Sydney, February 7, 2002 � The sale of the Parkroyal on St Kilda Road Hotel, Melbourne wrapped up sales activity for 2001, according to Jones Lang LaSalle Hotels.  The owner, Singa Hotels and Properties, sold the 4.5 star, 220 room property to a Malaysian businessman for A$37.65 million, in a deal due to settle in March 2002.  Singa Hotels and Properties is the wholly owned Australian subsidiary of Singapore-based Singatronics

PARKROYAL ON ST KILDA ROAD HOTEL    562 St Kilda Road St Kilda Road Central   Melbourne Victoria, Australia

�Singaporeans were the most active sellers in 2001, relinquishing $175.0 million worth of hotel assets, comprising 32.7% of total sales value� said Mr Geordie Clark, Executive Vice President, Jones Lang LaSalle Hotels, who brokered the deal.

As predicted, Japanese and Australian investors were also active sellers in 2001, representing 30.3% and 27.0 % of total sales value respectively.  According to Mr Clark, many sales were driven by vendors wanting to repatriate funds to Asian countries.

Jones Lang LaSalle Hotels, who tracks major hotel sales (over $5 million), recorded a total of 17 hotels with 3,708 rooms were sold in 2001 for more than $577 million.  This compares to 2000 when 23 hotels were sold for a total sales value of  $959 million.  

�The lower sales value is attributed to two factors: the impact surrounding September 11, which resulted in a revaluation of assets and lead to a gap between buyer and seller price expectations; and the number of 2 to 3 star properties exchanged.  These assets represented 16.3% of total sales value in 2001 as opposed to 4.3% in 2000.  This trend is also reflected in the average price per room, recording $155,714 in 2000, a 8.1% decrease over the previous year� explained Mr Clark.

Domestic investors were once again the dominant buyers, purchasing 77.6% of the total sales value.  Buyers from Malaysia, United Kingdom and Singapore followed.  
                                                                             
Domestic developers dominated the buyer landscape, a trend that is likely to continue for the first half of 2002.  Confirmed residential conversion projects comprised 36.2% of total sales value, with a further 5.5% likely proposed conversions.

And the outlook for 2002?  This year, sales are more likely to be driven by buyer interest, particularly in Sydney and southern Queensland, as many foreign investors have been waiting until the perceived bottom of the market before making their move.

�We are receiving good enquiry again from south-east Asian investors.  They are attracted to assets due to their perceived growing earnings outlook, market transparency and Australia�s devalued currency, however the price gap between owners and buyers will continue to be a challenge� stated Mr Clark.  �The previous interest we had seen from the US is not likely to materialise this year as they refocus their attention to their own market.�

This 2001 overview of hotel investment activity in Australia forms part of the Jones Lang LaSalle Hotels Digest Australia 2001/02 Edition.  The Digest provides the latest analysis and forecasts for the country�s five major hotel markets.  It also features an economic report card, tourism market examination, future supply tables and an analysis of investment and management trends.

Jones Lang LaSalle Hotels, the world�s leading hotel investment services group, provides clients with value-added investment opportunities and advice.  Its recent two-year success story includes the sale of 13,994 hotel rooms to the value of US$1.4 billion in 48 cities and advisory expertise for 173,021 rooms to the value of US$32.6 billion across 343 cities.