TTG Asia
Asia/Singapore Tuesday, 7th April 2026
Page 2853

Best Western adds Jakarta to portfolio

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BEST Western International has opened the BEST WESTERN Mangga Dua Hotel and Residence in Jakarta, the chain’s first property in the Indonesian capital, and its third in the country.

Offering 148 rooms and 20 suites, the hotel is situated in the Mangga Dua shopping area, close to major shopping malls WTC Mangga Dua and Mangga Dua Square. Also in the vicinity are the Jakarta Convention Center, corporate offices and banks.

Facilities at BEST WESTERN Mangga Dua Hotel and Residence include an outdoor swimming pool, a restaurant serving international food, a lounge bar, a steam room/sauna, a convenience store, massage service and eight meeting rooms with a capacity of 550 people.

China losing its pull factor

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PROPERTY buyers are on the prowl for opportunities outside of China, swayed by factors such as a looming supply glut in the Chinese market and ease of entry and deals from distressed assets elsewhere.

Speaking at Hotel Investment Conference Asia-Pacific (HICAP) UPDATE yesterday, STR Global area director for Asia, Jonas Ogren, said: “China will see some 16 per cent increase in their supply over the next three to five years, and while this might look okay or people may say that we can handle and absorb this, what’s interesting is that this supply increase is not evenly distributed over all of China.”

Peter Meyer, managing director, Pacifica Partners said he was calling a temporary timeout on investing in China. “Land prices have moved in the wrong direction and yields have moved the opposite direction. We haven’t been able to make it work.”

He pointed out that other markets like Australia, for example, had similar opportunities, but without the difficulties of execution in China and India.

Regent Hotels & Resorts chairman Steven Pan also observed that deal flow from Japan has been strong, while markets in Europe and the US were currently “trading on the distressed situation”.

– Read more in TTG Asia, May 13

Hotel dilemma for Middle East and North Africa

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THE BURGEONING hotel sector in the Middle East and North Africa is both a boon and bane to tourism, with oversupply threatening to derail overall profitability, according to a presentation at the World Travel Market Vision Conference – Dubai on Tuesday.

Euromonitor International travel and tourism industry analyst, Nadejda Popova, warned that oversupply was a pressing issue, with Abu Dhabi and Dubai the most exposed.

“Although arrival numbers are growing in these cities, supply is outpacing demand, resulting in lower than expected occupancy rates and RevPAR figures,” she said.

Popova pointed out that the Middle East benefits from some of the highest RevPARs worldwide, and “may be undergoing a small structural change post-crisis, as the luxury price proposition corrects itself”.

Popova also revealed new hotel development in the region had slowed as a result of the global downturn. However, she said the UAE, Saudi Arabia, Egypt, Qatar and Jordan all have more than 3,000 rooms each in the pipeline, based on studies by hospitality research firm STR Global.

Asian hotel chains such as Dusit, Shangri-La, Banyan Tree and Anantara are all contributing to the expansion, opening properties in the UAE, Egypt and Oman. Budget hotels are also expanding, with Accor leading the way with four Ibis-branded hotel openings in the region by 2012.

World Travel Market exhibition director, Simon Press, said: “The Middle East and Africa are now an integral part of the global travel and tourism industry. The region’s inbound tourism numbers are growing, but hotels need to balance the expected increase in demand with the number of rooms available.”

Asia warned of road bump ahead

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HOTEL investors were cautioned that Asia’s spectacular growth would soon come to a slowdown, when the US finally pulls the plug on government life support and the economic bubble in China decides to pop.

Painting a grim outlook at the opening of the Hotel Investment Conference Asia-Pacific (HICAP) UPDATE in Singapore yesterday, Blackhorse Asset Management chief economist Richard Duncan said: “If you’re making plans about how to invest in China and in Asia, you’d better prepare for this change that is about to come. China is not going to have 10 per cent GDP growth for the next 10 years. It’s going to slow very radically.” (see related story, China losing its pull factor)

He explained that as the American government comes under pressure to reduce its budget deficit and the Federal Reserve’s “paper money creation” is scheduled to end in June, the US economy is likely to weaken in the second half of 2011.

Said Duncan: “The US trade deficit is not going to keep fuelling the global economy the way it has in the past. Asia’s era of export-led growth is over. This trade deficit is going to, at best, flatten out and possibly correct more than it already has.”

He believed as much as 40 per cent of China’s economy was dependent on its trade surplus with the US.

– Read more in TTG Asia, May 13

Maldives to get first-ever shariah-compliant resort

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UAE-based Islamic hospitality group Lootah Hotel Management (LHM) will launch the first shariah-compliant resort in the Maldives by 2013, having signed a memorandum of understanding with Maldives’ Kalaidhu Investment this week to undertake management of the resort.

The US$85-million property in the Maldives will comprise 50 luxury villas with private swimming pools, an exclusive beach, a restaurant, a recreation centre, a spa, and a marina.

Shariah-compliant hotels and resorts, operated based on Islamic principles, are fast becoming popular in the Arab world with their no alcohol, halal-prepared food policies and range of separate facilities for males and females, including gyms and spas.

MAS expects strong response to tactical campaign

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MALAYSIA Airlines (MAS) expects to sell some six million seats – two million for travel within Malaysia and four million on international routes – during its Global Deals, Dream Getaway sale, which previewed last week in Jakarta (TTG Asia e-Daily, April 26).

MAS regional vice president Azman Ahmad told TTG Asia: “It is still early to derive the numbers, but the response so far has been very encouraging. We are targeting an estimated RM108 million (US$36 million) in revenue for the 16-day campaign period from May 3 to 18.”

The promotion, offering discounts of up to 95 per cent on economy-class seats and up to 75 per cent on business-class seats until May 18, is valid for travel from May 3 to March 31 next year to destinations in Asia, the Middle East, Africa and the Americas.

Hot seats on routes to Bangkok, Hong Kong, Shanghai, Ho Chih Minh City and London are being snapped up quickly.

Bookings made under MASHolidays’ Free and Easy programme are entitled to the discounts.

By Ellen Chen

Kuoni completes GTA acquisition

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KUONI has completed its takeover of Gullivers Travel Associates (GTA) as planned (TTG Asia e-Daily, March 7).

With its acquisition of GTA from Travelport, which will be integrated into the Division Destinations arm of the Kuoni Group, Kuoni will become one of the leading global providers of online destination management services.

The new CEO of GTA is Rolf Schafroth, a member of the Kuoni Group executive board and responsible for Division Destinations. He will also continue to serve as CEO of the Kuoni Destination Management unit.

Holiday Inn completes Thailand phase of US$1 billion global revamp

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HOLIDAY Inn last week relaunched the Holiday Inn Chiangmai, Holiday Inn Resort Regent Beach Cha-Am and Holiday Inn Resort Phi Phi Island, completing the Thailand phase of its US$1 billion global brand refresh programme.

“We are delighted to complete the Thailand phase of the refresh project,” said Alan Watts, vice president of operations, South-east Asia, InterContinental Hotels Group.

“Although tourism in Thailand dipped in recent years due to unprecedented internal events, 2011 sees the country re-emerging strongly once again as a business and leisure destination of choice for local, regional, and international travelers,” he added.

Holiday Inn’s refresh programme creates a more contemporary brand image as part of the brand’s drive to increase quality and consistency across its global portfolio.

Aside from the introduction of modern amenities and facilitie, and improved room fittings and standards, its revamped hotels also offer an up-to-date sensory experience (look, feel, and scent), including a new logo and signage.

Regent’s rebirth gains traction

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CLOSE to a year after he acquired Regent, Steven Pan, chairman of Regent Hotels & Resorts, said a revamped global infrastructure to support the brand would roll out next month. This includes a worldwide reservations system under Sabre and a new website.

Interviewed on the sidelines of the Hotel Investment Conference Asia-Pacific (HICAP) UPDATE in Singapore yesterday, Pan said a lot of time over the past 10 months had been spent on building the sales and marketing and operations team, a process he hopes to complete in the second half of the year.

A search for a head of operations for Regent has started.

Observers said that since the acquisition, there had been a couple of exits from the pipeline, as the owners considered the question of supporting infrastructure, which Pan needed to build from scratch after buying the brand from Carlson.

Pan said building the infrastructure was indeed the priority. As well, a lot of time has been spent on making revisions to pipeline hotels to ensure they were more in line with the new Regent concept.

The Regent in Bali, expected to open in 2012, would be the closest idea of the new Regent, he said, “but the real, 100 per cent new Regent won’t happen until three years later, probably in Austria and Sanya”.

Asked to describe the new Regent hotel, he likened it to a handmade piece of work, which was so unique it would be difficult to benchmark the competitor set.

It is also smaller: 200 rooms or fewer in urban locations, and 100 rooms in resort locations. “Those days of luxury hotels with 500 rooms – that’s gone,” he said.

Branded residence will also be part of most of the new Regent properties.

There are five Regent hotels in operation, and “seven to eight” in the pipeline. “We expect to open three to five Regent hotels per year in the next five years.

“So we should have no more than 30 to 40 Regent hotels in five years,” Pan said.

Regent was the defining Asian brand when it was launched 20 years ago by Adrian Zecha, Bob Burns and George Raphael. Pan agreed the high Regent standards have become the norm in luxury hotels today. “The Regent hotels we’re conceptualising today will go into the market three to five years from now and will compete for the next 10, 20, 30 years. Old standards will not make it. Hence, it is important to implement the new concept.”

Pan elbowed out InterContinental Hotels Group and another Middle East-based group in bidding for the Regent brand. When asked when Regent would return to Hong Kong, where the former Regent is today the InterContinental, he said: “It’s a question I think about every day.”

– Read From the Top with Steven Pan, TTG Asia, next issue

Lufthansa’s Japan operations back on track

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LUFTHANSA has resumed normal operations in Japan following the tsunami, earthquake and nuclear crisis there.

Having reduced capacity on its Japan routes by 25 per cent in the immediate aftermath of the disaster to maintain load factors of about 80 per cent, the airline’s services to Osaka, Nagoya and Tokyo (Narita) are now back on full schedule.

Speaking at a media gathering yesterday to announce the stewardship transition of the German national carrier’s Asia-Pacific operations, outgoing Lufthansa vice president Asia & Pacific, Uwe Mueller, said that many Japanese were starting to book air tickets again, ending a six-week period where the airline had been experiencing cancellations and a downturn on its Japanese routes.

Meanwhile, Lufthansa’s operations in the rest of Asia, excluding Japan, has seen a double-digit increase in business for the first quarter of the year, compared to the same period in 2010.

“Our yearly outlook in Asia, excluding Japan, is going as planned,” said Mueller. “We are confident we will achieve our target of 14 to 15 per cent increase in capacity through employing larger aircraft and increasing frequencies.”

Incoming Lufthansa vice president Asia & Pacific, Steffen Harbath, said expansion in the region would focus on the key markets of China and India. “Asia-Pacific profitability is the backbone of Lufthansa profitability,” he said.

Harbath added that the airline was not planning to launch any new destinations in Asia-Pacific this year.