NORWEGIAN Cruise Line Holdings (NCL) is expanding quickly into Asia with the opening of its Singapore and Tokyo offices this month to support the continuing penetration of its three brands – Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises into the region.

It first opened its Asian head office in Sydney in November 2015, followed by offices in Hong Kong, Shanghai and Beijing. It also has plans to enter Mumbai and Delhi.

Even though they are late to market, NCL’s senior vice president and managing director for Asia-Pacific, Steve Odell, said they are looking to quickly expand their trade distribution channels.

“While making sure to protect our past relationships with big partners Jetour and Miramar Travel, we would also grow our distribution by expanding the number of partners,” he explained, adding that a call centre has recently been established in Hong Kong to support the travel trade.

He continued: “In 2016, events and trade initiatives like educational seminars and training are planned. This ranges from classroom training to familiarisation trips. A 40 pax fam tour to Hawaii will set off this week and travel agents from Japan, Taiwan, South Korea and Hong Kong are invited.”

The group had also announced the NCL Joy late last year, a purpose-built cruise liner for the Chinese market that will launch by 2Q2017 from its homeport in Shanghai. The new ship will be the second of NCL’s Breakaway Plus class ships.

Other plans include Regent Seven Seas Cruises having WiFi available onboard its vessels in April, and the inaugural launch of the 56,000-tonne Seven Seas Explorer which features the largest suite rooms available at sea.

The Sheraton Adana Hotel, part of Starwood’s portfolio

STARWOOD Hotels & Resorts Worldwide has tentatively ended the tussle between Marriott International and a consortium led by Anbang Insurance Group for ownership of the international hospitality chain, with Starwood yesterday agreeing to a new deal with Marriott under amended merger terms.

Under the new agreement, Starwood shareholders will receive US$21 in cash and 0.8 shares of Marriott’s Class A common stock for each share of Starwood’s common stock, valuing Starwood at approximately US$13.6 billion or US$79.53 per share, consisting of US$10 billion of Marriott stock, based on the closing price of US$73.16 on March 18, and US$3.6 billion of cash, based on approximately 170 million outstanding Starwood shares. This excludes Starwood’s timeshare business.

Starwood shareholders will own approximately 34 per cent of the combined company’s common stock after completion of the merger, based on current shares outstanding.

In addition, Starwood stockholders are expected to receive separate consideration in the form of Interval Leisure Group (ILG) common stock from the spin-off of Starwood’s timeshare business and subsequent merger with ILG, currently valued at US$5.83 per Starwood share, based on ILG’s share price as of market close on March 18.

Commenting on the renegotiated deal, Bruce Duncan, chairman of the board of directors of Starwood, said: “We are pleased that Marriott has recognised the value that Starwood brings to this merger and enhanced the consideration being paid to Starwood shareholders.”

The transaction, which will result in the world’s largest hospitality chain with 1.1 million rooms spread throughout 5,500 properties, is still subject to Marriott and Starwood stockholder approvals, completion of Starwood’s planned disposition of its timeshare business, obtaining remaining regulatory approvals and the satisfaction of other customary closing conditions.

According to a joint statement released by Marriott and Starwood, some regulatory consents have already been completed, such as pre-merger antitrust reviews in the US and Canada.

“After five months of extensive due diligence and joint integration planning with Starwood, including a careful analysis of the brand architecture and future development prospects, we are even more excited about the power of the combined companies and the upside growth opportunities,” said Arne Sorenson, president and CEO, Marriott International.

“We are also more confident of achieving our updated target of US$250 million of cost synergies. With a higher cash component in the purchase price, we have improved the transaction’s financial structure as well.”

Assuming receipt of the necessary approvals, the transaction is expected to close by mid-2016. Termination fees payable by Starwood has also been increased to US$450 million from US$400 million. In circumstances in which the break-up fee is payable, Starwood would also be required to reimburse Marriott for up to US$18 million of actual costs incurred by Marriott in connection with the financing of the transaction.

But analysts Baird Equity Research expects the Anbang-led group to remain aggressive and return with a higher all-cash counteroffer. “Overall, we believe Marriott will remain disciplined, and we continue to expect that the company will not engage in a protracted bidding war for Starwood,” it added in a statement.

“Additionally, we believe the US$450 million termination fees makes Marriott much more indifferent between acquiring Starwood and walking away if the Anbang consortium counters with a superior proposal.”

Starwood had last week considered a rival bid made by a group led by China’s Anbang along with its partners Primavera Capital Group and J.C. Flowers & Co., calling the estimated US$13 billion offer a “superior proposal” to Marriott’s initial one made in November 2015.

THE Datai Langkawi is introducing a new package – comprising a hotel stay, guided nature walks, use of equipment and discounts – exclusively for guests from ASEAN member countries.

The Datai ASEAN Retreat package features a stay in a Canopy Deluxe room that boast views of the rainforest plus guided morning or evening nature walks led by nature guide Irshad Mobarak.

The package also includes daily breakfast, complimentary use of non-motorised water sports equipment, a 15 per cent discount on non-package spa treatments at the newly relaunched Datai Spa, a 10 per cent discount on F&B as well as complimentary use of the mini bar.

Prices start from S$328 (US$234) per night in the Canopy Deluxe room and is valid from April 1 to July 5 and September 1 to December 23.

The package is exclusive to residents of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

THE 50-villa Sudamala Komodo Villas & Dive Resort will be the first locally owned and operated luxury resort on Indonesia’s Sebayur Island when it opens in 2017.

Located on the edge of the Komodo National Park in East Nusa Tenggara, Sebayur Island is a prime jumping off point to diving sites in and around the UNESCO Heritage Site.

“We expect around 80 per cent of our guests will be divers,” said Sudamala’s resorts director, Emily Subrata.

“We are talking about very pristine and protected dive sites that offer sightings of marine life such as sea turtles, manta rays and sharks. We have established our dive centres at Sanur and Lombok and this will be the extension of that as well as the jewel in our crown,” added Subrata.

Sebayur Island, which is about 30 minutes by boat from the nearest domestic airport of Labuan Bajo, is still remote, with the biggest resort on the same island having only about 25 rooms.

The new property will feature owner Sudamala group’s signature touches of art and craftsmanship highlighted in its other two properties, the Sudamala Suites & Villas, Sanur, Bali as well as the Sudamala Suites & Villas, Senggigi, Lombok.

MEMBERS of travel loyalty programmes will have an improved redemption experience, increased loyalty and will spend more if presented with a greater variety of reward options, according to research by loyalty solutions provider Collinson Latitude.

The survey of 2,250 airline and hotel loyalty programme members across the US, UK, Middle East and Asia showed that 77 per cent of members who redeemed on non-core rewards inventory continued spending with the brand, while a smaller 71 per cent of members who redeemed on core inventory (flights, rooms etc.) carried on doing so.

“When the breadth of rewards is expanded beyond the core product offerings of flights and hotel stays, we see that member loyalty and spending increases,” said Guy Deslandes, e-commerce sales director, Collinson Latitude.

The availability of a broader choice of rewards is also a key factor when choosing which programme to join.

For 61 per cent of survey respondents, more choice of rewards is specifically sought after, while 71 per cent of respondents indicated that the value of loyalty programmes are diminished if offered a limited range of rewards.

Additionally, almost half (42 per cent) believe that programmes offering only core inventory rewards are dated and old-fashioned.

The study further showed that if members enjoyed their redemption experience, it could turn them into brand advocates with 40 per cent of respondents indicating they would tell friends and family about a programme following a positive redemption experience, while 33 per cent would actively encourage them to join up.

The W Hong Kong, part of Starwood’s portfolio

CALLING the Anbang consortium’s bid for it a “superior proposal”, Starwood Hotels and Resorts’ board of directors has informed Marriott International that it intends to terminate their merger agreement, giving Marriott until 23.59 ET on March 28 to review Anbang’s proposal and negotiate revisions to the existing agreement.

Marriott is under a lot of pressure, with the Anbang group increasing its bid from US$76 to US$78 per share, even prior to Starwood’s decision to choose Anbang’s offer over Marriott’s. Anbang’s initial bid of US$76 per share had already carried a premium over Marriott’s offer.

In a statement last Friday, Marriott said they were “in the process of reviewing the Anbang consortium’s proposal and is carefully considering its alternatives”, adding that they still believed the merger is the best course of action for both itself and Starwood.

Experts keeping a close watch on the developments said however, that an Anbang-Starwood deal might actually be preferable.

Starwood will owe Marriott US$400 million in termination fees if the deal indeed falls apart.