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Portsmouth, NH – Lodging Econometrics (LE), the Industry
Authority for Hotel Real Estate, announced the completion of a
Development Pipeline with a Three Year Forecast for New Hotel Openings
for each of the 21 different countries in the Asia Pacific region.
LE’s
president, Patrick Ford, said, “At the end of 3Q06 there were 656
projects in the Asian pipeline being actively pursued by developers.
Those Asia projects have 169,691 guestrooms and average 259 rooms each.
371 of the projects are already Under Construction. The pipeline is
moving forward at a feverish pitch as developers rush to complete their
projects.”
Many
of the underdeveloped countries in the region are enjoying strong
economic growth spurts. “In the case of China and India, economic growth
is so explosive it may well be overheating.” explained Ford. “Business
and tourist travel are such big components of the region’s current
growth cycle that it is no surprise that there are unusual and
significant growth opportunities available for International Hotel
Companies.”
Development Growth in China is
Unprecedented
China has the largest development pipeline in the region, and is second
globally only to the United States. China has 316 projects and 107,725
guestrooms spread throughout the pipeline. The room count is a
staggering 63% of the total rooms in the entire Asian pipeline.
Development is fast tracked everywhere as many major cities in China are
presently “under roomed”. Accordingly, 65% of China’s pipeline projects
and 70% of the guestrooms are presently Under Construction.
International travel, both commercial and tourism is roaring. By the
end of ’06 China will have grown to be the fourth largest tourist
destination in the world. It expects to surpass the U.S. and become
number one during the next decade. As the Chinese middle class is
increasingly benefiting from the expanding economy, China’s native
tourist travel is growing impressively as well.
Beijing’s pipeline has the fastest pace. Their pipeline consists of 36
projects with 11,288 guestrooms. 7 hotels are scheduled to open in the
4th quarter, an additional 10 in ’07 and 12 in early ’08.
“Their development pace is geared to getting ready for the Olympic Games
which will be held in Beijing in the summer of ’08,” said Ford.
Shanghai’s pipeline, at 43 projects and 13,957 guestrooms, is larger.
The New Openings will be spaced more evenly over the decade; 15 through
’07, 14 in ’08 and another 14 in ’09 and beyond. Shanghai’s pipeline is
timed for the World Expo that it will host in 2010.
Macau, Asia’s gaming mecca, will benefit from both the ’08 Olympic Games
and the World Expo in 2010, as will many of China’s other primary and
secondary cities. Macau has 24 active projects in the pipeline with
17,909 guestrooms. Projects average an amazing 746 rooms in size. 21
of the 24 pipeline projects are already Under Construction. Macau
presently does 90% of the Las Vegas annual gaming revenue and is
charging ahead to surpass them during the next decade.
Another 6 cities – Tianjin, Guangzhou, Ningbo, Chengdu, Shenzhen and
Sanya – combine for a total of 66 projects in the pipeline. Two-thirds,
or 44 projects, are Under Construction and are timed to capitalize on
the rapidly growing commercial and tourism travel boom ahead.
India – The World’s Back Office
India too is booming and is also “under roomed”. A number of cities
have blossomed with suburban “Silicon Valley” type Special Economic
Zones (SEZ’s) as many developed countries are outsourcing technology and
software development, telephone service centers, and a variety of other
accounting and medical services to India at a great savings.
Bangalore, Hyderabad, Chennai, Gurgaon, Pune and the suburbs of Mumbai
are the area’s attracting international investment and as expected, are
the cities with the largest development pipelines. Combined these
cities account for 89 of the 161 projects in the pipeline and 16,734
guestrooms, which is 68% of the rooms in India’s total pipeline.
India suffers from an outdated infrastructure – airports, train
systems, highways – and as a consequence is not yet an attractive
destination for international tourists. However, as the middle class is
becoming more prosperous Native Indian tourist travel is growing
rapidly, particularly in coastal cities like Goa which has magnificent
beaches, and in a number of other destinations with major religious
shrines.
Of
the 161 projects in India’s pipeline only 100 will have 4 and 5 star
designations. The other 61 are 1, 2 and 3 star developments. A number
of them are new economy brands recently designed for the Indian market
place. Taj’s Ginger
Hotels is one brand, Lemon Tree and Red Fox are others. Together they plan to
compete with Accor’s Ibis brand which has 7 projects in
India’s pipeline and a total of 31
throughout Asia. It’s the largest number of development projects in the
Asian region for any brand.
Leading Companies and Major Brands
With many heretofore under-developed countries blossoming, it’s a once
in a lifetime opportunity for the International Lodging Companies to
place their brands in these rapidly developing countries and be at the
forefront of this landmark commercial and tourist expansion throughout
Asia. For international companies, there are no comparable
opportunities like this anywhere else in the world.
Marriott, Starwood, Hyatt, InterContinental, Hilton, Carlson, Choice and
Wyndham – all with a portfolio of brands at different price points –
are the market leaders in Asia. Additionally, Shangri-La is
particularly strong in China, while Taj Hotels has the largest pipeline
in India. These are the companies whose brands can guarantee early
success for developers. They dominate the marketplace with their
frequent traveler programs, website reservation systems, sales and
marketing teams and regional operating groups.
While many Asian markets are “under roomed” at the moment, current
pipeline levels and LE’s forecast for New Openings shows that this
imbalance will be addressed. The next question for the hotel companies
is, which of the smaller countries in the region are the most likely to
emerge as new manufacturing or technology centers? Among the most
frequently mentioned countries are like Indonesia, Vietnam and the
Philippines
Lodging Econometrics (LE) of Portsmouth, NH is
the industry authority for hotel real
estate. LE’s Development Pipeline databases contain individual
project records for all Hotel, Condo Hotel and Timeshare development
worldwide.
LE
provides individual project records for every actively pursued hotel
development project – in each stage of construction – for every region
and country of interest to you – throughout the world. Receive
important project details including contact information for the
developer along with his latest construction start and completion dates
for:
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·
New
Construction Projects |
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Hotels with Residences |
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·
Reflaggings |
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Condo Hotels |
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·
Announced Renovations |
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Timeshare Projects |
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·
Casino Projects |
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Serviced Apartments |
LE also produces a series
of Lodging Development Summaries displaying project and guestroom counts
for each region, country and city, company and brand, developer group,
star rating (chain scale), size and type of hotel, and for other
criteria important to you. Plus, LE provides a Supply Side Forecast of
New Openings for 2006, ‘07, ‘08, and for ‘09 and beyond.
To learn more about LE’s
products and services or to inquire about ordering customized reports,
please contact LE at (603) 431-8740 ext. 25, or visit them online at
www.lodging-econometrics.com
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