HVS EMEA Hospitality Newsletter - Week Ending 4 June 2010

A New Name For Park Inn

Rezidor Hotel Group announced that its Park Inn brand has been given a new name! From now on this mid-market brand is to be addressed as Park Inn by Radisson. The new name will first sweep its way though the UK and will then make its way to Rezidor’s Park Inns across the rest of Europe, the Middle East and Africa. The brand’s entire stock is to be renamed by the end of 2011. Rezidor’s president and chief executive officer Kurt Ritter commented on the process: “This new name is in line with out decision to strongly focus on the development of our two core brands…The link with Radisson and its great strength and reputation will allow Park Inn to grow even faster and to be even more efficient.”

Rezidor Finds A Park Inn Space In Veronezh

This week brought more Park Inn news from Rezidor Hotel Group: the group announced plans for a new Park Inn property in Russia. The Park Inn Voronezh (which by this time could be the Park Inn by Radisson Veronezh) is expected to open in 2013 in the southwestern city of Veronezh. The 164-room hotel is being developed as part of a strategic development agreement between Rezidor and St Petersburg-based hotel management company Regional Hotel Chain (RHC); this agreement will see 20 Park Inn hotels constructed in major Russian cities, and RHC aims to have ten of these properties in operation by 2014.

The Kempinski Hotel River Park Rides Into Bratislava

Kempinski Hotels has opened its first property in Bratislava, southwestern Slovakia: the Kempinski Hotel River Park Bratislava, which is part of the city’s River Park mixed-use development on the banks of the River Danube. This 231-room hotel is Kempinski’s second hotel in Slovakia and it comes hot on the heels of the 99-room Grand Hotel Kempinski High Tatras which opened last year in the mountain resort of Strbske Pleso.

A Westin For Hamburg

Starwood Hotels & Resorts and its joint venture partner Munich-based Arabella Hospitality Group, the parent company of ArabellaStarwood Hotels & Resorts, have got together to give Germany its sixth Westin-branded hotel; the ten-storey, 244-room Westin Hamburg Hotel is scheduled to open in 2012 as part of the €241.3 million Elbe Philharmonic Hall complex, which is currently under construction in the city of Hamburg. This will be the city’s first Westin hotel.

Doubletree Comes To Jordan

Hilton Worldwide is to make its debut in Jordan with the Doubletree by Hilton, Aqaba. Hilton has signed a management agreement with Jordan Maritime Complex for Real Estate Investments for the 181-room hotel, which is scheduled to open in the resort of Aqaba, on Jordan’s southern coast, in the third quarter of 2010. The Doubletree won’t be the only Hilton-branded property in the country for long though as Hilton currently has three other properties under development in Jordan which will be opening their doors in 2011 and 2013.

Hilton To Premier In Al Khobar

Hilton Worldwide has also announced the coming out of another debutante this week; the US-based group is to make a first appearance in the city of Al Khobar, in Saudi Arabia’s Eastern Province, with the Hilton Al Khobar Hotel & Residence. Hilton has signed a management agreement with Saudi Arabian-based Jenan Real Estate Company for the hotel, which is expected to open as part of a mixed-use development in the fourth quarter of 2013 with 250 rooms and 150 serviced apartments. Construction on the new-build property is scheduled to start in March 2011. This will be Hilton’s sixth hotel in Saudi Arabia overall and the group has another three properties currently under construction.

Fairmont In The Valley Of Flowers

Fairmont Hotels & Resorts travelled to the province of KwaZulu-Natal, in South Africa, this week. If you were there, you might have spotted the Canadian-based hotel chain as it travelled along the provinces’ Dolphin Coast. Fairmont wasn’t on safari, however, it was there to work, and its final destination was the resort of Zimbali where it stopped to open the 154-room Fairmont Zimbali Resort. This resort may just be the most sweetly scented corner of South Africa as Zimbali is Zulu for Valley of Flowers.

Gladen’s Tidings

The news from Spain by Esther Gladen, Business and Market Intelligence Analyst, HVS Madrid. Metrovacesa has sold two properties in Madrid: the five-star Husa Princesa (275 rooms) and the four-star Husa Moncloa (148 rooms), which have been acquired by Continental Property Investments (CPI). The total purchase price of €122 million includes the two hotels, a retail area, a car park and 5,000 m² of office space. CPI intends to respect the current management contracts with Husa and, therefore, the Husa Princesa will be managed under the brand until 2013 and the Husa Moncloa until 2016. A new hotel company TH Hotels opened a four-star property in Alicante: the 101-room Don Antonio, which is owned by UTE Logisa Zurriola. A second Mercure hotel is now open in Madrid: the four-star Santo Domingo, which has 79 double rooms and a 60 m² suite.

Absolute Share Price Performance Over the Past Week 27 May-3 June 2010

Whitbread - Dipped 0.4% on robust volume, ending a four-day streak of rises.

Accor - Reduced 0.3% on thin volume for a third consecutive day.

NH Hoteles - Sabadell gave the company a "buy" recommendation and a price target of €4.50.

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