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The latest development in the hotel industry

19 January, 2012Thursday

The latest development in the hotel industry

New Hotel Projects - 2012Hotels in Operations -2011Geographic AnalysisMajor Event – 2012Business Outlet - 2012

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New Hotel Projects - 2012

New Hotel ProjectsNew Hotel Projects ◦ 8 hotels projects, approximate 3,676 hotel rooms will

be available in 2012. (source : HKTB)

Global companies still budget-concern Use of video conferencing instead of travellingCommented on high room rates Allow staff to stay at 3-star hotels in businesses trips

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New Hotel ProjectsEmerging transit destination Recent new hotels opening in a well-developed country – SingaporeMore travelers select Singapore for transit instead of Hong Kong if they take long haul flights

New Hotel ProjectsDisloyalty of SME (Small, Medium Enterprises) SME companies shop-around before reserving roomsHotels keep struggling and slash prices for grabbing the businessPrice war

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New Hotel Projects3,676 more guestrooms in 2012 (source: HKTB)

◦ Ibis Hong Kong Sheung Wan – 550 rooms (May 2012) (Sheung Wan) (Accor Group)◦ Courtyard Marriott Hotel – 548 rooms (May 2012)

(Sha Tin) (Marriott International)

New Hotel Projects◦ Cosmopolitan Kwai

Chung Hotel – 560 rooms (Mid 2012) (Kwai Chung) (Far East Consortium International Limited)◦ Cosmopolitan

Kowloon Hotel – 380 rooms (Mid 2012) (Kwun Tong, Kowloon) (Far East Consortium International Limited)

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New Hotel Projects◦Best Western Hotel – 460 rooms (Mid 2012) (Queen’s Road West) (Shun Ho Group)◦Rosedale Kowloon Hotel – 483 rooms (Dec 2011) (Tai Kok Tsui) (Wing On Travel)

New Hotel Projects◦ Express by Holiday

Inn Hotel The Soho –299 rooms (End 2012) (Sheung Wan) (InterContinental Hotels Group)◦Magnificent

International Hotel Kowloon – 396 rooms (Mid 2012) (Austin Road, Tsim Sha Tsui) (Ramada Group / Shun Ho Group)

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Hotels in Operations - 2011

Hotels in Operations - 2011◦ The Ritz-Carlton Hong Kong, Kowloon – 306 rooms

(March 2011) (Western Kowloon) (The Ritz-Carlton Hotel Company)◦ Hotel de EDGE by Rhombus – 90 rooms (March

2011) (Sheung Wan) (Rhombus International Hotels Group)

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Hotels in Operations - 2011◦ Hotel Icon – 262 rooms (April 2011) (Tsim Sha Tsui)

(The Polytechnic University)◦ Best Western Hotel Causeway – 258 rooms (June

2011) (Causeway Bay) (Ramada Group / Shun Ho Group)◦ Dorsett Regency Hotel, Hong Kong – 209 rooms

(June 2011) (Kennedy Town) (Far East Consortium International Limited)

Geographic Analysis (Source: HKTB)

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Geographic AnalysisGeographic Report Feb - Aug 2011 (By Room Nights)

4% 1%

38%

2%3%3%8%

16%

7%

6%

12% Australia & New

Zealand

Canada

China

Hong Kong

Japan

Malaysia

Singapore

Taiwan

Thailand

USA

Others

Major Events - 2012

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Major Events - 2012HKTDC Hong Kong Toys & Games Fair (January 9 – 12, 2012)HKTDC Hong Kong Fashion Week for Fall/Winter (January 16 – 19, 2012)HKTDC Hong Kong International Jewellery Show (February 16 – 20, 2012)

Major Events - 2012Hong Kong International Fur & Fashion Fair (February 25 – 28, 2012)Interstoff Asia Essential – Spring 2012 (March 14 –16, 2012)Hong Kong International Film & TV Market (FILMART) 2012 (March 18 – 22, 2012)Fashion Access (March 28 – 30, 2012)

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Major Events - 2012Hong Kong International Lighting Fair (Spring Edition) (April 4 – 9, 2012)Hong Kong Electronics Fair (Spring Edition) (Apri1 l3 – 16, 2012)HKTDC Hong Kong International Home Textiles Fair (April 20 – 23, 2012)

Major Events - 2012HKTDC Hong Kong Houseware Fair (April 20 – 23, 2012) HKTDC Hong Kong Gifts & Premier Fair (April 27 –30, 2012)Hong Kong Jewellery & Gem Fair 2012 (June 21 – 24, 2012)

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Major Events - 2012HKTDC Hong Kong Fashion Week (July 3 – 6, 2012)HKTDC Summer Sourcing Show for Gifts, Housewares and Toys (July 3 – 6, 2012)

Major Events - 2012HKTDC Hong Kong Watch & Clock Fair (September 5 – 9, 2012)September Hong Kong Jewellery & Gem Fair (September 21 – 25, 2012)Interstoff Asia Essential – Autumn 2012 (October 3 –5, 2012)Hong Kong Electronics Fair (Autumn Edition) (October 13 – 16, 2012)Hong Kong International Lighting Fair (Autumn Edition) (October 27 – 30, 2012)HKTDC Hong Kong Optical Fair (November 7 – 9, 2012)Cosmoprof Asia 2012 (November 14 – 16, 2012)

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BRIEF BUSINESS FORECAST 2012

• Overall the economic environment in 2012 will be a bit volatile

• High uncertainty in the long haul markets• US, Canada, Australia and New Zealand would be less

pessimistic • European markets including the UK, Germany, France

and Italy where we expect a decline in 2012 vs. 2011

BRIEF BUSINESS FORECAST 2012

• Mainland and short haul markets (except Japan) are expected to continue to grow

• For new markets - India, Russia and Middle East to have a single to double digit growth business

• Leisure promotions would be targeted at these new source markets

• Hotel occupancy in 2012 is more or less similar to 2011.

• Hotel room rates increase by 6 to 10%

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Anticipating the decline of business travellersShortening of stay in long haul marketsHotel occupancy and visitor arrivals depend on the Mainland and short haul marketsA bit risky to put all the eggs in one basket

BRIEF BUSINESS FORECAST 2012

Hong Kong should provide more resources and logistic support to other potential markets like the MICE business.

BRIEF BUSINESS FORECAST 2012

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The latest development in the hotel industry

19 January, 2012Thursday