EMEA Hospitality Newsletter – Week Ending 24 March 2017 (March 25, 2017)

Surfs Up for Jo&Joe 

AccorHotels has revealed that it plans to open its first Jo&Joe property in the French surfers’ paradise of Hossegor, on the country’s southwest coast, at the end of May. The 145-bed property is the product of a collaboration between AccorHotels and sports brands Quiksilver and Roxy and is located between Hossegor’s lake and the beach. Part of AccorHotel’s economy brand portfolio, Jo&Joe was launched last year in September and is aimed at Millennials, blending the best components of hotels, hostels and private rental platforms. With plans to expand rapidly, the brand will open properties in Paris and Bordeaux next year and aims to have a presence in around 50 destinations by 2020.

Killeavy Castle Estate to be Developed into a Hotel and Spa  

The Killeavy Castle Estate in South Armagh, Northern Ireland, is to undergo a £10 million restoration that will transform it into a 40-room luxury hotel and spa. Work is already under way on the listed buildings and the project is expected to be completed in late 2018. The estate was acquired at auction in 2013 by Jaramas Investments NI after it had been unoccupied for more than ten years and had become derelict. The castle will be used as a guest house and meeting venue and the outbuildings will house the 40-room boutique hotel; additionally, the project also includes the construction of a permanent marquee adjacent to the castle for hosting special events.

Travelodge Expands in Newcastle 

UK budget chain Travelodge is planning to open a new hotel in Newcastle, in northeast England, increasing its portfolio in the city to six hotels. The 120-room property is already under construction in former BT offices overlooking the River Tyne, close to the city’s iconic Swing Bridge. The hotel is expected to cost approximately £11 million to complete and is scheduled to open later this year. The group is opening 15 Travelodge properties this year and has big plans for further expansion: "More than one in three hotels in the US are branded budget, compared to around one in five in the UK,” said Travelodge’s chief executive, Peter Gowers. "With room to grow, we have identified 250 further locations where we believe we can take Travelodge over the years ahead,” he added.

Mandarin Oriental in Bodrum Reopens in Time for Summer Season 

The Mandarin Oriental, Bodrum in southwestern Turkey is due to reopen on 1 April, just in time for summer, after undergoing improvements over the winter including new fitness and wellness facilities and the inclusion of butler service for all room categories. The 129-room beachfront resort, in Paradise Bay, overlooks the Aegean Sea.

First Aloft Hotel Signed for Mauritius 

Marriott International has signed an agreement that will see it launch its Aloft brand in Mauritius. The Aloft Mauritius Port Louis is expected to open in early 2019 in the Mauritian capital’s central business district. An existing nine-storey office building will be transformed into the 150-room hotel, which is owned by Green East Master Ltd. Marriott currently has three hotels in operation in Mauritius (under its St. Regis, Le Méridien and Westin brands) and another hotel under development (Sheraton). The Aloft Mauritius Port Louis is the group’s first adaptive reuse project in Africa.

Sarovar Signs its First Hotel in Zambia 

Indian group Sarovar Hotels & Resorts has extended its African portfolio to five countries with the signing of its first property in Zambia. The 82-suite Sarovar Premiere Lusaka is expected to open in 2018 in the Zambian capital’s city centre. Mumbai-based Sarovar currently has 75 hotels in operation across 50 destinations.

Hilton Resort Opens on the Shores of the Dead Sea in Jordan 

Hilton Worldwide’s flagship Hilton Hotels & Resorts brand has made its first appearance in Jordan with the opening of the Hilton Dead Sea Resort & Spa, which is adjacent to the King Hussein bin Talal Convention Center (also managed by Hilton). At 410 metres below sea level, the 285-room hotel, on the eastern shores of the Dead Sea, is at the lowest point on earth. The hotel is 45 km from Jordan’s capital, Amman, and is the group’s second property in the country overall, joining the 173-room DoubleTree by Hilton Aqaba.

MGM and Bellagio Coming to the Middle East 

MGM Resorts International has been selected by Wasl Hospitality and Leisure to manage two hotels on Jumeriah Beach in Dubai, UAE, resulting in the debut of the US-based group in the emirate. The project will include an MGM hotel, an MGM Residences and a Bellagio hotel (1,000 rooms and ten villas) and will mark the first appearance of the MGM and Bellagio brands in the Middle East. The 26-acre beachfront development is currently expected to open in 2021.

Additional Ascott for Al Khobar 

Singapore-based serviced residence owner-operator The Ascott Limited has signed an agreement with developer AREIC for a new property in the Saudi Arabian coastal city of Al Khobar, in the country’s Eastern Province. The Citadines Al Khobar will have 54 one-bedroom apartments, a breakfast area, a residents’ lounge and a gym. The property is the third in Ascott’s Al Khobar pipeline, joining the Ascott Corniche Al Khobar, due to open next year, and the Somerset Downtown Al Khobar, which is expected to welcome its first guests in 2019.

Mövenpick to Move into Oman for the First Time… 

Mövenpick Hotels & Resorts has signed an agreement with the Civil Service Employees Pension Fund to operate its first hotel in Oman. The Mövenpick Hotel & Apartments Al Azaiba Muscat is to be developed in Muscat’s Ghala District and is expected to have 274 rooms and suites and 50 serviced apartments. “Oman’s tourism industry is flourishing, and we are enormously encouraged by the government and private sector’s commitment to exploit its true potential,” said Amir Lababedi, HVS alumnus and vice president development – Middle East and Africa for Mövenpick. “This management agreement consolidates Mövenpick’s position as one of the region’s leading hotel operators and marks another milestone in our strategy to maximise our exposure in every major Gulf Cooperation Council (GCC) market,” he added.

…As IntercityHotel Plans Property Number Two 

Deutsche Hospitality has signed a management agreement with Muscat National Development and Investment Company for its second IntercityHotel in Oman. The brand made its debut in the country with the IntercityHotel Salalah last year and will now expand into the Omani capital with a six-storey 285-room hotel in central Muscat, due to open by 2020. “The Middle East is a significant destination, both for leisure tourism and business travellers. It is a part of the world where Deutsche Hospitality is outstandingly well placed,” commented the group’s chief executive officer, Puneet Chhatwal.

Absolute Share Price Performance Over the Past Week – 16-23 March 2017 


 

InterContinental Hotels Group – Although share prices dropped over the past week, Credit Suisse reiterated its "outperform" rating and noted a target price of 4,330p.

Scandic Hotels – Novobis increases shareholding in Scandic from about 10.0% to about 15.8% of total number of shares and votes.

 

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.

 

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
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
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Hala Matar Choufany, Managing Director – HVS Dubai hchoufany@hvs.com
Ezio Poinelli, Senior Director – HVS Milan epoinelli@hvs.com
Louise Fury, Senior Editor and EMEA Hospitality Newsletter Author – HVS London lfury@hvs.com

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