HVS EMEA Hospitality Newsletter – Week Ending 5 May 2017 (May 6, 2017)

Motel One Sells Hotels in Berlin and Nuremberg 

Motel One has sold the 505-room Motel One Berlin-Central Station, in Germany’s capital, and the 133-room Motel One Nuremberg-Plärrer, in southeast Germany, to LHI Leasing under a sale-and-leaseback agreement for €77 million (€120,700 per room). Munich-based Motel One currently operates 56 hotels across Germany, Austria, the UK, the Netherlands, Switzerland, Belgium and the Czech Republic.

Leeu Collection Buys First Site in London 

Leeu Collection has acquired a former office building in London’s West End, marking the South African-based group’s first move into the UK capital. The building, on Newman Street, reportedly comes with detailed planning consent for a 100-room luxury hotel and Leeu plans to open the property in 2019. This is not the group’s first appearance in the UK as it opened its first hotel in the country in January 2016: the 30-room Linthwaite House near in Windermere in the Lake District. Leeu currently also owns and operates three properties in Franschhoek in South Africa and has a hotel in the pipeline for Florence, Italy, due to open in 2021.

MEININGER on its Way to Lyon 

MEININGER Hotels, owned by Cox & Kings, has signed an agreement with Fonciere des Regions for a hotel in Lyon, in east-central France. The hotel, in the city centre, will have 169 rooms (580 beds) over seven floors and is scheduled to open in mid-2019. "We are very happy with this great new addition to our portfolio and about realizing it together with Fonciere des Regions,” said Hannes Spanring, chief executive officer of MEININGER Hotels.

Sandman to Sprinkle More Hotels Across the UK 

Canadian firm Sandman Hotel Group first entered the UK market in 2011 with the 170-room, 11-storey Sandman Signature Newcastle Hotel, in northeast England, and has since opened the 151-room, seven-floor Sandman Signature London Gatwick Hotel, at London’s Gatwick Airport. This week, the group announced that it is now searching the UK for new sites in order to open more hotels across the country; the family owned group already has its third UK hotel in the pipeline for the Scottish city of Aberdeen and it will be investing more than £20 million in the project.

Fairmont to Make its Debut in Morocco 

AccorHotels has signed a management contract with Mauritian-based hospitality owner and management company New Mauritius Hotels Ltd that will see the French group relaunch an existing property 12 km from Marrakech under its Fairmont Hotels and Resorts brand later this month, marking the brand’s debut in Morocco, North Africa. The 134-room Fairmont Royal Palm Marrakech is set amongst a 231-hectare olive grove with views of the Atlas Mountains. The mixed-use development includes 95 private residences and Fairmont-branded residences are also planned for the site. “Morocco is a strategic market for us and one in which we are witnessing solid growth and momentum,” said Olivier Granet, AccorHotels’ chief operating officer and managing director for the Middle East and Africa. “With 37 hotels currently within our portfolio, we look forward to complementing the country's already robust tourism development plan, and to reinforce our global development objective for Africa overall by doubling our network to reach 200 hotels,” he added.

Hilton Hops into Bahrain 

Hilton Worldwide has got together with KFCD and Mabanee Company S.A.K. to open the first Hilton Hotels & Resorts property in Bahrain. The Hilton Bahrain Bay Hotel & Residences will be directly attached to The Avenues, a mixed-use retail and leisure destination in Manama due to open later this year. The hotel, already under construction on Bahrain Bay waterfront, is scheduled to open in early 2020 with 150 apartments and 60 studio suites.

Mandarin Oriental Announces a Second Project for Dubai 

Mandarin Oriental Hotel Group has announced a second project for its pipeline in Dubai. The group’s newest project in the emirate will be part of the 63-storey, mixed-use wasl tower development on Sheik Zayed Road in downtown Dubai. The hotel will have 257 guest rooms, suites and serviced apartments on floors 16 to 18 of the tower; additionally, 144 Residences at Mandarin Oriental will be housed across the tower’s upper floors. The hotel joins the group’s existing project in Dubai, the Mandarin Oriental Jumeirah Beach, which is already under construction and expected to open in the fourth quarter of 2018. Both of the upcoming Mandarin Oriental hotels in Dubai are owned by wasl Asset Management Group.

More DoubleTree by Hilton for Dubai 

Hilton Worldwide has signed a double deal with developer Nakheel that will see the group expand its DoubleTree by Hilton chain in the emirate of Dubai with 704 new hotels rooms and serviced apartments. The pair inked a management agreement for the DoubleTree by Hilton Dubai Al Khail Avenue, which is already under construction at Jumeirah Village and due to open in 2019; the 254-room hotel will be directly linked to the mixed-use Al Khail Avenue retail and dining destination. Additionally, a letter of intent was signed for the DoubleTree by Hilton Hotel & Residences Deira Islands; this property is expected to open by 2020, as part of the Deira Boulevard community at the heart of the Deira Islands waterfront city, with 250 hotel rooms and 200 serviced apartments.

Absolute Share Price Performance Over the Past Week – 27 April-4 May 2017 

 

PPHE Hotel Group – Reported a like-for-like revenue increase of 17.0% to £53.3 million for the first quarter of 2017.
Scandic Hotels – Will publish its interim report for the first quarter of 2017 on 10 May 2017.

 

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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Simon Tucker Brown, Managing Director – HVS Executive Search Europe & Middle East stuckerbrown@hvs.com
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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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