Hilton is bringing the luxury brand Conrad Hotels & Resorts to Malaysia
Hilton has signed a management agreement with Permodalan Nasional Berhad (PNB) to open Conrad Kuala Lumpur in the heart of the Malaysian capital.
Slated for completion in 2021, the 544-room new-build hotel will mark the entry of Conrad Hotels & Resorts, Hilton’s global luxury brand, into Malaysia.
Hilton is bringing the luxury brand Conrad Hotels & Resorts to Malaysia; the branding on its Chicago property pictured
Located within the prime Golden Triangle district of Kuala Lumpur and one hour by car from Kuala Lumpur International Airport, the hotel will be part of a mixed-use development that also comprises an office tower.
The hotel will feature an all-day dining restaurant, two specialty restaurants, a bar, a business centre, spa, fitness centre, a swimming pool, and a 3,400m² events space.
In Malaysia, Hilton currently operates 11 properties across three key brands – Hilton Hotels & Resorts, DoubleTree by Hilton and Hilton Garden Inn. Over the next three to five years, the company is targeting to open nine hotels in its pipeline, including five hotels under the DoubleTree by Hilton brand, and the introduction of lifestyle brand Canopy by Hilton.
A rendering of the soon-to-open Citadines Walker North Sydney
The Ascott, CapitaLand’s wholly-owned lodging business unit, has acquired a S$192 million (US$139 million) freehold serviced residence in North Sydney through its global fund with Qatar Investment Authority (QIA).
To be named Citadines Walker North Sydney, the serviced residence is part of a 48-storey integrated development with also office and retail components, and which will be the tallest tower in North Sydney upon its completion in 2021.
A rendering of the soon-to-open Citadines Walker North Sydney
Ascott’s chief executive Kevin Goh said the latest acquisition is in line with the strategy of growing the company’s fund management portfolio through private equity funds, joint ventures and listed hospitality trusts.
“We believe in achieving scale in the business, and fund management is central to the active capital management strategy of Ascott as a dominant lodging real estate player,” he added.
Ascott also signed 13 other properties under franchise and management contracts across China, France, Indonesia, Kenya and Vietnam. With these newly secured properties, Ascott has achieved S$10 billion in asset value. Among them are four franchise contracts signed with Aegide Domitys which will mark Ascott’s foray into three new cities in France – Golfe-Juan, Tours and Roanne.
These 14 newly secured properties were announced on September 26 at the grand opening of La Clef Champs-Élysées Paris in France.
Onyx Hospitality Group has appointed Jenni Hartatik as the new general manager of Oriental Residence Bangkok.
Hartatik previously held the title of general manager at established hotels across China, including the Radisson Blu Forest Manor Shanghai Hongqiao and the Hilton Dali Resort & Spa. Since 2008, she has been based in China, and first took on a general manager role at the Maritim Hotel Changzhou in 2012.
Hartatik first started her hospitality career of over 20 years in reception and guest services at five-star resorts in Bali. In 1996, she moved into sales as an account manager for the ITT Sheraton Bali Nusa Dua’s Japanese market, then becoming director of sales at the Intercontinental Resort Bali in 2001 before moving to the InterContinental Phnom Penh in 2006.
Hotels in Malaysia seek greater regulation of short-term rentals
A2.7 per cent growth in tourist arrivals to 6.7 million in 1Q2019 failed to lift market sentiment for Malaysia’s hospitality sector. In lieu, the hotel industry saw a 1.5 per cent decline in national occupancy to 64.2 per cent, from 65.7 per cent in 1Q2018, revealed a recent report by the Malaysian Association of Hotels (MAH).
With 39 per cent of arrivals from neighbouring Singapore, it’s possible a good number of tourists may have stayed with friends and relatives, or gone home after midnight.
Hotels in Malaysia seek greater regulation of short-term rentals
However, what has hoteliers more concerned is the other likely contributing reason for the occupancy drop – the influx of unregulated short-term accommodation services such as Airbnb, said MAH’s CEO Yap Lip Seng.
In July, Airbnb reported it had more than 53,000 listings in Malaysia and that it welcomed some 3.3 million guests to the country between July 2018 and July 2019, a staggering 73 per cent year-on-year growth.
“The number revealed by Airbnb is a worrying 21 per cent of legitimate hotels,” said Yap, comparing the figure to the Tourism, Arts and Culture Ministry’s database of 250,000 legitimate hotel rooms nationwide.
But such unregulated short-term accommodation services, said Yap, are negatively affecting the Malaysian tourism industry where the average occupancy rate of hotels was only 56 per cent in 2018.
Yap said the association welcomes regulation of short-term accommodation services and also called for a study to look into where short-term rentals could work for the industry, such as in rural areas.
“Kuala Lumpur has an oversupply of rooms. Allowing short-term accommodation rental services in the city centre is not helping. The government needs to act fast – every minute, valuable tourism dollars are leaked out of the system through unregulated businesses such as Airbnb,” lamented Yap.
Uzaidi Udanis, president of Malaysia Tourism Council agreed. “(We urge) the government to make it a level playing field for hotels to compete. Hotel regulations should also be relooked to consider reducing the number of permits required,” he suggested.
Uzaidi, who is also president of the Malaysian Inbound Tourism Association, called for more collaboration between hotels and tour operators to develop value-added packages that include tours. This will enable hotels to earn better revenue, grow market share and compete more effectively against Airbnb which offers dry rooms and tours and activities, he said.
“It is a better strategy than dropping rates to compete,” he stated.
Malaysian Association of Hotel Owners’ executive director, Shaharuddin Saaid, thinks regulating the hotel sector could have an even bigger impact than the introduction of the tourism tax.
“We need to find ways to attract more tourists. We are now competing with emerging destinations like Vietnam and Cambodia, and established ones like Thailand and Singapore. We cannot keep selling the same products and attractions we did 20 years ago,” said Saaid.
Swire Hotels has appointed Simon McHendry as general manager of The Temple House in Chengdu.
The former general manager of East, Beijing, McHendry began his life in Asia over a decade ago in 2004 when he relocated from London to Hong Kong and then later to Beijing.
McHendry first joined Swire Hotels as executive assistant manager – sales & marketing at The Opposite House, then later in 2016 moved over to East, Beijing, taking on the role of general manager. He has since been a part of the Swire Hotels family for over four years.
The Indonesian government has decided that Komodo Island will remain open to visitors, after a study showed that the giant lizard is not under threat of extinction.
East Nusa Tenggara governor Viktor Laiskodat had earlier called on the Indonesian authorities to close the island to the public for one year to allow the dragons to regenerate and cut the risk of poaching their prey such as buffalo and wild boar.
Komodo Island will remain open to visitors, after a study showed that the giant lizard is not under threat of extinction
The Ministry of Environment and Forestry, which oversees the national parks in Indonesia including Komodo Island, has since formed a team to study the situation so as to determine the necessary steps to take.
Announcing the news in Jakarta yesterday, Siti Nurbaya Bakar, minister of environment and forestry, said: “(The number) of Komodo dragons on Komodo Island, based on observations that took place from 2002 to 2019, has been relatively stable. There is no threat of decline.”
However, the minister said that the management of the park would now be undertaken concurrently between the central and regional governments to ensure the sustainability of local livelihoods, the conservation of the dragons, as well as maintaining world-class tourism quality and investment.
The Sino-US trade war and a weaker yuan have put a damper on outbound travel from China, as Chinese travellers turn towards domestic travel or more value-for-money destinations in South-east Asia.
Guangdong Qiyouji International Travel Service’s marketing and partnership director, Anson Neo, cited the appreciating US dollar as one of the reasons why Chinese are skipping longhaul travel.
More Chinese travellers are opting to travel domestically or to less expensive destinations like the Philippines (Pictured: Chinese tourists on the small Virgin island of Panglao, Bohol in the Philippines)
“The overall economy has been affected by the trade war, bringing about a weaker Chinese currency. Clients believe that it will cost more to travel longhaul, but domestic travel or trips within Asia still remain affordable,” he shared with TTG Asia at the recent PATA Travel Mart in Nur-sultan, Kazakhstan.
Japan, Vietnam, the Philippines and Thailand remain popular destinations, said Neo, with the falling yuan affecting the luxury sector less as high-end travellers still willing to pay for longhaul trips.
An anonymous buyer from a China-based OTA, however, offers a more depressing outlook of the Chinese outbound market amid the volatile economy.
He elaborated: “I’ve heard that many people have cancelled their longhaul trips, or cut the frequency down to one or two (a year). Nearby protest-hit Hong Kong is no longer a safe destination, and many charter flights have ceased. As a result, travellers find it expensive to fly out, and are switching to domestic travel, which explains why self-drive products in China have surged 30 per cent.”
Although the uncertain economy has not led to an obvious decline in his business, the pace of growth has dropped, said Shane Wang, project manager of overseas destination marketing, Tongcheng-Elong Holdings.
And since groups cannot be sent to Hong Kong due to protests, Wang’s company sends groups to Macau instead, though as a mono destination now. Chinese OTAs such as Ctrip.com are also pushing a twinning of China and Macau, as they celebrate their respective milestone anniversaries this year.
Meanwhile, Thailand-based 500 Rai Resorts & Tours’ managing director Atirat Danphattharaworawat, has noted a drop in Chinese visitors to both Phuket and Krabi, as both destinations focus on drawing mass-market Chinese.
“Their economies have slowed down after the Chinese switched to less expensive destinations like the Philippines and Vietnam,” he added.
The Philippines and Malaysia, meanwhile, appear to reap the benefits of Chinese’ reduced appetite for longhaul travel.
For instance, China has now risen to the second biggest inbound market for the country, according to Monina Valdez, market specialist ASEAN and the Pacific division at the Philippines’ Tourism Promotions Board.
“There are no signs of this market slowing down. Even when Boracay was closed (a favourite destination for the Chinese), agents in the Philippines could still direct them to Palawan, Cebu and Bohol (as opposed to losing the business entirely),” added Valdez.
From January to July 2019, the Philippines welcomed around one million Chinese visitors, a 35.6 per cent spike year-on-year from 766,079 in 2018.
Olivia Ooi, senior vice president destination sales & marketing at Desaru Coast, in Johor, notices that the Malaysian integrated resort tends to draw the more affluent Chinese with the presence of international branded properties like Hard Rock and The Westin within its premises.
“We’re still a new destination, but the Chinese market has been growing for us year-on-year, alongside other markets like India and Hong Kong. To capture more of the Chinese market, we’ve been participating in roadshows, as well as conducting our own sales mission in China,” Ooi shared.
Anantara Hotels, Resorts & Spas has entered into its first-ever joint venture with Verita Healthcare Group to collaborate on a global network of integrated, property-based health centres, which will cater to the increasing demand for personalised innovative travel and wellness offerings that go beyond traditional fitness and spa services.
William Heinecke, chairman and founder of Minor International, owning company of Anantara Hotels, Resorts & Spas, said that the joint venture is “a global first” and timely “with the increasing demand for luxury tailored travel and wellness offerings, added to the fact that international wellness tourism on its own is expected to grow to US$1 trillion by 2022”.
With a handshake, Minor International’s William Heinecke (left) and Verita Healthcare Group’s Julian Andriesz seals the deal between both companies to collaborate on a global network of integrated, property-based health centres
The partnership with Singapore-based MNC Verita is “a vote of confidence for medical tourism industry”, said Thomas Meier, senior vice president of Anantara Hotels, Resorts & Spas, Asia.
Following the initial collaboration in Bangkok, joint projects will be launched in Thailand and throughout Asia-Pacific.
Slated to open in 1Q2020, the Verita health facility is currently in development at Anantara Riverside Bangkok Resort and represents Anantara’s first foray into healthcare. The 677m2 centre will feature dark IV infusion rooms with sleep-promoting light therapy, streamlined VIP suites, a meditative garden and private consultations pods.
Owing to aging populations and increasing levels of chronic diseases due to modern lifestyle habits, there has been a rise in the demand for more sophisticated, scientifically-based therapies and services focused on smart early prevention and life extension, said Anantara in a statement.
Verita Healthcare Group founder and CEO Julian Andriesz said that the Anantara-Verita joint venture “will allow people to take proactive, personalised steps towards extending their healthy lifespans, reversing the effects associated with aging, and enhancing their overall human performance”.
The health facility’s treatment menu will combine diagnostics and a digital health platform. Technology provides advanced health analytics and reports in real-time for immediate consultation and recommendation of personalised programmes. The latest innovations such as the recovery XR cryotherapy chamber and cardio-synchronised vascular physiotherapy specifically target issues such as biological age reduction and performance improvement.
The facility will also help clients in customising diet and fitness plans to suit their genetics, aid them in issues concerning their weight, sleep, libido or immune system, or offer them a fast detox or energy boost.
As it undergoes a thorough makeover under new mayor Francisco Domagoso over the last three months, the city of Manila is concurrently developing a tourism circuit that will link its major heritage sites in a bid to revive its lost glory.
Solfia Arborador, director, Manila Tourism and Cultural Affairs Bureau, said that the city, once the Philippines’ political and financial centre during the Spanish and American colonial period and in the early decades of its independence, has six political districts that will be classified into eight tourism hubs.
Manila is developing a tourism circuit that will link its major heritage sites to enhance its attractiveness as a tourist destination (Pictured: Manila Cathedral)
Initially, a tourism circuit will link the most popular attractions: the Spanish-era walled city of Intramuros to the National Museum, Rizal Park, Binondo Chinatown and other heritage areas, Arborador shared during a recent Travel Talk presentation organised by Rajah Travel at the San Beda College Alabang.
An underpass is also being reconstructed to improve access from other parts of Manila to the City Hall, National Museum and Binondo.
Arborador added that Escolta, Manila’s old commercial street, as well as the historic site of Quiapo, will be revived. Also set for a rejuvenation is the district of Santa Ana which has some protected heritage sites and Tondo which is home to many neglected historical monuments.
Though “Manila has been stagnant for so many years,” Arborador said, the country will ride the momentum set forth by mayor Domagoso in his commitment to develop tourism, which includes cleaning the city’s main thoroughfares and shopping districts of garbage and illegal peddlers.
Acknowledging that the plan entails hard work, Arborador stressed on the importance of involving the community, sharing that they have already started a seminar gathering all tourism stakeholders, from the leaders of different districts and the academe to transport system and tricycle drivers.
She highlighted that a challenge is to have a master plan for Manila, which has more than 3,000 historical sites and objects but “only a few have been identified”.
A master plan is needed to identify all the sites and structures that have to be restored and conserved, she said, adding that incentives have to be given to owners of heritage buildings and structures so the private sector will protect and not sell or demolish them.
A joint research by WTTC and JLL assessing the readiness of 50 global cities to deal with future anticipated growth showed that Manila remains ill-prepared.
WTTC’s regional director for Asia Pacific and the Middle East, Nigel David, said: “Manila has great opportunity to grow but has a lot of work to do to build for the future.”
Merlin Entertainments has entered into a partnership agreement with Global Zhongjun Cultural Tourism Development to build and operate a Legoland Resort in Sichuan Province in Western China.
Under the terms of the agreement, Global Zhongjun will fund the construction of Legoland Sichuan, as well as the required infrastructure and adjacent commercial developments, while Merlin will partner in the resort development and operate it under a management contract arrangement.
An artist’s impression of Legoland Sichuan Resort, slated to open by end 2023
Scheduled to open by end 2023, Legoland Sichuan will be located within the Tianfu New Area in the city of Meishan, approximately 60km south of Chengdu city centre.
The resort will open with two fully-themed Legoland Hotels, with an estimated capacity of 500 rooms. It will also have scope to incorporate further attractions in the future.
Merlin Entertainments’ CEO Nick Varney said: “There’s no doubt that China represents a great opportunity for strong global brands. Having been active in China for over a decade, Merlin has gained critical insights into Chinese consumers and built a broad portfolio of midway attractions within key cities.” He added that the opening of Legoland Sichuan presents “a significant milestone in the expansion of the Legoland estate in China”.
Global Zhongjun is a joint venture between development companies Zhongjun Beijing and The Chengdu Global Century – Exhibition & Travel Group (ETG). The majority shareholder ETG focuses on investing in and operating exhibition centres, tourism resorts, branded hotels, urban commercial complexes, and healthcare facilities throughout China.
Upon completion, Legoland Sichuan Resort will be the world’s largest Legoland, pending planning approvals, said ETG in a statement.
Legoland Sichuan will be Merlin’s eleventh Legoland Park, following the announcement of Legoland New York, scheduled for a 2020 opening, and Legoland Korea, slated to open in 2022. There are ongoing discussions regarding opening more Legoland Resorts in China, said the company.
