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Hotel transaction volumes in EMEA up 50% in the first nine months of 2013


Hotel investment volumes across Europe, Middle East and Africa (EMEA) reached €8.2 billion September YTD 2013, a 53% growth compared to the same time last year says Jones Lang LaSalle Hotel & Hospitality Group. Single asset deals secured a 54% share of transaction volumes overall, up 13% compared to last year. The rest came from a number of notable portfolio deals driving transaction volumes up by more than 160%.

T
he most notable single asset transactions during Q3 included the sale of the Grand Plaza Serviced Apartments in London which was sold to the Federal Land Development Authority of Malaysia for a reported €116.6 million, followed by the First Hotel Amaranten in Stockholm for €114.7 million and the Hotel Eden in Rome to The Dorchester Group for €105 million.

In terms of portfolio sales, Private Equity firm Gecina sold four Club Med holiday villages for €280 million as part of the company’s strategy to focus on other core business assets, while Spanish-based Derby Hotels Collection bought its remaining 50% stake in the Caesar Hotel in London and the Banke Hotel in Paris for €240 million from Investment Fund Grupo Metropolis.

The UK remains the most liquid market in EMEA, with investment volumes exceeding €2.6 billion September YTD – a 32% share of total transaction volumes – followed by France at €1.5 billion (19%). The dominant investor groups included sovereign wealth funds representing 26% of total investment volumes, followed by investment funds and private equity firms with 24% share.

Continuing their prevalent asset-light strategy of the past decade, hotel operators were the most active sellers during the first nine months of 2013, accounting for a 29% market share of disposals.

The €2.3 billion worth of transactions by operators included the sale of 27 Principal Hayley hotels to Starwood Capital, while Tel Aviv based Fattal Hotels led a consortium of international investors to acquire Queens Moat Houses (Germany) Holding GmbH.

Jonathan Hubbard, CEO Northern Europe for Jones Lang LaSalle’s Hotels & Hospitality Group said, “Q3 reported the strongest quarterly growth so far this year, with transaction volumes up almost 70% compared to the same quarter in 2012. With just three months to go until year-end, transaction volumes across EMEA look likely exceed €10 billion for 2013, well ahead of initial expectations for the year, reflecting the increasingly positive investor outlook.”

Christoph Härle, CEO Continental Europe for Jones Lang LaSalle’s Hotels & Hospitality Group said, “The UK and France continue to lead transaction activity across EMEA, with almost 40% of the €2.3 billion of Q3 transactions occurring  in these countries. Trading performance in Southern Europe is picking up pace, with countries such as Portugal and Italy posting robust RevPAR growth. This is good news for investors looking to purchase assets in these countries that were, just some time ago, struggling through the economic crisis.”  

 
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About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management. For further information, visit www.jll.com