The JW Marriott at Tomorrow Square in Shanghai
Despite the ongoing predictions of gloom, a major US hospitality chain bets on a 100-hotel joint venture in China. Also, mainland developer shares rise at the same time that some are reporting improved January sales. Read on for all this and more from today’s headlines.
Marriott Inks Deal for 100 New Hotels in China
As China’s slowing economy is spooking investors world-wide, Marriott International Inc. is doubling down on the country’s growing middle class.
The Bethesda, Md.-based lodging giant has struck a deal with a Chinese firm, Eastern Crown Hotels Group, to open at least 100 hotels under Marriott’s midtier Fairfield brand in various mainland Chinese cities over five years, according to Marriott officials. Read more>>
Mainland Developer Shares Rise on Expectations of Govt Support
Major Chinese developers’ stocks rose more than 7 per cent at one stage on Tuesday on the back of market expectations that more property easing policies will be unveiled after the annual session of the National People’s Congress (NPC) next month to boost property prices and reboot the weak mainland China economy.
The rally came after Premier Li Keqiang said on Monday the government would act decisively if there were signs that economic growth might slip out of a “reasonable range”. Read more>>
Developers Report Higher Sales in January
China’s major real estate developers’ sales surged in January thanks to a series of property easing policies by the government, including a relaxation in housing purchase regulations.
Property group China Vanke Co Ltd’s sales in January reached 25.59 billion yuan ($3.89 billion), a year-on-year increase of 10.3 percent, while Guangzhou-based developer Evergrande Real Estate Group reported sales of 21.23 billion yuan, a 83 percent increase compared to the same period of 2015. Read more>>
Hong Kong Disney’s Magic Fades as Shanghai Resort Readies for Debut
As Walt Disney Co. readies to open its first Disneyland resort in mainland China by mid-year, its decade-old theme park in Hong Kong has tumbled back into a loss, portending challenges ahead amid the country’s slowing economic growth.
Hong Kong Disneyland recorded a loss of HK$148 million ($19 million) in the year ending early October 2015, the first loss in four years after fewer Chinese tourists visited the city. The resort suffered seven years of losses since its 2005 opening, before turning its first profit in 2012. Read more>>
Asian Developers Work Around Aussie Investment Rules
A loophole in Australian property rules has helped overseas developers invest what industry executives believe were record levels in the country in 2015, casting doubt over the efficacy of curbs intended to keep a lid on soaring prices.
Newly built properties are exempt from rules on existing homes that restrict sales to foreigners, creating an opportunity for overseas investors to get into one of the world’s fastest growing housing markets. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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