Goldman Sachs Suggests China Should Keep Zero-Covid Policy

Asia-Pacific
6 minutes

Goldman Sachs said the Chinese government still needs to keep its Zero-Covid policy until probably the April-June quarter. This follows the commentary over the weekend, once again, that the government will maintain the policy even as global stock markets buy China-related stocks in hopes of a reopening soon. China reported its highest number of Covid-19 infections in six months on Sunday. The National Health Commission said China had 4,420 new locally transmitted Covid-19 infections on Saturday. This is when health officials confirmed their commitment to the “dynamic-clearing” approach to Covid cases as soon as they emerge. What we don’t understand is that instead of the commentary that the flare-ups of cases show the need for the Zero-Covid policy, why isn’t there a significant amount of commentary about how the continued cases show Zero-Covid does not work?

Some 39 buildings of the No.2 Island of the Ocean Flower Island, an artificial archipelago in Danzhou, South China’s Hainan Province developed by China’s debt-ridden Evergrande Group will be repurposed. The 39 buildings will no longer be residential properties, with all the buildings built and unsold being adjusted from residential to a mix of hotel, business and finance, retail commercial and catering. The tourism development unit under Evergrande had been ordered to remove the mega-resort project in Danzhou immediately, back in January as the company was accused of unlawful means of obtaining the required project certificate. Evergrande Fairyland Group had objected saying Ocean Flower Island is a major project in Hainan that attracted US$11.2 billion worth of investment after more than six years of construction. In September Evergrande said a total of 668 delayed housing projects they owned resumed construction, in contracts to 38 projects which remain dormant. 

Vietnam’s second-biggest listed developer, No Va Land, is firing staff and seeking urgent asset sales. No Va Land is reportedly struggling to pay creditors in the latest sign of distress in the country’s real estate sector. Sources reported that the company is trying to sell distressed assets, including hotels and resorts, to raise cash to repay loans and fund its operations. During the past month the company has laid off about half of its workforce, and most of its ongoing construction has been put on hold. No Va Land is Vietnam’s second-biggest listed property firm after Vingroup’s real estate unit Vinhomes.

The Avana Retreat in Vietnam has opened the Hidden Spring Lagoon, nature’s take on a private plunge pool. Avana Retreat is a 15 hectare resort in Mai Chau Province. The 36-villa property is a 3.5-hour drive from Hanoi. The rim of the Lagoon is 6 x 3.5 meters, filled with natural spring water fed by a small waterfall. The new Hidden Spring Lagoon was recently launched. It features two sunbeds, a changing room area, and a small bar set up so guests can order drinks. The property also launched private dining experiences, multi-course meals for a maximum of 12 guests.

Wyndham Hotels & Resorts said they expect Hua Hin’s tourism market to rebound back to normal levels in 2024. Wyndham has a positive outlook for Thailand both this year and next year. Wyndham operates hotels in Thailand across different brands such as Ramada and Wyndham Grand in Bangkok, Phuket, Krabi, and Phangnga. Their new property is the Wyndham Hua Hin Pranburi Resort & Villas, a 5-star resort with 154 rooms and 40 pool villas spanning a 50-rai plot that was rebranded from the Evason Hua Hin. The newly acquired hotel’s occupancy level remains low but has risen to the 30% range as tourism has not quite fully recovered and Hua Hin is plagued by oversupply that is expected to continue with more than 800 rooms to be added next year. The property benefits from Wyndham Destinations Asia Pacific affiliation as the timeshare group has a growing number of members in Thailand and Asia.

Hann Development Corp has officially broken ground on its 450-hectare luxury golf resort project – Hann Resort, in New Clark City in the Philippines. The project is a collaboration with AccorMarriott International and the Professional Golfer’s Association of America with the support of groups such as PAGCOR and the Clark Development Corporation. The new property is a 10 minute drive from the Clark International Airport, two hours from Manila. It features three 18-hole golf courses, hotel brands Banyan Tree, Sofitel, The Westin, Angsana, Emblems, and The Luxury Collection as well as a 10-hectare public park and PGA-affiliated player development facilities, clubhouses, a mixed-use commercial center, premium villas and residences. Hann Philippines is a member of the Hann Group which was formerly known as the Widus Group.

PT Puri Sentul Permai Tbk will establish five units of Kedaton 8 Xpress Hotels in several rest areas across toll routes on Java Island in Indonesia. The funds for this plan will be taken out of the proceeds of the initial public offering of 250 million shares of IDR 150 each. PT Puri Sentul is seeking IDR 37.5 billion in the IPO with 85.56% of the proceeds to be spent on building hotels, while the rest will be used for working capital, particularly developing a self-check-in application for the five upcoming hotels. On top of the five units of Kedaton 8 Xpress Hotels, KDTN is getting ready to build two suite rooms in Kedaton 8 Family Hotel, targeted for completion in December 2022. The company will also purchase several hotel amenities, pay marketing fees, and plan the promotion for those five new hotels.

MAG of Life announced the launch of eight of a total of 12 mansions at the Ritz-Carlton Residences, Dubai, Creekside, part of the Keturah Resort. Each of the mansions is valued at AED 177 million. The luxury wellness development is valued at US$1.3 billion. The Ritz-Carlton Residences, Dubai, Creekside, part of the Keturah Resort is an independent residential development conceived and designed by MAG of Life, the first wellness real estate focusing on the Dubai Industry Strategy 2030. Keturah Resort features 12 mansions, eight of which are currently available for sale. Each of the mansions comprises four levels, constituting eight bedrooms, a majlis, a spa, cinema room and a premium gym. The Keturah Resort offers a wide range of facilities to homeowners including a Ritz-Carlton Hotel with beach access, a private members-only club, a women’s club, a kids club, a holistic wellness center, Michelin-star restaurants, and a retail promenade. Residents will also have access to a luxury wellness hotel, eight sustainable and organic-focused retail spaces, secure private parking with valet, a gated community with unique views of the wildlife sanctuary.

Dubai is getting its third Fairmont Hotel following Accor unveiling plans for Fairmont Dubai Skyline. Set to open in 2024, the new development will comprise both hotel rooms and residential and will be the first high-rise tower in the Sheikh Zayed Road area after downtown. The 226-meter tower will be located in Al Sufouh 2 and will include 54 floors of dining, leisure and accommodations with 181 hotel rooms and suites and 121 residences of two, three and four bedroom apartments found inside. There will be a rooftop penthouse, occupying the entire 54th floor of the tower. The brand promises unique culinary and entertainment experiences that span from the ground floor to the rooftop. This will be the Fairmont brand’s sixth opening in the UAE.

Europe Highlight

Radisson announced the new upscale Radisson Beach Resort Larnaca in Cyprus, overlooking Larnaca Bay. Larnaca is Cyprus’ third-largest city on the southeastern coast of the island. Radisson Beach Resort Larnaca includes 202 rooms and suites, all with private balconies or terraces, many with views of the Mediterranean from the main building, while the resort’s annex building features rooms with swim-up pool access, as well as suites ideal for families. The resort offers private beach access with sun loungers reserved exclusively for hotel guests. The large main pool is the heart of the resort, adjacent to a separate children’s pool and outdoor playground. The full-service spa offers a variety of massages and treatments to revitalize, refresh and pamper guests, as well as a beauty salon, heated indoor pool, sauna, steam bath, and a fitness center. There is a variety of dining options as well as two meeting rooms and a spacious ballroom.