Absolute Share Price Performance Over the Past Week – 24 February-3 March 2011 — Photo by HVS
Absolute Share Price Performance Over the Past Week – 24 February-3 March 2011 — Photo by HVS

Sarova Sales Into Windsor

Sarova Hotels recently took a trip down the River Thames to the town of Windsor, south England. Once there, it rescued the Sir Christopher Wren's House Hotel from administration for an undisclosed sum, bringing its portfolio of hotels in the UK up to four. The 95-room hotel, which has a royally good location nestled beneath the ramparts of Windsor Castle, was thought to have been the family home of famous British architect Sir Christopher Wren. The Grade II-listed building first opened as a hotel in 1920 and it has changed hands many times since. The previous owner, Croatian hotelier Goran Strok, bought the hotel in 1996 and undertook a £4 million refurbishment programme. It is reported that Sarova also now intends to invest in the property.

The Three Mercures

Accor has signed a franchise agreement this week with UK-based London Town Hotels (LTH) that will see it bring three hotels in England under its midscale Mercure brand within the next few months. The 85-room Quality Crown Paddington and the 83-room Quality Crown Kensington, in London, are to be rebranded as the Mercure London Paddington and the Mercure London Kensington in March and June, respectively. The 200-year-old Comfort Hotel Nottingham, in the city of Nottingham, north central England, is currently undergoing a £1.5 million refurbishment and will be unveiled as the Mercure Nottingham Lace Market in June. Koolesh Shah, LTH's managing director, explained that Mercure is a strong global brand which complements the group's portfolio of five four-star city centre hotels. "It is really exciting to be working with Accor for the first time", he said. This latest deal by Accor follows on from the announcement in January this year that ten Focus Hotels-owned properties in England will be wearing the Mercure logo, as part of Accor's plan to increase its UK network from 156 to 300 hotels by 2015.

HVS At The IHIF

If you are attending the International Hotel Investment Forum 2011 at the InterContinental Berlin on 7 March, don't forget to visit the HVS stand where you can pick up a copy of our recently released 2011 European Hotel Valuation Index and this year's European Hotel Transactions survey. Gracing the stage at the conference from HVS will be Russell Kett, HVS London's managing director (7 March, 16:30 CEO Hard Talk – Leaders Share Their Views on the State of the Industry); Charles Human, managing director of HVS Hodges Ward Elliott (8 March, 11:45 When Will Transactional Markets Normalise – What are the Precursors?); Philip Bacon, managing director of the HVS Madrid office and HVS Shared Ownership Services (8 March, 11:45 What Next for the Mature Resort Markets?); and Arturo Garcia Rosa president of HVS Argentina (9 March, 11:45 The Country Forum – Hidden Gems and Opportunities for the Opportunistic). Click here for more information. If you would like to meet with any of the HVS team attending the conference, please email Kerry Phillips at [email protected].

Halcyon Days Ahead For Nigel Chapman

British hotelier Nigel Chapman, the founder of Luxury Family Hotels (sold to von Essen in 2005) and co-founder of Alias Hotels with Nicholas Dickenson (sold to Swire Hotels in 2006), is launching a new hotel group on the UK market: Halcyon Hotels and Resorts, which started off its portfolio this week with the purchase of the privately owned 39-room Polurrian Hotel, in Cornwall, southwest England, for £2.3 million. Chapman is reportedly looking to acquire a total of five more hotels in the south of England over the next couple of years. Commenting on his new venture, Chapman said: "It is a great time to be returning to the UK market as it is a good time to be able to buy the right hotels at the right price…Ideally we want to find properties that have the potential to become luxury resorts of between 80 and 150 bedrooms." The new company is hoping to raise up to £10 million from private investors. Opportunities for investment, which is being handled by London-based Enterprise Private Equity, close on 31 March 2011.

Waldorf Astoria To Make Its Debut In The UAE

Hilton Worldwide has signed a management agreement with Al Hamra Group which will see the global chain open its second Waldorf Astoria hotel in the Middle East. The Waldorf Astoria Ras Al Khaimah is expected to open in the fourth quarter of 2011 in Al Hamra, in the west of Ras Al Khaimah, UAE. The 349-room hotel will be part of a mixed-use development that includes a championship golf course, a private beach and a convention centre. Commenting on the signing, the emirate's ruler, Sheikh Saud bin Saqr Al Qasimi, said: "I think it's a significant step in terms of establishing Ras Al Khaimah as a tourist destination…We now have four hotels open or under development with Hilton Worldwide and are proud to be working with them to expand the Waldorf Astoria brand to the UAE." Hilton's first Waldorf Astoria in the region, the 46-suite Qasr Al Sharq, opened in Jeddah, Saudi Arabia, in 2005.

New Missoni Struts Its Stuff In Kuwait

It's that trendy time of year again with New York and London recently hosting their Fashion Weeks, and Paris soon to follow suit, showing off new designer creations. Good looks and innovative design are not just to be found on the World's catwalks, however, and Rezidor Hotel Group decided it wanted in on the action…this week the Brussels-based group opened its second hotel in collaboration with Italian fashion house Missoni: the Hotel Missoni Kuwait. The 169-room hotel is the first of its brand in the Middle East and it has been developed as part of the mixed-use Symphony development in Kuwait City, which also includes a luxury three-storey shopping centre and a 12-storey office tower.

InterContinental Gets A Third Crowne in Dubai

This week, InterContinental Hotels Group (IHG) opened its third Crowne Plaza property in the emirate of Dubai. IHG signed a management agreement with Deira-based Mohammed and Obaid Al Mulla for the former Renaissance Dubai Hotel. The hotel, which has been rebranded as the Crowne Plaza Dubai-Deira, is currently undergoing a US$55 million renovation to its rooms and public areas that will increase its room count to 302.

A New Fairmont For Saudi Arabia

Canadian-based luxury hotel and resort operator Fairmont Hotels & Resorts has signed a management agreement with Riyadh-based Business Gate for a new hotel and 4,000 m² conference centre at the mixed-use Business Gate development in Riyadh, Saudi Arabia. The Fairmont Riyadh, Business Gate is expected to be ready by the end of 2012. Once open, the 287-room hotel will be Saudi Arabia's second Fairmont property, along with the 858-room Makkah Clock Royal Tower, A Fairmont Hotel.

Danat Springs Up In The Garden City

Danat Hotels and Resorts has taken over the management of the former InterContinental Al Ain, in Abu Dhabi's second-biggest city – known as the "Garden City" because of its widespread greenery. The 216-room hotel has been rebranded as the Danat Al Ain Resort and has become the group's sixth hotel across the emirate. Danat is the upscale hotel division of the hotel's owner, Abu Dhabi-based National Corporation for Tourism and Hotels.

The Bells Ring For A Fourth Time In Oman

Hong Kong-based Swiss-Belhotel International has signed a management agreement for its fourth hotel in Oman. The 60-room Swiss-Belinn Jebal al Akhdar, in the Jebal Al Akhdar region, northern Oman, is currently undergoing a thorough renovation and is expected to open in 2012. This is the second deal that the company has made in Oman this year; last month it signed a memorandum of understanding with Al Farazdq Trading and Construction Company for the Swiss-Belexpress Muscat.

Get Ready For An Encore In Tangier

Wyndham Worldwide's Ramada Encore brand is to make its debut in Africa. The Ramada Encore Tangier is expected to open in the north Moroccan port in 2012. The 195-room hotel, which is currently under construction, is being developed by Pearl One, a fully owned subsidiary of Kuwait-based Taameer Real Estate Investment Company. Once open, this property will be Taameer's second hotel in Morocco; number one being the 133-room Ramada Fes, in the centre of the country.

Hilton Casts A New Shadow In The Seychelles

Hilton Hotels & Resorts opened its second hotel in the Seychelles this week. The Hilton Seychelles Labriz Resort & Spa can be found on Silhouette Island, the third largest of the West Indian Ocean islands. The 111-villa property, which is the only resort on the island, is being operated under a management agreement with Silhouette Island Resort.

Whitbread Trading Update

For the 50 weeks to 17 February 2011 Whitbread reported an increase in like-for-like sales for its Premier Inn brand (UK and Ireland only) of 8.8%. Premier Inn like-for-like occupancy for the period was 76.3% and RevPAR grew like-for-like by 8.5%. "Whitbread continues to perform well with total sales in the last 11 weeks up 12.4%. Our like-for-like sales are good especially in a challenging economic environment and against tougher comparatives", commented Andy Harrison, Whitbread's chief executive. "We anticipate that the outturn for the year will be in line with market expectations, demonstrating strong profit growth. Whilst it is premature to judge the trajectory of the UK consumer economy in 2011 we shall continue to invest in growing our strong brands", he continued. During the past year, Whitbread opened 22 hotels (2,138 rooms). The UK-based company reports that it remains on target to have 55,000 rooms in the UK by the end of 2013/14.

Sol Meliá's 2010 Results

Spanish chain Sol Meliá has reported a net profit of €50.1 million for the full-year 2010. Revenue was €1.2 billion, an increase of 8.9% on 2009. EBITDA reached €235 million in 2010, an increase of 16.5%. The group's RevPAR grew by 8.9% over 2010, with an increase of 13% in the fourth quarter alone. For Sol Meliá, 2010 was a year of international expansion with the opening of its first hotels in China and the USA. The group currently has 27 hotels in the pipeline for the next three years. Looking forward, Sol Meliá estimates a rise in RevPAR for 2011 of between 5% and 9%.

Gladen's Tidings

The news from Spain by Esther Gladen, Business & Market Intelligence Analyst, HVS Madrid. Iberostar adds a new hotel in Málaga to its portfolio: the 319-room hotel, in the Torrox area, will be refurbished before reopening; the property also contains 94 apartments. Hotel transaction in Alcossebre, Castellón: Spanish company Servigroup has purchased a property for €12 millon from Inversiones Morada SL. The hotel is now called the Hotel Servigroup Romana.

About HVS

HVS is the world's leading consulting and valuation services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. Established in 1980, the company performs more than 4,500 assignments per year for virtually every major industry participant. HVS principals are regarded as the leading professionals in their respective regions of the globe. Through a worldwide network of over 50 offices staffed by 300 experienced industry professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. For further information regarding our expertise and specifics about our services, please visit www.hvs.com.