HVS EMEA Hospitality Newsletter – Week Ending 20 June 2014

The latest hospitality news for the EMEA region.

Sale Agreed For The Paris Marriott Hotel Champs-Elysees

Hong Kong-based investment company Kai Yuan Holdings has agreed to purchase the 192-room Paris Marriott Hotel Champs-Elysees for approximately €344 million (€1.8 million per room) from Tamweelview European Holdings SA. The sale of the seven-storey, five-star hotel is expected to close in September. The deal includes purchase of the real estate for €226 million and the acquisition of operating and holding companies for €118.5 million.

Heathrow’s Park Inn Sold

AXA REIM has purchased the Park Inn by Radisson Hotel & Conference Centre London Heathrow from administrators for £72 million (£80.4 million per room). The 895-room property is the closest hotel to terminals 1, 2 and 3 at London’s Heathrow Airport. Rezidor Hotel Group, which operates the hotel under a lease agreement, is currently carrying out a £12 million refurbishment of the hotel. The deal represents an initial yield of 5.9%.

Legal & General Invests In A Travelodge

Legal & General Property (LGP) has acquired the 120-room Travelodge High Wycombe Central along with three retail units in the town of High Wycombe, southeast England, from McLaren Property for approximately £11 million, reflecting a net initial yield of 6.8%. LGP purchased the building (the hotel covers the top five storeys and a ground-floor lobby area) for its Linked Pensions Fund.

A Ritz-Carlton For Astana

The Ritz-Carlton Hotel Company has signed an agreement with Verny Capital for its second hotel in Kazakhstan. The Ritz-Carlton, Astana is due to open in 2017 in the Kazakh capital. The 157-room hotel will cover 20 floors of the city’s 27-storey, mixed-use Talan Towers development. The group’s first hotel in the country, the 145-room Ritz-Carlton, Almaty, opened in 2013.

A Second Scandic For Berlin

Scandic has announced that it is to increase its portfolio in Germany to three hotels. The group, which already operates the Scandic Potsdamer Platz, in Berlin, and the Scandic Hamburg Emporio, in Hamburg, has signed a long-lease agreement with Norwegian businessman Lars Wenaas for a new hotel in Berlin. From 1 September 2014, the 217-room Alsterhof Hotel, which underwent an €8 million refurbishment in 2012, is to be rebranded as the Scandic Berlin Kurfurstendamm.

Renaissance Reaches Half A Dozen In France And Siberia’s Second Marriott Opens

Marriott International’s Renaissance brand will open its sixth hotel in France early next week: the Renaissance Paris Hippodrome de St Cloud Hotel, five kilometres west of Paris. The 110-room hotel is in the grounds of the Paris Country Club, a private leisure club. Additionally, at the beginning of the week, the group opened the 175-room Novosibirsk Marriott Hotel, its second hotel in Russia’s Siberia region and its 15th in the country overall.

Supersize Hampton By Hilton For Warsaw

Hilton Worldwide’s Hampton by Hilton brand has opened its biggest hotel outside of the USA. The 300-room Hampton by Hilton Warsaw City Centre is the group’s second Hampton-branded property in the Polish capital and its fourth in the country overall. The 17-floor hotel is close to Warsaw’s historic Old Town and less than ten kilometres from Warsaw Chopin Airport.

Starwood’s Slovenian Debut

After recently emerging from a renovation, the Mons Hotel in the city of Ljubljana has now reopened as the 114-room Four Points by Sheraton Ljubljana Mons, Starwood Hotels & Resorts’ first hotel in Slovenia. The group signed an agreement for the hotel with Kranjska Investicijska Druzba in January this year.

Best Western Reaches Seven In Russia

Best Western International has increased its presence in Russia with two new hotels, bringing its portfolio in the country up to seven properties. The recent additions, in the west of the country, are the 92-room Best Western Russian Manchester Hotel in Ivanovo and the 96-room Best Western Kaluga in the city of Kaluga.

Luxurious London And Cool Casablanca

HVS’s London office has recently published a report on the luxury hotel market in London. (Click here to download a copy.) The report’s authors examine luxury hotel demand and supply characteristics and discuss whether, with the various proposed additions to London’s luxury segment, the market will be able to absorb and continue to grow at the same pace? Additionally, a recent overview of the performance of the hotel market in Casablanca, Morocco is also available to download (click here). This report explores the underlying dynamics that impact hotel development and growth in the city. Specific focus is geared towards comparing the midscale/budget market to the upscale/luxury hotel sector.

Wyndham Expanding In Bahrain

Wyndham Hotel Group has signed a new Ramada property for Bahrain. The Ramada Manama City Centre, Bahrain is expected to open during the third quarter of 2015, adjacent to the City Centre Bahrain Mall. The hotel will have 140 rooms and will join three other existing Wyndham hotels in Bahrain (two Ramada hotels and a Days Inn property) and a Wyndham Grand, which is due to open next year.

Meliá Resorts For Taba And Dahab

Meliá Hotels International has announced the opening of two new resorts in Egypt in July, expanding its presence on the Sinai Peninsula. The 440-room Sol Taba and the 217-room Sol Dahab will join the group’s four properties in Sharm El Sheikh currently in operation.

Shangri-La Makes It To Mauritius

Shangri-La Hotels and Resorts is to take on the management of a five-star resort on the island of Mauritius this August. Le Touessrok, Mauritius, on the island’s east coast, will then undergo a renovation and will be relaunched as the Shangri-La Le Touessrok Resort & Spa, Mauritius in September 2015. The resort has 200 guest rooms and three villas.

A Strong First Quarter For Whitbread

Whitbread has reported strong first-quarter growth for its Premier Inn brand. Total sales increased by 14.2%, which the group has attributed to ‘continuing growth in London and clearer signs of economic recovery in the UK regions’. Premier Inn RevPAR rose by 8.8% (3.6% for London and 9.9% for the UK regions) and occupancy for the portfolio increased by 4.2 percentage points to 80.7%. There are currently 43 new Premier Inns under development in the UK and 4,500 rooms are expected to come on line this year.

Absolute Share Price Performance Over the Past Week – 12-19 June 2014

Starwood Hotels & Resorts – JPM upped the share price target by US$2 to US$87 and reaffirmed its "overweight" rating.

Hyatt Hotels – Analysts at Deutsche Bank lifted their share price target from US$53 to US$59.

NH Hoteles – Fell for a fourth consecutive day, a four-day fall of 3.8%.

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
Peter Malone, CEO – HVS Executive Search, EMEA & Asiapmalone@hvs.com
Demetris Spanos, Managing Director – HVS Athensdspanos@hvs.com
Hala Matar Choufany, Managing Director – HVS Dubaihchoufany@hvs.com
Ezio Poinelli, Director – HVS Milanepoinelli@hvs.com
Louise Fury, Senior Editor and EMEA Hospitality Newsletter Author – HVS Londonlfury@hvs.com