India-based hotel company Oyo Hotels and Homes (“Oyo”), that currently operates more than 13,000 franchised or leased hotels and over 3,000 homes worldwide, is planning to grow intensively within Southeast Asia following an US$800 million investment by Japan-based SoftBank Group (“Softbank”), Canada-based Lightspeed (“Lightspeed”), US-based Sequoia Capital (“Sequoia”) and US-based Greenoaks Capital (“Greenoaks Capital”) in September 2018. In China, its second largest market after India, Oyo counts 260,000 franchised and leased rooms and over 5,000 hotels under franchise in 280 cities. In Indonesia, the hotel company invested US$100 million to strengthen its presence and grew the number of franchised hotels to 150 with a total of 4,100 rooms in six cities. By the end of 2019, Oyo is planning to enter the Bali market. Oyo also aims to invest more than US$50 million in the Philippines, where it currently counts 21 franchised and leased hotels with more than 500 rooms, in order to reach 20,000 rooms across the country’s major markets. Since 2013, Oyo has expanded across 500 cities in China, India, Indonesia, Malaysia, Nepal, United Arab Emirates and United Kingdom.
Vietnam-based VietJet Air (“Vietjet”) will launch direct flights that connect Phu Quoc and Hong Kong from 19 April 2019. Following the opening of the Hanoi/Ho Chi Minh City/Da Nang – Hong Kong routes, it will be the fourth direct route between Vietnam and Hong Kong that operates four times per week with an estimated length of 2 hours and 45 minutes per leg. Phu Quoc, often known as the Pearl Island, has been attracting strong investments in hotels and resorts over the past few years. According to the General Statistics Office of Vietnam, the country welcomed 12.5 million air passengers in 2018, with year-on-year growth of 14.4%. The new route is expected to further strengthen trade, investment, tourism, and cultural exchange between the two regions. Founded in 2011, Vietjet operates a network of 40 domestic routes and 66 international routes, covering major destinations in North and Southeast Asia.
Malaysia-based low-cost airline AirAsia (“AirAsia”) will launch a new route between Bangkok and Brisbane, commencing from 25 June 2019. Operated by AirAsia’s long-haul affiliate, Thai AirAsia X, the nine-hour non-stop service will fly four times per week, bringing an addition of approximately 25,000 arrivals per year. The connection between Bangkok and Brisbane is expected to strengthen trade, investment, tourism, and cultural ties between the two regions. As an aspiration destination for Australians, Thailand is perceived as one of Brisbane Airport’s largest underserved markets. Queensland, on the other hand, is targeting the wider Indian and Chinese markets via the budget airline’s Bangkok hub. According to AirAsia X CEO Nadda Buranasiri, the new service will not only increase traffic between Thailand and Queensland but also provide guests with a lost-cost option to explore Bangkok and over 130 destinations in AirAsia’s network. Prior to the new addition, AirAsia debuted in Australia in October 2007 and currently serves Gold Coast, Melbourne, Perth and Sydney.
According to the Ministry of Culture and Tourism, China received a total of 415 million travellers during the week-long Spring Festival holiday (from 4 to 10 February 2019), which recorded an increase of 7.6% compared with the preceding year. The growth was favoured by a rich variety of traditional cultural and tourism activities organized and held in different parts of the country, which attracted a large number of domestic and international travellers. During this period, China’s domestic tourism revenue went up by 8.2% year on year to reach 513.9 billion. In comparison, 386 million trips were made in China during the last Spring Festival holiday, contributing RMB475 billion to the domestic tourism revenue.
HVS is a leader in global hospitality financial consulting. Hotel owners, developers, investors, lenders, management companies, and public agencies around the world rely on HVS to make informed business decisions. HVS’s commitment to excellence and unrivalled hospitality intelligence is delivered by more than 300 people in over 50 offices throughout the world who specialize in a wide range of hospitality assets including hotels, restaurants, casinos, shared ownership lodging, mixed-use developments, spas, and golf courses, as well as conventions, sports, and entertainment facilities. For more information about HVS visit https://hvs.com