HVS EMEA Hospitality Enews - Week Ending 16 October 2009

Rocco Forte May Say Auf Wiedersehen To Switzerland

Less than a decade after Rocco Forte Hotels expanded into Switzerland with the purchase of the Le Richemond Hotel, in Geneva, for €64 million (through a joint venture with Bank of Scotland Corporate), Sir Rocco Forte is reportedly looking for a buyer for the hotel. The 125-room hotel is one of 13 Rocco Forte Collection properties across Europe. Despite the proposed sale of the Le Richemond, the company is still planning to expand into the Middle East and Africa with the opening of three new hotels in Marrakech, Jeddah and Abu Dhabi within the next few years.

All Seasons Comes To The UK

To everything there is a season, but to the Southwark Rose hotel in London there is every season! The hotel has just been incorporated into Accor’s All Seasons budget brand and is now known as the All Seasons London Southwark Rose. The 84-room hotel is the first All Seasons property to open in the UK, and as well as getting a new brand the hotel is also set to expand with a 21-room extension. Germany and France are currently the only other European destinations in the All Seasons portfolio but further expansion is planned for the brand, including properties in Italy, Belgium, Luxembourg and the Netherlands.

The Radisson Blu Reopens In Hamburg

At 120 metres high, the Radisson Blu Hotel, Hamburg, in northern Germany, is the tallest hotel in the city and with 556 rooms it is also the largest. After undergoing an extensive €48 million renovation of all of its facilities, the hotel reopened this week to rise like a phoenix from the ashes and stand proud once more on the city’s skyline.

Interval International Reaches New Heights

Global timeshare exchange company Interval International scaled Mount Olympus this week to reach its latest destination: the city of Paphos on the southwest coast of the Mediterranean island of Cyprus, where it affiliated the Pafiana Heights resort into its network of timeshare properties. The 57-unit resort is Interval’s fifth affiliation on the island and its third in Paphos.

Three Hotels In Iraq For Millennium & Copthorne

Millennium & Copthorne set up its Middle East and North Africa division in 2002, and since then it has continued to expand in the region by securing management contracts for 30 properties (nine of which are operation and another 21 are under construction). As part of this expansion, Millennium & Copthorne is to become the first international hotel chain to operate in Iraq. The Singapore-based company has signed management contracts with Iraq-based Faruk Group Holding (FGH) for the development of three hotels in Sulemania, northern Iraq: a 100-room Tara hotel, a 140-room Copthorne hotel and a 254-room Grand Millennium property. FGH are reported to be investing US$120 million in the Grand Millennium project.

Whitbread Reports Its Half-Year Results

Despite the cloud of doom and gloom still hovering over the hospitality industry from the worldwide financial crisis, Whitbread has ended the first half of 2009 on a positive note. The group has reported an increase in total revenue of 3.1% to £703.3 million, compared to £682.2 million for the same period in 2008. Premier Inn sales increased by 0.4% on the same period in 2008 to £312.1 million, although like-for-like sales decreased by 7.5%. And although RevPAR for Whitbread’s Premier Inn brand fell by 9.2%, the brand has outperformed the market which registered an 11.0% decrease in RevPAR. Whitbread’s chief executive Alan Parker commented that “We remain confident about the outturn for the year, subject to any marked deterioration in the economic environment.”

Accor’s Results For Year-To-September 2009

Accor reported a total revenue of €5.2 billion for the first nine months of 2009, a like-for-like decrease of 8.2% on the same period in 2008. Total hotel revenue was €3.8 billion, a like-for-like decrease of 10.7% on the same period in 2008. RevPAR for upscale and midscale hotels in Europe was €57 for year-to-September 2009, a like-for-like decrease of 14.2% on 2008. RevPAR for economy hotels in Europe also fell by 8.7% (like-for-like) to €38.

Roll Up, Roll Up For The International Hotel Conference

If you haven’t already, this could be your last chance to book your ticket for the 2009 International Hotel Conference and mingle with a host of hotel experts from around the globe, including HVS London’s contingent Russell Kett, Tim Smith, Sophie Perret and Thomas Laakso. The conference takes place next week from the 21 to the 23 of October at the Hilton Molino Stucky hotel in Venice, Italy. Click here to book you place or for more information.

Kiessling’s Corner

The news from Spain by Gabriele Kiessling, Analyst, HVS Madrid. The Hotel Montiboli, in Alicante, will be closed from 18 October 2009 for six months in order to undergo a renovation. Servigroup is planning to invest between €2.5 and €3 million in the property. Sol Meliá has signed a franchise agreement for the Montalvo hotel in Salamanca; from November the three-star, 57-room hotel will operate under Sol Meliá’s Tryp brand. The Montlavo was previously managed by Partner Hotels. Hotusa has announced that it incorporated 70 hotels into its portfolio within the third quarter of 2009. A total of 28 of these hotels are in Spain (mainly Catalonia and Andalusia) and 42 are outside Spain.

HVS London's Russell Kett To Moderate A Webcast

Russell Kett, Managing Director of HVS London, is moderating a session on Securing Your Investment in Today's World in the Hospitality Industry against Unknown Events – Safety & Security of Guests, Staff and Property. Panellists include Julia Graham, Chief Risk Officer, DLA Piper; Tim Crockett, CEO of Pioneer Consulting LLC and Chair of the Public Safety Committee of Homeland Security Foundation of America; and Dr James V Wilson, V MD, Chief Technical Officer and Chief Scientist of Veratect Corporation. The panellists will debate how the industry needs to deal with early warning systems to mitigate risk from unforeseen events to their clients, staff and suppliers. The broadcast will be in real time from studios in London. To register for this free webinar go to www.benchevents.com.

Absolute Share Price Performance Over the Past Week 8-15 October 2009

Marriott International - Shares rose as the company hit a 52-week high of US$28.13.

Sol Meliá - Goldman Sachs raised the share price target to €6.00 from €3.80.

NH Hoteles - Goldman Sachs reiterated its "sell" rating and raised the share price target to €3.60 from €2.61.

For the latest in the hospitality industry, please visit: http://www.hvs.com. You are also welcome to contact the following personnel.