Singapore - Hospitality Sector

Singapore - Hospitality Sector

Postby ishak » Fri Sep 05, 2008 12:35 am

Playtime is over
04 Sep 2008, DBS

Sector Outlook: Neutral. We downgrade the Singapore hospitality sector to Neutral (from Positive). After a strong
showing in 1H08, tourist arrivals data had been weakening in June and July amid worries of a weak US economy and high regional inflation. Moving forward, we expect modest growth as tourists and companies rethink travel plans.

Jun- Jul08 tourism data showed some signs of weakening. Tourist arrivals into Singapore in June and July showed declines of c.4% YoY. While hotel room rates and RevPAR were still higher compared to a year ago, the growth momentum is declining.

Hoteliers’ earnings could have peaked. We believe hoteliers’ earnings could have peaked in 1H08 on the back of strong growth in room rates and stable occupancies. Moving into 2H08, we expect lower earnings as hoteliers could be forced to moderate room rates due to slowing demand.

Medium term outlook remains positive. The medium term outlook for the sector remains hinged on the two Integrated Resorts being completed on schedule in late 2009-2010 and the marina cruise terminal in 2010, which will broaden Singapore’s tourist offerings. Events like Formula One and the Youth Olympics in 2010 will also provide Singapore with integral marketing tools to sell the nation to a worldwide viewing audience.

Stock selection. With the sector facing headwinds in the near term, we remain cautious of stock recommendations, and look for lower earnings risks and visibility as attributes. Our pick for the sector is ART, in which we see value emerging at current levels given its steep discount to its RNAV. Also, its portfolio lease expiry of 8 months will limit potential downside in spot rents. We downgrade CDL HT to Hold, as we see potential earnings risk in 2009. In addition, we ascribe a Fully Valued call for Amara Holdings, which could see earnings at risk from the slowing hotel and property segments.

Ascott Residence Trust : Pan-Asian service residence real estate investment trust
CDL Hospitality Trusts : CDL REIT is a stapled security consisting of hospitality trust with portfolio of hotel assets in Singapore and a business trust
Amara Holdings : Operates hotel and restaurants, provides food and beverage catering services as well as develops and invests in properties.


UpComing Events
(i) Hosting of Formula One. We believe this will bring extrinsic benefits to the local tourism sector in the medium term, when it is broadcasted worldwide during race week. 40,000 tourists are expected to visit Singapore for this event.

(ii) Integrated Resorts in late 2009/2010. The first of Singapore’s two Integrated Resorts, The Marina Bay Sands, is expected to open its doors in late 2009 or early 2010. This is expected to attract an influx of tourists and MICE travelers into Singapore. The completion of Genting’s Resorts World in 2010/2011 will further enhance Singapore’s offering to visitors.

(iii)”Cruise Hub of Asia”. The completion of the new Marina International Cruise Terminal will enable Singapore to capitalize
on Asia’s growing cruise industry. STB is targeting 1.5m cruise passenger throughput by 2015.

(iv) Youth Olympics in 2010. The hosting of the Youth Olympics will enable Singapore to market itself to the world, and to
attract more tourists to the country.
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Re: Singapore - Hospitality Sector

Postby winston » Tue Sep 09, 2008 4:31 pm

Good concept. But they will not be able to bring their BF back ;)

Just like credit cards for Females and Female Insurance Policies...

==========================================

Singapore luxury hotel dedicates floor to the ladies

SINGAPORE, Sept 9 (Reuters Life!) - A luxury boutique hotel in Singapore has set aside a whole floor for women, decking it out with designer amenities and female-only staff.

The Naumi hotel, which opened this year in Singapore's central business district, said the concept was intended to give women travellers a sense of security and privacy in luxurious surroundings.

"There weren't any hotels we knew that had a dedicated floor for ladies," marketing manager Adeline Quek told Reuters.

"More women are travelling around the Asia Pacific, whether it is for work, business or leisure and we wanted to provide them with a sense of peace and a feeling of being at home.


The 40-suite hotel has five ladies-only suites, hidden behind a glass panel on one floor which is accessed by a key card system. A sign on the panel reads "Naumi says... for ladies only" and men are strictly forbidden.

Special female touches on the floor include in-room cosmetics such as make-up remover, toner and aromatherapy products from all-natural Australian brand Aesop and pink and grey flowery wallpaper.

Quek said guests were mainly business executives and well-heeled women on shopping trips or holiday from Europe, Australia, Indonesia and Hong Kong. Occupancy of the floor has been 80 percent since the hotel opened, she added.

And if female guests want to entertain men in their room, Quek said the hotel recommends they stay in their regular suites.
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Singapore - Hospitality Sector

Postby ishak » Wed Sep 10, 2008 12:45 am

Singapore's MICE industry remains strong despite economic downturn
CNA, 09 Sep 2008

Singapore's Meetings, Incentives, Conventions & Exhibitions (MICE) industry has remained resilient in the face of the current global downturn.

Companies have seen as much as 60 per cent growth in sales in the past six months, driven by growing demand in Asia. And the local MICE sector is set to receive a further boost when the convention space at the integrated resorts comes on line.

The industry provides services that most businesses need in good times and bad. MICE customers typically plan far in advance, which also translates into steady revenues.

"Essentially, MICE activities are promoted way ahead. What we are seeing now is of course the effort that's being put in two, three, or even four years ago. What we are seeing today, and in the next two or three years, will be the harvesting (of) the fruits of those labours," said Ko Chee Wah, group MD of Cityneon Holdings.

As a result, MICE firms have been able to find a steady stream of projects, both locally and abroad.

While local firms have been involved as far afield as the Middle East or the Beijing Olympics, industry players are also keeping a close eye on the local market, which is set for a new period expansion.

Attractions such as the coming Universal Studios theme park are expected to create more opportunities within the MICE sector.

"It was reported that the 22 rides are going to cost over a billion dollars, and every two to three years, there will be a refurbishment and there are also new rides being built, so it's going to spawn a whole new industry," said Benedict Soh, executive chairman of Kingsmen Creatives.

The theme park industry is expected to grow 5 per cent annually to hit US$8.1 billion by 2011, according to the International Association of Amusement Parks and Attractions.
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Re: Singapore - Hospitality Sector

Postby kennynah » Wed Sep 10, 2008 2:53 am

MICE should engage the legalised OKTs at geylang as well...
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Re: Singapore - Hospitality Sector

Postby winston » Wed Sep 24, 2008 12:58 pm

From DBS:-

Singapore continues to see weaker visitor numbers in August '08 with 842,000 visitor arrivals, which was a 7.7% decreasefrom a year ago. Moving forward, although Sept'08 sector performance is expected to be boosted by the Formula One Night race held over the coming weekend, weak underlying fundamentals should lead to slowing tourism numbers in the medium term.

Given the lack of catalyst for a re-rating and potential headwinds moving forward, we are maintaining our Neutral Call on the hotel sector.

In terms of stock picks, maintain Buy on Ascott Residence Trust, TP $0.94, which is trading at an attractive 30% discount to RNAV of S$0.94.

CDL Hospitality Trusts looks interesting at current valuation but we view that exposure to slowing RevPAR could lead to weak earnings and thus cap performance in the near term. As such we maintain Hold, TP $1.23.
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Singapore - Hospitality Sector

Postby ishak » Sat Sep 27, 2008 2:00 am

Leaner times for S'pore tourism
STB admits it may miss this year's visitor arrivals target, the first time since the Sars scare

ST, 26 Sep 2008

PLAYERS in Singapore's tourism industry, smarting from three straight months of lower-than-expected arrivals, are predicting leaner times ahead for their sector.

With the United States in the grip of a financial calamity that has the potential to extend around the world, insiders say the tourism sector is in for a rough ride.

'With all the things going on in the world, anyone who is not concerned is living in cuckoo land,' said Mr Kevin Bossino, the general manager of Grand Mercure Roxy in the East Coast.
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Re: Singapore - Hospitality Sector

Postby winston » Tue Dec 09, 2008 8:43 am

- About 10 new hotels offering 5,100 rooms are expected to open in Singapore next year, despite an expected tourism downturn as global economies slow.
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Re: Singapore - Hospitality Sector

Postby winston » Fri Dec 26, 2008 8:37 pm

Visitor arrivals to S’pore drop 9.7% on—year in November

SINGAPORE: Visitor arrivals to Singapore dropped again in November. The Singapore Tourism Board (STB) said 760,000 visitors arrived last month, a drop of 9.7 per cent, compared to November last year.

Indonesia, China, Australia, Malaysia and India were Singapore’s top five visitor—generating markets, accounting for 49 per cent of total visitor arrivals for last month.

STB said since June this year, there has been a decline in visitor arrivals to Singapore, reflecting the continued impact of the worsening global economic slowdown on consumer sentiments.

Thus, visitor arrivals are expected to fall short of the 2008 target of 10.8 million tourists.

STB added that it has focused its efforts to increase visitor spending during the year—end festive period.

Singapore hotels hope to generate S$161 million in room revenue, a drop of six per cent compared to November last year.

— CNA/yt
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Re: Singapore - Hospitality Sector

Postby kennynah » Fri Dec 26, 2008 9:26 pm

well...if they decide to clamp down on joo chiat's red light activities come Jan2009 8-) , even lesser "visitors" can be expected to arrive into singapore next year...

havent you guys heard yet...they wana revert joo chiat road back to its olden days, free of vice...but i was told, this rumour is an old one...
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Re: Singapore - Hospitality Sector

Postby millionairemind » Wed Jan 14, 2009 8:42 am

Published January 14, 2009

Empty rooms, falling rates may dog hotels
Hoteliers eye leisure visitors as corporate business set to fall

By UMA SHANKARI AND NISHA RAMCHANDANI


(SINGAPORE) Hotels in Singapore are in for hard times, with analysts saying that double digit falls in room rates and occupancies could be on the cards in 2009.

Hospitality consulting firm HVS International expects revenue per available room (RevPAR) to decrease to $171 in 2009 and $154 in 2010 - from about $203 in 2008. This translates to falls of 15.8 per cent in 2009 and 9.9 per cent in 2010. In 2007, RevPAR was $175.

Likewise, marketwide occupancy is expected to see negative growth during the first half of 2009, although HVS expects the market to gain momentum in the middle to late 2009.

Marketwide occupancies will fall to 75 per cent and 72 per cent by 2009 and 2010 respectively, HVS said. By contrast, occupancy for 2008 is estimated to be 82 per cent. 'Looking forward, an increase in supply not met by demand levels will lead to decreased occupancy projections,' said David Ling, HVS managing director for Asia.

Bill Barnett, managing director of hospitality consulting firm C9 Hotelworks, also has a sombre set of numbers. 'ARRs (average room rates) look to retreat back to the levels in 2006. RevPAR is forecasted to decline in double digits. Occupancies are set to decline in the region of 7-10 per cent,' Mr Barnett predicted.

And in a Dec 18 note, DBS Group Research estimated that RevPAR will drop by 15 per cent this year from FY 2008 levels.

Hotels BT spoke to said that so far, they are holding rates firm. However, many are offering packages to draw leisure travellers as business from corporate travellers is expected to fall this year.

Hoteliers are certainly aware that tough times are ahead. 'There is a definite softening of the market, in line with the global economic slowdown,' observed Ignacio Gomez, regional vice-president and general manager of Four Seasons Hotel Singapore. Similarly, a spokesperson for Hong Leong Group said that 2009 is expected to be a 'very challenging' year.

The Royal Plaza on Scotts told BT that it expects room rates to decline by 5 per cent this year, while occupancy is forecasted to come in one percentage point lower.

The main problem is the expected drop-off in tourism numbers. DBS, for example, forecasted that the global slowdown in travel could drag visitor arrivals for this year 4 to 6 per cent lower than 2008 levels and 10 per cent from the record 10.5 million visitors registered in 2007.

'This is in line with previous down-cycles in 1997-1998 and 2001- 2003, which declined 2-13 per cent,' the firm said.

To aggravate the situation, the hospitality industry will also see a fresh injection of supply as various new hotels open their doors. Total room stock is expected to grow by 12,000 rooms between now and 2012, of which about 40 per cent was slated for 2009, DBS reckons.

However, given the hefty construction costs coupled with the credit crunch, completion delays are pushing back launch dates - which could help cushion the impact somewhat.

For instance, NTUC Club's 200-room Palawan Beach Resort, which was initially supposed to open last year, has been delayed while Far East Organization's Quincy hotel will see a Q1 2009 opening instead of 2008 as originally planned. As such, the main supply looks set to come only towards the end of 2009 and 2010, with a large chunk stemming from the 2,600-room Marina Bay Sands.

Hotels also appear to be holding on to their staff for now. Four Seasons' Mr Gomez, for example, said that it will continue to hire talent as required and will not compromise on its service standards. The Royal Plaza on Scotts has no plans to trim its workforce either. 'In the weakening economy, it is still our top priority to provide our guests with a comfortable stay. The hotel will ensure that training, and staff development and growth are consistently maintained,' said general manager Patrick Fiat.

Hotels are also expected to undertake various measures to fill rooms - such as tying up with various credit card brands to offer discounts, tweaking its client mix as well as cutting room rates to remain competitive. 'Hotel operators need to try to match guests' expectations of paying lower room rates or creating value add propositions in order to retain market share,' said C9 Hotelworks' Mr Barnett.

Keeping a watchful eye on costs can also go a long way. To combat the slower growth rate for its hotels in Asia, Hong Leong early on embarked on efforts to manage costs and streamline operations, so as to adapt to the changing market conditions. 'As a result, we managed t1/4o achieve revenue and earnings,' a spokesperson said. 'We will continue to evaluate our portfolio for improvement to remain competitive.'
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
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