In this roundup of news from Europe: Germany retains its glowing industry fundamentals; IHG passes one million rooms; Pyramid eyes growth in Europe; and more.
Hotel News Now each week features a news roundup from a different region of the world. This week’s compilation covers Europe.
STR: Europe hotel pipeline for July 2017
The July 2017 pipeline report from STR, the parent company of Hotel News Now, showed 178,105 rooms in 1,167 hotel projects under contract in Europe. The total represents a 20% increase in rooms under contract compared with the same month last year.
Europe reported 77,280 rooms in 499 projects in construction for July. Based on number of rooms, that is a 22% increase in year-over-year comparisons. Five key European markets reported more than 2,000 rooms in construction:
Istanbul, Turkey (4,497 rooms in 24 projects);
London, England (4,300 rooms in 27 projects);
Moscow, Russia (3,602 rooms in 16 projects);
Munich, Germany (2,897 rooms in 13 projects); and
Amsterdam, The Netherlands (2,166 rooms in 12 projects).
Germany remains Europe’s hotel-industry poster child
Political stability, available financing for hotel projects, hotel groups actively searching for new projects and take-out investors flush with cash to spend are all making the German hotel industry very attractive, despite some decreases in hotel performance numbers for the rest of this year and perhaps next, Hotel News Now’s Terence Baker reports.
Stefan Giesemann, SVP of hotels and hospitality at business consultancy JLL, said investment volumes in Germany in the first half of the year reached €1.8 billion ($2.2 billion) driven by the strong increase in single-asset transactions. The figure, though, reflected a decline of 8% compared to the same period last year.
Year-to-date data from STR for June shows Germany posted occupancy of 69.2% (+1% over the same period in 2016), a 1.9% increase in average daily rate to €101.03 ($119.16) and revenue per available room of €69.88 ($82.42), which represents a 2.9% rise.
Those numbers were 68.5% occupancy (+2.2% over 2015), ADR of €99.17 ($116.97; +0.4%) and RevPAR of €67.92 ($80.11; +2.6%) for full-year 2016.
STR: U.K. hotels post record H1 performance
The hotel industry in the United Kingdom reported the highest occupancy, ADR and RevPAR for any first six months on record, data from STR shows.
According to recent figures published by VisitBritain, total visits to the U.K. were up 9% from January to May 2017. Arrivals from Europe were up 5% during the first five months of the year, arrivals from North America increased 22% and for the rest of the world, visits were up 25%.
With foothold in UK and Ireland, Pyramid eyes Europe
Having opened its European headquarters in Dublin in 2015, Boston’s Pyramid Hotel Group is concentrating on adding scale in Ireland and the U.K., Hotel News Now’s Terence Baker reports.
Casey Spilman, VP of new business, Europe, at Pyramid, suggested that it hasn’t been too difficult to move out of the company’s home market.
“Given the amount of diligence we conducted prior to our formal arrival in 2015, the learning curve was not as steep as one might think,” he said. “We did a large amount of work in understanding legal (and) labor dynamics, competitive landscape, market-by-market performance (and trajectories), customer profiles, airline lift and travel patterns.”
Deals and developments
- Hilton opened on 26 July the 357-room Hampton by Hilton London Stansted Airport, which it claims is the brand’s largest hotel in the world. Urban Civic owns the property, and it is being managed by Interstate Hotels & Resorts.
- Irish company Dalata Hotel Group purchased the 174-key Hotel La Tour in Birmingham, England, in a sale-and-leaseback deal from German real estate investment trust Deka Immobilien for £30 million ($38.71 million). The lease has been agreed for 35 years, and the property will be renamed under Dalata’s Clayton brand.
- Hard Rock International is to open the 111-room Hard Rock Hotel Davos, its first ski resort Switzerland, in December 2017 in collaboration with owner International Hospitality Service AG. The hotel will be a conversion of the Spenglers Hotel
and the Holsboer Residences.
- Property investor Henderson Park bought both the Hilton London Metropole and Hilton Birmingham Metropole for a sum said to be £500 million ($649.12 million) from London property management company The Tonstate Group.
- Cycas Hospitality is to manage a dual-branded hotel in Manchester due to open in early 2018. The two assets are the 212-room Crowne Plaza and 116-room Staybridge Suites, both under the InterContinental Hotels Group flag.
- Internos Global Investors acquired the 106-room Vincci Selección Hotel Posada del Patio in Málaga, Spain, for €26.75 million ($31.46 million) from real estate developer Dospuntos.
Compiled by Terence Baker.