HVS EMEA Hospitality Newsletter - Week Ending 18 June 2010

The Sale Of A Regent

Brussels-based Rezidor Hotel Group and privately held Minneapolis-based Carlson Hospitality Group have sold the Regent luxury hotel brand to Taiwan-based Formosa International Hotels Corporation for a total of €9.5 million. A Master Purchase Agreement was signed between the three companies back in April 2010, and the deal was closed this week. The acquisition includes the Regent brand and its associated intellectual property, the hotel management and lease contracts for Regent properties in operation and under development, and the licence for the Regent Seven Seas Cruises business.

A New Owner For The Four Seasons In Cairo

The government of Qatar has purchased the Four Seasons Hotel Cairo at The First Residence, in Egypt, from First Arabia Company for US$250 million. The 269-room hotel is at the centre of the city’s prestigious First Residence apartments and shopping centre, on the west bank of the River Nile. The transaction is reported to be part of Qatar’s strategy to consolidate and enhance its investments in the North African country. More news regarding the State of Qatar was released this week. According to The Times, Doha-based Qatar Investment Authority (QIA) is reported to be in talks to buy a third-share of the 268-room Savoy in London. The Savoy is due to reopen on 10 October 2010 after undergoing an extensive renovation and restoration programme costing more than £100 million. QIA is also believed to be one of the final bidders in the £500 million-plus auction of the 494-room Grosvenor House, A JW Marriott Hotel in London.

A Good Day For Hilton In Gdańsk

Three years after it made its debut in Poland with the 314-room Hilton Warsaw Hotel and Convention Centre, Hilton Worldwide has opened its second hotel in the Central European country in the city of Gdańsk, on the Baltic coast. The 150-room Hilton Gdańsk, which was designed by Polish architect Stefan Kuryłowicz, is located in the heart of the city’s Old Town. Commenting on the new opening, Dave Horton, Brand Vice President, said: “The contemporary design of Hilton [Gdansk] reflects our signature style while the hotel’s respect for the heritage of its historic setting embodies authentic Hilton hospitality that leads with global mind and local heart.”

Two New Golf Resorts To Erupt On Sicily

Malta-based CHI Hotels and Resorts has announced the signing of a 20-year management agreement with Italian companies Off Side srl and Sicilia Golf Resort srl. The agreement is for the operation of two five-star golf resorts in the areas of Taormina and Catania on the island of Sicily, to the southwest of Italy and home of the famous Mount Etna. The Corinthia Taormina Golf Resort and the Wyndham Catania Golf Resort, the first of their kind in Italy, are currently under construction and are due to open in the first quarter of 2012. The Corinthia Taormina Golf Resort will have 130 rooms and suites plus 158 fully serviced residential units. The Wyndham Catania Golf Resort will have 192 rooms and suites and 224 fully serviced residential units.

Frasers Hospitality Scores 11 In London And One In Dubai

Singapore-based serviced apartment company Frasers Hospitality opened its 11th property in the UK this week in London: the 22-unit Fraser Residence City. The company now has nine properties in the UK’s capital and two in Scotland (in Edinburgh and Glasgow). There was no extended stay in London for Fraser Hospitality, however, as it headed off to the emirate of Dubai, UAE, at the end of the week, where it made its debut in the Middle East with the opening of the Fraser Suites Dubai. This 180-unit property is part of the 45-storey Sidra Tower mixed-use development.

Layia Hospitality Finds The Living Is Easy In Dubai

This week, Layia Hospitality announced the opening of its newest property: the Opal Living Courts, which resides in the emirate of Dubai, UAE. This 48-unit aparthotel is Layia’s fourth property to open under its Living Courts brand (three in Dubai and one in Sharjah) and hotel number five in its portfolio overall. Layia has another 11 properties in the pipeline, at different stages of development, which are all expected to be accepting guests by 2015.

Gladen’s Tidings

The news from Spain by Esther Gladen, Business and Market Intelligence Analyst, HVS Madrid. Sol Meliá is to run the 178-room Vincci Condal Mar Hotel in Barcelona under its Tryp brand. The hotel’s owners Vincci and Acciona agreed to cease the operating contract they have held since the property opened in 2005. One of the biggest luxury resorts in Tenerife changes hands – The five-star, 331-room former AQA hotel San Blas Ambiental, in San Miguel de Abona, will now be operated by Sandos Hotels & Resorts, which is owned by Marconfort. The hotel’s provisional name will be San Blas Reserva Ambiental by Sandos. It is reported that the hotel, which absorbed an original investment of over €120 milllion before it opened in 2008, is now owned by CAM Caja de Ahorros del Mediterraneo.

Travelodge To Travel Alone

According to the Financial Times, the latest accounts submitted by Travelodge revealed that the budget hotel chain’s owner Dubai International Capital injected £20.1 million into the business last year, in exchange for relaxed banking covenants. The recapitalisation will allow Travelodge to speed up its future development plans. Travelodge also hit the headlines this week for withdrawing from the British Hospitality Association. Commenting on this resignation, Guy Parsons, Travelodge’s current managing director, said that: “It’s just not appropriate to us anymore…I think our brand has got to the point now where it’s big enough to represent itself going forward.”

Absolute Share Price Performance Over the Past Week 10-17 June 2010

InterContinental Hotels Group - Société Générale reiterated its "sell" rating and increased the share price target from 880 pence to 1,060 pence.

Whitbread - Dipped 0.1% on firm volume, ending a two-day streak of rises.

NH Hoteles - Banesto Bolsa upgraded its recommendation to "buy" from "sell".

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