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

Pandox Preferred Bidder for Jurys Inn 

Swedish hotel investment group Pandox has been selected as the preferred bidder for the purchase of the Jurys Inn portfolio after placing a bid of around £800 million. The portfolio, which is being sold by US private equity firm Lone Star Funds, includes 36 Jurys Inn hotels (across the UK, Ireland and Czech Republic) and the Hilton Garden Inn London Heathrow. It is reported that Pandox has teamed up with Fattal Hotels' owned Leonardo Hotels as its operating partner for the deal.

Fonciere des Regions to Purchase Four NH Hotels 

French property group Fonciere des Regions is to purchase four hotels in Germany and the Netherlands from NH Hotel Group for €111 million (approximately €174,000 per room). The hotels, in Berlin, Hamburg, Amsterdam and Amersfoort, total 637 rooms and NH will continue to operate them under new 20-year leases. 

McAleer & Rushe Sell Newcastle Maldron Development 

UK Commercial Property Trust has acquired the Maldron hotel development in Newcastle, northeast England, from McAleer & Rushe for £32.7 million (£123,400 per room). The six-storey, 265-room hotel is being constructed on Newgate Street and due to be open in March 2019 as the first Maldron property in England. The hotel is let to Dalata Hotel Group on a 35-year lease.

IntercityHotel Announced for Flensburg 

Deutsche Hospitality is planning to open an IntercityHotel in Flensburg, Germany’s northernmost town at just under ten kilometres from the Danish border. The new-build IntercityHotel Flensburg is expected to open in 2020 at Flensburg’s main railway station. The 152-room hotel will be operated under a lease agreement with IntercityHotel’s partner company, JARA Grundstücksentwicklungsgesellschaft mbH.

Courtyard by Marriott to Debut in Bosnia and Herzegovina  

Marriott International has signed a franchise agreement with MMI Razvoj projekata for its first property in the city of Banja Luka, Bosnia and Herzegovina. The 118-room Courtyard by Marriott hotel will mark the brand’s debut in the country when it opens in May 2019 in the city centre. Marriott currently has two hotels in Bosnia and Herzegovina, in the country’s capital and largest city, Sarajevo.

Holiday Inn Express Checks into Moscow 

InterContinental Hotels Group (IHG) has opened its first Holiday Inn Express hotel in Moscow and its second in Russia overall. The Holiday Inn Express Moscow – Paveletskaya is close to the city’s Paveletskaya Station, with a direct connection to Domodedovo Airport. The 243-room hotel is managed by Cosmos Group. “A much-visited global hotspot, Moscow is a great location for our second Holiday Inn Express in Russia”, said Mike Greenup Vice President, Brand Management for Holiday Inn Express. “As we continue to grow the brand, it’s encouraging to see it being embraced by local and international travellers alike. Holiday Inn Express makes a great base for travellers to explore the sights nearby,” he added. IHG currently has 26 hotels open in Russia and the CIS region, and a further 19 in its development pipeline.

Crowne Plaza to Make its Debut in Cairo… 

InterContinental Hotels Group (IHG) has signed an agreement with Al Badr For Investments and Commercial Spaces Company for its first Crowne Plaza property in Cairo, Egypt. The 187-room, new-build Crowne Plaza Cairo Sheikh Zayed City is scheduled to open in 2021 at the centre of Sheikh Zayed City. The hotel will be part of the Arkan Plaza mixed-use development, 15 minutes away from the city’s historic Pyramids of Giza. “The latest addition to our portfolio in Cairo underscores our commitment to the market and our overall expansion plan in MENA," said Rajit Sukumaran, IHG’s chief development officer for Asia, the Middle East and Africa. IHG currently has five hotels in operation in Cairo under its InterContinental, Holiday Inn and Staybridge Suites brands.

…And Mövenpick Signs a New Resort for Egypt’s North Coast 

Mövenpick Hotels & Resorts has signed an agreement with Cairo-based Arabia Investment & Tourist Development SAE for a resort on Egypt’s north coast. The Mövenpick Hotel & Residences North Coast, Egypt is scheduled to be completed in 2020 and will be part of a wider upscale mixed-use development. The resort, just 15 minutes away from Borg El Arab International Airport by road, will have 150 hotel rooms and 150 branded units (which will become part of a rental pool). Mövenpick currently operates 16 hotels, resorts and river cruises across Egypt.

A Second Novotel Signed for Oman 

AccorHotels has signed a management agreement with investment holding company Al Anwar Holdings for a new Novotel property in Oman. The 200-room Novotel Muscat Azaiba is expected to open in 2020 as the closest internationally branded midscale hotel to the Oman Exhibition & Conference Centre. This is the French group’s second Novotel project in the sultanate following the recent signing of a management agreement with Oman Hotels & Tourism Company for the Novotel Muscat Al Khuwair.

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

 

NH Hotel Group – Barceló Hotel Group has made a preliminary merger proposal to NH, in which Barceló Group proposes to have 60% of the shared company and a majority on the board.

Pandox – EBITDA for the first half of 2017 amounted to SKr1.654 million.

 

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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