HVS EMEA Hospitality Newsletter - Week Ending 13 March 2015 (March 14, 2015)

Cerberus Capital Management Purchases UK Holiday Inn Portfolio 

New York-based Cerberus Capital Management has acquired a portfolio of 18 Holiday Inn hotels across the UK for £225 million (2,443 rooms, £92,000 per room) from a joint venture between Lehman Brothers Real Estate, Canadian property company Realstar and Singapore-based investor GIC Real Estate. HVS advised Cerberus on the transaction. All of the hotels will continue to operate as Holiday Inn properties under a long-term franchise agreement with Interstate Europe, part of US-based hotel management company, Interstate Hotels & Resorts.

Qater Airlines Buys Sheraton Skyline Hotel 

Qatar Airways recently announced that it has purchased the 350-room Sheraton Skyline Hotel, close to London's Heathrow Airport in the UK, for an undisclosed sum. This is the airline's first hotel acquisition outside of Qatar (the group currently owns the 400-room Oryx Rotana Hotel in Doha). The Sheraton Skyline will reportedly be renamed as the Oryx Sheraton Skyline London Heathrow. The purchase is in line with Qatar Airways' strategy to expand its hotel business. HVS represented Qatar Airways in the transaction.

Dalata Buys Its First Hotel In Belfast 

Dalata Hotel Group has signed an agreement to purchase the freehold interest in the 170-room Holiday Inn Belfast in Northern Ireland for £18.5 million in cash (£108,800 per room). Dalata currently operates the Maldron Hotel Belfast but this transaction marks its first hotel purchase in the city. The group recently announced that 13 of its hotels will become part of a new chain of Clayton Hotels, including eight of the recently acquired Moran Bewley Hotels and the Holiday Inn Belfast .

DoubleTree Number Five Announced For Sunny Spain 

Hilton Worldwide has got together with Reserva del Higuerón Servicios Hoteleros, SL to open its fifth DoubleTree by Hilton hotel in Spain and its first on the Costa del Sol. The 177-room Reserva del Higuerón in the resort of Fuengirola, overlooking the Mediterranean Sea, is to be rebranded and will start operating as the DoubleTree by Hilton Resort & Spa Reserva del Higuerón this summer. 

IHG Announces Its Third InterContinental Hotel For Portugal 

InterContinental Hotels Group (IHG) has signed a management agreement with Margem Encantada, SA that will see it open its third InterContinental property in Portugal. The 59-room InterContinental Lisbon – Estoril will open with views over the Atlantic Ocean in the town of Estoril, to the west of Lisbon city centre. The hotel will join the 121-room InterContinental Porto – Palacios Das Cardosas and the recently opened 347-room InterContinental Lisbon. IHG currently operates 30 InterContinental-branded hotels and resorts across Europe.

Radisson Blu Number Two For Gran Canaria 

Carlson Rezidor Hotel Group is planning to open a second Radisson Blu hotel on the Spanish island of Gran Canaria. The Radisson Blu Resort Mogán is expected to open in the fourth quarter of 2016 on the island's southwest coast. The 422-room development is owned by family owned Scandinavian property firm Wenaasgruppen, which is also Rezidor's partner for the 189-room Radisson Blu Resort, Gran Canaria (opened in 2012).

A Second Round of Jaz For Steigenberger 

Steigenberger Hotel Group has announced a second hotel for its new Jaz in the City brand. A 175-room hotel is to be developed in the Cloud No.7 building in Stuttgart in southwest Germany. The building is in the city's Europa Quarter and will also include residential apartments. The hotel is due to open in summer 2016. The brand will make its debut on 1 September 2015 with the opening of the 258-room Jaz Amsterdam in the Netherlands.

Carlsons' First Lady To Retire 

Privately owned hotel and travel group Carlson has announced that after 18 years of service with the group its president and chief executive officer, Trudy Rautio, is to retire on 1 May 2015. Carlson now plans to implement a new leadership structure, under which two chief executive officers will be appointed to run the group's core business models, travel and hospitality – David P. Berg, currently chief operating officer of Carlson, is to take up the post of chief executive officer for Carlson Hospitality, and Doug Anderson president and chief executive of the group's 100%-owned travel platform, Carlson Wagonlit Travel, will report directly to Carlson's board of directors as of 1 May. Commenting on the news, Diana Nelson, chair of the Carlson Board, said, "We are grateful for Trudy's many contributions over nearly two decades of service at Carlson, she has been a key figure in the success of this company". 

Starboard Buys Its First Hotel In Scotland 

Starboard Hotels has acquired the 71-room Holiday Inn Express Greenock, near Glasgow in Scotland. This is Starboard's first acquisition in Scotland and it is the second hotel purchase in two months for the group – which owns, develops and operates franchised hotels and hostels across the UK – as in February Starboard bought the 58-room Best Western Carlton in the seaside resort of Blackpool in northwest England.

Historic Durban Hotel Sold At Auction 

South African property magnate Saantha Naidu, owner of the Coastlands portfolio of hotels, has acquired the Royal Hotel in Durban, in South Africa's KwaZulu-Natal province, from Swaziland business man Moses Motsa at an auction for ZAR78 million (US$6.6 million, US$32,300 per room). The 204-room, historic hotel, which celebrates its 170th birthday this year, has hosted many famous figures such as Queen Elizabeth II, Nelson Mandela and Cecil Rhodes.

Park Hyatt Opens On Spice Island 

The Park Hyatt Zanzibar opened this week on a UNESCO World Heritage beachfront site in Stone Town, on the East African island of Zanzibar. The hotel, which marks Hyatt Hotels' entry into the Zanzibar market, is housed in two separate buildings, one of which is a purpose-built addition that connects directly to the rest of the 67-room property in the historic Mambo Msiige, a Zanzibari mansion dating back to the 17th century. The new opening, the 36th Park Hyatt hotel to open worldwide, brings the number of Hyatt hotels in operation across Africa up to five.

Autograph Makes Its Mark In The Middle East 

A Dubai hotel has become the first property in the Middle East to sign up to Marriott International's Autograph Collection. The Habtoor Grand Beach Resort & Spa, owned by UAE-based Al Habtoor Group, is the latest hotel to join the collection of independently owned luxury properties. "The combination of distinct leisure and culinary experiences and an iconic location in Dubai provides guests and travelers with a truly unique travel experience that fits perfectly with Autograph collection.” said Julius Robinson, vice president of Autograph Collection, on the 446-room beachfront hotel.

Swiss-Belhotel Makes Its Debut In Abu Dhabi 

Hong Kong-based Swiss-Belhotel International has opened its first hotel in the emirate of Abu Dhabi: the 189-room, 20-storey Swiss-Belhotel Corniche, Abu Dhabi, which is the group's second hotel overall in the UAE alongside the 118-room Swiss-Belresort Ghantoot. The group now operates 11 hotels across the Middle East.

First Park Inn By Radisson In Dubai 

Carlson Rezidor Hotel Group recently opened its first Park Inn by Radisson property in Dubai: the 90-unit Park Inn by Radisson Hotel Apartments in Al Barsha. The new opening brings the group's portfolio in the Middle East up to 34 hotels (more than 8,000 rooms).

Wyndham's Tryp Brand Makes Middle East Debut 

Wyndham Worldwide's Tryp brand opened its first hotel in the Middle East this week: the 146-room Tryp by Wyndham Abu Dhabi, which is adjacent to the Sheikh Khalifa Engergy Complex, close to the city's corniche. The previously announced Tryp by Wyndham Dubai was initially to mark the brand's debut in the region in 2016; the 672-room hotel is now expected to open in 2017.

A New Landmark In Saudi Arabia 

Dubai-based Landmark Hotels & Suites has expanded its operations in Saudi Arabia with the opening of a new property in Jeddah. The 49-unit Landmark Suites – Prince Sultan is the third Landmark-branded aparthotel in the kingdom. Landmark operates eight hotels across the UAE, India and Saudi Arabia, and the group has plans to open at least three additional hotels in Dubai by the end of the year. Further expansion in Saudi Arabia and the GCC is also in the pipeline. 

Absolute Share Price Performance Over the Past Week – 5-12 March 2015 

InterContinental Hotels Group – JP Morgan retained its "neutral" rating and raised the share price target to 2,700p from 2,600p.

Whitbread – Raised to "buy" From "hold" by Deutsche Bank and share price target raised to 6,000p from 4,600p.

Accor – The French group said that it will expand its participation in TripAdvisor's instant booking platform across all of its brands around the globe in the near future.


For the latest in the hospitality industry, please visit: http://www.hvs.com/. You are also welcome to contact the following personnel.
Russell Kett, Chairman – HVS London (@russellkett) rkett@hvs.com
Charles Human, CEO – HVS London/HVS Hodges Ward Elliott chuman@hvshwe.com
Simon Tucker Brown, Managing Director – HVS Executive Search Europe & Middle East stuckerbrown@hvs.com
Chris Martin, Senior Director – HVS Hodges Ward Elliott cmartin@hvshwe.com
Puneet Kanuga, Director – HVS Hodges Ward Elliott pkanuga@hvshwe.com
Arlett Oehmichen, Director – HVS London aoehmichen@hvs.com
Sophie Perret, Director – HVS London sperret@hvs.com
Tim Smith, Managing Partner – HVS Cape Town tsmith@hvs.com
Demetris Spanos, Managing Director – HVS Athens dspanos@hvs.com
Hala Matar Choufany, Managing Director – HVS Dubai hchoufany@hvs.com
Ezio Poinelli, Director – HVS Milan epoinelli@hvs.com
Louise Fury, Senior Editor and EMEA Hospitality Newsletter Author – HVS London lfury@hvs.com


Disclaimer: Information provided above has been gathered from various market sources. HVS has not independently verified the accuracy of the information provided. Interested parties should not rely on the information as statement of facts and are advised to make their own independent checks to verify the information provided. For further information, please feel free to contact HVS London.

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