Starwood Capital Acquires Golden Tulip Hospitality

Starwood Capital has agreed terms for a deal which will see it acquire Swiss-based Golden Tulip Hospitality through its affiliate Louvre Hotels. The transaction includes Golden Tulip’s franchise business, development and representation businesses, joint venture interests, brands, trademarks and intellectual property. The acquisition should be completed by 26 June, subject to confirmatory due diligence. Starwood plans to create a strategic alliance between Louvre Hotels and Golden Tulip.

Pandox Purchases The Vildmarkshotellet

Pandox has bought the Vildmarkshotellet resort hotel, adjacent to Kolmården Zoo, near the port of Norrköping in southeast Sweden, from Parks & Resorts Scandinavia for SKr160 million (€14.8 million). Pandox is due to take over the ownership of the 213-room hotel as of 1 September 2009, but Parks & Resorts Scandinavia will continue to operate the property. Both companies are expected to invest SKr20 million (€1.9 million) in the hotel.

Shangri-La To Debut In Russia

Shangri-La Hotels and Resorts has announced that it is to make its debut in Russia. The Hong Kong-based hotel group has signed a management agreement with China Huaming International Investment Corporation for a 400-room hotel in the city of Moscow. The hotel is scheduled to open in 2012 in the Park Huaming Business Centre mixed-use development.

A Courtyard by Marriott For Turkey

Another debutante in the news this week is Marriott International. The US-based company's Courtyard by Marriott brand made its debut in Turkey this week. The 262-room Courtyard by Marriott Istanbul International Airport opened in Turkey’s largest city Istanbul, bringing Marriott’s portfolio in the country up to five hotels.

Travelodge's Capital New Fund

Budget hotel company Travelodge has got together with UK-based property fund manager Meghraj Properties to create a £100 million fund called Tamesis Capital. The aim of the new fund is to acquire going concern hotels from existing operators, banks and administrators. Travelodge is to invest £500,000 in the fund and £20 million has already been committed by clients of Meghraj. The fund will comprise £40 million of equity and £60 million of debt and it is expected to purchase eight to 12 properties which are then to be leased to Travelodge under 35-year leases.

Legacy Launches A Rescue Mission

Legacy Hotels and Resorts has signed three-year management contracts for two Niche Hotels properties which went into administration at the beginning of this year: the 64-room Royal Hotel, in the city of Cardiff, Wales, and the 32-room Wyck Hill House Hotel & Spa, in the town of Stow-on-the-Wold in Gloucestershire, southwest England, which is currently closed for refurbishment. Legacy has also come to the rescue of another hotel cast adrift by administration with a long-term management contract for the former 95-room Quality Hotel, Cardiff, which was previously operated by the Real Hotel Company. These contracts brings Legacy’s portfolio of managed properties across the UK and Jersey to 12.

Fattal Hotel Management To Acquire Azorim’s Hotel Business

Israeli real estate company Azorim – Investment in Development and Construction is to sell its hotel business subsidiary Azorim Tourism to Fattal Hotel Management. This deal will see Fattal purchase Azorim’s 12 Sheraton hotels for ILS270 million (€48.9 million) and take on its ILS700 million (€126.8 million) debt.

Rezidor Announces Two New Hotels For The Middle East

Rezidor Hotel Group has announced two new hotel openings for the Middle East. First is the Al Muna Karim Radisson Blu Hotel, which is to open in the third quarter of 2009 in the city of Medina, Saudi Arabia. This 322-room hotel will be Rezidor’s first property in Medina, but it won’t be alone for long as the 212-room Al Madinah Paradise Radisson Blu Resort is to open in the city in late 2010. Second, is the 220-room Park Inn Bur Dubai, which is scheduled to open in the emirate of Dubai, UAE, in the second quarter of 2012. This will be Rezidor’s first Park Inn property to open in the UAE.

An MGM Mirage Hotel To Appear In Egypt

MGM Mirage bought a taste of Egypt to Las Vegas with its pyramid-shaped Luxor Hotel and Casino, now the US-based company is to experience the real deal. MGM Mirage has signed an agreement with New Giza for Real Estate Development (“NGRED”) for the MGM Grand New Giza, which is to be developed as part of the mixed-use New Giza development, near the foot of Egypt’s famous pyramids in Cairo. NGRED, the developers of New Giza, will provide the equity for the 550-room hotel and MGM Mirage will operate and manage the property. The project is still in the design phase and is expected to open in 2013.

The Tiran Hotel Takes Up Residence In Sharm el Sheikh

CHI Hotels & Resorts (CHI) is getting ready to open its first hotel in Egypt at the beginning of July. CHI will operate the four-star, 351-room Tiran hotel, which is owned by Cyrene Tourism Investment Corporation of Egypt, as part of the Corinthia Beach Resort Sharm el Sheikh in the Egyptian resort of Sharm el Sheikh. The Corinthia Beach Resort Sharm el Sheikh will comprise two properties and hotel number two, the 220-room Corinthia Hotel, is scheduled to open towards the end of this year.

Whitbread's First Quarter Results

For the 13 weeks to 28 May 2009, like-for-like sales for Whitbread’s Premier Inn brand fell by 7.9% on the same period in 2008, and revenue per available room decreased by 9.6%. Like-for-like sales for Whitbread Hotels and Restaurants also suffered a decrease of 3.7% on the first quarter of 2008. Although these figures seem a little gloomy there is light at the end of the tunnel as Whitbread’s chief executive officer Alan Parker commented that “Whitbread has started the new financial year in line with our expectations with total sales up 2.5%, despite the harsh economic conditions”.

Kiessling’s Corner

The news from Spain by Gabriele Kiessling, Analyst, HVS Madrid. Morear & Vallejo and Accor are planning to open a new Etap hotel in Seville for a total investment of €10 million. The 120-room budget hotel, which will be the third Etap property in Seville, is expected to open in 2011. Selenza Hoteles has recently opened a new hotel in the Salamanca area of Madrid. The five-star Selenza Madrid has 44 rooms and it is the chain’s second property. Selenza Hoteles currently has two other projects under construction in Brihuega (Guadalajara) and Barcelona.

Absolute Share Price Performance Over the Past Week 11-18 June 2009

Rezidor Hotel Group - Shares rose by 4.9% on high volatility and expanding price range.

Accor - Shares fell as UBS reiterated its "sell" recommendation and cut Accor's price target from €26.00 to €24.50.

NH Hoteles - Grupo Hesperia announced this week that it will buy shares in NH Hoteles' upcoming capital increase.

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