EMEA Hospitality Newsletter – Week Ending 20 October 2017 (October 21, 2017)

Blackstone Buys Spain's Hotel Investment Partners

Blackstone Real Estate Partners Europe has announced that it has agreed to acquire Spanish hospitality company Hotel Investment Partners (HI Partners) for €630.7 million from Banco Sabadell. The HI Partners portfolio comprises 14, mainly coastal, hotels (more than 3,700 rooms) across Spain’s most popular tourism destinations. “We are delighted to make another substantial investment in Spain and to have the opportunity to partner with the HI Partners management team, working with them to continue to execute their strategy of growing HI Partners into Spain’s premier hospitality business," said Anthony Myers, Head of Real Estate Europe at Blackstone.

Carton House Hotel Kildare Sold

US business man John Mullen has purchased the Carton House Hotel Kildare in the town of Maynooth, 14 miles outside Dublin city centre, in Ireland, for €57 million (€345,500 per room). The 668-acre estate includes the 165-room hotel (housed across the historic 18th- century former home of the Earls of Kildare and a new hotel complex and spa) and two championship golf courses.

New Owner for the Hampton by Hilton at London Stansted Airport

Legal & General has acquired the recently opened Hampton by Hilton London Stansted Airport from Urban&Civic for £48.3 million (£135,300 per room). The 357-room hotel, which is the largest Hampton by Hilton property in Europe, benefits from direct access to the airport’s terminals via a covered walkway and good connections into central London.

MEININGER Moving to Bordeaux

Hybrid hostel/hotel group MEININGER Hotels has signed an agreement for a property in Bordeaux in southwestern France. The 5,530 m² hotel will be close to the city’s main railway station and is due to open in the first quarter of 2020 with 162 rooms (493 beds) over six floors.

Scandic Signs New Hotel for Finland

Scandic Hotels has signed an agreement with property owner LocalTapiola to operate a hotel in the Hamburger Börs hotel and restaurant complex in the city of Turku on Finland’s southwest coast. Once the hotel’s current contract ends in June 2019, the property will undergo a two-year renovation and expansion. Scandic plans to reopen the hotel (with 300 guest rooms) in 2021. “We will invest a lot of time and effort in to restoring this historic building, true to its heritage, and create a spectacular hotel, commented Aki Käyhkö, managing director of Scandic Finland.

Carlson Rezidor Adds a Trio of Hotels to Its African Pipeline

Carlson Rezidor Hotel Group has announced three new properties for Africa, adding 530 rooms to its African development pipeline. The 152-room Radisson Blu Hotel, Bishoftu will be Ethiopia’s first internationally branded hotel outside of Addis Ababa; the hotel will be on Lake Babogaya in Bishoftu, 35 km southeast of the country’s capital. The Park Inn by Radisson Addis Ababa will mark the debut of the group’s midscale Park Inn brand in Ethiopia; the 160-room hotel will be 2.7 km from the airport on a main road that links the airport to Addis Ababa’s central business district. The Aso Towers Hotel & Residences Abuja will be part of a mixed-use development in the Nigerian capital’s central business district; the project will include a 29-storey tower containing a 218-room hotel plus an 18-storey residential tower housing 24 studio units, 48 two-bedroom apartments and 12 three-bedroom units. “Africa remains a focus market for our growth journey and we remain committed to the continent,” said Elie Younes, HVS alumnus and executive vice president and chief development officer for Carlson Rezidor.

Leonardo Makes it a Triple in Jerusalem

Fattal Hotel Management has opened its third hotel in Jerusalem, Israel. The group invested ILS30 million (€7.2 million) in developing the Leonardo Boutique Jerusalem Hotel, which is at the heart of the Israeli capital, within walking distance from the Old City. The 74-room hotel joins sister properties, the Leonardo Plaza Jerusalem and the Leonardo Jerusalem.

Rotana Opens its first Centro Hotel in Riyadh

Hotel management company Rotana and investment manager SHUAA Capital Saudi Arabia have opened the Centro Waha Riyadh, the first Centro property in Riyadh and the second in Saudi Arabia overall. The 290-room hotel is on Al Olaya street in the city’s Al Murooj district. “The new hotel is a unique part of Rotana’s eventful journey in the Saudi market. Business travel and accommodation for the budget conscious executive is an increasingly important market and the Centro concept is specifically designed to cater to this rapidly expanding market,” said Rotana’s president and chief executive officer, Omer Kaddouri. Rotana currently operates more than 1,200 rooms across Saudi Arabia.

Mövenpick Signs its Third Hotel for Muscat

Mövenpick Hotels & Resorts has signed an agreement with the Golden Group of Companies, for its third project in Muscat, Oman. The 370-key (245 rooms and suites and 125 serviced apartments) Mövenpick Hotel Muscat Airport will be part of a mixed-use development currently under construciton near Muscat International Airport and due to open in 2021. The deal expands the groups development pipeline for Oman to three properties (also including the recently signed Mövenpick Hotel & Apartments Al Azaiba Muscat and Mövenpick Hotel Bausher Muscat).

Absolute Share Price Performance Over the Past Week – 12-19 October 2017


PPHE Hotel Group – The group's deputy chief executive and chief financial officer, Chen Moravsky, is to step down from both roles at the end of this year.

InterContinental Hotels Group – The group's minority interest in Avendra to be sold.

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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