In the news: HRS’ investment in The Lido Group, profitable 2015 for APAC carriers, Park Hotel’s first hotel in Malaysia
HRS expands hotel portfolio with investment in The Lido Group
HRS expands hotel portfolio with latest investment. (Image credit: AdamG1975/ iStock)
Global hotel solutions provider HRS extended its reach into the Australia market with investment in The Lido Group, which gave it an additional 6,700 hotels.
HRS said by taking this step it “is extending its global portfolio and is now active in all of the top business travel markets in the world.”
No financial details of the transaction were revealed in the announcement.
Established in 1987 and headquartered in Sydney, The Lido Group, is a privately-owned business providing integrated hotel booking and payment solutions to major Australian corporations and government organisations.
The two companies will work together to share hotel content, integrate technology solutions and jointly service global customers, both directly and in partnership with key travel management companies (TMCs).
HRS’ hotel partners worldwide will benefit from a pool of potential new business travellers. Important destinations for Australian business travellers are Singapore, Hong Kong, the US, France, and the UK.
“This development offers huge potential for HRS, with the Australian business travel accommodation market now the seventh largest worldwide,” said Tobias Ragge, CEO of HRS.
He added that Australia is also a global leader when it comes to companies booking their business travel accommodation online.
“By tapping into this market HRS is now active in all of the top 10 business travel markets.”
Steve Mackenzie, The Lido Group chief executive, added that the “new partnership will provide the platform for the company to further accelerate its expansion.”
APAC airlines return to profitability
APAC airlines flew into profitability in 2015 (Image credit: Bangkok Airways)
2015 was a good year for Asia Pacific carriers as they flew into profitability propelled by sustained growth in passenger markets, lower fuel prices and operating efficiencies, revealed the Association of Asia Pacific Airlines (AAPA).
According to the association’s preliminary figures, APAC airlines recorded US$6.9 billion in combined net earnings in 2015, an upswing from net losses of US$1.2 billion in 2014.
Overall, the region’s carriers achieved operating revenues of US$166.9 billion for the calendar year, 5.6% less than the US$176.8 billion in 2014.
Passenger revenue, however, fell by 5.4% to US$128.4 billion due to a decline in yields despite the growth in traffic demand. This was offset by a 12.6% fall in combined operating expenses to US$153 billion, driven by a 31.4% decline in fuel expenditure to US$41.2 billion.
Within the year, global jet fuel prices dropped significantly, by 43.5% to an average of US$64 per barrel. As a result, the share of fuel expenditure as a percentage of total operating costs declined by 7.4 percentage points to 27%.
“Asia Pacific carriers saw a welcome return to profitability in 2015, after suffering aggregate losses in the previous year. The region’s carriers registered a significant operating margin of 8.3%, compared with the 1% margin achieved in 2014,” said Andrew Herdman, AAPA director general
Looking ahead, Herdman added: “Asian carriers are encouraged by the sustained growth in passenger demand, but continue to face a challenging operating environment characterised by intense competition, cost pressures and volatile currency markets.”
Park Hotel enters Malaysia with first hotel in Melaka
Park Hotel Melaka to open in first half of 2019. (Image credit: Park Hotel Group)
Singapore-based Park Hotel Group is planting its flag in Malaysia with the first hotel in the historic city of Melaka, a UNESCO world heritage site.
The hotel group has inked a management contract with a subsidiary of Jaya Mapan Sdn Bhd to manage Park Hotel Melaka, slated to open in the first half of 2019.
This is the group’s sixth country and ninth city in its development roadmap to grow its brand footprint across Asia Pacific.
“Global outbound travel is strongly driven by Asia Pacific, and with Park Hotel Melaka this partnership allows us to strengthen our presence in important markets such as Malaysia,” said Allen Law, chief executive officer of Park Hotel Group.
Jaya Mapan, based in Melaka, focuses on property development in residential, commercial and retail sectors. The company specialises in mixed-use developments and is committed to creating sustainable urban spaces.
The 245-room new build hotel will be located in the heart of Kota Laksamana’s entertainment and business district. It will be part of The Green, a mixed-use development that also comprises retail outlets, shop offices and serviced apartments.
The group will open Park Hotel Farrer Park, its fifth hotel in Singapore at the end of this year. Its first hotel in Australasia, Park Hotel Adelaide, is due to launch in 2018.
