Hotel News Now each week features a news roundup from a different region of the world. Today’s compilation covers Europe.
Europe hotels report mixed results, says STR Global
The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for May 2014, according to data compiled by STR Global, HNN’s sister company.
Highlights from key market performers for May 2014 include (year-over-year comparisons, all currency in euros):
- Athens, Greece, rose 36.6% in occupancy to 83%, reporting the largest increase in that metric. Bucharest, Romania, followed with a 24.5% increase to 72.3%;
- Istanbul, Turkey, fell 12.3% in occupancy to 71.%, posting the largest decrease in that metric;
- Four markets grew 15% or more in average daily rate: Tallinn, Estonia (+20.5% to €87.96); Lisbon, Portugal (+16% to €107.46); Brussels, Belgium (+15.8% to €125.38); and Manchester, England (+15% to €84.94);
- Six markets experienced revenue per available room increases of 20% or more: Athens (+46.2% to €93.52); Tallinn (+28.2% to €66.18); Lisbon (+25.4% to €93.40); Bucharest (+22.6% to €53.06); Brussels (+21.7% to €95.36); and Manchester (+20% to €66.31);
- Moscow, Russia, reported the largest decrease in ADR (-13.9% to €122.14), while Istanbul experienced the largest RevPAR decline (-24.2% to €109.58).
Airbnb slapped with €30k fine
The Catalan government in Spain slapped the U.S.-based website Airbnb with a €30,000 ($40,786) fine for illegally commercializing short-stay apartment rentals that are not listed on the Catalan Tourism Register, reports El País.
Sources in the Catalan government noted this practice is not allowed under regional legislation, which seeks to protect the hotel industry from what is viewed as unfair competition. If Airbnb does not pull the ads, the Catalan government may initiate proceedings to prevent online access to the site from the entire Catalan territory.
Airbnb has already been targeted by authorities in New York, Quebec and Amsterdam. But Catalonia is the first European region to actually fine the company.
Accor’s hybrid bonds first for Europe hotels
French hotel chain Accor placed an issue of perpetual hybrid bonds in an amount of €900 million ($1.2 billion), which have no maturity date but will able to be redeemed as of 30 June 2020 and pay a return of 4.13% until that date, according to an Accor news release. The rate will be reset every five years thereafter.
Hybrid bonds combine the elements of both debt and equity and, according to Global Capital, the Accor decision is the first time this type of capital raising has been seen in the hotel industry.
French tax draws ire
A budget proposal in the French parliament to raise hotel taxes has drawn criticism from within the government and the country’s hotel industry, writes HNN’s Terence Baker.
An amendment to France’s draft budget raises hotel taxes to €8 ($10.95) from the current €1.50 ($2.05). Another proposal yet to be adopted would levy an additional €2 ($2.74) per night tax for hotels in the Ile-de-France region, which includes Paris.
Carlson now owns all of Carlson Wagonlit Travel
Carlson has entered into a definitive agreement to buy from JPMorgan Chase & Company the remaining 45% of Carlson Wagonlit Travel, according to a news release.
With the transaction due to be finalized in July, Carlson President and CEO Trudy Rautio said, “This acquisition, along with our ongoing investment in Carlson Rezidor Hotel Group and its family of brands, helps solidify our long-term direction for the company.”
Katara buys five prime assets
The Qatari sovereign-wealth fund’s hospitality wing Katara bought five InterContinental Hotels Group properties in Europe, although no purchase price was disclosed.
The hotels in the portfolio deal are the InterContinental Carlton Cannes, InterContinental Amstel Amsterdam, InterContinental Madrid, InterContinental Frankfurt and the leasehold interest in the InterContinental De La Ville Rome.
Meliá launches four sub-brands
Meliá Hotels International announced four new leisure sub-brands under its Sol Hotels & Resorts brand, with the majority to have beach locations.
The four sub-brands will be Sol Hotels, a general product; Sol Katmandu Park & Resort, with theme-park stylings; Sol House, a boutique offering for millennials; and Sol Beach House, with a focus on “hippie-chic.” Apart from its Sol brand, Meliá has six brands: Me, Tryp, Innside, Gran Meliá, Paradisus and Meliá.
Hot Turkey carved into four
Istanbul still provides opportunity, especially in its new, burgeoning business districts, although some fear that its upscale market is facing saturation, writes HNN’s Terence Baker.
Outside of Turkey’s principal city, the midscale sector is bullish about opportunities in seaside resorts, collectively known as the Turkish Riviera; in Turkey’s growing regional cities, with at least 10 having populations of more than one million; and in North Cyprus, a “country” with no international recognition but that most likely will start receiving direct flights in 2015.
Deals and developments
- Accor has signed a Pullman-branded hotel, its second for the United Kingdom, as part of Liverpool’s new Exhibition Centre Liverpool. To be operated by Branded Hotel Management under a franchise agreement, the property will open in summer 2015 with 216 keys.
- Marriott opened this month its second hotel in Siberia and 15th in Russia, the 175-key Novosibirsk Marriott Hotel.
- A group led by Italy’s Andrea Bonomi has made a €790-million ($1.1-billion) bid for Club Méditerranée. The bid of €21 ($28.69) a share trumps the €17.50 ($23.91) a share proposed last year by Gaillon Invest and Chinese investment company Fosun International Limited. Bonomi also is offering €22.41 ($30.62) a share for a convertible bond. Sources say a formal offer could be made very soon.
- The 895-key Park Inn Hotel & Conference Centre, London Heathrow, was sold to AXA REIM for £72 million ($123 million) on behalf of Dania Properties Heathrow; the property is to undergo a renovation.
- Hong Kong’s Kai Yuan Holdings has agreed to buy Paris’s Marriott Champs Elysees for €344 million ($470 million) and will borrow €205 million ($280 million) from shareholder Du Shuanghua to finalize the deal by 5 September from France’s MCE PropCo.
- Hibernia Worldwide Hotels Investment Fund, represented jointly by international real estate advisor Savills and CBRE, has sold the Radisson Blu Hotel, Amsterdam, to a subsidiary of Union Investment. Let on a long-term lease to Carlson Rezidor Hotel Group, the 252-bedroom freehold city center hotel features a restaurant, bar, health club, and various meeting rooms.
Compiled by Terence Baker.