HVS EMEA Hospitality Newsletter – Week Ending 11 September 2015 (September 12, 2015)

Rosewood Plans to Move into Edinburgh's Former Royal High School Building 

Rosewood Hotels & Resorts has announced that the UK will be home to its fourth European hotel. The group has been appointed by development company Duddington House Properties and Urbanist Hotels to manage the Rosewood Edinburgh. The 147-room hotel is expected to open in 2018 in the historic former Royal High School building on Calton Hill, in Edinburgh city centre. The A-Listed building dates from 1829 but has lain empty for almost 50 years. Award-winning Scottish architect, Gareth Hopkins will be responsible for restoring the building and transforming it into a luxury hotel. Rosewood currently manages 18 hotels across 11 countries, and has a further 14 properties under development. HVS London is pleased to be part of the team advising Duddington House Properties and Urbanist Hotels on this development.

Rezidor Announces New Blus and a Red for Europe... 

Carlson Rezidor has been busy this week lighting up Europe with shades of Blu and Red. First, in city of Larnaca, on the south coast of Cyprus, the group announced its first hotel for the island: the Radisson Blu Hotel & Residence, Larnaca, which is due to open in 2017. The 105-room hotel is currently being constructed by Cypriot developers Quality Group and it will be operated by Rezidor and SunnySeeker Hotels under a franchise agreement. Next, the group headed to the UK to visit the Scottish city of Glasgow, and then promptly signed its first Radisson Red hotel for Europe. The new-build, 176-room Radisson Red Hotel Glasgow is scheduled to open in 2017 adjacent to the Scottish Exhibition and Conference Centre. Going back to its roots, Rezidor then hopped over to Scandinavia to announce two new hotels for Finland. In the first quarter of 2016, the 87-room Solo Sokus Hotel Tammer in Tampere, in southern Finland and the 151-room Solo Sokus Hotel Aleksanteri in the capital, Helsinki, will be rebranded as the Radisson Blu Grand Hotel Tammer and the Radisson Blu Aleksanteri Hotel Helsinki, respectively, bringing the brand's portfolio in Finland up to eight properties. 

...Whilst Expanding its Park Inn by Rezidor Portfolio 

Rezidor also expanded its Park Inn by Radisson brand this week with three new European openings. In Russia, the group grew its overall portfolio in the country to 21 properties as the 174-room Park Inn by Radisson Novokuznetsk, in Siberia's Kuzbass region, and the 127-room Park Inn by Radisson Nizhny Tagil, in eastern Russia welcomed their first guests. Rezidor then made its way to the Romanian capital, Bucharest, where the 210-room Park Inn by Radisson Bucharest Hotel & Residence opened its doors, becoming the first of its brand in the country.

New Owner for Cambridge Hotel 

Singapore-based CDL Hospitality Trusts has purchased the Cambridge City Hotel in the UK for £61.5 million from London & Regional. The 198-rom hotel is in the centre of the historic university town of Cambridge, in southeast England. The acquisition is CDL's first deal in Europe.

New Hampton by Hilton Ready for Operation by Foremost 

GBI AG has completed the construction of the Hampton by Hilton Frankfurt City Centre Messe in Frankfurt, Germany, and the 158-room hotel will be handed over to its operator, Foremost Hospitality, on 14 September. Commenting on the news, Hubert van de Loo, Foremost Hospitality's managing director, said, "GBI AG and the Foremost Group can rely on a long-standing successful business relationship. Our next joint hotel project will be the conversion of the former tower of Gotha Insurance Company in Cologne." The new hotel is the second Hampton by Hilton property opened by Foremost Group in Germany.

Crowne Plaza Touches Down in Aberdeen 

InterContinental Hotels Group (IHG) has opened its sixth hotel in the city of Aberdeen, northeast Scotland. A total of £25 million was invested in the Crowne Plaza Aberdeen Airport, which is directly adjacent to Aberdeen International Airport. The 165-room hotel was developed by Dominvs Group and is operated by the London-based real estate firm under a franchise agreement with IHG.

Kingdom Sells its Interest in Kenyan Safari Club 

Kingdom Hotel Investments, a fully owned subsidiary of Kingdom Holding Company (KHC), has sold its 75% stake in the 120-room Fairmont Mount Kenya Safari Club in Nanyuki, Kenya, East Africa, to a private Kenyan company for a gross consideration of US$18 million. The Saudi Arabian company's chairman, Prince Alwaleed Bin Talal, said, "This transaction marks yet another success for KHC's value realization strategy from growth market investment. The hotel will remain under the management of Fairmont Hotels & Resorts."

Minor's Anantara Brand Moving into Ras Al Khaimah and Avani to Debut in Dubai 

In partnership with real estate developer RAK Properties, Minor Hotel Group is planning its first property in Ras Al Khaimah, UAE. The 225-key Anantara Mina Al Arab Ras Al Khaimah Resort will be constructed on Mina Al Arab, a mixed-use waterfront project separated from the mainland by a lagoon. Thailand-based Minor has also announced its first Avani resort for the UAE. The 500-room Avani Deira Islands is to be located on Nakheel's Deira Islands development in Dubai, which is made up of four man-made islands totalling around 15.3 km².

Mandarin Oriental Announced For Beirut 

Mandarin Oriental has announced plans to move into the Lebanese market with a hotel and residences in the capital, Beirut. The project, which is being developed by Saudi Arabian conglomerate Olayan Group at the centre of the city, will consist of two adjacent towers; the south tower will accommodate the Mandarin Oriental, Beirut, with its 280 guest rooms and suites and 25 serviced apartments, whilst the north tower will be home to the 103-unit Residences at Mandarin Oriental, Beirut.

Rezidor to Make its Debut in Iraq 

Carlson Rezidor is taking its Radisson Blu brand to Iraq. The Radisson Blu Hotel, Erbil is already under construction in the city's western suburbs, in Iraq's Kurdistan region. When the 260-room hotel opens in 2017 it will become Rezidor's first hotel in the country. "Kurdistan is one of the most interesting emerging markets in the Middle East," commented Wolfgang M Neumann, Rezidor's president and chief executive officer.

A Second EDITION Signed for the UAE 

Marriott International, along with Ian Schrager and Dubai Properties, will be bringing a second EDITION to the UAE and this one will be in Dubai. The newest EDITION hotel to join the pipeline will be part of Jumeirah Beach Residence, a 1.7 kilometre-long waterfront development at Dubai Marina. The 258-room hotel is due to open in the first quarter of 2018 and will be run by Marriott under a long-term management agreement. The EDITION Abu Dhabi is scheduled to open in 2016 as the brand's first property in the Middle East.

Millennium Signs MOU for Expansion in the UAE 

Millennium & Copthorne Hotels, Middle East and Africa (MEA) has signed a memorandum of understanding for a strategic alliance with Dubai-based real estate firm Dyaar Development that would see the pair develop new hotels across the UAE, with a total of approximately 1,000 keys. President and chief executive officer of Millennium & Copthorne Hotels, MEA, Ali Hamad Lakhriam Alzaabi, commented, "We have aggressive growth plans for the Middle East and Africa region, with an aim to open 100 hotels by 2020."

Absolute Share Price Performance Over the Past Week – 3-10 September 2015 








InterContinental Hotels Group –  Marcato Capital disposed of a £200 million stake in the group.

Accor – Fitch rates Accor's €500 million bond BBB-.

Whitbread – The Premier Inn chain grew sales by 11.6% over the second quarter of 2015.

 

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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