India Hotel Investments Rebound to Pre-Covid Levels

The latest report from HVS Anarock shows the Indian hospitality industry has ramped up investments in greenfield hotel developments, driven by the demand coming from tier 2 and 3 cities and rising disposable incomes and overall economic growth. The report said greenfield hotel investments in India rebounded to pre-Covid levels in the first half of this year, accounting for nearly 48% of hotel brand signings by keys, surging to 53% in early 2024. HVS Anarock said the growth was driven by hotel chains aggressively expanding in tier 2, 3 and 4 cities. Cities like Indore, Kanpur, Bhubaneswar, Varanasi, Udaipur and Coimbatore are experiencing a rise in demand. JLL Hotels and Hospitality Group previously reported that hotel investment transactions are expected to rise 22% this year to US$413 million.

Macau's average five-star hotel room rate in August was MOP1,652.7 (US$206), down -0.1% year over year. The Macau Hotel Association said that was down -1% from August 2019. The August average room rate measured across its three-, four- and five-star hotels fell -1.1% year on year to MOP1,473, with three-star hotels down -9.1%. The five-star hotels' average occupancy was 96.5% in August, which was up by 6.2 percentage points. The average occupancy rate across all three tiers was 96.1%. The Macau Tourism and Hospitality Association is predicting the hotel occupancy rate during Golden Week will reach 2019 levels.

Dusit Thani Bangkok is reopening on September 27th. The newly rebuilt property honors the original, which first opened in 1970. The hotel incorporates elements from the original property, such as the spire and traditional design motifs while introducing modern innovations that enhance the guest experience. Dusit believes the key feature that sets the new hotel apart from the other luxury properties is its unique integration of technology. The Dusit Thani Bangkok has 257 rooms, each offering views of Lumpini Park. The extensive meeting spaces include the Napalai Ballroom and a rooftop venue.

Hilton Tokyo is set to undergo a significant transformation as part of its commitment to maintain its leadership in the MICE sector in Japan. The hotel is investing in a multi-million dollar renovation project to upgrade its event spaces. The first phase will focus on the complete renovation of the hotel's third floor, adding an additional 200 square meters to the existing 1,000 square meters of event space, resulting in modern, flexible rooms equipped with advanced audiovisual technology. The renovation is part of a broader initiative to enhance the hotel's offerings for international business events with the new event spaces adaptable to a wide range of requirements, making them suitable for both intimate meetings and large conventions. There will be four meeting rooms, five function rooms, a pre-function room, three breakout areas and a lecture hall. The renovation is expected to be finalized in mid-October on this section and then Hilton Tokyo will turn its attention to revitalizing the fourth floor, including its ballroom, with a scheduled completion in summer 2025.

Brookfield Asset Management's Leela Hotels is planning to expand its hotel portfolio by tapping into emerging segments such as wildlife, spiritual and heritage tourism, as well as serviced apartments. Now that Leela will be part of the upcoming IPO, there will be a lot more talk about them in the coming weeks. Leela's expansion plans are said to include the addition of eight new hotels, aggregating 833 rooms, increasing its current room capacity by 24.63% through 2028. The plans include setting up properties in Agra, Srinagar and Sikkim and resorts at wildlife sanctuaries of Ranthambore and Bandhavgarh. Their first serviced apartment project is expected to be in Mumbai's international airport district.

Indian Hotels Company has strengthened its footprint across Tamil Nadu, India with the signing of the first IHCL SeleQtions hotel in the East Coast Road area in Chennai. The hotel is part of a 30-acre eco-friendly development and is a partnership between IHCL and GT Bharathi Urban developers. The 120 key hotel will have a range of dining venues including an all-day diner, specialty restaurant, a bar and a lounge. The hotel will also feature a gym, swimming pool and a spa. With the new property, IHCL's footprint in the state will increase to 22 hotels of which six are under development.

Delta Corp will be splitting up the company. According to the scheme of arrangement, each Delta Corp. shareholder will receive 1 share of Delta Penland for every 1 share held in Delta Corp with the new entity also listed on the NSE and BSE stock exchanges. Delta Penland will be its hospitality and real estate business.

Philippines property developer Ayala Land Inc. plans to fund three developments in Metro Manila, including the construction of the new Mandarin Oriental Hotel, with the P2.7 billion raised from the block sale of 75 million common shares of real estate investment trust, AREIT Inc. ALI said they intend to invest its net proceeds in residential and commercial developments comprising one office building, one residential development and one hotel building in Metro Manila which Ayala Land may undertake on its own or through subsidiaries and affiliates. The Mandarin Oriental Hotel will receive P1.18 billion for the construction of the 276-room property. The development is 57% complete and is set to be finished by 2026.

MET Property announced the Grand Launching of Lofthill Residence Kuala Lumpur by TRE Towers & Armani Group. The property is designed as an exclusive Airbnb project with a jacuzzi on the balcony. TRE Towers teamed up with Armani Group to introduce the Lofthill Residence in Kuala Lumpur. Lofthill Residence brings Malaysia's first automated Airbnb run by the Five Senses Experience Suite under 5 Stars Hotel Loyalty Programme. The property is just a stone's throw from the KLCC building.

Lotte Hotel & Resort announced the debut of L7 in the US Market with L7 Chicago. The Korean company said after L7 Chicago, they will open L7 Indiana, in the town of Westfield. The hotel will be a five-story building with 215 rooms. Construction is scheduled for the second half of next year with completion scheduled for the first half of 2028.