HVS EMEA Hospitality Enews - Week Ending 16 April 2010

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

Formosa Closes In On Regent Deal

Carlson and Rezidor Hotel Group have agreed that Formosa International Hotels Corporation (FIHC) may acquire, subject to the usual conditions, the whole business of the Regent luxury hotels. It is thought that the conditions will be satisfied within the next month. FIHC is the original owner of the Grand Formosa Regent Taipei, in Taiwan, which was opened 20 years ago by Robert Burns, Adrian Zecha and George Raphael, the founders of the Regent brand. Rezidor, which stands to make €9.5 million from the proposed deal, is expected to continue managing Regent hotels in the EMEA region.

A First Shangri-La For Turkey

Turkish conglomerate Tanriverdi Holding has signed up Shangri-La Hotels and Resorts to manage what will be the Shangri-La Hotel, Istanbul when it opens in April 2012. The 200-room hotel, which will occupy the site of a former tobacco warehouse in the Beşiktaş district of Istanbul, will cost a reported US$250 million to build. Seven of the hotel’s 14 storeys will be below ground so that the façade of the 1930s warehouse may be preserved.

Scandic Stationed In Finland

Scandic already has two hotels in the city of Tampere, and come 2012 the company will be opening a third. The Scandic Tampere Station, will, as its name hints at, be built close to the railway station in Tampere, in the southwest of Finland. Building work on the 207-room hotel is due to start this August, and trowels will be placed in the hands of Finnish construction group Lemminkäinen. Scandic, which last month expressed its desire for continued expansion in Finland, signed a contract on the hotel with VR Pension Fund.

Sowwah So Good For Four Seasons

Sowwah Island is at the heart of the new Central Business District in the emirate of Abu Dhabi and its development is in the hands of Mubadala. There are 105 hectares of land to fill on the island, and Mubadala has ensured that a portion will be occupied by the Four Seasons Hotel Abu Dhabi at Sowwah Island. This hotel, a first for Four Seasons Hotels and Resorts in the United Arab Emirates, is expected to open in 2013 and have around 200 rooms and 125 residences.

A First Premier Inn For Abu Dhabi

The first Premier Inn hotel in the United Arab Emirates opened two years ago this very month; perhaps in celebration of the second anniversary, what is now the fourth Premier Inn in the country is being built in Abu Dhabi. The 242-room hotel, which will cost a reported Dh120 million (roughly US$33 million) to build, will be part of the mixed-use development Capital Centre and should be ready by September 2011.

Interval In The Saddle At Horse Country Resort

Interval International has taken a canter over to the island of Sardinia to affiliate the Horse Country Resort. The resort’s focus is on all things horse; but the guests are human, and the two-legged are accommodated in the resort’s selection of timeshare units or perhaps in one of the three 100-room hotels onsite. The resort is enveloped by pine forest and has access to a six-mile stretch of beach.

Gladen's Tidings

The five-star hotel Dunas La Canaria will be the first Radisson Blu in the Canary Islands; it will be named the Radisson Blu Residence Gran Canaria and will be located in Arguineguín, Mogán, on the southwest coast of the island. An investment of €25 million by Dunas Hotels & Resorts will ensure that the hotel meets the standards of Rezidor, by converting the existing 249 rooms into 144 larger accommodation units. This investment has been advanced by the Norwegian Wenaasgruppen, which will take over the property in 2012. The intention of Wenaasgruppen is to run the hotel as a condominium hotel, managed by Radisson, although Dunas Hotels & Resorts might keep some of the apartments for outright sale. The last hotel asset of the Management Group controlled by David Stein, Gran Hotel Son Net, in Puigpunyet, Majorca, is on the market at a starting price of €35 million. The five-star luxury hotel has 24 rooms and seven suites and was part of Franklyn Hotels until the end of 2009. Only one month after the opening of Holiday Inn Bilbao, IHG is expanding its portfolio in the Madrid area. Next May, the 80-room, three-star Holiday Inn Leganés will open, after an investment of €9 million by the owner Área Reyes, which is also operating the hotel. Meanwhile, with the opening of the 100-room Ibis en Ripollet, Accor now has ten establishments in Barcelona and 40 in Spain. It will open another two hotels, in Mataró and Mollet, shortly. Fiesta Hotel Group, part of the Matutes Group of Companies (GEM) now owns the building of the Ayre Hotel in Seville. The group bought the hotel from Pontegadea, a company owned by the owner of Inditex, Amancio Ortega. The four-star hotel has 241 rooms and is located opposite the AVE railway station Santa Justa. The buyers will pay the purchase price on a real estate leasing basis. With this acquisition Fiesta Hotels Group has now achieved its target to be present in the four most important Spanish cities, Madrid, Barcelona, Seville and Valencia. By Esther Gladen, Business and Market Intelligence Analyst, HVS Madrid

Rezidor Reports Its First-Quarter Results

Rezidor Hotel Group has reported its results for the first quarter of 2010. Like-for-like marketwide RevPAR felt the continued pressure put on room rate by slipping slightly, by 0.1%, to finish on €54.60. Revenue was up by 8.6%, to €165.7 million, and there was a narrowing in losses after tax from €19.2 million to €17.7 million.

Save Money The HVS Enews Way

HVS EMEA Enews can no longer be regarded solely as something you wrap your chips up in on a Friday night. To this newsletter’s excellent insulating properties can now be added a new strength – that of a money saver. That’s right. The hospitality world’s favourite greaseproof paper can save you, dear reader, £100 on your ticket to The Henry Stewart 2010 Briefing entitled “How Much Is My (That) Hotel (Or Interest In A Hotel) Worth?”. Simply mention when you book that you are a reader of HVS EMEA Enews and the discount is yours. Plenty of big fish will be there at Le Méridien Piccadilly, London, on 25 May. Russell Kett, the managing director of HVS London, is moderating a panel addressing hotel lending, and Sophie Perret, associate director at HVS London, will be speaking on aspects of valuation, including a new model created by HVS. Further details of the one-day event are available at www.hsconferences.com click here

Absolute Share Price Performance Over the Past Week 8-15 April 2010

NH Hoteles - The company was ranked among the top 100 most reliable local companies in Merco 2010: an index that measures the reputation of Spanish companies.

Whitbread - UBS placed a 'Buy' rating and raised its target price from 1,570p to 1,630p.

Accor - The share price fell slightly after Goldman Sachs reiterated its 'Neutral' rating. Goldman Sachs did, though, raise its target price from €40 to €42.

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
Tim Smith, Directortsmith@hvs.com
Demetris Spanos, Managing Director – HVS Athensdspanos@hvs.com
Hala Matar Choufany, Managing 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
Adrian Jones, EMEA Hospitality Enews Authorajones@hvs.com