Singapore’s sovereign wealth fund GIC has partnered The Indian Hotels Company (IHCL), South Asia’s largest hospitality company, to create an investment platform to the tune of Rs4,000 crores (US$600 million) over a period of three years.
The investment platform will be used to acquire fully operational hotels in the luxury, upper upscale and upscale segments in India, looking at potential assets primarily in key lodging markets. These will also include distressed or underperforming hotels that can be turned around.
GIC’s Kishore Gotety (left) with IHCL’s Puneet Chhatwal
Through the partnership, IHCL expects to be able to pursue acquisitions in an asset light format, with the equity contribution from IHCL at 30 per cent and the balance 70 per cent contributed by GIC.
Each acquisition is intended to be in a separate SPV with its own funding.
The hotels acquired will be managed by IHCL under its various brands.
Puneet Chhatwal, managing director and CEO, IHCL, said: “This collaboration is in line with Aspiration 2022 and our vision to scale up, and create greater enterprise value. Through this platform, we expect to acquire strategic and marquee assets that need new ownership, branding and positioning.”
Kok Sun Lee, chief investment officer of GIC Real Estate, said: “As a long-term investor, we are confident in the outlook of India’s hospitality sector. We look forward to working closely with established partners such as IHCL to pursue attractive opportunities and capture the sector’s growth potential.”
GIC's Kishore Gotety (left) with IHCL's Puneet Chhatwal
Singapore’s sovereign wealth fund GIC has partnered The Indian Hotels Company (IHCL), South Asia’s largest hospitality company, to create an investment platform to the tune of Rs4,000 crores (US$600 million) over a period of three years.
The investment platform will be used to acquire fully operational hotels in the luxury, upper upscale and upscale segments in India, looking at potential assets primarily in key lodging markets. These will also include distressed or underperforming hotels that can be turned around.
GIC’s Kishore Gotety (left) with IHCL’s Puneet Chhatwal
Through the partnership, IHCL expects to be able to pursue acquisitions in an asset light format, with the equity contribution from IHCL at 30 per cent and the balance 70 per cent contributed by GIC.
Each acquisition is intended to be in a separate SPV with its own funding.
The hotels acquired will be managed by IHCL under its various brands.
Puneet Chhatwal, managing director and CEO, IHCL, said: “This collaboration is in line with Aspiration 2022 and our vision to scale up, and create greater enterprise value. Through this platform, we expect to acquire strategic and marquee assets that need new ownership, branding and positioning.”
Kok Sun Lee, chief investment officer of GIC Real Estate, said: “As a long-term investor, we are confident in the outlook of India’s hospitality sector. We look forward to working closely with established partners such as IHCL to pursue attractive opportunities and capture the sector’s growth potential.”
A Singaporean company is building a space-themed resort in Phuket worth US$40 million, recognising the continued trajectory of tourism growth in the destination but also the lack of new attractions there.
The project – One Pioneer Park and Resort – is owned and created by Singapore-based One Pioneer, which has identified the tourism and entertainment industries as its primary interest.
One Pioneer Park and Resort
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Janette Lee, founder and CEO, said the project is being constructed on Wichit Songkram Road, scheduled for opening in 2020.
Once completed, it will comprise a 150-room hotel in a space-themed complex featuring visuals of astronauts, an indoor observatory and other style elements that invoke being in outer space.
“Tourism business in Thailand and in Phuket will continue to grow but there is still a lack of new attractions. Our vision is to (bring to life) the dreams of mankind for an experience of space on earth. Our target markets will be both local and international tourists,” Lee shared.
According to Lee, the company is seeking partners from Thailand or elsewhere to complete the project. She has had discussions with potential partners and investors during the South East Asia Hotel Investment Summit which took place in Bangkok last week.
Prior to entering the tourism business, Lee had sold her private education business and social enterprise in Singapore. She also used to work in the financial sector.
Besides the Thailand project, the company will soon kick off its second project in Southern China’s Guangxi province. The company already received permission for land use from the Chinese government.
“We are drafting master development plan for the new project. Also, I’m looking for a partner for the new project,” Lee said.
The heritage Orchard Hotel has completed its multimillion-dollar renovation, spanning 260 guest rooms, the lobby, two dining establishments and MICE facilities.
The 40-year-old property last week emerged from its makeover to boast a “360-degree guest experience”.
Orchard Hotel Singapore
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Hotel lobby
Conference foyer
Deluxe Queen room
The Orchard Cafe
This features hardware upgrades such as autonomous room service and chef associate robots; polished new dining spaces Hua Tin, Bar Intermezzo and The Orchard Cafe; a new contemporary clock tower; and 260 sleekly refurbished guest rooms each equipped with a Handy smartphone and six USB ports.
Jean-Philippe Jacopin, general manager, Orchard Hotel, revealed that the hotel is currently working with the Singapore University of Technology and Design to develop a luggage and linen delivery robot.
The hotel refresh comes at a timely juncture as Orchard Road gears up for a major transformation and traveller demands for accommodation are changing, remarked Jacopin.
He explained: “We are facing great competition around us, as there are many beautiful hotels here. We’re working very hard with the Singapore Tourism Board to revamp and enhance the old charm of this area.”
One way in which the revitalised hotel will pull its share of guests is through revamping the guest experience, using tools such as data and staff training to elevate customer satisfaction.
“Today, the hotel is more vibrant and elegant. The service of today is completely different from that of before. People now have no time, we have to be fast, and there’s no margin for error. Each customer is now a VIP who deserves my attention. For our reception, we are working a tool that scans guests passports without our staff having to touch it,” said Jacopin.
Forward bookings for APAC growing slower than for longhaul desitnations
Ctrip is calling out Chinese travel agents for marketing ordinary small group packages as customised travel, as it unveils a joint report on Chinese high-end outbound customised travel with Chinese Outbound Tourism Research Institute.
The Chinese OTA giant says many agencies who claim to be offering bespoke services don’t in fact allow customers to shape the kind of travel they want, “nor do they explore supply-side offerings in depth”.
2019 is the year when customised travel goes mainstream in the Chinese market, Ctrip says
“Players in the Chinese travel industry have fallen into the trap of jumping on the customised travel bandwagon, in the hope of standing out in a homogenised market,” the OTA remarked.
Ctrip is calling out the bandwagoners on the heels of rolling out its own “high-end” customised travel platform 3.0 in March, having noted key differences distinguishing high-end customised travel, plus new trends pointing to the development of more mature demand.
According to the OTA, “high-end customised travel only targets seasoned travellers who can afford and appreciate such services, pricing their products extremely high, using very scarce resources and providing a top-grade experience”.
In 2018, the amount of orders on Ctrip’s customised travel platform increased 180 per cent compared to the year before, with the growth rate of orders from second and third-tier cities surpassing first-tier cities.
Meanwhile, demands for customised travel from customers in first-tier cities has developed to become more in-depth.
Ctrip says 2019 can be seen to be as the year when high-end customised travel goes mainstream in China, and forecasts that the sector will grow by 200 per cent over the next three years.
The top 10 Chinese markets showing highest growth in demand for high-end customised travels are Shanghai, Beijing, Guangzhou, Shenzhen, Hangzhou, Chengdu, Hong Kong, Nanjing, Xi’an and Tianjin. Among them, Beijing, Shanghai and Guangzhou showed a three-digit growth rate, according to Ctrip.
Ctrip’s data shows that the average expenditure per person on a high-end customised travel package is RMB23,800 (US$3,410), compared to the average per person expenditure of RMB5,500 for standard packages.
Through its new high-end platform, Ctrip is targeting China’s high-net-worth-individuals (HNWIs). In 2018, there were some 1.7 million HNWIs in China.
Ctrip’s customised travel platform was officially launched in January 2016. Currently, there are more than 1,500 suppliers available on the platform with more than 6,000 customised travel consultants facilitating the service. Ctrip claims its platform sets the service standards and manages quality control through supplier screening and ratings.
HeyCars provides a range of chauffeured vehicles ranging from economy five-seaters, to luxury sedans, and even 53-seater coaches
Chinese mobility startup Heycars has been integrated into Amadeus Transfers, allowing Amadeus travel agents to search and book chauffeured vehicles.
Heycars is available in 83 countries, 214 cities and 240 airports worldwide.
HeyCars provides a range of chauffeured vehicles ranging from economy five-seaters, to luxury sedans, and even 53-seater coaches
The collaboration gives the startup exposure to Amadeus’ global travel agency network. End users can also make bookings in advance through Check My Trip, enabling them to skip queues at airports and hotels.
Peter Altmann, head of mobility and insurance, Amadeus, commented: “We have been working with Heycars since 2018… Their content has been integrated onto the Amadeus Transfers Platform which brings together airline, hotel, alternative lodging, rail, ground transport and in-destination content all in one place. Since February this year, Amadeus travel agencies can search and book professional car services at competitive rates through Heycars. We are set on expanding the Amadeus Transfers Platform to encompass all content, meaning more choice and personalisation for travellers.”
Founded in 2015 with headquarters in Guangzhou, Heycars delivers a variety in chauffeured vehicles, ranging from an economy five-seater to a luxury sedan, and even a 53-seater coach for larger groups. Heycars has a round-the-clock customer service line currently available in Chinese, English, French and Japanese.
Kai Zou, CEO and co-founder of Heycars, said: “Heycars facilitates the booking of chauffeur driven cars by the hour, ideal for foreigners who are unable to rent and drive in a country such as China.”
Heycars emerged from the Amadeus Next start-up programme. Amadeus Next has been up and running since 2015 and expanded into China in 2018.
Airbnb's Mike Orgill and GSV's Chatchai Payuhanaveechai
Airbnb and Thailand’s state-owned Government Savings Bank (GSB) have partnered to promote and empower Thai hospitality entrepreneurs, starting with local homestay owners.
The global leader in short-term rentals last year joined forces with the Thai government to onboard local homestay providers.
Airbnb’s Mike Orgill and GSV’s Chatchai Payuhanaveechai
Through the new partnership, GSB will help ensure better funding for hospitality entrepreneurs by providing flexible-interest rate loans and installment plans. Airbnb will work with GSB to help build capacity through hospitality and hosting training while connecting homestay owners to its network of over 500 million guests.
Chatchai Payuhanaveechai, GSB president and CEO, and Mike Orgill, Airbnb general manager for Southeast Asia, Hong Kong and Taiwan, jointly launched the partnership last week.
As part of the launch pilot last week, the partners committed to training GSB officials and 29 local homestay groups, including the participants of GSB’s Smart Homestay 2018 Competition, which recognised outstanding homestays in different provinces across Thailand.
The partnership will support local sustainable tourism while diversifying income distribution to communities across Thailand, in line with the Thai government’s initiative to drive local economic growth in secondary cities through tourism.
Specifically, both GSB and Airbnb pledged to expand business opportunities for Thai hospitality micro-entrepreneurs to help generate income for local communities.
GSB will provide a special loan package – providing grassroots customers with smaller, flexible loans – to hospitality micro-entrepreneurs who meet the bank’s requirements. Airbnb will conduct a series of train-the-trainer model capacity building sessions to equip GSB officials with the skills to navigate and utilise Airbnb’s global platform efficiently, and cascade this knowledge to homestay owners under GSB’s programmes.
At the launch, participants also took part in a series of sharing sessions about Thai tourism and its opportunities, as well as an Airbnb host onboarding and activation workshop for homestay owners.
The inaugural Travel Meet Asia is a week-long series of one-day country-focused B2B events held in Southeast Asia – Indonesia (Jakarta), Philippines (Manila) and Malaysia (Kuala Lumpur). Across the week, the action-packed event featured more than 100 buyers and exhibitors, average > 180+ confirmed meetings and 360+ networking time in every city.
Miss out on Travel Meet Asia 2019? Don’t forget to register at our next event at ITB Asia 2019!
Khiri Travel has announced several senior executive changes, with CEO Willem Niemeijer moving into the non-operational responsibility of chairman to focus full time on his current role as CEO of Yaana Ventures, Khiri’s parent company.
Effective July 1, Herman Hoven will become the new CEO of Khiri Travel. Hoven, who has been with Khiri for five years, is currently general manager of Khiri Travel Indonesia.
With Niemeijer (far left) devoting full time focus to being CEO of Yaana, new CEO Hoven (middle) will work closely with Willemsen to lead Khiri
Prior to his current role in Khiri, Hoven served as branch manager for Khiri Travel Indonesia 2014-15 in Yogyakarta, then as general manager from 2015 in Lombok, then Bali. Over his 18 years in the travel industry, Hoven has also served as a resident manager at a resort in Phuket, in the cruise services and hotel sector in The Netherlands and as a winter sports guide in Austria.
“Herman (Hoven) will bring new energy and a full-time focus to leading Khiri Travel,” Niemeijer said. “He has a proven track record in creating great travel experiences, is service-minded and a caring leader with strong cross-cultural skills.”
“Khiri management and staff will be empowered to take their passion for discovery to new heights, which will be evident in continuous innovation of product, service delivery and sustainability.”
Expressing excitement to lead Khiri teams around Asia, Hoven said: “The aim is to grow our reputation for innovation and authenticity in responsible tourism.”
Hoven will work closely with Keagan Willemsen, who will become CFO on July 1. Willemsen has been Khiri Travel’s international efficiency head for over a year. His experience include serving as a Peace Corps volunteer in eastern Ukraine, studying consumption and development patterns in emerging economies, and working for international development companies.
Richard Brouwer will continue as chief commercial officer of Khiri Travel, which was founded by Niemeijer in 1993 and now has over 200 staff in 17 offices in seven countries in Asia.
Meanwhile, founder Niemeijer will devote his energies full time to Yaana Ventures, where he and CFO Mark Remijan are developing new projects in the responsible tourism and hospitality sphere.
Apart from Khiri Travel, Yaana Ventures includes Cardamom Tented Camp in Cambodia; Anurak Lodge in southern Thailand; Ground Asia, which creates education travel programs for students; and Visama Lodges, a turn-key solution for luxury eco-lodges in remote parts of Asia.
“I’m very proud of what the team at Khiri Travel has achieved in the past 26 years, and confident that Herman, Richard and Keagan will continue to add many more years of growth and success to Khiri Travel’s triple-bottom line,” said Niemeijer. “These are exciting times for all of us.”
Kuoni Global Travel Services has been roped in to craft two special itineraries featuring select Mediterranean destinations for the Mediterranean Luxe campaign, a partnership of tourism boards and travel providers aimed at promoting the region’s best experiences to South-east Asia’s well-heeled travellers.
The two nine-day itineraries, created under Kuoni’s Small Group Travel speciality product line, offer an option that begins in Valencia, Spain and ends in Monaco, and another that starts in Nice, France and concludes in Zagreb, Croatia.
Croatian National Theatre in Zagreb
Some of the unique experiences promised include a self-drive from Venice, Italy to Rovinj, Croatia with support from Avis, a visit to the renowned Torres Vineyard in Barcelona, and bouillabaisse discovery at La Miramar, home of the traditional French fish stew.
Reto Kaufmann, vice president, South and Southeast Asia of Kuoni Global Travel Services, who unveiled the new products at a media event on Tuesday, ahead of their launch to trade buyers on May 29 during the week of ILTM Asia Pacific in Singapore, told TTG Asia: “These are very unique programmes that we have made possible by using our strong network in these featured destinations to get exclusive prices and access (to experiences travellers cannot buy on their own).”
A spokesperson with Mediterranean Luxe emphasised that the itineraries demonstrate experiential and off-the-beaten-path possibilities in the Mediterranean destinations.
While travellers can preview itinerary details and send their enquiries via Kuoni’s website, the tours can only be booked through Kuoni’s travel agent partners.
Now into its second year, Mediterranean Luxe has also welcomed Croatian National Tourist Board and Zagreb Tourist Board into its fold, joining other partners Atout France, Avis, Catalonia Tourism Board, The Leading Hotels of the World, Monaco Government Tourist Authority, Rail Europe, Spain Tourism Board and Turkish Airlines.
The spokesperson expects membership to grow, with the successful campaign likely to “attract more destinations, cruises and iconic brands of the Mediterranean to come onboard”.
As well, Mediterranean Luxe foresees the development of more itineraries for the Mediterranean region.
The spokesperson said: “We are very pleased to be partnering with Kuoni this year in creating these itineraries to show that a joint itinerary, consisting of coastal cities of Spain, France, Italy and Croatia, are as – or if not more – interesting and definitely profitable for travel agencies in the region. We hope to keep this momentum going, and to attract more operators and agencies to show their creativity, consult our website, and enquire with our partners to design newer and better itineraries.”
Meanwhile, partners of Mediterranean Luxe are optimistic about the business potential that South-east Asian luxury travellers bring. Singapore, Malaysia, Thailand, Vietnam, the Philippines and Indonesia have been identified as the six main markets of the region, with “untapped potential for luxury holidays”.
“Experienced travellers (there) have already been to capital cities and want to experience something different. This was the reason why the regional tourism offices of France, Monaco and Spain, with the region of Catalonia, started the first Mediterranean Luxe event last year. We expect that the two new itineraries will bring us greater visitor arrivals to the coastal cities,” added the spokesperson.
