Kingdom Hotel targets Asia in growth drive

Kingdom Hotel Investments (KHI.DI: Quote, Profile, Research) (KHIq.L: Quote, Profile, Research) will buy at least three more hotels in Asia in 2007 and is targeting the region for further expansion in 2008, the group's Chief Executive Sarmad Zok said on Tuesday.

Zok said Kingdom Hotel does not expect to pay a dividend this year as the company invests in growth.

"We're in high growth mode, we're spending the money. I don't think anyone is expecting dividends for this year," Kingdom Chief Executive Officer Sarmad Zok said.

The company, controlled by Saudi Prince Alwaleed bin Talal, said in its full year results for 2006 that revenues were up 68 percent at $99 million, and future cash flows could fund between $200-300 million of additional purchases in the next 24 months.

Zok told the Reuters Middle East Investment Summit that Kingdom Hotel had already acquired three hotels this year in Vietnam, the Philippines and Malaysia, with three more Asian purchases expected this year.

He said Kingdom Hotel had spent $360 million on the first three acquisitions, but declined to comment on expenditure for the others.

For 2008, he said most of the hotels targeted for potential purchases would also be in Asia.

"Our pipeline continues to be strong. We are attracted to attractive returns -- we believe that in the short term attractive returns are achievable in Asia," Zok said.

The company would not look at any project with a return of less than 10 percent per annum, he added.

Zok said a flood of surplus liquidity in the Middle East and out-bound capital flows within the region were creating yield contraction, which dented the return for investors currently trying to acquire assets.

But there were still some parts of the region ripe for higher yielding investments.

"In terms of opportunities we continue to see some pockets within the Middle East," he said.

Zok said he also saw value in Africa. "Africa is very attractive. It's been dormant and really ignored by the rest of the world," he said.

Amadeus reports Business Results for First Half 2007

Amadeus has reported its business results for the six months ending 30 June 2007. Total bookings grew by 6.7% to 281.5m, while online air bookings grew by 20.4% and now represent 17.4% of total air bookings. Amadeus claims 32.9% of the market in travel agency air bookings in the first half of 2007, up 2.4 percentage points year-on-year. Amadeus’ total revenue grew by 11% to EUR 1,534.1 million.

José Antonio Tazón, President and CEO, Amadeus, said, “We have calculated that our travel agency partners booked EUR 31.7 billion-worth of air tickets on Amadeus in the first half of 2007 clearly demonstrating the continuing value of the travel agency channel for our airline partners. Airlines also generated EUR 3.6 billion euros through their own websites using Amadeus technology.”

“During 2007 we have continued to expand our IT solution business with a ten-year agreement with Cathay Pacific, the first Asian airline to sign for the full Amadeus Altéa suite of customer management solutions.”

“The distribution and technology solutions we offer to all our travel industry partners are based on the most advanced technology platform in the industry. By 2010, we will have completely decommissioned our legacy transaction protocol framework technology and will be running 100% on next generation open systems. This gives us confidence that we will continue to deliver high value technology solutions to the industry for many years to come.”

Travel content

Amadeus signed low-fare content agreements with over 150 airlines in 2007.

The company has a specific programme for the European market, Amadeus Full Content Option, under which 71 airlines guarantee access to their complete public inventory of flights and fares with no GDS surcharge on these bookings. Travel agents can now also access the content of 52 low-cost carriers in Amadeus.

Amadeus e-ticket community is one of the largest in the industry with 209 airlines using e-ticket distribution in 143 markets, where 78% of tickets issued by Amadeus in the first six months of the year were e-tickets. Furthermore, Amadeus has agreements with 71 airlines to host and operate their complete e-ticketing technology and has built links to 125 airlines using other electronic ticketing systems. A total of 394 interline electronic ticketing agreements have been implemented for this community of airlines.

Further, in its drive to eliminate the last barriers to industry-wide e-ticketing, Amadeus has also launched Electronic Ticketing Direct solution which brings e-ticketing to non-Billing and Settlement Plan markets.

Hoteliers around the world continue to respond to the value Amadeus channels add. Amadeus has added over 5,000 properties since October 2006, taking the total to 75,000 globally. 2,000 new additions were independent and boutique properties not usually available on electronic distribution systems. Over 130 brands are now members of Amadeus’ Best Available Rate programme, while its commission tracking initiative has received strong industry support. Over 20 major hotel chains have already signed up to the Amadeus Worldwide Commission Manager.

Airlines

150 airlines now use at least one core component of the Altéa Customer Management Solution to help run their business. In 2007 seven more airlines have been migrated onto the platform, four airlines have signed contracts for Altéa CMS, and a further three Star Alliance airlines have signed up to join the Star Alliance Common IT Platform, based on Altéa CMS and hosted by Amadeus. During the first half of 2007, Qantas became the first airline to roll-out Altéa Departure Control­Flight, Amadeus’ next generation load control system. The solution ensures that luggage, cargo and passengers are distributed in a way which streamlines the loading process and optimises the fuel efficiency of the aircraft.

Amadeus also strengthened its position in the low-cost carrier market with Viva Aerobus, AerOasis and Express Jet choosing Amadeus’ LCC-specific CMS platform. With these new signatures, Amadeus now has six low-cost carrier IT customers.

From January to June, 2007, airlines generated EUR 3.6 billion in online booking value through Amadeus e-Retail engine, Amadeus’ online booking solution for airlines. This is 38% more than in the same period last year.

In 2007, eight more airlines chose Amadeus e-Travel Airline Suite and Amadeus migrated six airlines to its e-Merchandise Solution, which enables airlines to structure, manage, display, and efficiently promote their fares online. Amadeus e-Travel Airline Suite is now used, as a complete solution or in part, by over 70 of the world’s leading airlines.

In the first half of 2007, fourteen more airlines chose to outsource the operation and maintenance of their ticketing systems to Amadeus. Twelve chose the Amadeus Ticketing Platform, which provides a comprehensive ticketing solution and a further two airlines decided to host their e-ticketing with the Amadeus Electronic Ticketing Server.

Hotels

Amadeus’ hospitality solutions continue to grow in capability and functionality. Its Revenue Management Solution can now optimise how long a guest stays as well as how much they pay. It has also been equipped with a new module to measure its own effectiveness - quantifying the hotelier’s return on investment.

Hotel chains that have recently adopted Amadeus’ RMS include TAJ, Rocco Forte and Central Hotels and Resorts (now Centara Hotels and Resorts). The Cornell-Nanyang Institute has also made it a key element of their prestigious Master of Management in Hospitality programme. Over 6,700 properties in 75 countries now use Amadeus Property Management Systems.

Travel Services

Travel agents outside Europe can now buy global rail passes and point-to-point tickets for travel in Europe, the US and Canada, Australia, New Zealand and India thanks to the implementation of a rail booking solution with Wandrian, a specialist in rail distribution technology. In Asia, East Japan Rail is now displayed to Amadeus travel agents alongside airlines.

In the car rental sector, Amadeus and National Car Rental now offer e-vouchers worldwide. Amadeus also launched seamless car location with AutoEurope and in March adopted the new ACRISS Car Classification System worldwide. The system classifies cars more clearly, reducing search time and helping travel agents to upsell.

During the first half of 2007, Amadeus launched Travel Insurance solutions in four new markets, added new providers in Thailand (Thaivivat) and India (Reliance), and integrated Insurance into the Amadeus Leisure Platform in France. Airlines are also taking advantage of Amadeus Insurance: today, six airlines sell insurance to their customers through Amadeus Insurance.

Cruise Travel

Amadeus e-Cruise, a travel agency and consumer cruise-booking platform for the US, gained its 11th travel agency customer. In addition, cruise lines continued to make use of the reach of Amadeus Cruise, a global travel agency cruise booking tool, to take their offer to new international markets: during the period, MSC Cruises launched in North America and Scandinavia; Star Cruises and Holland America Line launched in the UK; Norwegian Cruise Lines launched in France and Costa Cruise Lines launched in Ireland.

Online Travel Agencies

In February, Amadeus announced contracts with four Indian online travel agencies: Indiatimes, MakeMyTrip, Sify and Yatra.

Amadeus Meta Pricer, a pioneering low-fare search engine to help search companies to efficiently retrieve fares and availability information from their airline partners has gained considerable interest from the market in the first half of 2007. Kayak and Bezurk have already been announced as customers and more are expected to be announced soon.

Corporations

Amadeus’ partnerships with resellers to service the world’s corporate travellers online continue to grow strongly: in the first half of 2007, 52% more bookings were made through resellers than in the same period 2006.

Key features include the ability to use handheld devices to help corporate travellers on the move accelerate their approval process in real-time and choose hotels; the new Quick Shopper user interface; enhanced selection of flight availability from alternative local airports; access to carbon offset providers and localised services in one go; and the ability to minimise unused air tickets. Furthermore, Amadeus announced the Amadeus Adoption Academy, an enhanced end-to-end consultancy approach, which helps drive the use of self-booking tools by corporate clients such as Siemens Nordics.

Fraser Suites Sukhumvit, Bangkok to Open in October

Frasers Hospitality, an internationally branded serviced residence management company, is gearing up to open its third luxury all suites property the Fraser Suites Sukhumvit, Bangkok in the heart of the capital city, following the openings of the Fraser Suites Sathorn in January this year and Fraser Place Langsuan in May 2005.

Developed by Thailand’s Chaiyos Land Development and managed by Frasers Hospitality, this premium serviced apartment property sits along the world famous Sukhumvit Road, Soi 11 in the heart of the city’s renowned central business, medical care, shopping, dining and entertainment districts and within a few minutes from the BTS rapid transit railway stations and major expressways connecting to the recently opened Suvarnabhumi International Airport.

The Fraser Suites Sukhumvit, Bangkok is slated 1st October 2007 and is designed by world-class architectural firm, Sachdev O’ Dell, who has conceptualised many serviced residences, hotels, office and commercial buildings in the US and Asia. It comprises 163 studios and one, two and three-bedroom suite apartments, and is equipped with quality furnishings, state-of-the-art entertainment facilities, wireless broadband internet, cable and satellite channels, as well as a spa, swimming pool and gym. Personalised services include babysitting, 24-security and laundry services.

Frasers’ other two Bangkok serviced residences are also situated in prime locations. The Fraser Place Langsuan, located in a popular expatriate residential area near Bangkok’s business district, is within walking distance to Lumpini Park, the largest public park in central Bangkok. Residents of the 128-apartment serviced residence also enjoy easy access to a myriad of shopping centres like Central Chidlom Department Store, Gaysorn Plaza, and the new Central World. Since its opening two years ago, Fraser Place Langsuan has experienced a near-100% occupancy rate.

The company’s other Bangkok serviced residence, Fraser Suites Sathorn in the prime, booming commercial district of Sathorn is also fast becoming the serviced apartment of choice among business executives in the city. It is in an area where embassies, banks, technology companies and multi-national companies congregate and is well-connected to skytrain and subway stations. All of the 142 luxurious apartments are equipped with high-speed broadband internet access, while wireless networking is available in all common areas within the apartment building.

“The spur in demand for international class accommodation presents immense opportunities for Frasers to gain a foothold in Bangkok, one of the most thriving business capitals in the region,” said Mr Choe Peng Sum, CEO of Frasers Hospitality. “This is evident with the success of Fraser Place Langsuan and the increasing popularity of Fraser Suites Sathorn.”

Dusit appoints Elleni Chambiras as Project Director-Central Systems

Elleni Chambiras has been appointed as Dusit's Project Director-Central Systems, taking responsibility for setting up and implementing the OPERA Central Systems Solution; comprising Reservations System, Customer Information System, Web System and Sales Force Automation.

Reporting to Octavio Gamarra, Senior Vice President, Dusit Hotels & Resorts, Elleni has over 20 years Central Systems experience. She worked with Micros-Fidelio as Central Systems Project & Product Manager-Asia Pacific, bringing many of the leading hotel operators worldwide on the multi-million dollar Central and Distribution Systems projects. Before joining Dusit, Elleni was employed with Amanresorts International as General Manager-Central Sales & Reservations.

The Dusit hotels are expected to be fully installed by early-2008. With all the features of the new technology deployed across all distribution channels by then, Dusit will provide all of its hotels and guests instantaneous guest recognition at the point of guest customer contact combined with a substantially enhanced distribution system via all its distribution channels providing real time availability based on last room and best rate.

Shangri-La Hotels and Resorts signs New Hotel in Shangri-La Hotels and Resorts signs New Hotel in MumbaiMumbai

Shangri-La Hotels and Resorts has signed an agreement with Pallazzio Hotel and Leisure (a wholly owned subsidiary of Phoenix Mills Limited) to manage the Shangri-La Hotel, Mumbai, opening the end of 2009. The hotel will be Shangri-La’s fifth property in India following the Shangri-La Hotel, New Delhi, which opened in September 2005; and the Shangri-La Hotel, Bangalore; Palm Retreat Shangri-La, Bangalore; and the Traders Hotel, Bangalore, all opening in 2009.

Designed by Mumbai-based Mr. Shekhar Patki, the 400-room hotel will be situated in the High Street Phoenix retail and office mixed-use development, located in the heart of the city within the residential and corporate hub of Lower Parel. The property is situated 13 kilometres from the airport and is strategically located between Mumbai’s two main business districts - the Central Business District of Nariman Point and Bandra-Kurla.

A majority of the guestrooms, which will be the largest in Mumbai, will overlook Mumbai Racecourse and the sea beyond.

A variety of dining options will be available, including multiple speciality restaurants, an all-day café and a bar. Additional facilities will include a health club, spa, swimming pool, business centre, ballroom, conference and meeting room facilities.

”We are delighted to get this project underway as it marks the beginning of a long and close relationship that we wish to share with Shangri- La,” said Shishir Shrivastava, director of Pallazzio Hotel and Leisure Limited and CEO of Phoenix Mills Limited’s hospitality division. “We selected Shangri- La to manage this prestigious property due to its sterling reputation for delivering a premium luxury hospitality experience. It also marks our foray into the hospitality industry, where we plan to extend our presence to operating multiple world-class luxury properties in the coming years. The long-term opportunity in this sector is immense and we are confident of creating best-in-class properties with the right partners by our side.”