Hotel News Now each week features a news roundup from a different region of the world. Today’s compilation covers Europe.
STR Global: April 2014 Europe pipeline
The Europe hotel development pipeline comprises 916 hotels totaling 147,592 rooms, according to data compiled by STR Global, sister company of HNN. The under contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.
Among the chain scale segments, the upscale segment accounted for the most rooms under contract with 25% and 36,881 rooms. Four other segments each accounted for more than 10% of rooms under contract: the upper-midscale segment (19.3% with 28,483 rooms); the unaffiliated segment (17.8% with 26,315 rooms); the upper-upscale segment (14.7% with 21,662 rooms); and the economy segment (10.5% with 15,536 rooms).
Whitbread gathers steam from 2013 results
Approximately one quarter before the debut of its new hotel brand, Hub by Premier Inn, Whitbread PLC is well-placed to meet its 2020 growth goals in a newly resurgent British economy, if its full-year 2013 results are of any guide.
Profits before tax for the financial year to 27 February 2014 at the company, which also owns coffee chain Costa, increased 16.5% to £411.8 million ($692.4 million), up from £353.4 million ($594.2 million) in the prior year period.
According to Property Week, Whitbread has won planning permission for 520 keys in six additional U.K. locations for its Premier Inn brand.
IHG signs most rooms in six years, posts positive numbers
InterContinental Hotels Group had its best first-quarter pipeline signings in six years, according to HNN’s Samantha Worgull.
In the United Kingdom-based company’s first-quarter figures announced on 2 May, IHG said it had signed 13,000 rooms (96 hotels), up 14% year over year, taking IHG’s pipeline to 182,000 rooms with more than 45% under construction.
IHG also said its global revenue per available room grew 6% during the quarter, driven by a 2.4-percentage-point increase in occupancy and a 1.9% rise in average daily rate.
Italy hotel market climbs, midscale a muddle
Independent, midscale hotels dominate the depressed Italian domestic hotel market, with international chain penetration only being a force in the upscale and luxury sectors that cater to a global clientele, according to HNN’s Terence Baker.
While Italy has been linked with the wobbling economies of the PIGS (Portugal, Italy or Ireland, Greece and Spain) nations, experts said the country’s hotel sector throughout the recession held up relatively well.
TUI mulls new brand, conversions of existing properties
TUI AG, the German parent company of Europe’s largest travel agency, said it wants to expand its hotel footprint through more Riu properties and a new TUI hotel brand that might consist of 50 hotels in five years, according to Bloomberg. The expansion likely would consist of raising the number of Riu properties, which TUI co-owns with the Spanish Riu family, or converting properties already in its portfolio.
The Hanover-based company’s full-year results showed year-end losses of €122.3 million ($167.5 million), down from a loss in its previous full-year results of €249.7 million ($342 million).
Accor adds nine U.K. properties
Accor is adding nine hotels in the United Kingdom: six in the midscale Mercure brand and three as part of its MGallery Collection soft brand. The hotels are owned by private equity fund manager Moorfield Group.
The MGallery Collection properties are in Windsor, Cheltenham and Aberdeen. The Mercure hotels are conversions of independent properties. Accor has operated 24 hotels in the U.K. for Moorfield since 2007.
Investors eye NH Hoteles’ Sotogrande brand
Oaktree Capital Group and Cerberus Capital Management LP are among the possible investors bidding to buy NH Hoteles SA’s real-estate unit Sotogrande SA as the Spanish hotelier seeks to reorganize. (Two percent of Sotogrande is outside of NH’s hands.)
Insiders claim that the Sotogrande deal might fetch more than €200 million ($277 million). Binding offers are expected at the beginning of June.
Deals and developments
- Swiss luxury watch maker Chopard bought Union Hôtelière Parisienne, which owns the luxury, 18th Century, 29-room Hôtel de Vendôme in Paris.
- Hampton by Hilton is to open its first hotel in the Polish city Wroclaw. The 100-key property is due in 2015 with a franchise agreement between Hilton Worldwide Holdings and owner Wroclaw City Center West Sp. z o.o.
- Nobu Hospitality in early 2016 will open its first European property, the 156-room Nobu Hotel Shoreditch in East London.
- The Excelsior Hotel Gallia in Milan, Italy, will join Starwood Hotels & Resorts Worldwide’s Luxury Collection portfolio in November, when the 235-key property completes renovations.
- Carlson Rezidor Hotel Group has announced the May Fair Hotel London and the G&V Royal Mile Hotel Edinburgh will be two of the first three members of its new Quorvus brand.
- InterContinental Hotels Group has signed three new Holiday Inn Express hotels in the U.K. and Ireland: an 80-key property in Grimsby (Humberside); a 138-key property in Middlesbrough (Cleveland); and a 198-key property in the Irish capital Dublin. All are franchise agreements. The company also announced two Holiday Inns in Germany: a 144-key property in Dresden and a 265-key property in Hamburg.
Compiled by Terence Baker.