The hospitality sector in Southeast Asia is expected to grow with the rapid economic expansion, flourishing tourism industry and rising consumption. While Minor is in the process of finalizing its acquisition of a majority stake in NH Hotel Group, Centara, Ascott and AKARYN want to become a global player as well.
Many global hotel chains have luxury hotels in Thailand, including Marriott International, AccorHotels, Mandarin Oriental and Hotel Okura. This abundance of high-end lodging has resulted in a pretty competitive environment. As it becomes too costly at home, hotel operators in Thailand are expanding abroad.
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The Ascott Limited
The Ascott is advancing in the midscale segment by investing about $26 million (€22 million) for a 70% stake in Green Oak Hotel Management, the holding company for TAUZIA.
TAUZIA is one of Indonesia’s top five hotel operators. With this investment, Ascott will get an instant boost of close to 20,000 units spanning 122 hotels across Indonesia, Malaysia and Vietnam. This puts his portfolio at more than 94,000 units, surpassing its 2020 target of 80,000 units.
TAUZIA has six lifestyle brands, comprising HARRIS Hotels, FOX HARRIS Hotels, YELLO Hotels, POP! Hotels, Préférence, HARRIS Vertu Hotels.
Kevin Goh, Ascott’s Chief Executive Officer, said: "While Ascott’s serviced residences continue to see strong demand from expatriates and corporate travelers, we can capitalize on significant opportunities in the middle-class business hotel segment which is expanding at an unprecedented rate […] With our investment in TAUZIA, we look forward to accessing this market, which is one of the fastest growing segments of the hotel industry."
Kevin Goh added: "So besides strengthening TAUZIA’s presence in Indonesia, we will be leveraging Ascott’s global network of about 100,000 corporate clients to bring TAUZIA to international markets […]"
Marc Steinmeyer, Founder of TAUZIA, said: "With a focus on the Indonesia market in the past 17 years, we have used our edge in design and branding to grow six well-known lifestyle brands, targeting different traveler segments ranging from those who prefer luxurious hotels, homely environments, stylish and social spaces to economy accommodation. Many of our hotels are ideal for business as they come with meetings and convention facilities, and food & beverage outlets. As the current management continues in the running of TAUZIA’s hotels and the integration with Ascott’s network, we strongly believe our combined expertise will accelerate TAUZIA’s growth to become a leading hotel operator in the region."
Recently, Centara has inked a management MOU with Asia Investment, Development & Construction Sole Co, an investment and construction company in Laos.
The agreement paves the way for Centara to enter into management agreements for three hotels in Laos with a combined total of 214 keys.
Suthikiati Chirathivat, Centara’s Chairman of the Board said: "This signing ceremony demonstrates our commitment to expansion in Asia as we continue to develop our portfolio internationally. With the expertise from a country leader in development like AIDC and Centara’s record of delivering and inspiring extraordinary guest experiences, we are very excited to be partnering for success on these three exciting projects in Laos."
The three hotels will be operated under three distinct brands in the Centara Hotels & Resorts portfolio: Centara Grand, Centra by Centara and COSI will offer distinctive experiences.
Pheutsapha Phoummasak, President of AIDC Laos stated: "Luang Prabang and Vientiane are very popular destinations for both Thai and international travelers thanks to their perfect blend of historic legacy, wonderful sceneries and modern infrastructure. We are excited to partner with a Centara to bring their trusted brands to these cities and further promote the tourism potential of Laos."
AKARYN Hotel Group
Thailand’s luxury resort specialist has unveiled plans for the significant expansion of akyra, its sustainable lifestyle brand, including its first ever international hotels.
akyra currently operates four hotels and resorts in Thailand. The most recent addition to the collection, akyra TAS Sukhumvit Bangkok, opened in May 2018, providing 50 additional rooms to the portfolio.
Now, AKARYN Hotel Group has revealed an ambitious strategy to triple the number of akyra properties from four to twelve by 2022.
Agreements for new akyra are currently at different stages of readiness in the Malaysia, Vietnam and Bangkok’s Rattanakosin Island, while other projects are being considered in markets including Bali, Ho Chi Minh City and Phnom Penh.
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