HVS EMEA Hospitality Enews - Week Ending 28 November 2008

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

InterContinental Hotels Group To Open A Resort In Fujairah

InterContinental Hotels Group (IHG) took its first trip to the emirate of Fujairah, in the UAE, this week to sign an agreement with Abu Dhabi real estate developers Seba Properties for the InterContinental Fujairah Resort. The 291-room beachfront resort is expected to open by the end of 2010 on the emirate's east coast, and as well as being IHG’s first property in Fujairah it will be the first InterContinental beach resort in the UAE. IHG currently operates 23 properties across the UAE under its various brands.

The Gateway Hotel Will Soon Be Shining With Five Stars

The Gateway Hotel in the city of Ota, in the Ogun State, southwest Nigeria, is to be turned into a five-star property by US conglomerate American Best Hotel Resort and Conference Centre (ABHRCC) with an investment of approximately US$12 million. The ABHRCC gained the hotel by a concession from Gateway Holdings Ltd, which manages the investments of the Ogun State.

Baglioni Hotels Group To Expand Outside Of Europe

Some say that the best way to beat the credit crunch is to spend, spend and spend…Baglioni Hotels Group, its purse bursting with an investment of €30 million from Milan-based private equity firm Sator, is heeding this advice with a plan to take its brand of boutique hotels outside of Europe. The company currently has properties in the pipeline for locations such as Dubai and Marrakesh. Baglioni operates 13 hotels across Italy and France and one in London; however, it plans to nearly double this portfolio by 2012.

Interval International Counts Monte Cairo Among Its Affiliations

US Timeshare Company Interval International has affiliated its second property in Cairo: the 80-unit Monte Cairo resort will now be added to its global network of timeshare services alongside the Dream Plaza Vacation Club in Giza. Interval also currently has 11 affiliated resorts on Egypt’s Red Sea coast.

Raffles Hotels And Resorts To Gain A New President In The New Year

Diana Ee-Tan has been at the helm of Raffles Hotels and Resorts as President of the company since the integration of Raffles and Fairmont in 2006, and during this time Mrs Ee-Tan has seen another 15 hotels and resorts added to the company’s pipeline. However, Diana Ee-Tan has announced that she will be stepping down in January 2009 commenting that “This is an opportune time for a change and for someone else to take Raffles to the next level of expansion”. It has not yet been confirmed who is step up to wheel of the Raffles ship after Mrs Ee-Tan’s departure, but several candidates have been indentified.

Kiessling’s Corner

The latest news from Spain by Gabriele Kiessling, HVS Analyst, Madrid. Juan Antonio Hoteles has increased Valladolid’s hotel supply with the opening of the three-star, 56-room Hotel Topaco for an investment of approximately €300,000.The five-star Maricel Hotel, on the island of Majorca, recently completed an extension of an additional 22 rooms and a spa. Rafaelhoteles has increased its portfolio by opening the four-star, 132-room Rafael Hotel Forum Alcala in the city of Alcala de Henares northeast of Madrid. The owners of La Bodega Señora de Nevada are to construct a four-star, 32-room hotel in a former Finca in Villamena, in Granada; This hotel is expected to open in December 2009. IBB Hotels is to operate a new hotel in Menorca: the five-star Cugo Gran, owned by Gupo Von der Hayden, is expected to open in June 2009. IBB Hotels plans to expand its brand by another five hotels in Spain by the end of 2009.

Absolute Share Price Performance Over the Past Week 20-27 Novmeber 2008

Marriott International - Marriott International was upgraded to 'overweight' by Thomas Weisel.

Sol Meliá - Sol Meliá reported to be in uptrend while in top quartile by p/e.

NH Hoteles - NH Hoteles' target price was lowered from €3.5 to €2.5 by JP Morgan.

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
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