HVS EMEA Hospitality Newsletter – Week Ending 10 April 2015 (April 11, 2015)

Ace Hotel London Sold

Starwood Capital Group has sold the Ace Hotel London to a venture capital company called Limulus for £150 million (£581,000 per room). The 258-room hotel, formerly a Crowne Plaza property, opened after an extensive refurbishment in September 2013 in the UK capital's trendy Shoreditch area. US-based Ace Hotel will continue to manage the property, which is the group's first venture outside of the Americas.

HVS Hodges Ward Elliott Acts For Marriott On The Sale Of Paris Hotel

Marriott International has sold the Courtyard by Marriott Paris Arcueil on the outskirts of Paris, France, for approximately €24.25 million (€142,600 per room). The 170-room hotel opened in 2011 as part of a mixed-use project in the Port d'Arcueil district, 15 minutes by train from Paris city centre. Marriott will continue to run the property under a long-term management agreement. HVS Hodges Ward Elliott acted on behalf of Marriott for the transaction.

Interstate Adds 18 UK Hotels To Its Managed Portfolio

Following the recent acquisition of 17 Holiday Inns and one Crowne Plaza hotel across the UK by Cerberus Capital Management, US-based Interstate Hotels & Resorts has signed management agreements for the 18-property portfolio (2,443 guest rooms). Interstate will take on the management of 15 of the hotels immediately and the remaining three will become part of the group's managed portfolio in the next few months. "As part of our strategic expansion, we're building upon our global relationships, such as with highly regarded investor Cerberus Capital management," commented Leslie Ng, Interstate's chief investment officer.

Qatari Investors Buy A Trio Of Bournemouth Hotels

A Qatar-based group has acquired a portfolio of three hotels in the seaside resort of Bournemouth, on England's south coast, from private investors, Brian Shone and Terence Taylor of Oceana Hotels. The exact sale price is undisclosed but the portfolio was on the market for £16 million. The 114-room Suncliff Hotel, the 107-room Cumberland Hotel and the 62-room Cliffeside Hotel are all situated on East Overcliff Drive overlooking the sea.

New Hotels In Turkey For Starwood, Absolute And Marriott

Starwood Hotels & Resorts' St. Regis brand has made its debut in Turkey with the opening of the St. Regis Istanbul. The 118-room hotel is in the city's Nisantasi neighbourhood on Istanbul's European side. Thai group Absolute Hotels is also planning an Istanbul debut with its U Hotels & Resorts brand. The group has signed a management agreement for the U Istanbul. The four-storey, 40-room hotel is due to open at the beginning of 2016 as the Bangkok-based group's first hotel in Europe. Other news from Turkey this week includes the announcement that Marriott International will open its second JW Marriott Hotels & Resorts property in the country on 15 May. The JW Marriott Bodrum is currently getting ready to roll out the red carpet to its first guests in the town of Yalikavik, which is 11 miles from Bodrum on Turkey's Aegean Coast. The 107-room hotel is the brand's seventh property to open in Europe overall.

Hotel Indigo To Take A Dip In Bath

InterContinental Hotels Group (IHG) has released plans to bring its Indigo brand to the city of Bath in southwest England. Two existing hotels and a restaurant, all housed in a Grade I-listed Georgian building in the city centre, will be converted into the Hotel Indigo Bath. The 121-room hotel is expected to open in late 2016 and will operate under a franchise agreement with St James' Hotels Group, which is a subsidiary of long-term IHG partner the Somerston Group.

Wyndham Opens The Ramada Almaty

Wyndham Hotel Group has opened its second hotel in Kazakhstan: the new-build, 164-room Ramada Almaty, which is 15 km from Almaty International Airport, in Kazakhstan's largest city. The hotel joins its fellow Wyndham property the 228-room Ramada Plaza Astana, in Kazakhstan's capital.

Hilton Garden Inn And Park Inn By Radisson Expand In Russia

Hilton Worldwide has opened its sixth Hilton Garden Inn hotel in Russia and its first in the southeastern city of Ufa. The 167-room Hilton Garden Inn Ufa Riverside, which is owned by KESCO, is on the banks of the Belaya River in the city centre. Carlson Rezidor Hotel Group also opened a new hotel in Russia this week: the Park Inn by Radisson Volgograd, in Volgograd city centre. The 149-room franchise property, which is owned and was developed by RHC, is Rezidor's 18th Park Inn property in the country.

Three New Park Inns For The EMEA Region

As well as the new Park Inn hotel for Russia, Carlson Rezidor has also recently announced the development of a further three Park Inn properties in the EMEA region. When it opens in the fourth quarter of 2015, the Park Inn by Radisson Bucharest Hotel & Residences will be the first of its brand in Romania. The hotel, with 210 rooms and apartments, will be part of a dual-branded property in the Romanian capital including the existing 719-room Radisson Blu Bucharest. Due to open next month, the Park Inn by Radisson Hotel Apartments Al Rigga will become the second Park Inn hotel in Dubai. The 149-unit property is in the emirate's Deira district. The Park Inn by Radisson Onitsha is currently under construction in the southeast Nigerian city of Onitsha. The 152-room hotel is expected to open in the third quarter of 2016 as part of a mixed-use project, which will also include a shopping centre, a convention centre (which will be part of the hotel's facilities), office space and residential buildings, bringing the group's portfolio in Nigeria up to seven hotels (1,200 rooms) either in operation or under development. 

Marriott Brings Fire And Ice To Protea

Marriott International has announced the opening of its latest hotel in South Africa this week. The Protea Hotel Fire & Ice! Menlyn, which took three years of preparation and construction to come to fruition, is adjacent to the Menlyn Park shopping centre in the city of Protea.

Golden Tulips Growing In Rwanda

Louvre Hotels Group's Golden Tulip Hotels and Resorts chain has signed a ten-year management agreement for a hotel in Rwanda, east central Africa. The La Palisse Hotel in the town of Nyamata, just south of the capital Kigali, is to be rebranded as the Golden Tulip La Palisse Kigali. Around US$25 million has already been invested in the hotel, which has 188 rooms and 44 suites, and a further US$1 million will be spent in order to re-open the hotel this July as the first Golden Tulip property in the country.

Dukes To Open In Dubai

Dubai-based privately owned luxury property developer and holding company Seven Tides has announced that it plans to develop a luxury resort and residences complex on Dubai's man-made Palm Jumeirah under its Dukes brand. The Dukes Oceana will include a 273-room hotel (with a private beach, outdoor and indoor swimming pools and other facilities) and a 227-unit serviced apartment building. The resort is due to open in January 2016, and it will be the second Dukes property in the group's portfolio alongside the 60-room Dukes London.

HVS EMEA News Is Celebrating A Milestone

April 2015 is a special month for the HVS EMEA Newsletter, as we are celebrating our 15th Anniversary! We have enjoyed bringing you the latest hospitality headlines since April 2000 and we hope to continue appearing in our readers' inboxes on Friday afternoons for many years to come.

Absolute Share Price Performance Over the Past Week – 2-9 April 2015

Accor – Bank of America-Merrill Lynch raised its target price from €50 to €57.

InterContinental Hotels Group
– Jefferies upgraded to "hold" from "underperform".

Whitbread – Announced plans to create 195 apprenticeships in northeast England over the next five years.

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) [email protected]
Charles Human, CEO – HVS London/HVS Hodges Ward Elliott [email protected]
Simon Tucker Brown, Managing Director – HVS Executive Search Europe & Middle East [email protected]
Chris Martin, Senior Director – HVS Hodges Ward Elliott [email protected]
Puneet Kanuga, Director – HVS Hodges Ward Elliott [email protected]
Arlett Oehmichen, Director – HVS London [email protected]
Sophie Perret, Director – HVS London [email protected]
Tim Smith, Managing Partner – HVS Cape Town [email protected]
Demetris Spanos, Managing Director – HVS Athens [email protected]
Hala Matar Choufany, Managing Director – HVS Dubai [email protected]
Ezio Poinelli, Director – HVS Milan [email protected]
Louise Fury, Senior Editor and EMEA Hospitality Newsletter Author – HVS London [email protected]

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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