HVS EMEA Hospitality Newsletter – Week Ending 11 March 2016 (March 12, 2016)

Rezidor Purchases a 49% Stake in Prizeotel... 

Rezidor Hotel Group is making its entry into the economy hotel segment with the acquisition of a 49% stake in German budget design chain, prizeotel for £14.7 million. Additionally, the group has secured further rights including the purchase of the remaining 51% share in prizeotel in four years’ time. Prizeotel currently has three hotels in operation across Germany (555 rooms), in Bremen, Hamburg and Hannover, and one property in its development pipeline. The deal is expected to close in the next few weeks. “Combining and cross-fertilizing prizeotel’s market and brand knowledge with Rezidor’s international expertise will unlock value for both organisations. We will initially grow the German network and target key cities in Austria, Switzerland and BeNeLux primarily through leases, but also management agreements,” commented Elie Younes, executive vice president and chief development officer for Rezidor. “Prizeotel will offer a unique investment proposition with its compelling design, value-engineered development costs, high operating efficiencies and an optional turn-key construction solution,” he added. HVS was pleased to have advised Rezidor Hotel Group on certain aspects of this acquisition.

...And a Trio of Park Inns Announced for Belgium 

Carlson Rezidor is developing three new Park Inn by Radisson hotels across Belgium, bringing its Park Inn portfolio in the country up to eight hotels (925 rooms) either in operation or in the pipeline. Of the new additions, the Park Inn by Radisson Hasselt will be first; this 84-room hotel is scheduled to open in Hasselt city centre, adjacent to the 126-room Radisson Blu Hotel, Hasselt, in the fourth quarter of 2016. The 133-room Park Inn by Radisson Antwerp Berchem will open opposite Antwerp-Berchem railway station during the first quarter of 2018. The 111-room Park Inn by Radisson Bruges is also due to open in the first quarter of 2018, two kilometres away from Bruges’ historic city centre. “Belgium is an important growth market for our mid-scale core brand,” commented Wolfgang M Neumann, Rezidor’s president and chief executive officer.

EDITION and Moxy Gather Pace in Europe 

Marriott International plans to take its EDITION brand to Barcelona, Spain. Along with Ian Schrager and KKH Property Investors, the hotel’s owner and developer, the group will create the Barcelona EDITION in the city’s Ciutat Vella district, just 15 minutes from the beach. The 100-room hotel is expected to open in 2017 and is Marriott’s third EDITION-branded property in Europe, with hotels already in operation in London and Istanbul. This week, Marriott also announced the expansion of its Moxy brand across Europe. The group got together with its franchise partner Nordic Hospitality and hotel owner and developer Vastint Hospitality to open the following five hotels by the end of 2016: the 252-room Moxy Munich Airport (March), the 176-room Moxy Eschborn (July) and the 210-room Moxy Berlin Ostbahnhof (October) in Germany; plus the 276-room Moxy Oslo Exporama (November) in Norway and the 200-room Moxy Aberdeen Airport (December) in the UK.

Starwood’s Two Tributes to Paris 

Two boutique hotels in Paris, France, have become the first French properties to join Starwood Hotels & Resorts’ Tribute Portfolio, a growing collection of independent hotels across the globe. The 58-room Le Metropolitan, a Tribute Portfolio Hotel and the 49-room, six-storey Le Dokhan’s, a Tribute Portfolio Hotel will be open on 1 April 2016. The hotels, in the city’s 16th arrondissement close to the Trocadéro Gardens and the Eiffel Tower, are owned by Stéphane and Pascal Dokhan. The Tribute Portfolio became Starwood’s tenth brand when it was launched last spring and, including the two Paris hotels, currently comprises eight properties.

Leonardo Hotels Expands into Amsterdam 

Leonardo Hotels, the European arm of Israel-based Fattal Hotels Group, will make its first appearance in Amsterdam, the Netherlands, at the beginning of next month. The Best Western Leidse Square will become the 102-room Leonardo Hotel Amsterdam City Center. The hotel is scheduled to undergo an extensive renovation in the near future.

Garden Inn Debuts in Bucharest... 

Hilton Worldwide has announced that it will be opening the 201-room Hilton Garden Inn Bucharest Old Town in 2017 under a franchise agreement with SC Apex Alliance 1 S.R.L. The hotel will be located within a historic listed building in the centre of Bucharest and will mark the brand’s debut in the Romanian capital. John Greenleaft, global head of Hilton Garden Inn, said, “Hilton Garden Inn is now trading or under development in more than 100 locations across Europe, Middle East and Africa. Its accelerating growth has seen us open new properties in Milan, Malaga, Istanbul, and Dubai in the past 12 months, with many more currently under construction. This latest agreement will add another incredible European city to the portfolio, and we look forward to introducing guests in Bucharest to its award-winning service.”

...And Canopy to Cover the City of London 

Hilton Worldwide has teamed up with 4C Hotel Group to bring its Canopy by Hilton brand to the UK capital. 4C owns the site in East London that will house the £76 million hotel development; the project will also include residential and office space. The Canopy by Hilton London City will open in 2018 near to Aldgate London Underground station. Commenting on the news, Gary Steffen, global head of Canopy by Hilton, said, “Aldgate was chosen for its proximity to both the stylish City of London and the more edgy and energetic East End”.

Best Western to go from One to 14 in South Africa 

Best Western Hotels & Resorts has signed an agreement with Orion Hotels that will see the group increase its portfolio in South Africa from one property to 14 over the next 12 months. Three hotels will be reflagged under the Best Western Plus and Best Western brands by July 2016, and the remaining ten properties will be rebranded by the end of the first quarter of 2017. All 13 hotels will still be managed by Johannesburg-based Orion.

Protea Makes it Four in Uganda 

South African chain, Protea Hotels, is to invest R627 million (approximately €37 million) developing two hotels in Kampala, Uganda: the Protea Hotel Naguru Skyz and the Protea Hotel Pinnacle. The new additions will join the two other hotels already operated by Protea in Uganda: the 73-room Protea Hotel Entebbe Resort and the 70-room Protea Hotel Kampala. Protea Hotels, now part of Marriott International, signed the agreement for the development of the properties at a ceremony in Dubai. Alex Kyriakidis, Marriott's president for the Middle East and Africa, said, “Signing in Dubai affirms the company’s confidence in the strength of the Ugandan economy and in prospects for growth on the African continent. The development of the two new hotels comes at a time when Kampala is ripe for the expansion of its hotel sector. The last hotel development dates back to 2007. The demand for additional, quality accommodation establishments is evident in the high occupancy levels experienced by existing hotels and the consistently high average room rates.”

Aloft Gets a Lift to Palm Jumeirah 

Starwood Hotels & Resorts has signed an agreement with Mr Rashid Al Abbar for an Aloft property on Dubai's man-made Palm Jumeirah development. The 192-room Aloft Dubai, The Palm is due to open in July 2018 and will be the brand's first resort-style property in the Middle East. The brand made its debut in the region in 2009 with the opening of the 408-room Aloft Abu Dhabi and has a strong pipeline in the Middle East, with seven Aloft hotels scheduled to enter the UAE market by 2019.

Absolute Share Price Performance Over the Past Week – 3-11 March 2016 



Wyndham Worldwide
– Opened 38 hotels in EMEA in 2015, increasing its portfolio in the region to 440 properties. 

Scandic Hotels – The group's CFO, Gunilla Rudebjer, has decided to leave. The process to recruit a successor has begun and Gunilla Rudebjer will remain at Scandic until 31 August 2016.

Hyatt Hotels – Issued and sold US$400 million of its 4.850% senior notes in a public offering.

 

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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