HVS EMEA Hospitality Newsletter – Week Ending 23 September 2016 (September 24, 2016)

Marriott Completes Acquisition of Starwood 

Following this week’s approval from the Chinese Ministry of Commerce, which had been the only regulatory approval still outstanding for the merger, Marriott International today completed its acquisition of Starwood Hotels & Resorts, signalling the intention to keep all 30 of the combined groups’ brands, and beginning a complex integration process that may take another year to two years to complete. The US$13 billion merger creates the world’s largest hotel company, with more than 1.1 million rooms and about 5,700 hotels in more than 110 countries. Marriott is estimating that the merger will deliver cost savings of around US$250 million per year.

Pandox to Acquire the Hilton Grand Place Brussels 

Stockholm-based Pandox AB is to purchase the Hilton Grand Place Brussels in Belgium for €55 million (€245,500 per room). A further €3 million will be invested in the hotel, which is adjacent to Brussels’ famous Grand Place, in order to upgrade its 224 guest rooms over 2017 and 2018. Commenting on the acquisition, Pandox’s chief executive officer, Anders Nissen, said, “The hotel property adds a distinct value to Pandox’s hotel portfolio in the continued development of the hotel market in Brussels.”

Hyatt Sells the Hyatt Regency Birmingham 

An affiliate of Hyatt Hotels Corporation has sold the 319-room Hyatt Regency Birmingham in the UK to an affiliate of UAE-based Bin Otaiba Investment Group for approximately £38.6 million (£121,000 per room). The 24-storey hotel, in Birmingham city centre, will continue to operate as a Hyatt Regency property, as Hyatt has entered into a management agreement with Bin Otaiba. The hotel is directly connected to the International Convention Centre via a walkway and is also close to many of the city’s other landmarks, such as the Mailbox and Bullring shopping centres and the Symphony Hall. The hotel will benefit from a £2.7 million investment by its new owner to carry out improvements over the next three years.

HVS Delivering Keynote Speech at Hotel Finance Briefing in London 

The agenda has now been announced for the Hotel Finance, Investment and Development in the UK & Continental Europe briefing, which will take place at Le Méridien, Piccadilly in London. HVS London director Sophie Perret will be kicking off the event with a keynote speech entitled, "Who is investing and what are the values in the different market segments". A wide range of topics will be covered at the briefing, which is aimed at hotel owners, investors and operators; their chief executives, finance directors and financial controllers; brands; and lenders. For more information or to book a place visit www.henrystewartconferences.com. HVS Newsletter readers can get a 10% discount on the ticket price by entering the code HVS10.

Montenegro Gets its First Hilton 

Hilton Worldwide has made its first appearance in Montenegro. The former Crna Gore Hotel, which was built in 1953 as the first hotel in Montenegro’s capital, Podgorica, underwent an extensive renovation to bring it in line with Hilton standards and officially reopened this week as the Hilton Podgorica Crna Gora. The 180-room hotel has 727 m² of event space, including the Crystal Ballroom which is the largest in the city.

Moxy Makes its Debut in Berlin... 

Marriott International has opened its first Moxy hotel in Berlin and its third under the brand in Germany overall. The 210-room Moxy Berlin is in the city’s Ostbahnhof area and joins the 172-room Moxy Frankfurt Eschborn and 252-room Moxy Munich Airport. The Moxy Berlin is owned and was developed by Vastint Hospitality and is operated by Norwegian group Nordic Hospitality under a franchise agreement. Marriott now has six Moxy hotels in operation worldwide.

...As Meliá Makes its Mark in Leipzig... 

Meliá Hotels International has opened its first hotel in the German city of Leipzig. The 177-room INNSIDE by Meliá Leipzig was constructed across two historic buildings in the city centre opposite St Thomas Church, which is famous for being the workplace of Johann Sebastian Bach. Majorca-based Meliá currently has 13 INNSIDE by Meliá hotels in Germany, and 26 hotels across the country overall.

...Park Plaza Adds Nuremberg to its Portfolio... 

Carlson Rezidor has opened its first upscale Park Plaza property in the Bavarian city of Nuremberg in southeast Germany. The Park Plaza Nuremberg is opposite the city’s main railway station and adjacent to the historic Old Town. The 177-room hotel is Carlson Rezidor’s third hotel in the city and joins the 148-room Park Inn by Radisson Nuremberg and the 105-room Park Inn by Radisson Neumarkt.

...And Leonardo Opens Hotel Number Nine in Munich 

Just in time for Munich’s Oktoberfest, Leonardo Hotels has opened its ninth hotel in the southeast German city – 18 months after construction started, the 159-room Leonardo Hotel Munich City South is welcoming its first guests. The group isn’t stopping at nine however as there are already another two Leonardo hotels in the pipeline for Munich due to open next year.

More Mercure Magic for Central London 

AccorHotels is all set to open its third central London Mercure hotel in November, just in time for Christmas! The 72-room Mercure London Hyde Park has been developed across four grade-II-listed town houses on Talbot Square, within a two-minute walk from Lancaster Gate and Paddington London Underground stations, and five minutes from the city’s famous Hyde Park. “Accelerating the franchise growth of the Mercure brand is one of our strategic priorities and this is the kind of opportunity we’re looking to replicate in the right sites across the UK,” said Thomas Dubaere, managing director of AccorHotels UK and Ireland.

Wake Up in a W in Dubai 

Starwood Hotels & Resorts' W brand has made its debut in Dubai this week with the opening of the W Dubai – Al Habtoor City, becoming the second W property in the Middle East region (the W Doha opened in 2009). Dubai’s first W is owned by Al Habtoor Group. The 33-storey, 356-room hotel is part of the emirate's Al Habtoor City urban resort project, which also houses two other Starwood hotels. The group has four W hotels in its pipeline due to open in the Middle East over the next few years, including a second hotel for Dubai, the W Dubai – The Palm.

Holiday Inn for Dubai Science Park 

InterContinental Hotels Group (IHG) has signed a managed agreement with an affiliate of the Rolaco Group for a Holiday Inn property in the Dubai Science Park free zone community. The 402-room Holiday Inn Dubai Science Park is expected to open in 2019, close to the emirate’s Arabian Ranches and Motor City developments. IHG currently has 13 properties in operation in Dubai, seven of which are Holiday Inn-branded hotels.

Absolute Share Price Performance Over the Past Week – 15-22 September 2016 

 

 

Scandic Hotels – Strengthens its Executive Committee by including country heads.

NH Hotel Group – Intends to issue senior secured notes worth up to €285 million.

 

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.

Superior Results through Unrivaled Hospitality Intelligence. Everywhere.

HVS.com
<>