HVS EMEA Hospitality Newsletter - Week Ending 14 May 2010

Dan Hotels To Buy The Jerusalem Regency Hotel

Israeli hotel chain Dan Hotels has signed an agreement which will see it purchase the 505-room Jerusalem Regency Hotel, on the slopes of Mount Scopus in Jerusalem, Israel, for US$47 million from a group of investors. Founded in June 1947, Dan Hotels is the oldest hotel chain in Jerusalem; this acquisition will increase its portfolio of hotels in the country to 14, and the hotel will become Dan Hotels' fourth property in Jerusalem alongside the city's historic King David, Dan Panorama and Dan Boutique hotels.

A Spot Of Sicilian Sun For Hilton

This week, Hilton Worldwide opened its third Hilton-branded property on the island of Sicily, Italy. After undergoing a renovation, the former Russott Hotel, on the beachfront in the resort of Giardini Naxos, on Sicily’s east coast, has been rebranded as the Hilton Giardini Naxos. Hilton is operating the 296-room hotel under a franchise agreement with the property’s owner, Russott Finance SpA. David Horten, Global Head – Hilton Brand, has said: “We are proud to bring our signature style and authentic hospitality to this beautiful part of Sicily.”

Rezidor Opens Two Radisson Blu Hotels

Things are heating up in Galzignano Terme, in northern Italy, and it’s not just the area’s naturally heated thermal springs. Rezidor Hotel Group has chosen Galzignano Terme, in the Province of Padua, to be the home of its third Radisson Blu property in the country: the Radisson Blu Majestic Resort Galzignano Terme. Formerly the Hotel Majestic Terme, the hotel is currently undergoing a renovation that will see the first 97 rebranded rooms open during the second quarter of 2010. A further 120 rooms, in a separate building, will be rebranded when the renovation is completed, which is expected to be in the first quarter of 2012. Rezidor also announced the opening of another Radisson Blu hotel in Germany this week. The Radisson Blu Hotel Fürst Leopold Dessau, a former Steigenberger property, is now operating with 204 rooms in the town of Dessau, in central Germany.

Marriott Races Into Lingfield

As part of its goal to double its portfolio in Europe by 2015, Marriott International opened a new hotel in the UK this week: the Lingfield Park Marriott Hotel & Country Club. Located near the village of Lingfield, in the county of Surrey, south England, the 116-room hotel has been developed under a franchise agreement with London-based Arena Leisure, operators of the nearby Lingfield Park Racecourse. The hotel reportedly cost £22 million to construct.

The Curtain Rises In Dubai To Reveal HMH’s New Brand

The first property to be developed under Hospitality Management Holdings’ (HMH) new Corp Executive brand has opened in the emirate of Dubai, UAE. The Corp Executive Hotel Apartments – Al Barsha has 143 one-bedroom and two-bedroom apartments. The hotel, which is owned by Dubai-based construction company Al Shafar General Contracting, took two years and Dh190 million (US$51.7 million) to build. HMH currently operates 33 hotels under its various brands, and the company aims to have 100 properties by 2012.

InterContinental Hotels Group Reports Its First-Quarter Revenue

InterContinental Hotels Group has posted an overall revenue of US$362 million for the first quarter of 2010, a 3% increase on the same period last year. Operating profit was reported to be US$83 million. Global constant currency RevPAR for the first three months of the year grew by 0.2%. Revenue for the EMEA region also increased by 3%, to US$90 million, for the first quarter and RevPAR for the region grew by 0.5%, driven by a 3.3% rise in occupancy. IHG’s chief executive Andrew Cosslett said: “During the difficult last 18 months we have continued to invest in the things that make a sustainable long term difference to our business performance…With this strengthening of our core business and the early signs of recovery in the market we are feeling confident about the outlook and our ability to grow market share.”

Sol Meliá’s First-Quarter Results

Sol Meliá has recorded a revenue of €258.5 million for the first quarter of 2010, a decrease of 3.1% on the same period in 2009. EBITDA increased by 3.1% to €40.6 million. The company's RevPAR grew by 5.1% in March, after declining for 21 consecutive months. Sol Meliá’s chief executive officer and vice chairman Gabriel Escarrer Jaume commented that “our rigour and focus allow us to confront our future financial commitments with confidence and to take on projects for the future”.

Gladen’s Tidings

The news from Spain by Esther Gladen, Business and Market Intelligence Analyst, HVS Madrid. Travelodge has decided to continue to expand in Spain; the budget hotel brand is motivated by the 78% occupancy and increasing Internet bookings in the country. Sol Meliá closed the sale of the Tryp Los Gallos in Cordoba for €10 million in March. However, the hotel will still be managed by the group as it agreed on a long-term lease with the new owner, whose identity has not been revealed. Globales acquired the three-star Hotel De Los Reyes in San Sebastián de los Reyes (Madrid) from F&G Hotels. The property, now part of Globales portfolio, was previously managed by its former owner.

£100 Discount For Enews Readers At The Henry Stewart 2010 Briefing

With only 11 days left until The Henry Stewart 2010 Briefing now is the time to book your ticket if you haven’t already. The conference, which is called “How Much Is My (That) Hotel (Or Interest In A Hotel) Worth?”, is to take place at the Le Méridien Piccadilly, London, on 25 May. Russell Kett, the managing director of HVS London, will be moderating a panel on hotel lending, and Sophie Perret, associate director at HVS London, will be speaking about aspects of valuation. To save £100 on your ticket, don’t forget to mention when you book that you are a reader of HVS EMEA Enews. For further details and to book your ticket click here.

Absolute Share Price Performance Over the Past Week 6-13 May 2010

InterContinental Hotels Group - Shares rose as the company posted news of rising sales after 18 months of decline.

Whitbread - Panmure Gordon & Co. gave Whitbread a "buy" rating.

Sol Meliá - Iberian Equities upgraded its recommendation to "buy" from "hold".

---

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

Russell Kett, Managing Director	rkett@hvs.com
Charles Human, Managing Director – HVS HWE	chuman@hvshwe.com
Tim Smith, Director	tsmith@hvs.com
Demetris Spanos, Managing Director – HVS Athens	dspanos@hvs.com
Hala Matar Choufany, Managing Director – HVS Dubai	hchoufany@hvs.com
Christopher Mumford, Managing Director – Executive Search	cmumford@hvs.com
Philip Bacon, Managing Director – HVS Madrid and Managing Director, EMEA & Asia – HVS Shared Ownership Services	pbacon@hvs.com
Louise Fury, EMEA Hospitality Enews Author	lfury@hvs.com