HVS EMEA Hospitality Enews - Week Ending 11 January 2008

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

JER Partners Buys The Munich Marriott Hotel

JER Partners has marked the start of the new year by making its first entry into the hotel market in Germany. JER Partners, a private equity firm, has paid an undisclosed sum for the 348-room, four-star Munich Marriott Hotel. The firm has plans to refurbish the hotel over the next few years. Marriott International’s long-term management agreement is unaffected by the deal. Marriott International acquired the hotel from The Blackstone Group in 2005; at that time it had an asking price of a reported €65 million.

New Choice Available From Hotel du Vin List

Hotel du Vin is already in the swing of things in Scotland, with a hotel in Glasgow and one planned in Edinburgh. The chain has the opportunity now to improve its swing, having tightened its grip north of the border by acquiring a hotel near the Royal & Ancient Golf Club in St Andrews. Hotel du Vin paid St Andrews Golf Hotel (1999) Ltd an undisclosed sum for the 22-room St Andrews Golf Hotel.

A Quality Purchase Lights Up Home

Home Properties, the hotel property company from Sweden, has completed its purchase of the Quality Hotel Mastemyr for around SKr164 million (roughly €17.5 million). Home Properties arranged the deal with City Finansiering just before Christmas. Quality Hotel Mastemyr stands near the Norwegian capital Oslo and has 152 rooms.

Invalda Agrees To Sell Hotel Operator Valmeda

Invalda, an investment company from Lithuania, is to sell its 100% holding in Valmeda. Invalda expects the deal to have completed by the end of January, at which time the company should reveal the identity of the buyer and the transaction price. Valmeda operates two hotels in the Lithuanian capital Vilnius: the 134-room Holiday Inn Vilnius and the 168-room Ecotel Vilnius.

Mövenpick Enjoys Post-Christmas Turkey…

Mövenpick Hotels & Resorts is one company that can bear the sight of Turkey so soon after Christmas. The Swiss company has signed a management agreement with Varan Group for the five-star Mövenpick Hotel Ankara. The 150-room hotel is set to open in 2010 in the Sogutozu district of the Turkish capital Ankara. Mövenpick Hotels & Resorts is preparing to open a 185-room hotel in the city of Izmir next month; it already has a hotel in each of Istanbul and Bodrum.

…And Returns To Set Sharm A-Shaking

Mövenpick Hotels & Resorts rode out of Sharm El Sheikh last year when its marketing and technical operation assistance agreement with Jolie Ville Hotels Management expired. It was goodbye to two Jolie Ville resorts that had carried the Mövenpick name. But, having swiftly engaged its camel’s reverse gear, Mövenpick is back in the resort on Egypt’s Red Sea coast, this time in the company of Integrated Development and Tourism Investment. IDTI owns the hotels for which Mövenpick has signed the management contracts: the 327-room Mövenpick Resort & Spa Sharm El Sheikh (opening this summer) and the 268-room Mövenpick Resort Um El Seid (opening in spring 2009).

Le Meridien Doha Makes Five

In Qatar a shout of “Yo Starwood man, gimme five” might not elicit the palm-slapping response you were expecting. Instead, the company representative will use his hand to point to a building site in the Qatari capital Doha and calmly reply, “We already have”. Besides, your man’s palms will still probably be smarting from high-fives exchanged with Starwood’s old friend Saleh Al Hamad Al Mana Company, the owner of the upcoming Four Points by Sheraton Doha and owner too of Starwood’s fifth hotel in Qatar: Le Meridien Doha. Work on the 250-room hotel and a set of 100 serviced apartments is to begin in the early part of this year. The last ridge tile will be cemented in place by 2010.

Fashion Island

Still seeking that dedicated follower of fashion in Regent Street and Leicester Square? No wonder you search in vain: the UK is the wrong island. As the youthful Dubai Infinity Holdings (established December 2007) will tell you, the only island dedicated to fashion is Isla Moda, part of The World development off the coast of Dubai. Fashion designers from around the world are to descend on the mixed-use development to lend their touch to accessories such as the luxurious Hotel Moda, which will provide serviced apartments and around 250 guest rooms. The hotel will be complemented by residential villas, boutiques and design studios. Work on Isla Moda will be under way by the final quarter of this year.

Hotel Is Going To Be A Wheel Someday

Where do I go to find a hotel in the shape of a wheel? Well, permit this newsletter to clasp your hand and take you for a stroll along the prom, prom, prom: the Dubai Promenade, in this instance. No brass band is playing yet; reclamation work is in progress and construction work proper is not scheduled to start until the middle of this year. Yet Nakheel, the developer of Dubai Promenade, should be forgiven for having a preliminary blow on its own trumpet. The wheel-shaped five-star hotel is one element of a peninsula lying between Dubai Marina and the sea and it will have a selection of residential towers, restaurants and retail outlets for company.

Park Inn Rally: London To Dakar (Via Bratislava)

The Park Inn brand has extended its reach by applying its name to two existing hotels in Europe and by hovering expectantly around a hotel under construction in West Africa. In London, the 214-room Bonnington Hotel will on 1 February take the name Park Inn London, Russell Square. Nameplates are already in place in the Slovakian capital Bratislava: they hang above the doors of the former Danube Hotel Bratislava, reborn late last month as the 265-room Park Inn Danube. The hotel in the Senegalese capital Dakar is not set to open until the fourth quarter of 2009 but when it does so it will be the 105-room Park Inn Dakar.

A Courtyard For Budapest In 2009

The Courtyard by Marriott brand will arrive in Budapest in 2009. The flag will be carried by a 235-room hotel that will be managed by Marriott International under an agreement reached with Duna Office Center, a subsidiary of the real estate owner and developer Ablon Group. The hotel is part of a mixed-use development on Blaha Luiza Square.

Barceló Opens Hotels In Germany And Tunisia

Oh, it’s Cologne. Say those words with a hint of disappointment in your voice and you re-create present-unwrapping time in many a home on Christmas Day. But say them with joy and you have a sense of how Barceló Hotels & Resorts feels now that it has its first hotel in Germany. The Spanish company has been installed by its compatriot Losan Hotels World (LHW) as the manager of the 301-room Barceló Cologne City Center Hotel. LHW paid a reported €58 million for the hotel, the former Crowne Plaza Cologne City Centre, last autumn. Say “Tunisia” and like Barceló you will breathe more easily knowing that your second hotel in the North African country has opened successfully. The 336-room Barceló Hammamet, on the seafront near the town of Hammamet, is owned by Tunisian tourist group Miramar.

Absolute Share Price Performance Over the Past Week 3-10 January 2008

Accor - Citigroup placed a 'Buy' rating. UBS had a 'Neutral' rating and gave a target price of €58.50.

Sol Meliá - Citigroup placed a 'Buy' rating and cut its target price from €20 to €14.

Whitbread - The share price rallied somewhat, earlier in the week, as UBS restarted coverage with a 'Buy' rating and a target price of 1,630p.

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
Hadrien Pujol, Director hpujol@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