COMPARED to the year before, the InterContinental Hotels Group’s (IHG) 2011 first quarter revenue increased 16 per cent to US$80 million. Operating profit increased 39 per cent to US$25 million, predominantly driven by RevPAR growth and a six per cent year-on-year increase in rooms.

Andrew Cosslett, chief executive of IHG, said: “We delivered a strong set of results. Global RevPAR grew 6.9 per cent, with 18.8 per cent growth in greater China.”

IHG’s Asia-Pacific RevPAR increased 9.9 per cent, including rate growth of 4.8 per cent. Excluding Japan (33 hotels), where the earthquake and resultant events negatively impacted March growth, RevPAR grew 13.6 per cent.

Greater China continues to be IHG’s strongest market, with RevPAR up 18.8 per cent, including rate growth of 9.9 per cent.

Cosslett added that IHG was confident about the outlook for the rest of the year.

“Demand for our brands continues to strengthen with both guests and hotel owners. This is driving our performance and reinforcing our industry-leading pipeline,” he said.

IHG signed 915 rooms (five hotels) in the first quarter, three of which were in Thailand, including an InterContinental resort on the West coast of Koh Samui and a Hotel Indigo on Phuket Naithon beach.

The group inked a further seven deals in April, including three in India and three in Indonesia.

Key openings for the quarter included the InterContinental Kuala Lumpur and Crowne Plaza West Hanoi, the first hotels opened under those brands in Malaysia and Vietnam respectively.

BUDGET longhaul carrier AirAsia X is awaiting landing rights in Osaka, Fukuoka and Nagoya, and has also set its sights on obtaining landing permissions in Istanbul, Dubai or Abu Dhabi.

AirAsia CEO, Tony Fernandes, told media during the launch of its year-long To Japan With Love campaign (TTG Asia e-Daily, May 11) that Japan remains a huge market despite the March 11 disaster.

“The potential between Japan and South-east Asian destinations is massive,” said Fernandes. “Once we have the green light for increased landing rights, AirAsia X has the potential to transform the business, cultural and economic connectivity between Japan and South-east Asia.”

“We’re expecting AirAsia Philippines to be flying more into Japan, and will announce routes in September,” he added.

AirAsia X currently operates thrice-weekly flights between Kuala Lumpur and Tokyo’s Haneda airport.

The carrier is also keen on obtaining landing rights in Istanbul, Dubai or Abu Dhabi to establish new routes to the Middle East. In 2009, AirAsia X was flying into Abu Dhabi, but the airline halted operations there last year.

“The Middle East is a huge market, and the UAE is a prime focus,” said Fernandes.

“Besides leisure and business travelers, AirAsia X’s budget flights would benefit the thousands of foreign workers in the region from Indonesia, Thailand and the Philippines, who would have another airline option to fly home.”

By Ellen Chen

NEWLY-launched five-star brand Shaza, a joint venture between Kempinski and Guidance Hotel Investment Company (GHIC), wants to extend its shariah-compliant concept to Asia, after establishing a robust pipeline of projects in the Middle East and North Africa.

Dr Hasnita Hashim, managing director, Guidance Financial Group, which like GHIC is a subsidiary of Capital Guidance, said: “There have been attempts to create shariah-compliant hotels, but they are more localised one-offs. We wanted to create a brand that encompasses the values, aesthetics and culture of the Islamic civilization, but of an international five-star standard that has scalability.”

Speaking to TTG Asia e-Daily on the sidelines of the recent Hotel Investment Conference Asia Pacific (HICAP) UPDATE, she explained that Shaza was making up for its have-nots, such as the absence of a common swimming pool and alcohol, with offerings such as a hammam (Turkish bath) and spa, top chefs in F&B outlets, bigger-than-usual room sizes, a kids’ centre and tasteful Islamic art.

Two properties have opened over the last few months – one in Medina, Saudi Arabia, and the other in Sarajevo, Bosnia and Herzegovina – while more are under development in Egypt, Morocco, Bahrain and the UAE.

Hashim expects to have more than 10 hotels under the brand within the next five years, which will comprise its own investments, management contracts, as well as a mixture of both.

Identifying Malaysia as a suitable destination for its debut property in Asia, Hashim said negotiations had been ongoing for at least two years, but the company was still waiting for a chance to snap up an elusive prime location in Kuala Lumpur.

Hashim explained that Shaza was targeting Muslim travellers, as well as international guests who were “looking for a true experience of the region rather than just going to your standard, five-star Western hotel”. In that respect, it is also exploring opportunities in Hong Kong and London.

SIAM@SIAM has inked a deal to operate the 200-room Mode Sathorn Hotel in Bangkok next April, the second property to come under its management.

Siam@Siam managing director, Kla Kitchakarn, said he was confident the hotel’s strategic location in the prime business area of Sathorn Road would allow it to command an average daily rate (ADR) of around 3,600 baht (US$119) and achieve 50 per cent occupancy in its first year.

According to Kla, the 83-key Crown Lanta Resort & Spa in Krabi, the first property to come under its management portfolio, enjoyed 80 per cent occupancy and 3,600 baht ADR in the 2010/2011 high season. “We are building up the rate to around 6,500 baht by next year,” he said.

Meanwhile, Kla said the company-owned flagship hotel, the 203-room Siam@Siam Design Hotel and Spa, was poised this year to achieve 82 per cent occupancy and 3,000 baht ADR. Last year, the hotel’s occupancy and ADR dropped to 69 per cent and 2,790 baht respectively due to the Thai political crisis.

Siam@Siam plans to grow its inventory in Thailand to around 1,000 rooms, through developing one Siam@Siam each in Phuket and Pattaya, and managing an additional property in Bangkok.

By Sirima Eamtako

THE DECISION OF Malaysia-based outbound tour operator Apple Vacations and Conventions to resume trips to Japan is bearing fruit, with strong response for its tours to Hokkaido. On Tuesday, the company even ran its first advertisements since March 11 to promote the destination.

The company’s managing director, Desmond Lee, told TTG Asia e-Daily: “In just three days since we re-launched our packages on May 10, our Malaysia Airlines (MAS) chartered flights to Hokkaido departing on July 8 have 160 confirmed bookings, comprising five 32-pax groups.”

Lee believes the company will eventually be able to draw up to 1,000 Malaysian visitors to Japan on this trip, aided by the discounted airfares provided by MAS and Singapore Airlines (SIA).

“MAS and SIA are really playing a vital role in helping Japan tourism to recover,” he said. “For example, our tie-up with MAS has enabled us to offer tour packages at 25 to 50 per cent discount.”

Apple’s has slashed it usual price of RM6,899 (US$2,298) for a seven-day Hokkaido tour to RM3,499-RM4,799.

By Ellen Chen

BALI Tourism Board (BTB), the original coordinating organisation of the province’s tourism industry, has been dissolved and replaced by the Association of Indonesian Tourism (Gabungan Industri Pariwisata Indonesia – GIPI).

The new umbrella organisation was formed to comply with Indonesia’s law on national tourism.

GIPI-Bali, which is run by professionals but with government funding and support, will work towards accelerating and integrating tourism initiatives that are currently executed independently by the government and private sector.

“GIPI will become the new face for the leaders of tourism and the partner of the government,” said the chair of the GIPI conference in Bali, Ratna Eka Soebrata.

For English-usage purposes, the name Bali Tourism Board will be retained when referring to GIPI, although GIPI will be used within Indonesia.

Former BTB chairman, Ida Bagus Ngurah Wijaya, has been elected as GIPI-Bali’s chairman.

CHINA-based HNA Group has decided to take a 20 per cent stake in the Spanish hotel chain NH Hoteles, worth 431.6 million euros (US$615 million).

The deal, approved by the NH board on Monday and expected to be ratified by Chinese authorities before July 16, will involve an expansion of capital that will make HNA its second biggest shareholder, as well as pave the way for setting up a hotel management company in China.

Based in Haikou and best known in the travel sector for owning Hainan Airlines, HNA had a reported turnover of more than seven billion euros last year. Its subsidiaries include the Lucky Way International Travel Agency and the airport owner and operator Haikou Meilan International Airport Company.

HNA will be putting some of its existing China hotels into this new management package, according to the Spanish group. At the same time, NH will be offered favoured status with HNA when sending customers to Europe.

NH said the deal with HNA would enable it to diversify its business by taking “a relevant position in the four-star hotel sector” in China.

NH’s largest shareholder will remain Jose Antonio Castro, who is also the owner of another Spanish chain, Hesperia Hotels. Other shareholders include Amancio Ortega, founder of the Inditex textiles group, best known for its Zara clothing line.

CARLSON has signed a management contract with the Philippines’ largest retailer, the SM Group of Companies, via its subsidiary SM Hotels and Conventions, to operate in Davao the group’s first Park Inn by Radisson property in Asia Pacific.

Construction on the 750 million-peso (US$17.3 million) 200-room mid-market hotel, located in the Lanang area of Davao City, will begin in the third quarter of 2011, and is scheduled for completion by 2013.

SM’s shopping mall subsidiary, SM Prime Holdings, will build a supermall and a convention centre on the 175,000m2 land plot where the Park Inn is located.

“The Park Inn hotel will benefit from the business synergies that will be created with the other upcoming SM projects within its vicinity,” said Elizabeth Sy, president of SM Hotels and Conventions Corporation.

Carlson manages another SM Group property in Cebu, a 400-room Radisson Blu hotel launched last September, and is reportedly in talks for future deals with the conglomerate.

THE MINISTRY of Foreign Affairs of Singapore (MFA) has lifted its advisory against non-essential travel to Japan.

A statement from the MFA said that “Singaporeans should, however, continue to avoid travel to the coastal areas of Fukushima, Miyagi and Iwate prefectures, which were the most affected by the March 11 earthquake and tsunami, as these areas continue to suffer disruptions to residential, business and transport infrastructure”.

With discounted airfares, attractive tour prices and now the all-clear signal to woo tourists back to country, Singapore-based travel agencies are expecting a rise in Japan tour bookings for the coming June holidays.

Since the first group departure from Singapore to Tokyo, Japan on April 29 by Prime Travel’s Follow Me Japan tour unit, more group tours are following suit.

Chan Brothers, CTC Travel and Hong Thai Travel have groups with a total of 100 pax heading May 16 to destinations such as the Alpine Route in central Japan and northern Hokkaido.

HOTELS.COM today announced its new localised booking sites for Indonesia and Vietnam, which will feature more market-relevant inventory, as well as be backed up by dedicated offline sales and support teams. This brings its Asia-Pacific network to 15 portals in 10 languages.

Johan Svanstrom, vice president and managing director, Hotels.com Asia Pacific, said growth was very high in many Asian markets, but judging from Internet transactions, volumes logged by Google and the expansion strategies of low-cost carriers, both countries were priorities.

Their combined population is similar to that of the US, making them two of the biggest nations in South-east Asia, he added.

Said Svanstrom: “We will run promotions tailored to them by having domestic and outbound destinations that the population is interested in.”

To match the burgeoning growth of domestic travel in Indonesia, for example, this would mean the addition of rooms in cities such as Bandung, Surabaya and Medan.

Hotels.com is also beefing up its team members in both countries, who will build relationships with hotels in order to support inbound operations.

Declining to reveal specific figures, Svanstrom said he was happy with the initial response. “There were transactions within an hour-and-a-half of launching these sites (around two weeks ago) and transactions have continued”. Indonesia is faring slightly better, he added.

With online travel penetration in both countries at levels lower than the average recorded across Asia, he believed that there was room for several players.

Svanstrom also expects to cash in on the corporate travel market, which he noted was increasingly using the web to book flights and hotels.