Macau's Five-Star Hotels Are Back to 2019 Rates

STR reported China hotel data for the week ended August 19th. Hotel RevPAR in China rose 44.3% for the week. It was up against a tough 89.7% rise a year ago. Compared with the same week in 2019, China hotel RevPAR was up 12.3%.

Savills Vietnam issued a report saying Vietnam still has been one of the destinations drawing great interest from investors thanks to the positive recovery capacity and the flexibility of the country's economy. They highlighted large-scale merger and acquisition deals in Vietnam in the second quarter of 2023, including Everland Opportunity IX's purchasing of three hotels in Vietnam and Indonesia from Strategy Hospitality Holdings Ltd., along with other residential and mixed-use project deals. Savills said that despite short-term pressures on inflation as well as a decline in production and exports, Vietnam's medium-term outlook remains positive. The reduction in interest rates by the State Bank of Vietnam has stimulated economic growth by reducing the cost of capital for borrowers and credit institutions.

The Macao Government Tourism Office reported that August has been averaging over 100,000 daily visitor arrivals in the first half, higher than the expected 80,000 a day. On August 12th, visitor arrivals totaled 139,000, the highest single-day visitor arrival number in three and a half years. Recently, that number has declined with the end of the summer holiday season, bringing Macau about 90,000 arrivals per day. July averaged 89,000 visitors daily. In July, the average hotel occupancy rate for just over 25,000 five-star hotel rooms reached 93.7%. The city's overall July hotel occupancy rate was 92.2%, calculated from over 40,000 hotel rooms in the market. The Macau Hotel Association reported that the average five-star room rate in July was MOP1,618.4, up 171.3% year on year and almost level with the pre-pandemic July 2019 period. July showed the highest occupancy rate in Macau since the Covid-19 pandemic. The MGTO is again pushing the international visitation that has been so disappointing. They said there was an average of 7,393 foreign arrivals in July, which grew by a further 5% in the first 17 days of August.

Macau hosted more than 490 MICE events in the first half of 2023, surpassing the total number of events held throughout the entirety of 2022. The events held in the first six months of this year attracted over 40,000 trade visitors to Macau, marking a 15-fold increase compared to 2022. The number of attendees reached over 700,000, a year-on-year increase of 50%. The Macao Trade and Investment Promotion Institute expects the city to host more than 1,000 MICE events this year, including over 100 events related to industries such as tourism, health and wellness, technology, finance, culture, and sports.

In collaboration with Hyatt, Galaxy Macau unveiled details of their all-new Andaz hotel, which is scheduled to launch on September 15th. Andaz Macau, with over 700 rooms and suites, will be the brand's largest hotel globally and the brand's first and only hotel in Macau. This will also be the eighth hospitality brand to establish a presence within Galaxy Macau, located between Old Taipa and Coloane neighborhoods. Andaz Macau will be directly connected to both the Galaxy International Convention Center and the 16,000-seat Galaxy Arena. The hotel will feature a dedicated check-in lounge catering to large MICE groups, a signature lounge, bar and restaurant, a 24-hour fitness center, and a heated 19-meter indoor pool.

Marriott International said its Sheraton Hotels & Resorts brand transformation continues its momentum in Asia Pacific with new properties in Rizhao, Ninghai, Beihai, and Chengdu in China and Kagoshima in Japan. There are now 13 new builds and refurbishments in the region.

Kerry Properties has launched its new mixed-use project in Shanghai's Huangpu district, its largest investment in the market. Kerry Jinling Lu Project will encompass residential properties, offices, retail spaces, and hotels, yielding a total gross floor area of about 663,000 square meters. The project is expected to be completed in phases from 2027 to 2029.

The Prince of Wales Hotel in St. Kilda, Melbourne, Australia, has been put up for sale by Melbourne-based hospitality business, Jackalope Group. They purchased the property in 2015 for A$45 million. They recently completed a multi-million dollar refurbishment. The freehold investment is being sold subject to an existing long lease with the Melbourne Pub Group. The hotel comprises a street bar, dining room, 39 boutique hotel rooms, a bakery with an adjoining retail outlet, a Euro-inspired wine store, and a function space with an indoor pool as well as a multi-level car park. CBRE is managing the sale on behalf of Jackalope Group via an Expression of Interest campaign closing on September 27th.

The Menzies Building is being transformed into a new Distinction Hotel by Invercargill hotelier Geoff Thompson. The building is on Esk St. West in Invercargill, New Zealand. Thompson bought the building with plans to develop it into a 150-room, 4.5-star hotel, complete with a downstairs restaurant, by late 2024. Most of the interior and exterior demolition has been completed, with the next step being the removal of the building's façade, expected in late November. The former Southland Frozen Meats building opposite the Menzies Building was also purchased by Thompson with plans for it to be developed into residential accommodation for the hotel staff. The hotel opening is likely in next year's third or fourth quarter.

The Saraf Group, promoters of Robust Hotels, are infusing funds to take over the five-star bankrupt Hyatt Regency in Mumbai, India. The Saraf Group owns about 18% of Asian Hotels, the operating company of the Hyatt Regency. Under terms of the agreement with the founders of Asian Hotels, the Saraf Group will advance Rs 390 crore, which will be used to pay off all creditors, all the costs incurred in the bankruptcy proceedings, and any other expenses to withdraw the company from the insolvency process. The agreement states that the Saraf Group will have the option to acquire the Hyatt Regency, Mumbai, from its current promoters after withdrawing from the insolvency court and revoking the trading suspension. Sandeep Gupta holds a 45% stake in Asian Hotel, with Sudhir Gupta holding about 25%. If the Saraf Group exercises the option to acquire the hotel, the funds infused by them will be adjusted against the acquisition price.

Lemon Tree Hotels said they signed the 60-room Lemon Tree Hotel, Bhubaneswar, in Odisha, and the 50-room Lemon Tree Mountain Resort, Kasauli, in Himachal Pradesh. The hotels are expected to be operational in the fourth quarter of 2025 and the third quarter of 2026, respectively.