HVS EMEA Hospitality Newsletter – Week Ending 15 November 2013

The latest hospitality news for the EMEA region.

Marriott Moves Into Sarajevo

Marriott International has plans to make its first move into the Bosnia-Herzegovina hotel market with a franchise property. The 75-suite Residence Inn Sarajevo is due to open in the country’s capital near the end of 2014. The hotel, owned by SEIC Hospitality, will be managed by US-based group Interstate Hotels & Resorts. Near to Sarajevo’s Old Town, the hotel will become the first internationally branded property in Bosnia-Herzegovina. “As an evolving business destination, Sarajevo is a perfect fit for our Residence Inn Brand,” said Amy McPherson, Marriott’s president and managing director for Europe.

Bond Building To Become A Hotel

London-based Soho House and New York-based hotel owners and developers Sydell Group have got together to lodge plans with the City of London Corporation for a 255-room hotel in 27 Poultry, the Grade I-listed former headquarters of Midland Bank. James Bond fans will be pleased to know that the building’s iconic vault (the Lutyens Safe Deposit), which was featured in the 1964 James Bond film Goldfinger, is to be transformed into a bar that will be open to the public. Consent was previously given for a 183-room hotel on the site, but this new project is expected to make the entire building accessible to the public for the first time. Sydell Group will develop the hotel and Soho House, which agreed a lease on the 310,000 ft² building in December 2012, will operate it.

A ‘Neu’ CEO For Azimut

Walter Neumann has been appointed as the new chief executive officer of Russian group Azimut Hotels. Neumann joins the group from Rocco Forte Hotels, where he was general director at the Astoria Hotel in St Petersburg. Commenting on his new post, Neumann said, “My work will be focused on maintaining a steady pace of development for the company through a large-scale renovation programme for all the hotels in the Azimut chain and a series of new hotel projects currently under development in Russia and Europe.” Founded by Russian investor Alexander Klyachin in 2004, Azimut Hotels expanded further into Europe with the purchase of the Austrian Hotel Company portfolio (20 hotels across Germany, Austria and the Czech Republic) by Central European Hotel Investment Company (also owned by Klyachin) in 2008.

Novotel Tally Up To Five In The UAE

This week saw Accor increase its Novotel portfolio in the UAE up to five, raising the brand’s presence in the Middle East region overall to 13 hotels. The 465-room Novotel Al Barsha opened in Dubai city centre, on Sheikh Zayed Road. The 41-storey hotel, which is owned by API Hotels and Resorts, also has five restaurants and bars, banqueting and meeting facilities and a spa.

An African Expansion On The Horizon For Sheraton

Starwood Hotels & Resorts is expanding its Sheraton brand across Africa with three new signings. The 282-room Sheraton Conakry Hotel is scheduled to open in 2015 in the Republic of Guinea, West Africa; owned by Palma Guinea SA, the hotel is to be developed in the Kipe district of Guinea’s capital, Conakry. The Sheraton Juba Hotel, owned by Tuscana National Ltd, will become the first internationally branded hotel in the Republic of South Sudan when it opens in Juba in 2015, on the banks of the Nile. Finally, Nouakchott, the capital of Mauritania in northwest Africa, will get its first internationally branded hotel in 2017 with the opening of the Sheraton Nouakchott Hotel. This new-build development is owned by Société Nationale Industrielle et Miniére.

A New Hue Adds Colour To Sharjah

Hues Hotel Management has opened a second hotel, doubling its portfolio of hotels in operation in the UAE. The H72 in the emirate of Sharjah has been developed in a former residential building at the edge of the Albuhayra Corniche. The all-suite hotel, which is named after the number of guest suites it contains, joins its sister property, the 103-room Hues Boutique Hotel, which opened last year in Dubai. Hues won’t be a two-hotel company for long, however, as the group intends to open more hotels in the UAE in the near future.

A 9.3% Jump In Operating Profit For Meliá

Meliá Hotels International achieved an operating profit of €201.3 million for the first nine months of 2013, an increase of 9.3% on the same period last year. Net profit fell by 33.6% to €25.4 million, owing to the accounting of financial costs of €20  million linked to the convertible bond issue, the greater capital gains in 2012 and hyperinflation in Venezuela. The group’s ME by Meliá hotels in Europe reported strong RevPAR growth of 24%, owing mainly to the consolidation of the ME London after nine months of operation. Meliá said that it maintained a positive outlook for 2014. “Company results were affected by extraordinary financial items in the period but which in no way affect company strategy nor its ability to generate constant improvements in the results of the hotel business,” said Gabriel Escarrer, Meliá’s chief executive officer and vice president.

RevPAR Rises At NH

Although NH Hoteles recorded a loss of €10 million for the first nine months of 2013, this result was a 79.3% improvement on the same period in 2012. The group’s RevPAR returned to growth in the third quarter of the year, as NH completed its financial restructuring. RevPAR recorded like-for-like growth in each of the last five months, with hotels in central Europe and Italy reportedly achieving strong results.

Absolute Share Price Performance Over the Past Week – 7-14 November 2013

InterContinental Hotels Group – Increased 1.4% on below-average volume.

Accor – Increased on low volume.

NH Hoteles – Share prices fell in four of the last five days.

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