HVS EMEA Hospitality Newsletter – Week Ending 26 July 2013

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

Three New Signings For IHG

InterContinental Hotels Group (IHG) took a tour of Europe this week that saw it paint the skies purple in Paris as it introduced its first Indigo hotel to the city, swing by Rome to drop off Holiday Inn number three for the Italian capital and announce its third InterContinental property for London. Starting in the UK, IHG became part of the regeneration of the Greenwich Peninsula in south London, home to the O2 arena, when it announced plans to open the 452-room InterContinental London The O2 in summer 2015. The 19-storey hotel, which is part of a £121 million mixed-use project including 100 serviced apartments and retail, business and residential property, will be operated by Arora Hotels. In Rome, the group signed a franchise agreement with Roma Ovest that will see an existing hotel undergo a conversion to reopen as the 229-room Holiday Inn Rome Pisana in the fourth quarter of 2013. The last stop was Paris, where IHG signed a management agreement with Société Foncière Lyonnaise for the 57-room Hotel Indigo Paris – Opera, which is to be a refurbishment and rebrand of an existing property and is due to open in 2014.

Radisson Blu Makes It To Mannheim

Carlson Rezidor Hotel Group has got together with Mannheim-based hotel developer and operator ARIVA Hotel GmbH to bring the southwest German city its first Radisson Blu. The 225-room Radisson Blu Hotel Mannheim is being developed as part the city’s €300 million, 28,000 m² mixed-use Q6 Q7 urban redevelopment project. The new-build hotel is expected to open in 2016. Rezidor currently operates two Park Inn properties in the city.

Poland Gets Its First DoubleTree

Hilton Worldwide’s DoubleTree brand made its debut in Poland with the opening of the DoubleTree by Hilton Lodz. The 200-room hotel, in the country’s third-largest city, Lodz, pays homage to Poland’s cinematic history; the new-build property, which is owned by Polish conglomerate TOYA Group, was constructed on the site of the city’s former Dream Factory film studios and its design includes scenes from Polish films. “We cherish the opportunity to offer our guests unique hotel characteristics and immerse them in local culture,” said John Greenleaf, the brand’s global head. Hilton operates nine hotels in Poland overall, and has a further 11 in its development pipeline for the country. Additionally, Hilton is rumoured to be close to completing a deal with developer MR Group to manage a DoubleTree by Hilton hotel in the 130,000 m² Actor Galaxy residential complex in Sochi, on Russia’s Black Sea coast.

Travelodge Rydes Onto The Isle Of White…

Travelodge has signed a deal with CHG Holdings to open its second hotel on the Isle of White, off the southern coast of England. The 41-room hotel is to be developed in the island’s biggest town, Ryde, at a cost of £2.2 million. The hotel is expected to open in spring 2014, joining the 49-room Travelodge Newport Isle of Wight Hotel.

…And Grant Hearn Hangs Up His Hat

Travelodge also announced this week that its chief executive, Grant Hearn, is stepping down after ten years with the budget chain. “It’s the right time for me and the business,” commented Hearn, who was managing director for Hilton UK & Ireland before he joined Travelodge in 2003. “Ten years is a long time. The next phase of development needs four more years and the question I had to ask myself was ‘Could I see myself doing 14 years?’”, he added. Hearn, who headed last year’s financial restructuring and a £57 million investment to reinvent the group’s guest rooms, has said that he will stay on with Travelodge until a successor has been found.

Waldorf Astoria Arrives In The UAE

On 1 August 2013, the opening of the Waldorf Astoria Ras Al Khaimah in the emirate’s Al Hamra Village development will mark the first appearance of Hilton Worldwide’s luxury brand in the United Arab Emirates. The 346-room resort will also include a 350 m strip of private beach, an 18-hole championship golf course, a spa and ten food and beverage outlets.

A New Brand Of Tulip For Egypt

After previous attempts to introduce its Royal Tulip brand to the Middle East and North Africa, Golden Tulip, part of Louvre Hotels Group, has finally made its Royal debut in the MENA region in Alexandria, Egypt. In partnership with the Armed Forces of Egypt, the group has opened the Royal Tulip Alexandria. The 477-room hotel is on the city’s Corniche, overlooking the Mediterranean Sea. The new hotel has become Golden Tulip’s second hotel in Egypt overall, alongside the 130-room Golden Tulip Flamenco Hotel in Cairo.

Sarovar’s Second Hotel In Kenya

Indian hotel management company Sarovar Hotels has announced its third hotel for Africa, and its second in Kenya. The 144-room Premiere is scheduled to open in the Embakasi district of Nairobi in 2015. “India is increasingly showing interest in Africa as a market and we too are of the belief that Africa has huge potential in the hospitality segment,” said Anil Madhok, Sarovar’s managing director. As well as the two African properties currently in operation, which represent Sarovar’s first forey into international markets, the group manages 60 hotels across India.

Oetker’s Island Hotel

German group The Oetker Collection has opened a new hotel, bringing its portfolio of luxury five-star properties up to seven. The newest addition to the Oetker family is a hotel with a difference! Fregate Island Private includes 16-residences, a spa, a yacht club and other leisure and food and beverage facilities all located on a private island at the heart of the Seychelles, in the Indian Ocean. Guests can even hire the entire island. It’s not just for human habitation, however, as the island is also home 2,000 free-roaming Aldabra Giant Tortoises, the second largest population of these tortoises in the world. The collection’s eighth property, the 54-room L'Apogée Courchevel, is due to open at the end of the year in the French alpine ski resort of Courchevel.

No News Next Week

Dear readers, please note that there will be no newsletter next week. We will next appear in your inboxes with the latest headlines on Friday 9 August.

Absolute Share Price Performance Over the Past Week – 18-25 July 2013

InterContinental Hotels Group (IHG) – IHG was cut to "neutral" from "outperform" by Exane BNP Paribas.

NH Hoteles – NH climbed 5.1% on robust volume.

Whitbread – Whitbread increased 2% on weak volume.

For the latest in the hospitality industry, please visit: http://www.hvs.com. You are also welcome to contact the following personnel.

Russell Kett, Chairman – HVS London (@russellkett)rkett@hvs.com
Charles Human, CEO – HVS London/HVS Hodges Ward Elliottchuman@hvshwe.com
Chris Martin, Director – HVS Hodges Ward Elliottcmartin@hvshwe.com
Tim Smith, Director – HVS Londontsmith@hvs.com
Arlett Oehmichen, Director – HVS Londonaoehmichen@hvs.com
Sophie Perret, Director – HVS Londonsperret@hvs.com
Demetris Spanos, Managing Director – HVS Athensdspanos@hvs.com
Hala Matar Choufany, Managing Director – HVS Dubaihchoufany@hvs.com
Louise Fury, Senior Editor and EMEA Hospitality Newsletter Author – HVS Londonlfury@hvs.com