Hotel News Now each week features a news roundup from a different region of the world. This week’s compilation covers Europe.
STR: Europe hotel performance for November 2016
Europe’s hotel industry saw positive results in the three key performance metrics, according to November 2016 data from STR, Hotel News Now’s parent company.
The region reported 4.2% growth in occupancy to 70.3% in year-over-year comparisons. Average daily rate increased 1.5% to €107.14 ($113.23), and revenue per available room rose 5.8% to €75.36 ($79.65).
In terms of improvements in local currency terms, two standout markets were Berlin, which posted record highs for the month of November across all key performance levels, with occupancy up 4.7% to 81.1%, ADR up 1.5% to €93.42 ($98.73) and RevPAR up 6.3% to €75.76 to ($80.07), and London, which recorded its strongest month of 2016 in terms of growth with an 8% increase in RevPAR to £130.33 ($137.74), due to a 5.3% lift in occupancy to 85.9% and a 2.6% increase in ADR to £151.65 ($160.27).
AccorHotels' very busy year capped with 5% Banyan Tree buy
AccorHotels had an extremely busy year in 2016, with its last deal of the year being a 5% stake in Singapore-based luxury brand Banyan Tree Hotels & Resorts, which was purchased for 24 million Singapore dollars ($16.6 million). The company’s Banyan Tree buy continues its goal of being a major global player in the lifestyle hotels arena.
AccorHotels, though, has been a seller in 2016, including a €504-million ($524 million) sale of 85 assets to Grape Hospitality. AccorHotels will continue managing—and also continue to own—a 30% share.
AccorHotels' 2016 deals run to a 10.8% buy of Huazhu Hotels Group in China; 30% buy of Germany’s 25hours Hotels; $2.9-billion purchase of FRHI Holdings Limited, which gave it brands Fairmont, Raffles and Swissötel; $150-million purchase of high-end concierge service firm John Paul; $168.2-million purchase of luxury extended-stay brand Onefinestay; 30% stake in short-term rental platform Oasis Collections for an undisclosed sum; and a 49% share of upscale-resort-hotel digital platform Squarebreak, also for an undisclosed sum.
Deutsche Hospitality structure fuels three-brand growth
Deutsche Hospitality CEO Puneet Chhatwal said the German hotel firm’s three brands will grow aggressively under the Deutsche Hospitality umbrella.
According to Chhatwal, Deutsche brands Steigenberger Hotels & Resorts and Jaz in the City are the company‘s two truly global entities, while IntercityHotel needs “more dots on the map in one country because of the level of positioning needed in the midscale market and the importance of having brand awareness.”
STR: Europe hotel pipeline for November 2016
November pipeline data from STR showed 156,368 rooms in 1,017 projects Under Contract in Europe, which is a 13.3% increase in rooms Under Contract compared with November 2015.
The region reported 68,496 rooms in 439 projects In Construction for November 2016. Based on number of rooms, that is a 23.1% increase when compared to November 2015. The United Kingdom reported the most rooms In Construction with 17,551 rooms in 149 hotels among the countries in the region.
A&O bought by TPG
A&O Hotels & Hostels, which focuses largely on hostels and has more than 20,000 beds, most of which are in Germany, was acquired for an undisclosed sum by TPG Real Estate, the dedicated real estate platform of Fort Worth, Texas-based investment firm TPG.
The deal includes A&O’s 31 owned and leased assets through the deal. CEO Oliver Winter will keep his position with A&O.
Deals and developments
- Chinese real estate firm Dalian Wanda sold the historic Edificio España building in Madrid, which it bought in 2014 and had planned to convert into a luxury hotel, to Spanish property developer Baraka Global Invest for €272 million ($283.15 million). The Chinese firm cited the reason it had abandoned its plans was because of “the market and political environment in Spain and the resulting uncertainties.”
- Qatari investment company Al Sraiya Holding Group has agreed to buy the 361-room Westin Warsaw in the Polish capital for approximately €56 million ($59 million) from Skanska Commercial Development Europe, with the deal expected to close in the first quarter of this year.
- The 303-room Hilton Prague Old Town in the Czech Republic capital has been sold for an undisclosed price by The Blackstone Group to Singapore-based M&L Hospitality Trust, which also purchased from Blackstone an adjacent commercial building, Gestin Centrum.
- Hilton Worldwide is to debut its Hilton Hotels & Resorts brand in the Georgian capital of Tbilisi in a deal with owner Granat. The asset will undergo a $50 million renovation and open in early 2019 as the Hilton Tbilisi with 206 guest rooms.
- The second Hyatt Place hotel in the U.K. opened in late December, at Heathrow Airport and with 350 keys. Cycas Hospitality is managing the property under a franchise agreement with M+L Hospitality.
- Choice Hotels International signed a multi-unit development agreement with GVK Enterprises for at least five properties in Greece, the first being a Comfort Inn to open this summer.
Compiled by Terence Baker.