SINGAPORE-listed Hotel Grand Central has signed conditional agreements to buy an Australian hotel and its business for A$47 million (S$55.1 million).

The price for the Courtyard by Marriott Surfers Paradise, Queensland, works out to about A$116,000 per room. The freehold four-star hotel, which has 405 rooms, is located at the corner of Surfers Paradise Boulevard and Hanlan Street, Surfers Paradise. It forms part of Centro Surfers Paradise – the largest shopping centre in the district.

‘A comprehensive review of the hotel will be undertaken with a view to re-branding the property as Hotel Grand Chancellor, Surfers Paradise, upon settlement,’ Hotel Grand Central said yesterday in a statutory filing with Singapore Exchange.

The 31-storey hotel, which has a restaurant and two bars, five conference and meeting rooms, a gymnasium and pool, is being sold by Marriott Vacation Club, BT understands.

Jones Lang LaSalle Hotels brokered the transaction.

Hotel Grand Central said the purchase is subject to it being satisfied that the property is suitable for its requirements, following due diligence.

The acquisition, when completed, will expand the group’s portfolio of Australian hotels to eight. It already has properties in Brisbane, Adelaide, Melbourne and Tasmania.

Hotel Grand Central also owns four hotels in New Zealand and two in Singapore, at Kramat Lane in the Orchard Road area and Belilios Road in Little India.

It said that had the acquisition of Courtyard by Marriott Surfers Paradise taken place at the start of the financial year ended Dec 31, 2009, its earnings per share for the year would have been 7.64 cents, up from 7.47 cents pre-acquisition.

Source: Business Times, 7 Jul 2010

Park Regis hotel opening in Sept; Leisure Inn plans on drawing board

AUSTRALIA-BASED StayWell Hospitality Group is looking to stamp its Park Regis and Leisure Inn brands on more properties in Singapore and the rest of Asia.

The first Park Regis hotel here is set to open in September, and the group also has the country’s first Leisure Inn hotel on the drawing board.

StayWell may be rather new to Singapore, but it is not venturing unassisted. The group’s chairman is Asok Kumar Hiranandani, who built up property firm Royal Brothers with his brother, Raj Kumar.

Park Regis Investments – in which Mr Asok Kumar Hiranandani is a shareholder – won the bid for a piece of state land at Merchant Road in 2007. It has invested around $175 million in total to build the 203-room four-star Park Regis Singapore, as well as a seven-storey office block, on the site.

The hotel is targeting business travellers and room rates could start in the range of $200. StayWell is expecting an occupancy rate of 70-80 per cent. Talks to lease the office space out are underway.

The hotel will be a ‘stunning investment’ in the next few years, Mr Hiranandani told The Business Times. His confidence stems from the hotel’s location near Clarke Quay and from the opening of the two integrated resorts.

To stand out from the competition, Park Regis Singapore will incorporate ‘bits of Singaporean and Australian flavours’, said StayWell CEO and managing director Simon Wan. For a start, it has picked an Australian, Jason Dowd, as the hotel’s general manager.

‘We will make sure that from the composition of the food, the composition of the wine, the television channels in the room to the staff uniforms, there will be some Australian flavour complemented by local themes,’ Mr Wan said.

There are generally few good hotels up for sale in Singapore, so those on the market tend to generate interest among investors and observers. According to Mr Hiranandani, Park Regis Singapore has already attracted investors’ interest.

‘If someone gives us a management contract back for at least 15 years, we’ll be more than happy to sell the hotel . . . The intention of bringing the brand to Singapore was to take it out of Australia and expand it to Asia,’ he said.

‘But I’d rather open the hotel first and get the income going. If it’s an attractive price, we’ll take the offer and buy another site.’

StayWell hopes to follow up with another hotel here under the three-star Leisure Inn brand. The Park Regis and Leisure Inn lines will complement each other, Mr Wan said, adding that there is strong demand for well-located and well-managed hotels in the three-star market.

He cited the success of Ibis Singapore as an example. The hotel, managed by another hospitality group Accor, opened in February last year and has achieved an above 90 per cent occupancy rate in the last three months.

But StayWell will not be rushing into any deal just so it can set up the Leisure Inn hotel. ‘Because of high land costs, we have to be very careful in approaching this,’ Mr Hiranandani said.

StayWell has 24 hotels in its portfolio and owns 14 of them. The group is looking to expand in Asia, and is in negotiations to buy 38 hotels in China.

Mr Hiranandani also said that he has bigger plans for StayWell but declined to elaborate. All he shared was: ‘We are the only unlisted hotel operator out there.’

So is StayWell eyeing a public listing? Mr Hiranandani’s son Bobby, who has been involved in the day-to-day running of his father’s hospitality business, said: ‘There are many options we are looking at. A listing is somewhat possible down the road.’

Source: Business Times, 29 Jun 2010

A new breed is standing out from the masses with designer details and special perks

(NEW YORK) A new breed of hotels is trying to stand out from the masses with designer details and memorable perks and prices around US$250 a night.

Finding a decent place to sleep in New York City has never been easy. Traditionally, you either had to spend a tonne of money (the Ty Warner Penthouse at the Four Seasons for US$35,000 a night, anyone?) or scrimp and hope for the best (warning: a recent search for ‘bed bugs’ on TripAdvisor found 877 mentions for city hotels).

What is a budget and style-conscious traveller to do? Go for the new middle. In a city that still boasts one of the nation’s highest room rates (US$238 on average in Manhattan, according to Smith Travel, which tracks the industry), hotels aiming for the midrange are reaching new heights.

The trend began about three years ago, with a trickle of boutiquey places like the Pod, the Ace and the Jane – which offered a patina of style without the premium prices. It has accelerated in recent months, with a raft of new hotels promising cool design, nods to local flavour and wallet-friendly rates of about US$200 to US$250.

Call them budget boutiques. But instead of coming from daring young hoteliers, many are being rolled out by chains like InterContinental and Wyndham in a bid to attract a hipper clientele.

‘There’s a huge wave of consumer demand, especially with the younger Gen Y or millennials, for properties that have some level of style to them,’ said Sean Hennessey, founder of Lodging Advisors, a hospitality consultant firm.

In May, I slept in some of these new hotels. Despite their novelty, some were already victims of their own cliches. Rooftop bars, rainfall showers and iPhone docks were everywhere. Still, rooms were large by the city’s pint-size standards, service was sharp, and for the moment, they offer some of the best values around.

Distrikt Hotel

Why book? On an exhaust-choked block next to the Port Authority bus station, three new cookie-cutter hotels are stacked together like cereal boxes in a configuration that hotel bloggers have started calling a ‘tri-pack’. Distrikt, next door, is different: It has a simulacrum of soul. This is impressive, not only because of its unseemly location – within shouting distance of a homeless shelter and a parole office – but also a kitschy design conceit: Every floor takes its cue from a New York City neighbourhood.

Room: My standard room was on the 28th floor: Central Park. Don’t expect a wax statue of Frederick Law Olmsted. The only nods to the famous park were photo collages that hung in the room and hallways.

Needless to say, the actual park wasn’t visible from the window, though tantalising glimpses of the Hudson River were. The room itself was a beige rectangle furnished with the type of inoffensive contemporary furniture one might find in a West Elm catalogue.

Vibe: Blame the sketchy neighbours, but parts of the hotel feel as though they’re under lockdown. Key cards are needed to operate the elevators, and the marble-and-steel lobby is a tad cold, despite a 12-foot vertical garden. An adjacent lounge, called Collage, looks like a modern airport bistro. It serves breakfast by day, and drinks and bar food by night. On a recent Friday evening, it was empty. ‘This is New York City,’ said the young bartender. ‘Who wants to stay inside their hotel?’

Mints: An organic fudge brownie awaits you in the room, along with a personalised welcome letter – nice touches for a hotel of this class. There’s no fitness centre, but free passes are available to the nearby Mid City Gym. You can check your e-mail on one of three large Mac screens in the lobby, but be prepared to wait.

342 West 40th Street, between Eighth and Ninth avenues; (888) 444-5610; distrikthotel.com; free Wi-Fi; breakfast for US$14.95; 155 rooms from US$209.

Eventi Hotel

Why book? Straddling the higher end is the Eventi, a 292-room hotel that opened last month in northern Chelsea. Operated by Kimpton – a San Francisco-based chain that helped pioneer the budget boutique niche – it offers doses of luxury that are unusual at this price range. There’s clever design, 24-hour room service, a large terrace, a sunny gym, a spa that offers something called spirulina body wraps, and even dog and cat massages.

Room: The standard queen was sleek and handsome, with custom-made furnishings (dark woods, cloud-gray upholstery, heavy drapes) that felt rich. It had a risque side: a huge mirror faced the bed, Frette robes were trimmed with zebra prints, the honour bar was stocked with an Intimacy Kit (US$6). Other high-end perks await in the marble-tiled bathroom. There was an elongated tub, a magnifying makeup mirror and bottles of musk-scented Italian hair products.

Vibe: It’s a work in progress. Planned for October are a Basque restaurant by Jeffery Chodorow, a plaza with a movie screen and whiskey bar. Meanwhile, the lobby – with cave-red marble and quirky seating nooks – fills up during the free wine hour that begins at 5pm. For breathing room, take your glass to the wraparound terrace on the fifth floor, furnished with terra-cotta planters and oversize wicker love seats.

Mints: No Pringles here. The minibar was stocked with goodies like blueberry acai Gummy Pandas (US$4), Late July organic crackers (US$3), and Alba Botanica shave cream (US$5). There’s even a 375-millilitre bottle of Absolut vodka, big enough for an impromptu party. Service was polished. A free toothbrush and hair straightener were delivered in less than five minutes.

851 Avenue of the Americas, between 29th and 30th streets; (212) 564-4567; eventihotel.com; Wi-Fi is US$10 per day (free for Kimpton rewards members); a breakfast buffet is US$22; 292 rooms starting at US$249 (at US$399 once introductory rates finish in fall)

Fashion 26

Why book? A quick step from the Fashion Institute of Technology, this shiny new hotel by Wyndham tries hard to live up to its name.

There’s a Best Dressed Guest contest held occasionally (winners get room upgrades), the Mondrian-like mural above the front desk is made from thread spools, and the concierge keeps tabs on sample sales. No, you won’t see a gaggle of models during check-in, but the hotel does have fun playing dress-up.

Room: A standard room was maybe a size medium, with plenty of nods to fashion: buttons on the door numbers, a merino herringbone throw on the bed and mint-green polka dots on the walls. Housekeeping staff members wear custom dresses that hint, naughtily, at French maid. A big window offered postcard views of the Empire State Building, as well as peeks inside garment showrooms across the street.

Vibe: Despite all the sartorial trappings, guests dressed like any in your typical off-the-rack hotel. On a recent Monday, there were FIT parents in the slate-gray lobby, and suits trading airport stories in the elevator. There’s a chatty cocktail scene at the lobby bar, but Rare, the fiery orange dining room, was desolate. Maybe the ho-hum menu – part burger joint, part formal steakhouse – was to blame. A rooftop bar is expected to open this month.

Mints: Service was elegant and unobtrusive. Arriving two hours before check-in was no problem; the attendant had a room ready. Come back from dinner and the bed is turned down: the pillows stacked upright, the comforter removed, a note left on the sheets with tomorrow’s weather, and a mint. There’s also a decent gym in the basement and a single-cup Keurig coffee maker in the room.

152 West 26th Street, between Avenue of the Americas and Seventh avenues; (212) 858-5888; f26nyc.com; free Wi-Fi and a US$15 cold and US$19.70 hot breakfast buffet, along with à la carte; 280 rooms from US$229.

Hotel Indigo

Why book? Hotel Indigo may be the prototype of this new hotel class. Started by the InterContinental Hotels Group, which owns Holiday Inn and other chains, the Indigo brand aims to be affordable yet stylish, though its first property in New York City doesn’t quite hit the mark. It opened last October in the heart of the flower district, so it is hemmed on all sides with orchids and pussy willow.

There are flowers inside the hotel, too, though mostly of the printed variety. Hallway carpets with comically giant indigos and carrot-orange walls conspire to create a visual jungle. Too bad the floral theme didn’t extend to the scent. The lobby smelled more like cleaning fluid than roses.

Room: The oversaturated colour scheme continued inside the room, with a headboard stitched together from swatches of reds, oranges and yellows. Still, the room was bright and airy, with hardwood floors, a small desk and a floor-to-ceiling print of sewing needles. The view was quintessentially New York: fire escapes and the back of old factory buildings. As in many of these budget boutiques, the bathroom was sleekly appointed. In this case, however, the shower lacked water pressure, and a puddle from the previous night was still on the shower floor in the morning.

Vibe: An oddball mix. Foreign tourists in I (HEART) New York T-shirts sat in the lobby. Office workers crowded the smoky rooftop Glass Bar. And at Blu, its street-level Italian restaurant, there was, well, no one. The soupy risotto I was served one night may have something to do with it.

Mints: Service was unexpectedly attentive; the front desk called shortly after check-in to make sure everything was in order. In the basement, there’s a basic business centre (two desktop computers) and a well-equipped, if petite, fitness studio with free weights and treadmills.

127 West 28th Street, between Avenue of the Americas and Seventh Avenue; (212) 973-9000; indigochelsea.com; 122 rooms from US$269; US$15.99 breakfast buffet, and à la carte brunch served on weekends. — NYT

Source: Business Times, 22 Jun 2010

New Studio M hotel aims to plug gap between four-star and budget hotels

HONG Leong Group is hoping to grow its budget hotel segment in Singapore and the region, said executive chairman Kwek Leng Beng.

The group yesterday unveiled the latest addition to its Singapore hotel portfolio – the $110 million Studio M. The price tag for the hotel at Nanson Road in the Robertson Quay area includes the $45.8 million Hong Leong paid for the land in late 2006.

The price works out to $518 per square foot of potential gross floor area.

The 360-room Studio M – held under Hong Leong’s London-listed unit Millennium & Copthorne Hotels – boasts unique loft-style rooms, which the conglomerate says is a first in Singapore. The property, which was designed by Italian architect Piero Lissoni, has achieved over 80 per cent occupancy since it opened its doors in late March.

The Studio M brand will plug the gap between four-star and budget hotels in Singapore, said Mr Kwek, who was speaking to reporters at the hotel’s official opening yesterday.

‘Young and savvy travellers looking for designer- type, quality accommodation will find Studio M’s new concept and brand appealing,’ said Mr Kwek. ‘Not only will Studio M set a new benchmark in the local hospitality scene, we believe that it has potential to grow its presence overseas as well.’

But while he is looking for opportunities to grow the Studio M brand in both Singapore and the region, Mr Kwek also revealed that he is working on another concept for a ‘strictly budget’ chain of hotels.

Hong Leong is best known in Singapore for its luxury hotels such as the Grand Copthorne Waterfront Hotel and Orchard Hotel.

For the budget hotel business, Mr Kwek said he is looking at Singapore as well as Chinese cities. But the conglomerate will avoid saturated markets as well as places with volatile and unstable economies, he added.

Source: Business Times, 18 Jun 2010

Kwek Leng Beng opens the door to new budget concept at launch of Studio M chain

A NEW kind of budget hotel is on the drawing board at Millennium & Copthorne Hotels, even as it officially opens its new studio-inspired chain here.

Chairman Kwek Leng Beng said at the launch of the firm’s first Studio M outlet yesterday: ‘I’m a developer, I always like to create something that is exciting, that nobody has had before.’

He said he intends to introduce a ‘real budget, budget hotel’ that ‘nobody has seen’, although there are no firm details yet.

The price of land will be one factor that will influence the firm’s plans, but Mr Kwek believes the concept is sound.

‘Budget property is lacking in Singapore,’ he said, but ‘the Government is helping by offering sites’. He added that ideal locations would be outside of the central area, unless the Government could give shorter leases with lower premiums for centrally located land sites.

The firm’s main event yesterday was the launch of the Studio M Hotel in Robertson Quay. It is aimed at young travellers who want designer-type, quality accommodation at affordable prices.

There are 360 rooms, each about 22 sq m in size, with free wireless connectivity.

‘This is not a five-star hotel,’ Mr Kwek said, but it fills ‘the gap between a good four-star and a budget hotel’ and could be viewed as ‘limited service, with a twist’.

The hotel has been operating since March 26 and has achieved over 80 per cent occupancy, said a statement from M&C Hotels yesterday. The $120 million development is charging opening rates of $160 for weekends and $180 for weekdays. Normal rates will begin at a minimum $200.

Mr Kwek has said in the past that he intends to take the Studio M Hotel set-up overseas, and plans are under way for an outlet in India, industry sources told The Straits Times.

Enquiries have already come in from the Middle East and China, said Mr Kwek, who is also keen to introduce the brand to New Zealand.

M&C Hotels runs about 30 hotels in New Zealand, saying ‘this is a concept they’ve never seen’, in reference to the studio apartment and hotel hybrid model.

Mr Kwek’s outlook for the hospitality sector is positive but, while ‘projection is a good guideline, it is not necessarily the gospel truth’.

A lot also depends on the way governments in Asia choose to address concerns surrounding overheating markets, he added. Doing too much ‘could kill the recovery’ and sometimes, when ‘you press the button too hard, the engine might stall’.

He also said room rates should improve this year ‘because we are still 18 per cent below the peak of 2008′, adding that average room rates in Singapore are among ‘the cheapest around’, compared with those in Western countries and even in other parts of Asia.

Mr Kwek added that it was important to increase the length of time that guests stay. The average length of stay here is four days, and he hopes to increase this to 41/2 to five days at his hotels, a change that could bring significant economic benefits.

Source: Straits Times, 18 Jun 2010

Plot next to Central Mall could draw bids of $378 psf ppr or more

A DEVELOPER has shown interest in a 99-year hotel site at the junction of Clemenceau Avenue and Havelock Road, committing to pay at least $40.8 million or $328 per sq ft per plot ratio (psf ppr) for it.

The Urban Redevelopment Authority (URA) said yesterday that it will launch the land parcel for tender in about two weeks’ time. Property consultants expect to see considerable demand for the site.

The plot became available for sale through the reserve list system in March 2008. It measures 0.55 ha, has a maximum permissible gross floor area of 124,377 sq ft, and can accommodate a development of up to seven storeys high. URA estimates that some 195 hotel rooms can be built on the site.

The land parcel is right next to Central Mall, and is within walking distance to entertainment and food and beverage outlets at Riverside Point and Clarke Quay. The area is also home to several other hotels such as Swissotel Merchant Court Hotel and Novotel Clarke Quay Hotel.

Cushman & Wakefield managing director Donald Han believes there could be at least five bidders for the site, and the top bid could reach $480-500 psf ppr.

In September last year, URA sold a 99-year hotel plot at New Bridge Road for $401 psf ppr.

‘The hotel market has improved this year because of strong tourist arrivals,’ Mr Han said. In April, the number of visitors to Singapore grew 20.4 per cent year-on-year to 938,000.

He added that the site at Havelock Road has a central location, and it could be suitable for a three and a half to a four and a half-star hotel.

Colliers International research and advisory director Tay Huey Ying also expects to see ‘a handful’ of bidders for the site. The site is not too big, so the total investment sum should be rather affordable, she said.

The hotel could target corporate visitors, to coincide with the increasing stock of office space completing in the central business district, she added.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak projects that there will be four to eight bids for the site, ranging from $378-426 psf ppr.

Source: Business Times, 15 Jun 2010

99-year leasehold plot next to Central Mall and near S’pore River to be put up for sale in 2 weeks

A HOTEL site suitable for a medium-size development, at the junction of Clemenceau Avenue and Havelock Road, will be put up for sale in two weeks.

Yesterday, the Urban Redevelopment Authority said an unnamed developer has committed to bid at least $40.9 million for the 0.55ha site, thereby triggering the tender process.

The 99-year leasehold site is next to Central Mall and is within walking distance of the Singapore River and Clarke Quay. It is also close to the financial district.

The site can yield a maximum gross floor area of 11,555 sq m and can be built up to seven storeys.

A hotel on the site would attract mostly business travellers, said Cushman & Wakefield managing director Donald Han.

He expects bids to come in at between $480 and $500 per sq ft per plot ratio (psf ppr). The trigger bid was $328 psf ppr.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak expects bids of $380 to $430 psf ppr.

The Clemenceau Avenue site has been on the Government’s reserve list since March 2008. Under this list of development sites, a site will be put up for tender only after a developer commits to a bid that reaches a minimum level set by the Government.

Mr Han expects more investor interest in Singapore’s hotel market, which, he said, is the Asia-Pacific’s star performer.

Singapore Tourism Board data shows that average hotel occupancy rose to 85 per cent in April, up 15 percentage points from last year. Average room rates rose by 12.2 per cent to $211, while revenue per available room surged 36 per cent to $179.

In a separate announcement, Credo Real Estate said that Hoi Hup Realty had recently agreed to buy Pender Court in a collective sale for $95 million.

This price works out to $1,007 psf ppr, based on a plot ratio of 1.44. The owners of the 48-unit estate stand to reap an average of $1.98 million per unit.

Meanwhile, the freehold 32-unit People’s Mansion in Geylang has been launched for collective sale.

Source: Straits Times, 15 Jun 2010

Hotel attracts interest, could fetch more than $200m

(SINGAPORE) Ibis Singapore on Bencoolen, a three-star hotel that opened its doors in February last year, has been put up for sale via a private tender.

Results of the tender will not be out until next month, though market watchers are guessing that the 538-room hotel could fetch more than $200 million.

Ibis Singapore is owned by hospitality group Accor and real estate investor LaSalle Investment Management in a 30:70 venture. Accor also owns the Ibis brand. According to past reports, the partners put in $145 million to develop the hotel at Bencoolen Street after winning the tender for the site in 2006.

Jones Lang LaSalle Hotels is handling the tender. According to its managing director of investment sales in Asia Mike Batchelor, the private tender began last month. As part of the deal, Accor will continue to operate the hotel under a long-term management agreement, meaning that the Ibis brand will stay.

The owners have been receiving ‘a number of unsolicited approaches from investors’ to buy Ibis Singapore, he told The Business Times. As a result, ‘they decided to formally offer the asset for sale.’

Interest in the hotel has come mainly from private families and high net worth individuals, from not just Singapore but also regional countries such as Malaysia and Indonesia, Mr Batchelor added.

Market watchers felt that Ibis Singapore is a fairly attractive asset, given that it is new, well located, and has been performing relatively well. Accor Asia Pacific spokesman Evan Lewis said that for the last three months, the hotel has ‘achieved occupancies in the mid-90 per cent with an average rate of around $140.’

A consultant who declined to be named pointed out that ‘hotels in Singapore are very difficult to come by’ so there will be demand. ‘It’s only about whether the pricing is sensible enough,’ he said.

Another consultant felt that there is an insufficient number of good three-star hotels here. This puts Ibis Singapore in good stead, especially with property funds returning to scout for investments. ‘There’s quite a lot of money starting to come back globally,’ he said.

With Singapore’s hospitality industry picking up, some market observers even suggested that it might be better to sell the hotel later, when it might fetch a higher price.

‘Most hoteliers would want to hold on to their properties given the robust outlook’ for the hospitality sector, an analyst said. One reason is that the integrated resorts could draw more tourists later.

In April, the number of visitors to Singapore grew 20.4 per cent year-on-year to 938,000. Consultancy HVS Global Hospitality Services recently projected that the average room rate will rise 10-15 per cent this year from $191 last year.

Within the hospitality industry, fears of an oversupply of hotel rooms have started fading. Some upcoming hotels include Park Regis Singapore and Ibis Novena.

Source: Business Times, 15 Jun 2010

A hotel site in Clemenceau Avenue and Havelock Road will be put up for sale in two weeks.

The Urban Redevelopment Authority (URA) said the 99-year leasehold site can generate a maximum gross floor area of 11,555 square metres.

The Reserve List site spans 0.55 hectares and a developer will be able to build a hotel development of not more than seven storeys on the plot.

URA said a developer has committed to bid at least S$40.8 million for the land parcel.

The launch date will be announced later.

URA added that the tender period for the land parcel will be about eight weeks.

Source: Channel News Asia, 14 Jun 2010

(LOS ANGELES) Hyatt Hotels Corp, the lodging chain controlled by the Pritzker family, plans to put more money into developing properties, president and chief executive officer Mark Hoplamazian said.

The Chicago-based company, which had 434 locations as of March 31, is buying and investing in joint ventures and debt financing to develop North American hotels. The strategy contrasts with rivals seeking to pare holdings.

‘We are willing to invest our own money to see a developer put the shovel in the ground sooner than later,’ Mr Hoplamazian said during an interview on Tuesday at the soon-to-open Andaz hotel on 41st Street and Fifth Avenue in Manhattan.

Marriott International, the largest US hotel chain, and Starwood Hotels & Resorts Worldwide, the third-biggest, have said they are selling stakes in properties to focus on the operation of their hotels.

Starwood sold two of its W Hotels in Manhattan to St Giles Hotels in April as part of the plan.

Hyatt also is looking to expand the Grand Hyatt and boutique Andaz brands through new development, recapitalising stalled projects or taking over other hotels, Mr Hoplamazian said.

The company in April won the management contract for the Aviara Resort in California, formerly a Four Seasons Hotels venue, and said it will rebrand the property as a Park Hyatt. It converted the Ivy Hotel in San Diego into an Andaz in February.

Hyatt, which raised US$1.09 billion in an initial public offering last year, opened an Andaz property on Wall Street in Manhattan this year. It expects to debut the 41st Street location next month.

Mr Hoplamazian compared the brand to Starwood’s W chain. ‘The customer base is large enough and they are robust spenders on travel. We think for sure that Andaz has every bit of the potential as the W Hotel chain.’ – Bloomberg

Source: Business Times, 10 Jun 2010