HVS EMEA Hospitality Newsletter – Week Ending 31 January 2014

The latest hospitality news for the EMEA region.

HVS Hodges Ward Elliott Represented Marriott On The Sale Of The Renaissance Barcelona

HVS Hodges Ward Elliott (HVS HWE) is pleased to announce that acting on behalf of Marriott International it has successfully arranged the sale of Marriott’s leasehold interests in the Renaissance Barcelona Hotel to an affiliate of the Qatar Armed Forces Investment Portfolio for around €78 million. Marriott will continue to operate the hotel under a long-term management contract. The 11-storey, 211-room hotel, which occupies a prime location at the heart of Barcelona, opened in April 2012 after extensive renovation, making it one of the finest upscale hotels in the city.

The Abba Queen’s Gate Hotel Sold

HVS HWE is also pleased to announce the recent sale of the Abba Queen’s Gate Hotel in Kensington off a guide price of £40 million. The 90-room boutique hotel was acquired by a private investor and will be operated independently. Christie & Co and HVS HWE acted as joint agents for the seller, Mazabi Gestión de Patrimonios.

Asset Number Nine For Internos’ Hotel Real Estate Fund

Internos Global Investors has acquired the Maritim Hotel & International Congress Center in Dresden, southeast Germany, from a real estate fund (rumoured to be Immoselect) managed by AXA Investment Managers for €49 million. The deal is Internos’ ninth acquisition for its Hotel Real Estate Fund, and, according to Jochen Schäfer-Suren from Internos’ Hotel and Leisure division, the group has more acquisitions in progress. The four-star hotel, on the River Elbe, is operated by Maritim under a long-lease agreement. Directly linked to the International Congress Center Dresden by an underground walkway, the 328-room hotel opened in 2006 in a listed, former warehouse and distribution centre that was constructed at the beginning of the 20th century.

Industry Veteran In The Stocks

Jim Cockell, a former strategy director with InterContinental Hotels Group, has purchased an 18-room hotel in south England’s Cotswolds region. Mr Cockell, who acquired the Old Stocks Hotel in Stow-on-the-Wold for an undisclosed sum, now intends to carry out a renovation of the property over the next 12 months.

Meliá’s Third Foray INNSIDE Madrid

Meliá Hotels International’s design-oriented business brand INNSIDE has opened its third hotel in Madrid, Spain. The 127-room INNSIDE Madrid Suecia is the conversion of an existing building in the city’s Cortes district. Originally built in the 1950s, the two-storey hotel was once the home of American writer Ernest Hemmingway. Meliá now has 12 INNSIDE hotels in operation (nine across Germany and three in Madrid). Over the next two years, the brand is set to expand with a further eight properties, including its UK debut this Autumn with a 208-room hotel in the city of Manchester for an investment of £25 million, which is to be part of the 20-acre First Street mixed-use development.

HVS At Henry Stewart Conference In March

Tim Smith, director of valuations at HVS London, is speaking at Henry Stewart’s Hotel Operating Agreements briefing on Tuesday 25 March at Le Méridien Piccadilly in London. Henry Stewart is offering HVS subscribers a 50% discount on the registration fee, which reduces the cost per delegate to £249.50 plus VAT. To book online by credit card, click here and insert the discount code HVS50 when prompted to receive your 50% discount. If you would like to be invoiced, please email dawnb@henrystewart.co.uk and provide the following information: the full name, position and email address for all delegates; the title of the conference; your company’s full name and address for the invoice; the name of the person making the booking, if different from the delegate(s); and don’t forget to include the HVS50 discount code. For more information and a full agenda, visit www.henrystewartconferences.com.

Marriott Gets Its Skis On In Sochi

Marriott International has opened its first hotel in the Russian city of Sochi, the host of this year’s Winter Olympic Games. The Sochi Marriott Krasnaya Polyana Hotel is in Sochi’s Gorky Gorod ski resort, in the foothills of the Caucasus Mountains. The seven-storey, 428-room hotel is a product of franchise agreements signed with NBB Development CJSC at the beginning of 2012 for three Marriott hotels in Sochi. The hotel is being operated by Interstate Management Services, an affiliate of Interstate Hotels & Resorts. Marriott now has 16 hotels across Russia overall under four different brands.

Rezidor Bringing Radisson Blu To Hull

Carlson Rezidor Hotel Group is to make its first appearance in the port of Hull, northeast England. The group has got together with local property company Manor Property Group to develop the new-build Radisson Blu Hotel Kingston upon Hull. The 168-room hotel will be part of the £100 million Manor Point mixed-use development, which aims to regenerate an area of the city on the east bank of the River Hull. The hotel is due to open near the end of 2016. “The United Kingdom is a key mature market for us, and we are delighted to bring our core brand Radisson Blu to Kingston upon Hull which will be the UK’s City of Culture in 2017,” commented Wolfgang Neumann, Rezidor’s president and chief executive officer.

Crowne Plaza Celebrates Its Serbian Debut

InterContinental Hotels Group (IHG) has opened its first Crowne Plaza property in Serbia: the 416-room Crowne Plaza Belgrade, which, with a total of 1,300 m² of meeting space, reportedly has the largest hotel ballroom in Serbia. IHG is not a stranger to this particular hotel, however, as it was operated as an InterContinental property from when it originally opened in 1979 to 2006. After purchasing the property in 2008, Belgrade-based Delta Holding signed a new management agreement with IHG, restored the building’s 35-year-old glass-panelled façade and transformed the hotel’s interior to bring it in line with Crowne Plaza standards.

Hyatt Place Pops Up In Amsterdam And Promises London It’s On Its Way

Hyatt Hotels Corporation announced that it is bringing its Hyatt Place brand to Heathrow Airport in London, marking the brand’s debut in the UK. One of the group’s affiliates has signed an agreement with Magill Investments Ltd for the 170-room Hyatt Place London Heathrow/Hayes, which is scheduled to open in spring 2015, becoming Hyatt’s fourth hotel in the UK overall. Continuing its expansion in Europe, Hyatt Place also made its first appearance in the Netherlands this week with the opening of the Hyatt Place Amsterdam Airport. The 330-room hotel is located in Amsterdam’s Hoofddorp area.

Saudi Arabia’s Second Marriott Holds Court In Jazan

Saudi Arabia got its second Marriott-branded hotel this week with the opening of the Courtyard by Marriott Jazan. The 129-room hotel is Marriott International’s first property in the city of Jazan, in the southwest of the kingdom. The six-storey hotel, owned by Abdul Rahman bin Saad Al Rashid & Sons, is directly connected to Al Rashid Mall in Jazan city centre.

Muscat A Must For IHG

InterContinental Hotels Group (IHG) has opened its third property in Oman’s capital, Muscat. The Holiday Inn Muscat Al Seeb, in the city’s new business district, has 185 rooms and is the second Holiday Inn hotel in Muscat.

A New Chief For Rotana

Omer Kaddouri has become the new president and chief executive officer of Abu Dhabi-based Rotana Hotel Management, following in the footsteps of Selim El Zyr who ran the company since 1992, when he co-founded Rotana with Nasser Al Nowais, the current chairman. “Rotana has over the past few years proved that it can migrate its successful brand and operation formula to regions beyond the Middle East,” said Mr Al Nowais. “We will continue to push ahead in exciting new markets such as South East Asia, Eastern Europe and Africa,” he continued. Mr Kaddouri has worked for Rotana for 15 years and most recently held the post of executive vice president and chief operating officer. Guy Hutchinson is moving to Rotana from Hilton in India to take over the position of chief operating officer.

FRHI Targets 50% Growth In Five Years

FRHI Hotels & Resorts, the parent company of the Raffles, Fairmont and Swissôtel luxury and upper upscale brands, has set an aggressive expansion target of 50% growth over the next five years. In 2014, the group will open seven hotels (with a total of more than 1,300 guest rooms), six of which are in the EMEA region. Look out for the 166-room Swissôtel Sochi Krasnaya Polyana and the 203-room Swissôtel Sochi Kamelia, both due to open in Sochi, Russia, before the start of the 2014 Winter Olympic Games; the 66-room Swissôtel Bodrum Beach in Turkey; the 287-room Fairmont Riyadh, Business Gate in Saudi Arabia; the 252-room Fairmont Ajman in the UAE; and the Raffles Istanbul, in Turkey, which with 130 rooms and 51 suites will be part the Zorlu Center mixed-use project.

More Corp Al Khoory For Dubai

Dubai-based Hospitality Management Holdings has signed an agreement with Mohammed Tayyeb Khoory and Sons to operate a new hotel in Dubai under its Corp brand. The 228-room Corp Al Khoory Hotel in Al Barsha is expected to open during the first quarter of 2016. This is the third agreement the group has signed with the Khoory family in the emirate – it already manages the 140-room Coral Al Khoory Hotel Apartments – Dubai and the 208-room Corp Executive Al Khoory Hotel – Al Wasl.

Starwood’s First Mauritian Westin To Hatch On Turtle Bay

Starwood Hotels & Resorts’ Westin chain is to make its first appearance on the island of Mauritius this spring with the opening of the Westin Turtle Bay Resort & Spa. Owned by Blue Ocean Park Ltd, the 190-room resort is being developed on the beachfront of Mauritius’s northwest coast, in the Turtle Bay of Balaclava, former nesting grounds of the island’s protected green sea turtle.

Protea Number Four For Lusaka

This April, South African group Protea Hotels is due to open its fourth property in Zambia’s capital, Lusaka. The nine-storey, 137-room Protea Hotel Lusaka Tower will be part of the mixed-use complex housing the Arcades shopping centre. Protea plans to expand its presence in Lusaka, and Zambia overall, significantly over the next five years. “Lusaka is a vibrant capital from which much of the country’s economic growth prediction of more than 6% for 2014 will stem. It has become one of Africa’s top business centres and the investment in hospitality infrastructure reflects that,” said Danny Bryer from Protea.

Absolute Share Price Performance Over the Past Week – 23-30 January 2014

Rezidor Hotel Group – UBS increased the share target price to SEK50 from SEK41.50 and kept its "buy" rating.

Accor – The stock's open interest increased by 0.1% from 12,802 to 12,813.

Marriott International – RW Baird increased its share price target to US$52.

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