Hotel News Now each week features a news roundup from a different region of the world. This week’s compilation covers Europe.
Iceland’s Edition Reykjavik Sold to Abu Dhabi Firm
The 253-room Marriott Edition in Iceland’s capital Reykjavik and adjacent to the city’s Harpa Convention Center & Concert Hall has been sold by investment fund SÍA III, controlled by Stefnir Asset Management Company, for 230 million euros ($243 million).
The buyer, Abu Dhabi Developmental Holding Company, also acquired the holdings of Mandólín hf., which owned approximately 70% of the shares in the hotel.
Schroders Acquires Two Hoxton Hotels
Schroders, the London-based investment firm, has bought two European hotels within the Hoxton brand for a total of 260 million euros from Sharan Pasricha, the founder of Accor division Ennismore.
The purchase of the 172-room Hoxton Paris and 111-room Hoxton Amsterdam is believed to be the biggest per-room price ever paid in Europe for a lifestyle hotel without suites. Ennismore entered into a joint venture with France-based Accor in 2021 to operate Accor's lifestyle hotel brands as well as Pasricha’s Hoxton and Gleneagles brands.
Strong Domestic Budget Demand Buoys Whitbread’s Earnings
Alison Brittain, in her final earnings call as Whitbread PLC’s CEO, said she leaves the firm in an advantageous position, with demand for its budget hotel brand Premier Inn having recovered to pre-pandemic levels.
“London has consistently recovered quarter on quarter and now is firing on all cylinders. We have rate opportunity also, as we did not push rate as much as did the competition. Every [market] has risen during the course of the year, but our highest rate market consistently is London,” she said.
Acar Named CEO of Accor’s Raffles, Orient Express
Omer Acar, formerly managing director for Europe and the Americas, Katara Hospitality, has been named as CEO of Accor’s Raffles and Orient Express brands, with the first date in his new role being March 1.
To be based in New York City, Acar will report directly to chairman and CEO Sébastien Bazin on the French firm’s luxury and lifestyle executive committee. Acar has been a general manager, notably at the Ritz Paris and Royal Monceau Raffles.
Higher Operating Costs Might Erode Profitability in UK Hotels
The rising costs of operating a hotel, especially in relation to wages and energy, are likely to erode profitability in the United Kingdom and the rest of Europe and could also cause potential buyers and investors in the hotel sector to think twice.
Nick Pattie, managing director of Whitebridge Hospitality, said “operating costs have accelerated significantly. What we’re seeing in the operations we look after, [the principal issue] is that wage inflation — if you can find someone to employ — is rampant, and we’re seeing [wage] costs sufficiently more than can be read officially anywhere.”
Deals and Developments
- Operator Hotel Co 51, owned by Dutch firm Vastint Group, has opened its second dual-brand development in Germany, and its third in Europe, including the 191-room Moxy Dortmund City and 120-room Residence Inn by Marriott Dortmund City.
- IHG Hotels & Resorts and owner Explorer Investments have signed a franchise agreement for the 227-room Crowne Plaza Caparica Lisbon.
- Hyatt has opened the 142-room Hyatt Regency London Albert Embankment, the firm’s eighth hotel in the U.K. capital.
- Hilton has opened the 163-room Iceland Parliament Hotel, Curio Collection by Hilton, in Iceland’s capital Reykjavik, adjacent to the country’s Parliament building.
- IHG Hotels & Resorts will open in December the 137-room Voco Budapest, a conversion of the independent D8 Hotel managed by owner BDPST Group.
- Dalata Hotel Group has debuted its 50th hotel, the 303-room Clayton Hotel Glasgow City in Scotland’s largest city.
- Accor division Ennismore and owner Katara Hospitality will open the 56-room Maison Delano Paris in the French capital next month, the brand’s debut outside of the U.S.
- Radisson Hotel Group opened the 201-room Radisson Red Liverpool at the city’s Lime Street train station and in a Grade II-listed building dating to 1871 that once was a grand railway hotel, the North Western.
- Hyatt and owner Albaron Group have opened the 147-room FirstName Bordeaux, France, as part of its soft brand JdV by Hyatt.
- Marriott International has opened the 505-room JW Marriott Hotel Berlin, the second for the brand in Germany. The hotel, owned by Qatari firm Al Rayyan Tourism Investment Co., is a conversion of the Hotel Berlin Central District.
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