In this roundup of news from Europe: Blackstone sells London DoubleTree; Greece and Ukraine show signs of rebounds; and a host of deals and developments.
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 performance for October 2016
Hotels in Europe reported negative results in the three key performance metrics when reported in euro constant currency, according to October 2016 data from STR, the parent company of Hotel News Now. Compared with October 2015, Europe reported nearly flat occupancy, down 0.4% to 75.3%. Average daily rate dipped 1.6% to €113.51 ($120.58), while revenue per available room fell 2% to €85.47 ($90.79).
Two countries that reported double-digit increases in both ADR and RevPAR were Portugal and Slovakia. Portugal recorded its highest October ADR at €94.78 ($100.69) since 2003, as well as its sharpest year-over-year increase in ADR (+13%) for any October on record. Meanwhile, occupancy increased 3% to 77.8% and RevPAR grew 16.3% to €73.72 ($78.31). Slovakia saw RevPAR grow 21.5% to €51.90 ($55.12) as a result of a 7.7% increase in occupancy to 73.7% and a 12.8% lift in ADR to €70.42 ($74.78).
Blackstone sells London DoubleTree for £300m
Private equity firm The Blackstone Group has sold the 582-room DoubleTree by Hilton next to the Tower of London for £300 million ($380 million) to the Bhatia family, which owns hotel development and operations company Muirgold.
Blackstone bought the property as part of a larger portfolio for £600 million ($760 million) in 2011 from Lloyds Banking Group.
Nordic hoteliers see shift to lifestyle, international brands
Nordic hoteliers are confident that booming key performance indicators in their capital cities and local industry players venturing outside their traditional comfort zones will continue the region’s buoyant rise, according to HNN contributors Sarah Sonne Larsen and Demian Hodari.
Across the region’s five capitals, they said, there are approximately 12,000 rooms in the pipeline for the coming few years, which corresponds to an average capacity growth of 16%, with the hotel mix moving gradually away from its dominance on midscale and upscale properties.
Greek hoteliers hope debt, NPL soon to be memories
It might be too early to say Greece has turned its tourism sector around, but a bright side does appear to be slowly emerging. However, HNN’s Terence Baker writes that huge macroeconomic considerations still must be resolved in Greece.
Aris Ikkos, research director of Greece’s Research Institute of Greek Tourism Confederation, said the next step for Greece is the restructuring of debt and addressing nonperforming loans, which he said would take place soon. He added that the Bank of Greece reported at the end of the first half of 2016 that more than 54% of all loans in the tourism sector were deemed to be nonperforming, as opposed to a little more than 45% across all Greek industries.
Ukraine, too, shows recovery
Another European nation that has experienced a good share of turmoil of late is Ukraine, but it, too, is showing signs of recovery, writes HNN contributor Vladislav Vorotnikov. Ukraine’s capital of Kiev saw a 5% rise in occupancy to 40% during the first half of 2016, compared to the same period last year.
Data from STR showed 43% occupancy for Kiev hotels from January to July 2016, indicating a 23.5% increase in year-over-year comparisons, and occupancy growth in the county’s provinces was even stronger, with the metric rising 18.6% (to 47.5%) in the same period.
Deals and developments
- On 1 December, Spanish hotel firm Palladium Hotel Group opened the 205-room Only You Hotel Atocha. Next to Madrid’s principal rail station, Atocha, the property joins sibling Only You Boutique Hotel Madrid, which opened in 2013.
- Hotel management company Fairview Hotels has more than doubled its portfolio after buying four Novotel properties for an undisclosed sum from Land Securities and AccorHotels. The properties are in the English cities of Coventry, Ipswich. Manchester and Wolverhampton, and will be operated under a franchise agreement with AccorHotels.
- Deutsche Hospitality, formerly Steigenberger Hotels, has opened the IntercityHotel Braunschweig, Germany, which has 174 rooms and is the first Intercity property to debut the brand’s new design concept. Also for Germany, the brand announced a second property in Hanover, the IntercityHotel on Berliner Allee, which will open in 2019 with 220 rooms.
- Austrian hotel group Vienna House signed a lease agreement with development firm Contraco GmbH for a 96-room hotel in Kronberg im Taunus, a German city close to Frankfurt. Scheduled to open in the first quarter of 2019, the hotel will form part of the Musikquartier Kronberg that will include a music hall and integrate a historic railway station.
- Ikos Resorts announced it has bought a former Club Méditerranée property on the island of Kos—which has been closed for several years—to turn it into a 410-room property. With an investment of approximately €90 million, the new hotel will open in spring 2019.
- Ikos Resorts also has spent €110 million to buy two adjacent properties on the Greek island of Corfu, both from Chandris Group. The Corfu Chandris Hotel & Villas and the Dassia Chandris Hotel & Spa, outside the city of Kerkyra, will be joined as one property and will also have approximately 400 keys. No opening date has been announced for that project.
Compiled by Terence Baker.