HVS EMEA Hospitality Newsletter - Week Ending 19 February 2010

Two UK Transactions

The Quality Hotel Station – Perth, in central Scotland, is the last Real Hotel Group asset to be sold. Entrepeneur Mark Kotecha, from property services company Supportico, bought the 69-room hotel for an undisclosed sum. At the opposite end of the UK in the resort town of Bournemouth, south England, another transaction took place this week. The freehold interest in the Park Central Hotel was sold by its private owner to Heritage Properties & Hotels for a sum reported to be in the region of £4 million. The 60-room hotel is due to reopen in March 2010 after a 12-month refurbishment and renovation.

A New Novotel For Russia

With four Ibis hotels and three Novotels, Accor Hotel Group’s Russian portfolio was previously a little uneven. However, the recent opening of the Hotel Novotel Yekaterinburg Centre, in Yekaterinburg northwest Russia, has restored balance and harmony to the group’s hotels in the country by becoming Novotel number four. A total of US$30 million was invested in the 168-room hotel. It won’t be long though before the Ibises take over once again as a 150-room Ibis hotel is planned for the city of Chelyabinsk. The hotel is expected to open in 2012 and investment in the project is reported to be between US$15 million and US$20 million.

SACO Doubles Up In London

Serviced apartment company SACO has doubled its portfolio of owned and operated aparthotels in London this week to six by opening three new properties in the capital: the SACO @ The Landmark, Canary Wharf; the SACO Waterloo; and the SACO Aldgate. As part of its worldwide serviced apartment network the company has more than 75 locations in the UK’s capital city.

Interval International In Ireland

Global timeshare company Interval International rose at the crack of dawn this week to travel to County Kildare, in Ireland. The reason for this early start was to reach the village of Straffan, 35 km from the city of Dublin, to catch Firstlight…no, not the first light of dawn but Firstlight The K Club, which it duly netted and affiliated into its global network of timeshare properties. The club has 69 residences, two golf courses and many other leisure facilities.

Hawthorn Blooms In Africa

Although the Hawthorn tree flowers readily in Europe, Asia and North America it used to be a rare sight on the continent of Africa. This all changed, however, when Wyndham Hotel Group travelled overseas to plant a Hawthorn tree in the city of Abuja, in central Nigeria. This sappling has now grown and has blossomed into the 108-room Hawthorn Suites by Wyndham Abuja, which opened this week as the first Hawthorn-branded property in Africa and the first Wyndham Hotel Group hotel in Nigeria.

InterContinental Hotels Group's 2009 Full-Year Performance

InterContinental Hotels Group (IHG) has reported an overall revenue for 2009 of US$1.5 billion, a decrease of 19% on 2008. Operating profit for the full-year 2009 was US$365 million, a decrease of 34% on 2008. Revenues for the EMEA region declined by 23% in 2009 to US$397 million. RevPAR for the EMEA region decreased by 14.8% for the full-year 2009 and by 10.4% for the fourth quarter of 2009. Andrew Cosslett, IHG’s chief executive, commented that “2009 was a very challenging year for the industry…we expect trading to stay tough until business travellers return in greater numbers".

Millennium & Copthorne's 2009 Full-Year Results

Millennium & Copthorne reported a drop in overall revenue for the full-year 2009 of 6.9% to £654 million, from £702.9 million in 2008. Overall operating profit decreased by 20.9% to £89.2 million in 2009, from £112.8 million in 2008. RevPAR for Europe fell by 16.5% to £49.73 over 2009 and average rate fell by 11.5% to £74.33. Occupancy for the group’s hotels in Europe dropped by four percentage points to 66.9% for the full-year 2009. Millennium & Copthorne’s chairman Kwek Leng Beng commented that “For the year as a whole the results are very pleasing owing, in large part, to tough, prudent and analytical management which has served us well in navigating through stormy seas to calmer waters”.

The International Hotel Investment Forum 2010

In March, those in the know in the hospitality industry will be travelling to Berlin, in Germany, to experience the 13th International Hotel Investment Forum, of which HVS is one of the sponsers. The conference will take place from the 8th to the 10th of March at the InterContinental Berlin. A host of HVSers will be participating in or attending the event including Russell Kett, Charles Human, Chris Martin, Tim Smith and Chris Mumford from London; Philip Bacon from HVS Madrid; and Demetris Spanos from HVS Athens. To book your place or for more information click here.

Absolute Share Price Performance Over the Past Week 11-18 February 2010

Marriott International - Susquhanna upgraded Marriott to "neutral" from "negative".

InterContinental Hotels Group (IHG) - Panmure Gordon gave IHG a "hold" rating and a price target of 910p.

Rezidor Hotel Group - Rezidor dipped 0.8% on weak volume, ending a two-day streak of rises.

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