Madrid-based NH Hotel Group will significantly up its presence in Latin America with its commitment to acquire the Colombian Hoteles Royal chain for €65.6 million ($74.9 million), after deducting €21.5 million ($24.5 million) in proceeds collected from the sale of the NH Bogota Parque 93 hotel last month. NH will first take an 80.8% ownership stake and will acquire the remaining amount later. The deal includes 20 hotels and 2,257 guestrooms across Colombia (15 hotels), Chile (four hotels) and Ecuador (one hotel), which are operated by Hoteles Royal as a mixture of ownership, long-term leases or management.
Six of the hotels in the Hoteles Royal portfolio are branded as Radisson properties because until now the Colombian company held the Radisson franchise in Latin America. As part of the NH acquisition, Radisson is resuming control of its franchise in Latin America, and those six hotels will be rebranded as NH Collection or NH Hotels properties, according to the company.
This announcement came as NH Hotels shared 2014 results: The company said its fiscal year 2014 estimated recurrent revenue is €1.26 billion ($1.44 billion), nearly flat from its 2013 reported recurrent revenue of €1.27 billion ($1.45 billion), according to Reuters. The company anticipates fiscal 2015 like-for-like revenue-per-available-room to grow between 5% and 7% over 2014 levels.
Now that the dust has settled a bit on December’s announcement that InterContinental Hotels Group would acquire Kimpton Hotels & Restaurants for $430 million, executives involved in the deal are speaking frankly about some of the lead-up to the deal and what investors, hoteliers and guests can expect moving forward. Hotel News Now’s Patrick Mayock spoke with former Kimpton CEO Mike Depatie and IHG CEO Richard Solomons for their insights into the deal.
Depatie said Kimpton was a “reluctant seller,” but that the offer was simply impossible to turn down. For his part, Solomons said IHG is keen to ensure Kimpton’s boutique qualities remain intact.
It first launched in 2010, but now Jumeirah Group’s contemporary lifestyle brand Venu has its first signed deal. Jumeirah signed a management agreement with developer Meraas Holding to operate the Venu Bluewaters Island Hotel under the Venu Living brand. According to a statement released by the company, Jumeirah will manage the 300-room hotel and 119 serviced apartments under development as part of the Bluewaters Island mixed-use development off the coast of Dubai. The property is slated now for a 2017 opening.
The company relaunched Venu last fall after shelving the brand during the economic downturn. In September Matt Balcik, Jumeirah’s VP of operations and brand development, told HNN the company’s goal is to have 25 of the millennial-minded, lifestyle Venu hotels open within 10 years, targeted now to urban centers.
The stars are aligning for Rome, according to a new report from HVS. “In focus: Rome,” shows demand for luxury accommodations from the United States, Far East and Middle East growing, along with improvements in the Italian economy as well as new and newly renovated luxury supply in the city.
Traditionally Rome has lagged in average daily rate compared to cities such as Paris and London, according to study authors, largely because the city draws more leisure than business travelers, and historically has had fewer landmark hotel options. However, recent investments into Rome’s luxury hotel segment—particularly from the Middle East—has the city better positioned to grow its luxury offerings.
The report cites the recent purchase of The Hotel Eden by the Brunei Investment Agency as a catalyst, plus other recently sold properties including the St. Regis, the InterContinental De La Ville, Boscolo Aleph, Boscolo Palace and Baglioni Hotel Regina.
You’ve heard about Restaurant Week, but how about Hotel Week?
Several cities are taking advantage of low occupancy times by creating week-long hotel deals and promotions to attract families, staycationers and other travelers. Boston will hold its second Hotel Week the week of 15 February, and the six participating hotels (including The Ritz-Carlton Boston Common) are offering a mix of room rate discounts and food and beverage deals. New York City in early January held its fourth annual Hotel Week NYC (with 30 participating hotels) to coincide with Broadway Week and Restaurant Week. Los Angeles debuted its Hotel Week LA on 29 November with five participating properties.
Compiled by Stephanie Ricca.