HVS EMEA Hospitality Enews - Christmas 2007

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

Season's Greetings From HVS London

HVS’s London office brings you season’s greetings with this the final EMEA newsletter of 2007. A midweek edition. So although it may not be as substantial as usual, it should fill that gap between the last cracker at the office party and the first mince pie on Christmas morn. I should like to thank all of you out there for supporting the newsletter throughout the year and special thanks go to those who have supplied press releases and comments. Please keep them coming in 2008.

Hilton's Gift To Kazakhstan

Hilton Hotels Corporation’s (HHC) present to Kazakhstan is a first Hilton hotel for the republic. HHC has signed a management agreement with Expo-Center Astana on the Hilton Astana. The hotel is to have around 237 rooms and it will open in Astana, the capital of Kazakhstan, in the first quarter of 2010.

See Mövenpick Around The Square

Christmas on The Square. And in this episode of Middle EastEnders, great excitement is caused by the arrival on The Square, a development in the Deira district of Dubai, of Swiss player Mövenpick Hotels & Resorts. Omniyat Properties has invited Mövenpick in to manage 180 hotel apartments and the development’s food and beverage outlets. The Square should be ready in 2009. Sorted.

Banyan Tree Branches Out To Oman

Jabal Resorts has chosen its tree; it’s a banyan tree. Banyan Tree Hotels & Resorts is putting down roots in Oman for the first time. It will be managing one hotel with the Banyan Tree brand and one with the Angsana brand at a resort development in Sifah. The development as a whole covers more than 650 hectares and it will have at least five hotels and more than 450 villas and 500 apartments for sale.

RLJ To Build Four-Star Hotel In Liberia

The RLJ Companies, of the USA, is reported to have reached an agreement with the government of Liberia, in West Africa, to build a four-star hotel on the seafront in the Liberian capital Monrovia. The villa-style hotel would be ready to open in February 2009. Over in East Africa, Fairmont Hotels & Resorts has rebranded the Norfolk Hotel as Fairmont The Norfolk. The 165-room hotel in Nairobi, the capital of Kenya, has just emerged from renovation work costing several million dollars.

Royal Orchid To Flower On A Tanzanian Beach

Royal Orchid Hotels has been looking to break beyond the bounds of its native India for some time now. Reports suggest that Tanzania, in eastern Africa, will be the first country to be garlanded. Royal Orchid is said to have paid US$2 million for Tanzanian firm Multi Hotels, which owns 30 acres of land on the beachfront in the city of Dar es Salaam. Royal Orchid will spend a reported US$25 million on the creation of a resort on that land.

The Real Story Of Christmas

The Christmas story that The Real Hotel Company (RHC) relates might not be the greatest story that the company’s shareholders will ever have been told. In a trading update for the full year ending 31 December 2007 RHC warns that results are expected to be “quite some way below the board’s previous expectations”. The warning comes amid the underperformance of RHC’s mid-market hotels in the UK. The UK looms large in RHC’s story. The company is to exit its master franchise agreement and transfer the franchising operations in the UK to Choice Hotels International on 31 January 2008. RHC will though remain a Choice franchisee.

HVS London's Server Takes A Short Christmas Break

Even computer servers can feel a bit down at this time of year. They long for turkey and yet all they receive is more chips. The server in HVS’s London office will be down from 5pm on Friday 21 December until some time on Monday 24 December for maintenance work. During that period our system will be not be handling email (although all messages sent will be stored). Please note also that our offices will be closed on 24, 25, 26 and 31 December, as well as 1 January. Although it will be business as usual (albeit with only a few of us around) on 27 and 28 December, most of us will have returned by 2 January. Our weekly EMEA Enewsletter will also be taking a seasonal break until the new year.

Absolute Share Price Performance 13-18 December 2007

Sol Meliá - Exane BNP Paribas initiated coverage with a 'Neutral' rating and a target price of €12.5.

InterContinental Hotels Group - Morgan Stanley lowered its rating from 'Overweight' to 'Equal-weight' and cut its target price from 1,100p to 980p.

Accor - The Paris market suffered a sharp fall on concerns about the US economy. Earlier, though, SG Securities had placed a 'Buy' rating on Accor's stock and given a target price of €74.

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
Dominique Bourdais, Director dbourdais@hvs.com
Bernard Forster, Director bforster@hvs.com
Karen Smith, Director ksmith@hvs.com
Marc Finney, Director mfinney@hvs.com
Demetris Spanos, Managing Director – HVS Athens dspanos@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