Accor to add latest purchase 21c Museum Hotels to MGallery collection

August 1, 2018

Courtesy-of-21c-Museum-HotelsDUR_Lobby_411 — 21c Museum Hotel Durham lobby

AccorHotels is acquiring 85 per cent of 21c Museum Hotels in the US for US$51 million, a deal that will see the latter come under the MGallery collection of boutique hotels and mark the brand’s entry into the North American market.

Scheduled to be completed in 3Q2018, the deal includes a potential earn out payment, and excludes real estate.

Founded in 2006 by philanthropists and contemporary art collectors Laura Brown and Steve Wilson, 21c combines a multi-venue contemporary art museum, boutique hotels and chef-driven restaurants, with 11 properties currently open or under development in the US.

Kevin Frid, COO, North & Central America, AccorHotels, said the acquisition “(strengthens) the group’s footprint in North America in a very unique and promising niche”.

Co-founders Laura Lee Brown & Steve Wilson will retain a 15 per cent stake in the company, and remain closely involved in providing creative guidance and support of the combination of art, design and hospitality concept.

21c Museum Hotels will continue to be led by president & CEO Craig Greenberg, and the corporate headquarters will remain in Louisville, Kentucky.

Inspired by the idea that art can ignite urban revitalisation and catalyse civic connection, Brown and Wilson had rehabilitated a series of 19th century warehouses in Louisville’s downtown arts and theatre district to open the first 21c Museum Hotel.

Today the company operates eight 21c properties in Bentonville, Cincinnati, Durham, Kansas City, Lexington, Louisville, Nashville and Oklahoma City, with three more in development in Des Moines, Miami and Chicago. 21c Museum is one of the largest contemporary art museums in the US and North America’s only collecting museum dedicated solely to art of the 21^stcentury.

Sri Lanka bolsters upcoming lean season with discounts, promotions to Asian markets

By Feizal Samath

August 1, 2018

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kandy-sri-lanka — Kandy, a UNESCO World Heritage listed city in Sri Lanka

Three associations representing airlines, hotels and DMCs – along with Sri Lanka’s Tourism Promotion Bureau (SLTPB) – are banding together to spur off-season arrivals with discounted packages.

The authorities are hoping to increase arrivals by 30 per cent during the lean months of September-November and April-June, according to Sutheash Balasubramanian, managing director of the state-owned SLTPB.

Kandy, a UNESCO World Heritage listed city in Sri Lanka

The target markets are India, China and the Middle East.

As part of the campaign running between September and November, participating hotels will offer a 4D3N package at US$99 per person, Harith Perera, president of the Sri Lanka Association of Inbound Tour Operators, told TTG Asia.

Jetwing Hotels chairman Hiran Cooray said these rates are a 40-50 per cent discount on current rates. Officials at an international airline, who declined to be named, also confirmed that participating airlines including SriLankan Airlines, Emirates and Qatar were offering special rates.

While the industry has already begun promoting these off-season packages, the SLTPB is also calling for bids from advertising agencies to ramp up the campaign in time for launch. “We are going through the procurement process and hope to complete it by late August,” Balasubramaniam said. The promotion campaign would cost around 90 million rupees (US$565,000) and be rolled out on multiple platforms in the targeted markets.

Arrivals up to June rose 15.3 per cent to 1.16 million. India topped the list of arrivals followed by China, the UK, Australia and Germany.

Zen Rooms secures US$15mn funding from South Korea’s Yanolja

By TTG Asia

August 1, 2018

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Yanolja Zen Rooms — From left: Zen Rooms' Nathan Boubil and Kiren Tanna; and Yanolja's

South Korean accommodation platform Yanolja has invested US$15 million for a “significant” stake in Zen Rooms, with the right to acquire the South-east Asian budget hotel chain and online booking platform in full.

Founded in 2015 by former Foodpanda co-founder Kiren Tanna and Nathan Boublil, Zen Rooms said it is distinct from other hotel franchises in the segment in that it is vertically integrated, combining room booking, branding, sales and management with a self-developed online/mobile.

From left: Zen Rooms’ Nathan Boubil and Kiren Tanna; and Yanolja’s Lee Su-jin and Kim Jong-yoon

The company has presence in five South-east Asian countries: Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Within three years, Zen Rooms said its business has grown to over 1,000 economy hotel franchisees and over 7,000-room inventory.

Zen Rooms plans to use the capital to expand its inventory base in current and new markets and continue to invest in technology.

For Yanolja, the investment marks its foray beyond South Korea and into the fast growing South-east Asian region.

Zen Rooms signage at a property in Indonesia

Vice president of Yanolja, Jong-yoon Kim, commented: “Starting with this strategic investment into Zen Rooms, we shall seek to expand to become the most affordable hotel chain and first fully integrated booking platform for leisure activities as well as hotels, going beyond the domestic domain to around the globe.”

Kim added that the company intends to better cater to both domestic and foreign travellers by applying innovative technologies including the Internet of Things and Artificial Intelligence.

South-east Asia is a favourite tourist destination for South Korean travellers. Moreover, a sizeable 17 per cent of foreign travellers to South Korea comes from South-east Asia.

Malaysia’s new tourism minister backs tax; hotel groups to appeal

By S Puvaneswary

August 1, 2018

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kuala-lumpur-night — Shaharuddin expects there will initially be some guests who will refuse to pay the tax

After reviewing the tourism tax, Malaysia’s Tourism, Arts and Culture Minister Mohamaddin Ketapi has decided the flat rate of RM10 (US$2.47) per room per night on foreign tourists will be maintained.

In response, Malaysia Budget Hotel Association president, PK Leong, told TTG Asia that the three hotel associations, Malaysian Association of Hotels (MAH), Malaysian Association of Hotel Owners (MAHO) and Malaysia Budget Hotel Association (MyBHA), were not consulted before the ministry made its decision, and that the three hotel associations would jointly make an appeal.

Mohamaddin said in Parliament that the implementation of such a tax by countries such as the US, the Netherlands, Italy, Singapore and Thailand had brought positive growth to their tourism sector in the longterm, adding Japan and Saudi Arabia had also recently implemented the tourism tax.

This was Mohamaddin’s first major announcement after his appointment in early July.

MAHO executive director, Shaharuddin M Saaid, added that the three hotel associations would also raise the issue with the ministry about establishing a new mechanism so that hotels do not end up as collecting agents for the tax.

Leong said budget hotels stood to lose the most as these hotels charged an average of RM50 (US$12.33) per room per night, thus the tourism tax was equivalent to 20 per cent of the room rate.

He said: “Foreigners stay in budget hotels because they wish to save money. They have two choices if they decide not to pay the tourism tax. They could opt to stay in an Airbnb, which is unlicensed, or choose a different destination, instead of visiting Malaysia.”

Asutra Convex managing director, Azizi Borhan, suggested that local travel agencies include the tax in tour packages and the tour leader could then pay the hotel based on a pre-arrangement between the hotel and the tour operator.

He said: “Hoteliers should open their minds and find a creative solution to the tourism tax issue.”

He believed that four- and five-star hotels could also absorb the tourism tax as the amount was negligible compared with the room rate.

Asia DMC ploughs through business declines in Myanmar

By TTG Asia

August 1, 2018

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Inle-Lake-fisherman — A fisherman on Inle Lake, one of the key tourist attractions in the country

As portions of the international travel community boycott Myanmar over the Rohingya crisis, Asia DMC is intensifying promotion of the destination with trade partners.

It said the local team has secured a “multi-faceted” promotional campaign to attract guests and educate its trade partners to make informed decisions about the destination.

A fisherman on Inle Lake, one of the key tourist attractions in the country

A fam trip for Australian and New Zealand agents will be hosted in September. The DMC is also offering private fam programmes for individual agents (and companions) to travel at “well reduced industry rate” from now through to September and throughout the low season in 2019.

Asia DMC Myanmar has seen an overall decrease in guest arrivals since 2017, when the Rohingya crisis dominated headlines. This has contributed to “declined livelihood of local staff and ground support”, it said.

Major revamp kicks off at Orchard Hotel Singapore

By TTG Asia

August 1, 2018

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Orchard Hotel Singapore is undergoing a major asset enhancement exercise, with the makeover involving the hotel’s 260 deluxe rooms, ballroom, lobby, Orchard Café and Intermezzo Bar.

CDL Hospitality Trusts, said the enhancements are part of efforts to increase competitiveness and position the property in Singapore’s recovering hotel sector.

A rendering of how the lobby will look like after the makeover

Orchard Hotel commenced the makeover of Orchard Café on July 23 while refurbishment of its ground floor lobby will start on August 20. Both areas are expected to complete by September and October respectively.

Rooms in its Orchard Wing, along with ballroom and meeting spaces, will be enhanced progressively from 4Q2018 to around 1Q2019.

To minimise disruption, during the restaurant closure, breakfast will be served at La Terrasse on level two. Other dining outlets remain open as usual.

In December 2017, the hotel’s Hua Ting Chinese Restaurant unveiled a major refurbishment boasting brightly lit interiors and more private rooms, with the largest being the Chairman’s Room, featuring a 20-seat table.

Hyatt realises NH bride has run away with Minor

By TTG Asia

July 31, 2018

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NH_Collection-Palazzo-Barocci — NH Collection's Venezia Palazzo Barocci in Venice, Italy

Hyatt Hotels has dropped its pursuit of NH Hotels after rival suitor Minor International revealed it controls 44 per cent of the Spanish group, according to news wire services.

“Based on the information we now have, we believe that the path to a successful tender offer by Hyatt under the terms expressed in our letter has narrowed to a point of being impractical,” Hyatt’s president and CEO Mark Hoplamazian said in the letter dated July 29 to the Spanish stock exchange by NH. Hyatt was angling for a cash bid of 100 per cent of NH, which operates more than 370 hotels worldwide.

NH Collection’s Venezia Palazzo Barocci in Venice, Italy

Minor made an offer in June for all of NH. It already owns 29.8 per cent, with agreements in place to buy Chinese conglomerate HNA’s 8.4 per cent holding and Oceanwood Capital Management’s 5.7 per cent stakes.

NH said Minor’s offer, approved by Spanish and Portuguese competition watchdogs, undervalued the company. Hyatt wrote to NH last week saying it was interested in acquiring it, saying this would “powerfully shape the European hotel landscape”.

Dillip Rajakarier, Minor’s COO, gave a neat retort, telling Bloomberg: “Hyatt has entered the church and the bride has already left.”

Minor’s offer for the portion of NH Hotel it didn’t own was valued at US$1.92 billion) in early June, when the plans were first announced, according to Bloomberg.

Hyatt reiterated in the letter on July 29 that it believed Minor’s bid undervalued the company. If NH Hotel “wishes to open a dialogue with Hyatt to pursue other potential paths to unlock value for NH shareholders, we stand ready to do so,” it said.

TTG’s Michael Chow retires, Pierre Quek steps into new role

By TTG Asia

July 31, 2018

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ttg-michael-chow-pierre-quek — Chow (left) and Quek

Michael Chow is stepping into an advisory role as publisher emeritus following his retirement after 30 years with TTG Asia Media.

While Chow’s position will not be replaced, the company has appointed Pierre Quek publisher of its TTG Asia Publishing division.

The appointments are effective tomorrow. Based in Singapore, Quek leads the group’s team of business managers overseeing advertising sales across its portfolio of integrated publication platforms including print, digital, in addition to new formats such as video solutions and social tech introduced in recent months.

The division has also re-structured its business development team by industry and geography verticals to better serve clients and the marketplace.

Quek works alongside Hong Kong-based Chimmy Tsui, who continues to drive the group’s efforts in the Greater China market as publisher of the group’s Chinese titles, namely TTG China and TTG-BTmice China.

The company’s roots are in TTG Asia Publishing, established in 1974 with the launch of the flagship title, TTG Asia. It now publishes other leading travel industry publications, including TTGmice, TTGassociations, TTG Asia Luxury, TTG India TTG China, TTG-BTmice China and TTG Show Dailies, led by an award-winning team of editors and the largest network of travel trade reporters in the region.

“Since its inception in 1974, TTG Travel Trade Publishing has evolved alongside the ever-changing and often challenging travel and media landscape. Michael’s business acumen, tenacity and passion for his work and clients over the last 30 years were instrumental in building the group to the leadership position it enjoys today.

“We are excited about our future prospects and believe that the present team will build upon Michael’s achievements,” said Darren Ng, managing director of TTG Asia Media.

The other three divisions of TTG Asia Media are TTG Maps & Guides Publishing, TTG Events and TTG Global Commerce.

MATTA rolls out digital payment, fintech workshops for agents

By S Puvaneswary

July 31, 2018

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The Malaysian Association of Tour and Travel Agents (MATTA) is conducting nationwide workshops on digital payment solutions and financial technologies to help members to stay competitive and penetrate further markets such as China, India and South-east Asia.

The association has engaged payment solution providers such as MPay (ManagePay), WeChat Pay and AliPay to talk to members in half- or full-day workshops, said secretary-general, Nigel Wong.

The association is hoping to keep members abreast with digital payment solutions

Wong explained: “Fintech and digital payment solutions can help users save money and lower their operational costs, as well as open up new opportunities for B2B and B2C businesses in emerging markets. For example MoneyMatch is a local Fintech company providing money transfer/exchange services that are helping agents save on international transactions. We want to help members to stay competitive and keep abreast with the times.”

Intent on continuing the educational process, the association is on the lookout for new technology providers to participate in future workshops.

For agents in the country, such education is key to catering to the growing number of clients opting for new payment modes.

Raaj Navaratnaa, general manager, New Asia Holidays Tours & Travel, said: “MATTA is going in the right direction of digital economy as there is still a section of industry players from yesteryears who are not yet into new technologies.

“About 30 to 50 per cent of FIT bookings I receive are made through Payment Gateway, PayPal and ePay. This percentage is growing. We cannot continue to do business without providing convenience to clients with the touch of a button.”

Tencent eyes investment in Indian budget hotel chain Oyo

By TTG Asia

July 31, 2018

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Oyo Rooms has presence in Malaysia, India, Nepal and recently began operations in China; pictured, Oyo Flagship 589 Dwarka

China’s Internet giant and owner of WeChat, Tencent, is in talks to lead a funding round in Indian budget hotel chain, Oyo Rooms, the Times of India reports.

According to the report, the financing round could value Oyo Rooms at over US$2 billion – more than double its previous valuation of US$850 million from a previous investment by Softbank through its Vision Fund.

If this goes through, Tencent would be the first company other than Softbank to lead a funding round in the Indian chain since 2015.

Quoting a source close to the development, Times of India reported that China accounts for 90 per cent of Oyo Rooms’ revenue originating from beyond India. Since entering China eight months ago, Oyo Rooms has grown its inventory in the country to over 11,000 hotel rooms spanning 26 cities, the report stated.

Accor to add latest purchase 21c Museum Hotels to MGallery collection

Sri Lanka bolsters upcoming lean season with discounts, promotions to Asian markets

Zen Rooms secures US$15mn funding from South Korea’s Yanolja

Malaysia’s new tourism minister backs tax; hotel groups to appeal

Asia DMC ploughs through business declines in Myanmar

Major revamp kicks off at Orchard Hotel Singapore

Hyatt realises NH bride has run away with Minor

TTG’s Michael Chow retires, Pierre Quek steps into new role

MATTA rolls out digital payment, fintech workshops for agents

Tencent eyes investment in Indian budget hotel chain Oyo

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