EMEA Hospitality Newsletter – Week Ending 8 December 2017 (December 9, 2017)

New Owners for the Le Méridien Frankfurt and Ireland’s Knightsbrook Hotel 

In a joint venture with two of its main shareholders, City Developments and Tai Tak Estates, First Sponsor is set to purchase the Le Méridien Frankfurt in Germany for €85 million (€283,000 per room). The freehold, 300-room hotel is adjacent to Frankfurt’s main railway station and operated under a franchise agreement with Starwood Hotels & Resorts. The deal is expected to close by the end of the year/early 2018. Other European hotel sales announced recently include the purchase of the 131-room Knightsbrook Hotel, Spa & Golf Resort, in the town of Trim, Ireland, for €19.5 million (€149,000 per room) by private investors. The four-star resort is set within 186 acres of parkland, just 35 minutes from the capital, Dublin. The sale is reported to be the biggest hotel deal in Ireland in 2017.

Rezidor Signs Six New Properties Across Key Markets… 

The Rezidor Hotel Group has recently signed six new hotels, adding more than 1,000 rooms to its portfolio. The latest additions to the family are the 168-room Park Inn by Radisson Katowice in Poland, due to open in the first quarter of 2018; the 150-key Radisson Blu Hotel & Apartments Douala in Cameroon, which is scheduled to open in 2019; the 160-room Radisson Blu Hotel and Resort, Gudauri, opening in Georgia’s leading international ski resort; the 200-key Park Inn by Radisson Hotel & Apartments, Riyadh Olaya North and the 200-key Park Inn by Radisson Hotel & Apartments, Dammam West Avenue in Saudi Arabia, both of which are owned by Gulf Real Estate Company and expected to open in the fourth quarter of 2019; and the 127-room Radisson Blu Hotel, Beirut Verdun in Lebanon, a product of a management agreement with Les Dunes Hospitality and expected to open this month. “We are delighted to have signed new hotels in a number of our key target regions, signaling our commitment to deliver a renewed asset-right strategy with a strategic mix of emerging and mature markets,” commented HVS alumnus and executive vice president and chief development officer for The Rezidor Hotel Group, Elie Younes.

…And Opens its Sixth Park Inn by Radisson Hotel in Turkey 

Rezidor has opened its sixth Park Inn by Radisson property in Turkey. The 127-room Park Inn by Radisson Istanbul Ataşehir is on Istanbul’s Asian side in Ataşehir, one of the city’s new suburban districts, close to the city centre. “We continue to grow our portfolio in Istanbul, where Radisson Blu – our upper upscale hotel brand – is the leader in its segment,” said Tim Cordon, area senior vice president, Middle East, Turkey and Africa, for Carlson Rezidor Hotel Group. “Park Inn by Radisson brand is designed for the mid-market segment travelers looking for an international hotel experience at great value,” he added. Rezidor currently has 24 hotels (more than 4,600 rooms) in operation or under development across Turkey.

Yotel Set to Debut in Scotland 

Affordable luxury chain yotel has announced plans for its Scottish debut with a hotel in Edinburgh, Scotland. The 280-room property is scheduled to open in the city centre in the first quarter of 2019 at Erskine House on Queen Street. The hotel will be designed by Fletcher Joseph Architects and interior designer Aedas.

Hôtel Martinez to Reopen as Part of Hyatt’s Unbound Collection 

Following a renovation, the Grand Hyatt Cannes Hôtel Martinez, on the French Riviera overlooking the Bay of Cannes, is to reopen on 5 March 2018 as part of Hyatt HotelsUnbound Collection, becoming the second European hotel to join the collection of unique and independent properties alongside the Hotel du Louvre, in Paris. The collection was launched in 2016 and now includes six properties worldwide. The 409-room Hôtel Martinez, which was once home to English aristocrats, first became a hotel in 1929.

There’s Room in Munich for Marriott’s Autograph Collection 

The Roomers Munich has opened, becoming Marriott International’s fourth Autograph Collection hotel in Germany. The 281-room property is in Munich’s Westend district. “With its unparalleled location, immersive design and bespoke dining experiences, Roomers Munich perfectly embodies the exactly like nothing else ethos of the brand,” commented Brian Povinelli, senior vice president and global brand leader at Autograph Collection Hotels. The hotel was created by Amsterdam-based design company Gekko Group.

Rosewood Announces a New Brand – KHOS 

Rosewood Hotel Group has launched a new brand: KHOS is an upscale business concept that is lifestyle oriented and inspired by the “energy, art, innovation, creativity, style and dynamism of modern-day Asia”. The name is derived from the Mongolian word for pair and the chain is to be developed in capital cities and up-and-coming business centres; the first KHOS hotels will open in 2018.

Crowne Plaza on its Way to Poland 

InterContinental Hotels Group (IHG) has signed a management agreement for its first Crowne Plaza property in Poland. The 212-room Crowne Plaza Warsaw Hub is to be constructed alongside the 218-room Holiday Inn Express Warsaw Hub, becoming the group’s first dual-branded complex in the country. The site is at the centre of Warsaw’s central business district. The Crowne Plaza hotel will occupy floors 11 to 21 of the complex and the Holiday Inn will be housed over floors three to ten. IHG currently has nine hotels (1,459 rooms) in operation across Poland and ten in its development pipeline (2,101 rooms).

Waldorf Astoria Jerusalem Sold 

It was reported recently that the Reichmann family has sold the 226-room Waldorf Astoria Jerusalem in Israel to a French group led by Michel Ohayon for an estimated US$130 million (US$575,000 per room). The Canadian Reichmann family purchased the former Palace Hotel, a stone’s throw from the Old City, in 2005. The transformation of the historic building started in 2007 and Israel’s first Waldorf Astoria welcomed its first guests in April 2014.

Raffles to Open in Dubai’s Palm 360 Project 

AccorHotels has signed a management contract with Nakheel for a Raffles-branded hotel and residences in the twin-tower Palm 360 project in Dubai. The Raffles The Palm Dubai Hotel and Raffles Residence Palm 360 are expected to open in 2021 alongside the Palm 360 project, which will be the tallest structure on the man-made Palm Jumeriah development at 260 metres high. The Raffles hotel will have 125 rooms and suites and the Raffles residences will contain 359 units.

Jumeirah Group to Enter the Bahrain Market 

Dubai Holding has signed a management agreement with Sevens Holding SPC that will see the investment conglomerate make its first appearance in Bahrain through its hospitality arm, Jumeirah Group. The beachfront 167-room Jumeirah Royal Saray – Bahrain is scheduled to open on 27 February 2018. Jumeirah Group currently operates 20 hotels in nine locations. “This signing is a significant landmark in achieving our strategic expansion goals worldwide, and this elegant hotel will be an excellent addition to the Jumeirah Group portfolio. We are very much looking forward to welcoming guests from the local community, as well as introducing this stunning destination to international travelers," said Dubai Holding’s chief executive officer, Edris Al Rafi.

Absolute Share Price Performance Over the Past Week – 30 November 2017-7 December 

 

Meliá Hotels International – Had been in talks with Elegant Hotels Group plc about a potential all-cash takeover bid but the discussions have been terminated.

Scandic Hotels – The Finnish Competition and Consumer Authority has approved Scandic’s acquisition of Restel’s hotel operations, subject to the divestment of three hotels. It is expected that the acquisition will close before the end of the year.

 

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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