HVS EMEA Hospitality Enews - Week Ending 8 May 2009

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

KHI Sells Its Stake In Four Seasons Resort Sharm El Sheikh

Kingdom Hotel Investments has completed the sale of its minority interest – a stake of 39.3% – in the Four Seasons Resort Sharm El Sheikh for a cash sum of US$70 million. The buyer is reported to be the Egyptian property developer Talaat Moustafa, which already held the remaining stake in the 200-room hotel.

Ritz-Carlton To Have A Third Hotel In Egypt

The Ritz-Carlton Hotel Company has announced its third hotel in Egypt. The company has signed a management agreement with Palm Hills Developments on The Ritz-Carlton Cairo, Palm Hills. The 160-room resort, which comes complete with a 27-hole golf course, is set to open in 2012.

Doubletree To Enter The Middle East

The Doubletree by Hilton brand will enter the Middle East in the first quarter of 2010 when the Doubletree Suites by Hilton Ras Al Khaimah opens in the United Arab Emirates. Hilton Hotels Corporation signed a management agreement on the hotel, which is expected to have 112 apartments, with Mohamed Ahmed Ali Hassan Ruqait.

Ajman Takes The Luxury Collection

Starwood Hotels & Resorts has signed up a hotel for its Luxury Collection; the 207-room new-build is due to open in 2012 in the emirate of Ajman. It is in other emirates that Abu Dhabi National Hotels is currently active. Later this year ADNH will be opening the 64-suite Al Diar Hotel Apartments – Al Barsha, in Dubai, while the emirate of Fujairah is welcoming the 78-suite Siji Hotel Apartments.

Ramada To Open In Jordan And Kuwait

Ramada Worldwide is poised to open what will be its first hotel in Jordan. The 183-room, four-star Ramada Hotel and Suites Amman will be managed by Mena Co. for Hotels. In October this year, Ramada will be opening the Ramada Plaza Kuwait City. The 299-room, five-star hotel will be managed by V. Five Continents Hospitality Group of Abu Dhabi.

Rezidor And Coral Both Active In Marrakech

Carré Eden is a mixed-use development in the Moroccan city of Marrakech, and Rezidor Hotel Group will be there in 2011 with its Radisson Blu brand. The 204-room, five-star Radisson Blu Hotel, Marrakech Carré Eden is the third hotel that Rezidor has under development in Morocco. Marrakech is the city in which Coral Hotels & Resorts will henceforth be managing the Coral Mogador, Agdal – Marrakech. The five-star hotel, which is already in operation, has 610 rooms.

Marriott International Opens Two Hotels In France

Marriott International has this week opened two hotels in France. Paris has welcomed the 118-room Renaissance Paris Arc de Triomphe, and the southern city of Toulouse is in receipt of the 187-room Courtyard by Marriott Toulouse Airport Hotel.

CitizenM Opens In Amsterdam; New Park Inn For Brussels

The Dutch hotel group CitizenM has officially opened its second hotel in the Netherlands. The CitizenM Amsterdam City, which has 215 rooms, will be a companion for the CitizenM hotel at Schiphol Airport that opened in June 2008. Meanwhile, over the border in Belgium, Rezidor Hotel Group will be opening the Park Inn Brussels Midi in early 2011; the 142-room hotel is part of the South City development around Gare du Midi.

The Augustine Poised To Open In Prague

The luxury hotel The Augustine is set to open in Prague on 14 May. The 101-room hotel, which has been created from a set of six buildings that include a former brewery and a monastery, is a first hotel in the Czech Republic for The Rocco Forte Collection. Meanwhile, in neighbouring Slovakia, Kempinski has soft opened the Grand Hotel Kempinski High Tatras. The five-star hotel, which will have its grand opening in September, has 98 rooms.

Pandox Leases The Operation Of The Hotel Park In Södertälje

Choice Hotels Scandinavia is to manage, from 1 June, the operations of the Hotel Park in Södertälje, southern Sweden, under a revenue-based lease from Pandox. Pandox, the hotel property company, acquired what was the Quality Hotel Park in 2007 and has since been working on repositioning the 157-room hotel with a comprehensive refurbishment.

Kiessling's Corner

Roc Hotels has taken up the management of a new hotel on the Costa del Sol and is planning to expand its brand with two additional hotels in Majorca. The new hotel is El Pinar: a four-star property with 253 rooms and 135 apartments in Torremolinos. Sercotel is to open the 100-room JC1 Murcia on 18 May in the business and finance centre of Murcia. Meanwhile, Confortel is to open and manage two new hotels in 2011: the 85-room, three-star Confortel Coruña, in Coruña (Galicia), and the 114-room, four-star Confortel Gran Capital, in Cordoba. Elsewhere, Fontecruz has opened its first hotel: the five-star boutique hotel Fontecruz Granada. The 39-room hotel absorbed an investment of €17 million. Finally, the Madirleño Hotel Villa Magna was recently incorporated into The Leading Hotels of the World. By Gabriele Kiessling, Analyst, HVS Madrid

Millennium & Copthorne's First-Quarter Results

Millennium & Copthorne (M&C) has reported its results for its first-quarter ending 31 March 2009. In a trading environment that company chairman Kwek Leng Beng described as “predictably challenging”, M&C saw pre-tax profit fall by 50% on the previous year’s comparable to £11 million. Revenue was down by 2.2%, to £157.1 million, and marketwide RevPAR was 1.9% lower at £50.72.

Absolute Share Price Performance Over the Past Week 30 April-7 May 2009

NH Hoteles - The share price rose sharply on strong volumes.

Millennium & Copthorne - The share price rose in spite of the first-quarter results after analysts at Evolution Securities noted that the share price would be protected by the value of the company's property estate.

Accor - There were reports that Accor might have plans to spend €100 million on the acquisition of hotels.

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
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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