HVS EMEA Hospitality Newsletter - Week Ending 13 August 2010
Riyadh To Be Endowed With Two New Hiltons | This week Hilton Worldwide signed a management agreement with the King Saud University Endowment programme for two new properties in Riyadh, Saudi Arabia: the 241-room Hilton Riyadh King Saud University and the 155-room Hilton Riyadh King Saud University Residence, which are both expected to open by 2012. Hilton currently has one hotel in operation in Riyadh, the 180-room Hilton Garden Inn Riyadh Olaya, and this announcement brings its pipeline in the city up to four properties. Commenting on the new signing, Paul Brown, President, Global Brands & Commercial Services, Hilton Worldwide, said: “We are delighted to have signed two properties in the capital, in line with our goal to increase the presence of our brands in Saudi Arabia [and] around the world”.
A Right Royal Venture | The emirate of Qatar and the principality of Monaco have teamed up to form a joint venture international company called Monaco QD International Hotels and Resorts Management. The owners of the new company, Qatari Diar and Monaco’s National Company for Finance, plan to use the initial capital, which is reported to be €5 million, to acquire and administer hotels and resorts in Europe, the Middle East and North America. Qatar holds a majority stake in the new company, which is to be based in Monaco.
Herve Humler To Preside Over Ritz-Carlton | This week, Marriott International announced the appointment of Herve Humler as President & Chief Operations Officer of its Ritz-Carlton brand. Mr Humler was one of the original founders of the brand in 1983, and before joining Ritz-Carlton he held senior management positions with both Hyatt Hotels and InterContinental Hotels Group. Mr Humler, who will also oversee Bulgari Hotels & Resorts, will take over the role from Simon Cooper, who is to take up the position of Marriott’s President & Managing Director for Asia Pacific. Commenting on the news, Robert J McCarthy, Marriott International Group President, said: “Herve is a true international hotelier with more than 35 years in the luxury lodging business and has helped to build The [sic] Ritz-Carlton into a world-class brand”.
InterContinental Hotels Group Reports Its Half-Year Results | InterContinental Hotels Group (IHG) recorded a total revenue of US$772 million for the first half of 2010, an increase of 6% on the same period in 2009. Operating profit reached US$219 million, an increase of 22% on 2009. The group reported a global constant currency first-half RevPAR growth of 3.9%, which was driven by occupancy. RevPAR for the EMEA region increased by 4% in the first quarter of 2010, and by 7.2% in the second. Germany recorded the strongest RevPAR performance, with an increase of 16.5%; however, mixed trading conditions in the Middle East are reported to have led to the decrease of 4.8% in RevPAR for hotels in this area. Revenue in the EMEA region increased by 3% to US$192 million. Commenting on the results, Andrew Cosslett, Chief Executive of IHG, said: “During the downturn we worked closely with our owners to reduce costs, drive revenue and build the strength of our system and brands…Having maintained the dividend through the recession and balancing the improvement in trading with the continued economic uncertainty, the Board is announcing an increase in the dividend of 5%”.
From London In September… | Autumn is nearly upon us and this year the season of mellow fruitfulness brings us the 10th Annual European Hotel Finance & Investment Summit. Some of the questions to be addressed at this year’s event are: Has the hotel industry turned a corner? Is 2010 the year in which owners and operators can start to look again to the future after a turbulent couple of years? How are lenders and investors viewing the growing market confidence? The summit is to take place at the Hyatt Regency Churchill Hotel in London, UK, from 7-8 September. Among the abundant crop of industry experts speaking at the conference is HVS London’s managing director Russell Kett. For more information or to register for the event visit euromoneyseminars.com.
…To Venice In October | September may mark the tenth birthday of the Annual European Hotel Finance & Investment Summit but October is also an important month on the 2010 conference calendar: the Annual International Hotel Conference is to hold its eighth edition at the Hilton Molino Stucky hotel in Venice, Italy. The event will run from 20-22 October and will include 35 interactive educational sessions. Representing the HVS London office at the event will be Tim Smith, Director; Lara Sarheim, Senior Associate; Arlett Oehmichen, Associate Director; and Russell Kett, Managing Director. To book your place at the conference or for more information click here.
Gladen’s Tidings | The news from Spain by Esther Gladen, Business and Market Intelligence Analyst, HVS Madrid. Gestión T3 may purchase another property. The founder and director of Gestión T3, Ton Lodder, has estimated a turnover of €3.27 million for 2010. Last April, the company purchased the Hilton Sa Torre, on the island of Majorca, for €29 million and it does not discount the acquisition of another property if the conditions are attractive. At present, Gestión T3 is focused on lease and management in Spain, but its expansion into other European countries seems to be just around the corner. This week the Serhs Group signed a management agreement for a three-star hotel in Barcelona. The property is located on the coastline, in Santa Susanna, and it will be open in time for next season. The five-star Los Monteros hotel in Marbella is open again. After a 13-month labour dispute, the luxury hotel, which had been closed by its previous Russian owner, Ernest Malishev, in June 2009, has finally reopened. Last July, the companies of New Monteros and Monterotel signed an agreement for the purchase of the property.
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