Leela Owner Files for an IPO

The Thai baht has seen its strongest surge in 26 years. That is causing a lot of concern for the tourism industry as it reduces the spending power of foreign tourists and they tend to travel elsewhere on holiday. The 26 year high is linked to the U.S. dollar weakness and is said to have already disrupted the competitive edge of Thailand’s tourism industry. The baht has risen 9% against the U.S. dollar in the past three months. Thailand has already seen 25 million arrivals this year, up 31% year over year but this could threaten the last four months of the year’s arrival targets. The Tourism Authority of Thailand has a full year goal of 36.7 million tourists generating 2 trillion baht in revenue.

The Macau Government Tourism Office said around 23 million tourists have visited Macau in the first eight months of this year, up 30% from last year and at 84% of January to August 2019 levels. The MGTO is predicting 34 million visitor arrivals by the end of 2024, above the 33 million target set for the year and six million more visitors than last year.

International visitors continued their fascination with Japan in August with 2.93 million visitors estimated by the Japan National Tourism Organization. That is 16.4% above August 2019 but the first time in six months the monthly number was below 3 million. The August figure was a record for the month and the seventh consecutive record high for a monthly figure this year. The rise above 2019 levels was accomplished even with Chinese visitation being down -25.5% from August 2019 but still leading at 745,800. South Korea picked up the slack with 612,100 visitors, up 98.3%.

The big news of the weekend was that OYO is greatly increasing its U.S. presence ahead of another attempt at an IPO. Oravel Stays confirmed the acquisition of G6 Hospitality, the parent company of the Motel 6 and Studio 6 budget brands. OYO will pay Blackstone Group US$525 million in cash and give them access to 1,500 franchisees that generated US$1.7 billion in gross room revenue on an annual basis. The sale is expected to close in the fourth quarter. OYO currently has over 320 hotels across 35 US states.

Schloss Bangalore, the owner of The Leela luxury Indian hotel chain, has filed for a US$599 million IPO. The Indian stock market has been a great performer, setting new record highs. Schloss wants to issue fresh shares worth INR 30 billion, while an affiliate of Brookfield Asset Management, Project Ballet Bangalore Holdings, is selling shares worth 20 billion rupees. The Leela operates 12 luxury hotels across India and is planning to add eight more through 2028. They will use the proceeds to pay down debt. Morgan Stanley, BofA Securities, JPMorgan and Citi are among the issue’s book running lead managers.

The Ascott Limited unveiled 28 new property agreements across Southeast Asia, injecting over 3,400 units into various Ascott brands, making up over half the company’s global agreements this year. The new ventures will expand Ascott’s regional footprint to more than 360 properties, both operational and under development, in 86 cities across nine countries: Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. Ascott has grown significantly in the region, expanding from 13,000 units in 2015 to 67,000 currently. The latest agreements also introduce Ascott to new urban areas, including Purwakarta in Indonesia and Kulim in Malaysia.

The provinces of Cebu and Bohol in the Philippines are attracting more developers in the hospitality industry. Leechiu Property Consultants released their new Philippine Hotel Pipeline Report and it shows a diverse range of locations for upcoming accommodation developments in the country, a total of P250 billion in investments in the next five years. Lapu-Lapu City, Cebu is the most attractive investment area in the country, with 4,786 hotel room keys across 10 projects coming in the next five years, with coastline and island attractions boosting their attractiveness. The city is home to the Mactan-Cebu International Airport with brands such as Aruga by Rockwell, DoubleDragon Corp’s Hotel101, Fairfield by Marriott, and Four Points by Sheraton set to be built in Lapu-Lapu. Panglao Island in Bohol ranked second with 4,401 keys plans across 16 projects. The island in Aklan province ranked third overall in terms of the number of upcoming hotel rooms at 3,625. Leechiu said hotels would be adding 40,084 rooms across 158 projects nationwide.

Accor announced the signing of two new build properties in Singapore with three hotel brands, set to open by 2027 with long-standing partners Fragrance Group Limited and Global Premium Hotels Limited, both owned by Koh Wee Meng. The agreement will introduce Movenpick Singapore, the largest Movenpick hotel in Asia Pacific, the first Movenpick Living in Singapore and a Handwritten Collection branded hotel situated alongside the city-state’s Waterloo Street. Movenpick Singapore will have 808 keys. The same building will house Movenpick Living Singapore, an approximately 37-key property for business and leisure travelers seeking extended stays. The 502 key Handwritten Collection brand hotel on Waterloo Street is expected to launch in 2025, Singapore’s second Handwritten Collection property. Accor has a longstanding relationship with Fragrance Group Limited and Global Premium Hotels Limited, operating 17 hotels in Singapore, five in Australia and three in the UK.

Centara Hotels & Resorts and Varivana Resorts Koh Phangan Company Limited, announced the signing of an agreement for Varivana Resort Koh Phangan. This marks Centara’s debut property on the island in Thailand. Varivana Resort Koh Phangan is a 39-key boutique property, opened on September 16, 2024. The resort first opened its doors in January 2020 but now joins Centara’s portfolio. The resort includes a 28 meter rooftop saltwater infinity pool, a spa, and restaurant and bar.