Discount hotel chain China Lodging Group Ltd (HTHT.O) is emblematic of China's blistering growth, but it could be hurt if the government takes steps to prevent the world's third-largest economy from overheating. China Lodging, which hopes to raise about $100 million in an initial public offering this week, has grown rapidly by renting budget rooms under three different brands for an average of 174 yuan ($25.49) a night.
Morgan Stanley may have to hand over the keys of a $2.4 billion Japanese hotel chain to creditors when the debt falls due in April, people familiar with the matter said. Morgan Stanley was among the most aggressive buyers of real estate in Japan and globally during the property boom last decade. Now, many of those deals made at the top of the market are dogging the U.S. investment bank as property values plummet and refinancing options remain scant.
THE sweeping overhaul of the private equity-backed Stella travel and hospitality group sent it crashing to a $667.1 million loss in 2008-09 but directors say it is now in robust financial health and expects solid profit growth this year.
Carlson Hotels Worldwide, one of the world’s leading hotel companies, today announced that it has signed an agreement to increase its stake in RHW Hotel Management Services Ltd (RHW) from 13% to 87%. RHW is the hotel management and consultancy services company which has successfully managed Carlson-branded hotels in India since 1998. Carlson is acquiring the shares from Umak Investment Company Private Limited. The remaining 13% is held by private investors. The transaction is subject to government approval. The acquisition will result in a new integrated organisation for Carlson Hotels in India, encompassing development, projects, operations, marketing and sales. The new organisation will initially have 70 employees with K.B. Kachru, Carlson Hotels’ executive vice president for South Asia at the leadership helm. There are already over 5,000 employees working at Carlson branded hotels in India. “We are very proud of what we have achieved in India to date. I would like to personally acknowledge the work done by the RHW team and our partners in the country over the last ten years. This acquisition is a natural progression for Carlson as we continue to grow in this key market,” said Hubert Joly, president and CEO of Carlson. “This transaction represents a great opportunity for our business associates. It also opens a new chapter in our long-standing relationship with Carlson as we look towards new opportunities to work together,” said Dr. R. Kapur, director, Umak Investment Company Private Limited. This acquisition comes at a time of significant growth for Carlson Hotels in India. The company today also announced that it will be adding 50 hotels, from the current 28 hotels to 78 by the end of 2012. The new integrated organisation in India will help accelerate the future growth of Carlson Hotels in the country. “I am very excited about the growth prospects for Carlson Hotels in India. I am confident that the new structure will help us maximize our potential, and I look forward to continue working with all who have been associated with Carlson’s success so far,” said K.B. Kachru. The RHW transaction follows a similar move made by Carlson Wagonlit Travel (CWT) in 2008 when it completed the acquisition of 100% of CWT India, which had initially been established as a local joint venture. CWT is the largest travel management company in India.
As China's travel industry heats up, 7 Days Group Holdings Ltd. hopes investors will see the promise in its public offering. The discount lodging chain, which operates more than 280 hotels throughout China, is set to debut later this week on the New York Stock Exchange.
The Indian Hotels Company (IHCL), twice snubbed by Orient Express Hotels, is still in talks with the NYSE-listed international luxury hotel chain and plans to take its Ginger and Gateway hotel chains abroad as it continues to ramp up international presence. “We have had some very good meetings with Orient Express executives in the past. But it all depends on the right kind of business environment,” said Raymond N Bickson, MD and CEO of Indian Hotels Company, the Tata group firm that owns the Taj Hotels, Resorts & Palaces.
Forty-eight per cent of all new hotel developments in Phuket are experiencing major construction delays triggered by the global economic downturn and concerns over Thailand's political stability. The Phuket Hotel Market Update's midyear report, released yesterday by hospitality consulting firm C9 Hotelworks, said the slowdown on hotel construction sites had not, however, dented developers' enthusiasm for entering the accommodation market in the province.
Indian diversified firm ITC Ltd (ITC.BO) was not interested in a hostile takeover of hotel chains EIH Ltd and Hotel Leela but was looking at minority partnerships in some hotel projects, its chairman said on Friday. ITC has a stake of 14.98 percent in EIH, which runs the Oberoi and Trident chain of hotels, and has a 3.72 percent stake in Hotel Leela through its investment unit Russel Credit.
As delegates sought some good news in Sydney 2 and 3 July, panelists at the Australia, New Zealand & Pacific Hotel Investment Conference did their best to deliver during: “Who Wins, Who Loses in the Flight to Value?” moderated by hotel consultant Simon Barlow.
China offers hotel developers a huge market and an increasing middle class, both of which are advantages to those willing to put down roots in the country. With a population of more than 1.3 billion, China provides a massive potential outbound market, said Damien Little, director for Horwath HTL, an international consulting agency with an office in China. “All the major players not only want to accommodate the Chinese at home and get their brands top of mind, they also have their eye on the fast-growing outbound tourists from China and want their hotels to be the first choice of the Chinese when overseas and to get the Chinese enrolled in their loyalty programs,” he said.
Hotel companies looking for a market with high demand from business and leisure travelers, a growing middle class and a severe shortage of existing hotels need look no further than India. The recognition of the economic merits of tourism has been a slow progress that didn’t take hold until the mid to late 1990s, said PR Srinivas, lead, tourism, hospitality & leisure for Deloitte.
Mandarin Oriental International Limited announced today that its wholly-owned subsidiary, Mandarin Oriental Holding Company Limited (‘MOHCL’), has completed the sale of its 50% interest in Mandarin Oriental, Macau to Sociedade de Turismo e Diversoes de Macau S. A. (‘STDM’). The sale was first announced on 20th January 2009. The Group’s partner in the hotel, Shun Tak Holdings Limited (‘Shun Tak’), has also sold its 50% equity interest in the property to STDM.
India Hospitality Corp. today announces it has entered into an agreement with Firstcorp Invesco Pvt Ltd ("Firstcorp") to acquire the "You" brand from Firstcorp for a cash consideration of $400,000. IHC intends to rapidly expand this newly acquired brand throughout its vertically integrated Indian businesses, particularly in its lodging segment.
Banyan Tree Holdings Limited announced today its first quarter result which shows a 125% increase in operating profit compared to 4Q08 which was also a traditional peak season of the year. Hotel/resorts in both Thailand and Maldives registered significant improvement amidst a reprieve in the political instability in Thailand and global economic downturn. However, compared to 1Q08, operating profit was 51% below to S$24.5 million as the adverse effects of a series of political upheaval in Bangkok and Phuket and the global economic downturn started to impact the Group since second half of 2008.
According to the results of Jones Lang LaSalle Hotels’ annual Top Owner Survey, Australia’s top ten hotel owners saw little change in their portfolio holdings in 2008, accounting for a combined 12.9% of Australia’s total room supply, compared to 12.4% in 2007. Despite hotel sales totalling only AU$764million in 2008, some key assets change hands including Royal Pines Resort Gold Coast, Westin Melbourne, Holiday Inn Townsville, Novotel Rockford Darling Harbour, Crowne Plaza Newcastle, Gold Coast International Hotel and the Courtyard Marriott Surfers Paradise. Together these transactions represented 59% of the total volume.
PARSIPPANY, N.J. (Oct. 29, 2008) -- Wyndham Hotel Group today announced the promotion of Don Li to regional vice president of development in China and Japan, responsible for the growth and development of the Wyndham®, Ramada®, Days Inn®, Super 8® and Howard Johnson® brands.