Hotel News Now each week features a news roundup from a different region of the world. Today’s compilation covers Europe.
Europe posts mixed results
The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for October, according to data compiled by STR Global, the sister company to Hotel News Now.
Europe’s year-to-date revenue per available room has increased 0.8% and is expected to remain flat through the close of 2013.
November Europe pipeline
The Europe hotel development pipeline comprise 813 hotels totaling 136,032 rooms, according to the November STR Global Construction Pipeline Report. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Pre-Planning stage.
Among the chain scale segments, the luxury segment experienced the largest year-over-year decline in number of rooms, falling 18.9% to 9,149 rooms. The midscale segment followed with a 12.9% decrease to 7,232 rooms. Only the upscale segment reported a year-over-year increase, rising 3.5% to 32,013 rooms.
Accor gets heavy
In an apparent reversal of its asset-light strategy, Accor at the end of November announced a reorganization plan that splits the company into two business units: one that owns and invests in hotel assets and one that operates and franchises properties.
The company said it will no longer expand through lease structures and won’t sell additional hotels, unless they are “structurally underperforming assets.” During the third quarter, Accor added 36 hotels comprising 4,160 rooms, with nearly 90% of those room additions in the asset-light category. HNN’s Shawn A. Turner blogs that Accor’s move will yield handsome profits in the long term.
London fog and gloom
According to hotel booking site Cheaprooms.co.uk, hotels in the British capital London have received, on average, the worst customer reviews among 30 top European destinations during the past two years. The company’s survey is based on hotel reviews awarded on the Expedia platform by customers after their 3- and 4-star hotel stays.
Over that timeframe, in London 19% of the reviews for 3-star hotels were negative, the worst rating among all 30 destinations. London also ranked near the bottom of the survey for 4-star hotels, with 12% negative reviews. Only the French cities of Paris (13%) and Nice (16%) performed worse.
Domestic Deutschland doldrums
Domestic travel by German citizens has been subdued due to difficult economic conditions, according to the “Travel and tourism in Germany to 2017” report from Bharat Book Bureau. As a proportion of Germany’s total employment levels, domestic travel and tourism fell from 4.9% in 2011 to 4.8% in 2012.
Travelodge grows with Gowers
Travelodge has recruited a new CEO following the resignation in July of Grant Hearn after 10 years in the top spot. Peter Gowers started in late November, having moved from storage provider Safestore, where he has been CEO for two years. Gowers’ previous hospitality experience includes being CEO of Asia Pacific for InterContinental Hotels Group.
Topland aims big
Privately owned, United Kingdom-based investment company Topland Property Group in early December acquired Menzies Hotels for £85 million ($139 million), as part of its strategy of building a £1 billion ($1.64 billion) property portfolio. The Menzies portfolio includes a 212-room property at Scotland’s Aberdeen Airport and a 78-room hotel, spa and golf club in Stratford-upon-Avon, England.
Deals and developments
- Rosewood Hotels & Resorts confirmed in early December that it is to manage Paris’ esteemed Hôtel de Crillon. The hotel, originally built in 1758, will undergo a complete restoration and reopen in 2015.
- Michael Achenbaum of New York-based Gansevoort* is partnering with Douglaston Development, SUSD and Hondo Enterprises to develop an “urban resort” in east London’s Shoreditch district. To break ground next spring, the $98-million project will feature 120 rooms, a rooftop pool and 6,000 square feet of event space; Royal Bank of Scotland provided debt financing.
- Hilton Worldwide Holdings and Jurys Inn signed a deal to rebrand next year three Jurys properties in London. The 229-room Jurys Inn London Islington and 172-room Jurys Inn London Chelsea will become DoubleTree by Hilton hotels, while the 364-room Jurys Inn London Heathrow will be the Hilton Garden Inn London Heathrow. Jurys will retain ownership, and the Islington property will gain a further 143 rooms.
- W Hotels Worldwide opened in early December its first ski resort, and 45th property worldwide. In the Medran area of Verbier, Switzerland, and owned by Les Trois Rocs, the 123-room W Verbier also includes 15 W-branded residences and restaurant Arola, in the capable hands of two-Michelin Star chef Sergi Arola.
- Brussels-based Algonquin SA has made its first acquisition in central Europe with the €38-million ($52.2-million) purchase of the 232-room Sheraton Krakow. Starwood Hotels & Resorts Worldwide will continue to manage the hotel under the Sheraton brand.
- Dominvs Hospitality has bought a four-acre site beside Scotland’s Aberdeen International Airport for £30 million ($48.8 million), with plans to build two hotels: a 139-room, 4-star property and a 112-room, 3-star hotel—both to launch in early 2016.
Compiled by Terence Baker.
Clarification, 18 December 2013: An earlier version of this story listed the Gansevoort Hotel Group as developing the property.