HVS EMEA Hospitality Enews - Week Ending 10 July 2009

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

Time For Six Campaniles

Paninvest now goes by the name of Time Hôtels, but that change of name – a nod to the hotel group’s Timhotel brand – has not dulled the group’s appetite for acquisition. The six Campanile hotels bought from BNP Paribas Real Estate Investment Management for an undisclosed sum take Time’s portfolio in its native France to 43 hotels. The six new arrivals add a total of 268 rooms to the 2,359 Time has clocked up since 2006. Unlike Paninvest, none of the hotels will be changing its name: each will retain the Campanile brand.

Metromark Seeks To Buy Lundivar Hotels

Metromark Hotels Holding, the Swedish hotel operator, has agreed to buy its compatriot Lundivar Hotels. A final decision on the deal, which is priced at SKr18 million (roughly €1.7 million) and which is payable in new Metromark shares, will be taken at Metromark’s EGM on 7 August. Lundivar specialises in extended stay hotels, and is working on a hotel in the Swedish city of Malmö and on one in Milan. Besides expanding further in Sweden and Italy over the next three years, Lundivar has its sights set on Germany, Switzerland and Spain.

The Ties That Bind: Starwood Capital And Golden Tulip Hospitality

Having agreed to harvest Golden Tulips, Starwood Capital Group (SCG) is pressing them tight in a binding agreement. The signing of this agreement is the latest step in the acquisition process announced last month and brings SCG ever closer to its desire of sealing the acquisition of Golden Tulip Hospitality (GTH) by 27 July. Once a deal is done, Hans Kennedie will step down as GTH’s chief executive and take up post as an independent senior advisor to SCG in the area of international franchise development.

InterContinental Tuned To BCC1

The second of the 20 or so hotels scheduled to open at the Al Madina A’Zarqa development has InterContinental Hotels Group’s name on it. The company has agreed with Blue City Company 1 (BCC1), which is developing the first phase of Al Madina A’Zarqa, in Al Sawadi, Oman, that it (IHG) will operate the 200-room InterContinental Al Madina A’Zarqa. Like IHG, Maritim Hotels has a new coastal five-star hotel in the Middle East to admire. Maritim’s is on the Mediterranean coast in the Egyptian city of Alexandria; the hotel (Maritim Hotels’ fifth in Egypt) has 158 rooms and is called Maritim Jolie Ville Hotel Alexandria.

Rotana Soft Opens The Afamia Rotana Resort

Rotana has soft opened the Afamia Rotana Resort, which is Rotana’s first five-star resort in Syria. The property, which stands on a peninsula near the resort of Latakia, has 246 rooms and 14 beach cabins. Rotana’s other current property in Syria is the 110-room Queen Center Arjaan, which stands in the capital Damascus.

Art'otel To Live In Old Amsterdam

Not in a windmill, to the great regret of many a lyricist, but in a 1920s building opposite the central railway station whose most recent occupant was Kadaster, the Dutch land registry office. Park Plaza Hotels signed an agreement on the Art’otel Amsterdam with the City of Amsterdam. The ninth art’otel in Europe will have around 100 rooms and is set to open in early 2011.

Double Blu And Double Park Inn Too

The Radisson Blu Resort & Spa, Dubrovnik Sun Gardens is Rezidor Hotel Group’s first resort in Croatia. The hotel’s 201 rooms and 207 apartments are open just to the north of the city of Dubrovnik. The Radisson Blu Badischer Hof Hotel, Baden-Baden has the honour of being Rezidor’s fiftieth hotel in Germany. The 139-room hotel will take its new brand during the month of July. In the month of November the Mövenpick Ulysse Palace & Thalasso Djerba will become the Park Inn Ulysse Resort & Thalasso, Djerba. The 259-room hotel, which is owned by UTIC Tourisme, will be the first Park Inn hotel in Tunisia. For the second Park Inn in Poland one must wait until the start of 2012. Only then will the 206-room Park Inn Wroclaw emerge in the southwestern city of Wrocław. The hotel is owned by Nelle General Construction Company.

Copenhagen Invaded By Giant CabInn

If you spot something in Copenhagen that’s red and blue and really quite enormous, chances are it’ll be the Hotel CabInn Metro. The largest hotel in all of Denmark has opened an initial 100 rooms and will open another 350 in the next two weeks. However, the hotel will not show the true majesty of its plumpness until October, when all 709 rooms will be ready. The CabInn Metro, one of eight hotels in Denmark with the CabInn brand, took two years to construct.

A Welcome Break For Three Hotels

Welcome Break, an operator of motorway services in the UK, has taken an operating lease on three former Purple Hotels from its industry peer Swayfields. The hotels in Peterborough, Cambridge and the Hertfordshire town of Stevenage closed in March 2009 on The Real Hotel Company’s entering administration. The three hotels, which have a combined total of 215 rooms, have, like the 23 hotels that Welcome Break already operates, taken the Days Inn brand.

Hyatt Deletes The Global

Hyatt Hotels Corporation is the new name for Global Hyatt Corporation. The reasons for the bumping of the word “global” may be found in the statement made by the company’s president and chief executive Mark Hoplamazian: “The name Hyatt Hotels Corporation leads with our brand…” and “Operating in various countries around the world…has given Hyatt…an understanding that making a difference in people’s lives through authentic hospitality is an inherently local – rather than global – mission.” The change of name has no effect on the company’s operations at its 380-plus hotels around the globe; ahem, world.

Kiessling's Corner

Travelodge is planning to spend €61 million to open three new establishments in Barcelona (240 rooms), Seville (199 rooms) and Valencia (110 rooms) in 2011. Accor recently opened two hotels in Madrid that were formerly under NH Hoteles’ management: the 92-room Ibis Madrid Alacala La Garena and the 98-room Ibis Madrid Arganda. On 31 July, Prestige Hotels will cease managing the Paseo del Gracia, in Barcelona. This is the second establishment to leave Prestige Hotels in 2009: at the start of the year, the hotel chain sold El Prestige Congress to Alexandre Hotels. At the start of August 2009 Hesperia will open the 65-room Hotel Balneario Hesperia Areatza in the Basque country. The hotel will be managed by the Basque company Sasoibide. Across in Portugal, the Hilton Vilamoura As Cascatas Golf Resort & Spa, on the Algarve, is to raise its room count by 150 to a total of 350. By Gabriele Kiessling, Analyst, HVS Madrid

The International Hotel Conference 2009

The International Hotel Conference is well worth a punt; or, as the event is being held in Venice, well worth a gondola. Not that prospective attendees will need to hail a gondolier: the conference organisers have arranged a complimentary shuttle boat service between the airport and host hotel the Hilton Molino Stucky. The conference will be addressed by some 100 expert speakers; those from the HVS London office “singing” for their Cornetto (just the one, you know the rules) are Russell Kett (managing director), Tim Smith (director) and Gabi Baumann (associate director). Further details are available from the website www.internationalhotelconference.com. click here

Absolute Share Price Performance Over the Past Week 2-9 July 2009

Rezidor Hotel Group - The share price recorded four successive days of rise and hit a one-month high earlier in the week.

InterContinental Hotels Group - The share price slipped late in the week as an analyst at Evolution said that hopes of a recovery in hotel demand in the USA in the autumn were premature. Evolution set a target price of 475p.

Accor - Société Générale kept a 'Buy' rating but lowered its target price from €47 to €43. Natixis lowered its rating from 'Buy' to 'Add' and lowered its target price from €39 to €34.

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
Tim Smith, Director tsmith@hvs.com
Demetris Spanos, Managing Director – HVS Athens dspanos@hvs.com
Hala Matar Choufany, Managing 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