HVS EMEA Hospitality Newsletter – Week Ending 10 June 2016 (June 11, 2016)

Arora Takes Sole Ownership of InterContinental Hotel at the O2 

It was reported this week that Arora Group has purchasd a 50% stake in the InterContinental London – The O2 in Greenwich, southeast London, from Queensgate Investments for around £100 million. Queensgate was Arora’s joint venture partner for the 452-room hotel, which opened last December as the second InterContinental Hotels & Resorts property in the UK capital, and the acquisition means that Arora will become the sole owner of the property.

Ritz Paris Reopens 

The iconic Ritz Paris, owned by Egyptian business man Mohamed Al-Fayed, has reopened after closing in August 2012 to undergo an extensive renovation, rumoured to have cost US$450 million. The hotel, at the heart of the French capital, on Place Vendôme, now has 142 guest keys, including 71 suites, and also boasts the world’s first Chanel Spa. The hotel was originally due to open in March, but a fire on the top floor of the property delayed its return to the market.

Rezidor's First Aparthotel in Turkey 

Carlson Rezidor has announced plans to open its first apartment property in Turkey: the Park Inn Apartment Hotel Istanbul Esenyurt, which with 484 keys will become the group's largest hotel in the country when it opens in late 2017/2018, bringing Rezidor's portfolio in Turkey to 22 properties. The hotel will be developed in the city's Esenyurt district and will be part of the Wish Istanbul mixed-use scheme. Rezidor currently operates eight hotels across Istanbul and now has a further four in the pipeline.

Dalata Buys Freehold of the Clarion Hotel in Limerick  

Dublin-based Dalata Hotel Group is purchasing the freehold interest in the Clarion Hotel Limerick, in mid-west Ireland, for €8.5 million. The group acquired the leasehold interest in the 158-room hotel in March and it plans to rebrand the property, which overlooks the River Shannon in Limerick city centre, under its Clayton brand before the end of the year. The hotel is Dalata's second property in Limerick, alongside the 143-room Maldron Hotel Limerick.

Wyndham Launches a Brand Transformation 

Wyndham Hotel Group announced plans for a strategic transformation of its 16 brands, which comprise almost 8,000 hotels across the globe. The work will include a rejuvenation of the interiors of the properties and a refresh of the group’s marketing campaigns. The group stated that the brand transformation, which is the product of an 18-month study, is aimed at “elevating the travel experience for millennials and the global middle class”. "It's time for the hospitality industry to get democratization right – it's not just about value for money, it's about the freedom to explore your world the way you want. Wyndham Hotel Group's transformation enables that freedom," said Josh Lesnick, the group’s chief marketing officer.

Rezidor to Move into Durban 

Carslon Rezidor has announced its entry into the Durban market, in South Africa, with its Radisson Blu brand. The 207 room Radisson Blu Hotel Durban Umhlanga is due to open in 2019. The hotel will be part of the ZAR3.1 billion Oceans Umhlanga mixed-use development, which will also include a 33,000 m² shopping centre and two residential towers. "We are delighted to launch our core brand Radisson Blu in Durban and complete the business triangle with Cape Town and Johannesburg. The presence in South Africa’s three major cities further strengthens our position in the country and on the continent: Africa is our biggest growth market where we, in average, sign a hotel every 37 days and open a hotel every 60 days”, said Wolfgang M Neumann, Rezidor's president & cheif executive officer. Rezidor currently operates five Radisson Blu hotels across South Africa (two in Cape Town, Two in Johannesburg and one in Port Elizabeth).

Protea to Expand into Botswana 

African chain Protea Hotels, owned by Marriott International, has signed an agreement for its first hotel in landlocked Botswana, in southern Africa, bringing its presence across the continent to nine countries. The new hotel is slated to open in early 2018 in the capital, Gaborone. The 160-room hotel will be developed in the city’s central business district. “Characterised by prudent economic management and political stability, Botswana is one of the fastest-growing economies in the world, and is classified by the World Bank as an upper-middle income state. With this sort of economic success and the positive outlook for the country, we certainly see strong value in this venture in Botswana,” commented Alex Kyriakidis, Marriott International’s president and managing director for the Middle East and Africa.

Corinthia to Manage First Dubai Property 

Corinthia Hotels has signed an agreement with UAE-based Meydan Group to manage its first hotel in Dubai. The beachfront resort is currently under construction on the site of the emirate’s former Meydan Beach Club. The Corinthia at Meydan Beach is expected to open in 2019 with 300 guest rooms and 60 high-end serviced apartments.

US Hotel Group Dreams a Dream of Doha 

New York-based Dream Hotel Group has signed an agreement with Al Alfia Holding for a hotel in Doha, Qatar. The 325-room Dream Doha will mark the debut of the luxury lifestyle hotel group in the Middle East when it opens near the end of 2019. The development is part of a US$1.5 billion expansion plan, which along with the Doha hotel will see the Dream brand open in a further five locations across the USA.

Two New Starwoods for Saudi Arabia 

Starwood Hotels & Resorts has signed an agreement with Saudi Real Estate Company (al-Akaria) for two new hotels in the capital, Riyadh. The 388-room Westin Riyadh and the 244-unit Element Riyadh are both due to open in 2022. The hotels will be developed as part of a mixed-use project near to the King Abdullah Financial District, which will also include more than 4,000 m² of retail space. Starwood currently has ten hotels in operation across Saudi Arabia.

A Second Waldorf Astoria for Dubai 

Hilton Wordwide’s Waldorf Astoria brand has signed a management agreement with Ward Holdings for a new property in the Middle East. The Waldorf Astoria Dubai International Financial Centre is scheduled to open in autumn 2017 as part of a mixed-use residential, office and retail project. The 247-room hotel, which will be the second of its brand in Dubai, will be on Al Saada Street, opposite the emirate’s International Financial Centre and ten kilometers from Dubai International Airport. There are currently four Waldorf Astoria hotels in operation across the Middle East.

Absolute Share Price Performance Over the Past Week – 2-9 June 2016 

 

 
 
Hilton Worldwide– The Hampton by Hilton brand has expanded its presence in South America with its first signing in Argentina.

AccorHotels – Credit Suisse cut its reccomendation to "underperform" from "neutral".

NH Hotel Group – Started to "hold" from "sell" by Societe Generale.

 

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 Hoff, Director – HVS London ahoff@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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