HVS EMEA Hospitality Newsletter - Week Ending 12 February 2010

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

Four From Foncière Could Soon Be Sold

Foncière des Murs expects to have sold four hotels in France by the end of March. The French property company will receive a total of €24 million (a yield of a reported 6.85%) from an unnamed buyer for the hotels in Nantes, Lille, Courbevoie and Montpellier that are all leased by Accor and have either the Ibis or the Etap brand. The transaction is in line with Foncière des Murs’ strategy of disposing of a limited number of its assets.

Kempinski Returns To London By Way Of Stafford

Kempinski Hotels is back in London after two years away; the German hotelier has taken up the management of The Stafford Hotel. The 105-room, five-star hotel, which Britannia Hospitality acquired for £77.5 million last autumn, has been renamed The Stafford London by Kempinski. The hotel on St James’s Place, to the rear of The Ritz, will undergo renovation work that is due for completion by the end of 2011.

A Courtyard First And Second

The newly opened 278-room Courtyard by Marriott Stockholm Kungsholmen is the first hotel in Scandinavia to have the Courtyard by Marriott brand. Not only that, but the hotel in the Swedish capital Stockholm is also the largest Courtyard by Marriott hotel in Europe. This novel, large hotel is the latest product of a franchise agreement signed in 2007 by Marriott International and Scandinavian Hospitality Group. The second Courtyard by Marriott hotel in the UK will be the one at the mixed-use Manor Mill development in the city of Hull. Developer Manor Property Group has confirmed that the brand will be above the door of a 185-room hotel that is to be part of the £100 million development.

What’s Tall, Green And Lives In Denmark

The Crowne Plaza Copenhagen Towers. It certainly does. The 366-room hotel is 85 metres tall and it will feel ten feet taller (that’s an extra three metres) knowing that it is InterContinental Hotels Group’s first hotel in Denmark. And no matter how green other hotels in the Danish capital will be feeling at the height and majesty of the newcomer, they will be unlikely to be greener than the Crowne Plaza, which in its use of environmentally friendly technology is one of the world’s greenest hotels. Copenhagen Hotel Management, the Danish-owned hotel development and operating company, is operating the green giant under a 20-year franchise agreement.

A Mandarin For The Middle East

The Mandarin Oriental, Abu Dhabi will be Mandarin Oriental Hotel Group’s first hotel in the Middle East when it opens in 2013. The 160-room luxury hotel, an accompanying set of 35 serviced apartments and 50 Residences at Mandarin Oriental are to be developed by Tourism Development & Investment Company (TDIC) as part of TDIC’s Saadiyat Island. Saadiyat Island, which is due to be completed by 2020, is a 27 km² development that lies 500 m off the coast of the emirate of Abu Dhabi.

Uppsala Learns A Radisson Blu Is Coming

The city of Uppsala, in eastern Sweden, is noted for having the oldest university in Scandinavia. And here, up for a second visit, come two students of hospitality Rezidor Hotel Group and Winn Hotel Group; this time they are looking to graduate from a Park Inn and take a first class in Radisson Blu. The 176-room Radisson Blu Hotel, Uppsala, which is scheduled to open in 2012, is owned by Winn, which is the operator of Rezidor’s other hotel in the city, the 95-room Park Inn Uppsala.

Best Western Enters Ukraine

Best Western International has extended its reach in eastern Europe by opening its first hotel in Ukraine. Entering into the spirit of the history of the port of Sebastopol (Sevastopol), guests will doubtless soon be laying siege to the facilities at the Best Western Sevastopol Hotel. The building that the 106-room hotel occupies has a distinctive neoclassical façade and dates from 1952.

Gladen's Tidings

A Waldorf=Astoria hotel is to be opened in Seville (Alcalá de Guadaira) under the management of Hilton Worldwide. It is the first hotel of the Hilton luxury brand in Spain, and only the second in Europe after the Rome Cavalieri. The building taking the hotel is known as Hacienda La Boticaria, is 40,000 m² in area and has 160,000 m² of gardens in a ‘Seville style’. The hotel will have the biggest spa in Europe, a heliport, a golf course and a riding club. By Esther Gladen, HVS Madrid

Rezidor Reports Results For The Full Year

Rezidor Hotel Group has reported its results for the 12 months to 31 December 2009. Those results show a post-tax loss for the year of €28.2 million (compared to a profit of €26.1 million in 2008) and revenue of €677.2 million, which was down 13.7% on the previous year. Marketwide RevPAR was down 16.4% (like for like) at €62.90. Kurt Ritter, the company’s president and chief executive, noted that in the fourth quarter occupancy had reached 2008 levels but that rates had continued to decrease. “With limited visibility, it is still too early to assume this is the start of a recovery”, said Ritter.

Marriott International Gives Its Fourth-Quarter Results

JW Marriott, Jr, the chairman and chief executive of Marriott International, noted that the company’s fourth-quarter results for 2009 had “exceeded our expectations”. Reported income from continuing operations in the quarter was US$106 million, which compared to a loss of US$10 million in the final quarter of 2008. Revenue in the fourth quarter was down 10.5%, at approximately US$3.4 billion, and RevPAR at comparable company-operated properties worldwide was down by 12.2%. Marriott International declined to give any guidance for 2010, stating that the current economic and financial climate “continues to make predictions very difficult.”

Will You Be Figuring In The Fractional Summit?

Only 6/365ths of a year to go from the date of this newsletter until the start of the Fractional Summit. This event, an undoubted highlight of the first quarter of 2010, is the largest business-to-business fractional property conference in Europe. Among the experts waiting at the door to answer your questions will be Philip Bacon, the managing director (EMEA and Asia) of HVS Shared Ownership Services. He is on a panel undertaking “Live Fractional Practical Exercises” on day one (18 February) and the following day he will be moderating a panel taking questions on the future of fractionals. Further details may be obtained at www.fractionalsummit.com click here

The International Hotel Investment Forum 2010

The International Hotel Investment Forum opens at the InterContinental Berlin on 8 March. This year’s conference is the thirteenth in the series and to miss it would indeed be unlucky. Because if you don’t register now (see www.berlinconference.com for details click here) then you shun the premier event in the hospitality calendar: one which attracts the cream of the hospitality world. HVS will be there; and here for your convenience and diary are the dates and times when the HVS boys are on stage. Russell Kett (8 March, 2.45-3.15pm), moderating the session “The Trouble With Markets And The Consequences For Capitalism And A Discussion With Industry Leaders Of The Global Hospitality Real Estate Market”; Philip Bacon (9 March, 11.45am-1pm), moderating “Conversions – Reinventing Existing Properties Into New Products”; Charles Human (10 March, 11.45am-1pm), moderating “Management Contracts In Tough Times”. Tim Smith, director here at HVS London, will also be attending.

Absolute Share Price Performance Over the Past Week 4-11 February 2010

Starwood Hotels & Resorts - Friedman, Billings & Ramsey raised its target price from US$29 to US$35.

InterContinental Hotels Group - Baird raised its rating from 'Neutral' to 'Outperform'.

Marriott International - S&P Equity raised its target price from US$13 to US$17.

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