Oyo May Have Turned Cash-Flow Positive

How high will be too high for May Day Golden Week in China as reports continue to pour in about terrific business, soaring room rates along with a report from Bloomberg that there were roughly 19.7 million railway trips made across the country on April 29. China Railway Group said they expect a record 120 million passengers during the holiday, a 20% increase over 2019. The Bloomberg report also said major retail and catering companies reported sales increasing by 21% year over year, key food chains’ revenue up 37% while jewelry, cigarette and alcohol sales increased by 17%.

The Macau Government Tourism Office said they were predicting 70,000 visitors a day during the holiday period. On Sunday, Macau set yet another new post-Covid record for daily visitor arrivals with 133,911 arrivals. A total of 570,000 people entered and exited Macau on Sunday. The daily average of visitors was 159,000 in the four day Golden Week in 2019.

Oyo said it turned cash flow positive in the fourth quarter of FY2023 in an internal note to employees. Business Line said their sources told them the company expects to end the quarter with nearly Rs 90 crore surplus cash flow. FY2023 was also supposed to be the first financial year of adjusted EBITDA profits and they are expecting adjusted EBITDA of nearly Rs 800 crore in FY2024. The Europe home business is what is leading the profits while the change in focus to premium hotels is also beneficial.

Wyndham Hotels & Resorts unveiled the 1,399 room Wyndham Grand Phu Quoc, the largest Wyndham Grand hotel in Asia Pacific. The opening marks the company’s entry into Phu Quoc and joins a portfolio of 14 other Wyndham hotels throughout Vietnam. The hotel will have 27 newly constructed villas opening later this year. Wyndham partnered with Phu Quoc Tourism Development and Investment Joint Stock Company on the hotel.

Cinnamon Hotels & Resorts unveiled its new state of the art lifestyle complex, Cinnamon Life Integrated Resort at this year’s Arabian Travel Market in Dubai. Cinnamon Life is nestled in Colombo in Sri Lanka, surrounded by the city’s Central Business District. Cinnamon Life Integrated Resort encompasses two residential towers, world-class retail spaces, an entertainment complex, two luxury hotels, and an office tower. The two hotels feature 800 rooms and suites. The IR will offer 15 restaurants and bars, six located on floors 23-25.

Hong Kong-listed LET Group, formerly known as Suncity Group, said it agreed to sell a 220,000 square meter plot of land in Hokkaido, Japan, where it previously planned to build a luxury ski resort. NauticAWT Limited is the name of the buyer, controlled by Malaysian investor Cheah Meng Fui who will pay a total of US$27 million to acquire the land. LET had intended to build over 50 villas, 20 townhouses and a hotel with over 40 rooms on the land. LET may also dispose of the land it acquired in Okinawa, Japan in 2019 for another resort project. LET is focusing on their Vietnam integrated resort Hoiana, a US$1 billion hotel and casino project they are planning in Manila and Russian casino Tigre de Cristal.

MGM Resorts confirmed their Osaka, Japan, integrated casino resort will not be opening in 2029. They now are expecting a second quarter 2030 opening, something we had already been telling you.

Personnel Moves

Michael Issenberg has joined the board of directors of TFE Hotels as the Australian-based hotel group readies itself for its next phase of global expansion. Issenberg is formerly chairman and CEO of Accor Asia Pacific and is current chair of Tourism Australia and a director of the Star Entertainment Group.

Choice Hotels Asia Pacific announced the appointment of Trent Conroy to the position of director, investment & portfolio growth. Conroy joins Choice Hotels Asia Pacific from global consulting business Environmental Resource Management, a KKR portfolio company.

WATG has appointed Vicky Wang as managing director for Asia Pacific, leading the firm’s offices in Singapore and Shanghai. Wang has been with WATG for 10 years. In 2022 she became managing director for China for the company.

Middle East Highlights

Wynn Resorts has named Thomas Schoen as president of Wynn Al Marjan Island, the multi-billion dollar integrated resort they are developing in the UAE with an opening expected in 2027. The project is being developed with local partners Marjan LLC and RAK Hospitality Holding LLC. Schoen comes to Wynn from Marriott International, most recently as complex general manager, Pine Cliffs Resort – Luxury Collection in Europe.

Knight Frank said Saudi Arabia is gearing up for a major expansion in its hospitality sector, developing 315,000 hotel keys by 2030. Knight Frank said the growth will make the Kingdom’s hotel room inventory bigger than Dubai’scurrent 140,000 keys, likely close to a total of 450,000 hotel rooms by 2030.