The Blue Swan Daily brings you a round up of some of the latest hotel news from across Europe, Middle East and Africa.
- FEATURE: Moscow’s hotels set to see almost a third rise in RevPAR thanks to World Cup
- BRIEF: Hyatt to grow boutique Andaz brand into the Middle East with Abu Dhabi Capital Gate rebrand
- BRIEF: Visit England and AA now offer common standards and criteria for UK accommodation
- BRIEF: Cobalt Air launches Cobalt Holidays to package its flights with hotel accommodation
- BRIEF: Nordic Choice Hotels to launch Scandinavian Xpo property development at Stockholm Airport City
- BRIEF: Plans approved for new hotel near Dublin Airport
- BRIEF: Moscow Sheremetyevo Airport opens GettSleep hotel
- BRIEF: David the Builder Airport to see construction of new hotel in Kutaisi in 2020
Moscow’s hotels set to see almost a third rise in RevPAR thanks to World Cup
Moscow’s hotel industry is projected to see growth in the range of 20% and 30% in revenue per available room (RevPAR) during June and July 2018, according to the latest market forecast from STR and Tourism Economics. However, the predicted RevPAR increase is less than the growth that was realised in Rio de Janeiro (2014) and Johannesburg (2010), key markets for the previous two FIFA World Cup host countries.
While occupancy is likely to grow between 8% and 10% to absolute levels just under 80% during the World Cup month of games, Moscow’s average daily rate is projected to increase between 15% and 20%. That trend would be consistent with previous World Cup tournaments as STR analysts note that room rates are more significantly boosted by the event whereas demand remains fairly stable in year-over-year comparisons.
STR analysts note that while demand is helped by such a large event, year-over-year occupancy comparisons are typically hurt due to supply growth as well as other regular hotel business avoiding the market during major event months. Supply growth leading up to such “mega events” creates more room inventory and pressure on occupancy levels.
In Rio de Janeiro in 2014, occupancy rose by double-digits from the previous June (+12.6% to 81.6%) and July (+18.3% to 80.0%) in the market. At the same time, ADR increased 72.8% and 64.4% during the two months, respectively, driving RevPAR increases of 94.5%.
In Johannesburg in 2010, occupancy jumped from the previous June (+27.7% to 78.5%) and grew to a lesser degree in July (+7.4% to 63.7%). ADR increased 56.3% and 44.5% during the two months, respectively, driving RevPAR increases of 99.6% and 55.1%.
While the World Cup matches are spread around Russia, Moscow will host the most matches, including the showpiece final on 15-Jul-2018. The city’s room count is substantially higher than that of Rio de Janeiro and Johannesburg and as such creates less opportunity for substantial uplift in performance in percentage terms from a comparable number of additional visitors travelling for the tournament.
STR reports that through the first four months of 2018, Moscow saw occupancy grow +6.7% year over year to an absolute level of 65.8%. Using the same four-month year-over-year comparison, ADR was down -0.8% to RUB5,363.70. Preliminary data for May showed occupancy 74.8% (+11.5%) and ADR RUB5,451.5 (+3.1%).
Hyatt to grow boutique Andaz brand into the Middle East with Abu Dhabi Capital Gate rebrand
Hyatt Hotels Corporation has announced its Hyatt Capital Gate Abu Dhabi will rebrand to Andaz Capital Gate Abu Dhabi, turning the iconic ‘Leaning Tower of Abu Dhabi’ into the first Andaz branded hotel in the Middle East. The hotel is owned by Abu Dhabi National Exhibitions Company (ADNEC) and is expected to be rebranded in late 2018. The word andaz means “personal style” in Hindi, and the Andaz brand is aimed at those well-travelled, guests “who search for inspiration and enriching experiences that expand their perspectives,” according to Hyatt. It currently has just 17 Andaz properties located in ten countries stretching from the Americas via Europe and into Asia. Andaz Capital Gate Abu Dhabi will offer 189 five-star luxury guestrooms and suites, occupying the 18th to 33rd floors of the iconic Capital Gate building. Each room will offer panoramic views from floor-to-ceiling windows, its own unique art, and locally designed comforts.
Visit England and AA now offer common standards and criteria for UK accommodation
VisitEngland and the AA have agreed updated common standards and criteria for hotels and self-catering accommodation in the UK. The revised guidelines will ensure that, wherever the accommodation business in the UK, an official star rated property will mean consistent standards. The changes will enable businesses to be more flexible in the facilities they provide, allowing them to tailor their property to the type of guest they attract, highlighting its features. The new standards replace those established by the national tourist boards of Great Britain and Northern Ireland and the AA across the UK in 2006 and updated in 2012.
Cobalt Air launches Cobalt Holidays to package its flights with hotel accommodation
Cypriot carrier Cobalt Air has launched online holiday booking service offering a wide range of holiday deals across its route network. Cobalt Holidays will package the airline’s flights with accommodation options and allow passengers to book air fares and hotels in one single booking. The airline says the new portal enables passengers to make the most of discounted rates when booking their Cobalt flight and hotel together and will cater for the backpacker through to the well-heeled traveller with properties ranging from hostels and B&Bs to five-star hotels.
Nordic Choice Hotels to launch Scandinavian Xpo property development at Stockholm Airport City
Stockholm Airport City has announced Nordic Choice Hotels plans to launch a 100,000sqm Scandinavian Xpo property and international trade fair development, representing investment of SEK1 billion (EUR98 million) with opening expected in 2020. The project will provide a modern meeting place with exhibition halls and hotel capacity of over 900 rooms with 300,000 guests expected during the first year. Sweden’s first airport city is expected to double the number of new jobs to 50,000 by 2030.
Plans approved for new hotel near Dublin Airport
Ireland’s An Bord Pleanála has approved plans for a 10 storey, 421 room hotel near Dublin Airport following the withdrawal of objections from local residents, according to local media reports. The hotel is being developed by property development company Carra Shore. As previously reported, daa also issued a tender in May-2018 to design, construct, finance and operate a similarly sized hotel within the Dublin Airport complex.
Moscow Sheremetyevo Airport opens GettSleep hotel
As the world’s eyes are on Russia for the World Cup, Moscow Sheremetyevo Airport has opened a new GettSleep capsule hotel in terminal D so travellers can get some shut eye. The hotel is open 24 hours per day and offers flexible accommodation rates ranging from RUB450 for the first hour during the day to RUB1,650 for a three hour stay during the night. The hotel is located on the third floor of the waiting area of Terminal D adjacent to gate 31.
David the Builder Airport to see construction of new hotel in Kutaisi in 2020
Georgian construction and real estate specialist Georgian Development Group hopes to receive final approval this month to plans to add a hotel at David the Builder Kutaisi International Airport, a key LCC gateway into the country. Initial work on the USD5 million project could start as early as Jul-2018 with the 100 room property potentially opening in 2020.