HVS EMEA Hospitality Newsletter – Week Ending 22 October 2010

A Hotel For Harrods? | There is a rumour circulating around the hospitality world this week that future visitors to Harrods department store in London, UK, may be able to do more than just shop; instead of leaving after the doors have closed for the day and travelling across London laden with bags, shoppers may be able to stay the night at Harrods’ own hotel. The Qatari royal family acquired the iconic store from Mohamed Fayed for £1.5 billion in May of this year, and Qatar Holding has confirmed that the plan to convert the building’s rooftop into a luxury hotel is one of several possibilities being considered as part of a strategy to expand the Harrods brand.

New Hampton At Gatwick Airport | Gatwick Airport has recently announced that it has signed a contract with Shiva Hotels Limited to develop a Hampton by Hilton at the airport. Planning permission is currently being sought for the project and, if approved, construction of the 192-room hotel will begin in early 2011 in order to open in time for the London Olympic and Paralympic Games in 2012. Given the greater demand from passengers for additional hotel choice at the airport, the hotel will offer a more affordable product within Gatwick’s predominantly four-star hotel environment.

Whitbread’s Half-Year Results | Whitbread recorded total revenue of £805.4 million for the first six months of 2010, an increase of 14.5% on the same period in 2009. Revenue from the group’s Premier Inn budget brand was reported to be £355.7 million, a 14.0% rise on the first half of 2009. Premier Inn like-for-like sales increased by 10.1% for the first six months of the year, and the chain’s RevPAR growth outperformed the budget sector by 5.9 percentage points. The company opened a total of nine new Premier Inn hotels (795 rooms) during the first six months of 2010. Whitbread’s chief executive, Alan Parker, said: “Whitbread has performed strongly in both good times and during the recession and is well placed to grow in the current environment. While the economic outlook remains uncertain, we are confident in the outturn for the year.”

Accor’s Results For The First Nine Months Of 2010 | Accor reported a consolidated revenue of €4,429 million for the first nine months of 2010, a like-for-like increase of 6.3% on the same period in 2009. Total hotel revenue was reported to be €4,245 million, a like-for-like increase of 6.8% on 2009. Hotel revenue for the third quarter of 2010 increased like-for-like by 9.8% on the same period in 2009. Revenue for the group’s upscale and midscale hotels increased like-for-like by 8.4%, to €2,462 million, and revenue from economy hotels grew like-for-like by 6.4%, to €1,351 million. During the first nine months of 2010 Accor opened 130 new hotels (15,400 rooms). Owing to ongoing growth across all hotel segments, Accor has revised its EBIT target upwards to between €400 and €420 million, from the €370-€390 reported in August.

Tel Aviv There’s A Kempinski On The Way | Kempinski is to make its debut in Israel. The Swiss hotel chain has signed an agreement with Israel-based Nahal Group for the Kempinski Tel Aviv Hotel. The 23-storey, 220-room hotel is expected to open on the seafront in Tel Aviv in 2013 as part of Nahal Group’s David Promenade Residences development, which is estimated to cost ILS750 million (US$207 million).

From A Pair Of Ibises In Kuwait… | French hospitality group Accor recently opened its second Ibis property in Kuwait: the 160-room Ibis Sharq Kuwait, which is owned by Kuwait-based private development company Action Hotels. Located in Kuwait City, the hotel and its sister property, the 175-room Ibis Kuwait Salmiya, are part of Action Hotels’ expanding midscale portfolio in the Middle East. Alain Debare, Action Hotels’ general manager, commented that “Kuwait represents an important step in our commitment to the burgeoning economy tier”. Mr Debare has confirmed that of the 14 properties that Action Hotels plans to have in operation by 2012 six will be Ibis hotels.

…To A Duo Of Sofitels In Saudi Arabia | This week Accor travelled to the city of Al-Khobar, on the shores of the Arabian Gulf, to open its second Sofitel in Saudi Arabia: the 229-room Sofitel Al Khobar The Corniche, which is owned by Al-Dajam.

Millennium Goes Supersize In Abu Dhabi | Millennium Hotels and Resorts’ Grand Millennium brand will soon be making its debut in Abu Dhabi and, not just content with being the first of its kind, the Grand Millennium Al Wahda will also be the emirate’s largest hotel to-date. The new hotel is expected to open this November with 585 guest rooms and suites and 265 residences. This will be Millennium’s third property in Abu Dhabi; hotels one and two being the 325-room Millennium Hotel Abu Dhabi and the 108-room Kingsgate Hotel Abu Dhabi.

The Ritz-Carlton, Doha Is Dressed To Impress | This week the 374-room Ritz-Carlton, Doha, in Qatar, stepped out of the dressing room to reveal its brand new image to the world after an 11-month renovation project. The renovation, the first phase of a US$5.5 million soft refurbishment of the hotel’s guest rooms and public areas, took 11 months to complete. Experts from around the world were called upon to help the hotel with its new look: bespoke carpeting was sourced all the way from Ireland and textiles were brought in from France, Germany, Italy and the USA. And no makeover these days would be complete without a bit of bling…this came in the form of a two-metre-high Viennese Baakowitz Swarovski crystal chandelier which is now lighting up the hotel’s Grand Lobby.

More Rooms For Nairobi | African group Serena Hotels announced this week that it intends to invest US$30 million in expanding the 75-room Nairobi Serena Hotel, in Kenya. The project includes the addition of 125 guest rooms and a conference hall. Once the project is complete, the hotel will become the biggest property in Serena’s portfolio.

It’s Here – Russia & CIS Hotel Investment Conference | From next Monday, HVS will be attending the Russia & CIS Hotel Investment Conference. The three-day event is to take place from 25-27 October at the Renaissance Moscow Monarch Centre Hotel. A new feature this year is the ‘Ask the Experts’ sessions where there will be the opportunity for attendees to gain advice on issues particular to their business from industry leaders and experts. HVS’s Russell Kett, Elke Geieregger and Saurabh Chawla look forward to meeting and greeting clients and friends at this year’s event. For more information visit .

Gladen’s Tidings | The news from Spain by Esther Gladen, Business and Market Intelligence Analyst, HVS Madrid. Derby Hotels has recently opened its new five-star hotel, Hotel Bagués, in the centre of Barcelona. The property has 31 luxury rooms, a swimming pool with a view of the Barrio Gótico, a restaurant, a spa, a gym and a business centre. Fiesta Hotel Group has announced its plans to open the Ushuaïa Ibiza Beach Hotel in summer 2011. The group intends to introduce a new concept based on live concerts and performances of well-known artists, creating a special VIP atmosphere. The hotel will also offer guests 24-hour service. The new Playa Puerto Tahiche hotel in Lanzarote is due to open soon. After a two-year refurbishment and enlargement designed by well-known architects Requeña y Plaza, the opening of the four-star hotel, owned by Iberdrola, is scheduled for the coming weeks. The hotel is located at Las Cucharas Beach in Costa Teguise and offers 237 modern rooms, a swimming pool, a buffet restaurant, a themed restaurant, an English pub, a squash court and a fully equipped gym. What is, perhaps, most exceptional about this hotel is that only adults have access to it.