HVS EMEA Hospitality Newsletter – Week Ending 24 July 2015 (July 25, 2015)

Peninsula to Drop Anchor in Istanbul... 

Peninsula Hotels has formed a joint venture with Turkish group Dogus Holding and real estate firm BLG Capital for its first property in Istanbul. Approximately €150 million is to be invested in a hotel at Salipazari Port on the European side of the Bosphorus. The group currently has ten hotels in operation across Asia, North America and Europe (the opening of the Peninsula Paris last year marked the brand's debut in Europe).

...And Plans Submitted for the Peninsula London 

Having purchased a 50% stake in 1-5 Grosvenor Place, a 1960s former office block at Hyde Park Corner in London, in 2013, The HongKong and Shanghai Hotels, Limited (owner of the Peninsula Hotels brand) in a joint venture with the building's freeholder (Grosvenor Britain & Ireland) has submitted plans to Westminster City Council for a 190-room Peninsula hotel at the site. The development, which is reported to cost £500 million, will also include 24-28 residential apartments. The Peninsula London will be the group's first hotel in the UK.

New Owner for the Lough Erne Resort 

The Lough Erne Resort, near the town of Enniskillen, in Northern Ireland has been sold to a US-based investment group headed by Vine Avenue Advisors and TRU Hotels and Resorts for an undisclosed sum. The golf and spa resort opened in 2007 but fell into administration in 2011 and was placed on the market for offers of around £10 million. The sale of the 120-room property also includes 25 holiday lodges and planning permission to develop a further 19 units. TRU Hotels and Resorts will now take on the management of the resort.

Union Investment Buys Berlin Hotel 

Frankfurt-based Union Investment has purchased the 557-room andel's Hotel in Berlin, Germany, from a property company owned by Warimpex Finanz-Und Beteiligungs AG and UBM Development AG for €105 million (€188,500 per room) for its Unilmmo: Deutschland open-ended real estate fund. The deal is expected to close in the third quarter of 2015. The four-star hotel, near Alexanderplatz Square, opened in 2009 and is (and will continue to be) operated by Vienna International Hotels & Resorts. This is Union's eighth hotel investment in Germany's capital.

Hamburg's Newest Hotel a Rare Gem 

Hilton Worldwide's Curio brand has made its entry into Europe with the opening of the Reischshof Hamburg, Curio Collection by Hilton in Germany's second largest city, Hamburg. The hotel originally opened in 1910 and underwent an extensive renovation in order to transform it into a Curio property, including a reduction in the room count from 300 to 278. This hotel is operated by Event Hotelgruppe.

Interstate Europe Expands its UK Portfolio 

US-based Interstate Hotels & Resorts' European venture has added three new properties to its UK hotel management portfolio: the 204-room Holiday Inn Express London ExCeL in the capital, the 171-room Hilton at The Ageas Bowl in the south coast port of Southampton and the 89-room ibis Coventry Centre in the UK's 12th largest city, Coventry.

Six Senses' First European Resort Opens in Portugal 

A property in Lamego, Portugal, has become part of Six Senses Hotels Resorts Spas, marking the group's first resort venture in Europe. The Six Senses Douro Valley, in the Douro Valley UNESCO World Heritage area, is set in 20 acres and has 57 guest rooms, suites and villas. The group now operates 11 resorts under its Six Senses and Evason brands across Asia, the Middle East and Europe.

Leonardo Takes on Two Hotels In Barcelona 

Leonardo Hotels, the European division of Israeli Fattal Hotels Group, has launched two hotels in Barcelona, Spain, this week. Back in May, we announced that the group was planning its expansion into Spain for the first time by taking on the running of the three-star, 110-room Hotel Principal, which is due to close from November 2015 to February 2016 to undergo an extensive renovation. Leonardo is investing several million euro in the property and it will reopen as the four-star Leonardo Hotel Las Ramblas Barcelona. In addition, the group has also opened the 60-room Leonardo Boutique Hotel Barcelona Sagrada Familia in the Catalan capital's city centre.

IHG's Latest French Vintage 

InterContinental Hotels Group (IHG) has signed a management agreement with Financière Immobilière Bordelaise for its sixth InterContinental Hotels & Resorts property in France. Over the next few months, the late 18th-century Grand Hôtel de Bordeaux & Spa in the city of Bordeaux, southwestern France, will be converted into the InterContinental Bordeaux – Le Grand Hotel. The 130-room hotel is due to open later on Bordeaux's main square, Place de la Comèdie. IHG currently operates one hotel in the city, the 90-room Holiday Inn Bordeaux – Sud Pessac.

York's Sweet New Indigo 

InterContinental Hotels Group (IHG) has opened its first Hotel Indigo property in the historic walled city of York, in northern England. The 101-room Hotel Indigo York, in the city's Walmgate area, is the product of a franchise agreement between IHG and Sojourn Hotels. Each Indigo hotel is crafted to reflect the "culture, character and history" of its local surroundings, and the design of the York property pays homage to Walmgate's chocolate- and confectionary-making heritage, which dates back to the 1700s.

Beachfront Boutique in Tel Aviv 

Israel's financial hub, Tel Aviv, Welcomed a new hotel this week. The Brown Beach House is a boutique all-suite property, with each unit overlooking the Mediterranean Sea. The 40-key hotel was developed by Leopard Hospitality. The group's founder, Leon Avigad, commented that the new kid on the city's beachfront block is a "Throwback to times past and the Golden Age of legendary and intimate boutique beachside hotels".

Travelodge For Sale 

The US-based owners of budget chain Travelodge have put the business on the market for a reported £1 billion. The Travelodge portfolio currently comprises 519 hotels across the UK, Spain and Ireland. Hedge funds Avenue Capital and GoldTree Asset Management along with investment bank Goldman Sachs got together to acquire the business from Dubai International Capital in 2012. Commenting on the news, a spokesperson for Travelodge said, "Our shareholders are not natural long-term holders of a hotel business and they are working with Deutsche Bank to explore their options for the future". 

Kenya's First Garden to Grow Roots in Nairobi 

Hilton Worldwide has signed a franchise agreement with Reliance Hotels Ltd for its first Hilton Garden Inn property in Kenya, East Africa. The 171-room Hilton Garden Inn Jomo Kenyatta International Airport is expected to open at the beginning of 2016 two kilometres from Nairobi's airport. Hilton now has 12 Garden Inn hotels under development across Africa.

October Opening For First Steigenberger-Managed Hotel in Dubai 

Steigenberger Hotels is to take on the management of a five-star hotel in Dubai's Business Bay area in October 2015, marking the German group's debut in the GGC countries. The 365-room hotel is currently under construction and is owned by Twenty14 Holdings, the hospitality arm of Abu Dhabi-based LuLu Group International. Steigenberger has further properties in its development pipeline for the GGc, including its second foray into Dubai at the end of 2017 with the InterCityHotel Culture village.

Absolute Share Price Performance Over the Past Week – 16-23 July 2015 







Rezidor Hotel Group –  Has signed 15 hotels (almost 2,500 rooms) in the second quarter of 2015.

Wyndham Worldwide –  Announced expansion plans for China with the signing of three new Wyndham Hotels and Resorts properties.

Starwood Hotels & Resorts – Announced the opening of the Sheraton Hyderabad Hotel in India.

 

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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