CapitaLand: No firm plans at present to divest its investment in Raffles

CapitaLand has clarified its position related to press reports  which indicated that CapitaLand is inviting offers for its 60% stake in Singapore-listed Raffles Holdings.

Starwood’s Miguel Ko: Property sales won't stop Asia

Starwood's regional head for Asia Pacific has told TravelWeekly that the company's intended property sales will not slow Asia's momentum.

Bloomberg reported Starwood chief executive Barry Sternlicht as saying the company had increased property sales to cut debt and raise cash for new opportunities.

Miguel Ko, president Starwood Hotels & Resorts, Asia Pacific told TravelWeekly today the Starwood portfolio in the region was unlikely to be affected by the move.

Source: TravelWeeklyEast.com  

Global Lodging Monthly from Deutsche Bank AG:

The month in Europe - investment commentary

In the light of a deteriorating economic picture as well as heightened uncertainty regarding a potential war with Iraq, the sector continues to demonstrate remarkable resilience. In relative terms it has now 'marked time' for the past four or five months – hardly catastrophic when one considers the performance until that date.

For those followers looking more deeply than this week’s revpar statistics, we would suggest that Hilton Group’s recent announcement of a second sale and leaseback represents another important milestone for the financing of the industry. Not just in terms of the price paid for the portfolio (arguably as much as £190k/room) but, as importantly, in terms of the continued broadening of the market. As far as we are aware, neither the Rotch Group nor Farnsworth (both equity investors in the transaction) have previously undertaken any such deal in the UK, and the German bank involved (putting up more than £250m of debt) has certainly not played any part hitherto.

In terms of specific share prices, the past month has seen a decent performance by the majors (with Accor taking the yellow jersey in posting a 9% relative gain) and a relatively weak picture across the second-liners.

Deloitte & Touche HotelBenchmark data - Europe

The trading patterns remain enormously volatile with no consistency emerging. That said, trading across Germany continues to disappoint and the fixed lease structure of the industry must inevitably be putting a considerable strain on those companies with significant exposure. In that light, it is perhaps no surprise that Accor has recently participated in what is effectively a rescue rights issue for privately held Dorint AG.

Deloitte & Touche HotelBenchmark data - UK

July showed a marked improvement for most of the industry although this was partly a reflection of what was a weak June (impacted by the Queen’s Jubilee) as well as a weak prior year comparative.

Our information is that volumes throughout August have again been reasonably robust and we would anticipate another small single-figure revpar decline when the overall UK figures are published.

The month in Asia

Figures from a raft of companies (e.g. Mandarin Oriental, Raffles, Hong Kong & Shanghai, etc) confirmed that life remains challenging in south-east Asia. In contrast, Asia was one of the undoubted bright spots in the performance of Millennium & Copthorne and, as with Europe, performance differs wildly depending upon city.

Corporately, there was a flurry of activity with regard to BIL and its investment in UK listed Thistle Hotels. At one point the company was forced by the Singaporean Exchange into making an announcement denying that a deal had taken place. We will continue to monitor this situation closely. One company that we can rule out from making an offer on the Thistle portfolio is Millennium & Copthorne. Responding to a question at its interim results, M&C management specifically denied any intention of increasing its exposure to London.

For more info please contact:

Mark Finnie
Pan European Analyst
Deutsche Bank
Tel: 44 131 243 4221
E-mail: mark.finnie@db.com
Web site: www.db.com

All Deutsche Bank global lodging research is posted on the Deutsche Bank research web site. 

PATA releases 2001 Annual Statistical Report

AsiaTravelTips.com  -  The Pacific Asia Travel Association (PATA) has released the PATA 2001 Annual Statistical Report, the most authoritative barometer for travel and tourism performance in the Pacific Asia region.

The report shows that arrivals to the Pacific Asia region held relatively steady at over 171.3 million during 2001, in spite of the various economic, political and social upheavals that beset the year generally. Within Pacific Asia, Northeast and Southeast Asia posted positive gains of three percent and 5.2 percent respectively. The most notable increase within Asia came from Malaysia where arrival figures soared 25 percent. Other main performers were Cambodia, China (PRC), Malaysia and Mongolia which all saw percentage gains in excess of 10 percent in 2001.

In the Pacific region, New Zealand increased by 6.9 percent and Fiji by 18.3 percent. The Americas obviously suffered during 2001, particularly the United States. Nevertheless, Canada retained a positive performance from the U.S., its largest market.

The 179-page report also shows detailed arrival statistics for 2001 compared to 2000 for more than 40 nations in the region, from American Samoa and Australia to Vanuatu and Vietnam. Much of the report compares outbound travel for over 100 countries in Pacific Asia over the last five years. There appears to have been a relative shift in market-share of visitor arrivals with Northeast and Southeast Asia gaining at the expense of South & Central Pacific, South Asia and the Americas. Substantial decreases in arrivals to the Americas following the September 11 attacks, suggests a significant growth and shift in traffic to Asia.

The PATA 2001 Annual Statistical Report also contains miscellaneous tables with a smorgasbord of useful information such as average length of stay, visitor expenditure, currency exchange rates, average hotel room occupancy rates, national tourist organisation budgets and international air frequency and capacity.

PATA’s Strategic Information Centre Managing Director, Mr. John Koldowski said: "In looking back over the last five years, the Annual Statistical Report provides a useful benchmark for recording progress in the face of shifting market and world forces. When used in conjunction with its sister report, Pacific Asia Tourism Forecasts 2002-2004, the reader will obtain an unbeatable overview of travel in our region.” 

The PATA 2001 Annual Statistical Report costs US$250 to PATA Members and US$350 for PATA chapter members and non-members. 

Four Seasons Hotels and Resorts launches luxury cruise vessel

AsiaTravelTips.com  -  Four Seasons Resort Maldives at Kuda Huraa presents an exciting new dimension in late 2002 for guests bound for the property's popular 12-acre private island. In addition to enjoying the Resort, adventurers can explore the untouched reaches of these exotic atolls aboard the Resort's new 39 meter/128 foot Four Seasons Island Explorer by selecting from three, four and seven night cruise options. 

The Four Seasons Island Explorer allows avid divers, water enthusiasts, nature lovers and 21st century explorers to discover remote shores and rarely visited dive/snorkelling sites enjoying the same service, comfort, and style offered at its award-winning resort.

Built to the highest standards, the sleek three-deck catamaran currently under construction in Perth, Australia by Image Marine features ten spacious state rooms and one beautifully-appointed Explorer Suite, two sun decks with Jacuzzi, restaurant with indoor and outdoor dining, bar, lounge and library. This 39 meter/128 foot catamaran with a beam of 12 meters and a draft of 1.90 meters cruises at 14 knots with twin MTU diesels and fixed pitch propellers. A Sea State Motion Control System further enhances the innate stability of the vessel. 

Ensuring guests view the most spectacular scenery and sites in the remote waters, the Four Seasons Island Explorer will stop at pre-selected sites daily. Along the journey guests can select to partake in dives to remote regions seldom seen by locals or tourists; snorkel and play in the turquoise waters teeming with neon-coloured sealife; indulge in amazing Four Seasons lunch breaks or dinner celebrations on the private shores of tropical white sandy beaches; or relax in solitude under the shade of a coconut palm like Robinson Crusoe. Limited to 22 passengers, this unique cruise experience is for people who enjoy their privacy and are seeking a holiday that takes them beyond the normal beach escape.

The Four Seasons Island Explorer's Dive Centre will be managed by an international staff of dive instructors and be equipped with Nitrox Air, scooters and a comprehensive selection of dive gear. Distant sites will be accessed by dive tenders and a traditionally-crafted dhoni boat. Sunrise, wreck, night dives as well as PADI specialist and educational dive courses will be offered to divers.

Guests will be entertained by the numerous cruise activities. Watersports activities will include snorkelling, water skiing, kayaking, windsurfing and deep-sea fishing. The Four Seasons Island Explorer's marine biologist will lead snorkelling trips and present fish talks for guests wishing to learn and understand more about this fascinating aquatic environment. Non-divers can also join a discover scuba diving course or snorkelling excursions, Island site seeing, beach games and sports, cultural presentations and parlour games are planned. On-board massage service will also be available daily.

There are two seven-night route options that guests can select from: the Northern Passage or the Southern Cross. Guests who select one of the three or four day options will embark or disembark the Four Seasons Island Explorer enroute its journey by seaplane.

Northern Passage - Visit: Male Atoll, Lhaviyani Atoll, Baa Atoll
Southern Cross - Visit: Male Atoll, South Male Atoll, Felidhoo Atoll, Ari Atoll

All ten staterooms are bright and airy with large windows, and measure 20 square meters/215 square feet. The mood of the interior is contemporary with teak wood grain complemented by cool, subdued tones and soft goods from the subcontinent. All state rooms are air-conditioned and feature twin beds that can convert to a king bed, couch, writing desk, mini bar, satellite TV, VCD and music system, telephone, in-cabin safe and en-suite bathroom with large bath tub/shower, wc and double vanity. The elegant Explorer Suite with expansive panoramic windows measures 45 square meters/484 square feet. It also features a king bed, daybed and indoor dining area. 

Rates for a stateroom start at US$340 (Shoulder Season - May 12 to July 14), US$380 (High Season - July 15 to December 21, December 2 to May 11) and US$470 (Festive Season - December 22 to January 4). The Explorer Suite is available for US$700 (Shoulder Season), US$880 (High Season) and US$950 (Festive Season). All rates are priced per person per night and based on twin share basis, including full board, all excursions plus diving and equipment. Alcoholic beverages are excluded. These rates are subject to a US$20 service charge and a Government Bed tax of US$16 per person per night. A single supplement of US$200 is applicable. Children over the age of 10 years old are welcome. 

With a history spanning four decades and a portfolio that now extends around the world, Four Seasons Hotels and Resorts is the world's leading operator of luxury hotels, currently managing 55 properties in 25 countries. In February 2002, the company opened its first Four Seasons branded property in China- Four Seasons Hotel Shanghai, and continues to expand, with over 20 projects in development stages in choice locations around the world. 

The state of South Africa's hospitality industry

FEDHASA - Following the slowdown of travel and tourism in the northern hemisphere after the terrorist attack in America on 11 September 2001, the hospitality industry in South Africa has shown a remarkable recovery and is experiencing a welcome upsurge.

According to statistics released by South African Tourism, total tourist arrivals for the period January to April 2002 reflected an increase of 7.6 percent over the corresponding period last year, while overseas arrivals increased by 13.4 percent. Arrivals from Europe increased by 18.4 percent.

The Andersen Hotel Industry Benchmark Survey (SA) for the period January to March 2002 indicated an increase in occupancy of 8.4 percent compared to the corresponding period last year. According to the survey, the occupancy rate for February and March increased by 11.7 percent.

While there can be no doubt that September 11 played a part in the upturn, with South Africa being seen as a safe destination relative to a number of hot spots around the globe, this was not the only factor driving the upsurge.

A decline in the South African Rand, a significant growth in the international conference market, the national carrier upgrading its international fleet and additional frequencies having been awarded to British Airlines, Air France, KLM, Lufthansa and Virgin Atlantic, all contributed favourably to the inflow of tourists.

The country is also very fortunate in that it has a dedicated national ministry fully committed to the promotion and development of the tourism industry. A private, public sector partnership has seen the formulation of a joint marketing initiative and a revised marketing plan to be implemented by South African Tourism in the second half of the year. In addition, the establishment of a public, private sector grading council launched in November 2001 has provided an international benchmark for the industry.

The strength of the South African hospitality industry lies not only in the high standard of accommodation, cuisine and service, but also in the diversity of product available to the tourist. Besides the traditional and well-established holiday and business infrastructure, new sectors have opened up with adventure, conference, cultural and ecotourism leading the way.

At the time of writing, accommodation reservations made for the World Summit on Sustainable Development (WSSD) to be held in Johannesburg in August have resulted in close on R40 million being prepaid to the formal accommodation sector and a million Rand to bed and breakfast establishments. It is estimated that close on 65,000 delegates will attend the summit.

The hosting of the WSSD offers the South African hospitality industry an opportunity to confirm its commitment to sustainable and responsible tourism development and FEDHASA, the Johannesburg World Summit Company and members of the hospitality sector have combined forces to develop guidelines for the local industry.

These guidelines are in accordance with the World Tourism Organisation's code of ethics, broad ISO practice and the International Hoteliers Environmental Initiative. They are also voluntary and conform to the Responsible Tourism Development Guidelines developed by the South African Department of Environmental Affairs and Tourism.

On the eve of the WSSD, I would like to describe the state of the hospitality industry as one of cautious optimism. The significant improvement in investor confidence as a direct result of the leading role played by president Thabo Mbeki in the New Partnership for Africa's Development (NEPAD) initiative and his recent contribution to the G8 summit held in Canada will undoubtedly open up further opportunities for tourism.

For the first time in many years the tourism industry has reflected positive growth. This coupled with the increased occupancy in certain sectors of the hospitality industry has fueled the hope that in the very near future South African figures will be in line with those of comparable long-haul destinations elsewhere in the world.

Six Continents Hotels uses Cairo convention to boost Middle East's travel business from UK

Six Continents Hotels will play a key role in reinforcing travel links between the UK and the Middle East next month when the influential Association of British Travel Agents (ABTA) stages its annual convention in Cairo.

AME Info  -  The Middle East's biggest hotel operator is one of the principal sponsors of the four-day event, whose importance is highlighted by the fact that the ABTA represents more than 600 tour operators, and 2,300 travel agent companies, which together sell 90% of UK overseas packages.

Overall, the UK travel trade handles 57 million customers a year, of which two million visit the Middle East, and Six Continents Hotels believes the ABTA convention, taking place from October 18-21 at the Cairo International Convention and Exhibition Centre, can be used effectively to boost that figure.

“The UK has always been one of the most important markets for Egypt, and we see great potential to attract many more British visitors to this region,” said Denis Johnson, the company's Vice President, Sales and Marketing, Middle East and Africa.

“The ABTA convention provides a perfect platform from which to promote our hotel properties, and the many superb travel destinations across the Middle East, to this major gathering of leading UK travel trade representatives.”

A large number of convention delegates will be hosted by the Semiramis InterContinental Cairo, one of ten properties in Egypt managed by Six Continents Hotels, and an ideal city centre base on the banks of the Nile from which to explore the capital's many attractions.

Delegates will be offered the chance to extend their visit to sample the qualities of Egypt's Red Sea riviera, and in particular the company's superb range of five Red Sea resort properties. These are the Hurghada InterContinental Resort & Casino, the Crowne Plaza Resort Sharm El Sheikh, the Holiday Inn Resort Sharm El Sheikh, the Holiday Inn Resort Amphoras Sharm El Sheikh, and the Holiday Inn Resort Safaga Palace

Also in Egypt, Six Continents Hotels manages the Pyramids Park Intercontinental Resort Cairo, as well as the InterContinental Windsor Alexandria, the InterContinental Le Metropole Alexandria, and the Holiday Inn Resort Alexandria.

“While we'll be placing a big emphasis on our Egyptian presence, particularly as we have seven new hotels and resorts under development in the country, we'll also be highlighting for delegates what the rest of the Middle East has to offer in terms of travel destinations, and hotel facilities,” said Denis Johnson.

Sol Melia simplifies online rates across brands

The world’s tenth largest hotel group Sol Melia today launched its new website with a ‘Uniform Rate Plan’ promotion exclusively for online bookings.

For reservations made throughout September, prices per double room per night will be €40 for the group’s TRYP and Sol properties, €60 for Melias and €80 for Gran Melia hotels. Ten thousand rooms in 350 Sol Melia hotels worldwide have been reserved for the promotion, which is valid for stays until the end of 2002.

Sol Melia said it intended the new solmelia.com website to become a major sales channel for the company, in addition to being a tool to improve brand awareness.

TTM 2002 opened yesterday

Thailand Travel Mart 2002 Plus Amazing Gateway to Mekong Region (TTM 2002) was officially opened at a ceremony chaired by H.E. Deputy Prime Minister Dr. Somkid Jatusripitak yesterday, at Rachamongkon Hall, Suan Luang Rama IX park. A gala cocktail reception was hosted for hundreds of tourism operators from around the world.

TTM will be open to the public for the first time this year on its final day, from 1.00pm onwards.

Aviation recovery in 2004: IATA

The International Air Transport Association (IATA) says air passenger and cargo traffic may regain pre-September 11 levels next year. But global financial recovery of airlines may have to wait till 2004.

“By the end of 2003, we expect to recover most of our lost ground and to be back at pre-September 11 volumes, “says IATA’s director-general, Giovanni Bisignani.