THE PIPELINE : ASIA PACIFIC
The hotel development boom in China and India overshadows remarkable growth and opportunities throughout the Asia Pacific region .
Doubletree by Hilton Kuala Lumpur
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The economic behemoths China and India are only part of the Asia Pacific hotel development story . The ever-growing middle class throughout the region continues to build a core of intraregional travelers , creating new demand for inventory across all segments .
The Asia Pacific region as a whole accounts for the largest share of the global hotel pipeline , with more than 1,600 projects and 375,000 guestrooms , according to an August report from STR Global . While the bulk of that total is concentrated in China , several markets boast pipeline figures in the thousands , including Bali ( 8,671 ), Jakarta ( 7,121 ) and Manila ( 6,438 ). Occupancy across the region has remained flat over the past year , finishing the summer at 68 % on slightly higher ADR ( US $ 139 in August ) and RevPAR ( US $ 95 ) compared to 2011 performance , according to STR . Overall , Asia Pacific is approaching full recovery , with average rates just 3 % below the 2008 peak .
No region has long-term forecasted growth greater than the 4.9 % per annum projected for Asia Pacific by the World Tourism Organization through 2030 . If that projection is accurate , Asia Pacific will account for nearly a third of the world ’ s tourism in 2030 . Last year , Southeast Asia experienced 10 % growth in international arrivals on strong intraregional demand .
Rise of the intra-Asia traveler As the pool of Asian travelers rapidly expands , hotels there are much less reliant on longhaul Western visitors . “ If you sat around a hotel swimming pool in Bali five years ago , you didn ’ t see any Chinese ,” says James Kaplan , senior vice president of development in Asia Pacific for Fairmont Raffles Hotels International . “ If you sit around a pool in Bali today , you ’ ll see 30 % to 40 % Chinese .”
As China and other countries in Asia Pacific experience increased wealth and a substantially larger middle class , the traveler profile is changing — and with it , the hotels themselves . “ It ’ s no longer just Europeans who want to come and sit on the beach all day ,” says Bill Barnett , managing director of Phuket-based consultancy C9 Hotelworks . Hotels and resorts in Asia Pacific are increasingly based around regional demand-drivers like wellness centers , family tourism and gaming , he says .
The upscale and upper-upscale segments show the strongest active pipeline development in the region , reflecting a demand for high-quality accommodations below the pure luxury segment , says Jean Gabriel Pérès , president and CEO of Mövenpick Hotels & Resorts , Glattbrugg , Switzerland . Mövenpick has contracts in place to more than triple its Asia Pacific portfolio within five years , expanding from seven hotels to 22 .
Hilton Worldwide is taking its uppermidscale DoubleTree by Hilton and Hilton Garden Inn brands into several new markets in Southeast Asia in the next couple years . “ The rise of China ’ s middle class is clearly one of the mega-trends that will influence the shape and composition of the hospitality industry ,” says Andrew Clough , Hilton Worldwide ’ s senior vice president of development for the Middle East and Asia Pacific . “ When you lay this trend next to the rapid expansion of low-cost airlines in many markets pan-Asia Pacific , you quickly understand why the World Trade Organization ’ s forecasts for the region are so strong .”
Singapore-based Far East Hospitality Trust , which raised about US $ 574 million in an August IPO , aims to grow its portfolio in the near term buoyed by increasing intraregional travel and its associated access to low-cost airlift . CEO Arthur Kiong says the REIT is looking primarily at population centers within three hours ’ flight from Singapore . “ The growing prominence of Asian countries — especially China , India and Indonesia — has driven up demand for international and intraregional business and leisure travel ,” Kiong says . “ The rise of low-cost carriers and online bookings also signals a new breed of travelers who are more practical and self-confident . This has resulted in a large number of independent brands and new players in the industry .”
Arguably the most established international player in Asia Pacific is Accor , which boasts more than 500 hotels and 100,000 guestrooms across all segments in the region . Accor took
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