EMEA Hospitality Newsletter – Week Ending 25 August 2017 (August 26, 2017)

Radisson Blu Hotel in Bucharest to be Sold by the End of the Year 

Israel-based Elbit Imaging has signed a non-binding agreement to sell a 98.2% stake in the Radisson Blu Hotel, Bucharest in Romania's capital to an investment fund for €177.5 million (€364,500 per room). The 487-room hotel is part of a complex in the city centre that also includes the Park Inn by Radisson Bucharest Hotel & Residence.

Starwood Capital Sells the Denham Grove Hotel in Uxbridge 

Neal Khanna, the owner of an Asian catering firm (which includes the Clay Oven restaurant in West London), has acquired the Denham Grove, Uxbridge in the UK from Starwood Capital off a guide price of £13 million (£130,000 per room). The 100-room hotel, set in 42 acres of grounds in the county of Buckinghamshire, is to be operated by management company Countrywide Hotels and will undergo a £3 million refurbishment, with the aim of repositioning the property as a premier four-star hotel. The hotel was previously part of the Principal Hotel Company portfolio, which was purchased by Starwood Capital in 2014.

Port Hotels Purchases Two New Hotels 

Spanish hotel group Port Hotels has acquired the seven-storey, 126-room Holiday Inn Alicante-Playa de San Juan and three-storey, 90-room Holiday Inn Elche for an undisclosed sum. The four-star hotels are in Spain’s Alicante province. Both properties will undergo refurbishment.

Staybridge Suites Steps into Poland 

InterContinental Hotels Group (IHG) has signed a franchise agreement with WIK Capital that will see its Staybridge Suites brand make its debut in Poland. The new-build, 190-room Staybridge Suites Warsaw Ursynów is expected to open in late 2019 in the capital’s Ursynów district. “As the financial hub of Poland, Warsaw is the perfect location for the brand,” said Miguel Martins, Director, Development Poland, IHG. The hotel will be the eighth Staybridge Suites hotel in Europe when it opens and it joins five other properties in the brand’s European pipeline.

Autograph Collection Goes from a Duo to a Trio in Madrid 

Marriott International’s Autograph Collection chain of independent hotels has increased its portfolio in Madrid, Spain, to three properties with the opening of the 71-room Hotel Círculo Gran Vía, Autograph Collection. The hotel, at the heart of the Spanish capital, is housed in the former home of the Merchant’s and Industrialist’s Circle. The building was originally constructed in the 1920s and recently underwent a multimillion US dollar renovation.

Scandic Signs New Hotel for Copenhagen 

Scandic Hotels has signed an agreement with HM 2 A/S to operate a hotel in central Copenhagen, Denmark. With 632 guest rooms, the Scandic Specturm will be the largest hotel in the group’s portfolio. The hotel is scheduled to open in 2021 close to the city’s Central Station, Tivoli Gardens, the City Hall and the harbour. “There is a high demand for hotels in Copenhagen and we’re extremely happy to have access to a big new hotel in such an attractive location”, said Even Frydenberg, Scandic’s president and chief executive officer. Scandic currently has nine hotels in operation in the Copenhagen area.

Meliá Hops INNSIDE Hamburg 

Meliá Hotels International has opened its first hotel in the port of Hamburg, northern Germany. The INNSIDE Hamburg Hafen is between Hamburg’s Warehouse district and Harbour City, two kilometres from the city’s main railway station. The Spanish group currently has 27 hotels across Germany.

Rezidor Opens Two New Radisson Blus in Saudi Arabia… 

Carlson Rezidor has opened two new Radisson Blu hotels in Saudia Arabia. The 110-room Radisson Blu Hotel, Buraidah is the first of its brand in the capital of the country’s Al-Qassim Region, Buraidah, which is an important agricultural centre for date, cereal and citrus fruit production. The 142-room Radisson Blu Hotel, Jeddah Al Salam has become the group’s fourth hotel in Jeddah, the Kingdom’s second largest city.

…As Millennium Signs a New Project for Mecca 

Millennium Hotels & Resorts has reportedly signed a management agreement with Makkah Construction & Development Company to operate a new development in the Saudi Arabian city of Mecca, as of September 2017. The Makkah Hilton Hotel and Makkah Hilton Towers will be reflagged at the end of August as the Makkah Millennium Biltmore Hotel and Towers, which is expected to have around 1,400 keys. The group currently has five hotels in operation across Saudi Arabia, one of which is in Mecca, and a further 21 in the pipeline for the country.

Absolute Share Price Performance Over the Past Week – 17-24 August 2017 

 

Whitbread – Goldman Sachs had upgraded its stance on the group to 'neutral' from 'sell' following recent share price underperformance.

Marriott International – Selects candidates ahead of Tahseen launch in Saudi Arabia.

 

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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