In this week’s roundup of news from the Asia/Pacific region: MGM China’s Q2 performance; STR monthly data; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
Leisure demand helps MGM Resorts as it waits for groups
During MGM Resorts International’s second-quarter earnings call, company President and CEO Bill Hornbuckle said MGM China’s properties remained open during the second quarter, but Macau continued to see significant year-over-year declines because of the coronavirus pandemic, reports HNN’s Bryan Wroten.
What’s encouraging, however, was the lifting of a 14-day mandatory quarantine between Guandong and Macau. The borders of Hong Kong still remain shut, though, and the Individual Visit Scheme and tour visas program haven’t restarted.
“We continue to believe that this market can recover quickly once the current restrictions are lifted,” Hornbuckle said.
STR: Asia/Pacific hotel performance for June 2020
In June, hotels in the Asia/Pacific region reported continued improved performance compared to the previous month, according to data from STR, parent company of Hotel News Now. However, the results are still down compared to this time last year.
Hotels reported occupancy dropped 43% to 38.8% while average daily rate fell 35.2% to $58.86, resulting in revenue per available room falling 63.1% to $22.82.
“Although up from May, the absolute levels in each of the three KPIs were the lowest for any June on record in the region,” the news release states.
Hong Kong hotels counting on city’s resiliency
Hoteliers in Hong Kong are counting on the city’s history of weathering significant challenges will come through again as they face political protests, new security laws and the U.S. stripping the special autonomous zone of its special trading status with the U.S., reports HNN’s Terence Baker.
Jesper Palmqvist, area director, Asia-Pacific at STR, said Hong Kong hotels have seen definite performance highlights over the last month or two even as they face challenges from protests and the pandemic.
“Saturday staycations in Hong Kong are bringing … occupancies up to 50% recently, and they used to be 40% a month ago,” Palmqvist said. “Weekday baseline has also lifted from 30% to almost 40%, so there has been a lift in general.”
Deals and developments
- Chile-based The Garcha Group will rebrand Six Senses Duxton and Six Senses Maxwell, both in Singapore, as The Duxton Reserve Hotel, Autograph Collection, and The Maxwell Reserve Hotel, Autograph Collection. The two hotels will open to guests in late 2021.
- India-based The Indian Hotels Company will acquire the remaining 14.28% stake in its subsidiary, ELEL Hotels and Investments Limited, from the Nanda family, making it the 100% leasehold owner of the Sea Rock hotel site in Mumbai by 31 December 2021.
Compiled by Bryan Wroten.