Monday 16 January 2012

STR Reports on Growth in Regional Centres Across China

According to STR Global, the Chinese hotel market's performance has remained positive year-to-November, with RevPAR growing 2.8% compared with the previous year.

 Tracking more than 315,000 daily rooms across China and reporting on 22 cities, STR Global analysed the performance of the burgeoning secondary cities-cities with less than 10 million inhabitants.

Most of the reviewed cities reported higher RevPAR growth YTD than the national average. China's secondary cities, not including Beijing, Shanghai and Hong Kong, are of more strategic importance to hotel developers and operators as governmental policies are encouraging the development of export trade centres in technology and manufacturing in those provinces.

Limited new supply and strong demand growth boosted RevPAR in the cities of Xiamen (+30.8%), in southeast China, and in Chengdu (+20.3%), located in southwest China, both of which are considered important financial and economic centres. Wuhan, located in the central province of Hubei and known for its car and steel manufacturers, experienced a shortfall in occupancy (-4.1%), whilst ADR grew 18.2% contributing to RevPAR growth (+13.4%). Destinations with a more balanced mix of visitors such as Hangzhou, a UNESCO world heritage city, saw occupancy decline 8.0% YTD compared to the previous year. The decline was the result of additional room supply (+5.6%) and increased ADR (+10.4%). Located only 45 minutes by train from Shanghai, Suzhou, also named the "Venice of the East" for its historical canals and temples, saw occupancy decrease by 4.0% whilst ADR and room supply grew by 2.0% and 5.5%, respectively.

Hotel supply growth from city to city is supported by an expanding real estate market and a growing regional economy. The pipeline until 2014 indicates that supply growth will increase across all the secondary cities with Sanya (+50.1%) and Xiamen (+25.9%) leading the market growth. Suzhou (+11.3%), Xian (+12.0%) and Hangzhou (+9.0%), despite experiencing lower growth, will remain buoyant with new hotel openings, as international brands venture farther away from larger hubs.

"Hotel development by international and regional hotel chains over recent years has focused more and more on secondary cities across China," said Elizabeth Randall, managing director for STR Global. "This development reflects the growing importance of these markets as economic centres and demand generators for inbound and outbound visitors. In 10 out of 15 cities, demand grew at higher rates than supply; however, the right balance between supply and demand will be crucial to the future success of hotels in these markets."

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STR: 3,377 New Hotel Rooms Opened in Canada in 2011

According to data from the STR/McGraw Hill Construction Dodge Pipeline Report, 34 new properties comprising 3,377 rooms opened in Canada in 2011, representing a 1% increase in new supply over last year.

Among the Chain Scale segments, the Upper Midscale segment reported the most new rooms, opening 14 properties with 1,328, followed by the Upscale segment with six properties and 884 rooms.

The Economy segment reported the largest increase (135.8%) in new rooms, compared to 2010, with 6 properties opening with 408 rooms.

In 2012, there are 46 properties expected to open in Canada with 6,206 rooms.

The Upper Midscale segment is expected to open the most rooms with 19 projects and 2,051 rooms, followed by the Unaffiliated segment (12 properties with 1,767 rooms) and the Upscale segment (8 properties with 1,369 rooms).

In December 2011, the Canadian hotel development pipeline comprised 187 projects totalling 20,957 rooms. This represents a 4% decrease in the number of rooms in the total active pipeline compared to December 2010.

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Strong Growth for India's Hotel Industry

According to date compiled by STR Global, India's hotel industry showed overall year-to-date (YTD) November 2011 growth in performance data and supply pipeline.

YTD hotel performance results showed that all major regions, with the exception of Kerala and Maharashtra, reported continuous RevPAR growth.

Looking at the hotel pipeline, India's hotel inventory is expected to increase by more than 61,000 rooms in the next three years with over 30,000 rooms currently under construction based on STR Global's pipeline database.

Regional India

The central region of Madhya Pradesh reported the largest RevPAR growth (+19%), led by a 12.7% increase in occupancy YTD. The neighbouring regions of Uttar Pradesh and Rajasthan saw RevPAR increase by 10.8% and 3.3%, respectively, driven by increased average daily rate in Uttar Pradesh of 2.8% to INR5,527.43, whilst occupancy rates in Rajasthan increased by 6.8% to 40.8% during the same period.

In Kerala and Maharashtra, occupancy and ADR growth declined moderately YTD when compared to the same period last year. Demand in Kerala, following strong growth between 2009 and 2010 (16.3%), remained flat at 0.7% between 2010 and 2011. In Maharashtra, demand growth jumped by 10.6% YTD compared to a negative trend between 2009 and 2010.

Main Indian Cities

RevPAR grew across most Indian cities, with the exception of Chennai (-1.1%) and Delhi (-10.6%). Chennai's demand and supply increased almost in equal measures (6.0% and 5.4%, respectively) making it more difficult to hold average room rates. Delhi reported the highest supply growth (+13.0%) of the cities for the period. Likewise, Jaipur and Bangalore experienced stronger new supply growth compared to demand and saw their occupancy decrease YTD.

Leading the best performing markets in terms of RevPAR growth, Goa reported an 8.0% RevPAR increase, led by year-on-year demand growth of 4.1%. Second was Mumbai with the highest ADR of all Indian cities sampled at INR8,450.84. This financial capital also saw demand growth reaching 9.1%.

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Westin Grande Sukhumvit Bangkok Opens New MICE Space - Altitude

Altitude is the new rooftop function space at The Westin Grande Sukhumvit, Bangkok.

Altitude includes an indoor function space, a break-out room called The Library and The Terrace. The new function space is located on the 25th floor and takes advantage of dramatic views of downtown Bangkok.

Altitude provides the personalized service and amenities to make any event stand out from the crowd. With no access to the public, Altitude also benefits from total privacy and security.

At Altitude, the expansive 400-square-metre indoor room is bathed in natural daylight and is ideal for meetings, events, conferences and cocktail receptions for 80 to 300 guests. Guests can also enjoy delectable dining and refreshments from a buffet island and live cooking stations with a talented culinary team serving gourmet a la minute cuisine.

The 56-square-metre Library makes the ideal break-out room or meeting space for up to 30 guests. It includes comfortable lounge seating, a large LCD TV, and a refreshment centre stocked with your favourite beverages and snacks.

Poolside

The Westin Grande Sukhumvit has also given its swimming pool area a refreshing makeover.

Sun loungers arranged on teak decking around the pool offer the opportunity to soak up the sun while savouring tasty cuisine and refreshing drinks from the pool bar. 

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Thailand (TAT) Responds to Bangkok Alert

Mr. Sansern Ngairungsi, Deputy Governor - Asia and South Pacific Market of the Tourism Authority of Thailand (TAT) last week responded to a question about the Bangkok Terrorism Alert that hit global news media on Friday, 13 January 2012.

Mr. Ngaorungsi was speaking in Q&A session following a press conference at the ATF 2012 in Manado, Indonesia.

More video from the press conference which covered 2011 visitor arrival numbers, targets for 2012 as well as many other interesting topics related to tourism in Thailand will be featured later this week.

ASIA Travel Tips.com also has a large number of exclusive video interviews which took place at the ATF 2012 in Manado, Indonesia. These will be featured in our travel news this week and next.


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Wyndham to Launch Howard Johnson Brand in India

Executive team members at Wyndham Hotel Group are traveling throughout India this month to explore development opportunities in the country.

The company plans to expand its presence in India in 2012 and beyond with a non-exclusive development agreement to launch the iconic Howard Johnson brand in India with 3,000 rooms across 35 new properties by 2017.

This agreement with Unique Mercantile India Private Limited, a large firm in India with investments in real estate development in Gujarat and Hyderabad, India, also includes the development of a new 120-room Ramada resort in Udaipur that will feature a spa, swimming pool, games room, a poolside bar and international cuisine. The hotel?s first 72 rooms are due to open in April 2012 with 48 additional rooms completed by December 2014.

These properties will add to Wyndham Hotel Group's 14 hotels already in operation and the 15 properties that are currently under development in the country.

Given the rise in tourism, India is full of growth opportunities, said Eric Danziger, Wyndham Hotel Group president and chief executive officer. We are happy to start the New Year with such exciting expansion plans and look forward to many more opportunities. We remain committed to developing hotels with distinctive services and offerings while strengthening our global presence in sought after destinations.

The agreement with Unique Mercantile India Private Limited increases Wyndham Hotel Group's portfolio in the Asia Pacific region, which currently consists of 466 properties and over 65,453 rooms under the Wyndham Hotels and Resorts, Ramada, Howard Johnson, Days Inn, Super 8, Microtel Inns & Suites and Dream brands.

The planned expansion in India follows the recent opening of the 154-room Wyndham Grand Agra under the Wyndham Hotels and Resorts flag. The hotel, owned by Shekhar Resorts Limited, is lavishly designed and offers a true feel for the area?s vibrant architecture. Spread over 18 acres of landscaped gardens, Wyndham Grand Agra is a mere five minutes from one of the Seven Wonders of the World, the Taj Mahal.

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Rains disrupt train service on Howrah-Kharagpur section

The snapping of OHE between Haur and Baliachak stations in Kharagpur division forced SER to cancel/suspend/short-terminate and control many mails and express trains betweeen 0735 hrs and 1315 hrs.

Besides these, seven long distance trains--the 12821 Howrah-Bhubaneswar-Puri Dhauli Express, 12021 Howrah-Barbil Jan Shatabdi Express, 22861 Shalimar-Bankura Rajyarani Express, 12871 Howrah-Titlagarh Ispat Express, 12703 Howrah-Secunderabad Falaknuma Express, 12885 Howrah-Santaldih Aranyak Express and 12262 Howah-Mumbai CSTM Duronto Express were delayed by an average of three hours.

The down trains of 12809 Mumbai-Howrah Mail, 18029 LTT-Shalimar Express, 12859 Mumbai?Howrah Gitanjali Express, 12074 Bhubaneswar-Howrah Jan Shatabdi Express, 12129 Pune?Howrah Azad Hind Express were also delayed by about ninety minutes.

The SER also short-terminated the 12021 Howrah-Barbil Jan Shatabdi Express, which left Howrah this morning, at Tatanagar and will run back as 12022 from Tatanagar to Howrah.

As a result, services of 12021/12022 Howrah-Barbil Jan Shatabdi Express will remain cancelled between Tatanagar-Barbil-Tatanagar.

Besides, 3 passenger trains have been short terminated at different stations--Mecheda, Uluberia and Panskura and some local trains were cancelled.

Train services resumed at 1315 hours after the OHE was repaired. (UNI)


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