HVS EMEA Hospitality Newsletter – Week Ending 6 November 2015 (November 6, 2015)

Host Hotels & Resorts Sells European Portfolio 

In partnership with Algonquin SA, a joint venture between UK-based Benson Elliott and US-based Walton Street Capital has acquired a portfolio of eight hotels (2,308 rooms) across seven major European cities from Host Hotels & Resorts' European Joint Venture for €420 million. The hotels included in the deal are the 396-room Pullman Paris Centre –  Bercy in France; the 185-room Westin Europa & Regina Venice, the 227-room Westin Palace Milan and the 640-room Sheraton Rome in Italy; the 350-room Sheraton Warsaw in Poland; the 192-room Lé Meridien Grand Hotel Nuremberg in Germany; and the 57-unit Marriott Executive Apartments and the 262-room Renaissance Hotel in Brussels, Belgium. HVS advised the lender.

Hilton Dublin Kilmainham Sold 

Tifco Hotel Group has purchased the Hilton Dublin Kilmainham, close to the city centre in Dublin, Ireland, from developer John Lally for an undisclosed sum. Tifco is now the owner and manager of the 120-room hotel, and it will continue to operate the property under a franchise agreement with Hilton worldwide.

New Owner for the Mercure Hotel Hannover-Mitte  

Internos Global Investors has reportedly acquired the Mercure Hotel Hannover-Mitte in Germany from an E&P Real Estate fund for an undisclosed sum. Internos purchased the four-star, 160-room hotel, which is set within a park in central Hannover, for its hotel spezialfond; the deal marks its 13th acquisition for the fund. The hotel is leased to AccorHotels.

Rezidor Announces Number Eight for Moscow 

Carlson Rezidor has announced plans to open its eighth hotel in Russia's capital, Moscow. The Radisson Blu Olympisky Hotel, Moscow is expected to welcome its first guests in the first quarter of 2017. The 379-room hotel, which is owned by B&N Group, is being developed just north of the city centre, adjacent to Moscow's Olympic arenas. The high-rise hotel will be part of a 75,000 m² mixed-use project. Rezidor now has more than 2,000 rooms either in operation or under development in Moscow.

NH Bringing Nhow to the UK 

NH Hotel Group has signed a management agreement with AXA Investment Managers – Real Assets for the Spanish group's first nhow hotel in the UK. A 190-room hotel is scheduled to open in London's Shoreditch area by 2019. The eight-storey property will be part of the 5.5-acre 250 City Road mixed-use project, designed by the widely acclaimed Foster + Partners architects studio. NH currently has three nhow-branded hotels in operation, in Milan, Berlin and Rotterdam, with further projects in the pipeline for Amsterdam and Santiago de Chile.

Meliá Opens a New Hotel on Tenerife 

Meliá Hotels International has added a new luxury resort to its portfolio on the Spanish island of Tenerife. The former Vincci Buenavista Golf & Spa resort, in the northwest of the island, has now been renamed the Meliá Hacienda del Condo. The 117-room resort is set amidst the 18-hole Buenavista golf course, which was designed by Severiano Ballesteros. The group now operates nine hotels on Tenerife, the largest of the seven Canary Islands.

Luxury Frontiers Expands its Horizons With Two New Strategic Alliances 

Leading designer and developer of luxury tented suites and creative tree-top experiences Luxury Frontiers, which has a partnership with HVS, has announced the signing of strategic alliances with holiday firm Discovery Destinations and Smartrip Foundation. "We’re thrilled to embark on this new chapter with Discovery Destinations and Smartrip," said Luca Franco, managing partner and founder of Luxury Frontiers. "It’s very exciting to collaborate with like-minded brands as we continue our mission to create one-of-a-kind immersive offerings that enable travelers to experience new adventures, learn new skills and gain insights about themselves and the broader world," he added. Luxury Frontiers has now completed four projects which included tented accommodation for three resorts in Africa (Lemala Kuria Hills by Tourvest in Tanzania, Musangu Lodge in Zambia and the Shakawe River Lodge in Botswana) and a resort add-on for the Gran Hotel Son Net in Mallorca, Spain.

DoubleTree Goes to Coventry and Makes its Debut in Qatar 

Hilton Worldwide has opened its latest DoubleTree hotel in the UK: the DoubleTree by Hilton at the Ricoh Arena – Coventry. The 121-room hotel is based at the Ricoh Arena, home to the Wasps rugby club and Coventry City Football Club. Additionally, the brand made its debut in Qatar this week with the opening of the DoubleTree by Hilton Doha – Old Town. The 187-room hotel is in the Qatari capital's expanding business district. The hotel has become Hilton's seventh DoubleTree-branded hotel in the Middle East and its second hotel overall in Qatar.

HVS Helps to Launch a New Conference for Hotel Owners and Investors 

HOFTEL, the global alliance of hotel owning companies of which HVS is a key sponsor, has created a new hotel investment conference run by – and for – the investors themselves. The Gulf and Indian Ocean Hotel Investors’ Summit (GIOHIS) will be held in Abu Dhabi on 8-9 February 2016. The topics to be discussed will be of specific interest to hospitality real estate investors from across the region, including the challenge of the OTAs, securing fair and transparent management agreements, and the merits of diversification vs. concentration in investment strategy. Delegate admission is reasonably priced – with even lower Early Bird Rates up to 9 December – and there are special discounts for hotel owners and HOFTEL members. Visit www.giohis.com to book or for more details.

Rezidor Announces its Debut in Mecca 

Carlson Rezidor has announced its first hotel for the city of Mecca, Saudi Arabia. The Park Inn by Radisson Makkah Al Naseem is due to open in June 2016. The 463-room property will be part of a complex containing four other hotels (6,000 rooms). Rezidor's president and chief executive officer, Wolfgang M Neumann, commented that "Saudi Arabia is a focus country" for the group.

Millennium Continues With its Middle Eastern Expansion 

Millennium & Copthorne has signed an agreement with Al Rajhi Investments for two new hotels in Mecca, Saudi Arabia. The 822-room Millennium hotel and the 502-room Copthorne property are both expected to open in 2017. The new deal brings the group's number of signings in Saudi Arabia over the last six months to ten.

More Four Points for Mecca 

Starwood Hotels & Resorts has signed an agreement with Sulaiman Abdulaziz Al Rajhi Real Estate Investments Company LLC for another Four Points by Sheraton property in Saudi Arabia. The Four Points by Sheraton Makkah Al Naseem is due to open on the outskirts of Mecca city centre in the second quarter of 2016. With 1,139 rooms, the hotel will become the biggest Four Points by Sheraton hotel worldwide. Starwood currently operates one Four Points property in Saudi Arabia (in Riyadh) and, including its latest signing, it now has a further four in the pipeline.

Absolute Share Price Performance Over the Past Week – 22-29 October 2015 









InterContinental Hotels Group 
–  Nomura reiterated its "neutral" rating and cut the target price from 2,800p to 2,698p.

Pandox – Reported a strong third quarter, with net operating income from property management and operator activities amounting to SKr403 million and SKr115 million, respectively.

PPHE Hotel Group – Total third-quarter revenue increased by 9.7% on the same period last year.

 

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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