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hotel growth

Hilton expands its presence in Morocco

730 565 Hamish Kilburn
Hilton expands its presence in Morocco

Hilton expands its presence in Morocco with opening of Hilton Tangier Al Houara Resort & Spa…

Set on a pristine beach, Hilton Tangier Al Houara Resort & Spa has opened, marking the group’s third property in Morocco. With its upscale accommodations, beachfront location and extensive range of leisure facilities, the resort is an oasis for relaxation and rejuvenation. The 304-key Hilton Tangier Al Houara Resort & Spa is located within a protected national park, offering direct access to five kilometers of idyllic white sandy beach.

Tangier, a cosmopolitan port-city on the Strait of Gibraltar is the embodiment of culture with its UNESCO sights and nearby attractions, such as The Kasbah. Famous for its year-round pleasant weather and beautiful beaches, the city is seeing increasing numbers of visitors every year.

“Morocco is a flourishing tourism destination which welcomed more than 12 million visitors last year,” said Rudi Jagersbacher, President, Middle East, Africa, and Turkey, Hilton. “We are delighted to be expanding our footprint in the country and hope this will continue to support the Moroccan government’s tourism ambition to make Morocco one of the top 20 tourist destinations in the world by 2020.”

Spread across an impressive 850m², the hotel’s eforea spa is equipped with state of the art treatment rooms, a beauty salon, hairdresser, jacuzzi, sauna, steam room and a 24/7 gym. For those looking to perfect their swing during their stay, the hotel offers two spectacular golf courses alongside a Golf Academy.

In addition, The hotel boasts 4,500m² of flexible event space with capacity for up to 1,400 guests. The hotel offers 15 flexible meeting rooms as well as two pillarless ballrooms. With an expansive foyer that leads to an outdoor terrace, the space is ideal for hosting coffee breaks, cocktail receptions and buffets.

Meanwhile, the culinary experience is said to be at the heart of the hotel with the hotel boasting a total of five restaurants and bars.

Boasting 304 exquisite guestrooms and suites, including 50 apartments, all guestrooms feature a blend of Moroccan and international design touches with private balconies overlooking either the Atlantic Ocean or 11 hectares of garden.

“We are excited to introduce Hilton Tangier Al Houara Resort & Spa to our growing brand portfolio,” said Vera Manoukian, senior vice president and global head, Hilton Hotels & Resorts. “The opening of this property highlights our commitment to expanding in key destinations across the world, in the world’s most sought-after destinations for guests who know that where they stay matters.”

With more than 585 hotels across six continents, Hilton Hotels & Resorts properties are located in the world’s most sought-after destinations for guests who know that where they stay matters. This particular opening marks a significant growth in North Africa.

Main image credit: HILTON TANGIER AL HOUARA RESORT & SPA

Skyline of Berlin. Image credit: https://pixabay.com/en/berlin-skyline-architecture-city-1249080/

Investable hotel market in Germany grows to more than EUR 52 billion – despite Airbnb

960 640 Hamish Kilburn

Union Investment and bulwiengesa announce that growth is in both traditional hotel segment and in new concepts – despite Airbnb…

The investable hotel market in Germany grew last year, despite Airbnb, by approximately six per cent to EUR 52.6 billion compared to 2016. According to the latest market value analysis carried out by Union Investment and bulwiengesa, the size of the German hotel market has doubled in the last ten years.

The key factor in this rise is the continued growth of the branded hotel segment in Germany – which is favoured by investors – as well as a general increase in supply. This is reflected in an upturn of 16.6 per cent in the number of hotel beds over the last ten years. The strong performance of the German hotel chain segment, which is being driven by rising occupancy and higher room rates, also boosted value. RevPAR (revenue per available room) in the German hotel chain segment increased significantly over the period in question, climbing from EUR 49.9 to EUR 66.7. Budget and mid-range hotels saw above-average value growth.

“Overnight stays in Germany, which have risen for eight years in a row, are the main factor behind this development,” said Dierk Freitag, departmental head and partner at bulwiengesa. “Despite competition from Airbnb, the institutional hotel market continues to grow steadily. Alongside the traditional hotel market, newer hotel concepts are also part of this growth story. This includes apartment hotels, which are becoming increasingly investable and therefore also feature in our market value model.”

Union Investment and bulwiengesa identified an investable universe of around 375,200 hotel rooms, which are split across small, medium and large towns and cities in Germany. The average value per room was approximately EUR 140,100 in 2017. In the prior year, the corresponding figure was EUR 135,600.

Decline in transaction volume

The growth in the size of the institutional hotel market in 2017 contrasts with a fall in transaction volume from around EUR 5.2 billion in 2016 to approximately EUR 4.2 billion in 2017. Whereas in the prior year some 10.2 per cent of the calculated total market changed hands, the value of the hotels traded in 2017 was eight per cent. “Property holders’ willingness to divest themselves of hotel assets has fallen significantly compared to the prior year. The decrease in product availability and rise in prices are reflected in declining transaction figures. Hotels nonetheless remain a highly liquid asset class capable of delivering above-average returns,” said Martin Schaller, head of Asset Management Hospitality at Union Investment Real Estate GmbH.

“We expect the number of individual transactions in Germany to continue to fall in 2018. During this market phase, a sophisticated, long-term investment strategy is required. Options here include forward deals and targeted improvements to existing properties that boost their value, assuming they are to be held in the portfolio for an extended period,” said Martin Schaller.

The analysis shows that value increases are also being achieved in German tertiary locations, which are of growing interest to operators and developers. “The branded hotel segment goes wherever there are high – and growing – tourist figures and correspondingly good prospects for running a successful hotel,” commented Dierk Freitag. “Several small and medium-sized towns offer interesting catch-up potential here.”

Apartment hotels as drivers of growth

In 2018, Union Investment and bulwiengesa expect around five per cent growth in the institutional hotel market, which more or less corresponds to the prior-year level. “Many existing properties are getting rather long in the tooth, which is driving the development of new hotels across all segments and putting huge pressure on privately run hotels. Real estate for temporary living, such as apartment hotels, is likely to profit disproportionately from the continuing strong growth in 2018,” said Martin Schaller.

The Union Investment and bulwiengesa market value model is based on data from companies, official statistics and hotel associations. It enables a comparative analysis of the institutional hotel market for the years 2007 to 2017.