Issue 42: 20th November 2019

    Huazhu grabs Deutsche to move upmarket

    Chinese hotel group Huazhu has agreed to buy German group Deutsche Hospitality, for EUR719m. The move will give fast-growing Huazhu a portfolio of upper end brands to grow in China, and adds a foothold in Europe, the Middle East and Africa. The deal sees Nasdaq-listed Huazhu buy all the shares in Deutsche, which was controlled [...]

    OTAs struggle to maintain growth pace

    Travel platforms Expedia and Booking are finding the going tougher, as they battle growing costs and lower margins. Expedia disappointed the markets, with lower profits at Trivago and Vrbo, and reduced full year guidance. At Booking, while volumes grew, average room rates slipped and are expected to slide further in the coming quarter. At Expedia, [...]

    Sun shines on Spain as clouds gather

    Spanish hotel markets enjoyed a hot summer, buoying the performance of leading locally-based groups Melia and NH Hotels. The home market strength offset issues elsewhere, and at Melia meant a net 0.2% improvement in revpar across the portfolio. Revpar was up 9.2% in Spanish cities in the third quarter, with strong performances too from hotels [...]

    Investor appetite undimmed by economic concerns

    A lack of stock is being blamed for a reduction in investment volume across European hotel markets. Deal flow in the third quarter of 2019 is reckoned to be down 30% on the same period in 2018, as investors struggle to find assets for sale. With elections in Spain and the UK, and worries of [...]