HVS EMEA Hospitality Enews - Week Ending 27 June 2008

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

Swallows Fly To Travelodge

Travelodge has added seven hotels and 669 rooms to its ever expanding portfolio in the UK. The company has invested a total of £28.4 million in two Swallow hotels – one in the Scottish capital Edinburgh, the other in the English seaside town of Scarborough – and will spend a total of an additional £7 million converting the hotels to the Travelodge brand by early next year. Travelodge will invest £34.5 million in five other hotels. Two are in North Wales: in Porthmadog and Caernarfon; the others are in London (Finsbury Park), which takes £10.1 million of the money; Egham, in Surrey; and the city of Gloucester.

A Reported Ten Million For The Ten Square

Property developer John Miskelly may have failed to hit the target at Anfield but he has made up for it by scoring spectacularly in Belfast. Besides, who needs to own a football club like Liverpool when you can have a top-rated boutique hotel instead? Ten Square is that hotel and Miskelly is reported to have paid the Hill brothers around £10 million for it. Miskelly is said to have plans to raise the hotel’s room count from 23 to more than 100.

There Once Were Two Buyers In Limerick…

Lynch Hotels is reported to have finalised a deal to sell and lease back the four-star South Court Hotel & Suites. Robert Butler, a property developer, and Paul O’Brien, a solicitor with the practice McMahon O’Brien Downes, are thought to have paid €15 million for the 127-room hotel, which stands on the outskirts of the southwestern city of Limerick, in the Republic of Ireland. The new owners are both based in the city.

Petersham Calls By King Edward's Place

The company Petersham Hotel, the owner of an eponymous hotel in Richmond-upon-Thames, has paid the insurance firm Zurich an undisclosed sum for King Edward’s Place, a residential training centre near the town of Swindon, in southern England. The centre, which had an asking price of £12 million, has been renamed Liddington Hotel. The 198-room hotel joins the 60-room Petersham and the 70-room Elvetham Hotel, in Hampshire, in Petersham Hotel’s collection.

IHG Cheers Turkey Up With Two New Hotels

The Express by Holiday Inn Istanbul Bayrampasa is to be the first hotel in Turkey with the Express by Holiday Inn (EHI) brand. The 146-room hotel will not want for company; it is one member of InterContinental Hotels Group’s (IHG) “magnificent seven” in the city of Istanbul. For riding into town alongside the EHI and making the number of hotels up to seven is the 281-room Crowne Plaza Istanbul Bayrampasa. IHG has signed a 20-year management contract on both hotels with the Turkish company ORA Istanbul Real Estate Investment and Development. The hotels, which are set to open in the first quarter of 2010, are to be part of the ORA Istanbul Urban Entertainment Center.

To See The First Ramada In Lebanon, Head Downtown

The Ramada Beirut Downtown is the first hotel in Lebanon with the Ramada brand and it is now open for your delectation in the capital Beirut. The 99-room hotel is the first hospitality project in the country to be realised by the Kuwaiti Al Taameeer Real Estate Investment Company, which has invested US$18 million in the hotel. Al Taameer has held the master franchise on the Ramada brand in Lebanon, Egypt, Morocco, Jordan, Libya and Iraq since last year and has recently agreed a deal on the Ramada Encore franchise.

Arusha Bloods A Mövenpick Hotel

Mövenpick Hotels & Resorts has signed a management agreement with the Taninvest Group of Companies that will bring a second Mövenpick hotel to Tanzania. The 200-room Mövenpick Resort Arusha, which will stand at the foot of Mount Meru, in the north of the country, will be finished by 2011. The resort will have a spa, a conference centre and an 18-hole golf course.

Park Inn To Grace Graz

International footballers have been scoring in Austria and so too has international hotelier Rezidor, which has tucked away a fourth Park Inn, right in the bottom corner of the country. The 194-room Park Inn Graz, in the southeastern city of Graz, is to open in the third quarter of 2010 and it will be managed by RIMC Austria/Vienna, a subsidiary of Rezidor’s long-term partner RIMC International. Rezidor is happy in any position, geographically speaking, and to underline this it has netted a fiftieth hotel in what the company terms the “Middle East, Africa & Others” region. The 450-room Radisson Dubai Trade Centre District, which will be part of the Dubai International Exhibition & Convention Centre, is set to open in the emirate of Dubai at the end of 2011.

Eclipse With That Orange Glow

Eclipse Hotels Group is to spend up to £60 million over the next four years on the development in the UK of ten hotels in the easyHotel “super-budget” chain. Eclipse already has the franchise on the easyHotel Luton and is working on the easyHotel Heathrow, which is due to open this October.

Hotel = ng²

The developer Miller Birch launched its business park NG2 (or ng² as the stylists have it) in 2003 and over the course of time the park has attracted several tenants to its 38 acres in the city of Nottingham, in central England. There is still space for a four-star hotel, though, and if planning permission is secured, then work will start next January on the construction of one with 184 rooms that will cost a reported £25 million. It is reported that Marriott International might be interested in the finished product. The hotel, which should be ready around January 2010, will be owned by Miller Birch’s partner Arck Alternative Asset Fund.

Gresham Dublin Is Ready To Expand

The Irish Times reports that Precinct Investments has secured permission from Dublin City Council to extend and refurbish the four-star Gresham Dublin. The number of guest rooms will be raised from 288 to 467; a conference facility will be added to the eighth floor; the seventh floor will take a new executive lounge; and the first floor will welcome a spa and fitness area.

Kiessling's Corner

High Tech is planning to open a boutique hotel in the centre of Madrid, a city in which the company already operates 19 hotels. The four-star Petit Palace Mayor will have 66 rooms. Hosteltur reports that High Tech is planning to open another hotel in Madrid by converting an old office building on San Augustin. The restructuring of the hotel has already been authorised by the city council. Elsewhere, the group Menchero has constructed the Puerta de la Sagra hotel in the city of Toledo. A manager is yet to be found for the 45-room, three-star hotel. By Gabriele Kiessling, Analyst, HVS Madrid

Absolute Share Price Performance Over the Past Week 19-26 June 2008

Millennium & Copthorne - Dresdner Kleinwort raised its rating from 'Add' to 'Buy' and gave a target price of 440p.

NH Hoteles - Cheuvreux gave an 'Underperform' rating and cut its target price from €8.69 to €8.50.

InterContinental Hotels Group - The company's share price was among those to suffer as the FTSE 100 fell as a result of a sharp global banking sell-off.

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
Hadrien Pujol, Director hpujol@hvs.com
Demetris Spanos, Managing Director – HVS Athens dspanos@hvs.com
Hala Matar Choufany, Director – HVS Dubai hchoufany@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