The Blue Swan Daily brings you a round up of some of the latest hotel news from across Europe, Middle East and Africa.
- IHG expands luxury footprint as it acquires majority stake in Regent Hotels & Resorts
- Lithuania’s largest air gateway to be home to new Park Inn by Radisson property
- Munich sees fifth consecutive month with hotel occupancy drop
- Corporate demand and premium economy SuperRooms concept help drive revenue and yield growth for Travelodge
- Hotel News Briefs…
IHG expands luxury footprint as it acquires majority stake in Regent Hotels & Resorts
InterContinental Hotels Group (IHG) has agreed to acquire a 51% stake in Regent Hotels and Resorts for USD39 million in cash in a joint venture with Formosa International Hotels Corporation. IHG will have the right to acquire the remaining 49% interest in a phased manner from 2026. It will bring Regent into its brand portfolio at the top end of the luxury segment and will accelerate its growth globally. IHG’s intention is to grow the brand from six hotels (approximately 2,000 rooms) today to over 40 hotels in key global gateway city and resort locations over the long term (there are already three hotels offering around 900 rooms in the Regent pipeline). The company is already among the leaders in the luxury segment with the world’s largest luxury brand, InterContinental Hotels & Resorts. The acquisition of Regent is part of one of IHG’s new strategic initiatives focused on continuing to expand its footprint in the fast-growing USD60 billion luxury segment. As part of this development, IHG has announced that following an extensive refurbishment due to commence in early 2020, InterContinental Hong Kong will become a Regent Hotel in early 2021.
Lithuania’s largest air gateway to be home to new Park Inn by Radisson property
Rezidor Hotel Group has signed a contract for management and operation of the ‘Park Inn by Radisson’ Vilnius Airport Hotel and Business Centre, scheduled to open in 2020. The 120 room hotel is situated 300m from Vilnius International Airport, offering restaurant, lounge and meeting space and recreational facilities. It will be the group’s sixth hotel in operation and pipeline in Lithuania, and the fourth in the city. The group operates two Radisson Blu hotels in the city already and plans to add a Radisson RED. Radisson Hotel Group’s portfolio in the entire Baltics States rises to 18 hotels with more than 4,100 rooms. The new property will be located within the VNO Business and Retail Park, just 300 meters from the Vilnius International Airport and 6 kilometres from the city centre. According to the data collected by the Lithuanian Department of Statistics, in 2017 the country recorded close to 2 million room nights, an increase of +3.7% over 2016.
Munich sees fifth consecutive month with hotel occupancy drop
Preliminary Feb-2018 data for Munich, Germany, from benchmarking specialist STR indicates performance declines, a fifth consecutive month with a drop in occupancy in the market as new supply coming online, and more in the pipeline, continue to pressure occupancy and average daily room (ADR) rates. Based on its daily data for the month, room supply in the city increased +4.4% and demand fell -3.0%, resulting in a -7.0% fall in occupancy to 66.7%. ADR was down -9.5% to EUR113.06 and revenue per available room (RevPAR) down -15.8% to EUR75.46. STR analysts note that the level of performance declines can be largely attributed to the calendar shift of ISPO Munich, which was held January this year versus February a year ago.
Corporate demand and premium economy SuperRooms concept help drive revenue and yield growth for Travelodge
Latest financial data from TVL Finance, parent of UK budget hotel chain Travelodge highlights that the evolution of its business model and launch of its premium economy SuperRooms concept last year has helped boost revenues and yields for the calendar year ending 31-Dec-2017. Rising sales from business customers boosted by the SuperRooms offering are acknowledged for driving strong sales growth, with like-for-like revenue per available room (RevPAR) ahead of the competitive segment. This helped mitigate the significant macroeconomic and external cost pressures facing the sector and deliver another year of progress for the business. Revenues rose +6.6% to GBP637.1 million and RevPAR was up +2.9% to £40.49, 0.7 percentage points ahead of competitive segment. Average daily room rate (ADR) was up +2.8% to GBP53.19, while occupancy remained at 76.1%. The company completed the successful roll out of 1,000 SuperRooms in 2017 and this year is investing in a further 400, which will be rolled out to seven more Travelodge hotels in London and regional cities such as: Bristol, Edinburgh, Manchester and York. The rooms feature Lavazza coffee pod machines, Hansgrohe raindance showers, a choice of pillows and other improved facilities. Travelodge says early results from this new offer “have been encouraging, with an average rate premium of GBP10-20”. It says it is experiencing a rise in corporate and SME business customers which now “represent a higher proportion of overall sales than leisure customers”.
Hotel News Briefs…
- Casablanca Mohammed V Airport reportedly plans to complete construction of terminal 1 by the end of Mar-2018. The terminal is expected to open by Jun-2018 following trial operations and extensive tests, increasing capacity from seven to 14 million passengers p/a. Two hotels are also being constructed to accommodate transit passengers, and are expected to open in another 36 months.
- daa has relaunched a competitive tender process for the development of a four star hotel at Dublin Airport’s T2 after a “tight planning window” prevented the original tender, launched in 2016, being awarded. Planning permission already exists for a 402 room, 11 storey hotel on the site.
- Russia’s Federal Agency for Tourism (Rostourism) has revealed 48 hotels were found to have increased prices during the 2018 FIFA World Cup, as at 12-Mar-2018. Rostourism Head Oleg Safonov said 120 hotels, previously found to have breached federal requirements, corrected prices. Mr Safonov added monitoring of hotel services in cities hosting World Cup matches will continue.
- Finavia introduced Scandic Helsinki Airport Hotel located near Helsinki-Vantaa Airport terminal 2 earlier this month. The hotel provides 150 rooms, nine conference rooms, F&B and recreation facilities.
- Travelport has agreed a multi year technology and content deal with Airtrade Holland, a Dutch provider of travel fulfilment services and travel technology. Airtrade will use Travelport’s open platform and Universal API technology to offer customers real time content from over 400 airlines, 650,000 hotel properties and 35,000 car rental locations. Airtrade will also be able to display, gain information on and sell branded fare families and ancillary products from more than 250 airlines.