TTG Asia
Asia/Singapore Wednesday, 14th January 2026
Page 2672

Hoteliers tip Singapore rates to rise further

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HOTELIERS in Singapore are confident that room rates will continue to rise, even with the latest Hotels.com index showing the destination already has the priciest accommodation in Asia-Pacific and a supply pipeline of more than 4,000 keys.

Speakers at this morning’s Hotel Investment Conference Asia Pacific (HICAP) UPDATE panel discussion on ‘Betting big on Singapore!’ projected rate hikes of between four per cent and eight per cent this year.

“There is still room for growth,” said Mohd K. Rafin, senior vice president, Park Hotel Group. “Singapore has reinvented itself and, if we can sustain that, plus the growth of regional traffic and further expansion by low-cost carriers, I think we can still get a good upside to the RevPAR.”

Asked if Singapore rates would eventually hit a ceiling, Tan Kim Seng, executive vice president, Meritus Hotels & Resorts, said: “I don’t think so. Singapore may be an expensive place to stay, visit and invest, but there is value in high-priced (investment), and if you need to come here and see your money grow (referring to increased wealth management in Singapore), you just have to pay the room rates.”

Paul Logan, InterContinental Hotels Group senior vice president development AMEA, said: “I would go along with the national projection of a four per cent increase in rates in the coming year, provided demand remains and supply growth is low.

“Singapore has a unique set of attractions – no other regional competitor has the range it has,” he added.

OCBC Investment Research last month projected “solid hotel room demand growth (for Singapore) at 6.4 per cent per annum, which would exceed overall room supply growth of 3.8 per cent per annum”.

The report added: “The hospitality landscape (in Singapore) continues to have positive developments with upcoming attractions and the opening of the International Cruise Terminal in 2Q12, which should boost the business of the integrated resorts and cruise operators.”

“The government has also just announced that it will inject S$905 million (US$718 million) into the Tourism Development Fund. Visitor arrivals should grow at 6.6 per cent per annum to reach the Singapore Tourism Board’s target of 17 million in 2015.”

Wyndham to grow newly-acquired brands in Asia

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WYNDHAM Hotel Group (WHG), which has acquired exclusive rights to franchise and manage Chatwal Hotels & Resorts’ Dream and Night boutique hotel brands, is keen to grow the brands in Asia.

The two boutique brands come on top of WHG’s license agreement with Planet Hollywood Resorts International to franchise the Planet Hollywood Hotels brand, and its acquisition of the Tryp Hotels brand from Sol Melia Hotels & Resorts—both of which will be pushed out in Asia, according to president and managing director Asia-Pacific, Ken Greene.

This brings the total number of brands WHG has in its portfolio to 15.

When asked why 11 brands were not enough, Greene, speaking to TTG Asia e-Daily during the Hotel Investment Conference Asia Pacific (HICAP) UPDATE in Singapore today, explained: “Each of our acquisitions plays a strategic role for us. Planet Hollywood, for example, is a unique destination-within-a-destination type of product, not unlike Hard Rock Hotels, and there is just one in Las Vegas, which has a couple of thousand rooms.”

“We’ve announced the first Planet Hollywood in Asia in Boao, Hainan (350 rooms) and are working on other deals.”

Greene added: “Dream and Night—again, we didn’t have the five-star and three- to four-star (respectively) boutique type of properties. Likewise, Tryp by Wyndham, which is a type of hotel brand that helps guests to experience the city in the best way possible through city centre location, use of technology and enhanced concierge services, etc…it will be an interesting brand for China.”

India will be a focus of expansion for Dream and Night, according to Greene. “We just got back in India with them (Chatwal Hotels’ Sant Singh and Vikram Chatwal), and our CEO Eric Danziger, CFO and head of HR were there as well to do a PR tour,” he said. There are four Dream hotels in operation—two in New York, and one each in Bangkok and Cochin.

Greene, meanwhile, has hit pay dirt with management agreements in Asia, from none three years ago to over 20 managed deals today under the Wyndham and Ramada brands. “In Thailand, for instance, we have executed six deals—four in Bangkok, all different tiers of Ramada, including the first Ramada Encore in Asia, a Days Hotel in Phuket and a Wyndham in Khao Lak,” he said.

WHG will also be opening two managed hotels in Singapore—a Ramada this December, and a Days Hotel soon after.

Largest ibis opens in Indonesia

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ACCOR has opened the largest ibis hotel in Asia-Pacific in Bandung, the capital of West Java province in Indonesia.

Located next to Bandung Supermal and the TransStudio indoor theme park, Ibis Bandung Trans Studio offers 606 rooms, 222 of which come equipped with connecting doors for families.

The hotel also features Oopen restaurant, which offers pasta and grill specialties in an open kitchen concept.

With new direct flights from Kuala Lumpur and Singapore to Bandung, ibis Bandung Trans Studio is targeting not only the domestic market, but also travellers from neighbouring countries.

The hotel’s general manager, Patrick Sibourg, said: “We are very confident in the market potential of ibis Bandung Trans Studio. With its strategic location directly adjacent to TransStudio theme park and with access to all parts of Bandung city, the hotel is sure to quickly become ‘the place to stay’ for visitors seeking out great value accommodation in Bandung.”

Ibis Bandung Trans Studio is celebrating its opening by offering a introductory rate of 298,000 rupiah (US$32.50) including breakfast until May 31.

Myanmar airfare increase a false alarm

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THE MYANMA Petroleum Products Enterprise has reversed its decision to sell aviation fuel to domestic airlines at market rate, following fervent lobbying from the local travel trade.

The switch would have seen domestic airfares on most routes rise by about 20 per cent from March 8, with fuel surcharges on some routes spiking by up to US$25 for foreign travellers and 18 kyat (US$3) for locals.

“After we were informed (of the surcharge increase) at short notice on February 28, we discussed the issue with private tourism bodies like the Myanmar Marketing Committee and Union of Myanmar Travel Association, and sent a letter to the ministry requesting it to reconsider the fuel surcharge increase,” said Ma Than Than Swe, tour manager at Diethelm Travel.

“In the future, if the fuel price is going to go up or down, they should inform us earlier, rather than giving us such short notice,” she added.

Yangon Airways and Air Bagan have offered to refund the fare difference to all customers who forked out extra for the increased fuel surcharge.

Swissôtel adds to wellness offerings

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FOLLOWING the launch of its Pürovel Spa & Sport brand last year, Swissôtel Hotels & Resorts has introduced a new activity-based wellness programme which focuses on encouraging healthy lifestyles among its guests.

To be implemented in stages over the course of the year, the Swissôtel Vitality Programme will introduce a whole range of regular activities that guests can engage in while in their rooms, the gym, or outdoors.

Examples include the option to set up gym equipment within the guestroom, outdoor jogging maps which mark out planned routes of various distances for different levels of fitness, and the addition of guided walks and jogging tours in each hotel’s weekly programme—sometimes led by the general manager.

Swissôtel’s breakfast, lunch, dinner and in-room service menus will also take on a healthier twist, offering a larger selection of healthy and light dishes, supplemented by fresh fruit, low-fat products and organic coffee.

The new wellness initiative is scheduled to kick off with a weeklong campaign starting March 21, 2012.

Korean Air to deploy A380 to Frankfurt

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KOREAN Air will introduce the Airbus A380 aircraft on its Seoul (Incheon)-Frankfurt route starting March 25.

Configured in a three-class layout with 407 seats – the lowest configuration of any A380 operator – the flag carrier’s A380s will feature 12 first-class Kosmo Suites and 301 economy-class seats on the first floor, 94 lie-flat Prestige Sleeper seats in Prestige (business) class on the upper deck, and facilities such as a Duty Free Showcase and three bars and lounges.

Meanwhile, Korean Air will also launch a daily connecting service between Seoul (Incheon) and Jeju Island from March 25, operated using a B737-800 aircraft with 149 seats.

The carrier currently operates five A380s to destinations such as New York, Los Angeles and Hong Kong. The introduction of the A380 on the Frankfurt route is expected to boost both business and leisure traffic from China, Japan and East Asia en route to Europe.

US hotel stock index reports healthy growth

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THE BAIRD/STR Hotel Stock Index rose 1.1 percent in February to end at 2,313, outperforming the MSCI REIT (RMZ), which reported a 1.4-percent decrease over the same period.

“The hotel industry’s performance held steady during the first part of the year,” said Randy Smith, chairman and co-founder of STR.

“The ever-changing economic landscape may keep some investors at bay, but we are hoping to see continued interest with the steady performance of the industry.”

David Loeb, senior hotel research analyst and managing director at Baird, said: “We downgraded our hotel sector rating to market-weight in mid-February, as investor expectations were high and stock valuations were full heading into fourth-quarter earnings.”

He added: “Managements’ 2012 guidance has been conservative and investor expectations for the year have been reset lower. Fundamentals are still strong, however, and we remain bullish on the longer-term lodging recovery.”

The companies that comprise the Baird/STR Hotel Stock Index include Hyatt Hotels Corporation, InterContinental Hotels Group, Marriott International, Starwood Hotels & Resorts Worldwide and Wyndham Worldwide among other international hotel chains.

Royal Brunei Airlines takes on a ’boutique’ hue

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ROYAL Brunei Airlines (RBA) is repositioning itself as a ‘boutique’ airline, having tided over a challenging period in the past couple of years.

“The whole industry went through challenging times and RBA is not immune to winds of the turbulence,” Dermot Mannion, deputy chairman, RBA told TTG Asia e-Daily in an exlusive interview.

“We have been restructuring our business in recent months, and are now refocused as a boutique airline with strong regional franchise and operating only to strategic longhaul destinations.”

In line with its revamped concept, Brunei’s flagship carrier will soon have its daily Dubai-London service linked via Bandar Seri Begawan to Melbourne, through the commencement of daily Melbourne flights.

“The daily and same-time (Melbourne) service through Brunei to the regional and longhaul networks will be an attractive product for Australia, the Middle East and London,” said Mannion, who hinted at plans to implement similar network extensions to destinations such as Manila, Singapore and Hong Kong.

Besides its new strategic longhaul product, Asian countries are also being targeted as key markets for RBA, which hopes to fly to Shanghai and expand its regional network over time.

Meanwhile, RBA has been undergoing a makeover that will see the carrier “rebranded, revitalised and refocused” with new customer service offerings based on Bruneian traditions, according to Mannion.

“Hospitality and tranquility attributes associated with Brunei traditions will be emphasised in our improved customer service,” he explained.

RBA also hopes to up the ante in the customer service stakes once it takes delivery of its first Boeing 787 Dreamliner in August next year.

“I am confident that as we migrate our longhaul product to the 787, we can offer a higher quality service to meet our passengers’ aspirations,” said Mannion.

Reporting by Jennifer Phang

Vietravel guns for growth with new products, offices

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VIETRAVEL is looking to raise its status as one of Vietnam’s leading inbound agencies to one of Asia’s top operators.

To achieve this, it will expand into four new markets this year with the opening of offices in France, Hong Kong, Malaysia and Singapore. The new offices will join Vietravel’s existing ones in the US, Thailand and Cambodia, and bring it closer to achieving its target of 15 international offices by 2015.

Vietravel has remained strong despite economic troubles, registering business growth of over 30 per cent in 2010 and 2011. It raked in more than VND2 trillion (US$96 million) in revenue last year.

“We are working hard to reach 500,000-600,000 visitors and achieve beyond VND5 trillion revenue in 2015,” said Tran Doan The Duy, deputy general director of Vietravel.

Besides targeting traditional markets in Asia such as Japan, the company is seeking customers from places such as Europe and China, and also intends to explore potential growth markets in Australia and Africa, explained Vietravel inbound director Phan Ho Hai.

As an example, it was in ITB Berlin last week to introduce new products for its 2012/2013 programme: a heritage trail from north to central Vietnam and a green travel tour, which brings travellers to unspoilt islands and beaches.

The former includes Ninh Binh—described as a ‘Halong Bay on land’ and whose caves are in the process of achieving UNESCO World Heritage status, Hue, and Binh Dinh—the old imperial city of the kingdom of Champa. The latter is a choice between one of three islands: Nha Trang, Con Dao and Phu Quoc.

The company also hopes to showcase its MICE expertise at the upcoming IT&CM China in Shanghai, as it proposes a four- to five-day teambuilding itinerary to corporates, featuring destinations such as Ho Chi Minh City and Da Lat. Its other products run the gamut from homestays to luxury.

“We realise that it will not be easy to get to where we want to be, but we are determined to invest and develop wherever necessary,” added Tran Doan The Duy.

To achieve this, Vietravel is strengthening its PR and advertising strategy, by organising fam trips for the media for instance, as well as staff development through recruitment drives and extensive training.

Additional reporting by Duncan Forgan

Best Western adds to Vietnam portfolio

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BEST Western International has signed a deal with local developer Cong Ty Co Phan Du Lich Hoa Anh Dao to open a new hotel in Vietnam’s Ba Ria-Vung Tau province.

The 200-room Oceanami Hotel & Resort in Vung Tau will join the Best Western hotel collection when it opens in third quarter 2013.

The property will offer a range of facilities including a sports centre, a tennis court, an entertainment centre, a swimming pool, a restaurant, a sea sports club as well as healthcare services.