Tasos Kousloglou.

JONES Lang LaSalle (JLL) Hotels & Hospitality Group expects the Marriott-Starwood deal to herald more hotel chain consolidation in 2016, citing the increasing strength of OTAs and the emergence of disruptive companies such as Airbnb as key driving forces.

Tasos Kousloglou, executive vice president, Strategic Advisory & Asset Management, and president of Hospitality Asset Managers Association of Asia-Pacific, said: “Marriott’s announcement to acquire Starwood and create the largest hotel company could spur more M&As in the hotel industry and set a precedent for other groups to follow suit.”

Tony Ryan, hotel industry lawyer and soon-to-be managing director, Global Mergers & Acquisitions, said: “At JLL Hotels & Hospitality Group, we have identified local and international consolidation of hotel management companies as a key feature of the hotel landscape in 2016 and beyond. This development (Marriott-Starwood) confirms the intensity and magnitude of this potent trend.

“The hotel industry landscape has changed dramatically over the last few years, largely thanks to the arrival of powerful OTAs and sharing platforms such as Airbnb. The Marriott-Starwood deal responds to that trend by creating a truly global company with market-leading loyalty programmes and an eye-watering distribution platform across continents. Scale and growth are the drivers for this transaction so as to provide a compelling proposition to owners and guests and, at the same time, challenge the industry disruptors.”

Kousloglou pointed out that the hotel industry remained highly fragmented compared with other industries in the travel space such as OTAs, airlines or others such as technology that are normally dominated by fewer players.

“The merged hotel group dominates the upscale segment and gains a strong competitive advantage in marketing and distribution against other hotel companies. Its size also gives it a much stronger negotiation power with OTA giants such as Expedia. In addition, the increasing strength and consolidation of the OTAs, emergence of disruptive companies such as Airbnb and fewer opportunities for organic growth in certain hotel markets, are putting additional pressure on its competitors to consider inorganic growth in an effort to save costs, grow a pipeline of new hotels and loyalty customer base and attract talent.”

Kousloglou foresees that the scale and breadth of brands of the combined Marriott and Starwood company could prompt several other hotel groups such as Hilton, IHG, Accor, Hyatt and Fairmont Raffles joining forces either with each other, or with smaller operators to remain competitive.

IN a first-ever partnership with IT&CM Events, Bali Tourism Promotion Board is reaching out to Singapore MICE buyers through a targeted roadshow that takes place on 18 November 2015, in Singapore.

Through this partnership, the Bali Tourism Promotion Board aims to connect with some 30 Singapore buyers comprising of Association Executives, MICE intermediaries, corporate incentive travel, destination buyers and decision makers to promote Bali as the ideal meeting destination for MICE activities.

The roadshow will spotlight Bali’s high MICE appeal and facilities through detailed presentations. Bali Tourism Board and their partnering representatives will be on-hand to participate in focused business discussions with buyers on their requirements for holding their next business event in Bali.

Singapore-based buyers at the roadshow. Credit: TTG Asia

“Bali has hosted 168 international and domestic meetings, conferences, incentives and exhibitions, contributing to around 3.77 million foreign visitor arrivals in 2014; and approximately 3 million foreign visitor arrivals as of August 2015. The MICE industry in Bali is indeed very promising.

“Also, Bali has held some successful conferences and summits such as the notable United Nations Climate Change Conference and ASEAN Summit. The recent World Chinese Entrepreneur Congress in September 2015 has brought more than 3,000 delegates from around the world to Bali”, said Ida Bagus Ngurah Wijaya, Chairman of Bali Tourism Promotion Board.

Wijaya continued, “We are confident that IT&CM Events’ credibility and ability to deliver our targeted buyers from both the associations and greater MICE market via their extensive industry network will enable us to fulfil our objectives at this roadshow.”

THE first Shangri-La branded property in Saudi Arabia will be opening in the city of Jeddah in early 2018.

The Shangri-La, Jeddah, will be a 236-room hotel and 122-apartment serviced residences housed in a 65-storey mixed-use development on Jeddah Corniche Road.

Facilities include function areas totaling 2,118m², luxury spa and fitness areas, a swimming pool, children’s club and several lounges as well as four restaurants.

HK EXPRESS will be launching four flights weekly to Yangon and two flights weekly to Mandalay on February 17 and February 21 respectively next year.

For Yangon, flights depart from Hong Kong at 18.05 and will arrive at 20.05 on Wednesdays. On Mondays, Fridays and Sundays, it will depart at 16.25 and arrive at 18.25.

Return flights will leave Yangon at 20.50 on Wednesdays and land in Hong Kong at 01.45 the following day. Meanwhile, on Mondays, Fridays and Sundays, return flights depart from Yangon at 19.10 and will land in Hong Kong at 23.55.

For Mandalay, flights will depart from Hong Kong at 12.05 and arrive in Mandalay at 14.05 on Wednesdays and Sundays. Return flights will be scheduled on the same days, leaving Mandalay at 15.10 and landing in Hong Kong at 19.35.

Additionally, HK Express is offering a special inaugural single trip fare of HKD$180 (US$23) to be booked on or before November 19 this year for flights on February 17 and 21, 2016 to March 26, 2016.