HVS EMEA Hospitality Newsletter - Week Ending 16 July 2010
Posted
Friday July 16, 2010
The latest hospitality news from Europe, the Middle East and Africa
Louvre Hotels has put its entire 1,549-room UK portfolio on the market for a reported £70 million. The group’s 18 hotels in the UK are a mix of freehold and long leasehold sites comprising 17 Campanile properties and one Premiére Classe hotel in the cities of Cardiff in Wales, Glasgow in Scotland and Birmingham, Liverpool and Manchester in England.
UK budget chain Travelodge has signed a 25-year lease deal with Mitchells & Butlers (M&B) to operate 52 Innkeeper's Lodges (1,994 rooms). The hotels are all adjacent to M&B's restaurants and pubs and will increase Travelodge's portfolio to 452 hotels across the UK, Ireland and Spain. Travelodge now plans to invest £10 million in its new properties in order to bring them in line with the brand's standards.
Hilton Worldwide has made its debut on the Italian island of Sardinia with the Doubletree by Hilton, Olbia-Sardinia. The 124-room hotel opened this week in the town of Olbia, on Sardinia's northern coast, and it is being operated by PROMA srl under a franchise agreement with a subsidiary of Hilton. Hilton now has three Doubletree properties in operation in Italy.
In March this year Saphos Hotels rescued the Gravetye Manor, in West Sussex, England, from administration. The company, owned by Jeremy Hosking, has now announced that the listed Elizabethan manor house hotel is to undergo a multimillion pound refurbishment. The work will include the redecoration of the property's 18 guest rooms and the restoration of its award-winning 35-acre garden.
Switzerland-based Kempinski Hotels made its grand entrance in the city of Cairo this week when it opened its first property in the Egyptian capital on the banks of the River Nile: the 191-room Kempinski Nile Hotel Garden City Cairo. This is Kempinski's second property in Egypt; hotel number one being the 325-room Kempinski Hotel Soma Bay in the resort of Hurghada, on the Red Sea coast.
After making its European debut in London last year with the 64-room Hotel Indigo London Paddington, and the recent opening of the 44-room Hotel Indigo London Tower Hill, InterContinental Hotels Group's (IHG) newest brand is now spreading its particular shade of purple to continental Europe. The latest chosen destination is the city of Madrid in Spain where IHG signed a franchise agreement with Orion for the 89-room Hotel Indigo Madrid, which is expected to open in spring 2012.
Whitbread has announced that it is to invest more than £7 million in a sustainability programme that will boost the environmental performance of its hotels, restaurants and Costa Coffee shops. The company aims to reduce its carbon emissions and water consumption, and has set itself targets of a 26% reduction in energy consumption and a 20% reduction in water consumption by 2020. Other parts of the programme include a £2.6 million investment in low-energy LED light bulbs, thermal building insulation and automated lighting systems.
Golden Tulip Hospitality Group announced on 1 July 2010 that it has signed a franchise agreement for a new Tulip Inn hotel in Amsterdam. The former Hotel Terminus is being renovated and transformed into the three-star, 110-room Tulip Inn Amsterdam Centre and is due to open its doors on 1 September 2010. The Tulip Inn brand was created in 1993 and currently comprises 75 hotels.
Over 7-8 September 2010, at the Hyatt Regency Churchill Hotel in London, the banking and hotel sectors will come together for the 10th Annual European Hotel Finance & Investment Summit. Among the many industry experts speaking at the seminar will be HVS London's Managing Director Russell Kett. Book before 23 July make a saving of €100 on the price of your ticket. For more information or to register online visit http://www.euromoneyseminars.com; alternatively, call the event team on +44 (0) 20 7779 8999 or email your contact details to m_harris@euromoneyplc.com.
Marriott International has reported a net income of US$119 million for the second-quarter of 2010, an increase of almost 222% on the US$37 million reported for the same period in 2009. RevPAR for worldwide comparable company-operated properties increased by 9.9% on the same period in 2009, and RevPAR for worldwide comparable systemwide properties increased by 8.5%. EBITDA for the second-quarter of 2010 totalled US$278 million. JW Marriott, Jr, chairman and chief executive of Marriott, said: "Combined with productivity improvements achieved over the last year, strong unit growth and increasing demand, we look forward to growing cash flow and strong earnings in 2010 and beyond".
Starwood Hotels & Resorts – Share prices rose for a second day on Thursday, bringing Starwood’s two-day rise to US$3.14 or 7.7%.
NH Hoteles – Share prices rose 1.0% on high volume.
Accor – JP Morgan issued Accor with an "overweight" rating and gave a share price target of €28.90.
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 | rkett@hvs.com |
| Charles Human, Managing Director – HVS Hodges Ward Elliott | chuman@hvshwe.com |
| Tim Smith, Director – HVS London | tsmith@hvs.com |
| Demetris Spanos, Managing Director – HVS Athens | dspanos@hvs.com |
| Hala Matar Choufany, Managing Director – HVS Dubai | hchoufany@hvs.com |
| Christopher Mumford, Managing Director – HVS Executive Search | cmumford@hvs.com |
| Philip Bacon, Managing Director – HVS Madrid and Managing Director, EMEA & Asia – HVS Shared Ownership Services | pbacon@hvs.com |
| Louise Fury, Editor and EMEA Hospitality Newsletter Author – HVS London | lfury@hvs.com |
| Lesley Parrott, Junior Editor and EMEA Hospitality Newsletter Author – HVS London | lparrott@hvs.com |