HVS EMEA Hospitality Enews - Week Ending 18 April 2008

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

A Waldorf-Astoria Hotel for Jerusalem

Hilton Hotels Corporation has signed a management agreement with IPC Jerusalem to bring the city of Jerusalem, in Israel, a Waldorf-Astoria hotel. IPC Jerusalem is reportedly investing US$100 million in renovating the 220-room Palace Hotel. It is anticipated that the historic building, which was built in the 1920s, will open in 2010 as the Palace Jerusalem – The Waldorf-Astoria Collection. There are currently only five Waldorf-Astoria branded hotels in the world; this spring Italy will gain number six and Europe’s first when the Rome Cavalieri opens under the Waldorf-Astoria brand.

The City Of Novosibirsk Sees Double

Hilton Hotels Corporation is to bring the Doubletree by Hilton brand to Russia through a franchise agreement with ZAO Russkaya Kompaniya Razvitiya, a fully-owned subsidiary of the London & Regional Group. At the end of 2008, the Siberian city of Novosibirsk, in west central Russia, is to be the privileged owner of the 188-room Doubletree by Hilton Novosibirsk, which will be part of a mixed-use resort. The 275-room Hilton Moscow Leningradskaya, Hilton’s first hotel in Russia, is due to open in May of this year. Hilton, with London & Regional Properties, plans to introduce 25 new hotels under selected Hilton brands to Russia over the next ten years.

There Will Soon Be Room At The Inn In Kazan

Rezidor Hotel Group has travelled to the Tartastan capital of Kazan, in Russia, to announce the signing of the Park Inn Kazan. The 174-room hotel is to open in the second quarter of 2011 in the city centre and it will be Rezidor’s 30th hotel in the CIS region.

Park Plaza To Expand In Russia

Park Plaza Hotels Europe is join up with Ferens Management, a subsidiary of the Moscow-based Renova StroyGroup, to create a chain of up to 20 new hotels under the Park Plaza brand across major Russian cities (mainly concentrating in Moscow and St Petersburg) over the next four years. The hotels are to be operated under 20-year management contracts and will add approximately 4,000 rooms to Park Plaza’s portfolio.

Crete Celebrates Its First Mövenpick

In the eastern Mediterranean, the Greek island of Crete is busy preparing for the opening of its first Mövenpick hotel, which is to take place in the next few days. After a two-year renovation and extension, the Mövenpick Resort & Thalasso Crete is to offer 285 rooms on Crete’s north shore on Amoudara Beach.

Domina Hotel Group To Open Three New Hotels

Italian chain Domina Hotel Group is to continue its expansion into North and Eastern Europe with the opening of three new hotels. The 200-room Domina Hotel Rotterdam is to open this summer in the Dutch city of Rotterdam. The 206-room Domina Hotel Budapest is to open in spring 2009 and it will be Domina’s second hotel in Budapest, Hungary. The 108-room Domina Prestige St Petersburg will open in the city centre of St Petersburg, Russia, and this opening will also see the launch of the Prestige brand. These three openings will bring Domina’s portfolio in the region to nine hotels and nearly 1,000 rooms.

From Mount Olympus To Manchester

Zeus, a Manchester-based private equity firm, has invested £25 million in the acquisition of four privately owned hotels in the UK. Through its Hallmark Hotel Group, Zeus acquired the 70-room Lakes Court Hotel in Carlisle, the 77-room Durley Hall Hotel and Spa in Bournemouth, the 100-room Midland Hotel and the 88-room European Inn, both in Derby. All of the hotels will keep their current names. The 81-room Belfry House Hotel, in Handforth, Cheshire, was the first property to join Zeus’ hotel portfolio as part of its buy and build strategy to acquire three-star regional UK hotels and turn them into four-star properties. The Belfry House Hotel is currently undergoing a £3 million refurbishment and Zeus plans to invest £4 million in its other four sites.

Dubai World To Bring A Hotel To Gorée Island

The Middle Eastern holding company Dubai World has signed a memorandum of understanding with the Government of Senegal, in West Africa, to provide Gorée Island with a five-star hotel and beach resort. The island is a UNESCO world heritage site located one mile off the coast of Dakar in Senegal. Through its African subsidiary, Dubai World Africa, Dubai World has a growing portfolio on the continent which includes the Shamwari Game Reserve, the Sanbona Wildlife Reserve and the Jock Safari Lodge in South Africa, the One&Only Zanzibar in Zanzibar (due to open in 2010) and the 177-room Djibouti Palace Kempinski in Djibouti.

Westin Makes Its Debut In Dubai

Starwood Hotels & Resorts’ Westin brand is to make its debut in the emirate of Dubai in May 2008. The 294-room Westin Dubai Mina Seyahi Beach Resort and Marina will open on Jumeirah Beach, and it will get together with its sister property, the 211-room Le Meridien Mina Seyahi Beach Resort, to create a combined beachfront complex on the Arabian Sea.

The Meliá de Mar Reopens After A Refurbishment

The Meliá de Mar Hotel in Ses Illetes, on the Spanish Balearic island of Majorca, is to reopen in May 2008 after a undergoing a thorough renovation under the care of architect Álvaro Sans. The 144-room hotel was originally designed and built in 1964 by José Maria Coderch. It is the first hotel in Majorca to feature the new brand concepts of Meliá Hotels. Each floor of the hotel will display work by well-known European artists.

Centre Island To Refurbish The Crowne Plaza Birmingham

Merseyside-based hotel operator Centre Island is rumoured to be investing £16 million to refurbish the Crowne Plaza Birmingham. Centre Island took over the hotel in 2005. The company also has hotels in Manchester, Liverpool, Preston and Ellesmere Port in northwest England. The work at the Crowne Plaza Birmingham is expected to be finished by September 2008.

Accor Reports Its First Quarter Revenue

Accor has reported that for the first quarter of 2008 hotel revenue has increased by 3.7% like-for-like, amounting to approximately €1.3 billion. RevPAR of €63 has been reported for upscale and midscale hotels in Europe, an increase of 2.7% like-for-like; RevPAR for economy hotels in Europe was €37, an increase like-for-like of 3.6%.

Absolute Share Price Performance Over the Past Week 10-17 April 2008

NH Hoteles - Shares rose amid takeover speculation.

InterContinental Hotels Group - Shares received a boost after the company announced it is to double the number of its hotels in China by 2010.

Accor - The company was given a buy rating by Jefferies International Ltd with a price target of €74.00.

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