Louvre Hotels, owned by US investment group Starwood Capital, is expecting its European business to return to 2008 pre-crises levels this year, after demand at its hotels improved in Quarter Two of this year. With Starwood acquiring 240 hotels owned by Dutch operator Golden Tulip last year, the acquisition raised Louvre Hotels’ profile with more upmarket brands than its existing Premiere Classe, Campanile and Kyriad hotels. It also gave it access to several new countries, notably emerging markets.

Pierre-Frederic Roulot, President, Golden Tulip said that with this alliance, Louvre Hotels aims to expand further in Brazil, India and the Middle East, possibly through acquisitions. This year should see a return to 2008 levels for Revenue Per Available Room (RevPAR). For 2010, (Louvre Hotels) had a rather difficult first quarter. But Quarter Two of 2010 (May and June) is showing very significant rises. The upscale hotel segment, which was affected during the financial crisis as clients tightened their belts, was leading to recovery.”

In May, RevPar rose 8.7 per cent at Louvre Hotels’ three-star brands, six per cent at its two-star hotels and 2-2.5 per cent at its one-star brands in France. The alliance, which is also number two for budget hotels in Europe after France’s Accor, had a turnover of USD 2.6 billion and 60,000 staff in 2009. It currently operates 1,096 one- to five-star hotels in 42 countries. Brands also include: Kyriad Prestige, Tulip Inn, Golden Tulip and Royal Tulip.