HVS EMEA Hospitality Newsletter – Week Ending 9 March 2012

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

Sale Of A Scottish Castle

The 29-room Dalhousie Castle near Edinburgh, Scotland, is reported to be the latest former von Essen hotel to be sold. The hotel, housed in a 13th-century castle on the banks of the River Esk, was on the market for £5 million and is rumoured to have been purchased by hoteliers Robert and Gina Parker.

Wyndham Grand For Sale In London

Dublin-based Harcourt Developments has put the all-suite Wyndham Grand hotel, at Chelsea Harbour, in London on the market for £80 million. The 158-suite, purpose-built hotel has just emerged from an extensive refurbishment by Wyndham Hotels and Resorts, which holds a 20-year management contract for the five-star property. Harcourt purchased the hotel for £63 million in 2006.

Super 8 On Its Way To Germany

Almost a year ago at the 2011 Hotel Investment Forum, Wyndham Hotel Group announced the debut of its Super 8 budget brand in Europe after signing a development agreement for ten hotels in Poland. At this year’s forum, history seems to be repeating itself as the US-based group has announced further expansion for the brand with the signing of a development agreement with Berlin-based Tristar Hotel Management GmbH and Colliers Hotel GmbH for a minimum of ten Super 8 properties across Germany over the next five years.

Holiday Inn’s Express Expansion

InterContinental Hotels Group (IHG) also announced a partnership with Tristar Hotel Management GmbH this week. The two groups have formed a multi-development agreement which will result in 15 new Holiday Inn and Holiday Inn Express hotels across Germany by 2020. The first fruit of this agreement will be the 217-room Holiday Inn Berlin O2 World, which is scheduled to open in summer 2014 in Germany’s capital.

More Hyatts For Russia And Switzerland

An affiliate of Hyatt Hotels Corporation has signed a management agreement with Russian company VTB Arena Park for the group’s second hotel in Moscow: the 297-room Hyatt Regency Moscow, which is expected to open in 2015 as part of the city’s mixed-use Arena Park Development. Hyatt now has two hotels in operation in Russia and four in the pipeline. Hyatt also announced two new properties for Switzerland this week. The group signed a management agreement with airport operator and manager Flughafen Zürich AG for the 250-room Hyatt Regency Zürich Airport and the 300-room Hyatt Place Zürich Airport. Both hotels are due to open in 2017 and will be part of The Circle, a mixed-use service hub and commercial centre at Zürich International Airport. Hyatt currently operates one other hotel in Switzerland (the 142-room Park Hyatt Zürich).

DoubleTree Number Five Sprouts Up In London

The former Hesperia London Victoria, opposite London Victoria Station, has been rebranded as the DoubleTree by Hilton London-Victoria, becoming Hilton Worldwide’s fifth DoubleTree hotel in London and its 16th in the UK. The 225-room hotel, which underwent a refurbishment to DoubleTree brand standards, is owned by Crimson Hotels Group and operated by Victoria Hotel Ltd. “We are very excited to work with DoubleTree by Hilton and Hilton Worldwide on this project and we believe that there has never been a better time to invest in hotels in London,” said Crimson Hotels Group’s chief executive officer, Aly Kassam. “We have transformed another great hotel asset into a luxurious, yet affordable retreat in the heart of the capital,” he added. The independently owned hotel group now owns two DoubleTree properties in the UK capital and 12 hotels in total across the UK, Portugal and Dubai.

25 New Stars For Europe

Starwood Hotels and Resorts has announced that it aims to open 80 hotels worldwide in 2012. In Europe, the group plans to open 25 hotels over the next four years. “Even against a backdrop of uncertainty, Starwood’s pipeline of both managed and franchised deals for all nine brands in Europe is healthy and expected to grow in 2012,” said Simon Turner, Starwood’s president of global development. “Eastern and Central Europe are particularly fertile ground for growth, primarily with new-build properties, while we see numerous ongoing conversion opportunities in established markets throughout Europe,” he added.

50% Discount For HVS Newsreaders At Henry Stewart Conference

It’s less than two weeks until Henry Stewart’s one-day conference Latest Thinking on Hotel Operating Agreements takes place at the Radisson Blu Portman Hotel, in London on 21 March. If you haven’t already got your ticket click here to book your space. Don’t forget to insert the discount code HVS when prompted for your 50% discount. HVS director Tim Smith, from the London office, will be speaking at the event. You can catch Tim’s presentation “Where leases work best and the investment values they create” in the afternoon at 3.50pm. For more information visit www.henrystewartconferences.com.

More Mövenpicks For Egypt

Mövenpick Hotels & Resorts is to expand its operations in Egypt by opening three new resorts on the country’s Red Sea coast in 2012. First, the group took over the management of the Mövenpick Resort Hurghada on 5 March; this 252-room resort is Mövenpick’s first property in Hurghada. Next, Mövenpick will make its return to the resort of Sharm El Sheikh on 8 April with the opening of the 298-room Mövenpick Resort Sharm El Sheikh – Naama Bay. And finally, the group will make its debut in Abu Soma, 45 km south of Hurghada, later this year with the 424-room Mövenpick Resort Abu Soma.

A New Associate Director For HVS Executive Search

HVS Executive Search recently promoted Thomas Mielke, from HVS’s London office, to Associate Director. Thomas, who joined HVS Executive Search in 2008, has also joined the company’s Partnership Track programme. Congratulations to Thomas, who is the co-author of HVS’s annual European Corporate Governance Study and also helped establish its biennial review of chief executive officer turnover at the world’s 50 largest hotel companies. “Thomas is a credit to HVS and has developed his reputation as a top flight-search consultant in the world of hotel operations and real estate. He is a well rounded consultant whose value to a client extends beyond pure recruitment into performance management, compensation advisory and other talent issues,” said Chris Mumford, HVS Executive Search’s president for Europe, the Middle East and Africa.

Departures At MWB Group Holdings

Six months after he resigned as chief executive of De Vere Group, Richard Balfour-Lynn has announced that as of 21 March 2012 he will step down from his post of chief executive and director of MWB Group Holdings, the company he founded in 1982 as Warwick Balfour Properties. “This has been a hard decision for me as I have been with MWB Group for most of my working life. I will remain a committed and supportive shareholder and have every confidence in both the board of MWB Group and the management teams to take the group to the next stage of its development,” said Mr Balfour-Lynn.

Gladen’s Tidings

The news from Spain by Esther Gladen, Business & Market Intelligence Analyst, HVS Madrid. New hotel to open in Madrid this spring: the future Art Trip Hotel is located in the heart of the city, close to the Golden Triangle and Atocha train station. The property is still undergoing refurbishment and will have 17 rooms. The opening is scheduled for late spring 2012.

Absolute Share Price Performance Over the Past Week – 1-8 March 2012

Meliá Hotels International – Meliá dropped to a one-month low, a two-day fall of 5.3% on firm volume.

Accor – Accor slumped 6.2% on low volume.

NH Hoteles – NH dropped 4.0% on high volatility.

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 – HVS London (@russellkett)rkett@hvs.com
Charles Human, Managing Director – HVS Hodges Ward Elliottchuman@hvshwe.com
Tim Smith, Director – HVS Londontsmith@hvs.com
Chris Martin, Director – HVS Hodges Ward Elliottcmartin@hvshwe.com
Demetris Spanos, Managing Director – HVS Athensdspanos@hvs.com
Hala Matar Choufany, Managing Director – HVS Dubaihchoufany@hvs.com
Christopher Mumford, Managing Director – HVS Executive Search (@ChrisMumford)cmumford@hvs.com
Philip Bacon, Managing Director – HVS Madrid and Managing Director, EMEA & Asia – HVS Shared Ownership Servicespbacon@hvs.com
Saurabh Chawla, Director – HVS Asset Management and Strategic Advisoryschawla@hvs.com
Louise Fury, Senior Editor and EMEA Hospitality Newsletter Author – HVS Londonlfury@hvs.com