Minor Expands Its Asia Strategy

STR reported China hotel data for the week ended November 16. China hotel RevPAR was down -3.6% for the week, year over year. The week was up against a +52% comp in 2023. ADR was down -4% for the week while occupancy was up +0.4%, both year over year.

The Macao Government Tourism Office said the total number of visitors to Macau this year is expected to exceed 33 million, which would mean they hit their expected target they set at the beginning of the year. As of November 10, visitor arrivals had exceeded 30 million, with a daily average of about 95,000 arrivals. In 2023, there were 28.2 million arrivals. In 2019, Macau set an all-time visitor record with 39.4 million arrivals.

Minor Hotels Group unveiled an ambitious strategy to expand its portfolio throughout Asia, with plans to exceed 1,000 hotels worldwide within the next five years. They currently operate 561 hotels worldwide with another 114 signed projects in the pipeline. China and Southeast Asia account for 44 of its upcoming projects. They reported another 173 projects under negotiation, including 58 in China and Southeast Asia, 52 in Europe and Latin America, 41 in the Middle East and Africa, and 22 in Australia and New Zealand. Minor plans to get to their goal using their asset-light policy to unlock capital by owning or leasing more hotels, with most properties being franchised and managed rather than directly owned. They remain receptive to other opportunities, including potential expansion into the holistic wellness sector. Minor’s core priority is to solidify its presence in Asia with China and India as the key markets due to their large scale. Their home location of Thailand remains their primary market in Southeast Asia, but they are interested in entering new markets such as Japan, while exploring expansion opportunities in Vietnam, Indonesia, Malaysia, and the Philippines. The group plans to launch around 10 new hotels in Asia next year and 100 hotels across the region by 2026.

The Indonesian Hotel and Restaurant Association said they are waiting for the implementation of the plan to sell state-owned hotels. A number of the Association’s members are said to be interested in buying them. The members will buy these hotels should the government go through with the sales if the banks are supportive. As for new hotels, the Association said new hotel construction in 2025 will still be concentrated in the Jakarta area and its surroundings, such as the BSD area, with the hotels to be built mostly three- and four-star hotels. The number of overall constructions of hotels in 2025 will be relatively smaller because most of them will be financed with their own capital and without using debt.

Marriott International announced a partnership with New Development Group to bring its second EDITION Hotel to Shanghai. The Shanghai EDITION, Changfeng Park, is set to open in 2026, positioned in the heart of Shanghai’s Putuo District along Suzhou Creek, adjacent to Changfeng Park and near Suzhou Creek Half Marathon Park. The hotel will feature 278 guest rooms and suites, many with views of the surrounding green spaces and Suzhou Creek. The hotel will include three restaurants, two bars, a fitness center, a spa, and a swimming pool, as well as meeting and event spaces.

A landmark development application has been lodged for the redevelopment of the InterContinental Hotel Double Bay to deliver a $1 billion lifestyle precinct in the heart of Double Bay Village. The proposal is with Woollahra Municipal Council and will include a new luxury hotel, commercial office suites, a health and wellness center, and 29 apartments across the seven upper levels. The 33 Cross Street development in Double Bay, NSW, Australia, is the vision of a consortium headed by Rebel Property and Capitel Group. Almost half the development has been dedicated to non-residential uses, including cinemas, landscaped open spaces, retail and dining, commercial suites, and community-accessible services.

Paradise Co, a foreigners-only casino operator/owner in South Korea, announced construction on its new flagship hotel project is set to begin in the first quarter of 2025, with the opening scheduled for 2028. The estimated cost of the construction of the hotel is between KRW500 billion and KRW550 billion ($360 million-$400 million). The company’s strategy is to attract more international high rollers to its properties. The hotel in Seoul will feature all-suite accommodations, premium services for foreign VIPs, luxury dining, and wellness amenities. The hotel will stand 18 stories tall with approximately 200 rooms and an additional five basement levels, spanning 13,950 square meters.

CapitaLand Investment Limited agreed to buy an initial 40% stake in SC Capital Partners Group for $214 million. The remaining stake in SCCP, an Asia Pacific real estate investment manager headquartered in Singapore with a presence across eight locations in the region, will be acquired in phases over the next five years.

The Khao Lak Marriott Beach Resort & Spa is getting set for its soft launch in December 2024. The resort has 283 rooms, suites, and pool villas, including private balconies. Restaurant options will include Panasia Grill & Bar and Goji Kitchen & Bar. The resort will offer fully comprehensive MICE facilities, including their impressive Andaman Ballroom with a capacity for 590 guests.

Earlier this week, we reported on Fraser Place Robertson Walk and Robertson Walk in Singapore. We have been advised by Frasers Property that the description of Fraser Place Robertson Walk should be "serviced residence" and not "apartment hotel" as the hospitality property does not have a hotel license. Sekisui House should also be considered a developer and not a construction company.