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HVS EMEA Hospitality Enews - Week Ending 17 October 2008

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

Tulip Residences To Flower In Morocco

After picking up a loud hailer and announcing its new extended stay brand Tulip Residences to the world in June 2008, Golden Tulip Hospitality Group has just signed a management agreement with Spanish real estate developers Property Logic for the 234-unit Tulip Residences Saïdia. The residences are to be constructed in Property Logic’s Le Jardin de Fleur development, on the Mediterranean coast, in northeast Morocco. This will be Golden Tulip’s second foray into the extended stay market: the company’s first property of its new chain, the 80-unit Tulip Residences Copenhagen Centre, reached full bloom in May of this year in Copenhagen, Denmark.

Ramada Goes Supersize In Saudi Arabia

This week, with the opening of just one new hotel, Wyndham Hotel Group’s Ramada Worldwide chain has opened its 11th hotel in Saudi Arabia, its second property in the city of Mecca and its biggest hotel yet! The 29-storey Ramada Makkah opened with 998 rooms in the Haram district of the Islamic holy city, and it joins the, somewhat smaller, 142-room Ramada Makkah Shubaika. The hotel is owned by Riyada International Hotels and Resorts Company, which owns the rights to the Ramada brand in Saudi Arabia.

A Jumeirah For Scotland

Dubai hotel company Jumeirah can usually be found in the sunny climes of the Middle East, but this week the company has travelled to the cooler shores of Scotland to get together with privately owned UK development company Progress Property Developments and announce a new hotel for the city of Glasgow. The de luxe, five-star hotel is expected to open in 2012 with 160 rooms and suites and 85 serviced apartments. This will be Jumeirah's third hotel in the UK alongside the 220-room Jumeirah Carlton Towers and the 87-room Jumeirah Lowndes Hotel, both of which are in London. Jumeirah currently has another four hotels in the pipeline for Europe in destinations such as London, UK, and Majorca, Spain.

A Centro by Rotana For Dubai World Central

Dubai-based Daman Investments’ new investment holding company Buildan Development has announced its first project: through a strategic alliance, Rotana and Buildan Development are to construct a 500-room Centro by Rotana hotel for a cost of AED500 million (US$136 million) in the residential section of the emirate’s purpose-built new infrastructure development Dubai World Central. Work on the hotel, which will be the first under Rotana's budget business brand for Dubai World Central, is expected to start in the first quarter of 2009 and be complete by January 2011. Rotana operates properties in 12 locations across the Middle East and it currently has 15 Centro by Rotana hotels in the construction stage in the region.

A New Hotel Makes A Grand Entrance In Dubai

This week Dubai-based company Grandeur Hospitality Hotel Management has announced the opening of its first hotel: the four-star, 125-room Grandeur Hotel in Al Barsha, in the emirate of Dubai. But this hotel won’t be alone for long as the company intends to develop more hotels under its Grandeur brand.

The Ascott Group Goes Shopping In Paris

Singapore-based serviced residence owner and operator the Ascott Group (Ascott) has leased the Citadines Paris Louvre from Predica, a subsidiary of Credit Agricole, since it acquired the Citadines chain in 1992. This week, however, Ascott went one step further and the group now owns the historic building which houses its 51-unit aparthotel. Ascott bought the Citadines Paris Louvre for a cash consideration of €21.5 million. The group operates a total of 16 Citadines properties in Paris and 30 properties in France altogether in 13 different locations. Projects under development include the Citadines Edinburgh Quartermile, in Edinburgh, Scotland, which is due to open in 2009.

Three New Hotels For Hilton

Hilton Hotels Corporation scored a hat-trick this week that would make any premiership footballer jealous. Goal number one happened when Hilton stopped off in Italy to sign a long-term management agreement with Tecnoecology Srl for the 171-room Hilton Garden Inn Treviso, in the city of Treviso, northern Italy, which is scheduled to open in 2010. This hotel will be Hilton's fourth Garden Inn property in Italy. Hilton then hit the back of the net a second time with a franchise agreement with Hotel System Sobieskiego for the 266-room Hilton Garden Inn Warsaw Mokotow in Poland. This hotel, which is expected to open during the fourth quarter of 2009, will be Hilton’s second property in Poland. Hilton's whirlwind European tour then took it to Russia where it scored goal number three through a franchise agreement with BC Development for the 288-room Doubletree by Hilton Perm, which is set to open its doors in Russia's sixth-largest city Perm, in the southeast, in 2010. This hotel will be Doubletree number two for Russia after the 188-room Doubletree by Hilton Novosibirsk opens at the end of this year.

A Second Park Inn For Hungary

A consortium formed by Hungarian property developer Proform and Aquaprofit is reported to be developing a hotel in the southwestern Hungarian city of Zalakaros under Rezidor Hotel Group's Park Inn brand. The four-star, 220-room hotel is still in the planning stage but construction is expected to start in summer 2009 and the hotel is due to open in 2011. This hotel will be Rezidor’s second Park Inn property in Hungary alongside the 223-room Park Inn Sárvár in the west of the country.

Get Down In The Bunker In Switzerland’s New Budget Hotel

Giving new meaning to John Lennon’s and Yoko Ono’s bed-in for peace nearly 40 years ago, a nuclear bunker in the Alpine town of Sevelen in northeast Switzerland is being turned into a budget hotel. Once the operating budget has been approved by the town, the 54-bed hotel is expected to open in January 2009. A live web cam will project images from the outside world onto a large screen in the public area of the windowless bunker which is below ground level.

Whitbread Reports Its Half-Year Results

Whitbread has reported a group revenue of £682.2 million for the first half of 2008, an increase of 12.6% on the same period in 2007. The group’s revenue from its Premier Inn hotel chain was reported to be £311.0 million for the first half of this year, an increase of 17.8% on the first six months of 2007. Whitbread also stated that in the first half of 2008 “1,380 new rooms were opened compared to 830 rooms in the first half of last year”.

Kiessling’s Corner

High Tech Hotels is investing €12 million in the restoration of three buildings in Barcelona in order to convert them into hotels. All of the three four-star hotels will be managed under the Petite Place brand and are estimated to open in 2009. Mercer Hoteles is to increase its portfolio with five new hotels: three in Catalonia and two in Andalusia. Axor is investing €72 million in two new hotels: the newly constructed three-star Axor Feria and the four-star Axor Suites Barajas are expected to open by September 2009. The 19-room Best Western Hotel Los Cerezos has recently been constructed in Monachil in the province of Granada. Best Western currently has two other hotels in the province: the Best Western Hotel Dauro II, in Granada, and the Best Western Hotel Salobreña, on the Grenadine Coast. By Gabriele Kiessling, Analyst, HVS Madrid.

New Opportunities For Mexico’s Tourism Industry

There are only three weeks until a conference in Spain which is to focus on exploring new opportunities in the Mexican tourism industry. The event is now to take place on 6 November at the CEOE (the Confederation of Spanish Employers) headquarters at Calle Diego de León 50, in Madrid. Some of the industry professionals attending the conference include Francisco Zinser, the chief operations officer of NH Hoteles, and Philip Bacon, managing director of HVS’s Madrid office. For more information contact Jan Alessie, Director of Nexus. Telephone: +34 650 161050 alessie@nexus-fp.com. If you have already made your mind up to attend email your full contact details to foro@nexus-fp.com.

Absolute Share Price Performance Over the Past Week 9-16 October 2008



Marriott International and Starwood Hotels & Resorts - An analyst from Thomas Weisel Partners upgraded both companies to 'overweight' from 'marketweight'.

Accor - The company has reportedly lowered its full-year profit target, owing to the slowdown in the global econdomy.


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 Directorrkett@hvs.com
Charles Human, Managing Director – HVS HWEchuman@hvshwe.com
Hadrien Pujol, Directorhpujol@hvs.com
Tim Smith, Directortsmith@hvs.com
Demetris Spanos, Managing Director – HVS Athensdspanos@hvs.com
Hala Matar Choufany, Managing Director – HVS Dubaihchoufany@hvs.com
Christopher Mumford, Managing Director – Executive Searchcmumford@hvs.com
Philip Bacon, Managing Director – HVS Madrid and Managing Director, EMEA & Asia – HVS Shared Ownership Servicespbacon@hvs.com
Louise Fury, EMEA Hospitality Enews Authorlfury@hvs.com