A limited-service hotel (LSH) is a hotel without restaurant and banquet facilities, which are part of the defining characteristics of a full-service hotel (FSH).The LSH’s market position is based on the recognition that, for some travelers, the key requirement is a satisfactory room but few of the other amenities.

Lower investment outlay and operating cost, a feature shared by all LSHs, lead to a more stable investment product versus the FSH, and LSHs can deliver an on-par to slightly better risk-adjusted return than other commercial real estate classes.

楊書健:酒店房託投資 首重現金流分析

楊書健:酒店房託投資 首重現金流分析

《香樹輝King King 傾》6月10日訪問楊書健

今天早上,本公司投資總監楊書健,接受新城電台《香樹輝King King 傾》訪問,討論有限服務酒店的投資要點。

節目重溫可於以下網址找到 (6月10 日, 9am)

Money Cafe - 推陳出新 (一) 2016/06/08

Money Cafe - 推陳出新 (一) 2016/06/08

[信報] 楊書健: 改裝酒店-增值型投資

(本文刊於信報: http://www2.hkej.com/wm/article/id/1312586)

楊書健: 改裝酒店-增值型投資


Source: Aspire

Over the last decade, hotel investment has become a valid alternative for investors in Singapore and beyond.
Hotel REITs including several listed in Singapore, Hong Kong, and Japan, became pure hotel owners that provide individual investors access to hotel ownership throughout Asia Pacific.

(A Chinese translation of the article is available at: http://cj.sharesinv.com/20160527/34781)

[SCMP] Victor Yeung: Limited service hotels continue to grow in Asia

Victor Yeung: Limited service hotels continue to grow in Asia
Over the last twenty years, limited service hotels have expanded its footprint to all major regions in the world. Rising demand from growing tourist markets is the primary reason, but changes to the hotel ownership and operational models have also accelerated capital investment into the sector.
We believe that hotels can be best compared to logistics assets two or three decades ago. Logistics assets saw a similar cycle, when investors were initially concerned with its long term investment value. However, once the ownership and operational models matured, logistics assets saw a one-time, secular value appreciation in multiple markets. This tightened the yield gap between logistics and office assets, and now in many markets, especially those with an active REIT market, logistics cap rates are on par with office or retail cap rates. We see hotels, more specifically limited service hotels, as having similar potential.

For the full article, please refer to the link below.
Victor Yeung: Limited service hotels continue to grow in Asia

EJ Insight: Why limited-service hotels can be a good investment

A limited-service hotel (LSH) is a hotel without restaurant and banquet facilities, which are part of the defining characteristics of a full-service hotel (FSH). The LSH’s market position is based on the recognition that, for some travelers, the key requirement is a satisfactory room but few of the other amenities.
Lower investment outlay and operating cost, a feature shared by all LSHs, leads to a more stable investment product versus the FSH, and LSHs can deliver an on-par to slightly better risk-adjusted return than other commercial real estate classes.
This is one of the reasons for the rapid growth of the sector over the last two decades.
(For the full article, please refer to the below link:

The Super Hotel chain in Japan offers limited amenities (though a few of the hotels have an in-house hot-spring spa), but service is the equal of that in full-service hotels. Photo: superhotel.co.jp

Admiral White Paper: A Case for Limited Service Hotel Investment

Admiral Investment has released a white paper entitled "A Case for Limited Service Hotel Investment" today. This is the first instalment of a series of articles and this white paper analyses limited service hotels as an investment alternative for investors. 

Limited service hotels focus on a satisfactory room experience but offer less amenities. This serves a wide clientele, from causal travellers to small-to-medium-enterprise employees. Industry data, including the growth of the low cost carrier market, suggest that this clientele has grown in the last two decades and is expected to grow by another 50% in the next five years. Investors should consider this asset class because it is seen as a lower risk alternative to full service hotels. While limited service hotels can serve as a constituent investment in a core or core-plus portfolio, limited service hotels also offer several strategies for value add investments. 

More information about this white paper series is available at http://investlsh.blogspot.com/ 

Attached please find the white paper for your reference:


(Excerpt) The Ownership and Operational Model of Hotels

(The following is an exerpt of Admiral's Field Notes: REITs and Rental Real Estate)

Hotels are similar to retail in that value is derived from end-user demand.  This means that a hotel operator is involved in many of the same marketing strategies as a mall operator.  The hotel operator needs to decide the clientele and the resulting service and amenities levels.

Because of the varied services expected for different levels of hotels (3-star versus 4-star versus 5-star), revenue per square foot, profit margin, and ultimately return on investment can be very different.  For example, a three star hotel has a lower revenue per room compared to a 5 star hotel, but its profit margin is typically 15 to 20 percentage points higher.  Thus, analysts should keep in mind that the cost structure is very different between different hotels.

In higher end hotels, often revenue from non-room sources (food & beverages, for example) will be as high as room revenue.  However, the profit margin differs widely.  In fact, some hotels target to only have their food and beverage business break even, and they drive overall profitability through maximizing profit from room revenue.  When calculating profit margins, analysts are cautioned to separate room from non-room revenue when they calculate the cost structure of hotels.

Hotels, furthermore, have several unique aspects.  First, hotel contracts are much shorter than leases of other property types.  Hotel leases are daily, and prices can be managed dynamically.  In fact, in most well run systems, computers are used to calculate latest offering prices, at 30-minute intervals, based on the latest occupancy rates and time away from the lease date.  This is the reason why a hotel website sometimes gives different rates within a fairly short period of time.

Ultimately, a hotel sees its room-nights as a perishable resource.  For every night that a hotel room does not have guest, the company receives zero revenue for that particular room night.  In the short term, a hotel can increase its attractiveness by lowering room rates.  Thus, on the one hand, a hotel would want to fill up its hotel as much as possible.  On the other hand, however, the hotel also does not want to decrease room rates too much.  Multiplying occupancy and average daily rates generates Revenue Per Available Room, or RevPAR for short, which captures the overall profitability of the hotel.  RevPAR multiplied by the number of hotel rooms is the room revenue.  Computer programs and human management specifically are managing room rates to generate as high of a RevPAR as possible.

Second, while a mall has its tenant relationships with the retailers, a hotel signs most of its contracts with customers directly.  This allows hotels to have a more targeted approach in bringing customers to their hotels.  Many hotels seek longer term contracts with airlines or travel companies to reduce the volatility of daily occupancy. These contracts, usually at a lower rate, keep occupancy up.  Since many of the hotel costs are fixed, keeping a reasonable level of occupancy from contracted guests covers operating expenses.  From there, the hotel can be more proactive in filling in the rest of the hotel with higher rate contracts with individual customers.

Owner versus Operator

Source: Admiral Investment

Third, hotels have increasingly segregated its ownership from operations. In this case, a hotel is typically owned by an investor without the network or brand strength to run the hotel.  The operation will be contracted out to an operator, who owns the brand and the systems for hotel management.  See the above illustration for the difference between the two models.

The operating risk can stay with the landlord, shared between the landlord and the operator, or transferred completely to the operator.  On one end of the spectrum, the operator collects a fixed fee for the operating services, and the landlord keeps all the upside and downside of the operation.  On the other end, the landlord master --leases the building to the operator, collects a fixed rent, and all operating upside stays with the operator.

Most contracts, however, will have a profit sharing element where the landlord and the operator share the risks and the profit.  If the landlord retains control, then the operator will provide the service, with profit sharing potentials if profit is above a certain level.  Increasingly, however, the landlord will lease out the building to the operator, but keep a percentage-rent clause, similar to a retail mall, so that the landlord shares some of the upside.

The latter structure is becoming popular because of an IFRS rule.  If a hotel is operated by the owner, it cannot be classified as an investment property.  The asset will have to be depreciated as a fixed asset.  If the hotel is leased out, however, the asset may be classified as an investment property and it may be revalued like other commercial buildings.  Thus, when analyzing a hotel landlord, it is important to focus on the economic substance, and not merely the legal relationship between the landlord and the tenant.

Hotel supply and demand are based on tourist arrivals.  Most countries report tourist arrivals transparently, and most have Tourism Boards to advocate tourism.  The tourism boards often have operational targets on tourist growth, which tend to be relatively realistic.  For example, the Hong Kong Tourism Board has a medium term target of 5% growth per year until 2017.
In addition, the tourism boards also report the number of nights per overnight tourist.  Nights per tourist often stay constant in the short term, and thus the current year number can be used to forecast future growth.  The number of tourists arriving multiplied by the average number of nights per overnight tourist gives realistic data for demand.

Supply response is similar to other asset classes, as it takes several years to build a high-rise hotel.  Furthermore, hotels typically have a lower per-square foot value than offices or malls, especially in city center where hotels are in higher demand.  If hotels do not form their own planning zone, often they will be crowded out.  Developers may acquire a fully functioning hotel and redevelop the site into an office tower.  The Ritz Carlton Hotel in Hong Kong was redeveloped into the China Construction Bank Building in the last cycle, for example.  This is the reason why some Asia Pacific economies have implemented a hotel-only planning zone to maintain a certain level of hotel rooms in the city center.




2015-09-16 03:08 聯合報 楊書健(安泓投資投資總監)

現代的飯店管理,物業業權跟品牌管理每每分開。擅長投資的地產商或房地產基金,負責開發及擁有飯店的業權,而品牌商則負責管理。例如,曾經兼顧物業及品牌的萬豪飯店在1993年分析成獨立的房託及品牌商,前者稱為萬豪服務(Host Marriott Corp.),擁有世界各地的飯店業權;後者為萬豪國際飯店集團(Marriott),是品牌商,旗下有JW萬豪、麗思卡爾頓(Ritz-Carlton)、萬麗(Renaissance)等飯店品牌。

楊書健: 香港酒店供求漸趨平穩



楊書健: 香港酒店供求漸趨平穩


楊書健: 策略模式創造酒店品牌價值



楊書健: 策略模式創造酒店品牌價值


楊書健: 酒店的投資攻略(上)



楊書健: 酒店的投資攻略(上)

第二,按國際會計準則 IAS 40「投資物業」所規定,自行運營的酒店物業,屬於自用性質,不能當作投資物業,而是要計入非流動資產的「不動產、廠房和設備」一項。對房託而言,酒店物業只能擁有,不能營運。
故此,酒店物業的營運和業主是由不同單位負責。例如,萬豪國際酒店集團(Marriott),是專門負責品牌管理的,旗下有大家熟悉的JW萬豪、麗思卡爾頓(Ritz-Carlton)、萬麗(Renaissance)等酒店品牌。前身的萬豪酒店在1993年將資產一分為二,分拆成萬豪國際(Marriott International)及萬豪服務(Host Marriott Corp)兩家不同業務的企業集團。分拆後,獲得了原有集團的房地產資產及債務的萬豪服務,逐漸演變成房託,而萬豪國際則成為專門從事酒店經營管理的企業。萬豪服務是業主,而萬豪國際則是品牌經營者。
投資於酒店物業,面對現金流不穩的問題時該如何處理?一般酒店以旅行社、網站為合作夥伴推銷房間。另一做法是直接將房間租予航空公司,分配予機師及空姐,這種租約稱為crew contract。在這兩種方法下,酒店整體的租金可能較低,但令出租率得以維持,從而確保穩定的現金流。
品牌管理 信心的保證

《明報》楊書健﹕旅業着手轉型 本地酒店仍值得投資


[楊書健 泓觀亞太]


(本文於2016年5月16日,刊登於《明報》《Money Monday》第11版內。


五星酒店 成本高達收入六成

有限服務酒店 收支平點較低

[楊書健 泓觀亞太]