THE PIPELINE : ASIA PACIFIC
decades of heavy-handed military rule . U . S . and European Union sanctions that had barred most economic activity have been lifted recently , and while the Myanmar government announced earlier this year it would continue to bar foreign investment in the budget hotel sector , it is allowing unfettered foreign involvement in upscale hotels . Midscale projects are permitted on a jointventure basis if locals are involved .
Foreign arrivals to Myanmar have spiked in recent months , including a 53 % year-overyear gain in May , according to the Pacific Asia Travel Association . Myanmar ’ s largest city and former capital , Yangon , has fewer than 2,000 hotel rooms and only a handful of internationally branded properties .
However , the workforce in Myanmar is overwhelmingly untrained and uneducated . Furthermore , a lack of infrastructure countrywide is a challenge that could take years to fix . Law governing international investment is still in the works , and many local business contacts remain blacklisted for American companies .
Matthew Fry , senior vice president of acquisitions and development for Starwood Asia Pacific , says Myanmar ’ s natural beauty and history make it an intriguing market for new development . “ It is still early days there , but long term the opportunity is huge ,” Fry says .
PHILIPPINES
The Philippines is aiming to position itself as the region ’ s next big gaming destination . In July , Macau-based Melco Crown and domestic leisure firm Belle Corp . announced plans to develop a US $ 1 billion gaming resort in Manila . It joins the US $ 2 billion Manila Bay Resort gaming complex , which will have 2,050 guestrooms across three hotels , scheduled to open in 2014 .
The expansion of the gaming industry in the Philippines is strongly influencing property development there , but Mövenpick ’ s Pérès says the market can still benefit from continued growth of both leisure and business travel . The development of Mövenpick ’ s first island escape , Huma Island , and the relaunch of its hotel on Mactan Island as a chic destination for domestic and international holidaymakers is evidence of this broader potential , Pérès says .
SINGAPORE
One market seeing outsized growth from outbound Chinese travelers is the city-state of Singapore . Also popular with middle-class Indians , Singapore ’ s robust economy and its recent emergence as an international gaming destination is spurring considerable interest from hoteliers keen to gain brand loyalists from China and India . Language is not an issue for either country , as both English and various Chinese dialects are widely spoken . “ Singapore is seeing record growth almost every year , and the demand for hotels is huge , meaning more hotels are getting built ,” Fry says .
Singapore has some of the highest land costs in all of Asia Pacific , but relatively low interest rates are allowing hotel development to continue relatively briskly . The world ’ s largest oceanarium , complete with an aquatic amusement park , is set to open at Resorts World Sentosa in December .
SOUTH KOREA
South Korea benefits from its proximity to China , but its concentration of population , wealth and
Favehotel ’ s Pluit Junction in Jakarta tourism around a single city , Seoul , has kept it from becoming a hot hotel development market . Still , a quarter of all South Koreans traveled abroad in 2010 , and gross travel bookings there have grown an estimated 45 % since 2009 , according to PhoCusWright . Hotel demand in Seoul is so great that the government last year announced the goal of adding 36,000 new guestrooms by 2015 , and it is making land available at a discount .
SRI LANKA
Development activity has slowed in Sri Lanka after an initial boom in 2010 due to high interest rates and inflation .
Starwood last year signed its first two properties in Sri Lanka , both in the capital of Colombo , and Fry expects Four Points by Sheraton Colombo and Sheraton Colombo Hotel to be springboards to further development in the country . Other notable projects include a gaming resort under development in Colombo by Delta Corp . and the debut of Marriott International in 2014 with the 200-key Weligama Bay Marriott Resort & Spa .
THAILAND
Jones Lang LaSalle Hotels counts Thailand among the region ’ s top hotel investment markets to watch in the coming months , backed by rising RevPAR , investor interest and stable travel demand .
Bangkok has absorbed new inventory nicely , leading international investors and developers to give more consideration to what had long been a market dominated by domestic players , JLLH says .
Phuket posted one of the largest airlift gains in the region during the first half of 2012 , with arrivals up 11 % year over year , according to C9 Hotelworks , and international arrivals are exceeding domestic visitors for the first time . Occupancy rates spiked even higher during the same period , up a whopping 75 %, while RevPAR climbed 8 %.
VIETNAM
Barnett considers Vietnam the biggest disappointment among Asia Pacific hotel markets in recent years due to difficult economic fundamentals . Additionally , Vietnam has largely been left out of the regional budget airlift boom .
Accor has one of the more robust pipelines in Vietnam with three upscale properties under development in Danang and plans to double its portfolio in the country to nearly 30 hotels by 2015 . Other notable projects under development include The Ritz-Carlton Saigon , Mövenpick Resort & Spa Quy Nhon and Meliá Danang Hotel .
36 HOTELS December 2012 www . hotelsmag . com