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HVS EMEA Hospitality Enews - Week Ending 29 August 2008

The latest hospitality news from Europe, the Middle East and Africa

KOP Doesn't Want The Stein Group To Work Alone

The press in Singapore reports that KOP Capital, a Singaporean property company that is part of the Middle Eastern firm Dubai Group, is to pay US$250 million for a stake of 50% in The Stein Group. KOP Capital has plans to spend at least as much again to help The Stein Group expand into the Asia-Pacific region. The reports suggest that 20 hotels could be added over the next three to five years. The Stein Group specialises in small luxury boutique hotels and since its establishment as a hotel company in 2001 it has garnered a portfolio of 17 hotels in Europe.

Marriott à Trois

Marriott International is to open another three Courtyard by Marriott hotels in France to add to the three Courtyard by Marriott hotels (one of them is under development) that are already there. Two of the new hotels will be in the suburbs of Paris: the 150-room Courtyard by Marriott St. Denis Pleyel, which is to open at a mixed-use development in 2009, and the 170-room Courtyard by Marriott Arcueil, which will open in 2010 as part of the mixed-use development Les Portes d’Arcueil. The trio is completed by the 210-room Courtyard by Marriott Marseille Euromed Center, which is to open in 2011 in the Mediterranean port of Marseilles. As its name indicates, this hotel will be part of the mixed-use development Euromed Center.

Hilton Opens Its First Hotel In Moscow

The Hilton Moscow Leningradskaya has opened to become the first hotel with a Hilton brand in the Russian capital Moscow. The Soviet-era Leningradskaya Hotel has been two years in the renovation and is being managed by Interstate Hotels & Resorts. The 273-room hotel is owned by JSC Sadko.

Danubius Lets The Phoenix Take Wing

Danubius Hotel Operation and Services Private Company, a wholly owned subsidiary of Danubius Hotels, has sold the Hotel Phoenix to an unnamed buyer for an undisclosed sum. The 73-room, two-star hotel in the town of Keszthely, on the shores of Lake Balaton in western Hungary, was operated by a third party until the end of 2006, since when the hotel has not been in operation.

Azure Ready For Radisson Renovation

Azure Property is to invest around €45 million in a thorough renovation of the Radisson SAS Hotel, Hamburg. Work on the 556-room hotel, which is the tallest hotel in the German city of Hamburg, is scheduled to start on 1 October and will take until August 2009 to complete. The hotel will have to close for only three months during the procedure (from January to March 2009). Azure Property acquired the hotel from Trigon Invest at the start of 2008.

Spence To Spend Millions On Marcliffe Renovation

Stewart Spence, the owner of The Marcliffe Hotel and Spa, is reportedly planning to invest £50 million in work to upgrade and extend what is the only five-star hotel in Aberdeen, northeast Scotland. The work would see the number of guest rooms increased by 200 from the current 42 and would add a conference centre, dining facilities and a modern spa.

Kiessling's Corner

Sol Meliá has opened the ME Barcelona. The luxury five-star hotel occupies a 29-storey building in the industrial and newly refurbished area of 22@, in the city of Barcelona. The hotel, which has 259 rooms, is the fourth property in the ME brand portfolio of Sol Meliá. Sol Meliá, together with Caja de Ahorros, Invernostra and Caja Duero, paid €103 million for the hotel earlier this year. Another hotel to have opened is the 112-room Aguas de Ibiza, on the island of Ibiza. Situated in the Paseo Maritimo of Santa Eulalia, the five-star hotel cost €40 million. The La Torre family was responsible for the development. By Gabriele Kiessling, Analyst, HVS Madrid

Accor Releases Its Half-Year Results

Accor has published its results for the first half of 2008. Pre-tax operating profit was 16.0% up (like for like) on the previous year’s corresponding figure, at €393 million. Revenue grew by 5.2% (like for like) and finished on approximately €3.8 billion. And what of Accor’s trading since the end of the first half? Well, in the month of July like-for-like RevPAR among Accor’s upscale and midscale hotels in Europe rose by 3.0%, whereas hotels in the economy sector in Europe posted a rise of 1.7%. Accor has set itself a target for full-year pre-tax profit of €910 million to €930 million, a target which, were it to be realised, would be 16.0% higher (like for like) than the figure for 2007.

Kingdom Hotel Investments' Half-Year Results

Kingdom Hotel Investments (KHI) has announced its results for the six months to 30 June 2008. These results show an increase of 50% in net profit before non-recurring items, to US$25.2 million, and an increase of 53% in revenues, to US$115.5 million. Marketwide RevPAR grew by 23%, thanks in part to the performance of KHI’s hotels in the Middle East and North Africa region.

Rafael In The Frame For An Award

Only a hotelier who has had a major impact on both the hospitality industry and humanitarian causes is worthy of the accolade “International Hotelier Global Citizen”. This year’s recipient of the award is Georg Rafael, the managing director of Rafael Group, who is being recognised for his work in creating memorable hotels and the efforts he makes on behalf of charity. He will be presented with his award at the International Hotel Conference, which is to be held at the Rome Cavalieri Hilton from 15 to 17 October.

The Eighth European Hotel Investment and Finance Summit Is Nigh

This September's European Hotel Investment and Finance Summit is the eighth in the annual series brought to you by Euromoney Seminars. Russell Kett will be on the podium at the Hilton London Tower Bridge, giving an opening-day presentation, on 9 September, entitled “The 2008/2009 hotel forecast – what does the future hold for the sector?”. The two-day event brings together a host of leading figures from the hospitality world. To reserve your place, visit www.euromoneyseminars.com click here

Absolute Share Price Performance Over the Past Week 21-28 August 2008



InterContinental Hotels Group - Royal Bank of Scotland kept a 'Buy' rating but cut its target price from 925p to 875p.

Accor - Jefferies International gave a 'Buy' rating and a target price of €74.0.

NH Hoteles - The share price rose at the end of last week as reports indicated that Spain had welcomed around 7 million visitors in the month of July.


For the latest in the hospitality industry, please visit: http://www.hvs.com. You are also welcome to contact the following personnel.

Russell Kett, Managing Director rkett@hvs.com
Charles Human, Managing Director – HVS HWE chuman@hvshwe.com
Hadrien Pujol, Director hpujol@hvs.com
Demetris Spanos, Managing Director – HVS Athens dspanos@hvs.com
Hala Matar Choufany, Director – HVS Dubai hchoufany@hvs.com
Christopher Mumford, Managing Director – Executive Search cmumford@hvs.com
Philip Bacon, Managing Director – HVS Madrid and Managing Director, EMEA & Asia – HVS Shared Ownership Services pbacon@hvs.com
Adrian Jones, EMEA Hospitality Enews Author ajones@hvs.com