Frankfurt, 17th December 2001 �  Le Meridien Hotels & Resorts have signed a lease to open a 300-room, five star hotel in the heart of Vienna.

Jones Lang LaSalle Hotels advised the owners and developers of the site and selected Le Meridien as the preferred operator.  �Le Meridien is the ideal partner as they are one of Europe�s leading hotel brands, and were able to offer an institutional-style lease together with a strong covenant.  As a result of this, the hotel will be bought on completion by a German institutional investor� stated Christoph Härle, Senior Vice President, Jones Lang LaSalle Hotels who negotiated the lease. 

Construction of the new hotel will begin in 2002, with completion due in late 2003.  The hotel will enjoy a prime location opposite Vienna�s world famous Opera House.  The development will be set behind an historically listed façade from 1864.

Jones Lang LaSalle Hotels advised the private Viennese developer, D7 Donauzentrum besitz-und Vermietungs AG, and was able to sign a lease with Le Meridien in a very tight time frame.  The building had been on the market as a potential office redevelopment for some time and Jones Lang LaSalle Hotels identified the opportunity for hotel use and Le Meridien�s need for representation in the Vienna hotel market.

�This represents a unique opportunity for Le Meridien given the stagnant quality supply growth the city has witnessed over the past decade.  The lack of available land, tight planning controls and strong performance of the office market have in the past acted to preclude hotel development.  The last major five star hotel to open in Vienna was the ANA Grand in 1994� stated Mr Härle.
 
Mr Härle adds �Vienna was a big gap in Le Meridien�s portfolio and they have secured representation in an important European city.  Vienna�s hotels benefit from a well-balanced business mix, with both strong leisure and corporate demand.  Whilst the market has suffered in line with other European cities following the global economic slowdown, normal levels of demand should be well established by the hotel�s planned opening in late 2003�.

�In addition, this is an extremely well located property, opposite the Vienna Opera and adjacent to the Kärtnerstrasse, Vienna�s premier shopping street.  The Vienna hotel market is distinctly divisible into two major location segments, those hotels within or on the Inner Ring Rd which achieve ARRs on average €40 higher than those hotels outside the Ring� added Mr Härle.

�The Vienna hotel market relies heavily on German demand and our representation in Hamburg, Hannover, Frankfurt and Nurnberg, as well as properties under development in Munich and Hamburg, should boost German demand to this Vienna property� concluded Mr Härle.