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Global hotel pulse: Europe news

Global hotel pulse: Europe news

In this roundup of news from Europe: Travelodge landlords look for new homes following break-clause ruling; Spain reacts to travel quarantine regulations; and more.
Hotel News now offers a weekly round-up of news from different parts of the world.

Travelodge UK owners orchestrate exit to Accor’s IbisFollowing June’s financial reorganization of its business via a company voluntary arrangement, Travelodge (United Kingdom) is facing a revolt from disgruntled landlords, who in the CVA secured contract break clauses that might possibly result in the demise of the brand, writes HNN’s Terence Baker.

Two main groups of disinfected landlords have developed. The first, the Ago portfolio, has been organized by the relatively new Travelodge Owners Action Group, which reputedly are set soon to sign an agreement with Accor’s Ibis brand, while a second, grouped together under the umbrella of Goodnight Hotels, claims it has approximately 80 hotels looking for new homes, according to an article at CoStar News (HNN is a division of STR, a CoStar Group company.)

STR :

In year-on-year terms in Euro constant currency for June 2020, occupancy declined 72.8% to 21.6%, average daily rate declined 34.8% to €83.69 ($98.43) and revenue per available room declined 82.3% to €18.11 ($21.30).

ADR has not declined as much as has RevPAR throughout the month and crisis, both in terms of year-on-year performance, said STR analysts. For Poland and Switzerland, as two examples, ADR in the former declined 14.3% to 279.84 Polish zloty ($74.61), while its RevPAR declined 81.4% to PLN48.27 ($12.87), and for the latter ADR declined 12.5% to 198.26 Swiss francs ($216.05), while its RevPAR declined 77% to CHF$41.00 ($44.68).

UK hoteliers encouraged by government’s sales tax cutOn 8 July, the United Kingdom government cut value-added/sales tax on hotel stays and hospitality from 20% to 5% to aid the sector during the COVID-19 crisis, but the cut is on the books only for six months, writes Hotel News Now’s Terence Baker.

The drop has long a request of hoteliers, who now would like to see that rate made permanent to maintain competitiveness with numerous European markets that have held their relevant taxes to 5% or lower for some time. The U.K. Chancellor of the Exchequer Rishi Sunak also offered firms £1,000 ($1,307.68) for every employee brought back out of furlough and retained to at least January 2021.

UK’s Oxsana fosters cooperation via Ismaili faithA membership organization, Oxsana, formed by hoteliers of the Muslim Ismaili faith, is seeing new life and impetus during the COVID-19 crisis and is set to welcome non-Ismaili members looking for advice on best practices, group purchasing and other operation strategies, writes HNN’s Terence Baker.

Al Malik, owner and managing director of Remarkable Hotels and chairman of Oxsana, said members are very aware of the struggles being felt in the industry. He added one initiative is a partnership with Accor to allow members access to the French hotel giant’s procurement platform. Member Nadeem Boghani, owner and chairman of Splendid Hospitality Group, which has 21 hotels, said “our whole ethos is the quality of life of our community and the wider society based on the principles of our faith. Together we are stronger. Best-practice thinking emerges, certainly in a constantly changing world. It is about lifelong learning, evolving across the times.”

Deals and developments

Hilton is to open in early 2022 its first Conrad Hotels & Resorts property in Spain, with an agreement for the 194-room Conrad Costa del Sol with owner Markway Inversiones S.L., a division of Platinum Estates Group.
Mandarin Oriental Hotel Group has announced a management agreement for a hotel in the Austrian capital of Vienna to open in late 2023. Owned by Geneva, Switzerland-based Brisen Group, the property will have 151 rooms.
The 117-room Nobu Hotel Warsaw is slated to open on 3 August. This is the Nobu brand’s 12th hotel and in an Art Deco property that will also contain one of Nobu’s signature restaurants.

Radisson Hotel Group opened two hotels on the European side of Turkey, the 28-room Radisson Hotel Istanbul Sultanahmet and 201-room Radisson Hotel President Beyazit Istanbul. The company also opened in July the 78-room Radisson Red Aarhus in the Danish city of Aarhus.

Dineshbhai Patel and Savitaben Patel, owners of the Indian snack-food company Cofresh, have bought Barnsdale Hall Hotel in England’s smallest county, Rutland, “off a guide price of £10 million ($13.1 million). The stately home-style resort was built in 1890 as the family hunting lodge of the 6th Earl Fitzwilliam.
Compiled by Terence Baker.

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