First-ever Lodging Development Pipeline for Asia Reveals China as Having the World's Largest Development Activity Outside the U.S.

First-ever Lodging Development Pipeline for Asia Reveals China as Having the World's Largest Development Activity Outside the U.S.

June 05, 2006

    PORTSMOUTH, N.H., June 5 /Xinhua-PRNewswire/ -- Lodging
Econometrics (LE), the Industry Authority for Hotel Real
Estate, announced the completion and publication of the
first-ever comprehensive Lodging Development Pipeline for
all countries in the Asia-Pacific region.

    In Asia, there are 386 actively pursued construction
projects planning an astonishing 111,285 rooms.  The
average project size is an anticipated 288 rooms, which is
certain to fall as the permitting process unfolds and
projects migrate forward through the Pipeline.  68% of all
projects will be four- and five-star hotels, located in
Urban Centers and neighboring suburbs, or in resort and
casino destinations.

    "LE's Asia Pipeline covers all countries in the
region from Japan in the north to Australia in the south,
and from Polynesia in the east to Afghanistan in the
west," said Patrick Ford, President.  "It's been
a massive task to compile detailed information for each
individual hotel project in the region.  We were encouraged
to `go global' by our Wall Street clients who find growing
offshore development to be a significant component of their
analysis of U.S.-based hotel companies and real estate
investment groups."

    China, India and Thailand are the Asian Leaders

    China is pulsating with hotel development.  China has
188 hotels in the Pipeline, which represents 48% of all
development in Asia.  71,967 rooms are planned.  134 of the
188 projects are four- or five-star rated and 153 are
greater than 200 rooms.  124 projects, or 66% of the total
are Under Construction.  46 of them are scheduled to open
in the second half of this year.

    India has the second largest Pipeline with 78 hotel
projects planning 12,244 rooms.  India's project count has
up ticked only recently and is evenly distributed over the
three construction stages -- Under Construction, Scheduled
to Start in the Next 12 Months, and Early Planning. 
Projects are comparatively smaller, averaging around 150
rooms.  44% of the projects are located near outsourcing
office centers in cities like Bangalore, Chennai, Hyderabad
and Mumbai.  The remaining projects are widely dispersed
throughout the country.  51% are of a one- to three-star
economy and mid-market classification reflecting a high
level of native travel within the country.  Only 38
projects, or 49% are classified as four- or five-star
operations.

    In third position is Thailand with 39 projects in the
Pipeline, 31 of which, or 79%, are Under Construction. 
Many are part of the redevelopment surge following the
tsunami of December 2004.

    Lodging Growth is Explosive in Beijing, Shanghai,
Macau, and Inland Manufacturing Centers

    Leading the development rush in China are large cities
along the coast and manufacturing centers slightly inland. 
With modern infrastructure systems -- airports, highways,
mass transit, etc. already in place, and with Pipelines
seeded over the last fifteen years, iconic, world class
hotels have been coming out of the ground at a phenomenal
pace.

    "It's a development period like none other,"
said Ford.  "It's being ratcheted forward by an
explosion of investment capital into the fastest-growing
economy in the world.  China also has the fastest-growing
inbound tourist flows of any country and is projected to be
the largest tourist destination in the world by 2020.  China
is in a terrific hurry to modernize and possesses an intense
desire to build world-class accommodations for the 2008
Olympic Games and for a series of important worldwide
exhibitions already scheduled.  Lodging development in
China is led by three cities with some of the most dynamic
Development Pipelines anywhere."

    Beijing, which will host the Olympic Games in 2008, has
25 hotels in the Pipeline.  All but seven are of four- or
five-star quality.  14 are already Under Construction. 
Recent statements from Chinese officials indicate a need
for another 65 hotels of various star ratings for the
Olympics.

    Shanghai, anxious to be once again viewed as the
world-class financial center it was at the turn of the last
century has 24 projects in the Pipeline, 14 of which are
Under Construction.  All but five will be four- or
five-star operations.  Ford said, "The Pudong region
on the east side of the Huangpu River, arguably the most
successful Special Economic Zone (SEZ) anywhere, ever, has
been sprouting world-class hotels in the last three years
and will continue to do so through the end of the
decade."

    Macau, already a casino mecca, and the adjacent
destination resort areas of Taipa and Coloane have a total
of 23 projects in the Pipeline, nine of which are new Las
Vegas-style casino projects.  The average size for the
planned projects exceeds 700 rooms.  14 projects are
already Under Construction.  Ford commented that the goal
for Macau is not to simply rival, but to eventually surpass
Las Vegas as an international gaming destination. 
Significantly, important Las Vegas developers are already
heavily invested in Macau:  Sheldon Adelson of the
Sands/Venetian, MGM Grand and Steve Wynn.

    Another six secondary cities are enjoying a development
boom of between four and eight four- and five-star projects
each.  Most are manufacturing centers and are in the
eastern part of the country.

    Opportunities Are Huge for International Hotel
Companies

    Because the projects are ultra-luxurious, require
incredibly large capital investments and come with a
playing field that is both complex and highly risky, there
is little opportunity for small hotel companies or investor
groups in China.  But, there is enormous opportunity for the
major international hotel companies with extensive resources
who already have development and operating groups in the
region.  Global brands that have strong reservation
systems, popular frequent traveler programs and highly
effective convention sales teams are preferred venture
partners for the iconic developments.

    For those companies, China has been, and will continue
to represent, the greatest opportunity in the world to grow
rapidly as an international lodging company.  U.S.-based
companies like Marriott, Starwood, Hyatt and Hilton;
international companies like Four Seasons,
InterContinental, Kempinski and Accor; and Asian-based
companies like Shangri-La; were on the scene early and have
made exceptional inroads in the region.

    Ford explained, "There has not been such a
building spree like this in the history of lodging.  The
capital inflows are enormous.  Development growth is
incredible and appears solid at least into the next decade,
with a critical proviso that there continues to be political
and economic stability."

    Lodging Econometrics (LE) of Portsmouth, NH is the
industry authority for hotel real estate.  LE has an
individual record for every actively pursued hotel project
-- in each stage of construction -- for every region and
country throughout the world.  Receive important project
details including contact information for the developer
along with his latest project start and completion dates
for:

      * New Construction Projects      * Casino Projects   
                 
      * Reflaggings                    * Condo
Hotels/Serviced Apartments    
      * Announced Renovations          * Timeshare/Vacation
Clubs            

    LE can customize a series of Lodging Development
Summaries for strategic planning, displaying project and
guestroom counts for each region, country and city, company
and brand, developer group, star rating (chain scale), size
and type of hotel, and for other important criteria.  Plus,
LE provides a Supply Side Forecast of new openings for 2006,
2007, and 2008 and beyond.

    Additionally, LE offers Sales Comps -- individual
transaction records for all recent hotel sales -- and the
Names of Owners and Management for the Census of all Open
and Operating Hotels.

    To learn more about LE's products and services, or to
inquire about ordering customized reports, please contact
LE at [phone], ext. 25, or visit them online at
http://www.lodging-econometrics.com . 

    For more information, please contact:

     Amy Hauck
     Lodging Econometrics
     Tel:   [phone] ext. 19
     Email: [e-mail]

SOURCE  Lodging Econometrics