Global Hospitality Report (October 26, 2015)

2015 Canadian Hotel Valuation Index 
By Tamsin Venter and Monique Rosszell

The HVS 2015 Canadian Hotel Valuation Index (HVI) not only releases countrywide hotel values for 2014 but also projects the direction of these values through 2018.

Room Service or is it Food Delivery? 
By Kirby Payne

Room service should be more than just food delivery. This article has reminders for full service hotels and ideas for limited service hotels.

Record-Breaking Sale of Non-CBD Hotel in New Zealand 

Auckland-based private hotel owner CP Group has acquired the 247-room Novotel Ibis Ellerslie hotel for a record NZ$55 million (US$37.2 million). This is the largest hotel transaction in the country since the sale of the Hilton Auckland in 2012 and has set a new benchmark for sale prices of hotels outside the CBD area. New Zealand hotels are increasingly attracting investor interest due to their high level of return, with year-on-year RevPAR growth of 10 to 15% in many New Zealand tourism centers – higher than major cities in Australia, such as Melbourne and Sydney. From January to September 2015, New Zealand saw more than NZ$200 million (US$135.3 million) in hotel sales – up by a staggering 500% as compared to the same period last year. Furthermore, New Zealand continues to gain popularity as a tourism destination, as the New Zealand dollar hit its six-year low against the US dollar earlier this September. The country welcomed 3 million visitors between January and August, a 7.8% increase over the previous 12 months.

AccorHotels Purchases 43-Property Hotel Portfolio  

AccorHotels has acquired a portfolio of 43 hotels across France from Foncière des Règions for €281 million. AccorHotels has operated the hotels in the portfolio under variable leases since 2005 and 2007 as ibis budget, ibis, Novotel, Mercure, Pullman and Sofitel properties. The transaction is expected to close during the first half of 2016; however, owing to a substitution clause for the buyer, Accor's HotelInvest division will integrate the properties into its asset management programme immediately. "This transaction represents an important new step in the process of optimizing HotelInvest, Europe's leading hotel investor in the economy and midscale segments," said Accor's Chief Executive Officer, Sébastien Bazin.


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