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 February 2018
Europe’s hotel industry reported increases across the three key performance metrics during February 2018, according to data from STR, the parent company of Hotel News Now. In euro constant currency, occupancy grew 2.1% to 65.5%, average daily rate increased 2.5% to €99.87 ($123.51) and revenue per available room rose 4.7% to €65.43 ($80.91).
France continued its rebound following a downturn caused by recent terrorism events. Occupancy increased 6.2% in February to 59.6%, ADR increased 8.6% to €105.08 ($129.95) and RevPAR increased 15.4% to €62.62 ($77.45). STR analysts said February is historically the lowest hotel demand month of the year in France. However, the country reported its highest absolute occupancy level for a February since 2008 and highest absolute RevPAR level for a February since 2014.
Cycas to manage Hyatt’s first Europe dual-branded asset
Hotel management firm Cycas Hospitality has signed its first deal in France with what also is Hyatt Hotels Corporation’s first dual-branded asset in Europe. A lease agreement in the Charles de Gaulle Airport area of Paris will open a 309-room Hyatt Place and a 121-room Hyatt House in the second half of 2020. Kaufman & Broad is developing the hotels.
Spain’s NH focuses on what it can control, not HNA
Madrid-based NH Hotel Group will continue to focus on organic growth and portfolio acquisitions, not on speculation about and a possible sale of Chinese firm’s HNA 29% stake, according to HNN’s Jeff Higley.
Laia Lahoz, NH’s chief assets and development officer, told Higley that in late 2017, NH “executed a transaction that reduced its financial leverage and will generate net interest savings of around €10 million ($12.4 million) through 15 November 2019. The price-management strategy NH launched last year resulted in growth across all three major metrics: 8.5% in revenue per available room; 4.9% in average daily rate; and 3.4% occupancy to 70.8%.”
AccorHotels buys 50% of South Africa’s Mantis
AccorHotels has agreed to purchase 50% of South Africa’s Mantis Group and its collection of 28 privately owned, managed and branded hotels, eco lodges, game reserves and luxury houseboats under flag Zambezi Queen for an undisclosed sum. Assets include the Draycott Hotel in London.
The deal remains subject to regulatory approvals.
ICAMAP becomes largest EasyHotels stakeholder
Luxembourg-based private equity firm ICAMAP increased its ownership stake in EasyHotel, upping its percentage ownership from 29.9% to 38.7% with an investment of €50 million ($61.9 million).
ICAMAP’s Harm Meijer, managing director and one of the company’s founders, will take a seat on the EasyHotel’s board, and EasyHotel itself now becomes its second-largest shareholder, with a 26% stake.
IHIF roundup
For a roundup of breaking news, opinions and panel discussions from last month’s International Hotel Investment Forum, please click here.
Deals and developments
• Maltese hotel firm Corinthia will debut in Romania with the Grand Hotel du Boulevard that will have approximately 50 keys and open in Bucharest. The deal is in partnership with NIRO Investment Group.
• On 16 April, Principal Hotels opened its flagship, 334-room Principal London on Russell Square. The Grade II-listed building from 1898 has undergone a £85-million ($121.4 million) makeover from its former guise as the Hotel Russell.
• German real estate investment trust Union Investment bought the 152-room Park Inn by Radisson in Krakow, Poland, for €26 million ($32.2 million) in a partnership with Cypriot investor Lindorcenia. The flag will remain unchanged.
• Also in Poland, Maritim Hotels will open the 458-room Maritim Hotel Szczecin in 2021. The deal is a franchise agreement with German operator HMS Hotel Management Services International GmbH.
• Bvlgari Hotels & Resorts has announced it will open a 76-room luxury hotel in Paris in 2020.
• Barcelona and Argentina soccer star Lionel Messi bought the 52-room Es Vivé on the Spanish island of Ibiza. Messi plans on adding the asset, which will be managed by Spanish operator Majestic Hotel Group, to his MiM brand, which has its debut property in Sitges, just south of Barcelona.
• InterContinental Hotels & Resorts has signed the 83-room Hotel Indigo Durham in a building that was formerly the office of the vice-chancellor of Durham University, next to the city’s castle and cathedral.
Compiled by Terence Baker.