Minor Hotels' Plans to Grow Portfolio

STR reported China hotel data for the week ended May 27. China hotel RevPAR was up 83.3% year over year while up 4.3% versus the same week in 2019.

Singapore hotels’ average room rate and RevPAR were up in April with ARR up 3.3% to S$273.18 from March. Year over year, ARR was up 32.8%. Overall room revenue, which set a four month high in March at S$370. million, was down slightly to S$368 million, as average occupancy fell. RevPAR was up 0.6% to S$212.69 from March. That was up 55.8% year over year. Tourist arrivals in April surpassed one million for the second month in a row. The decline in overall revenue was due to the economy and mid-tier hotels which both declined month on money while luxury and upscale hotels showed higher overall room revenues.

JLL’s updated Hotel Momentum India says Bengaluru has emerged as the leader in RevPAR in the first quarter of 2023, up 184%. Mumbai and Hyderabad both had growth of 139%. It has been a strong period for the hotel industry in India with 4,497 new rooms signed with 10 hotels converted into branded hotels.

Minor Hotels said they plan to grow their portfolio to 600 properties in 59 countries. They expect pent-up demand to drive the industry for years and want to quickly expand via its “Asset Right” strategy that seeks to balance investments or leased projects and management contracts. Minor currently operates more than 530 hotels featuring 78,226 rooms in 56 countries under eight brands. The new locations for Minor hotels comprise Egypt, Peru and Bahrain under management contracts. Two new hotels under management in Thailand are the Anantara Koh Yao Yai and the NH Collection Chiang Mai Ping River. They expect a total of 30 new hotels in China through a joint venture investment with Funyard Hotels & Resorts, which will increase the overall number on the mainland to 38 by 2025. Minor sees an opportunity to introduce a new brand such as NH Hotels to China with the ultimate goal being to have 100 hotels within the next five years. Minor also signed a memorandum of understanding with Saudi Arabia’s Tourism Development Fundas a key strategic partner to boost new investments such as the Anantara Diriyah Gate hotel. They signed a joint venture with the Abu Dhabi Fund for development for more than US$100 million last year, including NH Collections Maldives. Overall Minor expects RevPAR to beat the 2019 levels soon.

NagaCorp, the Cambodian gaming operators that holds the only license to operate casinos in the Phnom Penh region until 2045, has balked at their previous expansion plans. NagaCorp announced it is pushing back the completion date of its $3.5 billion Naga 3 project in Phnom Penh by four years, to September 2029, as opposed to the previous completion date of September 2025. Naga said they are seriously considering options of developing Naga 3 matching revenue generation with capex expenditure. That translation is they think they should downsize the project. The original plan for the third phase was to increase the resorts offerings to 5,000 hotel rooms, 1,300 gaming tables and 4,500 electronic gaming machines with 93% of the floor space devoted to non-gaming. Naga said they also have shelved their plans for an Integrated Casino Resort in Russia’s Primorye region.

JS Corp, a Kospi-listed company that is South Korea’s leading handbag manufacturer, is buying the Grand Hyatt Seoul. JS announced it established a special purpose company, JS 747, to acquire a stake in the luxury hotel. They will invest 100 billion won for the acquisition. JS 747 was jointly set by JS and BlueCove Investment Real Estate Fund No. 1. Seoul Miramar Corp. owner of Grand Hyatt Seoul, will be a subsidiary. JS is also the investor of the Blue Cove REF No. 1. The luxury 615 room hotel will be managed by JS 747 starting this month.

A company from the Republic of Korea signed a memorandum of understanding with authorities on a plan to build a golf & resort leisure site on an island in the Mekong River, aiming to tap Laos’ tourism potential. The ‘Dream Land Lao’ project is proposed for the island village of Don Kangkhong in Sangthong district, targeting niche groups of tourists. Seojin Engineering and Construction Co., Ltd. said in its project proposal that their resort would meet the needs of tourists interested in golf, water sports and those seeking health and beauty facilities. The project is estimated to cost US$200 million in total, to be located just over 60km north of the city center if approved. The project proposal outlines five zones, comprising a shopping and service center, the village community, accommodation for golf players, golf course and a farming area for use by local residents.

Accor said they are expanding its portfolio in the seaside town of Bunbury in south-west Western Australia with the opening of Mantra Bunbury Lighthouse. The new addition to Accor’s portfolio will overlook the Indian Ocean and Bunbury Lighthouse. The hotel features 71 guestrooms and suites, Bunbury’s largest conference space for up to 425 guests, an onsite restaurant and bar, and an assortment of leisure facilities such as an indoor swimming pool, sauna and spa. Mantra Bunbury Lighthouse is owned by Mandala Hospitality Group. This is the fifth franchise agreement signed between Accor and Mandala.

Radisson Hotel Group said they are continuing their growth and development plan in India with the signing of 11 new hotels across brands between January and April 2023. The new hotels are present across Hyderabad, Bengaluru, Ujain, Raipur, Sonamarg, Manali, Kerala and Visakhapatnam. The group also announced the debut of its luxury lifestyle brand, Radisson Collection in India with the signing of the first hotel in Hyderabad while expanding its portfolio across other brands. Radisson Hotel Group has 110 operating hotels in South Asia in 64+ locations. The group also signed three new hotels under its Park Inn & Suites by Radisson brand in Bengaluru and Kerala, further strengthening its partnership with Ruptub Solutions Private Limited.

Indian Hotels Company announced the signing of a resort in Naukuchiatal, Uttarakhan. This is a conversion and will be rebranded an IHCL – SeleQtions hotel after extensive renovation and expansion. The 88 room resort is sprawled over four acres that borders Naukuchiatal Lake. It will include an all-day diner, bar and a specialty restaurant, a swimming pool, spa, gym and indoor and outdoor venues for social gatherings and corporate events. With this addition, IHCL has nine hotels across Taj, SeleQtions, Vivanta and Ginger brands in Uttarakhand including four under development.

The Fern Hotels & Resorts announced the opening of their one-hundredth hotel, The Fern Shelter Resort, Palghar (Maharashtra), located between Mumbai and Ahmedabad provinces in India. The hotel has 81 rooms, top of the line banqueting facilities and more. The hotel will be fully operational from the end of June.

ITC is contemplating an “alternative business structure” for its hotel business according to Dow Jones. The chairman of the company said the proposal to demerge the hotel business is now back on the table after being put on hold due to the pandemic.

Personnel Move

JLL’s Hotel & Hospitality Group announced the appointment of Jon Cannon as Senior Vice President, Asset Management. He will focus on expanding JLL’s asset management platform in Thailand Vietnam, based in Bangkok. Cannon joins JLL from Accor where he held General Manager positions in Bangkok, Samui, Phuket and across Australia.