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THE ANNUAL HVS ASIA-PACIFIC
HOTEL OPERATOR GUIDE(AS OF 31 DECEMBER 2019)
2020 EDITION | PRICE US$800EXCERPT
Apichaya WongsuwanAnalyst
Pawinee ChaisirirojSenior Manager
Daniel J VoellmManaging Partner
HVS.com HVS | Level 7, Nan Fung Tower, 88 Connaught Road Central, Hong Kong
FORWARD
Daniel J. Voellm, MRICS
Managing Partner, Asia Pacific
As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE I
A refreshed design for the Hotel Operator Guide brings us into a new decade which fromthe get-go is beset with new challenges. While the industry struggles during the Covid-19pandemic on an unprecedent scale, many development projects continue to moveforward. Owners, now more than ever, need foresight in selecting the right partner to runtheir hotel property. This publication is the most established tool in the industry in AsiaPacific to guide owners in understanding the scale, presence and capabilities of operatorsin the region. HVS has advised numerous owners in the decision-making process to selectthe right structure and operator for their projects and assist in negotiating favorableterms. Great importance is ascribed to the confidence an owner can take in the operatorbeing familiar with the intricacies of doing business in the locale and the brand deliveringthe topline performance according to its positioning. That being said, motivations amongowners in selecting an operator vary, and criteria and objectives can call for a morecreative approach and thinking outside the box.
We greatly appreciate the support from all participants of this guide to provide a morecomprehensive profile of our industry in the region. Should you want to participate in thenext edition of the guide, please do reach out to us.
In this Seventh Edition, we have captured over one million existing and more than half amillion pipeline rooms spread over 7,148 properties. This publication features 55operators and we look forward to have more brands included in forthcoming editions. Ouranalysis covers 33 countries and territories in Asia-Pacific and 1,133 markets with existinghotels as well as 832 markets with proposed hotels. Special thanks also go to my co-authors Pawinee Chaisiriroj and Apichaya Wongsuwan from our Bangkok office who liaisedwith the operators and compiled that data, presenting you with an important resource inour HVS library. Happy reading and stay safe!
As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE II
40%
50%
60%
70%
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2014Edition
2015Edition
2016Edition
2017Edition
2018Edition
2019Edition
2020Edition
Pip
elin
e/Ex
isti
ng
Gro
wth
Ho
tel R
oo
ms
Existing Pipeline Pipeline/Existing Growth
Overview
The graph below presents the data collection of The Annual HVS Asia-Pacific Hotel Operator Guide over the past seveneditions. Between the 2014 Edition and the 2020 Edition, the existing room supply, and the pipeline room supply registeredgrowth rates of 9.9% and 14.2% per annum, respectively. The annual growth between pipeline room supply and existing roomsupply hovered between 50% to 60% mark in the past, with the exception of the 2015 Edition and 2020 Edition, where thegrowth was observed at 64% and 63%, respectively.
Between YE2018 and YE2019 data, the existing properties and the existing room supply registered growth rates of 20.1% and 13.9%, respectively.Similarly, the pipeline supply posted healthy double-digit growth of 31.3% in properties and 14.2% in room supply.
Pipeline Supply GrowthCAGR YE2014 – YE2019
Properties +19.4%Rooms +14.2%
1.3 Million
0.8 Million
CAGR: Compound Annual Growth Rate
Existing Supply GrowthCAGR YE2014 – YE2019
Properties +13.8%Rooms +9.9%
As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE III
Geographic Distribution: Existing Supply
TOP 5 EXISTING ROOMS SUPPLY
China 649,043 Rooms
Australia 106,460 Rooms
Indonesia 101,840 Rooms
Thailand 82,662 Rooms
Japan 78,633 Rooms
China 48%
Australia 8%
Indonesia 7%
Thailand 6%
Japan 6%
India 5%
South Korea 4%
Malaysia 3%
Singapore 3%
Hong Kong SAR 2%
Given its sheer size, China dominates the market in terms of
geographic distribution for existing inventory at 48%. The
top five countries have over one million rooms in inventory
combined.
Other significant markets in terms of existing hotel rooms
include India, South Korea, Malaysia, Singapore, and Hong
Kong SAR.
As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE IV
TOP 5 PIPELINE ROOMS SUPPLY
China 504,245 Rooms
Indonesia 56,378 Rooms
Thailand 49,198 Rooms
Vietnam 46,595 Rooms
India 41,052 Rooms
Geographic Distribution: Pipeline Supply
China 58%
Indonesia 7%
Thailand 6%Vietnam 5%
India 5%
Malaysia 4%
Australia 3%
Philippines 3%
Japan 2%
South Korea 1%
0%
20%
40%
60%
80%
100%
LOI/MOU signed Contract signed Initial Planning
Under Construction Pre-Opening Expansion
Approximately 40% of the new supply is under construction, while 45% has signed either a Letter of Intent/Memorandum of Understanding or management agreement.
TOP 10 PIPELINE SUPPLY BY DEVELOPMENT STATUS
Excludes properties with development status not identified
Pipeline Rooms Supply
The top four operators posted the largest market share of 63% by the number of pipeline properties. Each of the top four operators recorded over 100,000 rooms in the pipeline supply. Hilton ranked second, trailing behind Marriott International by approximately 24,000 rooms.
Existing Rooms Supply
The top five recorded a market share of 67% by existing roominventory. While Accor Asia Pacific trailed behind MarriottInternational by just 1,437 rooms in YE2018, Accor Asia Pacificreported 2,674 rooms higher than Marriott International inYE2019. Okura Nikko Hotels made it to the top ten list withapproximately 21,500 rooms.
As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE V
Existing Supply and Pipeline Supply by Operators
45 Operators with Less than 21,100 rooms
40 Operators with Less than 11,000 rooms
As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE VI
Existing Supply and Pipeline Supply by Brands
Existing Rooms Supply Pipeline Rooms Supply
Given the prevalence of multi-brand operators, the brandlandscape is subject to a higher degree of fragmentation. Withits notable presence in China, the economy scale chain Super 8has the largest market share of 6%, followed by full-servicebrands such as Crown Plaza and Sheraton Hotels, accountingfor 4% each, respectively.
The brands in the pipeline are leaning toward a mix of limitedand full service. Hampton by Hilton and Holiday Inn Expresseach has 5% of the market share. Full-service brands includingHilton, Marriott Hotels & Resorts, Holiday Inn, Mercure,DoubleTree by Hilton, Novotel, and Crowne Plaza have 21% ofthe market shared combined.
253 Brands with Less than 18,200
Rooms; 67%
Hampton by Hilton; 5%
Holiday Inn Express; 5%
Hilton; 4%
Marriott Hotels & Resorts; 3%
Holiday Inn; 3%
Mercure; 3%
DoubleTree by Hilton; 3%
Novotel; 2%Crowne Plaza; 2% Hilton Garden Inn; 2%
267 Brands with Less than 30,000
rooms; 66%
Super 8 by Wyndham; 6%
Crowne Plaza; 4%
Sheraton Hotels; 4%
Holiday Inn Express; 3%
Holiday Inn; 3%
Hilton; 3%
Novotel; 3%Ramada by Wyndham; 3%
Ibis; 3%InterContinental; 2%
As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE VII
Top 10 Existing Room Supply by Markets
19%
14%
11%
10%10%
8%
7%
7%
7%
7%
Shanghai
67,864 rooms
Beijing
Hong Kong
Bangkok
Singapore
Seoul
Chengdu
Hangzhou
Jakarta47,746 rooms
34,184 rooms
39,575 rooms
34,233 rooms
25,139 rooms
24,887 rooms
26,404 rooms
27,278 rooms
Tokyo
24,449 rooms
The ten leading markets feature approximately350,000 branded hotel rooms or 26% of the totalsample.
Shanghai has the largest number of branded roomssupply of 67,844 rooms, which is equivalent to 5%of the total sample. Three out of the top tenmarkets are urban cities in China. Tokyo recordedjust under 25,000 hotel rooms as of year-end 2019and made it to the top ten list.
As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE VIII
Existing & New Supply Growth
The size of the bubble in the chart represents the growth rate between existing and pipeline branded supply. Changsha andPattaya recorded the largest growth in supply, with a pipeline of 143% and 121% of their existing room supply, respectively.Aside from the top two markets mentioned, most markets in the graph have a pipeline that is between 26% and 106% of theirexisting room supply. All these markets are likely to experience some level of moderating performance in the medium termuntil the new supply is absorbed.
0
5,000
10,000
15,000
20,000
25,000
30,000
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000
Bra
nd
ed S
up
ply
Pip
elin
e
Existing Branded Supply
Chengdu
HangzhouXi'an
BangkokJakarta
Phuket
Shenzhen
BeijingKuala Lumpur
Nanjing
Sanya
Changsha
Melbourne
Wuhan
Guangzhou
Tianjin
Pattaya
Suzhou
Manila
0
5,000
10,000
15,000
20,000
25,000
30,000
0 10,000 20,000 30,000 40,000 50,000
Bra
nd
ed S
up
ply
Pip
elin
e
Existing Branded Supply
Shanghai
As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE IX
142%
31%26% 24% 19% 17% 15% 14% 13% 13%
0%
40%
80%
120%
160%
C A P E L L A H O T E L G R O U P
N E W C E N T U R Y H O T E L G R O U P
R O S E W O O D H O T E L G R O U P
D U S I T I N T E R N A T I O N A L
F A R E A S T H O S P I T A L I T Y
M A N A G E M E N T
H I L T O N J U M E I R A H G R O U P
O N Y X H O S P I T A L I T Y
G R O U P
M E L I A H O T E L S I N T E R N A T I O N A L
K E M P I N S K I H O T E L S S A
Net Room Growth
Ranked by a very important KPI in the industry – net room growth – there is a mix of small and large operators at the top.Capella Hotel Group posted the highest net room growth of 142% whereas in absolute terms it ranked 29th with 541rooms added. In absolute terms, InterContinental Hotels Group claims the top spot for the largest supply added in YE2019at 21,966 rooms.
Rooms Added Net Room Growth Rooms Added Net Room Growth
1 Capella Hotel Group 541 142% 11 InterContinental Hotels Group 21,966 13%
2 New Century Hotel Group 10,499 31% 12 Hotel Shilla 621 13%
3 Rosewood Hotel Group 1,863 26% 13 Hyatt Hotels Corporation 4,875 11%
4 Dusit International 1,355 24% 14 Cross Hotels & Resorts 126 10%
5 Far East Hospitality Management 835 19% 15 Banyan Tree Holdings Limited 474 9%
6 Hilton 13,986 17% 16 Oakwood Worldwide 578 9%
7 Jumeirah Group 138 15% 17 Swiss-Belhotel International 1,069 9%
8 Onyx Hospitality Group 1,098 14% 18 Accor Asia Pacific 18,472 9%
9 Melia Hotels International 625 13% 19 Pan Pacific Hotels Group 739 8%
10 Kempinski Hotels SA 1,179 13% 20 Okura Nikko Hotels 1,623 8%
Largest room supply added at 21,966 rooms
63.0%
27.1%
6.5%
3.3%
0.1%
HMA
Franchise
Others
Not Identified
White Label
As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE X
Management Structure – Existing Supply
0% 20% 40% 60% 80% 100%
Hong Kong SAR
Singapore
Malaysia
South Korea
India
Japan
Thailand
Indonesia
Australia
China
HMA Franchise White Label Others
Management Structure for Existing Hotels
Management Structure by Top 10 Geographic Distributions Top 10 Franchise Brands by Number of Rooms
0%
5%
10%
15%
20%
25%
Excludes properties with management structure not identified
Most properties are being operated via a Hotel ManagementAgreement (HMA), followed by Franchise. Others managementstructure may include owned-operated or leased. White Label isrelatively new and witnesses a smaller portion compared to other typeof management structure. Taking a closer look at franchising, mostfranchise agreements are established in South Korea, China, India,Japan, and Australia. The brands strongest in franchising are typically inthe budget and midscale positioning.
As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE XI
Management Structure – Pipeline Supply
Management Structure for Pipeline Hotels
Management Structure by Top 10 Geographic Distributions Top 10 Franchise Brands by Number of Rooms
75.1%
22.0%
1.6%1.2%
0.1%HMA
Franchise
Not Identified
Others
White Label
0% 20% 40% 60% 80% 100%
South Korea
Japan
Philippines
Australia
Malaysia
India
Vietnam
Thailand
Indonesia
China
HMA Franchise White Label Others
Excludes properties with management structure not identified
0%
5%
10%
15%
20%
25%
30%
In the pipeline, almost 650,000 rooms or 75.1% will be operated undera Hotel Management Agreement (HMA) structure, followed by 22.0%for a franchise agreement. Pipeline supply witnesses a smaller portionof Others management structure (owned-operated model) comparedto the existing properties as several operators are moving toward assetlight strategy. Additionally, more countries in the region are expected toincreasingly see franchise agreements structure moving forward. Interms of the brands, ibis and Hampton by Hilton continue to rank in thetop five franchise brands in both existing and pipeline supply.
As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE XII
Table of Content
OperatorAccorHotels Asia-Pacific 1Akaryn Hotel Group 2Archipelago International 3Banyan Tree 4Belmond 5Best Western International - Asia 6Capella Hotel Group 7Centara Hotels & Resorts 8Club Med 9Cross Hotels & Resorts 10Dorsett Hospitality International 11Dusit International 12Event Hospitality & Entertainment 13Far East Hospitality Management 14Four Seasons Hotels & Resorts 15Galaxy Entertainment Group 16Hilton 17Hotel Shilla 18Hyatt Corporation 19InterContinental Hotel Group 20Jinmao 21Jumeirah 22Kempinski SA 23Langham Hospitality Group 24Lanson Place Hospitality Management Limited 25Lotte Hotel 26Lub d 27Mandarin Oriental Hotel Group 28
OperatorMarriott International 29Melia Hotels International 30Minor International 31New Century Hotel Group 32Oakwood Worldwide 33Okura Nikko Hotel Group 34Onyx Hospitality Group 35Outpost Destination 36Outrigger Hospitality Group 37Ovolo Group 38Pan Pacific Hotels Group 39Park Hotel Group 40Pragma Hospitality 41Radisson Hotel Group 42Red Planet Hotels 43Regal Hotels International 44Rosewood Hotel Group 45Soneva 46Staywell Hospitality 47Swire Hotels 48Swiss-Belhotel International 49The Ascott Limited 50The Standard 51Urban Resort Concepts 52Wharf Hotels 53Wyndham 54Yotel 55
Sample Hotel
Existing Pipeline
Properties 20 5
Rooms 4,000 2,000
Rooms YoY 5% 2%
Countries
Cities
5
6
2
2
This page illustrates a sample data presentation of each hotel operator.
Top Location by Hotel Rooms
Singapore 1,400
Bangkok 1,000
Phuket 600
Hong Kong 500
Shanghai 400
Year Established: 2010 Regional Headquarters: Bangkok
Total # of Brands: 2 Total # of Employees: 1,000
Number of Existing Rooms by Brand
Number of Pipeline Rooms by Brand
As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE XIII
Number of Pipeline Rooms by Country/Region
Number of Existing Rooms by Country/Region Management Structure For Existing Property
Management Structure For Pipeline Property
Hotel Image
Hotel Image
0 500 1,000 1,500 2,000
Maldives
China
Hong Kong SAR
Singapore
Thailnad
YE 2018 YE 20190 500 1,000 1,500 2,000 2,500 3,000
Brand 2
Brand 1
YE 2018 YE 2019
0 200 400 600 800 1,000 1,200
Brand 2
Brand 1
LOI/MOU signed Contract signed Initial Planning
Under Construction Pre-Opening
0 200 400 600 800 1,000 1,200
Hong Kong SAR
Thailand
LOI/MOU signed Contract signed Initial Planning
Under Construction Pre-Opening
59%23%
12%
6%
HMA Franchise
White Label Others
100%
HMA
About HVS
HVS, the world’s leading consulting and services organization focused
on the hotel, mixed-use, shared ownership, gaming, and leisure
industries, celebrates its 35th anniversary in 2015. Established in 1980,
the company performs 4,500+ assignments each year for hotel and real
estate owners, operators, and developers worldwide. HVS principals are
regarded as the leading experts in their respective regions of the globe.
Through a network of more than 35 offices and more than 500
professionals, HVS provides an unparalleled range of complementary
services for the hospitality industry. HVS.com
Superior Results through Unrivalled Hospitality Intelligence. Everywhere.
HVS ASIA PACIFIC is represented by seven offices in Hong Kong,
Bangkok, Beijing, Mumbai, Shanghai, Shenzhen and Singapore. HVS
hosts important industry events in the region, including the China Hotel
Investment Conference (CHIC) in Shanghai, now in its 14th year and
various HVS Hotel Market Connections events and Learning Seminars.
Additionally, HVS publishes a wide range of leading research reports,
articles and surveys, which can be downloaded from our online library.
The team has worked on a broad array of projects throughout the asset
life-cycle that include economic studies, hotel valuations, operator
search and management contract negotiation, development strategies
for new brands, hotel asset management, research reports and
investment advisory for hotels, resorts, serviced residences and branded
residential development projects. HVS Hong Kong’s clients include key
investors, developers, hotel operators and lenders.
About the Authors
Pawinee Chaisiriroj is a Senior Manager at HVS Bangkok, providing a range ofconsulting and advisory services for the hospitality industry in the Asia Pacificregion. Prior to joining HVS, Pawinee gained experiences in hotel operations withthe Ritz-Carlton, Mandarin Oriental and Four Seasons. Pawinee holds an HonoursBachelor of Arts Degree in Hospitality Management with Real Estate Finance andRevenue Management from Glion Institute of Higher Education in Switzerland.
Daniel J Voellm, Managing Partner HVS Asia-Pacific is based in Hong Kong andhas provided advice in all major markets across 18 countries in the region. DanielVoellm started his career at HVS in the New York office; as Vice President at theglobal headquarters he conducted a wide range of appraisals and market studiesas well as underwriting due diligence services in 22 US states and in Canada.Daniel brings a strong understanding of the hospitality industry to HVS. Hisexperience in hotel and food and beverage operations in Germany, Switzerland,England and the US is complemented by an Honours Bachelor of Science degreefrom Ecole Hôtelière de Lausanne in Switzerland. Daniel works closely with keyinstitutional and private owners of hotel properties, financiers, developers andinvestors, and has gained a strong understanding of their investmentrequirements and approaches to assessing the market value of investmentproperties. Daniel further advises on property and concept development andstrategy.
Apichaya Wongsuwan is an Analyst at HVS Bangkok. She holds a Master inGlobal Hospitality Business from Ecole hôtelière de Lausanne in Switzerland inpartnerships with Hong Kong Polytechnic University and University of Houston –Conrad N. Hilton College. Prior to joining HVS, she launched a hostel in Thailandwith her Bachelor of Science from the University of Delaware.
[email protected] +66 91 107 0270
[email protected] +66 80 961 0200
[email protected] +852 3628 3871
As of December 2019HVS HOTEL OPERATOR GUIDE 2020 | PAGE XIV