In this roundup of news from Europe: more positive numbers from the continent, and both Meliá Hotels International and AccorHotels spell out their strategies going forward.
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 2018
Europe’s hotel industry reported positive results in the three key performance metrics during October 2018, according to data from STR, the parent company of Hotel News Now. In year-over-year comparison, occupancy increased 2.4% to 77.4%, average daily rate rose 6.0% to €116.15 ($132.38) and revenue per available room increased 8.6% to €89.89 ($102.45).
Madrid was one European city that saw double-digit increases in both ADR and RevPAR. For the same period, the Spanish capital saw occupancy increase 5.6% to 85.7%, ADR increase 17.9% to €138.88 ($158.28) and RevPAR increased 24.5% to €119.07 ($135.70). The absolute RevPAR level was the highest for any month in STR’s Madrid database, with STR analysts attributing the sound performance to Madrid’s overall market health and the holding of the CPhI Worldwide pharmaceutical conference between 9 and 11 October.
Meliá CEO: Experience, resorts remain priorities
Gabriel Escarrer Jaume, CEO of Meliá Hotels International, said the Spanish hotel firm has no plans to add to its six brands or move into the budget sector, writes HNN’s Terence Baker. While 80% of its portfolio is resorts, the other 20% will merge business and leisure—largely referred to as “bleisure”—with new properties being added to cities in the United Kingdom, such as Liverpool, London, Manchester and Newcastle.
Another project Meliá is very excited about is the regeneration project it is involved in Magaluf, Spain, a resort shedding its party-capital image. “We have brought in 28 F&B outlets, a Nikki Beach (beach club) we own and franchise, a pedestrian street, 6,000 square meters (65,000 square feet) of shopping, a theme park, 11 resorts with 3,800 rooms … There also are seven golf courses, two marinas and quality real estate. We’ve invested €248 million ($279 million) over six years,” Escarrer said.
After asset sale, Accor leans on tech to drive change
Nine months since AccorHotels sold 55% of its owned hotel platform for €4.4 billion ($5 billion) through its HotelInvest division, the French hotel firm is reinventing itself yet again, according to Thomas Dubaere, COO, Northern Europe, and leading its charge by offering more technological solutions and a host of new services it has purchased over the last four years, Baker writes.
Dubaere said he sees four major changes occurring in the industry that has led to its new strategy—digitalization process of customer management and data payments; overseas investment not having stalled but no longer being organically; guests wanting higher levels of augmented and experiential hospitality; and employees desiring and being allowed to be spontaneous and authentic.
STR: Europe hotel supply development update
Through October 2018, Europe reported 142,336 hotel rooms in construction, with Germany leading the way with 44,645 rooms in construction, which represents 7.0% of its existing supply, according to data from STR.
The U.K. also has robust supply, with 38,455 rooms in construction, which in its case represents a 5.8% increase. The total numbers for all of Europe are as follows: 142,336 rooms in construction in 1,165 properties; 89,669 rooms in final planning in 1,334 properties; and 153,651 rooms in planning in 1,664 properties.
Queensgate picks up £1-billion portfolio from Grange
London-based Queensgate Investments bought four London hotels with 1,317 rooms from Grange Hotels, also based in London.
The approximately £1-billion ($1.3 billion) price tag brought with it the 433-room Grange St. Paul’s, 370-room Grange Tower Bridge, 307-room Grange City Hotel and 207-room Grange Holborn.
Deals and developments
- Cycas Hospitality has signed its first deal in Belgium, a lease agreement with hotel owner Candor to operate a 127-room Residence Inn by Marriott at Brussels Airport due to open in spring 2020.
- Singapore-based real estate investment trust CDL Hospitality Trust bought a 95% stake for €40.6 million ($46.3 million) in the 86-room Hotel Cerretani Florence, MGallery by Sofitel, in Florence, Italy.
- The 150-room Hotel Villa Magna was sold for €210m ($237.4 million) to Mexico-based RLH Properties. The buy, from Turkey’s Doğuş Group, is RLH’s first in Spain, with the deal expected to close in mid-December.
- Hyatt Hotels Corporation has won the bid to operate a new hotel planned for the upcoming Edinburgh Marina in the Scottish capital. The 187-room hotel, Hyatt’s debut in Scotland, will be a Hyatt Regency and include 10,000 square feet of conference space.
- Palladium Hotel Group will open the 336-key Palladium Hotel Costa del Sol in July 2019 located in Benalmádena, Spain. It will have undergone an extensive renovation.
- InterContinental Hotels Group opened its second Voco-branded hotel, the 142-room Voco St. David’s, Cardiff, in Cardiff, the Welsh capital, and will be the flag’s debut in Europe. The property formerly was under the Principal brand, part of a portfolio bought by French REIT Covivio, formerly known as Foncière des Régions.
- IHG also has debuted its Staybridge Suites brand in The Netherlands with owner Borealis Hotel Group and operator Interstate Hotels & Resorts. The Staybridge Suites The Hague-Parliament has 101 keys.
Compiled by Terence Baker.