HVS EMEA Hospitality Enews - Week Ending 1 February 2008

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

All The Talk About Achat

European Hospitality Properties (EHP) will, over the course of this year, complete the purchase of seven hotels in Germany that are managed by Achat Hotels and wear the Achat brand. EHP, an investment fund formed by Dutch compatriots Annexum Invest and Kempen & Co., is to pay a total of €70.2 million for the mix of three-star and four-star hotels. Three of the hotels are located near Munich and there are individual hotels in each of Bretten (near Karlsruhe), Hanover-Langenhagen, Stuttgart and Hoyerswerda.

Park Hyatt Casares To Be Sold

The Spanish press reports that Grupo Evemarina, a real estate firm, has agreed to sell the Park Hyatt Casares Hotel to an investment fund from the Middle East for €70 million. The five-star hotel, which will have 170 rooms, is under development near the southern resort of Marbella and is due to open in 2009. The deal will have no effect on Hyatt International’s management agreement.

Losan Hotels World Buys Again In London

Losan Hotels World, a real estate investor from Spain, is reported to have paid €155 million for what is its third hotel in London. The 137-room, five-star Hotel Silken, which is set to open on the Strand later this year, joins the 200-room NH Harrington Hall and the 121-room NH Kensington in Losan Hotels World’s portfolio of hotels in London.

Renaissance Brand To Portugal

The Renaissance brand has not been to Portugal before, but it seems to have had little trouble locating the Algarve and the town of Vilamoura. Over the course of 2008 the name Vila Sol Spa & Golf Resort will fade from collective memory to be replaced by the name Vila Sol Algarve, a Renaissance Spa & Golf Resort. Marriott International has signed a long-term management agreement with Vila Sol IV – Gestão Hoteleira, the owner of a hotel that will have 189 guest rooms and 86 serviced apartments.

Radisson Brand To Madrid

Take a building opposite the Prado Museum, let renowned designers Tarruella & Lopez loose inside it and what you should have by the end of 2009 is the first Radisson SAS hotel in the Spanish capital Madrid. The Radisson SAS Hotel, Madrid Prado will have 54 rooms. If Radisson needed someone to take it on a familiarisation tour of the city, then it could have no better guide to Madrid than Barceló Hotels & Resorts. The Spanish firm is poised to open the 144-room, four-star Barceló Castellana Norte, its second hotel in the city and its third in the Madrid region.

Bahrain Blessed By St. Regis

The St. Regis Bahrain is the latest addition to the St. Regis portfolio in the Middle East. The 300-room hotel will be built on a reclaimed island facing the Bahraini capital Manama. The hotel is set to open in 2011.

Multiple German Tulips: A Move Of Arcadian Simplicity

Never mind the bulb fields of Holland, just take a look at that blanket of tulips that has bloomed of a sudden in Germany. Golden Tulip Hospitality (GTH) promoted the vigorous growth by signing a franchise agreement with Arcadia Hotels that will see 27 Mercure hotels turn into nine Golden Tulip hotels and 18 Tulip Inn hotels. GTH’s portfolio in Germany will thus rise to 46 hotels (5,548 rooms).

Grand Hyatt Comes To Frankfurt

If it’s a mixed-use development you want building in any of Germany’s big cities then normally you get straight on the blower to Vivico Real Estate. Europaviertel is one example of the company’s work, and it is to be seen rising in Vivico’s home city of Frankfurt. If the line was engaged when you rang, it was probably because Vivico was calling Global Hyatt Corporation. Their conversation resulted in Hyatt’s agreeing to operate a hotel that will occupy part of a 165-metre tower at Europaviertel. The 405-room Grand Hyatt Frankfurt is set to open in 2011.

Ramada Encore To Populate Ukraine

Wyndham Hotel Group is to work with Ukrainian Hotels, part of Astron-Ukraine Corporation, in the development of 15 hotels in Ukraine over the next ten years. Ukrainian Hotels will franchise and manage the hotels, which will fly the Ramada Encore flag in the capital Kiev and in other populous cities. Rezidor Hotel Group is also heading east, along a path it has trodden before. The way leads to the Russian city of St Petersburg, where in February 2009 Rezidor is to open a third Park Inn: the 246-room Park Inn St Petersburg, Nevsky Prospekt.

Schrager And Marriott Sign Those First Editions

Ian Schrager and Marriott International announced last summer that they were getting together to create the next generation of boutique hotels. That generation now has a name, and the identity of the first nine locations has been confirmed. Edition is the brand that these hotels of between 150 and 200 rooms will be wearing. And on our side of the pond that name will be seen above a hotel in each of Paris and Madrid. The first wave of hotels is expected to open in 2010. Schrager and Marriott are in discussions about another 20 hotels; they plan to have more than 100 Edition hotels worldwide.

Marriott's Scandinavian Projects Multiply

Marriott International announced last autumn that it had entered into a franchise agreement with Scandinavian Hospitality Group to bring 15 hotels to Norway, Sweden and Finland inside six years. The onset of winter has not frozen those plans and the pair are keeping warm by planning the next four hotels (two Courtyard by Marriott hotels having already been bagged). So look out Norway, you are to get three of them by 2010: the 300-room Oslo International Airport Marriott Hotel, the 280-unit Trysill Marriott Ski Resort and the 310-unit Hemsedal Marriott Resort. The Swedish city of Malmö receives the other: the 120-room Renaissance Malmö Hotel.

Louvre Not Blind To Campanile Opportunities

Shin up that tower, strike the bell with a mallet you have kept handy for the purpose and ring out the news that Campanile now has two more hotels (239 rooms) in the UK. Parent company Louvre Hotels has acquired the former Novotel Bradford, in West Yorkshire, and the former Ibis Swindon, in Wiltshire, and turned them into hotels number 17 and 18 in the Campanile collection in the UK. While you’re up that tower how about providing an extra ‘bong’ for news of ten – Louvre Hotels’ tenth hotel in Poland. The 104-room Hotel Campanile Łódź opened last month in the city of Łódź.

English Garden Taken Over By Doubletree

The English city of Cambridge is a noted seat of education. Had you been up there this week you would have learnt that Hilton Hotels Corporation (HHC) has chosen the city as the location for its first Doubletree by Hilton hotel in the UK. The 122-room Cambridge Garden House Hotel is to be transformed into the Doubletree by Hilton Cambridge – Garden House ready for opening on 2 April. HHC will manage the hotel, which is owned by Ability Hotels (Cambridge).

Kingdom Hotel Investments Issues A Trading Update

Kingdom Hotel Investments (KHI) has issued a trading update covering the year to 31 December 2007. KHI expects revenue to have grown by 80% and EBITDA to have grown to more than US$35 million (from US$10 million in 2006). Systemwide RevPAR across KHI’s portfolio of 21 consolidated and associate hotels is expected to have grown by more than 20%. KHI reports its full-year figures on 3 March.

Absolute Share Price Performance Over the Past Week 24-31 January 2008

Whitbread - The share price rose on reports that property magnate Asif Aziz had taken a stake of 8%.

NH Hoteles - The share price rose on rumours that Hesperia Hoteles was plotting a takeover bid.

InterContinental Hotels Group - ABN Amro has a 'Buy' rating on the stock.

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 Directorrkett@hvs.com
Charles Human, Managing Director – HVS HWEchuman@hvshwe.com
Dominique Bourdais, Directordbourdais@hvs.com
Karen Smith, Directorksmith@hvs.com
Marc Finney, Directormfinney@hvs.com
Hadrien Pujol, Directorhpujol@hvs.com
Demetris Spanos, Managing Director – HVS Athensdspanos@hvs.com
Christopher Mumford, Managing Director – Executive Searchcmumford@hvs.com
Philip Bacon, Managing Director – HVS Madrid and Managing Director, EMEA & Asia – HVS Shared Ownership Servicespbacon@hvs.com
Adrian Jones, EMEA Hospitality Enews Authorajones@hvs.com