GLOBAL UPDATE
PLUCKY
Europe ’ s suffering economies are finally slowing Poland ’ s , but the absence of recession and branded supply is driving international hotel management companies ’ expansion there .
“ The Polish hotel market is relatively immature for Europe , with branded hotels representing only a small market share ,” says Christoph Härle , CEO
POLAND
Continental Europe , Jones Lang LaSalle Hotels .
Hotels in operation increased from 1,370 in 2007 to 1,975 in 2012 , according to Horwath HTL , mostly in the country ’ s largest cities . Poland ’ s development boom may be ebbing , though , as the slowing economy is decreasing performance metrics and tightening financing for development . “ Major cities are now the destinations with the highest growth potential , notably in the economy segment and among upscale hotels with MICE facilities ,” says Janusz Mitulski , a partner at Horwath HTL Poland . “ During fall 2012 we saw the slowing economy deepen the drops of performance metrics .”
Accor says it is looking to expand in Poland with franchise and management deals through its majority-owned Orbis in Upper Silesia and northern Poland ’ s Tri-City area . Orbis is Poland ’ s largest hotel operator and owns 87 % of its 55 properties , a percentage it plans to reduce . Under Accor flags , Orbis hotels saw a 9.7 % uptick in RevPAR to 127.50 złoty ( US $ 40.76 ) in 2012 .
Hilton Worldwide now has five hotels in Poland under franchise and management agreements , and its Polish pipeline stands at 13 , mostly under DoubleTree by Hilton , Hilton Garden Inn and Hampton by Hilton .
Louvre Hotels Group owns most of its 13-hotel portfolio in Poland and says it plans to add at least three hotels in 2013 through franchise and management deals .
The 150-room Hilton Gdansk opened in 2010 .
HOTELS
IN OPERATION IN POLAND INCREASED FROM 1,370 IN 2007 TO 1,975 IN 2012 .
REPOSITIONING
THE RALEIGH
Nightlife impressario Sam Nazarian calls the Raleigh Hotel in South Miami Beach , Florida , “ an opportunity never uncorked .” Nazarian , founder of sbe in Los Angeles , and his new business partner David Edelstein in January paid Brilla Group US $ 55 million for a property Brilla bought three years ago for US $ 34 million in what today is considered a sizzling Miami marketplace because they see the potential in the Raleigh name . In fact , the duo plans to redevelop the South Beach icon with a loyal following and create a brand to compliment sbe ’ s SLS hotels .
Nazarian and Edelstein , the New York City-based developer who owns the W on South Beach , first plan to make the necessary investment in the Miami property to “ retell the story ” of the Raleigh , and then plan to take it to markets like New York City where the F & B component will play a serious role in defining the overall space .
Nazarian says the new partnership will develop 50,000 sq ft to 70,000 sq ft ( 4,645 sq m to 6,503 sq m ) located in back of the Raleigh ’ s main building — perhaps with an all-suite wing . Arquitectonica has been retained , and there is also a master plan to reinvigorate the entire space , as well as bring in new F & B components . “ Right now it is about one hotel and how we execute there to unlock the potential ,” Nazarian says . “ We see the Raleigh as a chic , older sister to SLS , and that is how it is being repositioned .”
Raleigh terrace
12 HOTELS March 2013 www . hotelsmag . com