Aside from the top two markets mentioned, most markets in the graph have a pipeline that is between 26% and 106% of theirexisting room supply. All these markets are likely to experience some level of moderating performance in the medium termuntil the new supply is absorbed.

0

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Bra

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Existing Branded Supply

Chengdu

HangzhouXi'an

BangkokJakarta

Phuket

Shenzhen

BeijingKuala Lumpur

Nanjing

Sanya

Changsha

Melbourne

Wuhan

Guangzhou

Tianjin

Pattaya

Suzhou

Manila

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Existing Branded Supply

Shanghai

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142%

31%26% 24% 19% 17% 15% 14% 13% 13%

0%

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120%

160%

C A P E L L A H O T E L G R O U P

N E W C E N T U R Y H O T E L G R O U P

R O S E W O O D H O T E L G R O U P

D U S I T I N T E R N A T I O N A L

F A R E A S T H O S P I T A L I T Y

M A N A G E M E N T

H I L T O N J U M E I R A H G R O U P

O N Y X H O S P I T A L I T Y

G R O U P

M E L I A H O T E L S I N T E R N A T I O N A L

K E M P I N S K I H O T E L S S A

Net Room Growth

Ranked by a very important KPI in the industry – net room growth – there is a mix of small and large operators at the top.Capella Hotel Group posted the highest net room growth of 142% whereas in absolute terms it ranked 29th with 541rooms added. In absolute terms, InterContinental Hotels Group claims the top spot for the largest supply added in YE2019at 21,966 rooms.

Rooms Added Net Room Growth Rooms Added Net Room Growth

1 Capella Hotel Group 541 142% 11 InterContinental Hotels Group 21,966 13%

2 New Century Hotel Group 10,499 31% 12 Hotel Shilla 621 13%

3 Rosewood Hotel Group 1,863 26% 13 Hyatt Hotels Corporation 4,875 11%

4 Dusit International 1,355 24% 14 Cross Hotels & Resorts 126 10%

5 Far East Hospitality Management 835 19% 15 Banyan Tree Holdings Limited 474 9%

6 Hilton 13,986 17% 16 Oakwood Worldwide 578 9%

7 Jumeirah Group 138 15% 17 Swiss-Belhotel International 1,069 9%

8 Onyx Hospitality Group 1,098 14% 18 Accor Asia Pacific 18,472 9%

9 Melia Hotels International 625 13% 19 Pan Pacific Hotels Group 739 8%

10 Kempinski Hotels SA 1,179 13% 20 Okura Nikko Hotels 1,623 8%

Largest room supply added at 21,966 rooms

63.0%

27.1%

6.5%

3.3%

0.1%

HMA

Franchise

Others

Not Identified

White Label

As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE X

Management Structure – Existing Supply

0% 20% 40% 60% 80% 100%

Hong Kong SAR

Singapore

Malaysia

South Korea

India

Japan

Thailand

Indonesia

Australia

China

HMA Franchise White Label Others

Management Structure for Existing Hotels

Management Structure by Top 10 Geographic Distributions Top 10 Franchise Brands by Number of Rooms

0%

5%

10%

15%

20%

25%

Excludes properties with management structure not identified

Most properties are being operated via a Hotel ManagementAgreement (HMA), followed by Franchise. Others managementstructure may include owned-operated or leased. White Label isrelatively new and witnesses a smaller portion compared to other typeof management structure. Taking a closer look at franchising, mostfranchise agreements are established in South Korea, China, India,Japan, and Australia. The brands strongest in franchising are typically inthe budget and midscale positioning.

As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE XI

Management Structure – Pipeline Supply

Management Structure for Pipeline Hotels

Management Structure by Top 10 Geographic Distributions Top 10 Franchise Brands by Number of Rooms

75.1%

22.0%

1.6%1.2%

0.1%HMA

Franchise

Not Identified

Others

White Label

0% 20% 40% 60% 80% 100%

South Korea

Japan

Philippines

Australia

Malaysia

India

Vietnam

Thailand

Indonesia

China

HMA Franchise White Label Others

Excludes properties with management structure not identified

0%

5%

10%

15%

20%

25%

30%

In the pipeline, almost 650,000 rooms or 75.1% will be operated undera Hotel Management Agreement (HMA) structure, followed by 22.0%for a franchise agreement. Pipeline supply witnesses a smaller portionof Others management structure (owned-operated model) comparedto the existing properties as several operators are moving toward assetlight strategy. Additionally, more countries in the region are expected toincreasingly see franchise agreements structure moving forward. Interms of the brands, ibis and Hampton by Hilton continue to rank in thetop five franchise brands in both existing and pipeline supply.

As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE XII

Table of Content

OperatorAccorHotels Asia-Pacific 1Akaryn Hotel Group 2Archipelago International 3Banyan Tree 4Belmond 5Best Western International - Asia 6Capella Hotel Group 7Centara Hotels & Resorts 8Club Med 9Cross Hotels & Resorts 10Dorsett Hospitality International 11Dusit International 12Event Hospitality & Entertainment 13Far East Hospitality Management 14Four Seasons Hotels & Resorts 15Galaxy Entertainment Group 16Hilton 17Hotel Shilla 18Hyatt Corporation 19InterContinental Hotel Group 20Jinmao 21Jumeirah 22Kempinski SA 23Langham Hospitality Group 24Lanson Place Hospitality Management Limited 25Lotte Hotel 26Lub d 27Mandarin Oriental Hotel Group 28

OperatorMarriott International 29Melia Hotels International 30Minor International 31New Century Hotel Group 32Oakwood Worldwide 33Okura Nikko Hotel Group 34Onyx Hospitality Group 35Outpost Destination 36Outrigger Hospitality Group 37Ovolo Group 38Pan Pacific Hotels Group 39Park Hotel Group 40Pragma Hospitality 41Radisson Hotel Group 42Red Planet Hotels 43Regal Hotels International 44Rosewood Hotel Group 45Soneva 46Staywell Hospitality 47Swire Hotels 48Swiss-Belhotel International 49The Ascott Limited 50The Standard 51Urban Resort Concepts 52Wharf Hotels 53Wyndham 54Yotel 55

Sample Hotel

Existing Pipeline

Properties 20 5

Rooms 4,000 2,000

Rooms YoY 5% 2%

Countries

Cities

5

6

2

2

This page illustrates a sample data presentation of each hotel operator.

Top Location by Hotel Rooms

Singapore 1,400

Bangkok 1,000

Phuket 600

Hong Kong 500

Shanghai 400

Year Established: 2010 Regional Headquarters: Bangkok

Total # of Brands: 2 Total # of Employees: 1,000

Number of Existing Rooms by Brand

Number of Pipeline Rooms by Brand

As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE XIII

Number of Pipeline Rooms by Country/Region

Number of Existing Rooms by Country/Region Management Structure For Existing Property

Management Structure For Pipeline Property

Hotel Image

Hotel Image

0 500 1,000 1,500 2,000

Maldives

China

Hong Kong SAR

Singapore

Thailnad

YE 2018 YE 20190 500 1,000 1,500 2,000 2,500 3,000

Brand 2

Brand 1

YE 2018 YE 2019

0 200 400 600 800 1,000 1,200

Brand 2

Brand 1

LOI/MOU signed Contract signed Initial Planning

Under Construction Pre-Opening

0 200 400 600 800 1,000 1,200

Hong Kong SAR

Thailand

LOI/MOU signed Contract signed Initial Planning

Under Construction Pre-Opening

59%23%

12%

6%

HMA Franchise

White Label Others

100%

HMA

About HVS

HVS, the world’s leading consulting and services organization focused

on the hotel, mixed-use, shared ownership, gaming, and leisure

industries, celebrates its 35th anniversary in 2015. Established in 1980,

the company performs 4,500+ assignments each year for hotel and real

estate owners, operators, and developers worldwide. HVS principals are

regarded as the leading experts in their respective regions of the globe.

Through a network of more than 35 offices and more than 500

professionals, HVS provides an unparalleled range of complementary

services for the hospitality industry. HVS.com

Superior Results through Unrivalled Hospitality Intelligence. Everywhere.

HVS ASIA PACIFIC is represented by seven offices in Hong Kong,

Bangkok, Beijing, Mumbai, Shanghai, Shenzhen and Singapore. HVS

hosts important industry events in the region, including the China Hotel

Investment Conference (CHIC) in Shanghai, now in its 14th year and

various HVS Hotel Market Connections events and Learning Seminars.

Additionally, HVS publishes a wide range of leading research reports,

articles and surveys, which can be downloaded from our online library.

The team has worked on a broad array of projects throughout the asset

life-cycle that include economic studies, hotel valuations, operator

search and management contract negotiation, development strategies

for new brands, hotel asset management, research reports and

investment advisory for hotels, resorts, serviced residences and branded

residential development projects. HVS Hong Kong’s clients include key

investors, developers, hotel operators and lenders.

About the Authors

Pawinee Chaisiriroj is a Senior Manager at HVS Bangkok, providing a range ofconsulting and advisory services for the hospitality industry in the Asia Pacificregion. Prior to joining HVS, Pawinee gained experiences in hotel operations withthe Ritz-Carlton, Mandarin Oriental and Four Seasons. Pawinee holds an HonoursBachelor of Arts Degree in Hospitality Management with Real Estate Finance andRevenue Management from Glion Institute of Higher Education in Switzerland.

Daniel J Voellm, Managing Partner HVS Asia-Pacific is based in Hong Kong andhas provided advice in all major markets across 18 countries in the region. DanielVoellm started his career at HVS in the New York office; as Vice President at theglobal headquarters he conducted a wide range of appraisals and market studiesas well as underwriting due diligence services in 22 US states and in Canada.Daniel brings a strong understanding of the hospitality industry to HVS. Hisexperience in hotel and food and beverage operations in Germany, Switzerland,England and the US is complemented by an Honours Bachelor of Science degreefrom Ecole Hôtelière de Lausanne in Switzerland. Daniel works closely with keyinstitutional and private owners of hotel properties, financiers, developers andinvestors, and has gained a strong understanding of their investmentrequirements and approaches to assessing the market value of investmentproperties. Daniel further advises on property and concept development andstrategy.

Apichaya Wongsuwan is an Analyst at HVS Bangkok. She holds a Master inGlobal Hospitality Business from Ecole hôtelière de Lausanne in Switzerland inpartnerships with Hong Kong Polytechnic University and University of Houston –Conrad N. Hilton College. Prior to joining HVS, she launched a hostel in Thailandwith her Bachelor of Science from the University of Delaware.

pchaisiriroj@hvs.com +66 91 107 0270

awongsuwan@hvs.com +66 80 961 0200

dvoellm@hvs.com +852 3628 3871

As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE XIV