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Hilton Garden Inn Tripling China Portfolio

Alan Woinski
September 15th, 2022 at 11:53 AM EDT

Skift Take

  • STR said Melbourne, Australia’s hotel performance in August fell from the previous month. Preliminary August 2022 data shows occupancy at 59%, ADR at A$207.05 and RevPAR at A$122.10.
  • Hilton said their Hilton Garden Inn brand is poised to triple its portfolio in Greater China and offer travelers an expanded network of 135 properties in the coming years.
  • Louvre Hotels Group, an affiliate of Jin Jiang International, the second largest hotel group in the world, has begun construction of its five hundredth project in China.

STR said Melbourne, Australia’s hotel performance in August fell from the previous month. Preliminary August 2022 data shows occupancy at 59%, ADR at A$207.05 and RevPAR at A$122.10. STR said ADR was higher than August 2019 but the occupancy and RevPAR levels remained below the pre-pandemic comparables at -27.3% and -16.1% respectively. STR said the highest occupancy level was recorded on Saturday, August 20th at 80.6%. The market’s daily occupancy levels remained above 50% for the month with just five days of occupancy in the 40% range.

Hilton said their Hilton Garden Inn brand is poised to triple its portfolio in Greater China and offer travelers an expanded network of 135 properties in the coming years. The brand has 98 hotels in the pipeline and will account for nearly 1 in 3 future openings for the brand globally in the China market. The development strategy for Greater China is focused on top tier cities, as well as emerging destinations located along high-speed railway lines. The Hilton Garden Inn brand made its market debut in Shenzhen in 2014 and since then has opened 38 hotels across Greater China. The opening of Hilton Garden Inn Shenzhen Guangming on August 18th marked Hilton’s 450th hotel in Greater China & Mongolia. This year, Hilton Garden Inn made its debut in multiple new destinations, with signings in emerging destinations across Greater China.

Louvre Hotels Group, an affiliate of Jin Jiang International, the second largest hotel group in the world, has begun construction of its five hundredth project in China, the Campanile Shanghai Lingang, with its local partner Jin Jang Hotels China Region. The new flagship of the Chinese group will have 212 rooms, cost 70 million RMB and will open its doors in February 2023. In total, Jin Jiang has 11 Golden Tulips, 63 Campaniles and no less than 189 Kyriads already open in China. The Kyriad brand is now the number one international brand for the Jin Jiang group in China. Louvre Hotels Group has a three-year development plan in China, with plans to consolidate and continue to expand the network of Campanile, Kyriad and Gold Tulip brands within the framework. Louvre is looking to invest in strategic locations to expand its presence, such as Chongqing, Chengdu, and Guiyang. From now through 2025 they are predicting the signing of over 1,000 hotels under Kyriad, Campanile and Golden Tulip flags. Their extended stay Tulip Lodj brand has also made a notable entry this year in China.

Mumbai-based Suba Group of Hotels is planning to expand in the East and North East of India. The company is looking to add 10-12 hotels over the next 4-5 years, taking the total number of its hotels to over 100. The group has seen a significant expansion over the last two years. Suba acquired hospitality chain 1589 Hotels in 2021 and signed a 15-year franchisee agreement with Choice Hotels Asia Pacific in July. The group has 95 hotels coverings 5000-plus rooms of which 15 are owned and the rest are under management contracts or with franchisees. Suba said they are aiming to expand in the northeast where there is demand from both business and leisure travelers but not enough brands are present. They are planning for 10 to 12 hotels in the northeast region in the next four to five years. The number of extra rooms will be around 500 from those properties. The group has nine brands across segments in its portfolio. Bengal, Sikkim, Siliguri and Asansol are other locations on the company’s radar. The group had previously ventured into Dubai in 2017-2018 but had surrendered the property’s leases during Covid-19. Their immediate focus is an expansion in India. The company will explore overseas opportunities later.

The Clarks Hotels & Resorts opened The Albatross Golf Resort in Kandy in Sri Lanka. The group is aiming to promote the country to Indian travelers and take advantage of the growing Sri Lankan business and leisure travel market. The Albatross Golf Resort Digana, Kandy by The Clarks, is perched on top of The Coconut Hill and has a backdrop of Pidurutalagala Peak. The property is in close proximity to an 18 hole Golf Course with views of the hills and Victoria reservoir. The rooms are divided into three categories – The Royal Albatross Suite, The Tee off Suite and Deluxe Rooms. The hotel includes a multi-cuisine restaurant, in-house bar, and more.

The Danna Langkawi Resort & Beach Villas in Malaysia announced it is joining Small Luxury Hotels of the World, becoming the first-ever luxury resort member on the island.

Guangzhou R&F Properties Co Ltd. said it is disposing of the Beijing Hotel in China’s capital for CNY550 million (US$79 million). Guangzhou R&F is one of the many Chinese developers that have been facing severe liquidity issues with just under CNY82.7 billion due for repayment within 12 months, as of their June 30thstatement. The group had total cash, including restricted cash, of CNY15.32 billion.

Frasers Hospitality Trust said the proposal to privatize the trust was not approved by security holders. Frasers Property Ltd had made an offer in June to privatize the hospitality trust, offering to buy each unit for S$0.70 in cash. The shareholder vote was held and they did not get enough votes to approve the transaction.

Gaming company Bloomberry Resorts Corp is set to reopen its Jeju casino property in South Korea next month. The Jeju Sun Hotel & Casino is expected to open on October 3 after being closed for more than two years amid the pandemic. Jeju Sun will reopen with 203 hotels rooms, 4 gaming tables, 51 slot machines and 8 electronic table games. The property will feature newly renovated hotel rooms, an international buffet, a Korean restaurant, a Chinese restaurant, new ballroom, conference rooms and a fitness club that features a gym, sauna and a jacuzzi. Bloomberry had announced in 2016 they were selling the property but the deal did not go through. Jeju Sun is Bloomberry’s first casino venture outside the Philippines.

Travelodge Hotels Asia announced the appointment of hotel professionals to its leadership team in Japan. The leadership team includes Yasuko Sugiyama as director of commercial – revenue, distribution, sales & marketing; Carine Sanga as director of design, technical services and project management; Junya Ono as GM; Hiroshi Mio as financial controller; Rie Okuda as director of sales, and Chie Yamada as human resources manager.

Wyndham Hotels & Resorts announced the opening of the 102 key Wyndham Residences The Palm. Their continued expansion across the UAE this time occurs with their first collaboration with IFA Hotels & Resorts. Located in the Palm Jumeirah, Wyndham Residences The Palm includes a mix of deluxe apartments ranging from modern studios to three-bedroom suites, a private white sand beach and other high-end amenities. It can also accommodate groups requiring five-bedroom apartments due to connecting lobbies located throughout. The new property is part of Balqis Residences, one of IFA Hotels and Resorts’ mixed use developments. The amenities at the property include two restaurants, a beach club to be opened later this year, an outdoor heated swimming pool, a wellness center and a kids club. This property is the latest addition to Wyndham Hotels & Resorts portfolio in the UAE, reaching 22 hotels of which 14 are in Dubai alone.

Alan Woinski
September 15th, 2022 at 11:53 AM EDT

Companies: Clarks Hotels & Resorts, Frasers Hospitality Trust, Hilton Garden Inn, Hilton Hotels & Resorts, Jin Jiang International, Small Luxury Hotels of the World, Suba Hotels, Wyndham Hotels & Resorts

Locations: Beijing, China, India, Malaysia, Sri Lanka

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