TOURISM AND HOSPITALITY IN ASIA PACIFIC. February 2018

Transcription

1 TOURISM AND HOSPITALITY IN ASIA PACIFIC February 2018

2 AGENDA Trends in the hospitality sector in SE Asia / Global Demand Occupancy and room rates Supply Infrastructure Challenges & opportunities of hotels in a frontier market What makes hotels work or fail Hotel Design and Operation Operator Selection - what to look out for Lessons learnt from the Vietnam experience 2 CBRE CAMBODIA

3 ARRIVALS 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - International Visitor Arrivals Cambodia Myanmar Vietnam Indonesia Laos 3 CBRE CAMBODIA

4 ARRIVALS 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - International Visitor Arrivals Cambodia Myanmar Vietnam Indonesia Malaysia Thailand Laos 4 CBRE CAMBODIA

5 GROWTH IN ARRIVALS 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% Annual Changes in International Visitor Arrivals Average Cambodia Vietnam Indonesia Malaysia Thailand Laos 5 CBRE CAMBODIA

6 OCCUPANCY Occupancy (MAT) 85% 80% 75% 70% 65% 60% 55% 50% Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Source: STR Global, CBRE Hotels Hanoi Ho Chi Minh City Bangkok Kuala Lumpur Manila Jakarta 6 CBRE CAMBODIA

7 ROOM RATES IN USD Average Daily Rate (MAT) U United States - Dollar Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Source: STR Global, CBRE Hotels Hanoi Ho Chi Minh City Bangkok Kuala Lumpur Manila Jakarta 7 CBRE CAMBODIA

8 ROOM RATE GROWTH Average Daily Rate (MAT) Indexed Local currency Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Source:STR Global, CBRE Hotels Hanoi Ho Chi Minh City Bangkok Kuala Lumpur Manila Jakarta Source: STR & CBRE Hotels 8 CBRE CAMBODIA

9 REVENUE PER ROOM IN USD RevPAR (MAT) United States - Dollar Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Source: STR Global, CBRE Hotels Hanoi Ho Chi Minh City Bangkok Kuala Lumpur Manila Jakarta 9 CBRE CAMBODIA

10 GROWTH IN REVENUE PER ROOM RevPAR (MAT) Indexed Local currency Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Source:STR Global, CBRE Hotels Hanoi Ho Chi Minh City Bangkok Kuala Lumpur Manila Jakarta Source: STR & CBRE Hotels 10 CBRE CAMBODIA

11 INFRASTRUCTURE 11 CBRE CAMBODIA

12 SOME CHALLENGES Political Information Access and cost of finance Security Legal Language People 12 CBRE CAMBODIA

13 WHAT MAKES HOTELS WORK OR FAIL? The owner/developer The market The development The operator Aspirations Financial Long or short term Demand Competition Gap Positioning Financials Design Size Facilities Cost Reputation (guests and owners) Track record Marketing Financial Flexibility Relationship with owners All four need to match 13 CBRE CAMBODIA

14 HOTEL DESIGN AND OPERATION Some key issues Needs input from range of skills Architect Engineer Interior Designer Operator Project Manager Quantity Surveyor Developer They all have different agenda 14 CBRE CAMBODIA

15 HOTEL DESIGN AND OPERATION What is appropriate? 15 CBRE CAMBODIA

16 HOTEL DESIGN AND OPERATION Some key issues 16 CBRE CAMBODIA

17 HOTEL DESIGN AND OPERATION Some key issues Meet or beat the market Future proofing Efficiency v luxury Essential features Understanding the guests Site issues Operational issues Feng shui Market position Branding Highest and best use v ego 17 CBRE CAMBODIA

18 OPERATOR SELECTION What to look out for They are experts most owners and developers are not Use a lawyer experienced in management agreements Put them in competition Key money and sliver equity Control Its not just about the management fees Experience Matching the market, the property, the brand and the owner s requirements 18 CBRE CAMBODIA

19 SOME LESSONS FROM VIETNAM Rapid Development Infrastructure Reliance on a single source of business Condotels Build for the future not today Choose good partners Quality pays It will be cyclical 19 CBRE CAMBODIA

20 CBRE HOTELS SERVICES HOTEL BROKERAGE & INVESTMENT SALES For single and multiple asset transactions, CBRE Hotels offers comprehensive capital markets services including acquisition/disposition and advisory across all hospitality product segments. INVESTMENT & MARKET ADVISORY We provide advice for existing and prospective hotel owners, investors and lenders on the wider hotel industry, as well as specific assets and markets in order to maximize investment returns. VALUATION S ERVICE S CBRE Hotels global Valuation teams complete appraisal and advisory work led by MAI, RICS, or appropriately qualified valuers with specialist hotel-sector knowledge. FEASIBILITY STUDIES Our teams advise on the appropriate development scheme and help optimize returns offering solutions, strategies and alternatives to strengthen your hotel business decision process. OPERATOR SELECTION Our teams work closely with hotel owners to assess their business and legal requirements in order to select the most appropriate operating structure and brand. LEISURE & ALTERNATIVE INVESTMENTS We offer unparalleled consultation, brokerage, financing and appraisal services to specialized industries such as golf and resort properties, gaming, pubs, bars and clubs. PROJECT MANAGEMENT SERVICES Project Management partners with clients to deliver projects from concept to completion by implementing cost efficient, industry leading processes to optimize projects, minimize risk and create value. 20 CBRE CAMBODIA

21 Rob McIntosh Executive Director, CBRE Hotels Asia Pacific T M +61 (0) robert.mcintosh@cbrehotels.com