The Sheraton Stamford Hotel

THE consortium led by Anbang Insurance Group has withdrawn its US$14 billion bid for Starwood Hotels & Resorts Worldwide, opening the way for Marriott International to merge with the international hotel chain to form the world’s largest hospitality company.

China’s Anbang, along with Primavera Capital Group and J.C. Flowers & Co., had only days earlier raised its offer for Starwood in a move to outbid rival Marriott.

According to a statement by Starwood released yesterday, Anbang pulled out of the bidding war “as a result of market considerations” and added that they do not intend to make another proposal.

Starwood’s shareholders are slated to vote on and approve the Marriott-Starwood merger as scheduled on April 8, under the terms agreed upon on March 21, which currently values Starwood at approximately US$13.3 billion or US$77.94 per share.

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.

Thomas Mangas, CEO of Starwood reaffirmed its commitment to Marriott, saying: “The existing merger agreement provides substantial value to our stockholders through significant upfront cash consideration and long-term upside potential from projected shared synergies, including US$250 million in cost synergies and significant revenue synergies, as well as ownership in one of the world’s most respected companies.”

Zhang Ling, chairman of HNA Tourism Group; Li Tie, chief executive of HNA Tourism Group; Bai Haibo, president of HNA Hospitality Group; and Federico Gonzalez Tejera, chief executive of NH Hotel Group during the unveiling of the joint venture

SPAIN’s NH Hotels is set to make its Asia debut through a joint venture with China’s HNA Hospitality Group to develop a chain of upper category properties in China, including the largest NH hotel yet on the island of Hainan.

The Beijing-based joint venture company, NH China, has created the new Nuo Han brand with the aim of running a chain of 120 to 150 hotels in China by 2020.

The first two hotels in the chain are scheduled to be opened by the second half of this year on the island of Hainan. The two properties are namely the NH Sanya Phoenix International Airport with 334 rooms, and the NH Haikou Meilan International Airport with 1,001 rooms, set to be the biggest NH-branded hotel in the world.

As well, the company hopes to increase its portfolio of management contracts to between 10 and 20 hotels by the end of the year.

“The establishment of the joint venture is a key milestone in the international development of HNA Hospitality Group together with NH Hotel Group to build a portfolio of brands in the midscale, upscale and luxury segments,” said HNA Hospitality president, Bai Haibo.

At present, NH operates nearly 400 hotels with some 60,000 rooms across 30 countries in Europe, the Americas and Africa.

HNA became NH’s biggest single shareholder in 2014 when it raised its stake in the company to 29.5 per cent.

City of Hallstatt, Austria

LESSER-KNOWN destinations in Europe are quickly gaining in popularity among Asia’s travellers, according to Agoda’s latest Travel Smart study released yesterday.

Compared to the traditionally popular cities of Paris and London, which still draws the largest crowd in terms of volume, bookings for smaller European cities are growing at a much faster rate.

UNESCO-listed Hallstatt in Austria was the fastest growing European destination, with more than twice as many bookings in 2015 than in 2014. This is followed by Germany’s Fussen – home to Neuschwanstein, a 19th-century castle. Meanwhile, the port city of Glasgow in Scotland ranked third.

The top 10 European destinations booked in 2015 and its percentage growth from 2014

“Our travellers from Asia are broadening their reach and we are seeing faster growth rates in the types of European destinations people visit after they’ve already been to the bigger cities,” said John Brown, CEO of Agoda.

The study, which looked at destinations with more than 1,000 bookings in 2015, compared millions of transactions made by Agoda travellers in Asia in 2014 and 2015.

The Cameron Fair mixed-use development

AVILLION Hotel Group, a renowned home-grown hotel chain in Malaysia, has signed a management agreement with Ascendvest to open Avillion serviced suites in Tanah Rata, Cameron Highlands in 2017, part of the latest mixed-use development in the district.

Avillion’s new property caters to both foreign and domestic travellers, and will include 100 serviced suites consisting of studio and two-bedroom units, and is part of the commercial and lifestyle development, Cameron Fair.

The development is a short five-minute walk to Tanah Rata’s main public transportation hub and offers a host of retail and F&B outlets, nature walks, parks and local markets.

Gricia Gan, head, hotels & spa, Avillion Hotel Group, said: “Avillion sees great opportunity (in Cameron Highlands) for better performance in terms of tourist arrivals – domestic and foreign travellers alike.”

“The collaboration is an injection of new lifestyle and additional activities for tourists and local residents, making the holiday destination more vibrant and fascinating.”

The Cameron Fair property will be the latest addition to Avillion’s current portfolio of hotels in Port Dickson, Melaka, Sabah and Bali.

“The group is looking forward to managing more hotels and apartment suites like Cameron Fair in Malaysia and Asia,” added Gan.

The Sol Beach House Benoa Bali

MELIA Hotels International is placing greater emphasis on its Sol Hotels & Resorts collection in Asia, with four to five properties slated to open this year in Indonesia and Vietnam.

Sharon Lee, vice president of sales – Asia-Pacific with Meliá Hotels International, told TTG Asia e-Daily that the Sol collection “is strong in Europe and is now looking to come in big into Asia”.

Alvaro Berton Rodriguez, operations manager with Sol Beach House Benoa Bali, a property that was rebranded from Meliá Benoa in March 2014, described the Sol collection as one that speaks to young couples, young families and even silver-haired travellers who are in search of lively, party vibes.

The bulk of Sol properties are currently in top tourist destinations like the Mediterranean, the Caribbean and the Canary Islands.

Sol Hotels & Resorts comprises four brands: Sol Hotels, a three-star family-friendly brand with larger rooms and kids facilities; Sol Katmandu, hotels with themed parks within; Sol Beach House, properties in stunning beachfront locations; and Sol House, lively, party central-type properties.

In Asia, the 132-room Sol House Kuta Bali has recently opened. It will soon be joined by Sol House Legian which is expected to open in June 2016, Sol Beach House Phu Quoc in end-2016 and Sol House Jimbaran in 2018.

“We have Meliá and Gran Meliá branded properties in Asia, and these properties are very business-style. Having Sol in this region gives the company strength in the leisure market,” explained Lee, adding that the popularity of the brand among European holidaymakers will help attract this segment of travellers to Asia.

“For Sol’s expansion in Asia, we are considering all resort destinations that will work best for the brands,” said Lee.

One of Kwan Kin Tours’ storefront

AFTER 36 years in the business, Hong Kong-based Kwan Kin Tours shuttered all seven of its branches last Thursday, leaving 1,500 clients and 52 staff stranded. Their agency licence is due to expire on April 1 and the debt-ridden company will not be able to renew it.

Travel trade members interviewed say they have long heard of Kwan Kin’s business woes and are not entirely surprised with its demise.

According to Jackie Wong See-sum, managing director, Hong Thai Travel Services, Kwan Kin had approached him a few years ago and asked if he’s interested to acquire the business.

He said: “It has changed ownership several times since its inception and frankly speaking, the agency business is not as profitable as before, given the competitive business environment.”

“Operators must respond to new trends such as OTAs. However, Kwan Kin’s products and pricing look exactly the same as always,” he added.

Giving his take on Kwan Kin’s downfall, Wing Wong, W Travel’s managing director, said: “The rumour about its financial problem has been around for awhile. Business has been tough though outbound traffic looks positive. Unlike other players who specialise, Kwan Kin’s products are too general without any niche.”

Simon Wo, general manager, Premium Holidays, concurs, saying: “It’s products were not innovative enough and the business model always stayed the same,” adding that mainland China tour operators have also taken a lot of business away from Hong Kong’s agents.

During a press conference held in Hong Kong last week, Freddy Yip, president of Hong Kong Travel Agent Owners Association, attributed Kwan Kin’s closure to the lack of cashflow, which it had been struggling with for a long time, and he was not surprised that the agency closed down.

Established in 1982, Kwan Kin averaged 150,000 travellers annually and sold tours to China as well as shorthaul group and FIT travel to China and South-east Asia.