HVS EMEA Hospitality Enews – Week Ending 8 August 2008
Hilton Number Two For Nigeria... | Hilton Hotels Corporation has signed a management agreement with Aero Marine (West Africa) Ltd for a new Hilton hotel in the West African country of Nigeria. The 250-room Hilton Lagos Airport is expected to open near the end of 2010 adjacent to the international terminal at Murtala Mohammed International Airport, in the southwestern city of Lagos. The hotel will be the second Hilton hotel in Nigeria, along with the existing 670-room Transcorp Hilton Abuja in Nigeria’s capital, and it will be hotel number eight in Hilton’s African portfolio.
Nine Is A Magic Number For Whitbread | Hot on the heels of its asset swap last week, Whitbread has now announced that it is to continue with its expansion plans by acquiring sites for nine new Premier Inn properties in the UK, boosting its room count by more than 1,000, with an investment of £100 million. Two stand-alone Premier Inns are to be developed in London: a 325-room property in Aldgate and a 194-room hotel south of the Thames in Greenwich, taking the company’s room count in London to over 500. The other two stand-alone sites are in Preston and Doncaster, with 136 and 135 rooms, respectively. The remaining five new hotels will be joint sites alongside a pub restaurant and will be developed in Glasgow, Kendal in the Lake District, Mere Park in Newport, Trowbridge in Wiltshire and Rugeley in Staffordshire.
InterContinental Hotels Group Crownes Dubai and Saudi Arabia | InterContinental Hotels Group (IHG) has got together for the third time with Dubai-based Mohammad Omar Bin Haider Group (MOBH) to sign an agreement for a Crowne Plaza hotel in Dubai’s International Media Production Zone, in the UAE. The Crowne Plaza Dubai, International Media Production Zone (IMPZ) is to offer its guests 250 rooms and 70 serviced apartments, and it will be the UAE’s fourth Crowne Plaza property. IHG’s previous two meetings with MOBH resulted in the 139-room Holiday Inn Down Town Dubai and the 180-room Holiday Inn Sharjah. There is no information yet as to the expected opening date of the new Crowne Plaza. IHG has also travelled to Saudi Arabia this week to sign an agreement with Mohammed A. Al-Swailem for Egypt-based Commercial Investment Co. Ltd to give the city of Riyadh a 300-room Crowne Plaza hotel, which is due to open at the end of 2010. This will be Saudi Arabia’s second Crowne Plaza along with the 323-room Crowne Plaza Jeddah.
Emaar To Give A New Address To Dubai | Emaar Hospitality Group’s (EHG) The Address Hotels & Resorts brand is to take over the operation of The Palace The Old Town hotel, in the Downtown Burj Dubai area, now that the previous management agreement with Accor, under its Sofitel brand, has come to an end. The five-star, 242-room hotel will keep its current name in line with EHG’s aim of building a diverse portfolio of hotels, some under The Address brand and others unbranded but operated and managed by the company. The Palace The Old Town will join the other three The Address hotels that EHG is developing in the emirate of Dubai.
A Radisson Hotel for Dresden | Rezidor Hotel Group has signed a franchise agreement with Berlin-based hotel management company Grand City Hotels & Resorts for a new hotel in the German city of Dresden. As of 1 January 2009, the existing Park Hotel Dresden Radebeul will be rebranded as the 574-room Radisson Hotel Dresden Radebeul. The new property will be the second Radisson branded hotel in Dresden alongside the 94-room Radisson SAS Gewandhaus Hotel.
A Park Inn For Preston | Not content with just a new Radisson this week, Rezidor has also announced a Park Inn for the northern UK city of Preston, in the county of Lancashire. Rezidor is to take over the management of an existing 98-room hotel which, after a renovation, will be rebranded as the Park Inn Preston in February 2009. An additional 20 rooms are to be added to the property by June 2009.
Habro Gets A Premier Inn to Add To Its Properties | Danish company KS Habro Stoke, part of Habro Properties Group, has bought the Premier Inn (Trentham) at the historic Trentham Gardens Estate, in the county of Staffordshire, UK, from Birmingham-based, specialist regeneration company St Modwen for £10 million. The sale includes the 150-year lease of the 119-room hotel, which opened in March. Whitbread subsidiary Premier Inn Hotels currently has a 35-year lease on the hotel.
Millennium & Copthorne Announces Its 2008 Half-Year Results | Millennium & Copthorne has announced a hotel revenue growth of 4.8%, to £176.1 million, and a group RevPAR increase of 4.9%, to £58.19, for the second quarter of 2008. For the first half of this year, the company has recorded a hotel revenue growth of 4.9% to £334.5 million, with a group RevPAR increase of 6.0% to £54.91. Millennium & Copthorne’s chairman Mr Kwek Leng Beng commented “Our half year 2008 results are in line with the Board’s expectations.”
Kiessling’s Corner | This week's news from spain by Gabriele Kiessling, HVS Analyst, Madrid. The hotel chain Spring is to open its new establishment in Playa de la Arena, in Santiago del Teide. The new complex will be named Hotel Costa Los Gigantes Suites & Spa Resorts, but it is not likely to open before next winter. The full service, four-star hotel will have 518 rooms, of which 481 will be junior suites and the remaining 37 double rooms, a gym, children’s facilities and a spa. This establishment will be Spring’s fifth property, alongside its four, four-star hotels in the south of Tenerife. The latest project promoted by Haciendas de España recently opened on the 25 July in Monistrol d’ Anoia. The project comprised the restoration of a sixteenth-century farmhouse. The construction work took up to two years and involved an investment of €6 million. The luxury, five-star Masia L’ Hereu Hotel at the development can accommodate all type of events and celebrations. The hotel’s ten Suites are expected to open in 2009. The group already has another nine wine hotels and resorts in locations such as Madrid, Ribera del Duero, Salamanca and Haro (La Rioja) and London. Alma Hotels, which specialises in luxurious five-star hotels, has planned to open another three hotels in 2009 and two hotels in 2010. Four of the hotels are to be located in Spain and one in Lisbon. According to various sources, the Spanish hotels will open next year in Barcelona, Seville and Pamplona, and they will consist of 75, 50 and 60 rooms, respectively. The following year one hotel will open in Cordoba with 40 rooms and another one in Lisbon with 60 rooms. The new hotels are to be either newly constructed or housed in buildings which will be refurbished. Alma Hotels is a Spanish company which started its portfolio with the acquisition of a property in Berlin in 2006, which is currently the group’s only operating hotel.
Countdown To The 8th Annual European Hotel Investment And Finance Summit | An important date to add to your diary is the 8th Annual European Hotel Investment and Finance Summit, which is to be held at the Hilton London Tower Bridge in London, UK, on 9 and 10 September 2008. On the agenda is a talk on the 2008/2009 hotel forecast by HVS London’s Russell Kett. To register for this event visit .
Absolute Share Price Performance Over the Past Week 31 July 2008-7 August 2008
- Millennium & Copthorne - The company was upgraded to "buy" from "add" by Dresdner kleinwort.
- Whitbread - Whitbread performed well as oil prices came down.
- InterContinental Hotels Group - The company stated that it is to change its reporting currency to US dollars.