Kew Green Becomes First Overseas Investment for China-Based Buyer

Following the announcement in March this year that Kew Green Hotels was to be put on the market, the UK-based group (the largest franchisee of InterContinental Hotels Group's Holiday Inn brand within Europe) was reportedly acquired by Chinese firm HK CTS Hotels Co for a price believed to be in the region of £400 million. Kew Green currently owns/operates 54 hotels across the UK, 45 of which are Holiday Inn properties. The deal is expected to see Kew Green expand into the European continent. Paul Johnson, who will remain chief executive of Kew Green, commented that the transaction would allow the group to continue to pursue an "aggressive growth strategy as well as giving us access into the rapidly growing Chinese tourist market". The group's new owner, a fully owned subsidiary of the China National Travel Service Corporation, currently operates 50 hotels under four different brands across Hong Kong, Macau and mainland China. This is its first investment overseas.

Millennium & Copthorne Buys a Ticket to Ride to Liverpool

Millennium & Copthorne had never been to the port of Liverpool before but when it did take the plunge it decided it wasn't going to be just a day tripper. No, the group had more permanent plans in mind, as it has just signed an agreement to purchase the Beatles-themed Hard Days Night Hotel in the city, in northwest England, from Merseyside-based property entrepreneur Tony Criss for £13.8 million (£125,000 per room). The all-cash deal, which represents a yield of 6.5%, is expected to close on or before 19 August 2015. The 110-room hotel opened in 2008; it was developed in a Grade II-listed building dating from 1884, and 113 years remain on the lease with Liverpool City Council. The acquisition "...further expands the group's hotel portfolio to one of the leading leisure and business destinations in the UK," said Millennium's chairman, Kwek Leng Beng. "The city is undergoing an economic regeneration and we are proud to be a part of that," he added.

Park Plaza Hat-Trick for Berlin

PPHE Hotel Group has announced that it is to open its third Park Plaza hotel in Berlin at the beginning of September. The 133-room Park Plaza Berlin Kudamm will be housed in the former Art’otel Berlin Kudamm building which is currently undergoing full refurbishment and rebranding. Thomas Borsbach, regional general manager for PPHE Hotel Group in Germany and Hungary, said, “It’s an extremely exciting time for Park Plaza Hotels & Resorts as we expand with new openings in London and Nuremberg. Berlin is a key market for us, where our hotels are based in key inner-city locations such as Mitte and Prenzlauer Berg. With the opening of Park Plaza Berlin Kudamm, we occupy a popular area around the famous Kurfürstendamm boulevard, which is ideal for business and leisure guests. Along with our collection of two art’otels in Berlin, we have now increased Park Plaza Hotels & Resorts’ presence in Berlin to provide contemporary accommodation in several in-demand and central locations throughout the city.”

Number Seven for Starwood in Russia

Starwood Hotels & Resorts has opened its seventh hotel in Russia: the 161-room Sheraton Ufa Hotel. Close to the southern stretch of the Ural Mountains, the hotel is Starwood’s first in the Republic of Bashkorostan. The new build property, spread across nine floors, was developed by Granelle Real Estate LLC and is the third Sheraton hotel in Russia, joining the 339-room Sheraton Moscow Sheremetyevo Airport Hotel and the 214-room Sheraton Palace Hotel Moscow. Dave Marr, global brand leader for Sheraton Hotels & Resorts, said, “Ufa, as an emerging market, presents another tremendous expansion opportunity for Sheraton, and we are proud to be the first internationally branded upscale property to open in the region. Sheraton Ufa builds on the brand’s first mover advantage and we are excited to partner with Granelle Real Estate LLC to grow the Sheraton brand in Russia.”

Two Regional Sales Make the Grade in the UK

Old Amersham Hotels has acquired the Redesdale Arms Hotel in the town of Moreton-in Marsh in central England for £3.75 million. The 34-room hotel is housed in a Grade II-listed building that dates back to the mid-17th century. The deal brings Amersham's portfolio up to three hotels and a wedding and function venue. Additionally, Talash Hotels has purchased the 35-room, Grade II-listed Risley Hall Hotel in Derbyshire, in England's East Midlands region, from Flodrive Properties for an undisclosed sum. The 16th-centure, three-storey hotel was put on the market with a guide price of £1.45 million.

Pandox's Prince in Sweden

Pandox's hotel operating division, Pandox Operations, formed an agreement with Nordic Choice Hotels that will see it take over the running of the Quality Hotel Prince Philip in Stockholm, Sweden, as of 1 September 2015. The 208-room hotel, which is already owned by Pandox, is in the Skärhomen district, in the southwest of the city. "When our partner Nordic Choice Hotels decided not to extend the lease agreement for the property, it was a natural step for Pandox to also assume the role of operator, " said Erik Hvesser, vice president and area manager for Sweden and Finland at Pandox.

Park Hyatt Makes its African Debut on the Island of Zanzibar

Park Hyatt made its first appearance in Africa this week with the opening of the Park Hyatt Zanzibar. The 67-room hotel is on the beachfront of Zanzibar off the coast of Tanzania in East Africa. Located in Stone Town, the old part of the island's capital Zanzibar city and a UNESCO World Heritage Site, the hotel was developed across two buildings; part of the property is in the new, purpose-built Zamani residence, which is connected to the adjacent 17th century Mambo Msiige, home to the rest of the hotel. The group's latest addition won't be its only African hotel for long though as the Park Hyatt Marrakech is due to open in 2016.

Element and Aloft brands Expand Presence in Dubai

Starwood Hotels & Resorts has got together with Dubai Properties to develop four new hotels in Dubai under its Element and Aloft brands. The 227-key Aloft Dubiotech, the 200-unit Aloft Dubai Studio City, the 221-room Aloft Dubai IMPZ and the 168-unit Element Dubai IMPZ are all expected to open in 2018, in time for the Expo 2020, which is to be held in the emirate. 2015 is proving to be a year of expansion for Starwood's Aloft and Element brands in the Middle East; in February the group announced the launch of the midscale brands with two hotels in Dubai, in partnership with Wasl Hospitality & Leisure, and in May a further five properties were signed for Dubai, Doha and Muscat.

Absolute Share Price Performance Over the Past Week – 6-13 August 2015

Millennium & Copthorne –  2015 quarter-one like-for-like revenue and profit before tax increased by 2.7% and 9.9%, respectively.

Starwood Hotels & Resorts – Barclays analysts downgraded from "overweight" to "equal-weight".

AccorHotels – Has got together with TravelerCar to offer a car-share service, even to non-hotel customers. 

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.