Asia Pacific Hotel Outlook Mixed for Next Year

JLL released their latest Hotel Operators' Sentiment Survey 2024/2025, forecasting mixed fortunes for the hotel sector across Asia Pacific in the year ahead. JLL said North, South and Southeast Asian hoteliers are forecasting strong performance for 2024/2025 while the Australasia region is more cautious in its optimism. The main conclusions include that Australasia and Greater China forecast a better year in 2025 than 2024 but remain more cautious than other subregions. 35% of Australian respondents warned of challenging conditions for the remainder of this year but occupancy sentiment improved for 2025. 68% predicted a better performance. More respondents from Australasia and Greater China expected a year-over-year decrease in ADR in 2024 and 2025 than in other parts of the region. 79% of hoteliers in the luxe sector and 82% of budget hoteliers expecting positive sentiment about occupancy, while upper upscale, upscale and midscale hoteliers are less optimistic about revenue. Upscale hoteliers were most bullish in terms of ADR growth. Hotels in Japan, Thailand and India are the most optimistic about the prospect of growth in revenue and profit results in 2024 and 2025 with slower growth anticipated in Australia and Southeast Asia. JLL said hoteliers in China are predicting a general declining trend in 2024/2025. 28% of overall respondents were pessimistic about growth prospects for F&B revenue, while 48% believe F&B profit would increase. Chinese hoteliers had 69% predicting less F&B activity. JLL said the largest Capex items for 2024/2025 are for technology and mechanical, electrical and plant items, while sustainability is identified as third on the Capex list.

Macau had 6.7 million visitors during the summer vacation, up 11.7% over last year. The total was 93.4% of the levels seen in 2019, with a daily average of 107,764 tourist arrivals. There were three record-breaking single-day highs in passenger traffic, with the current peak set on August 24th when 735,580 crossings were recorded.

Radisson Hotel Group reported significant milestones across its global brand portfolio in the first half of 2024. That included the introduction of the Radisson Collection and Radisson RED brands in several new markets and nearly 20 new Radisson Blu signings. Overall, they had 130 new signings and openings across EMEA and APAC. The new markets for Radisson RED included Ireland, New Zealand, Thailand, Laos and China, bringing its global portfolio to nearly 90 hotels. In APAC, Radisson Hotel Group accelerated its growth, adding over 5,000 keys to new openings and signings in China. They also had new signings in key Southeast Asian markets such as the Philippines, Vietnam, Cambodia, Indonesia and Laos. They also have had signings and openings of nearly 25 hotels in 2024 so far.

Hilton announced the signing of its flagship brand hotel in Lucknow, India, the capital city of Uttar Pradesh. The 140-room Hilton Lucknow is scheduled to open in the first quarter of 2025, developed in partnership with Amrit Bottlers Private Limited. It will be part of a larger complex that already includes Hilton Garden Inn Lucknow, managed by Hilton under the same ownership. Hilton also announced the signing of a flagship Hilton brand hotel in Gurugram. The Hilton Gurugram Baani City Centre is being developed in partnership with Baani Group, which already owns DoubleTree by Hilton Guargaon Baani Square. The new Hilton is slated to open later in 2024. Finally Hilton announced the signing of Conrad Jaipur with the new 246 key hotel in the Pink City of India to be the debut of the brand there. The hotel is being developed by SunnyRaj Properties Pvt Ltd and is scheduled to open in 2027.

Hilton announced the signing of The Motley Hotel Richmond, Tapestry Collection by Hilton, marking the brand's debut in Australia. The 80-room hotel signing is part of a franchise agreement with Amber Property Group. Hilton also announced the opening of DoubleTree by Hilton Vientiane, marking Hilton's foray into Laos. This is also the hospitality group's 10th market in South East Asia. The 188-room hotel is located in the heart of Laos' capital city.

The Four Seasons Hotel Hangzhou at Hangzhou Centre has opened its doors. This is their second hotel in the city as they expand their locations across China. The Four Seasons has 188 guest rooms and 26 suites, all offering elevated views from the 19th to the 26th floors. Beginning in late September, all suite guests will be invited to the Executive Club lounge. The hotel has four dining and drinking concepts including a rooftop bar. On the 18th floor is the Spa and Wellness Centre. The hotel also has 31,000 square feet of indoor event space.

Langham Hospitality Group and Rabbit Holdings, an affiliate of the BTS Group, announced The Langham, Customs House, Bangkok, will open in 2026. The hotel will be in Bang Rak and occupy a complex alongside the Chao Praya River in Bangkok's old Customs House. The heritage building will be restored to its old glory. Accompanying the structure will be a former post office housing lavish amenities, flanked by a modern structure where the property's 78 guestrooms will be based. The hotel will include an outpost of The Langham, Hong Kong's three Michelin-star Cantonese restaurant, T'ang Court, along with the Chuang Spa.

Avani Hotels & Resorts from Minor Hotels announced the opening of Avani Ratchada Bangkok Hotel, located in the heart of Bangkok's new Central Business District. The 402-room hotel includes a 169-square-meter Presidential Suite offering luxury features, including a private sauna. The exclusive AvaniClub Lounge is perched on the 25th floor. The hotel's wellness center spans an entire floor and includes a swimming pool, AvaniFit gym and spa facilities including a Japanese Onsen and sauna. There are 11 versatile events and meeting spaces as well as food and beverage options.

The Sofitel Wentworth in Sydney, Australia's CBD, announced a $36 million renovation plan to modernize the 15-story hotel while preserving its heritage façade. The extensive refurbishment is scheduled for completion by late 2024. The renovation aims to update the hotel's 436 guest rooms and suites. The project will introduce a new hospitality precinct that includes two restaurants, two bars, and one of Sydney's largest rooftop terraces. The renovation plans feature a state-of-the-art Health and Wellness studio equipped with a gym and a club lounge. The hotel's grand entrance lobby and Wentworth Ballroom are set for a major redesign.

Hann Resorts has postponed its IPO to mid-2025. The Philippines IR casino resort company had been hoping to raise the money and list by later this year or very early in 2025. Philstar said the delay is due to the US Federal Reserve's shift in policy, as Hann believes it will be in their favor to wait until the Fed cut interest rates to attract international investors to Asia. Hann Resorts operates a casino resort in the Clark Freeport Zone. The IPO is intended to secure new funding for expanding its gaming operations and developing its multi-billion dollar Hann Reserve.

We do not really understand the big uproar, but the second Bell hearings on troubled Australian casino resort operator Star Entertainment came back with similar results to the first, that they are not suitable for a casino license. If you kept up with the Bell2 hearings, they seemed even worse than the first as the parade of executives, now nearly all former, discussed how the CEO brought on, along with Board members, spent more time in the past year or so trying to discredit the person that has been brought in to oversee the remediation of the company rather than actually doing any remediating. Now they brought in a bunch of former Crown Resorts executives, the ones that actually took part in the successful remediation at that company, so there is little chance the hearing summary would result in a loss of license. All that being said, the timing, right after the opening of the Queen's Wharf Brisbane and right before they were supposed to announce financial results, has sent the company and their shareholders/debt holders into a tizzy. They delayed their results with numerous headlines saying if they don't come up with emergency funding, the company will be in big trouble. We really don't understand why the expectations were different than the actual Bell2 summary or was it just the timing?