Hotel News Now each week features a news roundup from a different region of the world. This week’s compilation covers Europe.
STR Global: European pipeline for May
There are 820 hotels totaling 133,251 rooms under contract in Europe, according to the May 2015 STR Global Construction Pipeline Report. This represents a 10.7% decrease in rooms under contract compared with May 2014 and a 7.9% year-over-year decrease in rooms under construction.
The region reported 56,299 rooms in 351 hotels under construction for the month.
STR Global: April performance data
The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for April 2015, according to data compiled by STR Global, HNN’s sister company.
Amongst countries in Europe, Bulgaria experienced the largest increases in occupancy (+62% to 55.8%) and revenue per available room (+74.2% to €35.72). Average daily rate in Bulgaria also rose 7.6% to €63.98 as the country experienced stronger growth outside its capital city, Sofia.
Eight additional countries experienced RevPAR increases of more than 15% when reported in euros: Ireland (+25% to €78.45); Poland (+19.5% to €43.53); the United Kingdom (+17.6 percent to €88.80); Lithuania (+17.6% to €31.94); the Netherlands (+17.3% to €91.78); Croatia (+17% to €26.05); Israel (+16.9% to €152.09); and Belgium (+15.6% to €82.32).
AccorHotels opens distribution to independents
Accor Hotels opened its distribution platform to independent hotels in a bid to offer more choice and balance across geographical markets so as to encourage customers to book direct rather than via online travel agencies.
Since the 3 June announcement, HNN's Terence Baker spoke with company executives about the changes, which also included a rebranding from Accor to AccorHotels. In a decision that was largely championed by franchisees, AccorHotels hopes to bring more than 6,000 independent hotels into its distribution system, all of which will be listed alongside the company's current roster of 3,800 branded hotels.
AccorHotels’ Deputy CEO Vivek Badrinath told HNN that in choosing independent partners, the French hotel company will be “selective on criteria, quality, attractiveness and TripAdvisor ratings, et cetera, as we are lending our name to them. But many franchisees have said that this fits well into distribution.”
Frasers buys Malmaison/Hotel du Vin chains
On 18 June, Singapore-based investment vehicle Frasers Centrepoint Limited, via its Frasers Hospitality division, bought the Malmaison Hotel du Vin Group for £363.4 million ($570.4 million) from KSL Capital Partners. The group—which consists of 16 Hotel du Vin hotels and 13 Malmaison hotels all in the United Kingdom—was acquired by KSL only two years ago for £200 million ($313 million).
The inclusion of Malmaison and Hotel du Vin brings Frasers Hospitality’s portfolio to 129 properties across 77 cities comprising more than 21,100 rooms.
The deal, sources said, underlines the continued appetite for European portfolios. But Russell Kett, chairman of business consultancy HVS London, warned that the window might be closing for short holds as the peak of the hotel-industry cycle might not be too far away.
Ice hockey turns Prague hot
Hotels in Prague, Czech Republic, experienced significant year-over-year performance increases when the city served as the primary host to the 2015 Ice Hockey World Championship from 1-17 May 2015.
During the 17-day period of the tournament, Prague hotels reported a year-over-year occupancy increase of 8.8% when compared to the same time period in 2014. Prague’s overall occupancy rate of 84.1% during the tournament, coupled with a 21.5% rise in ADR to 2,890.64 Czech koruna ($120.54), led to a year-over-year RevPAR increase of 32.1% to CZK2,431.08 ($101.38).
Embattled Kiev slowly rebounds
The hotel industry in the Ukrainian capital of Kiev has rebounded slightly in the time since 2014’s Ukrainian revolution, which brought to a head months of civil unrest and fighting in Kiev, according to HNN correspondent Vladislav Vorotnikov.
In the first quarter of 2014, the market had experienced some loss, with occupancy decreasing 31.7% to 26.9% and revenue per available room down 28.9% to 372.23 Ukrainian hryvnia ($17.68), according to STR Global, sister company of HNN. Average daily rate was up 4.1% to UAH1,382.97 ($65.70) during that same time period.
U.K.’s Center Parcs transfers from U.S. to Canadian private equity
Canada’s Brookfield Asset Management on 2 June agreed to purchase U.K.-based Center Parcs from Blackstone for an undisclosed sum.
Center Parcs, which has five U.K. “destination village” properties attracting mostly British vacationers, had an annual occupancy rate of approximately 97% over the last five years, according to a news release. The deal is due to be concluded by the end of next month, and it is the first time Brookfield has dabbled in U.K. hospitality.
Deals and developments
- InterContinental Hotels Group on 15 June signed its fifth InterContinental property in France, the InterContinental Lyon Hotel Dieu. The143-room hotel will be converted from Lyon’s former Hôtel Dieu, one of the oldest hospitals in France, and will open in late 2018 under a management agreement with Crédit Agricole Assurances.
- Saudi Arabian company The Olayan Group and hotel company Mandarin Oriental International Limited have signed an agreement to acquire the 167-room Hotel Ritz, Madrid in Spain for €130 million (€778,400 per room) from Belmond Spanish Holdings and Landis Inversiones. The 50-50 joint venture also will invest €90 million ($103 million) in a renovation project that will begin in 2017.
- Italian insurance agency UnipolSai Assicurazioni S.p.A, which owns Atahotels, has agreed to buy rival Italian chain Una for almost €300 million ($329 million). According to UnipolSai, the union of Atahotels and Una will result in the creation of a national leader in the Italian hotel industry with more than 50 hotels (both business and leisure), approximately 8,600 rooms and aggregate revenues of more than €170 million ($187 million).
Compiled by Terence Baker.