HVS EMEA Hospitality Enews - Week Ending 22 August 2008

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

Three New Rezidor Hotels For Russia

Further to previous rumours of a new Radisson hotel for Rostov-on-Don, Rezidor Hotel Group has confirmed that the Radisson Grand Hotel Rostov-on-Don is to open in the third quarter of 2011 with 520 rooms. As well as the Radisson Grand, this week Rezidor also announced another two hotels to pad out its portfolio in Russia. The 173-room Park Inn Volgograd is to open in the second quarter of 2010, in the southwestern port of Volgograd on the river Volgo, and the 276-room Park Inn Kaliningrad, in the west of the country, is scheduled to open at the beginning of 2011.

Marriott International Backs A Winner

Lingfield Park racecourse, in the county of Surrey in the UK, is to gain a Marriott Hotel & Country Club. The 116-room Lingfield Park Marriott Hotel & Country Club is the product of a franchise agreement between Marriott International and London-based Arena Leisure, the owner Lingfield Park and six other racecourses across the UK. The hotel is expected to open in 2010 and it will join the other 11 properties currently operating under Marriott’s Hotel & Country Club brand in the UK.

Hilton Resort To Debut In Dalaman

Hilton Hotels Corporation has announced that it is to develop its first resort property in Turkey through a franchise agreement with its subsidiary Hilton Worldwide Resorts and construction company Gocay Tourism, Management, Investment, Transportation & Trade. The 384-room Hilton Dalaman Golf Resort & Spa is to open in the middle of 2009 on Sarigerme Beach, in Turkey's Dalaman region.

FIFA Fever For City Lodge Hotels

In anticipation of the demand for hotel accommodation from the 2010 FIFA World Cup which is to be held in South Africa, South African hotel chain City Lodge Hotels plans to develop seven new assets, taking its portfolio of properties from 42 (4,773) rooms to 49 (5,885 rooms) with an investment of R397 million (US$50 million). The new hotels will include the 90-room Road Lodge Potchesfstroom, which is under construction and expected to open in November 2008, and the 204-room Town Lodge Port Elizabeth, which is due to open in 2010 and will be the company’s fourth hotel in the city. Plans are currently being drawn up for a 200-room City Lodge in Fourways (Johannesburg), a 200-room City Lodge in Lynnwood and a 150-room City Lodge in Hatfield (both in Pretoria).

One To One Debuts In Abu Dhabi

Abu Dhabi-based Middle Eastern hotel group One to One Hotels, which was launched in 2007, has opened its first venture, the four-star, 128-room One to One Hotel – The Village, in the centre of Abu Dhabi in the United Arab Emirates.

Malmaison and Hotel du Vin Hotel Chains Up For Sale

Marylebone Warwick Balfour’s (MWB) Malmaison and Hotel du Vin boutique hotel chains are up for sale for the third time in 18 months. A combined asking price of £650 million has been set for both assets; however, according to The Times MWB is marketing the brands as separate entities, for a rumoured £350 million for Malmaison and £300 million for Hotel du Vin. There are currently 11 Malmasion hotels and 11 Hotel du Vin properties operating in various UK cities. The company has four hotels under development and it has acquired properties in Canterbury and St Andrews, which it intends to convert, as part of the company’s plan to increase its portfolio to 30 hotels by the end of 2009.

Travelodge Opens Its First Modular Hotel

If you ever find yourself in the position were you need a hotel constructed in a hurry do not despair…call Travelodge and they will have one put up in a jiffy. This week, the company opened its first hotel to be constructed using modified steel shipping containers. The containers were built, and each fitted with hotel room fixtures and furniture, in Shenzen, China. After their arrival in the UK the containers were fitted together and hey presto!…within 20 days the 120-room Travelodge Uxbridge Central Hotel stood proud in the town of Uxbridge, in Greater London. Travelodge has other developments up its sleeve using this modular method, which was created by British firm Verbus Systems, with a 307-room hotel at Heathrow Airport in the pipeline.

A New Hotel Chain To Enter The UK and Irish Markets

According to The Irish Independent, Ion Equity has teamed up with three former, senior Jurys Doyle executives, Conal O’Neil, Shane Casserly and Dermot Crawley, to form Pillo Hotels in order to create a new budget hotel chain in Ireland and the UK. The company is reported to be close to acquiring a site in Manchester as one of the first locations for the new chain.

Predeal To Get A New Five-Star Hotel

A Jordanian business man, Fathi Taher, is to invest €40 million in developing a hotel in the mountain resort of Predeal in central Romania. Construction on the five-star, 140-room hotel is to start in spring 2009 and the hotel is expected to open 14 months later in 2010. The hotel will be developed by Romanian company Trei Brazi, which is majority owned by Fathi Taher.

The Countdown Continues

Do you have plans for the 8 and 9 September 2008? If the answer to this question is no then pull out your diary and pencil in the Eighth Annual European Hotel Investment and Finance Summit. When the time comes get yourself down to the Hilton London Tower Bridge hotel, in London, to get together with others in the hospitality industry and listen to the many speakers taking part in this year’s event, including HVS London's Russell Kett and Tony Potter, chief executive of Corinthia Hotels. To book your ticket visit http://www.euromoneyseminars.com. click here

Kiessling’s Corner

The latest news from Spain by Gabriele Kiessling, HVS Analyst, Madrid. Construction company Viassa is in the process of finishing the last details of its new project, the Gran Hotel Don Manuel, in Caceres, Exremadura. The 127-room, four-star hotel will be managed by Husa and is due to open at the end of the year. According to the local press, the total investment in the project will exceed €20 million. Husa already has one hotel in Caceres, the three-star, 66-room Husa Alcantara, and it has another two properties within the Caceres Provence: the four-star Husa Hospederia Rio Hurdes Reales, in Ladrillar, and the four-star Husa Rio Convento de la Luz, in Brozas. Hotel supply in the region of Navarra is to grow with the opening of the four-star, 46-room Castillo de Gorraiz Hotel, Golf & Spa. The newly constructed boutique hotel will be four kilometres from the centre of Pamplona and is to be developed for a total of €4 million.

Absolute Share Price Performance Over the Past Week 14-21 August 2008

Accor - JP Morgan gave the company a 'neutral' rating and cut its target price from €60 to €50.

Whitbread - Whitbread was also given a 'neutral' rating from JP Morgan this week, and its target price was cut to £1.25 from £1.40.

InterContinental Hotels Group - Morgan Stanley downgraded the company to 'underweight' and cut its target price from 98 pence to 81 pence.

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
Hadrien Pujol, Directorhpujol@hvs.com
Demetris Spanos, Managing Director – HVS Athensdspanos@hvs.com
Hala Matar Choufany, Director – HVS Dubaihchoufany@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
Louise Fury, EMEA Hospitality Enews Authorlfury@hvs.com