HVS EMEA Hospitality Enews - Week Ending 20 February 2009

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

W’s First Act In Paris

If you are planning at trip to Paris, France, in 2011, head for the Opéra area and you might be lucky enough to catch the opening night of Starwood Hotels & Resorts’ W brand as it makes its grand debut in France with an aria dedicated to the W Paris-Opéra and its 90 guest rooms. Starwood has signed a management agreement with the hotel's owner Barcelona-based private equity firm Meridia Capital. When it opens, this hotel will be W number eight for Europe.

The Importance Of Being Rezidor

What is the importance of the numbers three and 58 to Rezidor Hotel Group? Not sure? Well, I shall tell you. After announcing this week that it is to open three new hotels in three capital cities, adding three new countries to its portfolio, Rezidor will soon have properties in 58 countries across the EMEA region. The 142-room Radisson Blu Hotel Lusaka is to open in the latter part of this year in Lusaka, Zambia; the 257-room Radisson Blu Hotel Luanda is to open at the beginning of 2012, on Africa’s southwest Atlantic coast, in Luanda, Angola; and the 210-room Radisson Blu Hotel Skopje is to open at the beginning of 2011 in Skopje, Macedonia.

Rezidor’s Missoni Mission In Oman

Rezidor Hotel Group has also announced another new entrance this week: the Hotel Missoni Jebel Sifah is to take a bow as it debuts as the first Missoni hotel in the Sultanate of Oman, in the Middle East. The curtain will rise at the beginning of 2012 on the mixed-use Jebel Sifah resort, near the capital Muscat, to reveal the hotel's 250 rooms and 50 apartments and villas. This hotel will bring the number of Missoni properties, Rezidor’s newest brand, up to three; the 130-room Hotel Missoni Edinburgh is to open in May this year, followed closely by the 200-room Hotel Missoni Kuwait in summer.

A New Hotel For Maputo

After a US$30 million investment, Portuguese company the Visbeira Group has opened its second hotel in Mozambique’s capital Maputo, in the south of the country. The 190-room Girassol Indy Village opened during the past week to join its sister property in the city the 27-room Girassol Bahia Hotel. The other two hotels in the Girassol portfolio are also in Mozambique: the 72-room Girassol Lichinga Hotel in the city of Lichinga, in the northwest, and the 28-room Girassol Nampula in the northern city of Nampula.

A Hotel For The Trafford Centre

Shopping is a serious business and sometimes one day just isn’t enough! But soon those spenders travelling to the Trafford Centre shopping complex in Manchester, northwest England, will be able to stay right next to that shoppers’ paradise and shop from dawn ‘till dusk for as many days as they like as Peel Holdings has been granted planning permission by Trafford Metropolitan Borough Council for the development of a four-star, 210-room hotel adjacent to the centre. The 15-storey hotel is expected to cost £30 million to develop.

The Berlin Dozen

A dozen what? I hear you ask…conferences of course! For 2009 is the year of the 12th International Hotel Investment Forum in Berlin, and those of you who have been lucky enough to attend from the beginning will be able to boast to first-time attendees "I’ve been here a dozen times now, you know". Last year, the forum was so successful that its organisers have decided to add another day to this year’s event. The conference will be held over three days from 9 to 11 March in the InterContinental Berlin. HVS London’s Russell Kett ("Hotel Companies Going Global! Where...Why…How?", 9.20am, Wednesday 11) and Tim Smith ("The IHIF Game Show Challenge", 10.20am, Wednesday 11) and HVS Hodges Ward Elliott’s Charles Human ("Where Are The Deals And What is The State Of The Transactional Market In Europe?", 11.30am, Wednesday 11) are taking part in this year's event, and also attending is Philip Bacon, HVS Madrid. With less than a month to go, time is ticking so click here for more information or to book your ticket.

InterContinental Hotels Group Reports Its Preliminary Full-Year Results For 2008

InterContinental Hotels Group (IHG) reported continuing revenue of US$1.8 billion for 2008. RevPAR for its properties in the EMEA region increased by 3.6% for the full-year 2008, and operating profit from continuing operations increased by 28% for the region, from US$134 million to US$171 million. However, IHG still didn’t manage to escape the gnashing teeth of the credit crunch which caught up with it during the fourth quarter of 2008, when RevPAR decreased by 6.5%. IHG’s chief executive Andrew Cosslett commented on the year ahead for the company "It has been clear for some time that 2009 will be a challenging year and we have taken action to prepare the business."

Kiessling’s Corner

The latest news from Spain by Gabriele Kiessling, Analyst, HVS Madrid. Alexandre Hotels has increased its portfolio with the acquisition of the Prestige Congress Hotel in Barcelona, previously part of hotel chain Prestige. Alexandre Hotels has three other properties: the Hotel FrontAir Congress, also in Barcelona, and the Hotel Gala and the Hotel La Siesta in Tenerife. The city council of Madrid has recently approved the initial phase of the renovation of the Hotel Ritz Madrid, which is be carried out by architect Rafael de la Hoz. The hotel’s room count will be reduced from 172 rooms to 168 in order to create more space in each room. The renovation also includes the restoration of the glass ceiling in the hotel’s lobby and an additional Jacuzzi. However, no date has been set yet for the project.

Absolute Share Price Performance Over the Past Week 12-19 February 2009

Rezidor Hotel Group - Shares rose owing to high volatility and an expanding price range.

InterContinental Hotels Group - Shares fell as the company reported a drop in full-year profit for 2008.

Millennium & Copthorne - Shares dropped in price as the group halved its dividend.

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