Hotel News Now each week features a news roundup from a different region of the world. Today’s compilation covers Europe.
Europe posts positive November stats
The European hotel industry posted positive results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for November 2013, according to data compiled by STR Global, sister company of Hotel News Now.
Highlights from key market performers for November 2013 include (year-over-year comparisons):
- Three markets experienced occupancy growth of more than 15%: Vilnius, Lithuania (+26.5% to 69%); Tel Aviv, Israel (+16.4% to 75.1%); and Athens, Greece (+16.1% to 54.3%).
- Istanbul fell 6.4% in occupancy to 69%, reporting the largest decrease in that metric.
- Vilnius rose 42.1% in average daily rate to €70.25 ($96.05), achieving the largest increase in that metric, followed by Warsaw, Poland (39.4% to €100.43, $137.32).
- Moscow (-12.2% to €137.46, $187.95) posted the largest ADR decrease for the month.
- Four markets experienced revenue-per-available-room growth of more than 20%: Vilnius (+79.8% to €48.92, $66.89); Warsaw (+52.3% to €78.94, $107.93); Tallinn, Estonia (+26.4% to €43.67, $59.71); and Copenhagen, Denmark (+20.8% to €83.32, $113.92).
- Istanbul fell 13.3% in RevPAR to €90.62 ($123.90), reporting the largest decrease in that metric.
London surges forward
According to STR Global, London’s preliminary daily data from December showed positive growth in the following key performance indicators:
- increases in supply (+1.3%) and demand (+4.4%);
- a 3% increase in occupancy to 76.3%;
- a 6.4% increase ADR to £134.95 ($223.64); and
- a 9.6% rise in RevPAR to £102.92 ($170.56).
“This month saw the highest RevPAR levels of any December since 1994, and is contributing to an overall positive hotel performance in 2013,” said Elizabeth Winkle, managing director of STR Global. “Although occupancy achieved record levels for the last three years during this month, ADR was the driving force behind the strong RevPAR performance in December.”
December Europe pipeline
The Europe hotel development pipeline comprises 864 hotels totaling 142,953 rooms, according to the December 2013 STR Global Construction Pipeline Report. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Pre-Planning stage.
Among the countries in the region, Russia reported the largest number of rooms under construction (11,372 rooms). Following are: United Kingdom (10,285 rooms); Turkey (7,806 rooms); Germany (6,465 rooms); and the Netherlands (2,795 rooms).
Starwood Capital acquires Four Pillars Hotels
A fund affiliated with Starwood Capital Group acquired United Kingdom hotel owner and operator Four Pillars Hotels. The transaction comprised 863 rooms and consisted of a portfolio of five owned and leased hotels and one managed hotel. Properties included the 328-room Cotswold Water Park, 190-room Tortworth Court and 174-room Oxford Spires.
Concordes change names in two cities
Accor brand Sofitel has signed two properties in Germany, which will join its current roster of four. Sofitel signed a management contract for the Hotel Concorde Berlin, which as of 1 February will be known as the Sofitel Berlin Kurfürstendamm, while next year will see the debut of the Sofitel Frankfurt am Alte Oper.
Another Concorde being rebranded in late 2014 is Paris’ Concorde Opéra, which now will become the Hilton Paris Opéra. The property will undergo a restoration before the name change.
Wyndham surpasses 100 hotels in Germany
Wyndham Hotel Group’s opening of eight additional hotels in Germany means that it has now surpassed the 100-hotel mark in the European Union’s largest economy. All eight new deals are with management company Grand City Hotels, which Wyndham started working with in 2013.
Wyndham now has 103 properties in Germany, which include nearly 14,000 rooms under the Wyndham Grand (two properties), Wyndham (seven properties), Wyndham Garden (14 properties), Tryp by Wyndham (28 properties), Ramada (43 properties) and Days Inn (nine properties) brands.
Taj enters Europe
With the rebranding of two London properties, The Taj Group has entered Europe. The St. James’ Court, A Taj Hotel, has joined the Taj 51 Buckingham Gate Suites & Residences within the Indian hotel company’s portfolio of luxury hotels, resorts and palaces. Taj has sole ownership and management, as well as operational and marketing control, of both properties. Taj is part of Indian conglomerate Tata Group.
Quinn exits two central European hotels
Administrators have sold for €62 million ($85 million) two central European properties formerly held by insurer Quinn. The Sheraton Krakow, Poland, was sold to French hotel operator Algonquin for €38 million ($52 million). The Hilton Sofia, in the Bulgarian capital, was purchased by a consortium of local businessmen for €24 million ($33 million).
Deals and developments
- Developers Union Hanover Securities and Southern Grove received planning permission to transform London’s 45 Whitechapel Road into a 217-room Urban Villa extended-stay hotel. The property will be the new Urban Villa brand’s flagship, with other European gateway cities, including Amsterdam, Berlin and Paris, touted as future destinations.
- Developer Galliard Group will open in 2016 a luxury, 235-room hotel in London’s Scotland Yard, the former home of the Metropolitan Police. The £100-million ($165-million) project in the Grade II-listed building comes with a 125-year lease for Galliard.
- InterContinental Hotels Group has signed a franchise agreement with Hotel Fira S.A.U to open its first Crowne Plaza in Barcelona. The 276-room Crowne Plaza Barcelona Fira Center will open in the first quarter of 2014.
- IHG also has signed up two Holiday Inn Express properties in Germany, the 117-room Holiday Inn Express Hamburg City Hauptbahnhof and the 120-room Holiday Inn Express Freiburg City. The franchised hotels are part of a multiple-development agreement with IHG’s long-standing lessee partner Foremost Hospitality HIEX GmbH.
- Los Angeles-based real estate investment and services company Kennedy Wilson purchased an unpaid principal balance of approximately $310 million secured by the Shelbourne Hotel in Dublin for a price of $152 million. The deal consisted of $70 million of equity from the company and $82 million in bank financing.
- Marriott International opened its first property in Sochi, Russia. The Sochi Marriott Krasnaya Polyana Hotel, operated by an affiliate of U.S.-based management company Interstate Hotels & Resorts, has 428 guest rooms.
Compiled by Terence Baker.