Hotel Owner May 2018 | Page 7

MONTH IN REVIEW GO ONLINE www.hotelowner.co.uk ACQUISITION Foncière des Régions in acquisition talks with Principal Hotel brand 1 2 3 NOVELTY World’s first space hotel to launch in 2021 French hotel firm Foncière des Régions (FdR) has confirmed it is in exclusive- rights discussions with Starwood Capital to open a portfolio of 14 hotels under the Principal Hotel Company brand. The portfolio of four and five-star hotels includes the Principal York, the Met in Leeds, the Grand in Birmingham and the Principal in London, which is scheduled to open in April. The 14 hotels, come to a total of 2,626 guest-rooms, with nine of the hotels located in England (Birmingham, Leeds, Liverpool, London, Manchester, Oxford, Wotton and York), four in Scotland (Edinburgh, Glasgow), and one in Wales (Cardiff) . The deal is said to be worth around £750m and depending on how quickly discussions move forward, the transaction “could be finalised by the end of the first half of 2018”. Foncière des Régions, a leading hotel investor in Europe has property assets under management valued at €6bn (£5.25bn) for a total of almost 500 hotels, and is using its subsidiary Foncière des Murs to negotiate the deal. Starwood acquired the principal portfolio in 2013 as part of its acquisition of Principal Hayley in a deal thought to be worth £350m. May 2018 4 5 6 7 8 9 HOTEL CONCEPTS Signature Living announces controversial hotel plans for Denbigh hospital Signature Living has proposed plans to redevelop the Denbigh hospital in North Wales into a hotel themed around its history as a Victorian asylum. The world’s first ‘space hotel’, Aurora Station, an orbiting spacecraft that will host guests commercially, is set to launch in 2021. The property is being developed by Orion Span and the company’s team of space industry engineers, who have a combined 140 years of human space experience. Guests will be charged $9.5m each (£6.7m) for their stay, or about $791,666 (£561,449) a night. The hotel will orbit Earth every 90 minutes, meaning those aboard will see an average of 16 sunrises and sunsets every 24 hours. On return to Earth, guests will be treated to a ‘hero’s welcome home’. It has been described by the group as an “authentic astronaut experience”. Frank Bunger, CEO and founder of Orion Span, said: “We’re proud to announce Aurora Station – our first orbital community - will launch in late 2021 as the world’s first luxury space hotel. By early 2022, we will be hosting tourists, astronauts, space research, and manufacturing on board Aurora Station in LEO.” After several years of consistent growth , the upward trajectory has stalled somewhat, which seems to be as a result of occupancy levels hitting a ceiling . Pablo Alonso, CEO, HotStats The company plans to transform the Grade-II-listed former asylum into two luxury hotels, and Signature Living boss Lawrence Kenwright says he and his team were looking at basing one of the two hotels planned for the site around a ghostly theme that drew on the building’s former use as a psychiatric hospital. Kenwright said he is determined to “keep all of the original buildings, preserving the history and iconic status of this magnificent listed building”. He said: “Our track record as a developer, owner and operator has clearly demonstrated that we have the necessary expertise and skill set in the regeneration of listed historical buildings. We breathe new life into these tired and often derelict listed buildings, turning them into thriving hotels and businesses.” “We will shine a light on Denbigh, as we have done with Liverpool, bringing inward investment, creating jobs and tourism.” However reactions towards the plans have been mixed with some locals calling the idea of the themed hotel “crass and disrespectful”. www.hotelowner.co.uk 7