SANYA Huayu Tourism, a mainland Chinese conglomerate with hotel, retail and property assets, is suing InterContinental Hotels Group (IHG) for RMB 200 million (US$31.8 million) in damages, over claims that the hotel operator mismanaged its property on Hainan Island.

Huayu alleges that IHG’s China subsidiary, InterContinental Holiday China, progressively racked up more than RMB 200 million in losses after assuming management of the Sanya Huayu Crowne Plaza Hotel in 2005, forcing the hotel owner to suspend the contract halfway into the 12-year term.

According to Li Tao, head of Hotel Business at Huayu, InterContinental Holiday China “failed to provide professional hotel management services in accordance with the contract”. “The (IHG) management team fell far below Huayu’s expectations and its management of the hotel was a complete mess,” he added.

Huayu also accused InterContinental Holiday China of “a series of dishonest behaviors such as high-price procurements, intentionally concealing information, alteration of hotel RGI data, and deliberately causing damage and loss of large equipment” during its tenure.

In a report by the South China Morning Post, IHG was quoted as saying that it was unaware of any legal action by Huayu, and that the claims of mismanagement were unfounded.

“All accusations in Huayu’s so-called statement are completely groundless,” IHG said in a statement. “During the years of co-operation, every decision relating to operation and procurement was discussed by both Huayu and IHG. IHG has always strictly abided by the law and has been completely honest.”

Keith Barr, IHG’s CEO for Greater China, did not respond to attempts by TTG Asia e-Daily for an official comment from the hotel chain.

CENTARA Hotels & Resorts is pursuing an asset light expansion strategy as it looks to grow its domestic and overseas footprint following robust performance in 2011.

Last year, group-wide hotel revenues rose by 19.9 per cent year-on-year to 4.9 billion baht (US$159 million), driven by 18 per cent hike in RevPAR, 22 per cent increase in management revenues to 133 million baht, and 3.6 per cent growth in room inventory.

Centara will beef up its portfolio of 31 hotels through the addition of eleven management contracts in 2012. Focusing on four-star and value brands, Centara is poised to open six properties in Thailand this year, and five more overseas.

Two Centra value brand hotels will launch in Bangkok in the second and third quarters. Chris Bailey, SVP sales & marketing, Centara Hotels & Resorts said: “We are finding this is a popular concept and demand is good.”

The group’s four-star Centara and five-star Centara Grand concepts will be exported to the Maldives, Mauritius and Sri Lanka, capitalising on demand from stalwart source markets in Europe and Australia, and emerging Asian markets to a lesser extent.

Demand is particularly strong in the French market, and Centara is set to open a sales office in France later this year.

“By the keeping same product, Centara is able to manoeuvre guests between locations and maintain client loyalty. These new destinations share source markets with existing hotels, so Centara can utilise its current sales infrastructure,” said Bailey.

The additional inventory is expected to take 2012 management revenues to 180 million baht. Thirayuth Chirathivat, SVP project management, Centara Hotels & Resorts, has forecast 20 per cent growth in overall hotel revenue to 5.5 billion baht, driven by improved business at properties in Bangkok, Pattaya and Phuket.

Further ahead, Centara intends to boost its portfolio to 56 properties by end-2014, including market debuts in China and India in 2013.

Reporting by Timothy France

CHANGI Airport Group (CAG) has extended a five per cent across-the-board rebate on landing fees for all passenger airlines at Changi Airport in the new financial year, as part of its Changi Airport Growth Initiative (CAGi).

Other CAGi incentives remain in place to support existing airlines’ traffic growth at Changi Airport and the launch of services to new destinations, as well as to attract new airlines, CAG said in a statement.

Meanwhile, CAG will continue to work with airlines to drive traffic demand to their key markets through joint marketing activities targeting both trade partners as well as passengers.

Ongoing at the moment is a CAG-sponsored campaign with airlines and travel experts to boost travel demand for the new flights between Singapore and Chinese secondary cities such as Changsha and Zhengzhou.

MANDALA Airlines will restart flight operations next week, more than a year after suspending services due to financial difficulties.

Fresh from a fund injection by new shareholders – Saratoga Group and Tiger Airways, Mandala will fly to domestic and international destinations within a five-hour radius from Jakarta, using a fleet of brand-new Airbus A320 aircraft.

The carrier will kick-start its revival with the launch of 12-weekly Jakarta-Medan services on April 5, followed by twice-daily Jakarta-Kuala Lumpur flights on May 4. Tickets for both routes began selling yesterday.

To mark its relaunch, Mandala is offering airfares from Jakarta to Medan from 519,900 rupiah (US$56.50), and Jakarta to Kuala Lumpur from 329,900 rupiah – one-way, all-inclusive with no fuel surcharge.

LUFTHANSA has withdrawn its thrice-weekly Frankfurt-Kolkata services, effective March 25, citing an unprofitable route that operated five times weekly at its peak.

Only 30 per cent of Lufthansa’s Kolkata-Frankfurt business-class seats were sold on average, compared to 70 per cent on its New Delhi-Frankfurt and Mumbai-Frankfurt routes.

Increasing competition from Emirates and Qatar Airways on Kolkata-Europe connections via the Middle East may have also contributed to the decision.

Sanjay Kothari, managing director, Just Holidays Kolkata said: “I am disappointed with the withdrawal of Lufthansa flights, as a direct flight to Europe is always better for our outbound group movements. We hope other European carriers will fill the gap soon.”

Debjit Dutta, chairman, Association of Domestic Tour Operators of India West Bengal and North East Chapter said: “We expect inbound numbers to grow as the destinations and products in Kolkata and its neighbourhood are drawing the attention of international tourists. Airlines are bound to come when there is demand from passengers.”

Meanwhile, Netaji Subhash Chandra Bose International Airport in Kolkata has postponed the opening of its new third terminal from February to September. The 195,000m² facility will boost handling capacity to 20 million passengers a year, up from four million currently.

SCOOT has selected Tianjin as its first destination in China, with four-weekly services from Singapore scheduled to begin in August.

Flights to two other secondary Chinese cities will be introduced before end-2012, but Beijing is not on the cards, according to a report by Channel NewsAsia.

Ticket sales to Tianjin are expected to start in the following weeks.

The medium- and longhaul low-cost carrier unveiled Australia’s Gold Coast as its second destination in February, having chosen Sydney as its first port of call.