Hotel News Now each week features a news roundup from a different region of the world. This week’s compilation covers Europe.
STR: Europe 2017 hotel performance
Across all of 2017 in Euro constant currency terms compared with full-year 2016, Europe’s hotel industry experienced 2.4% occupancy growth to 71.9%, and a 3.1% average daily rate increase to €110.51 ($136.59) drove revenue per available room up 5.6% to €79.46 ($98.22), according to STR, the parent company of Hotel News Now. The Netherlands was one market that did well in 2017. In Euro currency terms, the country saw a 3.9% increase in occupancy to 74.3%, a 5.3% increase in ADR to €117.93 ($144.56) and a 9.4% increase in RevPAR to €87.57 ($107.34).
The Netherlands’ performance growth was driven by its key market, Amsterdam, where occupancy was up 4.1% to 81.5% and ADR grew 6.0% to €143.91 ($176.40). STR analysts said two events, both in September, lifted performance, the IBC entertainment and technology conference, which saw an average occupancy of more than 90% over a five-day period, and the European Photovoltaic Solar Energy & Exhibition (EU PVSEC), which pushed occupancy above 90% on four consecutive nights.
Willms takes over helm at Deutsche
Deutsche Hospitality’s Steigenberger Hotels AG, which contains brands Steigenberger Hotels & Resorts, Jaz in the City and IntercityHotel, announced Thomas Willms as its new CEO. Willms joined the firm last June as COO and previous to that spent close to 30 years at Starwood Hotels & Resorts, his last role being SVP, regional director, Eastern and Central Europe.
Carlson Rezidor announces name change
Carlson Rezidor Hotel Group will be known as Radisson Hotel Group starting 5 March, a move that the accompanying news release stated would “leverage brand equity, drive awareness and increase marketing efficiency.”
Executives at the company said more details would be given at next month’s International Hotel Investment Forum in Berlin but did say its soft brand Quorvus Collection will be rebranded as Radisson Collection.
Iberostar launches new brand strategy
Majorca, Spain-based hotel group Iberostar also is going through a strategic overhaul, the firm announced, which it says will “further strengthen its position in the high-end hotel segment.”
According to the press release, the company’s portfolio has been rearranged into three groups: City hotels (Grand and Iberostar), ocean resorts (Grand, Selection and Ibertostar), and classic and historic hotels (Grand and Iberostar Heritage).
Q4 2017: Weaker demand, strong transaction volumes
The last quarter of 2017 in Europe showed declining or flat occupancy in all 12 cities monitored by the Q4 2017 Hotel Bulletin published by AlixPartners, AM:PM, HVS and STR. AM:PM is a sister company to HNN. RevPAR for most of those 12 cities also was flat or in decline. The report also showed that in the quarter transaction values remained strong, with a total of £1.3 billion ($1.82 billion), of which £900 million ($1.3 billion) was related to portfolio transactions.
Across all of 2017 Europe saw £4.6 billion ($6.3 billion) in transaction values, which the report said is “nearly double that of the previous year as investors rush to clear out their portfolios before Brexit is enacted.”
Ukraine on the up
In 2017, Ukraine’s hotel industry improved for the second consecutive year, a rise improvement that has seen international investors return with the first new projects since the beginning of the nation’s economic crisis in 2014, according to HNN contributor Vladislav Vorotnikov.
According to STR, for full-year 2017, Ukraine’s capital Kiev saw occupancy rise 13.7% year over year to 50.9%, although in 2016 that year-over-year increase was 19.9%, and its ADR increased by 5.1% to $2,716.08 Ukrainian hryvnias ($93.87). In the first half of 2017, 6.3 million tourists visited Ukraine, according to the country’s Ministry of Economic Development & Trade.
Deals and developments
- Hotel firm Belmond bought the 39-key Castello di Casole in Tuscany, Italy, for €39 million ($48 million) or €1 million ($1.23 million) per key.
- Virgin Hotels announced its first European property, a 225-room property in the India Buildings on Victoria Street in the Scottish capital Edinburgh. It is due to open in 2020 and is a partnership with owner Flemyn and developer Jansons Property.
- German investment firm Union Investment bought the 256-room Holiday Inn Warsaw City Centre and the secured the as-yet-unbuilt, 240-room Holiday Inn Gdansk City Centre, via a forward purchase agreement, with completion and the transfer of rights and obligations scheduled for mid-2019. Both deals, with an overall price tag of €80 million ($97.99 million), were with real-estate firm Unilmmo: Deutschland;
Compiled by Terence Baker.