TTG Asia
Asia/Singapore Wednesday, 11th February 2026
Page 1918

What Marriott-Starwood merger means for hotel owners

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Ensuring that hotel owners will not lose out in this merger is the challenge that the new hotel giant will have to face, Tasos Kousloglou, EVP-Asset Management, Jones Lang LaSalle (JLL) Hotels & Hospitality Group, and President, Hospitality Asset Managers Association of Asia-Pacific, tells Raini Hamdi

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Tasos Kousloglou

Much has been made of the merger between Marriott and Starwood and how the new hotel behemoth will be received by guests, customers and the industry.

Yet overlooked in all this stir is one of the most important players in the industry – hotel owners.

As an asset manager who represents hotel owners with Marriott and Starwood branded properties in their portfolio, I have received and carefully read the letters sent by the CEOs of Marriott and Starwood to hotel owners that I represent highlighting the benefits of the “combined guest and customer base, loyalty program and powerful global platform” that are “expected to deliver more business to the hotels, increase efficiency, lower costs”, “enable increased investment in revenue-generating technology and innovation” and “lead to greater performance and profitability”.

The hotel owners are key stakeholders in this merger as they shoulder most of the property level risk. There is little doubt that the scale and breadth of the brands of the combined Marriott and Starwood company could create compelling advantages in marketing and distribution that may appeal to current and new hotel owners through eg. stronger negotiation position with OTA giants such as Expedia as well as economies of scale and potential re-branding opportunities leading to better performance.

However, there are also concerns due to overlapping of brand positioning, over concentration of brands and hotels in certain markets competing for guest loyalty, loyalty program benefits and the integration of the 54 million Marriott Rewards members with 21 million Starwood Preferred Guest members. Hotel owners may have to face competition from properties and brands of similar or stronger positioning under the same hotel group within the territorial restrictions agreed in their management agreements.

Hotel owners expect to see tangible benefits for the performance and profitability of their hotels as a result of the merger.

Will the combined Marriott-Starwood translate to stronger direct online bookings, repositioning opportunities, cost savings, lower reservation cost and premium pricing for their properties or will it result to additional competition and less attention to hotel owners?

The answer will largely depend on a successful integration plan that puts ownership interests at the same level with the interests of the newly merged company.

After all, the alignment of interests between owner and operator remains critical to the success of the hotels. A win-win relationship between owners and operators is always the best and augurs well for the future of the property.

Ensuring that hotel owners will not lose out in this merger is the challenge that the new hotel giant will have to face.

Aviation Festival Asia 2016 lands in Singapore

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THE 12th Aviation Festival Asia (AFA) will be taking place in Singapore on February 23 and 24 next year at the Suntec Singapore Convention & Exhibition Centre, bringing together an expected over 2,000 aviation experts to the annual event.

More than 200 industry leaders – including Arif Wibowo, president and CEO of Garuda Indonesia; Juha Järvinen, senior vice president and chief commercial officer of Finnair; and Barathan Pasupathi, CEO of Jetstar Asia Airways – are expected to speak on topics regarding the aviation and airport business, technological advancements and application, as well as on passenger experiences.

Airlines that have confirmed participation include names such as Etihad Airways, Delta Air Lines, AirAsia, Lufthansa, Air New Zealand, VietJet Air, Tigerair and Air France KLM.

Discounts are currently available for groups of three at a rate of S$1,255 (US$885) per person. Staff from airlines and airports also enjoy special rates starting at S$650 (US$458).

For more information, visit AFA’s website.

Go-getter Gaw gets BIG

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JUST months after it bought the iconic InterContinental Hong Kong for US$938 million, Gaw Capital Partners has acquired the 308-room BIG hotel in Singapore for S$203 million (US$143 million).

This is the first Singapore hotel acquisition for Gaw, a Hong Kong-based real estate private equity firm. The 8,800m² BIG hotel, originally an office building, was converted by ERC Unicampus and opened in 2013. Facilities include a restaurant, bar, gym, carpark and convenience store.

Mike Batchelor, managing director, JLL Hotels & Hospitality Group, Asia, which together with JLL Capital Markets Singapore brokered the deal, described the hotel as “an innovative limited service boutique hotel concept with an existing strong trading performance”.

Anthony Barr, regional director, JLL Capital Markets Singapore, said the firm was seeing increasing demand for Singapore properties from investors around the region, particularly those in Hong Kong.

“Singapore’s appeal as an investment destination remains strong with its stable political landscape and strong economic fundamentals,” he added.

Shanghai company buys Japanese ski resort

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SHANGHAI Yuyuan Tourist Mart has reportedly snapped up Hoshino Resorts Tomamu, a ski resort on Hokkaido operated by Hoshino Resorts for 18.3 billion yen (US$148.3 million).

The Chinese company is apparently looking to tap into the booming demand among Chinese consumers for year-round resort facilities in foreign destinations.

Hoshino Resorts will continue to operate the facility after the deal has been completed.

Shanghai Yuyuan Tourist Mart manages a number of large commercial facilities in and around Yuyuan Garden, one of the most famous attractions in Shanghai. An arm of the Fosun Group, it also has extensive interests in the F&B, real estate and pharmaceutical sectors.

Costa opens Tokyo office to tap ‘sleeping giant’

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COSTA Asia has opened a marketing office in Tokyo with plans to aggressively grow the cruising market in Japan.

Speaking to TTG Asia e-Daily at the launch reception in Tokyo on Monday, Buhdy Bok, president of Costa Group Asia, said he believes the Japanese market “could easily grow to be 10 times its current size.”

“We see Japan as a strategic market and we want to develop the cruising sector here to the point that it is seen as a mainstream vacation option,” he said. “The Japanese market is a sleeping giant.”

From summer 2016, Costa will introduce a casual family cruising concept to Japanese guests aboard the Costa Victoria. The recently refurbished vessel will take guests on six-day cruises between July and September, porting in Fukuoka, Maizuru, Kanazawa and Matsue in Japan and Pusan in South Korea.

“We believe it is all about finding the right combination of entertainment and facilities to unlock the potential of cruising in Japan,” said Bok.

“I do sense the uncertainty among the Japanese about cruising but we have chosen the itineraries with great care to avoid any anxiety among our passengers,” he added. “This means, for example, that the ships sail mostly at night, when passengers are asleep.”

Indonesia issues travel advisory to France

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indonesia-issues-travel-advisory-to-franceThe city of Paris.

INDONESIA has issued a travel advisory for all its citizens travelling or transiting in France following a series of terrorist attacks in Paris last Friday.

A press statement released by the country’s foreign ministry advises Indonesians to exercise caution in crowded city centres and to stay informed via French government websites and the news. Their citizens were also encouraged to carry with them identification cards, passports and emergency contact numbers.

Indonesian outbound operators said travellers are being cautious, but are not seeing significant cancellations yet. However, neither are they receiving new bookings to France for the year-end holiday season.

Groups departing this week with Golden Rama Tours went ahead despite the Eiffel Tower’s closure. Edhi Sutadharma, general manager of Golden Rama Tours said: “Travellers can still visit the area and see the tower from the outside. Going up the tower is optional in the packages anyway, so travellers can still enjoy the must-see attraction.”

“We have not seen any cancellations so far, but we are monitoring the situation,” he added.

Similarly, Paulus Sofyan Gazali, managing director of Tara Tour said he has not seen any cancellations to Europe although he projects that bookings will be slower.

For inbound traffic, the Bali Tourism Promotion Board (BPPD Bali) is projecting the attack on Paris will cause a significant dip in arrivals from France and that it will probably take three years to fully recover.

Ida Bagus Ngurah Wijaya, chairman of BPPD Bali said: “We see a possible decline in arrivals from France due to the Paris attacks. Using the impact of the 2005 London bombings as a benchmark, we may not see a full recovery until 2018.”

He expects a loss of roughly 20,000 arrivals next year and an estimated 6,000 in 2017.

Malaysia’s MICE awards motivate better event production: MyCEB chief

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THE Recognising Award Winning Results (rAWr) Awards, in its second edition this year, has fuelled competitiveness among local business event players and resulted in improved MICE standards, observed Malaysia Convention & Exhibition Bureau (MyCEB) chief, Zulkefli Hj Sharif.

“I’ve seen how the Awards has encouraged local players to raise the standards of their operations and events so as to win. Those who did not win the first round (in 2013 when rAWr was inaugurated) strove hard to make an impact this year,” Zulkefli remarked.

The Awards drew close to 60 submissions this year, and the presentation ceremony and gala dinner was held last Thurday evening at the Kuala Lumpur Convention Centre. It recognised several business events and specialists including Food and Hotel Malaysia by Malaysian Exhibition Services for Best Trade Exhibition (15,000m2 and below); ARCHIDEX by C.I.S Network for Best Trade Exhibition (15,001m2 and above); Winning Together Sales Kick-off Meeting by Pacific World for Best Incentive Programme; and Pearl Holiday (M) Travel & Tours for Destination Management Company Award For Excellence.

Anthony Wong, group managing director of AOS Convention & Events, was bestowed the Minister’s Award For Business Events Industry, an award that recognises an individual’s invaluable contribution to the Malaysian MICE industry through successful event bids and training for students and peers.

The rAWr Awards is jointly organised by MyCEB and the Malaysia Association of Convention and Exhibition Organisers and Suppliers (MACEOS).

MACEOS president, Vincent Tan, said the Awards functions well as a membership driver for the association, as it is only open to MACEOS members.

Cendyn opens Singapore office as part of global expansion

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CENDYN, which owns hospitality and event industry technology leaders Cendyn/ONE and Cendyn Arcaneo, is growing its global operations and has appointed London-based John Seaton to lead the charge as international managing director.

The company has opened a new office in Singapore to further establish the company’s strong presence in the Asia-Pacific region, and has expressed intentions to add eight more worldwide in 2016.

The Singapore office joins Cendyn’s current ones in Boca Raton, Florida and Atlanta, Georgia in the US, Toronto, Canada, and London, England.

“Launched over 19 years ago, Cendyn continues to experience exciting and elevated levels of growth, as our innovative, cloud-based SaaS platforms become critical to the success of the travel and hospitality and event planning industries around the world,” commented Cendyn CEO Charles Deyo in a press statement.

“The appointment of John Seaton, as well as the opening of our additional international offices in 2016, represent our much-demanded, growing presence in the global market.”

Seaton, who oversees the growth of Cendyn’s business within Europe, the Middle East, Africa and Asia-Pacific, has more than 20 years of experience in the global technology arena.

He most recently served as vice president of sales & strategic account management EMEA & Asia Pacific for eRevMax. He was also principal consultant with Rickyard Solutions, co-founder of Business Meetings International which was acquired by Cendyn, and vice president of Enterprise Connectivity – Global with eRevMax.

He had also held executive positions with Global Hotel Alliance, Hotel Booking Solutions and Pegasus Solutions.

Amway Taiwan opts for speedy thrills as reward for its top achievers

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SOME 150 members of Amway Taiwan’s Diamond Club will enjoy a bespoke programme on the final day of the Formula 1 Australian Grand Prix in Melbourne next March, in what will be the first major international incentive group to be hosted at the sporting event.

Speaking exclusively to TTGmice e-Weekly, the Australian Grand Prix Corporation’s business development manager, Darian Misko, said the concept had been a couple of years in the making.

“An enquiry was made a couple of years ago and at our event in 2015, we hosted a familiarisation for four people from Amway. They fell in love with it,” Misko said.

“We’ve had a number of groups that have booked MotoGP tickets, but from an F1 point of view, this is the first of its kind,” he added.

Working in partnership with Australian Tours Management, the Grand Prix Corporation has customised a programme for Amway Taiwan, which includes an exclusive Amway-branded suite in the Paddock Club, a behind-the-scenes tour of the event, pit lane walks, photo opportunities and co-branded merchandise.

Post 2016, the Grand Prix Corporation plans to actively pursue the incentive market.

“We’ve been predominantly focused on the domestic corporate crowd and get 25,000-plus corporates that attend across the four days, which is huge,” said Misko. “But we’ve got to look at new markets and new ways of generating interest and getting more people to the event.

“Amway have indicated they want to use it as a case study within the global network of Amway and we will then rely on our partners and hopefully they will have the confidence to promote it to their networks,” he said.

Myanmar takes steps to raise Naypyidaw’s profile among MICE players

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A WORKSHOP aimed at showcasing Naypyidaw as an ideal MICE destination and educating tourism players on ways to develop the destination’s full potential was conducted by the Myanmar Ministry of Hotels and Tourism last week.

Speaking at the Raising Awareness on MICE Development in Nay Pyi Taw Workshop at The Thingaha Hotel, Htay Aung, minister of hotels and tourism, remarked that the capital city has sufficient facilities and infrastructure to support business events.

Htay Aung pointed out that the ministry has been investing in the development of the local tourism industry and its efforts are supported by the public and private sectors.

The workshop featured a two-day/one-night trip that took “hundreds of participants from travel agencies, hotels, airline companies, tourism development firms and the media” to see local and foreign hotels as well as the Union Parliament building which is marketed as a new product in the city.

Describing the workshop as the ministry’s “first step” towards achieving its MICE ambitions, Htay Aung added that a website is being developed to provide event planners with a directory, available in 20 languages. Users will be able to send enquiries directly to the city’s hotels and conference centres.

According to the ministry, Naypyidaw has about 53 hotels with 5,100 rooms, and most of these properties have facilities and amenities of international standards.

However, Hasitha Manthriratne, hotel operations manager of ParkRoyal Nay Pyi Taw, opined that for Naypyidaw to truly draw international MICE interest, it needed to develop “the liveliness of a city” and improve transportation services.