HVS EMEA Hospitality Enews - Week Ending 24 April 2009

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

Europe's First Residence Inn Will Reside In Munich

Marriott International is to expand its Residence Inn brand into Europe with the opening of a 122-unit Residence Inn in the southern German city of Munich in 2011. The London office of HVS was delighted to be involved in this project by advising on the feasibility of the development. Another company involved in this debut is It’s all about Hotels, an international hospitality consultancy based in Munich. It’s all about Hotels’ managing director Marc J L Goossens commented: “It was an honour for me that my company was chosen by Reiss & Co Real Estate GmbH Munich and E&G Bridge Equity Fonds GmbH and Co. KG, a private equity fund managed by E&G Financial Services, to be their hotel advising company for this exciting hotel project…I am looking forward to assist[ing] them for the next two years”.

Spend Your Lolly On Magnum Hotels Croatia

Magnum Group and the Austria-based real estate company Real4You are to sell their portfolio Magnum Hotels Croatia; the minimum asking price is €33 million. Three of the four hotels in the portfolio are in the resort of Opatija: the Hotel Opatija, the Hotel Bristol and the Hotel Astoria. The fourth hotel, Hotel Apoksiomen, is on the Adriatic island of Mali Lošinj. The hotels, which have a combined total of 370 rooms, are all four-star save for the two-star Hotel Opatija.

LonZim Spots A Leopard And Bags It

The company LonZim derives part of its pleasure in life from investing in Zimbabwe. Last week it pulled off the acquisition of the Leopard Rock Hotel, paying US$8.5 million for the shares in the holding companies that owned Leopard Rock Hotel Company. LonZim is to straight away spend another US$1.7 million on renovating the hotel, which stands in the Eastern Highlands. LonZim might in future add 100 rooms to the 58 that the hotel already has.

Abu Dhabi Welcomes Viceroy

Kor Hotel Management is to operate a five-star hotel on Sowwah Island, which is at the heart of the Central Business District in Abu Dhabi. The Viceroy Abu Dhabi, which will be the flagship of the Viceroy brand in the Middle East, will have a maximum of 250 rooms and will provide branded residences. The hotel is currently in its preliminary design phase.

No Restrictions On Park Inn: Four More Hotels Announced

The stamina of those gathered to celebrate the Park Inn Dnepropetrovsk and three other new Park Inn hotels was thoroughly tested when the Rezidor cheerleaders opened with a breezy “Give us a ‘D’”. As the applause for the 250-room hotel in Ukraine (opening in the second quarter of 2011) died, those still sucking on their throat lozenges must have thought they were in for a reprise when the second chant opened with the exact same letter; but this ‘D’ was for Doncaster, in South Yorkshire, where the 87-room Purple Hotel Doncaster is to rebrand next month. And there was no going home for a gargle until the 204-room Park Inn Abu Dhabi, Yas Island (opening at the end of 2009) and the 100-room Park Inn St Gallen (in Switzerland and opening by mid 2010) had been welcomed appropriately.

Kiessling's Corner

The French hotel chain Louvre Hotels will shortly open (possibly as early as next month) its eighth establishment in Spain and its first in Andalusia. The three-star Campanile Malaga will have 144 rooms. Meanwhile, along the coast in Marbella, Hotel Villa Padierna has opened 11 new villas and three new suites. In the province of Caceres (Extremadura) Hotel Talayuela Golf, a four-star hotel with 49 rooms, has had its official opening. A feature of the hotel is its 18-hole golf course designed by Seve Ballesteros. By Gabriele Kiessling, Analyst, HVS Madrid

The Arabian Hotel Investment Conference Is Only Eight Nights Away

The Arabian Hotel Investment Conference 2009 runs from 2 May to 4 May. To keep up with it, you should visit www.arabianconference.com click here . Finely toned speakers are even now limbering up their larynxes to deliver all that’s worth hearing about hotel investment in the Middle East. HVS has three of its finest on the Lucozade: the heads of three of its offices, no less. Russell Kett (London), Philip Bacon (Madrid) and Hala Matar Choufany (Dubai) would be pleased to have you cheer them on in the arena where all the action will unfold: the Madinat Jumeirah hotel, in Dubai.

Absolute Share Price Performance Over the Past Week 16-23 April 2009

Starwood Hotels & Resorts - Though Robert W Baird & Co cut its rating from 'Outperform' to 'Neutral' and its target price from US$19 to US$17, the share price is thought to have rallied as Marriott International reported first-quarter results that were better than expected.

NH Hoteles - The share price made gains on positive news about the hotel sector in Spain.

Whitbread - The company's share price was one of many in the pub sector to gain after the increase in alcohol duty in The Budget was not more than 2%.

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
Tim Smith, Director tsmith@hvs.com
Demetris Spanos, Managing Director – HVS Athens dspanos@hvs.com
Hala Matar Choufany, Managing 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