HVS EMEA Hospitality Newsletter – Week Ending 14 June 2013

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

Hand Picked Hotels Heads To Guernsey

Hand Picked Hotels has acquired the St Pierre Park Hotel & Golf Resort in Guernsey, Channel Islands, from SandpiperCl for an undisclosed sum. The 131-room resort will join the group’s collection as soon as the sale is complete, and it will be managed and operated by Hand Picked Hotels. It is the group’s second resort hotel and its second property in the Channel Islands, alongside the L’Horizon Hotel & Spa in Jersey. Additionally, Bailbrook House Hotel in Bath, southwest England, which Hand Picked Hotels bought last year, is due to officially open this September after undergoing a £10 million upgrade and refurbishment, bringing Hand Picked Hotels’ collection of country house heritage properties up to 19.

A Campanile And Two Golden Tulips For Poland

Louvre Hotels Group is opening three new-build hotels in Poland over the next couple of months. The 117-room Campanile Hotel Bydgoszcz will become the tenth Campanile property in Poland when it opens its doors in Bydgoszcz, Poland’s seventh largest city. Next is the four-storey, 195-room Golden Tulip Gdansk Residence, which was developed by Polish real estate company Qualia Development close to the seafront in the port of Gdansk, on Poland’s north coast. Lastly, the three-storey 86-room Golden Tulip Krakow City Center is shortly due to open in the south of the country in Krakow’s Old Town. At the end of July 2013, Louvre will manage 16 hotels across Poland (1,900 rooms).

Fangs For The New Hotel…

…Said Romania to Hilton Worldwide this week as the group’s Hampton by Hilton brand made its debut in the country in the city of Cluj-Napoca, considered to be the unofficial capital of the historic province of Transylvania. The 109-room, new-build Hampton by Hilton Cluj-Napoca brings Hilton’s portfolio across Romania up to five properties and three brands. “This latest opening introduces our value led brand to the region, providing an attractive base for those venturing into Transylvania, well known for its medieval castles, mythical legends and incredible scenery,” said Simon Vincent, Hilton’s president for the EMEA region.

New Four Seasons Roars In St Petersburg

Four Seasons Hotels and Resorts will be making its debut in Russia early next month, with the opening of the Four Seasons Hotel Lion Palace St Petersburg. After a long restoration and refurbishment, a former 19th-century Russian royal palace has been transformed into the 177-room hotel. The palace was built in 1820 for Princess Cleopatra Lobanova-Rostovskaya. Also in Russia this week, Carlson Rezidor Hotel Group signed its third property for the country’s Ural region: the Park Inn by Radisson Hotel Nizhny Tagil, which is to be developed on the waterfront in the industrial city of Nizhny Tagil. The 135-room hotel will be the first internationally branded hotel in the city.

Hilton To Double Its Hamptons In The UK

Hilton is expanding its Hampton by Hilton presence in the UK. It was reported this week that the group plans to double the brand’s offering in the country with a portfolio of 23 hotels by 2015. The Hampton Inn London Gatwick Airport, North Terminal and the Hampton by Hilton Birmingham City North will mark the beginning of this venture. A total of US$34.5 million was apparently invested in the redevelopment of these properties. The 192-room Hampton at Gatwick airport is being developed by Shiva Hotels in the former headquarters of BAA in the Longbridge House building, adjacent to the North Terminal, and is due to open this spring. The 109-room Birmingham hotel will be Hilton’s second hotel in the city; due to open soon, it is being developed under a management agreement with Birmingham Regeneration.

Purobeach arrives in Tuscany

Marina di Scarlino, owned by Leonardo Ferragamo, is to be the home of Italy’s first Purobeach club. The marina, on the Mediterranean in Tuscany, has formed a joint venture with Spanish company Puro Group that will see the Purobeach Toscana arrive in time for the summer season. Along with leisure and dining facilities, the club will offer 32 luxury suites.

Hotel For York

After purchasing the former offices of the City of York Council, Ambiance Hotels plans to convert the Grade II-listed building in St Leonard’s Place in York, northeast England, into an 88-room luxury hotel. Leeds-based developers and investors Rushbond, the former owner of the property, gained planning permission for conversion to hotel use last August. Work is expected to start on the project in spring 2014, in partnership with London-based financiers Harcourt Capital and Manchester-based hotel and leisure developer Hotel Land & Development. Ambiance is reportedly in talks with a number of operators with the aim of acquiring a flagship brand to run the property, which dates from 1831.

Goodbye Guoman, Hello Glh

Guoman Hotels, a subsidiary of Singapore-based GuocoLeisure Ltd, has been rebranded as glh. Guoman was created nine years ago, as a luxury complement to GuocoLeisure’s four-star Thistle chain. With 36 hotels in the UK and two hotels in Southeast Asia (more than over 4,000 rooms in London alone), glh now intends to launch three new brands over the coming year, operating in the five-star, four-star and budget markets. Glh also plans to expand with new openings in 100 key cities worldwide over the next decade. The company’s expansion is expected to be carried out mainly by management agreements, and hotel owners are to be offered deals shorter than the industry norm of 20-25 years. “Currently the risk is balanced in favour of the brand companies,” said glh’s chief executive, Mike DeNoma. “We will offer something which will be much more attractive for the owners,” he added.

Hilton To Make Its First Appearance In Macedonia

Hilton Worldwide has signed a franchise agreement with Ajdovan Ademoski for its first hotel in Macedonia. The DoubleTree by Hilton Skopje is scheduled to open at the beginning of 2016. The new-build, 172-room hotel will be developed on the banks of the River Vardar in Macedonia’s largest city and capital, Skopje. “…I am delighted that we will be providing brand new accommodation in Macedonia, a country that is raising its profile as a visitor destination and has seen rapidly increasing numbers of international arrivals,” said Patrick Fitzgibbon, Hilton’s senior vice president for Europe and Africa.

Have You Got Your Ticket For The Serviced Apartment Summit?

In just over three weeks the Serviced Apartment Summit 2013 will take place on 8-9 July 2013 at the Andaz Liverpool Street hotel in London. HVS is a Platinum Sponsor of the event, Europe’s only conference for the serviced apartment and extended stay sectors. Additionally, HVS subscribers can receive a 10% discount on delegate tickets by entering the promotional code HVS1 when prompted on the ticket booking page. To book your place visit www.servicedapartmentsummit.com/delegates/buy-tickets. HVS London’s chairman, Russell Kett, will be moderating a panel on day two of the event called Where now for the leaders? Interview with leading hotel and serviced apartment CEOs. Russell’s panellists are Sean Worker, chief executive officer of BridgeStreet Worldwide; Surinder Arora, founder of Arora Hotels; Guus Bakker, chief operating officer for Europe and the Middle East for Frasers Hospitality; and Sym K Lee, senior vice president, asset management & business development, at The Ascott Limited.

Oberoi Opens In Dubai

The Delhi-based Oberoi Group has opened its first property in the United Arab Emirates. The Oberoi Dubai, overlooking the Burj Khalifa in Dubai, has 252 rooms and suites. This is the group’s second hotel in the Middle East, alongside the 330-room Oberoi Madina, in Saudi Arabia.

First Time In Kuwait; Fifth Visit To Russia

Best Western International has made its debut in Kuwait with the 96-room Best Western Mahboula, which opened this week in the town of Mahboula in the south of the country. The 18-storey hotel brings Best Western’s portfolio in the Middle East to nine hotels across seven countries. Additionally, Best Western opened its fifth hotel in Russia this week. The Best Western Art Hotel Nikolaevsky Posad can be found in the town of Suzdal, 200 km northeast of Moscow. The hotel’s 133 guest rooms are spread across eight two-storey buildings.

New Resort For Iraq

Dubai-based Emaar Properties is reportedly close to signing a contract with Kurdish company Faruk Group Holding to develop a resort in Iraq’s semi-autonomous Kurdistan Region. The US$2 billion resort will be constructed at the manmade Lake Dukan, 65 km southeast of the city of Sulaymaniyah, and is expected to include hotel, restaurants, residential areas, cinemas and casinos.

IHG Hits A High Note In Nigeria

InterContinental Hotels Group is due to open its first hotel in Nigeria in mid July. At 100 m high, the 23-storey InterContinental Lagos will be the tallest hotel in West Africa. The 358-room hotel is on Victoria Island, the main financial and business centre of the port of Lagos, on the Atlantic Ocean.

Absolute Share Price Performance Over the Past Week – 6-13 June 2013

Millennium & Copthorne – Cut to "neutral" from "buy" by Goldman Sachs.

PPHE Group – Increased on low volume.

NH Hoteles – Increased 0.8%.

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

Russell Kett, Chairman – HVS London (@russellkett)rkett@hvs.com
Charles Human, CEO – HVS London/HVS Hodges Ward Elliottchuman@hvshwe.com
Chris Martin, Director – HVS Hodges Ward Elliottcmartin@hvshwe.com
Tim Smith, Director – HVS Londontsmith@hvs.com
Arlett Oehmichen, Director – HVS Londonaoehmichen@hvs.com
Sophie Perret, Director – HVS Londonsperret@hvs.com
Demetris Spanos, Managing Director – HVS Athensdspanos@hvs.com
Hala Matar Choufany, Managing Director – HVS Dubaihchoufany@hvs.com
Louise Fury, Senior Editor and EMEA Hospitality Newsletter Author – HVS Londonlfury@hvs.com