Chains Seek European Hotels
<B>Chains Seek European Hotels</B>
By Bruce Serlen
When Mandarin Oriental Hotels announced the acquisition of the Rafael Group last month, it was the latest evidence that hotel chains have increased their interest in adding European hotels to their portfolios. European hotels are especially valuable assets for chains seeking to meet the needs of travel buyers who are putting together global hotel programs.
News of the Rafael transaction, which includes hotels in Austria, Germany and Switzerland, followed closely on the heels of word from Marriott International, Starwood and Four Seasons on their moves in the region.
Marriott International is expanding aggressively, adding 20 hotels to its portfolio of 100 existing properties by the end of 2001. Separately, Marriott began converting the first of 27 recently acquired Swallow Hotels in the United Kingdom to the Marriott flag this month.
Starwood's Westin Hotels, meanwhile, rebranded nine former Ciga hotels as Westins in March, giving the brand a greater presence in Austria, Italy and Spain. A newly built Westin also is scheduled to open in the Netherlands in August.
Four Seasons Hotels & Resorts will open a Dublin hotel in April and a Prague property by year-end.
"To be a truly global brand today, you need a presence in the key gateway cities around the world and this, by necessity, includes Europe," said Edouard Ettedgui, CEO of Mandarin Oriental. "The acquisition of Rafael--along with the London property already in our portfolio--is an acknowledgment of this.
"You want your frequent business travelers to be loyal to your brand," he said. "This means that when they travel to cities in Europe, for example, you have hotels in your portfolio they can book and then experience the same level of service and convenience they have grown to expect elsewhere."
The Rafael acquisition also included properties in New York and Florida.
Of the 12 brands in the Marriott portfolio, six will be represented in Europe by the end of 2000. Indicative of the pace of expansion, three Marriott brands, representing different segments of the market, opened in three European cities the first week of April: a Courtyard in Graz, Austria, a Marriott Executive Apartments in Prague and a Ramada International in Frankfurt.
The first of the 27 U.K.-based Swallow Hotels to be rebranded a Marriott is located in London. The properties were acquired by Whitbread PLC in January and are being managed by Marriott under a franchise agreement.